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COMPANY REGISTRATION NUMBER: 07812885
S & S CONSULTING SERVICES (UK) LIMITED
FINANCIAL STATEMENTS
31 October 2023
S & S CONSULTING SERVICES (UK) LIMITED
FINANCIAL STATEMENTS
YEAR ENDED 31 OCTOBER 2023
CONTENTS
PAGE
Strategic report
1
Directors' report
3
Independent auditor's report to the members
5
Statement of comprehensive income
11
Statement of financial position
12
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
17
S & S CONSULTING SERVICES (UK) LIMITED
STRATEGIC REPORT
YEAR ENDED 31 OCTOBER 2023
A) Fair Review of the Company's Business The main activity of the company continued to be the supply of services to its customers across various industry sectors. This includes the engagement and supply of operatives to ensure the company is able to meet its contractual obligations with its customers. We had a significant increase in sales for the period (increase of 20% from 2022), which reflects the growth of the business. We have also significantly surpassed sales achieved in the period prior to Coronavirus due to new contract wins and growth in the existing business. Given the strong financial performance, we have invested in the business during the period by taking on more members of staff. This increase in staff numbers will allow us to act for more clients whilst ensuring we maintain our high levels of service into our loyal customer base. The business has continued to build strong relationships with customers, suppliers and employees. B) Principal Risks and Uncertainties The principal threat to the business is the impending recession. This may add financial pressure on the company's customers ability to pay for our services. To mitigate this risk, we are continuing discussions with our customers on a regular basis to ensure we can identify any potential risks early and in addition, where a risk is identified, the company, where possible, obtains debt insurance. Other risks that are considered and managed effectively are below: Revenue Risk - Internal and external audits are routinely carried out and cut off testing performed during the quarterly management accounts. IT risk - The company have investment in protecting against cyber-crime and back up of IT systems. Credit risk - The company has strong relationships with its customers and the directors are happy that bad debts have historically been low. New customers are credit checked and robust credit control systems are carried out for existing business relationships. Liquidity and cashflow risk - The company regularly reviews the cash flow position of the business to ensure its financial obligations can be met. C) Key Performance Indicators The main key performance indicators monitored by the business are the company turnover and gross profit. These KPI's are monitored through concise quarterly management accounts issued to the directors and senior management team. The company report financial performance against their annual budget each month and reforecast each quarter. There is comprehensive internal control in place to ensure the projections for the year ahead are on target. For the year ended 31 October 2023 underlying profit before tax was £1,049,683 which was a slight decrease when compared with 2022 (2022: £1,214,473). This is in line with the board's expectations. Turnover increased from £148,273,084 to £175,295,666. Gross profit margin decreased slightly from 2.0% in 2022 to 1.8% in 2023, this is due to the increase in sales requiring the company to seek additional services from its suppliers to streamline its processes which has increased the company's costs. Overheads increased to £2,222,681 (2022: £1,775,392) due to investment in the business as outlined above. We are continually investing in our staff to ensure the quality of the service we provide remains at an excellent standard. These investments have helped us to enhance our customer relationships and create new opportunities. D) Outlook The business remains in a strong position to continue its growth into FY24.
This report was approved by the board of directors on 16 September 2024 and signed on behalf of the board by:
Mr S G Hill
Director
Registered office:
Onega House
112 Main Road
Sidcup
Kent
United Kingdom
DA14 6NE
S & S CONSULTING SERVICES (UK) LIMITED
DIRECTORS' REPORT
YEAR ENDED 31 OCTOBER 2023
The directors present their report and the financial statements of the company for the year ended 31 October 2023 .
DIRECTORS
The directors who served the company during the year were as follows:
Mr S G Hill
Mrs J Brookfield
DIVIDENDS
Particulars of recommended dividends are detailed in note 12 to the financial statements.
DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the strategic report, directors' 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 company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. AUDITOR
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 16 September 2024 and signed on behalf of the board by:
Mr S G Hill
Director
Registered office:
Onega House
112 Main Road
Sidcup
Kent
United Kingdom
DA14 6NE
S & S CONSULTING SERVICES (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF S & S CONSULTING SERVICES (UK) LIMITED
YEAR ENDED 31 OCTOBER 2023
OPINION
We have audited the financial statements of S & S Consulting Services (UK) Limited (the 'company') for the year ended 31 October 2023 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 October 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
CONCLUSIONS RELATING TO GOING CONCERN
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' 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 company and its 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: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
RESPONSIBILITIES OF DIRECTORS
As explained more fully in the directors' responsibilities statement, 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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. 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: We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included: - Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; - Reviewed minutes of meetings with those charged with governance; - Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; - Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with the applicable laws and regulations; - Performing audit work over the risk of management bias and override controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indication of potential bias. 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 the compliance with the 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. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
LB Group Limited (Stratford)
Chartered Accountants & statutory auditor
1 Vicarage Lane
Stratford
London
England
E15 4HF
16 September 2024
S & S CONSULTING SERVICES (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
YEAR ENDED 31 OCTOBER 2023
2023
2022
Note
£
£
TURNOVER
4
175,295,667
148,273,084
Cost of sales
172,008,426
145,278,950
---------------
---------------
GROSS PROFIT
3,287,241
2,994,134
Distribution costs
500
Administrative expenses
2,222,681
1,774,892
---------------
---------------
OPERATING PROFIT
5
1,064,560
1,218,742
Other interest receivable and similar income
9
72
311
Interest payable and similar expenses
10
14,949
4,580
---------------
---------------
PROFIT BEFORE TAXATION
1,049,683
1,214,473
Tax on profit
11
306,423
236,254
---------------
---------------
PROFIT FOR THE FINANCIAL YEAR AND TOTAL COMPREHENSIVE INCOME
743,260
978,219
---------------
---------------
All the activities of the company are from continuing operations.
S & S CONSULTING SERVICES (UK) LIMITED
STATEMENT OF FINANCIAL POSITION
31 October 2023
2023
2022
Note
£
£
FIXED ASSETS
Tangible assets
13
18,144
8,647
CURRENT ASSETS
Debtors
14
15,036,208
14,049,117
Cash at bank and in hand
501,325
2,544,546
---------------
---------------
15,537,533
16,593,663
CREDITORS: amounts falling due within one year
15
14,134,670
15,396,491
---------------
---------------
NET CURRENT ASSETS
1,402,863
1,197,172
---------------
---------------
TOTAL ASSETS LESS CURRENT LIABILITIES
1,421,007
1,205,819
CREDITORS: amounts falling due after more than one year
16
12,644
3,716
---------------
---------------
NET ASSETS
1,408,363
1,202,103
---------------
---------------
S & S CONSULTING SERVICES (UK) LIMITED
STATEMENT OF FINANCIAL POSITION (continued)
31 October 2023
2023
2022
Note
£
£
CAPITAL AND RESERVES
Called up share capital
19
102
102
Profit and loss account
1,408,261
1,202,001
---------------
---------------
SHAREHOLDERS FUNDS
1,408,363
1,202,103
---------------
---------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 16 September 2024 , and are signed on behalf of the board by:
Mr S G Hill
Director
Company registration number: 07812885
S & S CONSULTING SERVICES (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
YEAR ENDED 31 OCTOBER 2023
Called up share capital
Profit and loss account
Total
£
£
£
AT 1 NOVEMBER 2021
102
897,522
897,624
Profit for the year
978,219
978,219
-----
------------
------------
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
978,219
978,219
Dividends paid and payable
12
( 673,740)
( 673,740)
-----
------------
------------
TOTAL INVESTMENTS BY AND DISTRIBUTIONS TO OWNERS
( 673,740)
( 673,740)
AT 31 OCTOBER 2022
102
1,202,001
1,202,103
Profit for the year
743,260
743,260
-----
--------------
--------------
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
743,260
743,260
Dividends paid and payable
12
( 537,000)
( 537,000)
-----
------------
------------
TOTAL INVESTMENTS BY AND DISTRIBUTIONS TO OWNERS
( 537,000)
( 537,000)
-----
--------------
--------------
AT 31 OCTOBER 2023
102
1,408,261
1,408,363
-----
--------------
--------------
S & S CONSULTING SERVICES (UK) LIMITED
STATEMENT OF CASH FLOWS
YEAR ENDED 31 OCTOBER 2023
2023
2022
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the financial year
743,260
978,219
Adjustments for:
Depreciation of tangible assets
13,214
6,106
Other interest receivable and similar income
( 72)
( 311)
Interest payable and similar expenses
14,949
4,580
Gains on disposal of tangible assets
( 2,652)
Tax on profit
306,423
236,254
Accrued income
( 125,416)
( 896,704)
Changes in:
Trade and other debtors
( 869,909)
( 3,775,592)
Trade and other creditors
( 1,329,169)
3,347,341
---------------
---------------
Cash generated from operations
( 1,249,372)
( 100,107)
Interest paid
( 14,949)
( 4,580)
Interest received
72
311
Tax paid
( 236,254)
( 206,905)
---------------
------------
Net cash used in operating activities
( 1,500,503)
( 311,281)
---------------
------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of tangible assets
( 25,840)
( 2,163)
Proceeds from sale of tangible assets
5,781
---------------
------------
Net cash used in investing activities
( 20,059)
( 2,163)
---------------
------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
4,356
( 104,646)
Payments of finance lease liabilities
9,985
( 1,010)
Dividends paid
( 537,000)
( 673,740)
---------------
------------
Net cash used in financing activities
( 522,659)
( 779,396)
---------------
------------
S & S CONSULTING SERVICES (UK) LIMITED
STATEMENT OF CASH FLOWS (continued)
YEAR ENDED 31 OCTOBER 2023
2023
2022
Note
£
£
NET DECREASE IN CASH AND CASH EQUIVALENTS
( 2,043,221)
( 1,092,840)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
2,544,546
3,637,386
---------------
---------------
CASH AND CASH EQUIVALENTS AT END OF YEAR
501,325
2,544,546
---------------
---------------
S & S CONSULTING SERVICES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 OCTOBER 2023
1. GENERAL INFORMATION
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Onega House, 112 Main Road, Sidcup, Kent, DA14 6NE, United Kingdom.
2. STATEMENT OF COMPLIANCE
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. ACCOUNTING POLICIES
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixture and fittings
-
25% straight line
Motor vehicles
-
25% straight line
Equipment
-
25% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. TURNOVER
Turnover arises from:
2023
2022
£
£
Rendering of services
175,295,667
148,273,084
---------------
---------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. OPERATING PROFIT
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
13,214
6,106
Gains on disposal of tangible assets
( 2,652)
Impairment of trade debtors
87,399
21,517
----------
----------
6. AUDITOR'S REMUNERATION
2023
2022
£
£
Fees payable for the audit of the financial statements
10,000
10,000
----------
----------
7. STAFF COSTS
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Production staff
22
19
-----
-----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
20,541,699
19,037,825
Social security costs
69,752
61,896
Other pension costs
9,227
13,757
---------------
---------------
20,620,678
19,113,478
---------------
---------------
8. DIRECTORS' REMUNERATION
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
188,542
80,832
------------
----------
9. OTHER INTEREST RECEIVABLE AND SIMILAR INCOME
2023
2022
£
£
Interest on cash and cash equivalents
72
311
-----
-----
10. INTEREST PAYABLE AND SIMILAR EXPENSES
2023
2022
£
£
Interest on banks loans and overdrafts
162
Interest on obligations under finance leases and hire purchase contracts
1,269
421
Other interest payable and similar charges
13,680
3,997
----------
--------
14,949
4,580
----------
--------
11. TAX ON PROFIT
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
306,423
236,254
------------
------------
Tax on profit
306,423
236,254
------------
------------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2022: higher than) the standard rate of corporation tax in the UK of 25 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
1,049,683
1,214,473
---------------
---------------
Profit on ordinary activities by rate of tax
28,347
230,750
Effect of expenses not deductible for tax purposes
84,353
6,233
Effect of capital allowances and depreciation
( 5,667)
( 729)
Rounding on tax charge
( 89)
---------------
---------------
Tax on profit
106,944
236,254
---------------
---------------
12. DIVIDENDS
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
537,000
673,740
------------
------------
13. TANGIBLE ASSETS
Fixtures and fittings
Motor vehicles
Equipment
Total
£
£
£
£
Cost
At 1 November 2022
2,455
9,220
26,414
38,089
Additions
21,200
4,640
25,840
Disposals
( 9,220)
( 1,099)
( 10,319)
--------
----------
----------
----------
At 31 October 2023
2,455
21,200
29,955
53,610
--------
----------
----------
----------
Depreciation
At 1 November 2022
1,708
6,915
20,819
29,442
Charge for the year
425
5,300
7,489
13,214
Disposals
( 6,915)
( 275)
( 7,190)
--------
----------
----------
----------
At 31 October 2023
2,133
5,300
28,033
35,466
--------
----------
----------
----------
Carrying amount
At 31 October 2023
322
15,900
1,922
18,144
--------
----------
----------
----------
At 31 October 2022
747
2,305
5,595
8,647
--------
----------
----------
----------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Motor vehicles
£
At 31 October 2023
15,900
----------
At 31 October 2022
2,305
----------
14. DEBTORS
2023
2022
£
£
Trade debtors
11,131,679
10,278,544
Prepayments and accrued income
3,737,638
3,603,682
Other debtors
166,891
166,891
---------------
---------------
15,036,208
14,049,117
---------------
---------------
15. CREDITORS: amounts falling due within one year
2023
2022
£
£
Trade creditors
188,808
43,130
Accruals and deferred income
14,500
22,734
Corporation tax
306,423
236,254
Social security and other taxes
12,130,294
12,571,337
Obligations under finance leases and hire purchase contracts
2,067
1,010
Director loan accounts
5,317
961
Other creditors
1,487,261
2,521,065
---------------
---------------
14,134,670
15,396,491
---------------
---------------
16. CREDITORS: amounts falling due after more than one year
2023
2022
£
£
Obligations under finance leases and hire purchase contracts
12,644
3,716
----------
--------
17. FINANCE LEASES AND HIRE PURCHASE CONTRACTS
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2023
2022
£
£
Not later than 1 year
2,067
1,010
Later than 1 year and not later than 5 years
12,644
3,716
----------
--------
14,711
4,726
----------
--------
18. EMPLOYEE BENEFITS
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 3,227 (2022: £ 7,657 ).
19. CALLED UP SHARE CAPITAL
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
102
102
102
102
-----
-----
-----
-----
20. ANALYSIS OF CHANGES IN NET DEBT
At 1 Nov 2022
Cash flows
At 31 Oct 2023
£
£
£
Cash at bank and in hand
2,544,546
(2,043,221)
501,325
Debt due within one year
(1,971)
(5,413)
(7,384)
Debt due after one year
(3,716)
(8,928)
(12,644)
---------------
---------------
------------
2,538,859
( 2,057,562)
481,297
---------------
---------------
------------
21. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES
During the year the director did not enter into any advances, credits or guarantees with the company.