Company Registration No. 05107940 (England and Wales)
Parallel Consulting Limited
Annual report and financial statements
for the year ended 31 December 2023
Parallel Consulting Limited
Company information
Directors
S J Lamport-Went
I A Al-Tarafi
Secretary
S J Lamport-Went
Company number
05107940
Registered office
The Warehouse
212 New King's Road
London
SW6 4NZ
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
Parallel Consulting Limited
Contents
Page
Directors' report
1 - 2
Independent auditor's report
3 - 6
Profit and loss account
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 20
Parallel Consulting Limited
Directors' report
For the year ended 31 December 2023
1
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of the provision of recruitment services.
Results and dividends
The loss for the year, after taxation, amounted to £100,903 (2022: profit for the year, after taxation, amounted to £59,616). Dividends totalling £270,000 (2022: £400,000) were paid during the year. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
S J Lamport-Went
I A Al-Tarafi
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Auditor
Saffery LLP have expressed their willingness to continue in office.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).
Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Parallel Consulting Limited
Directors' report (continued)
For the year ended 31 December 2023
2
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 company’s auditor 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 company’s auditor is aware of that information.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
I A Al-Tarafi
Director
18 October 2024
Parallel Consulting Limited
Independent auditor's report
To the members of Parallel Consulting Limited
3
Opinion
We have audited the financial statements of Parallel Consulting Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the balance sheet, the statement of changes in equity 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:
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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Parallel Consulting Limited
Independent auditor's report (continued)
To the members of Parallel Consulting Limited
4
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has 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 directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Parallel Consulting Limited
Independent auditor's report (continued)
To the members of Parallel Consulting Limited
5
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 company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, 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 company by discussions with directors and by updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the 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 financial statement disclosures. We reviewed the 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 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.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
Parallel Consulting Limited
Independent auditor's report (continued)
To the members of Parallel Consulting Limited
6
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Jamie Cassell
Senior Statutory Auditor
For and on behalf of Saffery LLP
18 October 2024
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
Parallel Consulting Limited
Profit and loss account
For the year ended 31 December 2023
7
2023
2022
Notes
£
£
Turnover
3
9,461,623
10,211,668
Cost of sales
(6,705,599)
(7,077,704)
Gross profit
2,756,024
3,133,964
Administrative expenses
(4,843,006)
(5,024,351)
Other operating income
2,001,029
1,963,025
Operating (loss)/profit
(85,953)
72,638
Interest receivable and similar income
7
1,853
Interest payable and similar expenses
8
(13,398)
(1,057)
(Loss)/profit before taxation
(99,351)
73,434
Tax on (loss)/profit
9
(1,552)
(13,818)
(Loss)/profit for the financial year
(100,903)
59,616
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Parallel Consulting Limited
Balance sheet
As at 31 December 2023
8
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
75,514
10,745
Investments
12
75,514
10,745
Current assets
Debtors
13
2,782,707
2,935,216
Cash at bank and in hand
223,656
591,328
3,006,363
3,526,544
Creditors: amounts falling due within one year
14
(1,452,533)
(1,591,861)
Net current assets
1,553,830
1,934,683
Total assets less current liabilities
1,629,344
1,945,428
Creditors: amounts falling due after more than one year
15
(54,819)
Net assets
1,574,525
1,945,428
Capital and reserves
Called up share capital
17
1,000
1,000
Profit and loss reserves
1,573,525
1,944,428
Total equity
1,574,525
1,945,428
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 18 October 2024 and are signed on its behalf by:
I A Al-Tarafi
Director
Company Registration No. 05107940
Parallel Consulting Limited
Statement of changes in equity
For the year ended 31 December 2023
9
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
1,000
2,284,812
2,285,812
Year ended 31 December 2022:
Profit and total comprehensive income
-
59,616
59,616
Dividends
10
-
(400,000)
(400,000)
Balance at 31 December 2022
1,000
1,944,428
1,945,428
Year ended 31 December 2023:
Loss and total comprehensive income
-
(100,903)
(100,903)
Dividends
10
-
(270,000)
(270,000)
Balance at 31 December 2023
1,000
1,573,525
1,574,525
Parallel Consulting Limited
Notes to the financial statements
For the year ended 31 December 2023
10
1
Accounting policies
Company information
Parallel Consulting Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Warehouse, 212 New King's Road, London, SW6 4NZ.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This 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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
Parallel Consulting Limited is a wholly owned subsidiary of Parallel Group Limited and the results of Parallel Consulting Limited are included in the consolidated financial statements of Parallel Group Limited which are available from The Warehouse, 212 New King's Road, London, SW6 4NZ.
1.2
Going concern
The Directors are regularly reviewing the financial information on the business and have prepared detailed forecasts that have been sensitised to reflect the uncertainty in the market place. Even with the forecasts sensitised, the company has enough funds through its current bank balance and relevant funding lines to continue in operation for a period of greater than 12 months. The directors are also managing the business carefully looking at margins, recruitment hires and other business operations to ensure the business is fit for purpose for the future. Therefore the directors have elected to continue to prepare the financial statements on the going concern basis.true
Parallel Consulting Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
11
1.3
Turnover
Turnover shown in the profit and loss account represents the sales value of all services, whether invoiced or accrued, delivered during the year, exclusive of value added tax. Sales are recognised at the point at which the Group has fulfilled its contractual obligations to the client.
Turnover in respect of temporary placements is recognised when the service has been rendered and accepted by the client.
Turnover in respect of contingent permanent fees is recognised when the company has fulfilled its contractual obligations in accordance with the underlying contracts. Depending on the contract, this is either on the start date of the candidates' employment, or when a candidate accepts an offer of employment and a start date has been determined.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
20% straight line
Fixtures and fittings
20% straight line
Computer equipment
33.3% straight line
Motor vehicles
33.3% straight line
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 credited or charged to profit or loss.
1.5
Investments
Investments are stated at cost, being purchase price, less provision for impairment.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.7
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.
Parallel Consulting Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
12
1.8
Financial instruments
The company 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 company's balance sheet when the company 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.
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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies 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.
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.
1.9
Equity instruments
Equity instruments issued by the company 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 company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Parallel Consulting Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
13
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.
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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 leases asset are consumed.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Parallel Consulting Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
14
2
Critical accounting judgements and key sources of estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
In preparing these financial accounts the Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom exactly equal the related actual results. In the opinion of the Director, as at the date of signing these financial statements, there are no changes to those estimates and underlying assumptions in the application of accounting policies that are considered to be a material adjustment to the carrying value of assets and liabilities.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Intercompany recharges
During the year, the company received income in the form of recharges from its associated companies. Management use a detailed transfer pricing calculation and intercompany contract to form the basis of these recharges. The percentage recharges are conducted based on a usage basis (or anticipated usage) and per the transfer pricing agreement this ranges from 2% to 3%.
Recoverability of intercompany balances
Management regularly assess balances due between group entities and whether these are recoverable. Where it is considered that the future cash flows of these debts are less than the carrying amount in the individual company financial statements, appropriate provisions are made against these balances to reflect the recoverability of the asset.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Recruitment services
9,461,623
10,211,668
2023
2022
£
£
Other significant revenue
Interest income
-
1,853
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
473,555
751,741
Rest of World
8,988,068
9,459,927
9,461,623
10,211,668
Parallel Consulting Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
15
4
Other operating income
2023
2022
£
£
Recharges of expenditure to related entities
2,001,029
1,963,025
2,001,029
1,963,025
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
65
63
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
3,087,163
3,118,134
Social security costs
344,514
374,851
Pension costs
54,897
91,952
3,486,574
3,584,937
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services (including P11D's)
31,409
28,848
Company pension contributions to defined contribution schemes
-
40,000
7
Interest receivable and similar income
2023
2022
£
£
Interest receivable and similar income includes the following:
Interest receivable from group companies
1,853
Parallel Consulting Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
16
8
Interest payable and similar expenses
2023
2022
£
£
Interest payable and similar expenses includes the following:
Other Interest payable
10,520
1,057
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
15,000
Adjustments in respect of prior periods
1,552
(1,182)
Total current tax
1,552
13,818
The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
(Loss)/profit before taxation
(99,351)
73,434
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(18,877)
13,952
Tax effect of expenses that are not deductible in determining taxable profit
5,300
4,929
Tax effect of utilisation of tax losses not previously recognised
13,577
Adjustments in respect of prior years
1,552
(1,182)
Under provided in respect of current year
(3,881)
Taxation charge for the year
1,552
13,818
10
Dividends
2023
2022
£
£
Interim paid
270,000
400,000
Parallel Consulting Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
17
11
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
229,921
112,714
74,831
417,466
Additions
90,231
90,231
At 31 December 2023
229,921
112,714
74,831
90,231
507,697
Depreciation and impairment
At 1 January 2023
229,921
109,440
67,360
406,721
Depreciation charged in the year
3,274
7,471
14,717
25,462
At 31 December 2023
229,921
112,714
74,831
14,717
432,183
Carrying amount
At 31 December 2023
75,514
75,514
At 31 December 2022
3,274
7,471
10,745
Motor vehicles include amount in respect of assets held on hire purchase with a net book value of £75,514 (2022: £nil). The depreciation charge for the year in relation to these amounted to £14,717 (2022: £nil).
12
Fixed asset investments
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 January 2023 & 31 December 2023
276,579
Impairment
At 1 January 2023 & 31 December 2023
276,579
Carrying amount
At 31 December 2023
-
At 31 December 2022
-
Parallel Consulting Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
18
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,379,463
1,483,410
Amounts owed by group undertakings
1,095,128
969,326
Amounts owed by associated undertakings
67,353
276,810
Other debtors
240,763
205,670
2,782,707
2,935,216
Trade debtors includes contracted income receivable, both invoiced and un-invoiced at the year end. The amount of accrued income included in trade debtors is £529.333 (2022: £355,869).
14
Creditors: amounts falling due within one year
2023
2022
£
£
Obligations under finance leases
16
4,100
Trade creditors
771,781
745,235
Corporation tax
15,000
Other taxation and social security
101,116
171,774
Other creditors
461,897
539,804
Invoice discounting
113,639
120,048
1,452,533
1,591,861
The Company has in place an auto-enrol pension scheme as required by law. The Company also operates a defined contribution pension scheme. The total pension scheme charge for the period amounted to £54,897 (2022: £92,792) and at the year end the Company had unpaid pension contributions of £7,433 (2022: £9,555).
Trade creditors include amounts that were both invoiced and un-invoiced at the year end. The amount of un-invoiced costs included in trade creditors is £141,384 (2022: £241,610).
The invoice discounting facility with Barclays Bank is secured by two fixed and floating charges and a debenture on all the assets of the Company.
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
16
54,819
Parallel Consulting Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
19
16
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
9,584
In two to five years
62,191
71,775
Less: future finance charges
(12,856)
58,919
Finance lease payments represent rentals payable by the company for motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
17
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
1,000 shares of £1 each
1,000
1,000
Ordinary shares have full rights in the company with respect to voting.
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Within one year
424,650
424,650
Between two and five years
318,487
743,137
743,137
1,167,787
Parallel Consulting Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
20
19
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Amounts recharged during the year
Dividends
2023
2022
2023
2022
£
£
£
£
Entities with control, joint control or significant influence over the company
2,001,029
1,963,025
270,000
400,000
Dividends in the year were attributable to the immediate and ultimate parent company Parallel Group Limited.
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
1,162,481
1,246,136
No guarantees have been given or received and no interest is charged on these balances.
20
Parent company
At the balance sheet date the immediate and ultimate parent company was Parallel Group Limited, a company registered in England and Wales. The address of Parallel Group Limited is The Warehouse, 212 New King’s Road, London, United Kingdom, SW6 4NZ.
21
Ultimate Control
The ultimate controlling parties are S J Lamport-Went and I A Al-Tarafi.
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