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Company registration number: 11796849







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023


CMA RECRUITMENT GROUP LIMITED






































img5500.png                        

 


CMA RECRUITMENT GROUP LIMITED
 


 
COMPANY INFORMATION


Director
N F C Clarke 




Registered number
11796849



Registered office
Meridians House
7 Ocean Way

Southampton

Hampshire

SO14 3TJ




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

3000a Parkway

Whiteley

Hampshire

PO15 7FX





 


CMA RECRUITMENT GROUP LIMITED
 



CONTENTS



Page
Group Strategic Report
1 - 2
Director's Report
3 - 4
Independent Auditors' Report
5 - 8
Consolidated Statement of Comprehensive Income
9
Consolidated Statement of Financial Position
10
Company Statement of Financial Position
11
Consolidated Statement of Changes in Equity
12
Company Statement of Changes in Equity
13
Consolidated Statement of Cash Flows
14
Consolidated Analysis of Net Debt
15
Notes to the Financial Statements
16 - 31


 


CMA RECRUITMENT GROUP LIMITED
 


 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their strategic report of the company and group for the period from 1 January 2023 to 31 December 2023.  

Principal Activity
 
The principal activity of the Group in the period under review was that of the provision of contract, permanent and temporary staff and related services.
The principal activity of the company is that of a holding company.

Review of Business
 
The turnover for the period was £7,265,833 and operating loss was £239,596. The consolidated shareholder funds at the period end were negative £878,987. The EBITDA for the period was £635,310.
The directors monitor progress of the Group with reference to a number of key performance indicators, these include:
• Net Fee Income (permanent, temporary and contract revenue less temporary workers wages);
• Net Fee Income per full time equivalent employee;
• Return on consultants (fees booked less direct costs to employ);
• Net Fee Income conversion (conversion of NFI into EBITDA);
• Recruitment metrics (including but not limited to fill ratios, job flows and margin).

Current and Future Developments
 
The Board remain committed to building on CMA Recruitment Group’s 44-year foundations and continuing to support the success of our clients and candidates across the South of England.
During the period, the Group has once again traded well. Recruitment challenges have remained for a high number of employers across the region, albeit in a changing market, and the Group has been well placed to support our clients as they have looked to navigate and tackle these critical issues. This has led to normalised and consistent job volumes throughout 2023. Accountancy & Finance remained the largest division during the period at 92% of NFI.
Investment has remained paramount as the Board look to build a platform for sustained growth. This has seen a commitment to enhance working spaces across our 5 office network, and additional enhancements to the IT software to continue to offer a best in class solution. As previously documented, the business opened a fifth office in Guildford in 2020 and the team have achieved significant YOY revenue growth in 2023. 
Trading conditions remain advantageous and the Board is confident the Group can continue to grow in 2024 and beyond. 

Page 1

 


CMA RECRUITMENT GROUP LIMITED
 



GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal Risk and Uncertainties
 
The principal risk the business has faced is the well documented economic uncertainty created by external macro factors over the 12 month period. This could have injected a degree of volatility into job flows across all parts of the Group. However, during 2023, despite these headwinds, job flows have been consistent and comparable to prior year trends. The Group continues to trade strongly and the Board believes that, even under downside scenario planning, there are no material concerns. 
The Board considers a key risk is the Group’s ability to continue attracting and retaining the very best talent to work within our business. The average tenure of the CMA team is over 8 years which is something we are very proud of, but do not take for granted and will continue to invest in attracting, engaging, and retaining talent. During the period, this has been supported by key management hires, a review and realignment of management roles and responsibilities, and an academy launch  to support our 3-year vision and future growth plans.


This report was approved by the board and signed on its behalf.



N F C Clarke
Director

Date: 24 September 2024

Page 2

 


CMA RECRUITMENT GROUP LIMITED
 


 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The director presents his report and the financial statements for the year ended 31 December 2023.

Director's responsibilities statement

The director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:


select suitable accounting policies for the Group's financial statements 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 Group will continue in business.

The director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Results and dividends

The loss for the year, after taxation, amounted to £469,573 (2022 - loss £146,831).

The Director does not recommend the payment of a dividend. 

Director

The director who served during the year was:

N F C Clarke 

Future developments

Please refer to the Strategic Report. 

Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Page 3

 


CMA RECRUITMENT GROUP LIMITED
 


 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Auditors

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





N F C Clarke
Director

Date: 24 September 2024

Page 4

 


CMA RECRUITMENT GROUP LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CMA RECRUITMENT GROUP LIMITED

Opinion


We have audited the financial statements of CMA Recruitment Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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's affairs as at 31 December 2023 and of the Group's loss 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 United Kingdom, including the Financial Reporting Council'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 director's 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 or 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 director with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The director is responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Page 5

 


CMA RECRUITMENT GROUP LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CMA RECRUITMENT GROUP LIMITED (CONTINUED)

Opinion 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Director's Report 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 Director's Report.


We have nothing to report in respect of the following matters in relation to which 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 director's 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 Director's Responsibilities Statement set out on page 3, the director is 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 director determines is 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 director is 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 director either intends to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 


CMA RECRUITMENT GROUP LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CMA RECRUITMENT GROUP LIMITED (CONTINUED)

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 an Auditors' Report 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The Group and parent Company are subject to laws and regulations that directly affect the financial statements including financial reporting legislation, and general regulations such as health and safety. There are no industry specific laws and regulations which would be deemed to have a significant impact on the financial statements. We assessed the extent of compliance with the appropriate laws and regulations as part of our procedures on the related financial statement items.
 
We understood how the Group and parent Company are complying with the legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures. We corroborated our inquiries through our review of board minutes.

The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations. The assessment did not identify any issues in this area. 

We assessed the susceptibility of the Group and parent Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
Challenging assumptions and judgments made by management in its significant accounting estimates; and
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

Posting of unusual journals and complex transactions. 
Misappropriation of funds through fraudulent purchase ledger and payroll activity.
Manipulation of amounts subject to significant judgment or estimate.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' Report.


Page 7

 


CMA RECRUITMENT GROUP LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CMA RECRUITMENT GROUP LIMITED (CONTINUED)

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 2006Our 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 an Auditors' Report 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.





James Hadfield FCA (Senior Statutory Auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
3000a Parkway
Whiteley
Hampshire
PO15 7FX

25 September 2024
Page 8

 


CMA RECRUITMENT GROUP LIMITED
 


 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
7,265,833
7,768,145

Cost of sales
  
(2,356,706)
(2,698,779)

Gross profit
  
4,909,127
5,069,366

Administrative expenses
  
(5,148,723)
(4,895,656)

Operating (loss)/profit
 5 
(239,596)
173,710

Interest receivable and similar income
 9 
373
-

Interest payable and similar expenses
 10 
(135,869)
(153,303)

(Loss)/profit before tax
  
(375,092)
20,407

Tax on (loss)/profit
  
(94,481)
(167,238)

Loss for the financial year
  
(469,573)
(146,831)

Profit for the year attributable to:
  

Owners of the parent company
  
(469,573)
(146,831)

  
(469,573)
(146,831)

The notes on pages 16 to 31 form part of these financial statements.

Page 9

 


CMA RECRUITMENT GROUP LIMITED
REGISTERED NUMBER:11796849



CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
4,282,430
5,111,287

Tangible assets
 14 
155,334
37,562

  
4,437,764
5,148,849

Current assets
  

Debtors: amounts falling due within one year
 16 
653,588
662,155

Cash at bank and in hand
  
2,797
92,105

  
656,385
754,260

Creditors: amounts falling due within one year
 17 
(1,081,859)
(1,134,844)

Net current liabilities
  
 
 
(425,474)
 
 
(380,584)

Total assets less current liabilities
  
4,012,290
4,768,265

Creditors: amounts falling due after more than one year
 18 
(4,890,348)
(5,176,750)

Provisions for liabilities
  

Deferred tax
 21 
(929)
(929)

  
 
 
(929)
 
 
(929)

Net liabilities
  
(878,987)
(409,414)


Capital and reserves
  

Called up share capital 
 22 
80,500
80,500

Profit and loss account
 23 
(959,487)
(489,914)

  
(878,987)
(409,414)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




N F C Clarke
Director

Date: 24 September 2024

The notes on pages 16 to 31 form part of these financial statements.

Page 10

 


CMA RECRUITMENT GROUP LIMITED
REGISTERED NUMBER:11796849



COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 15 
7,942,771
7,942,771

  
7,942,771
7,942,771

Current assets
  

Cash at bank and in hand
  
1,487
183

  
1,487
183

Creditors: amounts falling due within one year
 17 
(3,844,238)
(3,358,758)

Net current liabilities
  
 
 
(3,842,751)
 
 
(3,358,575)

Total assets less current liabilities
  
4,100,020
4,584,196

  

Creditors: amounts falling due after more than one year
 18 
(4,826,750)
(5,176,750)

  

Net liabilities
  
(726,730)
(592,554)


Capital and reserves
  

Called up share capital 
 22 
80,500
80,500

Profit and loss account brought forward
  
(673,054)
(516,118)

Loss for the year

  

(134,176)
(156,936)

Profit and loss account carried forward
  
(807,230)
(673,054)

  
(726,730)
(592,554)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


N F C Clarke
Director

Date: 24 September 2024

The notes on pages 16 to 31 form part of these financial statements.

Page 11

 


CMA RECRUITMENT GROUP LIMITED
 



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
80,500
(343,083)
(262,583)


Comprehensive income for the year

Loss for the year
-
(146,831)
(146,831)
Total comprehensive income for the year
-
(146,831)
(146,831)



At 1 January 2023
80,500
(489,914)
(409,414)


Comprehensive income for the year

Loss for the year
-
(469,573)
(469,573)
Total comprehensive income for the year
-
(469,573)
(469,573)


At 31 December 2023
80,500
(959,487)
(878,987)


The notes on pages 16 to 31 form part of these financial statements.

Page 12

 


CMA RECRUITMENT GROUP LIMITED
 



COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
80,500
(516,118)
(435,618)


Comprehensive income for the year

Loss for the year
-
(156,936)
(156,936)
Total comprehensive income for the year
-
(156,936)
(156,936)



At 1 January 2023
80,500
(673,054)
(592,554)


Comprehensive income for the year

Loss for the year
-
(134,176)
(134,176)
Total comprehensive income for the year
-
(134,176)
(134,176)


At 31 December 2023
80,500
(807,230)
(726,730)


The notes on pages 16 to 31 form part of these financial statements.

Page 13

 


CMA RECRUITMENT GROUP LIMITED
 



CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(469,573)
(146,831)

Adjustments for:

Amortisation of intangible assets
828,857
828,857

Depreciation of tangible assets
46,049
11,275

Loss on disposal of tangible assets
335
-

Interest paid
135,869
153,303

Interest received
(373)
-

Taxation charge
94,481
167,238

Decrease in debtors
8,567
113,836

(Decrease) in creditors
(230,570)
(326,210)

Corporation tax (paid)
(167,238)
(211,673)

Net cash generated from operating activities

246,404
589,795


Cash flows from investing activities

Purchase of tangible fixed assets
(164,156)
(16,993)

Interest received
373
-

Net cash from investing activities

(163,783)
(16,993)

Cash flows from financing activities

Repayment of loans
(200,256)
(1,068,095)

Interest paid
(135,869)
(153,303)

Net cash used in financing activities
(336,125)
(1,221,398)

Net (decrease) in cash and cash equivalents
(253,504)
(648,596)

Cash and cash equivalents at beginning of year
92,105
740,701

Cash and cash equivalents at the end of year
(161,399)
92,105


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,797
92,105

Working capital facility
(164,196)
-

(161,399)
92,105


The notes on pages 16 to 31 form part of these financial statements.

Page 14

 


CMA RECRUITMENT GROUP LIMITED
 



CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023







At 1 January 2023
Cash flows
Repayment of bank loans
Repayment of loan notes
New hire purchase leases
At 31 December 2023
£

£

£

£

£

£

Cash at bank and in hand

92,105

(89,308)

-

-

-

2,797

Working capital facility

-

(164,196)

-

-

-

(164,196)

Loan notes

(3,904,795)

-

-

350,000

-

(3,554,795)

Bank loans > 1 year

(200,256)

-

200,256

-

-

-

Preference shares

(1,271,955)

-

-

-

-

(1,271,955)

Hire purchase leases

-

-

-

-

83,951

83,951


(5,284,901)
(253,504)
200,256
350,000
83,951
(4,904,198)

The notes on pages 16 to 31 form part of these financial statements.

Page 15

 


CMA RECRUITMENT GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

CMA Recruitment Group Limited is a private company limited by shares, registered in England and Wales. The address of its registered office is disclosed on the company information page. The registered address is also the principal place of business.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 30 January 2019.

 
2.3

Going concern

As at the balance sheet date the Group and Company have net current liabilities and a balance sheet deficit. The Director has reviewed the position and considers that it is appropriate to prepare the accounts on the going concern basis.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Revenue from temporary hires are recognised in the period the services are provided to the client. In the case of permanent hires, revenue is recognised when the placement is unconditionally accepted by both parties. A provision is made for any cancelled placements made within 3 months.

Page 16

 


CMA RECRUITMENT GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.10

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

Page 17

 


CMA RECRUITMENT GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.12

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 18

 


CMA RECRUITMENT GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.13
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a straight line or a reducing balance basis.

Depreciation is provided on the following basis:

Long-term leasehold property
-
Over length of the lease
Office equipment
-
33% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.15

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

 
2.16

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Page 19

 


CMA RECRUITMENT GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.16
Financial instruments (continued)

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, the director has made the following judgements:
Impairment of assets
Determine whether there are indicators of impairment of the group's tangible and intangible assets, including goodwill. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Provision of recruitment services
7,265,833
7,768,145

7,265,833
7,768,145


All turnover arose within the United Kingdom.

Page 20

 


CMA RECRUITMENT GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Operating (loss)/profit

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

2023
2022
£
£

Other operating lease rentals
235,673
252,281


6.


Auditors' remuneration

2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
12,400
11,550

Fees payable to the Company's auditors in respect of:

Accounts preparation
4,400
4,050

Taxation compliance services
2,500
2,300


7.


Employees

Staff costs, including director's remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
5,045,067
5,198,982
-
-

Social security costs
541,068
569,530
-
-

Cost of defined contribution scheme
89,418
95,851
-
-

5,675,553
5,864,363
-
-


The average monthly number of employees, employed by the group, during the year was as follows:


        2023
        2022
            No.
            No.







Temporary staff
57
77



Permanent staff
42
44

99
121

Page 21

 


CMA RECRUITMENT GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Director's remuneration

2023
2022
£
£

Director's emoluments
108,860
100,626

108,860
100,626


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.


9.


Interest receivable

2023
2022
£
£


Other interest receivable
373
-

373
-


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
1
639

Other loan interest payable
127,426
152,664

Finance leases and hire purchase contracts
8,442
-

135,869
153,303

Page 22

 


CMA RECRUITMENT GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
94,481
167,238


Total current tax
94,481
167,238

Deferred tax

Total deferred tax
-
-


Tax on (loss)/profit
94,481
167,238

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(375,092)
20,407


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
(88,222)
3,877

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
15,063
7,790

Change in tax rates
-
(7,749)

Other timing differences leading to an increase (decrease) in taxation
(7,604)
(2,702)

Non-taxable income
(347)
-

Deferred tax asset not recognised
10,041
32,289

Other differences leading to an increase (decrease) in the tax charge
165,550
133,733

Total tax charge for the year
94,481
167,238


12.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The loss after tax of the parent Company for the year was £134,176 (2022 - loss £156,936).

Page 23

 


CMA RECRUITMENT GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Intangible assets

Group and Company





Goodwill

£



Cost


At 1 January 2023
8,288,572



At 31 December 2023

8,288,572



Amortisation


At 1 January 2023
3,177,285


Charge for the year on owned assets
828,857



At 31 December 2023

4,006,142



Net book value



At 31 December 2023
4,282,430



At 31 December 2022
5,111,287



Page 24

 


CMA RECRUITMENT GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Tangible fixed assets

Group






Long-term leasehold property
Office equipment
Total

£
£
£



Cost or valuation


At 1 January 2023
48,363
112,063
160,426


Additions
42,030
122,126
164,156


Disposals
-
(24,317)
(24,317)



At 31 December 2023

90,393
209,872
300,265



Depreciation


At 1 January 2023
36,478
86,386
122,864


Charge for the year on owned assets
9,399
36,650
46,049


Disposals
-
(23,982)
(23,982)



At 31 December 2023

45,877
99,054
144,931



Net book value



At 31 December 2023
44,516
110,818
155,334



At 31 December 2022
11,885
25,677
37,562




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Long leasehold
44,516
11,885

44,516
11,885


Page 25

 


CMA RECRUITMENT GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
7,942,771



At 31 December 2023
7,942,771





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

CMA Financial Recruitment Limited
Meridians House, 7 Ocean Way, Southampton, SO14 3TJ
Ordinary
100%


16.


Debtors

Group
Group
2023
2022
£
£


Trade debtors
467,908
547,647

Other debtors
84,254
65,284

Prepayments and accrued income
101,426
49,224

653,588
662,155


Page 26

 


CMA RECRUITMENT GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Working capital facility
164,196
-
-
-

Bank loans
-
200,256
-
200,256

Trade creditors
68,912
27,079
-
-

Amounts owed to group undertakings
-
-
3,844,238
3,158,502

Corporation tax
98,566
171,323
-
-

Other taxation and social security
413,968
407,684
-
-

Obligations under finance lease and hire purchase contracts
20,353
-
-
-

Other creditors
49,174
35,397
-
-

Accruals and deferred income
266,690
293,105
-
-

1,081,859
1,134,844
3,844,238
3,358,758





18.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Other loans
3,554,795
3,904,795
3,554,795
3,904,795

Net obligations under finance leases and hire purchase contracts
63,598
-
-
-

Share capital treated as debt
1,271,955
1,271,955
1,271,955
1,271,955

4,890,348
5,176,750
4,826,750
5,176,750


Disclosure of the terms and conditions attached to the non-equity shares is made in note 22.

The interest charged on the loan notes is 2.5%.

Page 27

 


CMA RECRUITMENT GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Bank loans
-
200,256
-
200,256

Amounts falling due 1-2 years

Other loans
3,554,795
3,904,795
3,554,795
3,904,795


3,554,795
4,105,051
3,554,795
4,105,051



20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£
£

Within one year
20,353
-

Between 1-5 years
63,598
-

83,951
-

Page 28

 


CMA RECRUITMENT GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Deferred taxation


Group



2023


£






At beginning of year
(929)



At end of year
(929)

The provision for deferred taxation is made up as follows:

Group
Group
2023
2022
£
£

Fixed asset timing differences
(929)
(929)

(929)
(929)


22.


Share capital

2023
2022
£
£
Shares classified as equity

Allotted, called up and fully paid



70,000 (2022 - 74,000) A Ordinary shares of £1.00 each
70,000
74,000
10,500 (2022 - 6,500) B Ordinary shares of £1.00 each
10,500
6,500

80,500

80,500

2023
2022
£
£
Shares classified as debt

Allotted, called up and fully paid



1,271,955 (2022 - 1,271,955) Preference shares of £1.00 each
1,271,955
1,271,955


Ordinary A and Ordinary B shares both hold equal voting and dividends rights. Preference shares hold no voting rights nor rights of redemption.

Page 29

 


CMA RECRUITMENT GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Reserves

Profit and loss account

The profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.


24.


Share-based payments

The Company has a share option scheme for selected employees of the Group. The Company takes part in this group share-based payment plan, and recognises and measures its allocation of the share-based payment expense on a pro-rata basis.
Options are exercisable at a price equal to the estimate fair value of the Company's shares on the date of grant. If the options remain unexercised after a period of ten years from the date of grant, the options expire. At the discretion of the Company, options may be forfeited if the employee leaves the company before the options vest. Per the scheme rules, the options are exercisable where the Company is listed or sold. 
See further details in the table below.

Weighted average exercise price (pence)
2023
Number
2023
Weighted average exercise price
(pence)
2022
Number
2022

Outstanding at the beginning of the year

100

19,500

100
 
19,500
 
Granted during the year

100

4,000

 
-
 
Outstanding at the end of the year
100

23,500

100
 
19,500
 

The Company has not recognised any expense in the year or previous year as the Company considers the share options to have no current value based on no foreseeable listing or sale of the Company.





25.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group  to the fund and amounted to £89,418 (2022 - £95,851). Contributions totalling £14,279 (2022 - £13,734) were payable to the fund at the reporting date and are included in creditors.

Page 30

 


CMA RECRUITMENT GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

26.


Commitments under operating leases

At 31 December 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
206,787
104,320

Later than 1 year and not later than 5 years
384,029
154,900

Later than 5 years
155,079
-

745,895
259,220

During the year, the Group recognised £235,673 (2022 - £252,281) as an expense relating to operating leases.


27.


Related party transactions

The Company has taken advantage of the available exemption conferred by Section 1AC.35 of FRS102 not to disclose transactions with wholly owned members of the Group.


28.


Controlling party

The ultimate controlling party is Mr N F C Clarke, the director.

 
Page 31