The director presents the strategic report for the period ended 31 December 2023.
The parent company was incorporated on 12 October 2022. The results included in these group financial statements are for the period ended 31 December and include 14 months of consolidated results from Big Fish Group Limited from the date of acquisition on 17 October 2022.
Turnover for the group in the period to 31 December 2023 was £87.98m and gross profit was £1.09m. The operating loss was £392k. Net liabilities at the balance sheet date were £15k.
The key performance indicators are turnover and gross profit.
2023
Turnover £87.98m
GP £1.095m
GP% 1.24%
We operate a robust corporate governance programme designed to manage strategic and tactical risks and avoid any impact on the business where it is possible to do so. Risks are identified and improvements are made and controls are put in place on a regular basis to mitigate this risk.
We have a strong senior leadership management team who all have vast amounts of experience within the sector and collaboratively support the owners in growing the business, exceeding targets, and achieving continued growth. They are also constantly training and developing newer hires.
We have implemented risk controls to identify any areas of the business which may be affected by operational risk, liquidity risk, credit risk, legislation risk or risk of fraud. If we are identifying one of these areas as being potentially pressurised, we prioritise our efforts to remove any risk where necessary or mitigate the risk if we are not able to completely remove.
The board promotes the success of the group for the benefit of all stakeholders that we recognise are key to the long-term future success of our business while considering the impact of these decisions. Even with this being the case, some decisions may adversely affect one or more of these groups, but we always look to ensure that those impacted are treated fairly. Our key stakeholders are:
Clients
Our client partners and their contractors are the main focus of the business and are at the heart of everything we do. With the owners having 28 years of combined payroll experience, they are aligned with their goals and lead a passionate team of experts who all work together to maintain the service levels which go above and beyond other competitors.
People
The people within our business are what makes Big Fish the business it is today and attribute to the success and growth in numbers. They consistently deliver the levels of service week on week. The business benefits from employing highly experienced industry experts who are adequately qualified to deliver the service our clients can expect to receive from us. Culture is a huge thing within our business as whilst professionalism is important, we recognise & celebrate success by hosting regular staff events to boost morale and importantly promote team bonding.
Partners and Regulators
We abide by the code of all bodies that we are attributed to in our sector and are constantly reviewing our compliance processes to ensure we are fully compliant with HMRC guidelines.
We also work closely with respected tax advisors to ensure we are up to date with legislative changes and are then able to share this technical knowledge with our clients.
Society and Community
We work within the local community to support young workers through apprenticeships and college tuition to allow them to work while gaining qualifications. We also recognise our environmental and corporate social responsibility to the local communities and endeavour to operate safely and ethically.
On behalf of the board
The director presents her annual report and financial statements for the period ended 31 December 2023.
The results for the period are set out on page 11.
Ordinary dividends were paid amounting to £101,218. The director does not recommend payment of a final dividend.
The director who held office during the period and up to the date of signature of the financial statements was as follows:
The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.
The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The group does not consider it necessary to use any financial products to mitigate this risk.
Investments of cash surpluses and borrowings are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis.
The Director is committed to fostering a positive work environment that values employee engagement, well-being, and development. Engaging our employees is essential to the group's success and aligns with our core values of collaboration, innovation, and integrity. Our employee engagement strategy focuses on creating a supportive and inclusive workplace, empowering employees to contribute meaningfully to the organisation.
Communication and Transparency
We prioritise open communication and transparency to ensure employees are informed about business decisions and future plans. Regular updates, quarterly town hall meetings, and department briefings provide clarity on our strategic direction and allow employees to voice questions and concerns.
Our employee communication channels include an internal newsletter, email updates, and a digital platform that enables employees to stay connected across teams and locations.
Professional Development and Growth
Employee growth is a top priority, with opportunities for training, professional development, and career advancement. This period, we implemented a learning and development program offering skill-building workshops, leadership training, and access to online courses.
We also introduced mentorship programs, pairing employees with mentors from across the organisation to support skill development and career progression
.
Recognition and Rewards
Recognising and rewarding employees’ contributions is key to our engagement efforts. Our employee recognition program celebrates employees who demonstrate exceptional performance, innovation, and alignment with company values.
This program includes monthly and annual awards and peer-nominated recognitions, which have proven successful in boosting morale and motivating employees.
Workplace Well-being and Flexibility
The Director has placed a strong emphasis on workplace well-being, offering support resources such as mental health workshops, counselling services, and wellness programs. Flexible working hours and remote work options are available, ensuring a healthy work-life balance and allowing employees to tailor their work environment to their needs.
Our well-being initiatives have been enhanced this period by the addition of a wellness reimbursement program and regular well-being check-ins.
Employee Feedback and Engagement Surveys
Understanding the needs and concerns of our employees is essential to fostering engagement. We conduct an annual employee engagement survey, allowing us to measure satisfaction levels, gather feedback, and identify areas for improvement.
The results of these surveys are reviewed by senior management, and action plans are implemented to address key themes. This period, survey results highlighted a desire for more cross-department collaboration, which has led to the formation of cross-functional teams to work on key projects.
Diversity and Inclusion Initiatives
The Director is committed to creating an inclusive work environment that respects diversity and encourages contributions from all backgrounds. This period, we launched our Diversity and Inclusion Program to promote awareness, reduce bias, and celebrate the unique perspectives each employee brings.
We have also increased our recruitment efforts to attract talent from diverse backgrounds and ensure our workforce reflects the communities we serve.
Suppliers
The director understands the importance of maintaining ethical and mutually beneficial relationships with our suppliers, as they are integral to the quality and continuity of our operations. In our dealings with suppliers, we have emphasised the following:
Fair and Prompt Payments: We are committed to paying our suppliers fairly and on time, as this fosters trust and enables them to plan effectively for the future.
Collaboration and Transparency: By sharing forecasts and being transparent about our expectations, we build stronger partnerships. This year, we have increased collaboration with our key suppliers to ensure a resilient supply chain.
Sustainable Practices: As part of our sustainability commitment, we encourage suppliers to adopt environmentally responsible practices. We prioritise suppliers who demonstrate alignment with our sustainability values, promoting an ethical supply chain.
Impact on Decision-Making: When choosing suppliers, the director has given priority to those with strong ethical standards and a commitment to sustainability. This approach supports our broader corporate responsibility goals and helps mitigate supply chain risks.
Customers
Building lasting relationships with our customers is central to our business philosophy. The director has focused on enhancing customer satisfaction and delivering value through:
Customer-Centric Service: We actively listen to customer feedback and make continuous improvements to our products and services to meet their needs and expectations. This year, we launched new channels for customer support.
Transparency and Trust: The director ensures that our customer communications are transparent, helping to build trust and long-term loyalty.
Innovation and Quality: We continuously invest in product innovation to provide high-quality solutions that anticipate our customers’ evolving needs. This has been reflected in our strategic decision to allocate additional resources to our research and development team.
Impact on Decision-Making: Customer feedback and market trends have informed several principal decisions, including product launches and service enhancements, which have contributed to improved customer satisfaction and retention rates.
Other Stakeholders (Community, Regulators, and Industry Partners)
As a responsible corporate company, we recognise the importance of our broader impact on the community, regulators, and industry stakeholders. The director has engaged in several initiatives to foster these relationships, including:
Compliance and Industry Standards: The director maintains a proactive approach to regulatory compliance, regularly reviewing our policies to meet or exceed industry standards. This ensures that we uphold the integrity and reputation of our business.
Industry Collaboration: By participating in industry associations and collaborating with partners, we contribute to sector-wide improvements and stay informed of best practices.
Impact on Decision-Making: These relationships have influenced our commitment to ethical practices, compliance initiatives, reinforcing our role as a responsible industry leader.
The director is dedicated to fostering strong and supportive relationships with our suppliers, customers, and other stakeholders. These relationships are essential to the company’s resilience and long-term success. Through a consistent focus on collaboration, transparency, and ethical practices, the director is confident that our approach will continue to create value for all stakeholders and support the company’s strategic objectives.
We expect to see growth in 2024 due to our proven high levels of customer service. Key hires have been made within the business to support our growth and maintain our commitment to both our agency partners and temporary workers.
JS. Audit Limited 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.
As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
The group 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.
We have audited the financial statements of Big Fish Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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).
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 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.
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 strategic report and the director's report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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.
As explained more fully in the director's responsibilities statement included within the director's report, 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.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities and 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.
Based on our understanding of the company and sector, we identified that the principal risks of non-compliance with laws and regulations related to, but was not limited to, the Companies Act 2006, UK tax, employment, pension and health and safety legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were completeness of income as well as those related to management bias in accounting estimates and judgements and the risk of fraud in revenue recognition.
Our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
enquiring of management about actual and potential litigation and claims, their policies and procedures to prevent and detect fraud as well as whether they have knowledge of any actual, suspected or alleged fraud;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
reading minutes of meetings of those charged with governance;
reviewing accounting estimates, judgements and decisions made by management, in particular in respect of the useful economic lives for tangible assets, including reviewing profit and losses on disposals as an indicator of appropriateness of useful economic lives and bad debt provisions;
obtaining an understanding of provisions and holding discussions with management to understand the basis of recognition or non-recognition of tax provisions; and
in addressing the risk of fraud through management override of controls: testing the appropriateness of journal entries; assessing whether the accounting estimates, judgements and decisions made by management are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The notes on pages 17 to 31 form part of these financial statements.
The notes on pages 17 to 31 form part of these financial statements.
The notes on pages 17 to 31 form part of these financial statements.
As permitted by s408 of the 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 £101,218.
The notes on pages 17 to 31 form part of these financial statements.
The notes on pages 17 to 31 form part of these financial statements.
The notes on pages 17 to 31 form part of these financial statements.
Big Fish Group Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Suite 7 Frodsham Business Centre, Bridge Lane, Frodsham, Cheshire, WA6 7FZ.
The group consists of Big Fish Group Holdings Limited and all of its subsidiaries.
The financial statements present the results for a period exceeding 12 months, being that from incorporation on 12 October 2022 to 31 December 2023. This is the first year of accounts for the group and therefore no comparatives are shown for the group or company.
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 £.
The financial statements have been prepared under the historical cost convention. 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:
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 financial instruments not measured at fair value; 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 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Big Fish Group Holdings 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.
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
The director notes that the financial statements show a difficult period with a loss of £363,850 and the group balance sheet being in a liability position. The principal reason for this was due to larger than budgeted overheads with a view to continued expansion, along with suffering construction markets and the economic climate of the sector in Q4. With a view to this the director has produced a 12-month rolling budget and cash flow from the date of this report that shows an improvement in profit, a return to a net asset position on the balance sheet and sufficient cash flow for the period.
This will be achieved by moderate top line growth in sales and gross profit and a significant decrease in overheads vs 2023. With this focus and a commitment to the measures outlined above the director feels that the group should be assessed on the going concern basis. The group has also invested heavily in staff, and gained multiple market leading accreditations such as FCSA and SafeRec to ensure the business continues to grow.
Turnover represents the fair value of consideration received or receivable from the provision of agency staff and CIS contractors. Fair value reflects the amount agreed in the form of contractual charges for each type of service. Fee income is stated net of amounts collected on behalf of third parties such as sales taxes, goods and service taxes and value added taxes.
Turnover is recognised to the extent that the group obtains the right to consideration in exchange for its performance. Right to consideration is based on the company confirming that the work was performed by the contractors.
Hours worked by contractors during the year which at year-end have not yet been invoiced to the group are recognised as fee income and accrued within the balance sheet.
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 profit and loss account.
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.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
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 balance sheet 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, which include debtors and cash and bank balances, 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.
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.
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.
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, 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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
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.
The tax expense represents the sum of the tax currently payable and deferred 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 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 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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
The critical judgment identified by the director is:
It is management's judgement that the group acts as a principal in arrangements when invoicing on behalf of its contractors (who are engaged by the group on permanent employment contracts) to recruitment agencies. As the employment and other risks are borne by the group in holding the contractors as their employees the group is considered to be a principal in the arrangement in line with FRS 102 section 23.21. Accordingly, turnover represents the amount invoiced and collected from recruitment agencies for fulfilling assignments at their end clients using employees of the group, including arrangements where no commission is directly receivable by the group. If the group were considered to be acting as an agent revenue would represent commission receivable relating to supply of temporary workers and would not include remuneration costs of temporary workers. Whilst the different treatment would impact the quantum of revenue and cost of sales for contracted employees it would have no effect on the reported earnings before interest, tax, depreciation or amortisation of the group.
Turnover was only provided in the united Kingdom.
The average monthly number of persons (including directors) employed by the group and company during the period was:
Their aggregate remuneration comprised:
The actual (credit)/charge for the period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:
A UK corporation tax rate of 25% was announced in the Chancellor's Budget of 3 March 2021 and applied from 1 April 2023. Deferred tax has been calculated at this rate.
Details of the company's subsidiaries at 31 December 2023 are as follows:
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax liability set out above is expected to reverse within 3 years and relates to accelerated capital allowances that are expected to mature within the same period.
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.
At the balance sheet date, the group and company had unpaid pension contributions amounting to £25,493
Represents cumulative profits and losses net of distributions to shareholders.
Merger reserve
This represents the difference between the nominal and fair value of shares issued on acquisition.
On 17 October 2022 the group acquired 100 percent of the issued share capital of Big Fish Group Limited.
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:
The remuneration of key management personnel is as follows.
Dividends totalling £50,609 were paid in the period in respect of shares held by the group's director.