TOTAL RECRUIT LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2024
Company Registration No. 12401218 (England and Wales)
TOTAL RECRUIT LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
TOTAL RECRUIT LTD
COMPANY INFORMATION
Directors
Mr C C Vayisoglu
Miss T L Oxley
Company number
12401218
Registered office
50 Northgate
Wakefield
WF1 3AN
Auditor
Azets Audit Services
Carlton House
Grammar School Street
Bradford
BD1 4NS
Bankers
HSBC Bank PLC
Carmel House
49-63 Fargate
Sheffield
S1 2HD
TOTAL RECRUIT LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 30 March 2024.
Fair review of the business
The company is an independent recruitment agency set-up in early 2020 by the directors who have a vast knowledge of the recruitment industry. The company specialises in bespoke solutions for the industrial sectors, such as food production, warehousing, distribution and manufacturing.
The directors understand the business and the ever-changing markets in which it operates. The strategy set out by the directors is intended to provide success in the long term whilst keeping employee welfare and relationships with it customers as the company's fundamentals in the day to day management of business.
Description of principal risks and uncertainties
The principal risks and uncertainties that affects the company at present is the volatile and variable requirements of the customers and the challenges faced with filling vacancies with the right candidate.
The supply of labour has remained at steady levels throughout the year and as a result of the company investing vastly in development of their recruitment system and internal processes this has supported long term relationships with customers being agreed.
Anaysis of development and performance
During the year the company has made investment in securing better premises for recruiting within a city centre. The directors believe this investment will reward more availability of labour for whom can be recruited quickly enabling them to meet demands of its growing customer base. The bespoke internal recruitment software along with vast availability will offer further opportunities for the business to secure new client relationships and increase market sectors.
A more streamlined administration process which centralises some of the recruitment processes, has allowed internal recruiters to focus on business development and strengthening client relationships. The directors believe the company is in a strong position at the year end and remain confident that with continued development of these areas increase its overall growth and profitability next year.
Analysis based on key performance indicators
The directors consider the main financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, gross profit margin and return on capital employed.
Turnover for the period was £10,588,211 (2023 - £11,194,422).
Gross profit margin achieved in the period was 10.39% (2023 - 10.36%).
Overall operating profit before tax was £103,279 (2023 - £142,661).
Return on capital employed for the period was 40.98% (2023 - 44.61%), calculated as profit after tax divided by net assets.
The directors are satisfied with these ratios and the company's performance during the period.
Mr C C Vayisoglu
Director
30 October 2024
TOTAL RECRUIT LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 MARCH 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 March 2024.
Principal activities
The principal activity of the company was that of a temporary recruitment agency.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £161,250. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr C C Vayisoglu
Miss T L Oxley
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Slavery and Human Trafficking Policy
This policy applies to all persons working for us or on our behalf in any capacity, including employees at all levels, directors, officers, agency workers, seconded workers, volunteers, agents, contractors and suppliers.
Total Recruit Limited strictly prohibits the use of modern slavery and human trafficking in our operations and supply chain. We have and will continue to be committed to implementing systems and controls aimed at ensuring that modern slavery is not taking place anywhere within our organisation or in any of our supply chains.
Auditor
Azets Audit Services Limited, trading as Azets Audit Services, were appointed auditor to the company following their acquisition of the trade of Naylor Wintersgill Limited, on 1 May 2023. 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.
Energy and carbon report
As the company 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.
TOTAL RECRUIT LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
- 3 -
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.
On behalf of the board
Mr C C Vayisoglu
Miss T L Oxley
Director
Director
30 October 2024
TOTAL RECRUIT LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 MARCH 2024
- 4 -
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.
TOTAL RECRUIT LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TOTAL RECRUIT LTD
- 5 -
Opinion
We have audited the financial statements of Total Recruit Ltd (the 'company') for the year ended 30 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 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.
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.
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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
TOTAL RECRUIT LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TOTAL RECRUIT LTD
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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.
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.
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.
TOTAL RECRUIT LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TOTAL RECRUIT LTD
- 7 -
Extent to which the audit was considered 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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Victoria Wainwright
Senior Statutory Auditor
For and on behalf of Azets Audit Services
30 October 2024
Chartered Accountants
Statutory Auditor
Carlton House
Grammar School Street
Bradford
BD1 4NS
TOTAL RECRUIT LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
10,588,211
11,194,422
Cost of sales
(9,488,280)
(10,034,970)
Gross profit
1,099,931
1,159,452
Administrative expenses
(992,609)
(1,016,791)
Operating profit
4
107,322
142,661
Interest payable and similar expenses
7
(4,043)
Profit before taxation
103,279
142,661
Tax on profit
8
2,517
(2,769)
Profit for the financial year
105,796
139,892
The profit and loss account has been prepared on the basis that all operations are continuing operations.
TOTAL RECRUIT LTD
BALANCE SHEET
AS AT
30 MARCH 2024
30 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
73,000
85,000
Tangible assets
11
149,789
33,624
222,789
118,624
Current assets
Debtors
12
1,482,037
1,227,665
Cash at bank and in hand
30,803
34,222
1,512,840
1,261,887
Creditors: amounts falling due within one year
13
(1,416,089)
(1,052,495)
Net current assets
96,751
209,392
Total assets less current liabilities
319,540
328,016
Creditors: amounts falling due after more than one year
14
(61,387)
Provisions for liabilities
Deferred tax liability
16
14,409
-
(14,409)
Net assets
258,153
313,607
Capital and reserves
Called up share capital
18
100
100
Profit and loss reserves
258,053
313,507
Total equity
258,153
313,607
The financial statements were approved by the board of directors and authorised for issue on 30 October 2024 and are signed on its behalf by:
Mr C C Vayisoglu
Miss T L Oxley
Director
Director
Company Registration No. 12401218
TOTAL RECRUIT LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 31 March 2022
100
271,615
271,715
Year ended 30 March 2023:
Profit and total comprehensive income for the year
-
139,892
139,892
Dividends
9
-
(98,000)
(98,000)
Balance at 30 March 2023
100
313,507
313,607
Year ended 30 March 2024:
Profit and total comprehensive income for the year
-
105,796
105,796
Dividends
9
-
(161,250)
(161,250)
Balance at 30 March 2024
100
258,053
258,153
TOTAL RECRUIT LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
80,698
31,057
Interest paid
(4,043)
Income taxes paid
(51,069)
(4,727)
Net cash inflow from operating activities
25,586
26,330
Investing activities
Purchase of tangible fixed assets
(135,897)
(8,141)
Repayment of loans
(3,332)
(89,652)
Net cash used in investing activities
(139,229)
(97,793)
Financing activities
Repayment of borrowings
194,993
(78,398)
Repayment of bank loans
76,481
Dividends paid
(161,250)
(98,000)
Net cash generated from/(used in) financing activities
110,224
(176,398)
Net decrease in cash and cash equivalents
(3,419)
(247,861)
Cash and cash equivalents at beginning of year
34,222
282,083
Cash and cash equivalents at end of year
30,803
34,222
TOTAL RECRUIT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2024
- 12 -
1
Accounting policies
Company information
Total Recruit Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 50 Northgate, Wakefield, WF1 3AN.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
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:
Freehold land and buildings
2% straight line
Leasehold improvements
10% straight line
Fixtures and fittings
25% straight line
Computers
33% 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.
TOTAL RECRUIT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Impairment of fixed assets
At each reporting period end date, the company 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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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.
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, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
TOTAL RECRUIT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
TOTAL RECRUIT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. 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 when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
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
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.
TOTAL RECRUIT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
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.
2
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 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.
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Turnover
10,588,211
11,194,422
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
10,588,211
11,194,422
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
13,000
12,000
Depreciation of owned tangible fixed assets
19,732
18,363
Amortisation of intangible assets
12,000
12,000
Operating lease charges
71,301
84,980
TOTAL RECRUIT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
- 17 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Staff
11
12
Temporary Workers
338
408
Total
349
420
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
9,103,969
9,494,718
Social security costs
748,419
774,401
Pension costs
110,795
113,053
9,963,183
10,382,172
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
136,575
48,930
Company pension contributions to defined contribution schemes
45,175
45,125
181,750
94,055
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
4,043
-
TOTAL RECRUIT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
- 18 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
11,892
(4,727)
Deferred tax
Origination and reversal of timing differences
(14,409)
7,496
Total tax (credit)/charge
(2,517)
2,769
The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
103,279
142,661
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
25,820
27,106
Tax effect of expenses that are not deductible in determining taxable profit
5,125
2,698
Tax effect of income not taxable in determining taxable profit
(25)
Tax effect of utilisation of tax losses not previously recognised
(2,296)
Unutilised tax losses carried forward
1,744
Effect of change in corporation tax rate
(10)
Permanent capital allowances in excess of depreciation
(550)
(2,266)
Depreciation on assets not qualifying for tax allowances
4,933
5,769
Amortisation on assets not qualifying for tax allowances
3,000
Research and development tax credit
(21,248)
(39,778)
Tax at marginal rate
(2,857)
Deferred tax
(14,409)
7,496
Taxation (credit)/charge for the year
(2,517)
2,769
9
Dividends
2024
2023
£
£
Interim paid
161,250
98,000
TOTAL RECRUIT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
- 19 -
10
Intangible fixed assets
Goodwill
£
Cost
At 31 March 2023 and 30 March 2024
120,000
Amortisation and impairment
At 31 March 2023
35,000
Amortisation charged for the year
12,000
At 30 March 2024
47,000
Carrying amount
At 30 March 2024
73,000
At 30 March 2023
85,000
11
Tangible fixed assets
Freehold land and buildings
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 31 March 2023
4,303
10,000
66,478
80,781
Additions
123,357
12,110
430
135,897
At 30 March 2024
123,357
16,413
10,000
66,908
216,678
Depreciation and impairment
At 31 March 2023
1,054
4,996
41,107
47,157
Depreciation charged in the year
531
2,500
16,701
19,732
At 30 March 2024
1,585
7,496
57,808
66,889
Carrying amount
At 30 March 2024
123,357
14,828
2,504
9,100
149,789
At 30 March 2023
3,249
5,004
25,371
33,624
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,092,838
827,376
Corporation tax recoverable
55,797
55,797
Other debtors
264,986
270,927
Prepayments and accrued income
68,416
73,565
1,482,037
1,227,665
TOTAL RECRUIT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
- 20 -
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
15
15,094
Other borrowings
15
748,856
553,863
Trade creditors
25,421
9,192
Corporation tax
11,892
51,069
Other taxation and social security
446,558
394,097
Other creditors
154,941
19,421
Accruals and deferred income
13,327
24,853
1,416,089
1,052,495
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
61,387
15
Loans and overdrafts
2024
2023
£
£
Bank loans
76,481
Other loans
748,856
553,863
825,337
553,863
Payable within one year
763,950
553,863
Payable after one year
61,387
The invoice financing facility included in other borrowings is secured on the debts to which it relates.
The bank loan is a mortgage secured against the investment property purchased in the year. The interest rate of the mortgage is xx% and has a repayment term of 6 years.
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
-
14,409
TOTAL RECRUIT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
16
Deferred taxation
(Continued)
- 21 -
2024
Movements in the year:
£
Liability at 31 March 2023
14,409
Credit to profit or loss
(14,409)
Liability at 30 March 2024
-
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
110,795
113,053
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
85
85
85
85
B Ordinary shares of £1 each
10
10
10
10
C Ordinary shares of £1 each
5
5
5
5
100
100
100
100
All shares rank pari passu, except varying rates of dividends may be paid to the different classes of shares on the recommendation of the directors.
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
28,010
42,627
Between two and five years
46,250
101,511
In over five years
9,250
74,260
153,388
TOTAL RECRUIT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
- 22 -
20
Directors' transactions
Dividends totalling £161,250 (2023 - £98,000) were paid in the year in respect of shares held by the company's directors.
Interest free loans have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Directors loan account
-
(125,384)
(153,105)
141,750
(136,739)
Directors loan account
-
(62,002)
(51,477)
59,500
(53,979)
(187,386)
(204,582)
201,250
(190,718)
21
Ultimate controlling party
The ultimate controlling party is Mr C C Vayisoglu, a director.
22
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
105,796
139,892
Adjustments for:
Taxation (credited)/charged
(2,517)
2,769
Finance costs
4,043
Amortisation and impairment of intangible assets
12,000
12,000
Depreciation and impairment of tangible fixed assets
19,732
18,363
Movements in working capital:
(Increase)/decrease in debtors
(251,040)
408,257
Increase/(decrease) in creditors
192,684
(550,224)
Cash generated from operations
80,698
31,057
23
Analysis of changes in net debt
31 March 2023
Cash flows
30 March 2024
£
£
£
Cash at bank and in hand
34,222
(3,419)
30,803
Borrowings excluding overdrafts
(553,863)
(271,474)
(825,337)
(519,641)
(274,893)
(794,534)
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