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Registered number: 06072193










JCW SEARCH LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
JCW SEARCH LIMITED
 
 
COMPANY INFORMATION


Director
JCW Woods 




Company secretary
CH Woods



Registered number
06072193



Registered office
3rd Floor 55 Old Broad Street

London

EC2M 1RX




Independent auditor
MHA
Chartered Accountants & Statutory Auditors

Building 4, Foundation Park

Roxbrough Way

Maidenhead

Berkshire

SL6 3UD





 
JCW SEARCH LIMITED
 

CONTENTS



Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 8
Statement of income and retained earnings
9
Balance sheet
10
Statement of cash flows
11
Analysis of net debt
12
Notes to the financial statements
13 - 28


 
JCW SEARCH LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
JCW Search is a staffing and recruitment business operating within Financial Services, Technology and Life Science markets with a primary focus on Risk, Compliance, Audit, Change, Data, AI and Cyber Security.

Business review
 
We are pleased to deliver our financial results for the year ended 31 December 2023. During 2023 JCW Search delivered an operating loss before exceptional items of £103,184. Within the period there was an exceptional cost to the sumof £316,095, being the write off of a loan to a related party. This resulted in an operating loss of £419,279.

Principal risks and uncertainties
 
Interest rates
The company uses a single source of working capital funding by invoice discounting via a third party. The existence of this source of funding exposes the company to interest rates risks, however during 2023 the business was able to support its own working capital requirement, therefore mitigating any risk of increased costs. During 2024 the company will put in place a new invoice discounting arrangement, the facility usage is not expected to be material and as a consequence the interest rates risk will be minimal.
Fluctuations in currency exchange rates
Due to trade in Europe and US the company is exposed to foreign currency fluctuations. The company manages its exchange exposure by maintaining foreign currency bank accounts to receive cash and transfers funds into its GBP account at favourable rates to reduce the exposure.
Liquidity risk
The company actively maintains an appropriate level of liquidity through a suitable amount of cash in hand and an invoice discounting facility. JCW Search Limited also has other liquid companies linked by common ownership providing additional funding should it be required.
Credit Risk
Principal assets within the business are cash and debtors. Credit risk associated is limited due to the client spread which is largely blue-chip advisory firms and banks. To maintain credit risk all clients are routinely credit checked and aged debt reports are reviewed weekly by the Director.
Inflation
The company considers itself with a diluted risk in this respect. Due to the nature of the business being based off market rate salaries, the expectation is that these will increase over time to balance personal lives of those suffering the same inflationary risks. Regardless, inflation will be a key consideration during the budgeting process.

Page 1

 
JCW SEARCH LIMITED
 

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

Financial key performance indicators
 
Management use the following key performance indicators to assess the performance of the company:
- Contract gross profit
- Permanent placement gross profit
- Sales, gross profit and earnings before interest and tax ("EBIT") growth versus prior year
- Sales, gross profit and EBIT growth versus budget
- EBIT and EBIT margin.


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



JCW Woods
Director

Date: 8 October 2024

Page 2

 
JCW SEARCH LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Director's responsibilities statement

The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the director is required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £398,300 (2022 - loss £3,719,154).

During the year the company made dividend payments of £Nil (2022: £NIL).

Director

The director who served during the year was:

JCW Woods 

Future developments

In the coming 12 months we expect the business to maintain sales headcount at current levels with a greater focus on profit. We expect to return to profit and continue to grow our European market share and presence by the end of 2024.

Page 3

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

Disclosure of information to auditor

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

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

Post balance sheet events

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

Auditor

The auditor, MHAwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





JCW Woods
Director

Date: 8 October 2024

Page 4

 
JCW SEARCH LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JCW SEARCH LIMITED
 

Opinion


We have audited the financial statements of JCW SEARCH LIMITED (the 'Company') for the year ended 31 December 2023, which comprise the Statement of income and retained earnings, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Page 5

 
JCW SEARCH LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JCW SEARCH LIMITED (CONTINUED)


Conclusions relating to going concern


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


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.


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.
Our evaluation of the directors’ assessment of the entity’s ability to continue to adopt the going concern basis of accounting included considerations over the Company’s business model and related risks, including, where relevant, the impact of the cost of living crisis and inflationary pressures and exposure to increasing interest rates, the requirements of the applicable financial reporting framework and the system of internal control. We evaluated the Directors' assessment of the Company's ability to continue as a going concern, including challenging the underlying data and key assumptions used to make the assessment and evaluated the Directors' plans for future actions in relation to their going concern assessment.
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 director is responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 6

 
JCW SEARCH LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JCW SEARCH LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Director's report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Director's report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, 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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Director's responsibilities statement set out on page 3, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the director is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
JCW SEARCH LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JCW SEARCH LIMITED (CONTINUED)


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:
Enquiry of management and those charged with governance around actual, potential or suspected litigation, claims non-compliance with applicable laws and regulations and fraud;


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.









Jason Mitchell MBA BSc FCA (Senior statutory auditor)
  
for and on behalf of
MHA
 
Chartered Accountants
Statutory Auditors
  
Building 4, Foundation Park
Roxbrough Way
Maidenhead
Berkshire
SL6 3UD

Date: 8 October 2024

MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).

Page 8

 
JCW SEARCH LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
4,150,779
7,129,734

Cost of sales
  
(1,850,934)
(3,785,138)

Gross profit
  
2,299,845
3,344,596

Administrative expenses
  
(3,984,469)
(4,437,630)

Exceptional administrative expenses
 13 
(316,095)
(4,174,209)

Other operating income
 5 
1,581,440
1,644,295

Operating loss
 6 
(419,279)
(3,622,948)

Interest receivable and similar income
 10 
6,750
10,059

Interest payable and similar expenses
 11 
(25,401)
(13,745)

Loss before tax
  
(437,930)
(3,626,634)

Tax on loss
 12 
39,630
(92,520)

Loss after tax
  
(398,300)
(3,719,154)

  

  

Retained earnings at the beginning of the year
  
(1,558,069)
2,161,085

Loss for the year
  
(398,300)
(3,719,154)

Retained earnings at the end of the year
  
(1,956,369)
(1,558,069)

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

The notes on pages 13 to 28 form part of these financial statements.

Page 9

 
JCW SEARCH LIMITED
REGISTERED NUMBER: 06072193

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 14 
167,953
219,193

  
167,953
219,193

Current assets
  

Debtors: amounts falling due within one year
 15 
3,023,462
4,265,403

Cash at bank and in hand
 16 
107,796
587,709

  
3,131,258
4,853,112

Creditors: amounts falling due within one year
 17 
(5,209,183)
(6,472,866)

Net current liabilities
  
 
 
(2,077,925)
 
 
(1,619,754)

Total assets less current liabilities
  
(1,909,972)
(1,400,561)

Creditors: amounts falling due after more than one year
 18 
(46,297)
(157,408)

  

Net liabilities
  
(1,956,269)
(1,557,969)


Capital and reserves
  

Called up share capital 
 22 
100
100

Profit and loss account
 23 
(1,956,369)
(1,558,069)

  
(1,956,269)
(1,557,969)


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




JCW Woods
Director

Date: 8 October 2024

The notes on pages 13 to 28 form part of these financial statements.

Page 10

 
JCW SEARCH LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Loss for the financial year
(398,300)
(3,719,154)

Adjustments for:

Depreciation of tangible assets
81,109
86,317

Interest paid
12,125
9,467

Interest received
(6,750)
(10,059)

Taxation charge
(39,629)
92,520

Decrease/(increase) in debtors
778,300
(199,662)

Decrease in amounts owed by groups
478,774
473,341

Decrease/(increase) in amounts owed by joint ventures
-
(21,476)

(Decrease)/increase in creditors
(559,087)
-

(Decrease)/increase in amounts owed to groups
(662,658)
3,505,809

Corporation tax (paid)
(17,441)
(308,249)

Net cash generated from operating activities

(333,557)
(91,146)


Cash flows from investing activities

Purchase of tangible fixed assets
(29,869)
(48,147)

Sale of unlisted and other investments
-
10,000

Interest received
6,750
10,059

Net cash from investing activities

(23,119)
(28,088)

Cash flows from financing activities

Repayment of loans
-
(111,111)

Repayment of other loans
(111,112)
-

Interest paid
(12,125)
(9,467)

Net cash used in financing activities
(123,237)
(120,578)

Net (decrease) in cash and cash equivalents
(479,913)
(239,812)

Cash and cash equivalents at beginning of year
587,709
827,521

Cash and cash equivalents at the end of year
107,796
587,709


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
107,796
587,709


The notes on pages 13 to 28 form part of these financial statements.

Page 11

 
JCW SEARCH LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

587,709

(479,913)

107,796

Debt due after 1 year

(157,408)

111,111

(46,297)

Debt due within 1 year

(131,819)

(204,593)

(336,412)


298,482
(573,395)
(274,913)

The notes on pages 13 to 28 form part of these financial statements.

Page 12

 
JCW SEARCH LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

JCW Search Limited is a Company incorporated in England and Wales under the Companies Act. The address of the registered office and the Company number are given on the Company information page.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors believe that it remains appropriate to prepare the financial statements on a going concern basis as the company has suffered minor losses excluding exceptional items and has now returned to profitability. The company has net liabilities of £1,956,269.
The directors have reviewed the cash flow forecasts of the company, together with resources available to the entity, and have concluded that there is no material uncertainty, therefore they continue to adopt the going concern basis in preparing the annual report and accounts. Further details can be found in the Strategic report and the Directors' report.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of income and retained earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 13

 
JCW SEARCH LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

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:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the Company as lessee

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

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

 
2.6

Interest income

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

 
2.7

Finance costs

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

Page 14

 
JCW SEARCH LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Borrowing costs

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

 
2.9

Pensions

Defined contribution pension plan

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

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

 
2.10

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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

 
2.11

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.12

Tangible fixed assets

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

Page 15

 
JCW SEARCH LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

The estimated useful lives range as follows:

Short-term leasehold property
-
Over 5 years
Fixtures and fittings
-
25% reducing balance
Computer equipment
-
25% reducing balance

 
2.13

Valuation of investments

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of income and retained earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.18

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS
Page 16

 
JCW SEARCH LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.18
Financial instruments (continued)

102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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

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

Basic financial assets

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

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

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Financial liabilities

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

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

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is
Page 17

 
JCW SEARCH LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.18
Financial instruments (continued)

due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In applying the Company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the times when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.


Critical judgements in applying the Company's accounting policies

The critical judgements that the directors have made in the process of applying the Company's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below. 
(i) Assessing indicators of impairment
In assessing whether there have been any indicators of impaired assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairments identified during the current financial year. 

Page 18

 
JCW SEARCH LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: 
(ii) Recoverability of receivables
The company establishes a provision for receivables that are estimated not to be recoverable. When assessing recoverability the directors consider factors such as the ageing of receivables, past experience of recoverability, and the credit profile of individuals or groups of customers.


4.


Turnover

The whole of the turnover is attributable to the provision of recruitment services and arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Other operating income
43,673
44,490

Management charges to related companies (see note 25)
1,537,767
1,599,805

1,581,440
1,644,295



6.


Operating loss

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

2023
2022
£
£

Exchange differences
(18,802)
22,781

Other operating lease rentals
86,463
63,973

Depreciation
81,109
86,317


7.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2023
2022
£
£

Audit of the Company's financial statements
13,800
13,000

Tax compliance services
1,850
3,000

All other services
3,200
1,750
Page 19

 
JCW SEARCH LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employees

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


2023
2022
£
£

Wages and salaries
2,380,744
2,578,677

Social security costs
196,133
270,299

Cost of defined contribution scheme
20,273
34,165

2,597,150
2,883,141


The average monthly number of employees, including the director, during the year was as follows:


        2023
        2022
            No.
            No.







Directors
1
1



Staff
77
82

78
83


9.


Director's remuneration

2023
2022
£
£

Director's emoluments
4,750
9,500



10.


Interest receivable

2023
2022
£
£


Bank interest receivable
6,750
10,059

Page 20

 
JCW SEARCH LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Interest payable and similar expenses

2023
2022
£
£


Factoring interest
13,276
9,467

Factoring service charges
12,125
4,278

25,401
13,745


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
(26,172)
151,120

Adjustments in respect of previous periods
1,676
32,666


Total current tax
(24,496)
183,786

Deferred tax


Origination and reversal of timing differences
(45,473)
(48,699)

Adjustments in respect of previous periods
30,339
(42,567)

Total deferred tax
(15,134)
(91,266)


Tax on loss
(39,630)
92,520
Page 21

 
JCW SEARCH LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

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

2023
2022
£
£


Loss on ordinary activities before tax
(437,930)
(3,626,634)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
(103,004)
(689,060)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
27,870
805,773

Adjustments to tax charge in respect of previous periods
32,015
(9,901)

Losses carried back at a lower rate
6,228
-

Super-deduction adjustment
(48)
(2,604)

Deferred tax recognised at a higher rate
(2,691)
(11,688)

Total tax charge for the year
(39,630)
92,520


Factors that may affect future tax charges

An increase to the UK corporation tax main rate from 19% to 25% was announced in March 2021 (to be effective from 1 April 2023) applying to profits over £250,000 and therefore deferred tax has been recognised at 25%.


13.


Exceptional items

2023
2022
£
£


Write off of amounts due by related parties
316,095
4,174,209

The company had an outstanding debtor balances with Xander Limited, a related company by virtue of control by J C W Woods. Management has deemed this balance to be fully irrecoverable in 2022 and partially irrecoverable in 2023. During the year, balance of £316,095 (2022: £4,174,209) has been written off in to the profit and loss as an exceptional item.

Page 22

 
JCW SEARCH LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Tangible fixed assets





Leasehold improvements
Fixtures and fittings
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 January 2023
170,731
124,909
141,102
436,742


Additions
-
15,741
14,128
29,869



At 31 December 2023

170,731
140,650
155,230
466,611



Depreciation


At 1 January 2023
103,244
59,961
54,344
217,549


Charge for the year on owned assets
35,211
22,660
23,238
81,109



At 31 December 2023

138,455
82,621
77,582
298,658



Net book value



At 31 December 2023
32,276
58,029
77,648
167,953



At 31 December 2022
67,487
64,948
86,758
219,193


15.


Debtors

2023
2022
£
£


Trade debtors
361,624
793,093

Amounts owed by related parties
1,745,810
2,224,584

Other debtors
292,192
599,025

Prepayments and accrued income
544,108
584,106

Deferred taxation
79,728
64,595

3,023,462
4,265,403


Trade debtors are subject to a sales finance agreement with the company’s bank.

Page 23

 
JCW SEARCH LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
107,796
587,709



17.


Creditors: Amounts falling due within one year

2023
2022
£
£

Other loans
111,110
111,111

Trade creditors
134,866
297,760

Amounts owed to related parties
3,220,900
3,883,558

Corporation tax
137,726
179,663

Other taxation and social security
76,571
99,330

Other creditors
612,211
476,985

Accruals and deferred income
915,799
1,424,459

5,209,183
6,472,866


The sales ledger finance liability is secured by an all assets debenture dated 24 March 2011 giving fixed and floating charges over the company and its property and assets, both present and future.


18.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Other loans
46,297
157,408


Page 24

 
JCW SEARCH LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year
111,110
111,111

Amounts falling due 1-2 years
46,297
111,111

Amounts falling due 2-5 years
-
46,297


157,407
268,519



20.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at face value through profit or loss
107,796
587,709

Financial assets measured at amortised cost
2,830,527
5,302,007

2,938,323
5,889,716


Financial liabilities


Financial liabilities measured at amortised cost
(4,150,263)
(5,538,865)


Financial assets measured at face value through profit or loss comprise bank balances and cash.


Financial assets measured at amortised cost comprise trade and other debtors.


Financial liabilities measured at amortised cost comprise trade and other creditors.


21.


Deferred taxation




2023


£






At beginning of year
64,595


Charged to profit or loss
15,133



At end of year
79,728

Page 25

 
JCW SEARCH LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
21.Deferred taxation (continued)

The deferred tax asset is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(24,222)
(29,255)

Short term timing differences
103,950
93,850

79,728
64,595

Page 26

 
JCW SEARCH LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares of £1.00 each
100
100

The Company has a share option scheme which is open to eligible employees at the discretion of the board. Options are exercisable at a price equal to the higher of the nominal value or market price of the Company's shares at the date of the grant.
In the scheme, the options vest on the shares of the Company being listed, sold or undergoing a reorganisation or at any time at the discretion of the board. 
There were no options granted in 2023 (2022: none) under the Enterprise Management Incentive Scheme. All previous options were outstanding at the year end.
The fair values of the options were calculated using a Black Scholes model. The inputs for the model were as follows:
Weighted average share price: £1.040
Weighted average exercise price: £8.650
Expected volatility: 50.00%
Risk free rate: 2.00%
Expected dividend yield: 0.00%
The Company recognised no charges relating to equity settled share based payment transactions during the year as the results are considered immaterial in the context of these financial statements.



23.


Reserves

Profit and loss account

This represents cumulative profits less any dividends paid. 


24.


Commitments under operating leases

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

2023
2022
£
£


Not later than 1 year
193,958
210,096

Later than 1 year and not later than 5 years
-
350,071

193,958
560,167

Page 27

 
JCW SEARCH LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

25.


Related party transactions

During the year the company paid no dividends (2022: £Nil) to J C W Woods, the director of the company. During the year the company made advances of £522,729 (2022: £514,854) to J C W Woods and received repayments of £215,983 (2022: £44,032). Included in other creditors at the year end is an amount owed by the director of £nill (2022 : £73,179).
During the year the company received management recharges of £937,017 (2022: £1,130,966) from JCW Search, Inc., a company controlled by J C W Woods, for services provided. During the year the company recharged JCW Search, Inc. £433,711 (2022: £642,043) for costs incurred by the company on its behalf. At the year end the company owed JCW Search Inc. £2,520,163 (2022: £3,620,037). This balance is included in amounts due to related parties.
During the year the company received management recharges of £444,800 (2022: £363,239) from JCW Search GmbH, a company controlled by J C W Woods, for services provided. During the year the company recharged JCW Search GmbH £397,700 (2022: £279,877) for costs incurred by the company on its behalf. At the year end JCW Search GmbH owed the company £467,639 (2022: £703,042), this balance is included in amounts due from related parties.
During the year the company received management recharges of £155,949 (2022: £176,066) by Cybernetic Inc, a company controlled by J C W Woods, for services provided. During the year the company recharged Cybernetic Inc £371,465 (2022: £271,202) for support costs incurred by the company on its behalf. At the year end Cybernetic Inc owed the company £0 (2022: £737,626). This balance is included in amounts due from related parties.
During the year the company recharged OutScout Inc £48,000 (2022: £110,973) for support costs incurred by the company on its behalf. At the year end OutScout Inc owed the company £165,598 (2022: £48,345). This balance is included in amounts due from related parties.
During the year the company recharged Xander Talent Limited £260,446 (2022: £284,877) for costs incurred by the company on its behalf. At the year end Xander Talent Limited owed the company £685,237 (2022: £4,174,208) and this balance was partially written off an unrecoverable at the year end (see note 13).
During the year the company recharged Guideline Group Inc £130,668 (2022: £93,334) for support costs incurred by the company on its behalf. At the year end the company owed Guideline Group Inc £109,268 (2022: £36,893). This balance is included in amounts due from related parties.


26.


Controlling party

The ultimate controlling party is Mr J C W Woods by virtue of his majority shareholding in the company.

Page 28