Company registration number 12381024 (England and Wales)
RCADA HOLDINGS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
RCADA HOLDINGS LTD
CONTENTS
Page
Company information
1
Strategic report
2 - 5
Directors' report
6
Directors' responsibilities statement
7
Independent auditor's report
8 - 11
Group statement of comprehensive income
12
Group balance sheet
13
Company balance sheet
14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 36
RCADA HOLDINGS LTD
COMPANY INFORMATION
- 1 -
Directors
D H Francis
R T Byles
A S Fraser
Cara Shandley
Company number
12381024
Registered office
2 Oriel Court
106 The Green
Twickenham
Middlesex
United Kingdom
TW2 5AG
Auditor
Azets Audit Services
37 Commercial Road
Poole
Dorset
BH14 0HU
RCADA HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

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

Fair review of the business

Overall

Compass’s growth slowed at the middle of the period in line with industry peers but bucked the trend considerably toward the end of the period, thanks to our unique product offering, and this strong growth has continued into the new year.

Brand

Compass has continued to promote its brand with a focus on service levels, building an honest reputation, and a unique character that spotlights honesty, integrity and transparency in the industry. Compass has maintained a Trust Pilot score of 4.8 / 5 Stars.

People

As a payroll company, we know that our team are our biggest asset. We continually invest in creating an environment that is enjoyable to work in, with a culture that rewards hard work, and provides many benefits so that people feel like they are taken care of, even when they are not at work.

The Board continues to invest in the health and wellbeing of our staff through Private Medical Insurance, with an option extended to families as well as employees, and we continue to look for other health and happiness initiatives that benefit our teams.

Board

The Compass Executive Team is well-balanced team and aims for integrity, intelligence, and evolution when making decisions. This means that we only make decisions in the board room that we would be comfortable declaring in a public forum, and we aim to drive the industry forward by showing that you can do well by following your moral and ethical Compass.

Using these principles as our guiding light, the Board is committed to taking a long-term perspective on all matters to ensure the ongoing success of Compass and oversee a structured approach to the development of the company’s strategic plan.

The market

Factors in the market that influence our strategy:

RCADA HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

Opportunities

Looking ahead, the opportunities are clear:

Our reputation and the reputation of the industry

Our campaigns to improve the reputation of the industry continues. Our reputation is tied to that of the wider industry – when one provider is found to be non-compliant, we are all tarred with the same brush. Historically, people have chosen to keep quiet when suspicions have been raised, but we have chosen to call people out where evidence of malpractice has been found. We have a reputation for being outspoken on matters of compliance and due diligence, and we will continue to challenge the status quo until the reputation of the industry is exemplary.

We fully accept that we cannot lead this movement unless our own reputation is beyond reproach and that is why we have adopted SafeRec – industry-leading, real-time, compliance technology – and have maintained our Professional Passport accreditation – the only independent annual accreditation available. Further, we continue to refuse entry to other accreditations until they demonstrate in the long-term that they put the interests of contractors and hirers above their own interests and those of their members.

Systemisation, Automation and Outsourcing

Our bespoke, automated robotic payroll app has allowed us to scale our operations while simultaneously improving the quality of work that we are able to offer our employees and improving the conversations we have with contractors and agencies.

Follow the successful launch, we seeded an ARP team in other major departments within the business, to find small, repetitive tasks that can be automated, however due to the soft growth in the market, development was paused. With strong growth returning, we are now pushing ahead with phase 2, which will expand these smaller bots until they link together and across departments.

We have applied for R&D Tax credits based on this groundbreaking IP.

Key performance indicators

 

The group maintained its strong growth through the year to 31 March 2024. Comparing our KPIs to the same period a year earlier:

RCADA HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Promoting the success of the company
Section 172 of the Companies Act 2006

This statement is intended by the Directors to set out how they have approached and met their responsibilities under Section 172 of the Companies Act 2006 in the financial period ending 2 April 2023.

 

The Directors of RCADA act in accordance with a set of general duties, including those under Section 172 of the Companies Act 2006 to promote the success of the company for the benefit of its members as a whole. In doing so they complied with the below factors:

(a) the likely consequences of any decision in the long term,

(b) the interests of the company's employees,

(c) the need to foster the company's business relationships with suppliers, customers and others,

(d) impact of the company's operations on the community and the environment,

(e) the desirability of the company maintaining a reputation for high standards of business conduct,

(f) the need to act fairly as between members of the company.

Our relationships with suppliers, customers, community and the environment

As a socially responsible company, Compass supports the wider UK community by donating to a wide variety of charity partners, and engaging the local community by supporting efforts to improve the local environment for our employees and neighbours, and the local regulations that support small businesses.

We believe in building long-term relationships within the supply chain, such that our suppliers and customers view us as partners in their business, and they in ours.

Our reputation and the reputation of the industry

Compass aims to lead the campaign to improve the reputation of the industry. Our reputation is tied to that of the wider industry – when one provider is found to be non-compliant, we are all tarred with the same brush. Historically, people have chosen to keep quiet when suspicions have been raised, but we have chosen to call people out where evidence of malpractice has been found. We have a reputation for being outspoken on matters of compliance and due diligence, and we will continue to challenge the status quo until the reputation of the industry is exemplary.

We fully accept that we cannot lead this movement unless our own reputation is beyond reproach and that is why we have adopted SafeRec – industry-leading, real-time, compliance technology – and have maintained our Professional Passport accreditation – the only independent annual accreditation available. Further, we continue to refuse entry to other accreditations until they demonstrate in the long-term that they put the interests of contractors and hirers above their own interests and those of their members.

Greenhouse Gas Emissions

It is deemed that the energy consumed by the group is less than 40,000 kWh, therefore the exemption has been taken not to disclose the energy used during the period.

Summary

In summary, the business has exceeded expectations in many areas but we have identified underperforming areas and put in place development plans. The performance will need to be closely monitored to ensure that we maximise the amazing opportunities we have in front of us and to avoid the common pitfalls of maturing businesses. External factors will play a significant role in the performance of the business over the next 12-24 months as uncertainty will continue to drive the temporary labour industry, as long as the UK avoids a significant downturn in economic activity in the medium term.

RCADA HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -

On behalf of the board

R T Byles
Director
12 November 2024
RCADA HOLDINGS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -

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

Principal activities

The principal activity of the company and group continued to be that of employing contractors.

Results and dividends

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £45,800. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

A B Olliver
(Resigned 28 June 2023)
D H Francis
R T Byles
A S Fraser
Cara Shandley
Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the group will be put at a General Meeting.

Directors’ confirmations

In the case of each director in office at the date the directors’ report is approved:

On behalf of the board
R T Byles
Director
12 November 2024
RCADA HOLDINGS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law).

Under company law, 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 group and of the profit or loss of the group for that period. In preparing the financial statements, the directors are required to:

The directors are responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are also responsible for keeping adequate accounting records that are sufficient to show and explain the group'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.

RCADA HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RCADA HOLDINGS LTD
- 8 -
Opinion

We have audited the financial statements of RCADA Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 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).

In our opinion the financial statements:

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 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 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 directors 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 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:

RCADA HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RCADA HOLDINGS LTD
- 9 -
Matters on which we are required to report by exception

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 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:

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 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 directors either intend to liquidate the parent 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.

RCADA HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RCADA HOLDINGS LTD
- 10 -

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:

 

 

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

To address the risk of fraud through management bias and override of controls, we:

RCADA HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RCADA HOLDINGS LTD
- 11 -

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.

Mr Paul Francis (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
19 November 2024
Chartered Accountants
Statutory Auditor
37 Commercial Road
Poole
Dorset
BH14 0HU
RCADA HOLDINGS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2024
2023
Notes
£
£
Turnover
71,658,796
66,009,685
Less: share of joint ventures turnover
(12,685,841)
(10,615,834)
Total Group Turnover
3
58,972,955
55,393,851
Cost of sales
(58,002,045)
(54,265,874)
Gross profit
970,910
1,127,977
Administrative expenses
(1,041,877)
(1,125,183)
Other operating income
875
-
Operating (loss)/profit
4
(70,092)
2,794
Share of profits from joint ventures
93,833
113,506
Interest receivable and similar income
8
9,224
3,757
Share of interest receivable from joint ventures
8
3,710
5,555
Interest payable and similar expenses
9
(1,221)
(85)
Profit before taxation
35,454
125,527
Tax on profit
10
2,222
6,297
Share of tax from joint ventures
(20,925)
(22,958)
Profit for the financial year
16,751
108,866
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The notes on pages 18 to 36 form part of these financial statements.

RCADA HOLDINGS LTD
GROUP BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
747,188
774,929
Investments in joint ventures
13
1,306
2,514
748,494
777,443
Current assets
Debtors
17
2,671,131
3,600,655
Cash at bank and in hand
1,170,917
6,007,440
3,842,048
9,608,095
Creditors: amounts falling due within one year
18
(4,645,486)
(10,408,264)
Net current liabilities
(803,438)
(800,169)
Total assets less current liabilities
(54,944)
(22,726)
Provisions for liabilities
Deferred tax liability
21
4,122
7,291
(4,122)
(7,291)
Net liabilities
(59,066)
(30,017)
Capital and reserves
Called up share capital
23
108
108
Capital redemption reserve
1
1
Profit and loss reserves
(59,175)
(30,126)
Total equity
(59,066)
(30,017)
The financial statements were approved by the board of directors and authorised for issue on 12 November 2024 and are signed on its behalf by:
12 November 2024
R T Byles
Director
RCADA HOLDINGS LTD
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 14 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
10,525
22,436
Investments
13
15
7
10,540
22,443
Current assets
Debtors
17
628,132
403,421
Cash at bank and in hand
31,947
278,380
660,079
681,801
Creditors: amounts falling due within one year
18
(179,234)
(321,927)
Net current assets
480,845
359,874
Total assets less current liabilities
491,385
382,317
Creditors: amounts falling due after more than one year
19
(488,526)
(376,500)
Provisions for liabilities
Deferred tax liability
21
2,631
5,609
(2,631)
(5,609)
Net assets
228
208
Capital and reserves
Called up share capital
23
108
108
Capital redemption reserve
1
1
Profit and loss reserves
119
99
Total equity
228
208

As permitted by s408 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 £45,820 (2023 - £135,318 profit).

The financial statements were approved by the board of directors and authorised for issue on 12 November 2024 and are signed on its behalf by:
12 November 2024
R T Byles
Director
Company registration number 12381024 (England and Wales)
RCADA HOLDINGS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
108
1
(3,392)
(3,283)
Year ended 2 April 2023:
Profit and total comprehensive income
-
-
108,866
108,866
Dividends
11
-
-
(135,600)
(135,600)
Balance at 2 April 2023
108
1
(30,126)
(30,017)
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
16,751
16,751
Dividends
11
-
-
(45,800)
(45,800)
Balance at 31 March 2024
108
1
(59,175)
(59,066)
RCADA HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
108
1
381
490
Year ended 2 April 2023:
Profit and total comprehensive income for the year
-
-
135,318
135,318
Dividends
11
-
-
(135,600)
(135,600)
Balance at 2 April 2023
108
1
99
208
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
45,820
45,820
Dividends
11
-
-
(45,800)
(45,800)
Balance at 31 March 2024
108
1
119
228
RCADA HOLDINGS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
28
(4,592,714)
5,110,493
Interest paid
(1,221)
(85)
Income taxes paid
(29,805)
(22,959)
Net cash (outflow)/inflow from operating activities
(4,623,740)
5,087,449
Investing activities
Purchase of tangible fixed assets
(10,090)
(792,610)
Movement in vauation of joint ventures
(8,503)
4,971
Movement in loans to directors
(203,244)
(119,877)
Interest received
18,581
9,312
Net cash used in investing activities
(203,256)
(898,204)
Financing activities
Dividends paid to equity shareholders
(45,800)
(135,600)
Net cash used in financing activities
(45,800)
(135,600)
Net (decrease)/increase in cash and cash equivalents
(4,872,796)
4,053,645
Cash and cash equivalents at beginning of year
6,007,440
1,953,795
Cash and cash equivalents at end of year
1,134,644
6,007,440
Relating to:
Cash at bank and in hand
1,170,917
6,007,440
Bank overdrafts included in creditors payable within one year
(36,273)
-
RCADA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
1
Accounting policies
Company information

RCADA Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 2 Oriel Court, 106 The Green, Twickenham, Middlesex, United Kingdom, TW2 5AG.

 

The group consists of RCADA Holdings Ltd and all of its subsidiaries.

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
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company RCADA Holdings Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2024. 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.

RCADA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for 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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of services is recognised by reference to the date the work has been completed. Invoices are raised and recognised at that point, and if this invoice is delayed this is accrued into the financial statements.

1.6
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%, 5%, 10%, 20% straight line
Fixtures and fittings
50% straight line
Computers
50% 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 recognised in the profit and loss account.

RCADA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

RCADA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -

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.

1.9
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.

1.10
Financial instruments

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

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.

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.

RCADA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 22 -
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 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.

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 group 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

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.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

RCADA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 23 -
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 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

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.

1.13
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.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
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 leased asset are consumed.

RCADA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

 

Revenue and cost of sales

Revenue and cost of sales include work carried out but potentially not invoiced at the year end. This involves the use of judgement by management as to the value of work done. Any work that has been completed before the year end would have been accrued into the financial statements, if not invoiced, to ensure correct cut off.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Payroll
71,463,068
65,835,074
Non Payroll
31,677
70,256
Bookeeping
43,986
43,069
Management charge receivable
120,065
61,286
71,658,796
66,009,685
Total
Group
58,972,955
55,393,851
Joint ventures
12,685,841
10,615,834
71,658,796
66,009,685
2024
2023
£
£
Turnover analysed by geographical market
UK
71,656,602
65,907,320
EU
2,194
61,872
Worldwide
-
40,493
71,658,796
66,009,685
Total
Group
58,972,955
55,393,851
Joint ventures
12,685,841
10,615,834
71,658,796
66,009,685
RCADA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Turnover and other revenue
(Continued)
- 25 -
2024
2023
£
£
Other revenue
Interest income
12,934
9,312
Total
Group
15,702
3,797
Joint ventures
(2,768)
5,515
12,934
9,312
4
Operating (loss)/profit
2024
2023
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange gains
(196)
-
Depreciation of owned tangible fixed assets
37,831
22,013
Operating lease charges
3,594
22,707
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,250
4,250
Audit of the financial statements of the company's subsidiaries
8,750
8,750
13,000
13,000
For other services
Taxation compliance services
2,400
2,400
RCADA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Umbrella
964
1,031
-
-
Adminstrative and Directors
24
19
19
19
Total
988
1,050
19
19

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
40,098,502
40,399,878
509,161
458,693
Social security costs
4,273,749
4,572,612
40,796
40,530
Pension costs
836,392
870,700
6,301
5,836
45,208,643
45,843,190
556,258
505,059
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
86,612
93,944
Company pension contributions to defined contribution schemes
264
-
86,876
93,944
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
3,712
5,555
Other interest income
9,222
3,757
Total income
12,934
9,312
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
3,712
5,555
RCADA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,221
85
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
21,248
12,592
Deferred tax
Origination and reversal of timing differences
(2,545)
4,069
Total tax charge
18,703
16,661

The actual 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
35,454
125,527
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2023: 19.00%)
6,736
23,850
Tax effect of expenses that are not deductible in determining taxable profit
3,254
5,027
Tax effect of utilisation of tax losses not previously recognised
3,679
26
Unutilised tax losses carried forward
27
1,770
Effect of change in corporation tax rate
1,331
-
Permanent capital allowances in excess of depreciation
6,221
(4,031)
Research and development tax credit
-
0
(14,050)
Deferred tax
(2,545)
4,069
Taxation charge
18,703
16,661
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
45,800
135,600
RCADA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
12
Tangible fixed assets
Group
Freehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 3 April 2023
753,297
14,693
38,256
806,246
Additions
-
0
3,112
6,978
10,090
At 31 March 2024
753,297
17,805
45,234
816,336
Depreciation and impairment
At 3 April 2023
7,533
2,612
21,172
31,317
Depreciation charged in the year
15,066
6,460
16,305
37,831
At 31 March 2024
22,599
9,072
37,477
69,148
Carrying amount
At 31 March 2024
730,698
8,733
7,757
747,188
At 2 April 2023
745,764
12,081
17,084
774,929
Company
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 3 April 2023
7,720
38,256
45,976
Additions
3,112
6,978
10,090
At 31 March 2024
10,832
45,234
56,066
Depreciation and impairment
At 3 April 2023
2,368
21,172
23,540
Depreciation charged in the year
5,696
16,305
22,001
At 31 March 2024
8,064
37,477
45,541
Carrying amount
At 31 March 2024
2,768
7,757
10,525
At 2 April 2023
5,352
17,084
22,436
RCADA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in joint ventures
15
1,306
2,514
-
0
-
0
Unlisted investments
-
0
-
0
15
7
1,306
2,514
15
7
Movements in fixed asset investments
Group
Shares in joint ventures
£
Cost or valuation
At 3 April 2023
2,514
Increase in share of net assets
(1,208)
At 31 March 2024
1,306
Carrying amount
At 31 March 2024
1,306
At 2 April 2023
2,514
Movements in fixed asset investments
Company
Investments
£
Cost or valuation
At 3 April 2023
7
Additions
8
At 31 March 2024
15
Carrying amount
At 31 March 2024
15
At 2 April 2023
7
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

RCADA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
14
Subsidiaries
(Continued)
- 30 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Compass CE Ltd
UK
Employing contractors
Ordinary
100.00
CCE Accounting Ltd
UK
Bookkeeping for contractors
Ordinary
100.00
Oriel Court Property Ltd
UK
Property rental
Ordinary
100.00

CCE accounting Limited, a subsidiary company, has claimed exemption from audit under Section 479A of the Companies Act 2006.

 

15
Joint ventures

Details of joint ventures at 31 March 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Interest
% Held
held
Direct
Compass (Alexander Associates) Ltd
UK
Employing contractors
Ordinary A
50.00
Compass (ECS) Ltd
UK
Employing contractors
Ordinary A
50.00
Compass (RSSW) Ltd
UK
Employing contractors
Ordinary
50.00
Compass (Pro) Ltd
UK
Employing contractors
Oridnary A
50.00
Compass (RTRIIBE) Limited
UK
Employing contractors
Ordinary
50.00
Compass (Vertex) Ltd
UK
Employing contractors
Ordinary
50.00
Compass (Energi) Ltd
UK
Employing contractors
Ordinary
50.00
Compass (FBR) Ltd
UK
Employing contractors
Ordinary
50.00
Compass (Precision) Ltd
UK
Employing contractors
Ordinary
50.00
Samphire Accounting Ltd
UK
Employing contractors
Ordinary
50.00
RCADA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
16
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets measured at amortised cost
Trade debtors
523,885
595,847
68,711
97,480
Investments in joint ventures
-
-
15
7
Accrued income
1,564,142
2,559,939
-
-
Other debtors
546,670
227,140
527,165
242,049
2,634,697
3,382,926
595,891
339,536
Carrying amount of financial liabilities measured at amortised cost
Trade creditors
14,602
203,996
6,857
191,802
Bank loans and hire purchase
36,273
-
36,273
-
Other creditors
1,789,473
2,920,383
78,410
53,872
Accruals
244,860
54,944
49,783
46,944
2,085,208
3,179,823
171,323
292,618
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
523,885
595,847
68,711
97,480
Corporation tax recoverable
-
0
17,492
-
0
17,492
Amounts owed by group undertakings
-
-
-
28,813
Other debtors
551,268
383,153
527,617
217,811
Prepayments and accrued income
1,594,203
2,601,764
30,061
41,825
2,669,356
3,598,256
626,389
403,421
Deferred tax asset (note 21)
1,775
2,399
1,743
-
0
2,671,131
3,600,655
628,132
403,421
RCADA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
36,273
-
0
36,273
-
0
Trade creditors
14,602
203,996
6,857
191,802
Amounts owed to group undertakings
-
0
-
0
15
7
Amounts owed to undertakings in which the group has a participating interest
-
0
1,500
-
0
1,500
Corporation tax payable
1,951
28,000
-
0
17,232
Other taxation and social security
2,558,327
7,198,409
7,911
12,077
Deferred income
-
0
2,032
-
0
-
0
Other creditors
1,789,473
2,919,383
78,395
52,365
Accruals
244,860
54,944
49,783
46,944
4,645,486
10,408,264
179,234
321,927
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Other borrowings
20
-
0
-
0
488,526
376,500
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank overdrafts
36,273
-
0
36,273
-
0
Loans from group undertakings
-
0
-
0
488,526
376,500
36,273
-
524,799
376,500
Payable within one year
36,273
-
0
36,273
-
0
Payable after one year
-
0
-
0
488,526
376,500
RCADA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 33 -
21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
4,122
7,291
-
-
Tax losses
-
-
1,775
2,399
4,122
7,291
1,775
2,399
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
2,631
5,609
-
-
Tax losses
-
-
1,743
-
2,631
5,609
1,743
-
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 3 April 2023
4,892
5,609
Credit to profit or loss
(2,545)
(4,721)
Liability at 31 March 2024
2,347
888

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is expected to reverse over the assets useful life and relates to accelerated capital allowances that are expected to mature within the same period.

22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
836,392
870,700

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. The amount due to the fund at the balance sheet date was £14,632 (2023: £19,823).

RCADA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 34 -
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
4
4
4
4
Ordinary B of £1 each
4
4
4
4
Ordinary C of 0.1p each
100,000
100,000
100
100
100,008
100,008
108
108
24
Operating lease commitments
Lessee

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:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
-
-
36,000
36,000
Between two and five years
-
-
57,000
93,000
-
-
93,000
129,000
RCADA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 35 -
25
Related party transactions

Compass (RSSW) Limited

(a company with the shareholders in common)

 

At the balance sheet date the balance due to Compass (RSSW) Limited was £14,865 (2023: £nil).

 

Compass (Alexander Assocaites) Limited

(a company with the shareholders in common)

 

At the balance sheet date there was a loan due from Alexander Associates Umbrella Holdings Limited, a company that owns shares in the company, of £50,000 (2023: £nil).

 

Compass (ECS) Limited

(a company with the shareholders in common)

 

At the balance sheet date the balance due to Compass (ECS) Limited was £36,000 (2023: £nil).

 

Compass (Pro) Limited

(a company with the shareholders in common)

 

At the balance sheet date the balance due to Compass (Pro) Limited was £5,500 (2023: £nil).

 

A related party

(a shareholder in common)

 

At the balance sheet date the balance due to a related party was £92,167 (2023: £nil).

 

The company has taken advantage of the exemption available in Section 33.1A of FRS 102 whereby it has not disclosed transactions with its parent company, as it is wholly owned by the group.

 

26
Directors' transactions

During the year, a total of £284,955 (2023: £274,062) was advanced to and a total of £81,711 (2023: £154,600) was credited to the directors in relation to their directors' loan account. At the balance sheet date the amount due from the directors was £342,121 (2023: £138,877).

27
Controlling party

The directors do not consider there to be an ultimate controlling party.

RCADA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 36 -
28
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit for the year after tax
16,751
108,866
Adjustments for:
Share of results of associates and joint ventures
(93,833)
(113,506)
Taxation charged
18,703
16,661
Finance costs
1,221
85
Investment income
(12,934)
(9,312)
Depreciation and impairment of tangible fixed assets
37,831
22,013
Share of profit from joint ventures
93,833
113,506
Movements in working capital:
Decrease/(increase) in debtors
1,114,652
(1,036,470)
(Decrease)/increase in creditors
(5,768,938)
6,008,650
Cash (absorbed by)/generated from operations
(4,592,714)
5,110,493
29
Analysis of changes in net funds - group
3 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
6,007,440
(4,836,523)
1,170,917
Bank overdrafts
-
0
(36,273)
(36,273)
6,007,440
(4,872,796)
1,134,644
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