REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
FORETWO GROUP LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
FORETWO GROUP LIMITED |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 30 June 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Profit and Loss Account | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
FORETWO GROUP LIMITED |
COMPANY INFORMATION |
for the Year Ended 30 June 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
100 Barbirolli Square |
Manchester |
M2 3BD |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
STRATEGIC REPORT |
for the Year Ended 30 June 2024 |
The Company has continued its principal activities of outsourced employment, payroll and accountancy services to the temporary labour and contractor market. |
REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS |
Turnover has increased from £118.76m to £142.88m. This is due to a larger base of contractors using the Company's services. The Company has increased head count in the Sales team and incrementally in all other areas of the business to ensure excellent delivery. Building on the Company's commitment to deliver the highest service levels possible and strict adherence to compliant solutions, alongside its FCSA Accreditation and on-line reviews, the Company engaged a third-party customer review platform and an AI driven real-time payslip auditing service to further enhance the Company's growing reputation in the market, resulting in more new clients and agency Preferred Supplier Lists. |
RESULTS & KEY PERFORMANCE INDICATORS |
2024 | 2023 |
£ 's | £ 's |
Turnover | 142,880 | 118,756 |
Gross Profit | 1,532 | 1,470 |
Gross Margin % | 1.07% | 1.24% |
Underlying operating profit before interest and taxation | 239 | 529 |
Equity-Shareholders Funds | 155 | 79 |
OUR PEOPLE |
ForeTwo Group believes its people are a real asset to the company. We value the involvement of all employees. |
The Company's strategy to growing performance over the short, medium and long term is through employee engagement to enhance the growing leadership capabilities to develop employee performance across all areas. |
The Company is committed to Equal Opportunities, training and development and providing a positive and inclusive environment. All new employees receive a warm welcome and a thorough induction where the Company's values and vision are shared. |
Through a mix of formal and informal meetings and appraisals, the Company consults with its employees on matters that may effect them, our clients and other key stakeholders, thus fostering a culture where employees opinions are welcomed and valued. |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
STRATEGIC REPORT |
for the Year Ended 30 June 2024 |
REVIEW OF BUSINESS RISKS |
The directors have assessed the principal risks to the business and in their assessment these risks are legislative changes in the temporary labour market and changes in tax legislation. The Company ensures it monitors any proposed and impending updates and is agile in its response to make good all changes that may be required. |
The company takes a proactive, moral and ethical approach to how its treats its clients and contractors to ensure there is no material exposure to reputational or financial risk associated with how some companies in the market operate. |
The company, as a member of the sectors most highly respected trade association, is tested and held to account annually on adherence to a strict code of conduct for both UK tax legislation and UK employment law. |
The directors believe that with a proactive approach to tackling changes in legislation, these risks and uncertainties can present opportunities in the market to further grow the business. |
Financial Risks |
The company's operation exposes it to a limited number of risks, primarily credit and liquidity risk. |
Credit Risk |
Appropriate credit checks are undertaken on all potential new customers and strict credit control procedures tried and tested remain in place, a credit insurance policy remains in place which further reduces exposure. |
Liquidity Risk |
The business is built on strong cash flow. The company regularly reviews turnover, margin and overheads which all impact on cash flow. |
Non-Financial Risks |
These are monitored on a regular basis by the board. The main are outlined below: |
- | Compliance - Annual FCSA assessments check for adherence to UK employment law and the FCSA's codes of conduct. |
- | Cyber - In place is a market-leading Cyber Crime Insurance policy, plus regular cyber risk assessments provided by an independent IT consultancy which extends to the Company's suppliers. |
- | Operational - Monthly Senior Management Team meetings include a review of current systems and procedures to identify any current or potential future issues. |
The directors have taken appropriate steps and put in place the relevant measures to mitigate the associated risks. |
DISABLED EMPLOYEES |
Disabled persons are employed and trained whenever aptitude and abilities allow, and suitable vacancies are available. Where an employee becomes disabled, an attempt is made to arrange appropriate retraining or transfer to other areas. |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
STRATEGIC REPORT |
for the Year Ended 30 June 2024 |
SECTION 172(1) STATEMENT |
As directors of ForeTwo Group Limited we act in a way that we consider to be in good faith, would be most likely to promote the success of the company and for the benefit of its members as a whole. The directors do so by way of the following: |
Our Board and Management team ensures that all decisions are taken for the long term, and collectively and individually aims to always uphold the highest standard of conduct. Similarly it acknowledges that the business will only grow and prosper over the long term if it understands and respects the views and needs of the company's stakeholders, customers, employees and suppliers to whom we are accountable, as well as the environment we operate within.The company decision making and plans etc are made from the work of the senior management team and regular monthly meetings are held internally. |
Decisions for the long-term: |
The Board in its obligation to discharge its Section 172 responsibilities, when making long-term decisions, primary consideration is given to the impact of such decisions on its key-stakeholders. As a binding principle, if the impact of a decision could have a detrimental or negative impact on its members, employees or other key-stakeholders, the matter in question would be summarily disregarded and receive no further consideration. |
For our Employees: |
The building blocks of any business is its employees, and the Board consider our employees to be our biggest asset. The Company provides a collegiate environment, competitive pay and additional employee benefits which include workplace health and wellbeing initiatives, and the opportunity to progress. Training and development is extended to formal paid for professional qualifications and training courses. |
Customers: |
Our customers and their experience is placed at the heart of the Company's ethos and operations. Our business model has been built around the principle that we should strive to deliver an exceptional experience. This is a central pillar that runs through every facet of the Company and not just the domain of the Customer Success team that is deployed in the business. The success of this is highlighted in the Company's Trustpilot score and reviews. |
Key Suppliers: |
The Company was founded on the basis of using best in class suppliers of infrastructure-critical systems. The likes of which have been methodically selected and are seen more as partners whom the Company works with collaboratively. The aim is for continuous improvement regarding the ultimate goal of ensuring we deliver the very best customer experience. |
Our Environment: |
Being considerate of the company's effect on the environment and local communities we serve, our Environmental Policy serves to reduce the carbon footprint the company leaves. It means the business does not have a significant detrimental impact on the environment. The Company provides career opportunities to the local community, and works with local charities in the areas the Company operates. |
The Business & Future Developments |
Growth and long-term strategy is focused around continuing to utilise the skills and knowledge of specialisms within the markets the Company already has an intrinsic knowledge of. Building synergistic operations to provide wider solutions and services to the global flexible workforce and SMEs is fundamental to the continuing growth of the business. |
ON BEHALF OF THE BOARD: |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
REPORT OF THE DIRECTORS |
for the Year Ended 30 June 2024 |
The directors present their report with the financial statements of the company for the year ended 30 June 2024. |
DIVIDENDS |
During the year, interim dividends were paid on the 1,000 ordinary shares held, at £175 per share. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
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 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 trade and other debtors, gross amounts owed by contract customers 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 financial transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest. |
Basic financial liabilities |
Basic financial liabilities, which include trade and other creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transition, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. |
QUALIFYING THIRD PARTY INDEMNITY PROVISIONS |
The Company has agreed to indemnify its directors against third party claims which may be brought against them and has put in place a directors and officers insurance policy. |
STREAMLINED ENERGY AND CARBON REPORTING |
Greenhouse gas emissions, energy consumption and energy efficiency have not been disclosed due to the consumption during the year being less than 40,000 kWh. |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen, in accordance with Section 414C(ii) of the Companies Act 2006, and as noted in this director's report, to include certain matters in its Strategic Report that would otherwise be required to be disclosed in this director's report, specifically in respect of the principal activity, review of the business, proposed future developments and key risks to the business. |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
REPORT OF THE DIRECTORS |
for the Year Ended 30 June 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
In accordance with section 485 of the Companies Act 2006, Xeinadin Audit Limited will be proposed for reappointment. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FORETWO GROUP LIMITED |
Opinion |
We have audited the financial statements of Foretwo Group Limited (the 'company') for the year ended 30 June 2024 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement 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 30 June 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 Auditors' 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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: |
- | 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FORETWO GROUP LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 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. |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following: |
- | The nature of the industry and sector, control environment and business performance including the company's remuneration policies, key drivers for directors remuneration, bonus levels and performance targets; |
- | Results of the enquiries of management about their own identification and assessment of the risks of irregularities; |
- | Any matters we have identified having obtained and reviewed the company's documentation of their policies and procedures relating to: |
- | identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; |
- | detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- | the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- | the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential risk being in the following areas: timing of recognition of income, the matching of revenue and expenditure and ensuring cut off is correctly applied. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FORETWO GROUP LIMITED |
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, environmental laws, employment law, health and safety, pensions legislation and tax legislation. |
In addition, we considered provisions of other laws and regulations 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. |
Audit response to risks identified |
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 concerning actual and potential litigation and claims; |
- | 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 and reviewing correspondence with HMRC; and |
- | in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates 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 remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
100 Barbirolli Square |
Manchester |
M2 3BD |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
PROFIT AND LOSS ACCOUNT |
for the Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
46,525 | 356,780 |
Other operating income |
OPERATING PROFIT | 4 |
Interest receivable and similar income |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
BALANCE SHEET |
30 June 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 14 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Retained earnings | 16 | ( |
) |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 30 June 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2022 | ( |
) | ( |
) |
Profit for the year | - | 437,469 | 437,469 |
Total comprehensive income | - |
Balance at 30 June 2023 | ( |
) |
Profit for the year | - | 250,833 | 250,833 |
Total comprehensive income | - |
Dividends | - | ( |
) | ( |
) |
Balance at 30 June 2024 |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
CASH FLOW STATEMENT |
for the Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 20 | ( |
) |
Tax paid | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of fixed asset investments | (610,000 | ) | - |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Amount withdrawn by directors | (8,000 | ) | (211,894 | ) |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
21 |
6,213,161 |
Cash and cash equivalents at end of year | 21 | 5,697,365 | 7,265,017 |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 30 June 2024 |
1. | STATUTORY INFORMATION |
Foretwo Group Limited is a private company limited by share capital, incorporated in England and Wales, registration number 10867179. The address of the registered office and principal place of business is Suite 3 St James Business Centre, Wilderspool Causeway, Warrington, Cheshire, WA4 6PS. |
These financial statements are presented in sterling, which is also the Company's functional currency, and are rounded to the nearest pound. |
The company's principal activites and nature of it's operations are disclosed in the Strategic Report. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover represents the fair value of consideration received or receivable from the provision of temporary 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 services taxes and value added taxes. |
Turnover is recognised to the extent that the company obtains the right to consideration in exchange for its performance. Right to consideration is based on the company confirming completion of its contractual obligations in relation to the services provided. |
Services provided to clients during the year which at the year-end have not been invoiced to clients are recognised as fee income and accrued within the balance sheet. Amounts which have been invoiced as at the year-end but where the service has not been delivered at that time are included within deferred income within the balance sheet. |
The contractor will complete an assignment for an agency who will then pay Foretwo Group the agreed contract rate (after deducting their fee). Foretwo Group will then recognise the gross revenue in respect of this assignment and the cost of the contractor. Once the contractor submits their timesheet, Foretwo Group will transfer the remuneration due to the contractor to them after deducting the fee (margin). |
This means that there are two elements of revenue recognised; the gross revenue received from the agency which is recognised when the money is received from the agency (which is net nil as it is equal to the cost of the contractors), and the margin recognised when processing timesheets. |
Intangible assets |
Intangible assets are represented by development expenditure on IT Software which is capitalised where there is a clearly defined project, related expenditure is separately identifiable and it has been assessed for technical and commercial viability. Intangible assets are initially measured at cost. |
Amortisation is calculated to write off the cost of the intangible assets over their useful life as follows: |
Software development costs | - | 50% straight line |
The carrying amounts of the company's intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. If any such indication exists, the asset's recoverable amount is estimated and an impairment provision made. |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. |
Depreciation on tangible fixed assets is charged to the profit and loss so as to write off their value, over their estimated useful lives, using the following methods: |
Computer equipment | 25% straight line |
Office equipment | 25% straight line |
Tangible fixed assets are depreciated from the date they are utilised in generating income. |
At each balance sheet date, the Company reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that any items of tangible fixed assets have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to estimate the recoverable amount of the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
Investments |
Investments are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment. Investments compromise of a portfolio of listed shares. |
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 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 trade and other debtors, gross amounts owed by contract customers 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 financial transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
The obligations for contributions to defined contribution scheme are recognised as an expense as incurred. The assets of the scheme are held separately from those of the Company in an independent administered fund. |
Trade and other debtors |
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the trade debtors and other debtors are stated at cost less impairment losses for bad and doubtful debts. |
Trade and other creditors |
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and in hand. |
Leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Assets that are held by the Company under leases which transfer to the Company substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the company are classified as operating leases. |
Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statements of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability, finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's policy on borrowing costs . Contingent rentals are recognised as expenses in the periods in which they are incurred. |
Operating lease payments are recognised as an expense on straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Management | 2 | 1 |
Sales | 7 | 6 |
Support | 12 | 10 |
Umbrella contractors | 1,711 | 1,412 |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
3. | EMPLOYEES AND DIRECTORS - continued |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' excess retirement benefits |
The directors have reviewed and believe that there are no key management personnel other than the directors in the business. |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Development costs amortisation |
5. | AUDITORS' REMUNERATION |
2024 | 2023 |
£ | £ |
Fees payable to the company's auditors and their associates for the audit of the company's financial statements |
12,250 |
9,500 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of - |
Effects of: |
Expenses not deductible for tax purposes | ( |
) | ( |
) |
Changes in tax rate | - | 17,091 |
Superdeduction on assets | - | (179 | ) |
Chargeable gain | 1,246 | - |
Total tax charge | 72,970 | 119,895 |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
7. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1.00 each |
Interim |
8. | INTANGIBLE FIXED ASSETS |
Development |
costs |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
AMORTISATION |
At 1 July 2023 |
Amortisation for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
9. | TANGIBLE FIXED ASSETS |
Office | Computer |
equipment | equipment | Totals |
£ | £ | £ |
COST |
At 1 July 2023 |
Additions |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
10. | FIXED ASSET INVESTMENTS |
Listed |
investments |
£ |
COST OR VALUATION |
Additions |
Revaluations |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
10. | FIXED ASSET INVESTMENTS - continued |
Cost or valuation at 30 June 2024 is represented by: |
Listed |
investments |
£ |
Valuation in 2024 | 29,677 |
Cost | 610,000 |
639,677 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Directors' current accounts | 75,898 | 221,784 |
Prepayments and accrued income |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade creditors |
Corporation tax |
Social security and other taxes |
VAT | 5,195,136 | 4,651,086 |
Other creditors |
Accrued expenses |
13. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
During the year the amount charged to the profit and loss for operating lease commitments was £14,901 (2023: £13,584). |
14. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated Capital Allowances | 4,602 | 4,389 |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
14. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 July 2023 |
Accelerated capital allowances | 213 |
Balance at 30 June 2024 |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1.00 | 1,000 | 1,000 |
Class A Redeemable Preference | £1.00 | 100,000 | 100,000 |
101,000 | 101,000 |
Ordinary shares held have full rights regarding voting, payment of dividends and distributions. |
Class A Redeemable Preference shares have the rights to: receive notice of and attend at general meetings of the company but no right to vote; a right to a return of capital on liquidation in priority to holders of ordinary shares; a right of redemption at the option of the company; and, a right to receive a dividend and to be considered separately by the directors of the company in deciding whether a dividend should be paid. |
16. | RESERVES |
Retained |
earnings |
£ |
At 1 July 2023 | ( |
) |
Profit for the year |
Dividends | ( |
) |
At 30 June 2024 |
17. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
As at the balance sheet date the company was owed £75,898 (2023: £221,784) by the directors. Directors loans are repayable on demand and subject to interest at the official rate of interest.. |
18. | RELATED PARTY DISCLOSURES |
During the year, the company paid consultancy fees to directors amounting to £54,562 (2023: £Nil). At the balance sheet date, included in creditors is a balance of £43,112 (2023: £Nil) owed to the directors in relation to consultancy fees payable. |
19. | ULTIMATE CONTROLLING PARTY |
The company is owned by a number of private shareholders all of whom own more than 25% but not more than 50% of the voting rights in the company. As such, there is no individual ultimate controlling party. |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
20. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
Gain on revaluation of investments | (29,677 | ) | - |
Finance income | (85,113 | ) | (28,577 | ) |
219,068 | 539,558 |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations | ( |
) |
21. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2024 |
30.6.24 | 1.7.23 |
£ | £ |
Cash and cash equivalents | 5,697,365 | 7,265,017 |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 7,265,017 | 6,213,161 |
22. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank | 7,265,017 | (1,567,652 | ) | 5,697,365 |
7,265,017 | ( |
) | 5,697,365 |
Total | 7,265,017 | (1,567,652 | ) | 5,697,365 |