Company Registration No. 03234255 (England and Wales)
Templeton and Partners Limited
Annual report and
group financial statements
for the year ended 31 December 2023
Templeton and Partners Limited
Company information
Director
N Ahmad
Company number
03234255
Registered office
Templeton House
33-34 Chiswell Street
London
EC1Y 4SF
Independent auditor
Saffery LLP
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Templeton and Partners Limited
Contents
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 7
Group statement of comprehensive income
8
Group statement of financial position
9
Company statement of financial position
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 30
Templeton and Partners Limited
Strategic report
For the year ended 31 December 2023
1

The director presents the Strategic Report for the Group for the year ended 31 December 2023.

Business review

Group gross profit, which is a key performance indicator for the business has increased by 14% to £4,673,925 (2022 - £4,125,123). Group sales increased by 24% to £33.2m from £26.8m.

 

During the year the UK company faced general increased costs due to inflation and increased competition for talent, as well as drop in value of GBP against other currencies which is the reporting currency of the Group since non-UK sales made up 44% of group sales in 2023.

The results for the year and the financial position at year-end were considered satisfactory.

Principle risks and uncertainties

Objectives and policies

Treasury activities are managed centrally by the Group and are monitored by the Board. The objectives are to protect the assets of the Group and to identify and then manage financial risk. The Group uses very simple financial instruments such as cash and various items such as trade debtors and trade creditors that arise from its operations. Their existence exposes the Group to a number of financial risks which are described in more detail below.

 

Interest Rate Risk

The Group finances its operations through retained profits. The Board feel that given the Group has no borrowings the risk from significant interest rate fluctuations is minimal.

 

Currency risk

The Group trades in markets other than the United Kingdom. The risk of currency fluctuations is managed by holding bank balances in US Dollars, Euros and other local currencies where the Group has an entity.

 

Liquidity Risk

The Group manages its cash requirements centrally to minimise interest expense, whilst the Group has sufficient liquid resources to meet the operating needs of its business.

 

Credit Risk

Credit risk arises on financial instruments such as trade debtors. Policies and procedures exist to ensure that customers have an appropriate credit history and suitable credit limits are set and monitored. This is not considered to be a significant area to the Group.

On behalf of the board

N Ahmad
Director
4 October 2024
Templeton and Partners Limited
Director's report
For the year ended 31 December 2023
2

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

Principal activities

The principal activity of the Group and Company continued to be that of an information technology recruitment agency.

Results and dividends

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

No dividends were paid or proposed during the year (2022: £Nil).

Director

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

N Ahmad
Post reporting date events

Post year end, in order to support its commitment to growth and servicing client needs, at the end of March 2024, based on the strength of the UK company balance sheet has access to a credit facility with the Royal Bank of Scotland.

Future developments

It has been a tough year of trading in 2024 and so sales and profit are expected to be down, although Q3 has seen some excellent new client wins and an upturn in the market. The group will continue to invest in people and systems development.

 

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 and the Group'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 and the Group's auditor is aware of that information.

Auditor

Saffery LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Templeton and Partners Limited
Director's report (continued)
For the year ended 31 December 2023
3
Statement of director's responsibilities

The director is responsible for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

 

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is 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. He is 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.

Matters covered in the Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of:

- the group's assessment of the assets, liabilities, financial position and profit or loss of the company, and

- an indication of financial risk management objectives and policies.

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
N Ahmad
Director
4 October 2024
Templeton and Partners Limited
Independent auditor's report
To the members of Templeton and Partners Limited
4
Opinion

We have audited the financial statements of Templeton and Partners Limited (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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.

 

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.

Templeton and Partners Limited
Independent auditor's report (continued)
To the members of Templeton and Partners Limited
5

Opinions on other matters prescribed by the Companies Act 2006

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

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 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:

 

Responsibilities of director

As explained more fully in the director's responsibilities statement set out on page 2, 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has 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.

Templeton and Partners Limited
Independent auditor's report (continued)
To the members of Templeton and Partners Limited
6

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent company’s financial statements to material misstatement and how fraud might occur, including through discussions with the director, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent company by discussions with director and by updating our understanding of the sector in which the group and parent company operates.

 

Laws and regulations of direct significance in the context of the group and parent company include The Companies Act 2006 and UK Tax legislation.

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of group and parent company financial statement disclosures. We reviewed the parent company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

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.

Templeton and Partners Limited
Independent auditor's report (continued)
To the members of Templeton and Partners Limited
7

Use of our report

This report is made solely to the parent 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 parent company's members those matters we are required to state to them in an auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.

 

Neil Davies (Senior Statutory Auditor)
For and on behalf of Saffery LLP
14 October 2024
Statutory Auditors
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Templeton and Partners Limited
Group statement of comprehensive income
For the year ended 31 December 2023
8
2023
2022
Notes
£
£
Turnover
3
33,157,612
26,793,153
Cost of sales
(28,483,687)
(22,668,030)
Gross profit
4,673,925
4,125,123
Administrative expenses
(4,357,911)
(3,062,289)
Other operating income
197,100
177,600
Operating profit
4
513,114
1,240,434
Interest receivable and similar income
8
60,325
15,881
Interest payable and similar expenses
9
(782)
(1,556)
Profit before taxation
572,657
1,254,759
Tax on profit
10
(119,916)
(180,619)
Profit for the financial year
19
452,741
1,074,140
Other comprehensive income
Currency translation loss arising in the year
(86,612)
(12,338)
Total comprehensive income for the year
366,129
1,061,802
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
Templeton and Partners Limited
Group statement of financial position
As at 31 December 2023
9
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
626,579
704,902
Tangible assets
12
49,614
57,130
676,193
762,032
Current assets
Debtors
14
6,166,375
8,180,340
Cash at bank and in hand
3,120,454
1,588,347
9,286,829
9,768,687
Creditors: amounts falling due within one year
15
(2,239,897)
(3,181,185)
Net current assets
7,046,932
6,587,502
Total assets less current liabilities
7,723,125
7,349,534
Provisions for liabilities
Deferred tax liability
16
7,462
-
0
(7,462)
-
Net assets
7,715,663
7,349,534
Capital and reserves
Called up share capital
18
100
100
Other reserves
19
(110,321)
(23,709)
Profit and loss reserves
19
7,825,884
7,373,143
Total equity
7,715,663
7,349,534

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved and signed by the director and authorised for issue on 4 October 2024
04 October 2024
N Ahmad
Director
Company registration number 03234255 (England and Wales)
Templeton and Partners Limited
Company statement of financial position
As at 31 December 2023
31 December 2023
10
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
44,443
51,681
Investments
13
11,194
11,094
55,637
62,775
Current assets
Debtors
14
6,704,060
8,566,775
Cash at bank and in hand
2,133,043
1,062,412
8,837,103
9,629,187
Creditors: amounts falling due within one year
15
(1,718,120)
(2,640,477)
Net current assets
7,118,983
6,988,710
Total assets less current liabilities
7,174,620
7,051,485
Provisions for liabilities
Deferred tax liability
16
7,462
-
0
(7,462)
-
Net assets
7,167,158
7,051,485
Capital and reserves
Called up share capital
18
100
100
Profit and loss reserves
19
7,167,058
7,051,385
Total equity
7,167,158
7,051,485

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 £115,673 (2022 - £786,195 profit).

The financial statements were approved and signed by the director and authorised for issue on 4 October 2024
04 October 2024
N Ahmad
Director
Company registration number 03234255 (England and Wales)
Templeton and Partners Limited
Group statement of changes in equity
For the year ended 31 December 2023
11
Share capital
Currency translation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
100
(11,371)
6,299,003
6,287,732
Year ended 31 December 2022:
Profit for the year
-
-
1,074,140
1,074,140
Other comprehensive income:
Currency translation differences
-
(12,338)
-
0
(12,338)
Total comprehensive income
-
(12,338)
1,074,140
1,061,802
Balance at 31 December 2022
100
(23,709)
7,373,143
7,349,534
Year ended 31 December 2023:
Profit for the year
-
-
452,741
452,741
Other comprehensive income:
Currency translation differences
-
(86,612)
-
0
(86,612)
Total comprehensive income
-
(86,612)
452,741
366,129
Balance at 31 December 2023
100
(110,321)
7,825,884
7,715,663
Templeton and Partners Limited
Company statement of changes in equity
For the year ended 31 December 2023
12
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
100
6,265,190
6,265,290
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
786,195
786,195
Balance at 31 December 2022
100
7,051,385
7,051,485
Year ended 31 December 2023:
Profit and total comprehensive income
-
115,673
115,673
Balance at 31 December 2023
100
7,167,058
7,167,158
Templeton and Partners Limited
Group statement of cash flows
For the year ended 31 December 2023
13
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
1,767,661
581,926
Interest paid
(782)
(1,556)
Income taxes paid
(197,702)
(148,168)
Net cash inflow from operating activities
1,569,177
432,202
Investing activities
Purchase of intangible assets
-
(783,225)
Purchase of tangible fixed assets
(11,802)
(57,967)
Proceeds from disposal of tangible fixed assets
1,019
-
Interest received
60,325
15,881
Net cash generated from/(used in) investing activities
49,542
(825,311)
Net increase/(decrease) in cash and cash equivalents
1,618,719
(393,109)
Cash and cash equivalents at beginning of year
1,588,347
1,993,794
Effect of foreign exchange rates
(86,612)
(12,338)
Cash and cash equivalents at end of year
3,120,454
1,588,347
Templeton and Partners Limited
Notes to the group financial statements
For the year ended 31 December 2023
14
1
Accounting policies
Company information

Templeton and Partners Limited (“the company”) is a private company limited by shares incorporated in England and Wales (registered number: 03234255). The registered office is Templeton House, 33-34 Chiswell Street, London, EC1Y 4SF.

 

The group consists of Templeton and Partners 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 £1.

The financial statements have been prepared under the historical cost convention, unless otherwise specified within these accounting policies. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

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.

Templeton and Partners Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
15
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Templeton and Partners Limited together with all entities controlled by the parent company (its subsidiaries).

 

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.

1.4
Going concern

The director has used the going concern basis of preparation for the following reasons. The group has prepared forecasts for at least the next 12 months which indicate that the group will have access to sufficient cash to continue to trade and meet its liabilities as they fall due. The group has been profitable in recent years and is expected to continue to generate profits in the period for which the forecasts have been prepared. The group has no external borrowings and holds significant cash reserves, which at 31 December 2023 were approximately £3.1m. Even after consideration of potential downsides such as reduced trading or increased costs, the directors expect to have access to sufficient cash and have concluded that there is no material uncertainty in relation to going concern.

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.

 

Fee income represents revenue earned under contracts to provide professional services. Turnover is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for its performance under these contracts.

Turnover from contracts for the provision of recruitment services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable.

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

1.6
Intangible fixed assets - goodwill

Goodwill arising on business combinations represents the excess of the fair value of the consideration over the fair value of the identifiable assets and liabilities 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 10 years.

Templeton and Partners Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
16
1.7
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.

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:

Fixtures and fittings
25% straight-line

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

 

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 income statement.

1.8
Fixed asset investments

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.

1.9
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.

1.10
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 statement of financial position 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, 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.

Templeton and Partners Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
17
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.

Derecognition of financial liabilities

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

1.11
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.

1.12
Taxation

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

Templeton and Partners Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
18
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has 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.

1.13
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.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as 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 Group in independently administered funds.

1.15
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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Templeton and Partners Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
19
1.16
Foreign exchange

The Company's functional and presentational currency is GBP.

 

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

 

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

1.17

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.

1.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Templeton and Partners Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
20
2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment of trade receivables

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the aging profile of debtors and historical experience. The total carrying value of trade debtors net of provisions is £4,103,925 (2022 - £6,097,832).

Goodwill carrying value

Goodwill is assessed at each reporting date to determine whether there is any indication that the goodwill is impaired. Where there is an indication that the goodwill may be impaired, the carrying value is tested for impairment. An impairment loss is recognised for the amount by which the carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an assets fair value less costs to sell and its value in use. The value in use calculation requires estimation of future discounted cash flows.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Provision of recruitment services
33,157,612
26,793,153
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
18,432,086
13,952,416
Rest of the world
14,725,526
12,840,737
33,157,612
26,793,153
2023
2022
£
£
Other revenue
Interest income
60,325
15,881
Net rents receivable
197,100
177,600
Templeton and Partners Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
21
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Exchange losses
139,406
135,539
Depreciation of owned tangible fixed assets
17,810
9,810
Loss on disposal of tangible fixed assets
489
3,894
Amortisation of intangible assets
78,323
78,323
Operating lease charges
520,261
463,193
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
19,000
22,425
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
Administrative
56
42
41
29

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,292,958
1,830,419
1,951,144
1,477,416
Social security costs
313,038
206,174
240,950
166,602
Pension costs
29,398
16,918
29,398
16,918
2,635,394
2,053,511
2,221,492
1,660,936
7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
130,892
102,100
Templeton and Partners Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
22
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
60,325
15,881
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
782
1,556
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
46,299
158,465
Tax relating to prior year adjustments recognised in profit or loss
18,308
-
0
Total UK current tax
64,607
158,465
Foreign current tax on profits for the current period
47,847
22,154
Total current tax
112,454
180,619
Deferred tax
Origination and reversal of timing differences
7,462
-
0
Total tax charge
119,916
180,619
Templeton and Partners Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
10
Taxation (continued)
23

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

2023
2022
£
£
Profit before taxation
572,657
1,254,759
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
134,689
238,404
Tax effect of expenses that are not deductible in determining taxable profit
875
(10,959)
Tax effect of income not taxable in determining taxable profit
(240)
-
0
Adjustments in respect of prior years
18,308
-
0
Effect of change in corporation tax rate
(14)
-
Fixed asset differences
(100)
(2,972)
Remeasurement of deferred tax for changes
(98)
2,252
Effect of overseas tax rates
(42,637)
(46,106)
Movement in deferred tax not recognised
9,133
-
Taxation charge
119,916
180,619
Templeton and Partners Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
24
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
783,225
Amortisation and impairment
At 1 January 2023
78,323
Amortisation charged for the year
78,323
At 31 December 2023
156,646
Carrying amount
At 31 December 2023
626,579
At 31 December 2022
704,902
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
12
Tangible fixed assets
Group
Fixtures and fittings
£
Cost
At 1 January 2023
76,343
Additions
11,802
Disposals
(17,996)
At 31 December 2023
70,149
Depreciation and impairment
At 1 January 2023
19,213
Depreciation charged in the year
17,810
Eliminated in respect of disposals
(16,488)
At 31 December 2023
20,535
Carrying amount
At 31 December 2023
49,614
At 31 December 2022
57,130
Templeton and Partners Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
12
Tangible fixed assets (continued)
25
Company
Fixtures and fittings
£
Cost
At 1 January 2023
70,511
Additions
10,276
Disposals
(17,996)
At 31 December 2023
62,791
Depreciation and impairment
At 1 January 2023
18,830
Depreciation charged in the year
16,006
Eliminated in respect of disposals
(16,488)
At 31 December 2023
18,348
Carrying amount
At 31 December 2023
44,443
At 31 December 2022
51,681
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
25
-
0
-
0
11,194
11,094
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
11,094
Additions
100
At 31 December 2023
11,194
Carrying amount
At 31 December 2023
11,194
At 31 December 2022
11,094
Templeton and Partners Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
26
14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,106,160
6,097,832
3,044,049
4,728,818
Amounts owed by group undertakings
1,045,066
800,012
3,087,683
2,841,802
Other debtors
229,751
168,495
-
0
55,800
Prepayments and accrued income
785,398
1,114,001
572,328
940,355
6,166,375
8,180,340
6,704,060
8,566,775
15
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
992,234
1,829,795
639,832
1,371,589
Corporation tax payable
50,232
135,480
46,254
132,627
Other taxation and social security
149,029
100,023
131,410
85,116
Other creditors
204,418
185,120
175,758
178,825
Accruals and deferred income
843,984
930,767
724,866
872,320
2,239,897
3,181,185
1,718,120
2,640,477
16
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
£
£
Short term timing differences
(2,851)
-
Fixed asset timing differences
10,313
-
7,462
-
Liabilities
Liabilities
2023
2022
Company
£
£
Short term timing differences
(2,851)
-
Fixed asset timing differences
10,313
-
7,462
-
Templeton and Partners Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
16
Deferred taxation (continued)
27
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 January 2023
-
-
Charge to profit or loss
7,462
7,462
Liability at 31 December 2023
7,462
7,462

The deferred tax liability set out above is expected to reverse within 12 months and relates to short term timing differences associated with a accelerated capital allowances that are expected to mature within the same period.

17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
29,398
16,918

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.

18
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
19
Reserves
Profit and loss reserves

This reserve relates to the cumulative retained earnings less amounts distributed to shareholders.

 

Foreign exchange reserve

The foreign exchange reserve represents the cumulative movements in foreign exchange on subsidiaries.

Templeton and Partners Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
28
20
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
213,627
305,184
213,627
305,184
Between two and five years
-
9,936
-
9,936
213,627
315,120
213,627
315,120
21
Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £29,398 (2022: £16,918).

 

Contributions totaling £5,905 (2022: £5,759) were payable to the fund at the balance sheet date and are included in creditors.

22
Events after the reporting date

In March 2024, Templeton and Partners Limited entered into an invoice discounting credit facility with Royal Bank of Scotland with an initial limit of £2,500,000.

23
Related party transactions

The Company has taken advantage of the exemption in FRS 102 Section 33.1A to not disclose transactions with wholly owned group entities.

 

The Director is considered to be the key management personnel and his compensation is disclosed in note 7.

24
Controlling party

The immediate and ultimate parent undertaking is Templeton Group Holdings Ltd. The ultimate controlling party is Mr N Ahmad by virtue of his shareholding and directorship.

Templeton and Partners Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
29
25
Subsidiaries

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

Name of undertaking
Registered office
Class of shares
Holding %
Templeton and Partners,
Inc.*
14 Wall Street, 20th
Floor, New York, NY
10005, USA
Ordinary
100
Templeton and Partners
SAS*
250 bis boulevard
Saint-Germain 75007
Paris, France
Ordinary
100
Templeton and Partners
(India) Pvt Ltd*
Embassy Tech Village,
Devarabisanahalli,
Outer Ring Road,
Bangalore, Karnataka
560103, India
Ordinary
100
Templeton and Partners Sp.
z o.o*
Astoria
Przeskok 2
00-032 Warsaw, Poland
Ordinary
100
Templeton and Partners
GmbH**
Badenerstrasse 549,
CH-8048 Zurich,
Switzerland
Ordinary
100
Templeton and Partners
BV**
Weteringschans 165 C,
1017XD Amsterdam,
Netherlands
Ordinary
100
Templeton Recruitment
GmbH**
Prielmayerstrasse 3,
80335 Munich,
Germany
Ordinary
100
Templeton Group BV*
Weteringschans 165 C,
1017XD Amsterdam,
Netherlands
Ordinary
100
Templeton Consulting Ltd*
Templeton House 33-34 Chiswell Street, London, EC1Y 4SF, UK
Ordinary
100

* held directly

** held indirectly

Templeton and Partners Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
30
26
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
452,741
1,074,140
Adjustments for:
Taxation charged
119,916
180,619
Finance costs
782
1,556
Investment income
(60,325)
(15,881)
Loss on disposal of tangible fixed assets
489
3,894
Amortisation and impairment of intangible assets
78,323
78,323
Depreciation and impairment of tangible fixed assets
17,810
9,810
Movements in working capital:
Decrease/(increase) in debtors
2,013,965
(2,207,878)
(Decrease)/increase in creditors
(856,040)
1,457,343
Cash generated from operations
1,767,661
581,926
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