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Registration number: 04012805

Keen Thinking Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2024

 

Keen Thinking Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11 to 19

 

Keen Thinking Limited

Company Information

Directors

T Atkinson

D Thornhill

Simplicity Global Limited

Company secretary

T Atkinson

Registered office

The Aspen Building
Vantage Point Business Village
Mitcheldean
Gloucestershire
GL17 0DD

Auditors

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

Keen Thinking Limited

Strategic Report for the Year Ended 31 March 2024

The directors present their strategic report for the year ended 31 March 2024.

Principal activity

The principal activity of the company is that of providing funding and accounting services to recruitment agencies and facilitating the provision of temporary staff on behalf of recruitment agencies.

Fair review of the business

The directors consider the results for the year to be satisfactory.

The company has continued to improve its infrastructure with a view to increasing its market share. The directors are confident that their strategy will continue to give improved results for the year.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Turnover

£ '000

5,922

5,863

Gross profit margin

%

63

63

Operating profit margin

%

19

22

Current assets as a percentage of current liabilities

%

113

113

Principal risks and uncertainties

The management of the company and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to the general economic climate, and competition from other providers.

The company is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through credit control procedures.

Going Concern

In accordance with Financial Reporting Council's 'Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2006' the directors of all companies are now required to provide disclosures regarding the adoption of the going concern basis of accounting.

The company continues to enjoy the full support of its funders. It has more than sufficient financial resources available and is generating both profit and cash. The directors have prepared forecasts for the next 12 months and these indicate that the company is well positioned to enjoy continued growth and profitability, due to the actions initially taken. The directors believe that the company has more than sufficient resources to continue for the foreseeable future and have therefore continued to adopt the going concern basis for the preparation of the financial statements.

Approved by the Board on 21 October 2024 and signed on its behalf by:


D Thornhill
Director

 

Keen Thinking Limited

Directors' Report for the Year Ended 31 March 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Directors of the company

The directors who held office during the year were as follows:

T Atkinson

D Thornhill

Simplicity Global Limited (appointed 30 June 2023)

Future developments

The company has continued to improve its infrastructure, as set out in the Strategic Report. The directors are confident that their strategy will give improved results for the year ending 31 March 2024.

Research and development

The group undertakes an element of research and development in development of new software products.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

Approved by the Board on 21 October 2024 and signed on its behalf by:


D Thornhill
Director

 

Keen Thinking Limited

Statement of Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards has been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

 

Keen Thinking Limited

Independent Auditor's Report to the Members of Keen Thinking Limited

Opinion

We have audited the financial statements of Keen Thinking Limited (the 'company') for the year ended 31 March 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 March 2024 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

 

Keen Thinking Limited

Independent Auditor's Report to the Members of Keen Thinking Limited

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors’ remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit; 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' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 4, 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.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

 

Keen Thinking Limited

Independent Auditor's Report to the Members of Keen Thinking Limited

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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 are to become aware of it.

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

Use of this report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.





Ryan Hancock (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court
Staverton
Cheltenham
GL51 0UX

23 October 2024

 

Keen Thinking Limited

Profit and Loss Account for the Year Ended 31 March 2024

Note

2024
 £

2023
 £

Turnover

3

5,921,776

5,863,145

Cost of sales

 

(2,197,329)

(2,192,026)

Gross profit

 

3,724,447

3,671,119

Administrative expenses

 

(2,608,158)

(2,359,749)

Operating profit

4

1,116,289

1,311,370

Income from interest in partnership

6

12,448

-

Interest payable and similar charges

7

(1,020,015)

(820,837)

Profit before tax

 

108,722

490,533

Taxation

10

(27,792)

533

Profit for the financial year

 

80,930

491,066

The above results were derived from continuing operations.

The company has no other comprehensive income for the year.

 

Keen Thinking Limited

(Registration number: 04012805)
Balance Sheet as at 31 March 2024

Note

2024
 £

2023
 £

Fixed assets

 

Intangible assets

11

170,670

-

Tangible assets

12

31,554

22,909

Investments

13

72,888

60,440

 

275,112

83,349

Current assets

 

Debtors

14

20,170,581

21,707,375

Cash at bank and in hand

 

329,508

355,958

 

20,500,089

22,063,333

Creditors: Amounts falling due within one year

15

(18,131,535)

(19,607,629)

Net current assets

 

2,368,554

2,455,704

Total assets less current liabilities

 

2,643,666

2,539,053

Creditors: Amounts falling due after more than one year

15

(12,231)

(22,435)

Provisions for liabilities

10

(37,744)

(3,857)

Net assets

 

2,593,691

2,512,761

Capital and reserves

 

Called up share capital

17

189

189

Capital redemption reserve

167,511

167,511

Profit and loss account

2,425,991

2,345,061

Total equity

 

2,593,691

2,512,761

Approved and authorised by the Board on 21 October 2024 and signed on its behalf by:
 


D Thornhill
Director

 

Keen Thinking Limited

Statement of Changes in Equity for the Year Ended 31 March 2024

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 April 2022

189

167,511

1,853,995

2,021,695

Profit for the year

-

-

491,066

491,066

At 31 March 2023

189

167,511

2,345,061

2,512,761

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 April 2023

189

167,511

2,345,061

2,512,761

Profit for the year

-

-

80,930

80,930

At 31 March 2024

189

167,511

2,425,991

2,593,691

 

Keen Thinking Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
The Aspen Building
Vantage Point Business Village
Mitcheldean
Gloucestershire
GL17 0DD
United Kingdom

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Name of parent of group

These financial statements are consolidated in the financial statements of Simplicity Global Limited.

The financial statements of Simplicity Global Limited may be obtained from the company's registered office.

Going concern

Having implemented a full business review and restructure the directors believe that the company has more than sufficient resources to continue for the foreseeable future and therefore should continue to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

 

Keen Thinking Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Revenue recognition

Turnover represents commissions and fees receivable, net of value added tax, for the provision of finance and administration services.

Fee income represents revenue earned under a wide variety of administrative services and for the provision of finance. Revenue is recognised at the point where the services provided are processed and completed.

Tax

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

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

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Intangible assets

The company capitalises costs related to the purchase of software developed by third parties. These costs include the purchase price and any directly attributable costs necessary to prepare the software for its intended use. Expenditure incurred after the software is ready for use, such as maintenance and training costs, are expensed as incurred. Capitalised software costs are amortised on a straight-line basis over their estimated useful life. The company assesses the carrying value of capitalised software costs for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Software development costs

over 4 years

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

25% Straight-line basis

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

 

Keen Thinking Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
 
Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

 

Keen Thinking Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2024
£

2023
£

Rendering of services

5,921,776

5,863,145

The total turnover of the company has been derived from its principal activity wholly undertaken in the UK.

 

4

Operating profit

Arrived at after charging/(crediting):

2024
 £

2023
 £

Depreciation expense

12,983

13,601

Research and development cost

95,235

218,522

Foreign exchange losses/(gains)

26,071

(2,861)

Operating lease expense - property

206,555

208,158

 

5

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

12,500

12,000


 

 

6

Other interest receivable and similar income

2024
£

2023
£

Income from interest in partnerships

12,448

-

 

Keen Thinking Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

 

7

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

1,020,015

820,837

 

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

1,725,458

1,569,852

Social security costs

173,603

168,302

Pension costs, defined contribution scheme

32,398

4,817

1,931,459

1,742,971

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
 No.

2023
 No.

Administration and support

60

54

 

9

Key Management remuneration

The key management remuneration for the year was as follows:

2024
£

2023
£

Remuneration

196,524

208,979

Contributions paid to money purchase schemes

1,114

70,273

197,638

279,252

 

10

Taxation

Tax credited in the profit and loss account

2024
 £

2023
 £

Current taxation

UK corporation tax

-

89,612

UK corporation tax adjustment to prior periods

(6,095)

(92,750)

(6,095)

(3,138)

Deferred taxation

Arising from origination and reversal of timing differences

33,887

2,605

Tax expense/(receipt) in the income statement

27,792

(533)

 

Keen Thinking Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 25% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

108,722

490,533

Corporation tax at standard rate

27,181

93,201

Effect of expense not deductible in determining taxable profit (tax loss)

(512)

(2,731)

Decrease in UK and foreign current tax from adjustment for prior periods

(6,095)

(92,750)

Tax increase from effect of capital allowances and depreciation

-

6,125

Tax increase from other short-term timing differences

-

2,605

Tax decrease arising from group relief

-

(6,983)

Other tax effects for reconciliation between accounting profit and tax expense (income)

7,218

-

Total tax charge/(credit)

27,792

(533)

Deferred tax

Deferred tax assets and liabilities

2024

Liability
£

Fixed asset timing difference

37,744

37,744

2023

Liability
£

Fixed asset timing difference

3,857

3,857

 

11

Intangible assets

Software development costs
 £

Cost or valuation

Additions acquired separately

170,670

At 31 March 2024

170,670

Carrying amount

At 31 March 2024

170,670

 

Keen Thinking Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

 

12

Tangible assets

Furniture, fittings and equipment
 £

Cost

At 1 April 2023

212,420

Additions

21,628

At 31 March 2024

234,048

Depreciation

At 1 April 2023

189,511

Charge for the year

12,983

At 31 March 2024

202,494

Carrying amount

At 31 March 2024

31,554

At 31 March 2023

22,909

 

13

Investments

Interest in partnerships

£

Cost

At 1 April 2023

60,440

Profit share

12,448

At 31 March 2024

72,888

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2024

2023

Associates

Infinity Skills LLP

England and Wales

Designated member

50%

50%

 

     

Recruitment Staffing Solutions LLP

England and Wales

Designated member

50%

50%

 

     
 

Keen Thinking Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

 

14

Debtors

2024
 £

2023
 £

Amounts owed by related parties

19

1,391,995

1,796,137

Other debtors

 

18,685,519

19,805,770

Prepayments

 

55,074

105,468

Corporation tax asset

 

37,993

-

   

20,170,581

21,707,375

Less non-current portion

 

(40,017)

(40,017)

Total current trade and other debtors

 

20,130,564

21,667,358

 

15

Creditors

2024
 £

2023
 £

Due within one year

Loans and borrowings

13,157,926

13,854,397

Trade creditors

20,369

17,092

Social security and other taxes

161,172

849,877

Other creditors

4,659,277

4,581,329

Accrued expenses

132,791

215,322

Corporation tax liability

-

89,612

18,131,535

19,607,629

Due after one year

Loans and borrowings

12,231

22,435

Loans and borrowings

Loans and borrowings relate to an invoice discounting facility which is secured over the company's other debtors.

Included in loans and borrowings is £22,450 (2023 - £32,407) in relation to the Coronavirus Bounce Back Loan Scheme. The amount due in under one year was £10,219 (2023 - £9,972) and the amount due in over one year was £12,231 (2023 - £22,435).

 

16

Pension and other schemes

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £32,398 (2023 - £4,817).

 

17

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary shares of £1 each

189

189

189

189

         
 

Keen Thinking Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

 

18

Obligations under leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

130,715

127,206

Later than one year and not later than five years

354,473

524,170

485,188

651,376

The amount of non-cancellable operating lease payments recognised as an expense during the year was £206,555 (2023 - £208,158).

 

19

Related party transactions

Summary of transactions with key management

Key management personnel are considered to be the directors of the company and key management personnel compensation is disclosed in note 9 to the financial statements.
 

The company has taken advantage of the exemption from disclosing transactions with other members of the group where there is 100% ownership.

 

20

Parent and ultimate parent undertaking

The parent of the largest group in which these financial statements are consolidated is Simplicity Global Limited, incorporated in England and Wales.