Company registration number 13054998 (England and Wales)
RBW CONSULTING GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
RBW CONSULTING GROUP LIMITED
COMPANY INFORMATION
Directors
Mr N J Rapley
Mr R W Warren
Mr J Wakefield
Company number
13054998
Registered office
3 Churchill Court
Manor Royal
Crawley
West Sussex
RH10 9LU
Auditor
Richard Place Dobson Services Limited
Ground Floor
1 - 7 Station Road
Crawley
West Sussex
RH10 1HT
RBW CONSULTING GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 31
RBW CONSULTING GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
page 1

The directors present the strategic report for the year ended 31 December 2023.

Summary and Outlook

The directors present their report alongside the audited financial statement for the year ended 31 December 2023.

The market slowdown that began in Q3 2022 became more pronounced and evolved into a significant correction through 2023, leading to the board making several tough but necessary decisions during the year to reduce costs and thereby safeguard the future of the business. These decisions included the shutdown of the Newcastle (UK) office, a restructure of senior management which saw the CCO depart the business, and reductions to non-sales headcount. Despite these changes reducing overheads to a significant degree, the business traded at a loss throughout the year, but the strategic decision was taken to use reserves built up during 2021 and 2022 to retain the key people and functions needed for the business to grow again in the future. As 2023 ended, market conditions remained subdued, and the board was therefore monitoring internal and external leading indicators closely.

 

On a positive note, the board took the strategic decision to grow RBW’s contract business during 2023, making a number of key hires, redirecting certain resources that were already in the business, and making the necessary operational changes to enable the contract book to grow properly. These changes bore fruit, with the contract book growing steadily as the year ended, and this set to continue in 2024. In addition, as 2023 ended, the business was in the process of setting up a third US office in Raleigh-Durham (NC) to access the substantial life sciences market that the Research Triangle Park (RTP) represents.

 

Business model

The group provides specialist search and recruitment solutions to the life-science and pharmaceutical industry across Europe and the US, encompassing the placement of permanent staff on a retained, contingent and contract basis.

Our Europe and US offices are aligned to provide our clients with a global service across our specialist markets. Our US offices are in Boston (MA) and San Diego (CA). European offices are Crawley (UK), Brighton (UK), and Zug (CH).

Strategy

Our goal, to be the partner of choice to Life Science and Pharmaceutical companies changing human experience for the better, remains firmly in place. In addition, we are aiming to be the best pound-for-pound recruitment company in our sector by December 2025. This means gauging our success by progress versus the recruitment industry’s recognised key value-drivers, and coupling a strategy based on this with continuing to pride ourselves on our high quality of service, deep sector knowledge, peerless professional network and our ethics, all the while demonstrably working with Purpose and Human IntelligenceTM.

Key performance indicators

In addition to traditional financial KPIs such as number of placements made, NFI/head, staff cost/NFI and average fee margin percentage, the board is focused on progress versus critical value drivers, including the company’s contract to permanent revenue mix, client and fee-earner concentration, attrition, sustainable growth, leadership development and optimising our geographic and sector coverage.

Financial review

 

 

2023

2022

KPI's

 

12 Months Activity

12 Months Activity

 

 

£

£

Revenue

 

10,088,400

14,446,370

Net Fee Income

5,560,738

9,895,413

 

RBW remains entirely self-funded, with no external debt. Growth and cashflow are monitored and forecast carefully, and further metrics to measure our progress versus the key value drivers are being introduced as we go into 2024.

RBW CONSULTING GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
page 2
Principle risks and uncertainties

The board continuously monitors the key risks and uncertainties that may impact the business. These main areas are identified below, and our response is described in each case:

Market

The post-Pandemic life sciences boom of 2021 and 2022 was followed by the correction that began in Q3 2022 and continued throughout 2023. RBW remains well positioned to navigate through what continue to be challenging trading conditions, with substantial reserves, high quality people, in-house L&D, a growing contract business, and leadership prepared to pivot and make tough but prudent decisions as and when required.

Staff

Our people are everything, and retaining the best whilst strengthening with the addition of the best talent remains key to the company’s growth and evolution.

As a fully hybrid business, the board remains committed to ensuring that the business blends the benefits of high quality in-person office interaction with efficient virtual home-working that enables our people to be effective and successful, whilst maintaining a healthy life/​work balance.

In 2020, we took the decision to allocate a full 30% of our growth shares to an employee benefit trust (EBT), representing an irrevocable commitment to share the value we create together beyond the primary shareholders. We see this as a primary proof-point of RBW’s values and commitment to attracting and retaining the highest-quality team. It also underpins our succession planning and provides a mechanism to distribute equity to those who will lead RBW forward in the future. Through the year ended 31 December 2023, further tranches of options were issued to key leaders and management.

 

Clients

We are wholly committed to nurturing the excellent relationships that we have with our valued existing clients whilst striving to build new relationships through structured commercial and business development activity.

Candidates

Our candidates are often also our clients, and this will always be the case. We therefore place great emphasis on developing and maintaining lasting long-term relationships, whilst also remaining ahead of the curve in terms of market understanding, technological evolution and predicting what is likely to come next and fully harnessing the power of Human Intelligence TM.

Differentiators

RBW is constantly striving to set itself apart from its competitors, be it through the EBT established in 2020, our focus on Human Intelligence TM or our desire to be a force for good in our industry through the RBW Impact Program, launched in 2021, and continued throughout 2022 and 2023, that sees us directly investing in patient-led initiatives each year. We are also the first recruitment company in the life sciences sector to become B-Corp certified and, during 2023, we co-launched and ran the Diverse Director’s Programme (DDP) aimed at increasing diversity at board-level within the life sciences sector.

 

On behalf of the board

Mr R W Warren
Director
26 September 2024
RBW CONSULTING GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
page 3

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the Company and Group was that of that of pharmaceutical and IT staff recruitment and placement.

 

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr N J Rapley
Miss E R A Thorp
(Resigned 1 November 2023)
Mr R W Warren
Mr J Wakefield
Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr R W Warren
Director
26 September 2024
RBW CONSULTING GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
page 4

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

RBW CONSULTING GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RBW CONSULTING GROUP LIMITED
page 5
Opinion

We have audited the financial statements of RBW Consulting Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

RBW CONSULTING GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RBW CONSULTING GROUP LIMITED
page 6
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 directors are responsible for assessing 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 auditor's 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 financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We have considered the nature of the business and the likely sources of fraud or material misstatement. Our judgement is that the most likely area for fraud would be the manipulation of commission or bonus payments by staff potentially with collusion of management. We consider the most likely source of error to be the provisioning for unpaid commission or bonuses as there is a degree of estimation involved.

We consider that employment law is of particular significance to this entity as well as the requirements of the Companies Act 2006.

Risks identified
Audit response
Fraud and error arising in income recognition

For a sample of role placements we vouched that the income recorded in the accounting records accorded with contracted amounts. We also undertook analytical procedures with regard to prior year performance, related costs and expected performance.

Misstatment or fraud resulting from management override of controls

We reviewed the general ledger of the business for evidence of unusual and material manual adjustments as well as considering reversals occurring directly after the year-end. We considered the level of incentive payments made against the output of the business for evidence that this had been manipulated.

Misstatement of employment costs due to estimation error for unpaid performance incentives

We reviewed the calculations of any estimated figures and reperformed a sample. We reviewed subsequent payments made to establish completeness.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

RBW CONSULTING GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RBW CONSULTING GROUP LIMITED
page 7

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 an auditor's 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.

Philip Hayden FCA
For and on behalf of Richard Place Dobson Services Limited
26 September 2024
Chartered Accountants
Statutory Auditor
Ground Floor
1 - 7 Station Road
Crawley
West Sussex
RH10 1HT
RBW CONSULTING GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
page 8
2023
2022
Notes
£
£
Turnover
3
10,088,400
14,446,370
Cost of sales
(4,527,662)
(4,550,957)
Gross profit
5,560,738
9,895,413
Administrative expenses
(7,923,172)
(8,471,495)
Other operating income
15,604
-
Operating (loss)/profit
4
(2,346,830)
1,423,918
Interest receivable and similar income
8
-
0
11,229
Interest payable and similar expenses
9
(44,622)
(12,460)
(Loss)/profit before taxation
(2,391,452)
1,422,687
Tax on (loss)/profit
10
189,509
(375,622)
(Loss)/profit for the financial year
(2,201,943)
1,047,065
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
RBW CONSULTING GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
page 9
2023
2022
£
£
(Loss)/profit for the year
(2,201,943)
1,047,065
Other comprehensive income
-
-
Total comprehensive income for the year
(2,201,943)
1,047,065
Total comprehensive income for the year is all attributable to the owners of the parent company.
RBW CONSULTING GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
page 10
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
2,066,452
2,755,578
Tangible assets
13
15,136
121,131
2,081,588
2,876,709
Current assets
Debtors
16
2,142,110
1,975,573
Cash at bank and in hand
1,467,184
4,045,374
3,609,294
6,020,947
Creditors: amounts falling due within one year
17
(981,997)
(1,363,247)
Net current assets
2,627,297
4,657,700
Total assets less current liabilities
4,708,885
7,534,409
Creditors: amounts falling due after more than one year
18
(49,577)
(55,396)
Provisions for liabilities
Deferred tax liability
20
92,782
146,591
(92,782)
(146,591)
Net assets
4,566,526
7,332,422
Capital and reserves
Called up share capital
22
100,004
100,004
Share premium account
5,484,227
5,484,227
Capital redemption reserve
27,987
-
0
Profit and loss reserves
(1,045,692)
1,748,191
Total equity
4,566,526
7,332,422
The financial statements were approved by the board of directors and authorised for issue on 26 September 2024 and are signed on its behalf by:
26 September 2024
Mr R W Warren
Director
Company registration number 13054998 (England and Wales)
RBW CONSULTING GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
page 11
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
6,743,191
6,743,191
Current assets
Debtors
16
875,211
30,006
Creditors: amounts falling due within one year
17
(1,627,902)
(965,084)
Net current liabilities
(752,691)
(935,078)
Total assets less current liabilities
5,990,500
5,808,113
Creditors: amounts falling due after more than one year
18
(49,577)
(55,396)
Net assets
5,940,923
5,752,717
Capital and reserves
Called up share capital
22
100,004
100,004
Share premium account
5,484,227
5,484,227
Capital redemption reserve
27,987
-
0
Profit and loss reserves
328,705
168,486
Total equity
5,940,923
5,752,717

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £752,159 (2022 - £489,424 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 26 September 2024 and are signed on its behalf by:
26 September 2024
Mr R W Warren
Director
Company registration number 13054998 (England and Wales)
RBW CONSULTING GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
page 12
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
100,004
5,484,227
-
0
1,001,126
6,585,357
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
1,047,065
1,047,065
Dividends
11
-
-
-
(300,000)
(300,000)
Balance at 31 December 2022
100,004
5,484,227
-
0
1,748,191
7,332,422
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
-
(2,201,943)
(2,201,943)
Issue of share capital
22
22,167
-
0
-
-
22,167
Redemption of shares
22
-
-
27,987
-
27,987
Reduction of shares
22
(22,167)
-
-
(591,940)
(614,107)
Balance at 31 December 2023
100,004
5,484,227
27,987
(1,045,692)
4,566,526
RBW CONSULTING GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
page 13
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
100,004
5,484,227
-
0
(20,938)
5,563,293
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
489,424
489,424
Dividends
11
-
-
-
(300,000)
(300,000)
Balance at 31 December 2022
100,004
5,484,227
-
0
168,486
5,752,717
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
752,159
752,159
Issue of share capital
22
22,167
-
0
-
-
22,167
Redemption of shares
22
-
-
27,987
-
27,987
Reduction of shares
22
(22,167)
-
-
(591,940)
(614,107)
Balance at 31 December 2023
100,004
5,484,227
27,987
328,705
5,940,923
RBW CONSULTING GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
page 14
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
25
(1,815,079)
1,724,768
Interest paid
(44,622)
(12,460)
Income taxes paid
(177,804)
(319,493)
Net cash (outflow)/inflow from operating activities
(2,037,505)
1,392,815
Investing activities
Purchase of tangible fixed assets
(2,413)
(91,369)
Proceeds from disposal of tangible fixed assets
31,500
17,343
Interest received
-
0
11,229
Net cash generated from/(used in) investing activities
29,087
(62,797)
Financing activities
Proceeds from issue of shares
22,167
-
Redemption of shares
(591,939)
-
0
Dividends paid to equity shareholders
-
0
(300,000)
Net cash used in financing activities
(569,772)
(300,000)
Net (decrease)/increase in cash and cash equivalents
(2,578,190)
1,030,018
Cash and cash equivalents at beginning of year
4,045,374
3,015,356
Cash and cash equivalents at end of year
1,467,184
4,045,374
RBW CONSULTING GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
page 15
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
28
(253,266)
(200,000)
Investing activities
Dividends received
823,038
500,000
Net cash generated from investing activities
823,038
500,000
Financing activities
Proceeds from issue of shares
22,167
-
Redemption of shares
(591,939)
-
0
Dividends paid to equity shareholders
-
(300,000)
Net cash used in financing activities
(569,772)
(300,000)
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
RBW CONSULTING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
page 16
1
Accounting policies
Company information

RBW Consulting Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 3 Churchill Court, Manor Royal, Crawley, West Sussex, RH10 9LU.

 

The group consists of RBW Consulting Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company RBW Consulting Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

RBW CONSULTING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
page 17

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

 

 

 

 

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

RBW CONSULTING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
page 18

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
Straight Line over the period of the lease
Computers
50% Straight Line
Motor vehicles
25% Reducing Balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

RBW CONSULTING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
page 19

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

RBW CONSULTING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
page 20
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

RBW CONSULTING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
page 21
1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

RBW CONSULTING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
page 22
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Fees from all recruitment activity
10,088,400
14,446,370
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
5,238,364
6,752,060
United States
4,850,036
7,694,310
10,088,400
14,446,370
2023
2022
£
£
Other revenue
Interest income
-
11,229
4
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
118,921
(411,124)
Depreciation of owned tangible fixed assets
58,919
88,624
Loss/(profit) on disposal of tangible fixed assets
17,989
(2,589)
Amortisation of intangible assets
689,126
689,126
Operating lease charges
355,132
386,783
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
7,210
7,000
Audit of the financial statements of the company's subsidiaries
11,330
11,000
18,540
18,000
For other services
Taxation compliance services
2,060
2,000
RBW CONSULTING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
page 23
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
3
3
-
-
Consultants and administrative staff
69
84
-
-
Total
72
87
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,684,647
5,804,758
-
0
-
0
Social security costs
301,766
305,057
-
-
Pension costs
106,365
172,469
-
0
-
0
5,092,778
6,282,284
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
636,682
508,021
Compensation for loss of office
30,000
-
666,682
508,021
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
180,051
204,688
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
-
11,229
RBW CONSULTING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Interest receivable and similar income
(Continued)
page 24
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
-
11,229
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
44,622
12,460
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(156,752)
156,752
Adjustments in respect of prior periods
-
0
(444)
Total UK current tax
(156,752)
156,308
Foreign current tax on profits for the current period
21,052
203,411
Total current tax
(135,700)
359,719
Deferred tax
Origination and reversal of timing differences
(53,809)
15,903
Total tax (credit)/charge
(189,509)
375,622
RBW CONSULTING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
page 25

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(2,391,452)
1,422,687
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(597,863)
270,311
Tax effect of expenses that are not deductible in determining taxable profit
-
0
2,421
Unutilised tax losses carried forward
281,310
-
0
Amortisation on assets not qualifying for tax allowances
106,309
106,309
Effect of overseas tax rates
20,735
(42,514)
Deferred tax adjustments in respect of prior years
-
0
39,095
Taxation (credit)/charge
(189,509)
375,622
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
-
300,000
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
4,093,628
Amortisation and impairment
At 1 January 2023
1,338,050
Amortisation charged for the year
689,126
At 31 December 2023
2,027,176
Carrying amount
At 31 December 2023
2,066,452
At 31 December 2022
2,755,578
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
RBW CONSULTING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
page 26
13
Tangible fixed assets
Group
Leasehold land and buildings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
56,487
126,166
55,990
238,643
Additions
-
0
2,413
-
0
2,413
Disposals
-
0
-
0
(55,990)
(55,990)
At 31 December 2023
56,487
128,579
-
0
185,066
Depreciation and impairment
At 1 January 2023
30,910
80,101
6,501
117,512
Depreciation charged in the year
16,734
42,185
-
0
58,919
Eliminated in respect of disposals
-
0
-
0
(6,501)
(6,501)
At 31 December 2023
47,644
122,286
-
0
169,930
Carrying amount
At 31 December 2023
8,843
6,293
-
0
15,136
At 31 December 2022
25,577
46,065
49,489
121,131
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
6,743,191
6,743,191
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
6,743,191
Carrying amount
At 31 December 2023
6,743,191
At 31 December 2022
6,743,191
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

RBW CONSULTING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Subsidiaries
(Continued)
page 27
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Black 22 Limited
United Kingdom
Ordinary
100.00
-
Thorp Associates Limited
United Kingdom
Ordinary
100.00
-
RBW Consulting Limited
United Kingdom
Ordinary
-
100.00
RBW Consulting LLC
United States
Ordinary
100.00
-
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,237,440
1,451,807
-
0
-
0
Corporation tax recoverable
157,196
444
-
0
-
0
Amounts owed by group undertakings
-
-
823,038
-
Other debtors
132,391
109,572
52,173
30,006
Prepayments and accrued income
615,083
413,750
-
0
-
0
2,142,110
1,975,573
875,211
30,006
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
381,654
363,776
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
1,627,902
965,084
Corporation tax payable
-
0
156,752
-
0
-
0
Other taxation and social security
111,521
179,460
-
-
Other creditors
4,088
32,835
-
0
-
0
Accruals and deferred income
484,734
630,424
-
0
-
0
981,997
1,363,247
1,627,902
965,084
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Other borrowings
19
49,577
55,396
49,577
55,396
RBW CONSULTING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
page 28
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Preference shares
49,577
55,396
49,577
55,396
Payable after one year
49,577
55,396
49,577
55,396
20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Deccelerated /Accelerated capital allowances
(15,218)
6,191
Intangible assets
108,000
140,400
92,782
146,591
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
146,591
-
Credit to profit or loss
(53,809)
-
Liability at 31 December 2023
92,782
-

The deferred tax liabilities set out above as relate to capital allowances are expected to reverse within 12 months and relate to capital allowances in advcance of depreciation. The deferred tax liability as relates intangibles set out above is expected to reverse in over 12 months and relates to goodwill for which amortisation will be charged bot for which a tax deduction will not be available.

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
106,365
172,469

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

RBW CONSULTING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
page 29
22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,004
100,004
100,004
100,004
23
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
54,909
122,206
-
-
Between two and five years
-
54,909
-
-
54,909
177,115
-
-
24
Related party transactions
Transactions with related parties
Other information

During the year ending 31 December 2023, the group was controlled by its directors.

 

In accordance with FRS102 33.1A disclosures have not been made regarding transactions between subsidiaries of the wholly owned group. Such transactions and balances have been eliminated in the consolidation of the group financial statements.

 

The balance of the directors loan accounts with the group at the year end was £2,583 (2022: £2,883) owed by the group. Interest is attached to the loans at a compound rate of 4.9%.

 

The company advanced a loan of £29,999 to an employee benefit trust in 2022 which remained outstanding as at 31 December 2023. The loan was interest free and repayable on demand.

 

No dividends were paid in the year to directors of the group (2022: £300,000).

 

There was no key management personnel compensation during the year.

RBW CONSULTING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
page 30
25
Cash (absorbed by)/generated from group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(2,201,943)
1,047,065
Adjustments for:
Taxation (credited)/charged
(189,509)
375,622
Finance costs
44,622
12,460
Investment income
-
0
(11,229)
Loss/(gain) on disposal of tangible fixed assets
17,989
(2,589)
Amortisation and impairment of intangible assets
689,126
689,126
Depreciation and impairment of tangible fixed assets
58,919
88,624
Movements in working capital:
Increase in debtors
(9,785)
(43,880)
Decrease in creditors
(224,498)
(430,431)
Cash (absorbed by)/generated from operations
(1,815,079)
1,724,768
26
Analysis of changes in net debt - group
2023
£
Opening net funds/(debt)
Cash and cash equivalents
4,045,374
Loans
(55,396)
3,989,978
Changes in net debt arising from:
Cash flows of the entity
(2,558,385)
Changes in market value and exchange rates
(13,986)
Closing net funds/(debt) as analysed below
1,417,607
Closing net funds/(debt)
Cash and cash equivalents
1,467,184
Loans
(49,577)
1,417,607
RBW CONSULTING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
page 31
27
Analysis of changes in net debt - company
2023
£
Opening net debt
Loans
(55,396)
Changes in net debt arising from:
Cash flows of the entity
6,818,392
Acquisition and disposal of subsidiaries
(6,798,587)
Changes in market value and exchange rates
(13,986)
Closing net debt as analysed below
(49,577)
Closing net debt
Loans
(49,577)
28
Cash absorbed by operations - company
2023
2022
£
£
Profit for the year after tax
752,159
489,424
Adjustments for:
Investment income
(823,038)
(500,000)
Movements in working capital:
Increase in debtors
(845,205)
-
Increase/(decrease) in creditors
862,818
(189,424)
Cash absorbed by operations
(53,266)
(200,000)
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