Company registration number 06567700 (England and Wales)
ANNAPURNA HR LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
ANNAPURNA HR LIMITED
COMPANY INFORMATION
Directors
J Ballard
N Fox
Company number
06567700
Registered office
57 Southwark Street
London
England
SE1 1RU
Auditor
TC Audit Limited
Suite 501
The Nexus Building
Broadway
Letchworth Garden City
Herts
SG6 9BL
Business address
57 Southwark Street
London
England
SE1 1RU
ANNAPURNA HR LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 34
ANNAPURNA HR LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 November 2023.

Review of the business

The principal activity of the company continues to be of a recruitment agency.

 

The directors are satisfied with the achieved results in turnover and net fee income given the market conditions for the year ended 30 November 2023.

 

In order to service our customers better and to increase growth, the management focus in the year was based on managing the business through the tough economic conditions that have plagued the economy since the Covid-19 Pandemic. The focus has been building the business to sustainably operate in the current market whilst also positioning it to make the most out of any future economic upturn.

 

The directors are optimistic about the position the business is in as we move on from 2023. Despite the tough market conditions the business was able to deepen existing relationships we have with our clients to ensure that we were able to lay a foundation for future growth.

 

We consider that our key financial performance indicators are those that communicate the financial performance of the company as a whole and we continue to benchmark against our competitors.

 

Principal risks and uncertainties

The principal risks and uncertainties faced by the company are those faced by many businesses of our size and structure within the recruitment market. The company is exposed to the usual margin pressures with client relationships moving to managed service models, volume-based discounts and overall competition in this highly competitive market.

 

We operate strong internal credit control procedures and as a result the company shows healthier debtor day ratios and improved operational cash flows. With these risks and uncertainties in mind, we are aware that any plans for future development of the business may be subject to unforeseen future events outside of our control.

 

 

Financial risk management objectives and policies

The business’ principal financial instruments comprise of bank balances, confidential invoice discount facility, trade debtors, trade creditors, a development loan, Director loans, and finance lease agreements. The main purpose of these instruments is to finance the business’ operations. After review of availability and pricing of working capital funding in the UK, the Directors concluded that the mix of financial instruments is correct. The company moved the confidential invoice discount facility in the year to more favourable terms.

 

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers, prior to supply of recruitment services. The amounts outstanding are regularly monitored, with payment terms and credit limits set for each customer. The amounts presented in the balance sheet are net of allowances for doubtful debtors.

 

Trace creditors’ liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. Payment runs are produced on a monthly basis, and controls are in place to ensure invoices are settled within payment terms.

 

 

 

ANNAPURNA HR LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -
Development and performance

Over the years, the company has significantly increased its customer base and continues to execute a five-year strategy. It now supplies to a wide and diverse range of customers in terms of market, size and locations across the UK and Europe. During the last few years, the company has diversified its markets and this has seen improved performance and resilience against market changes.

 

On behalf of the board

N Fox
Director
29 November 2024
ANNAPURNA HR LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 November 2023.

Principal activities

The principal activity of the company continued to be that of the provision of temporary and permanent staffing services.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £427,500. 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:

J Ballard
C Appleyard
(Resigned 14 May 2024)
N Fox
Auditor

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
N Fox
Director
29 November 2024
ANNAPURNA HR LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 4 -

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ANNAPURNA HR LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ANNAPURNA HR LIMITED
- 5 -
Opinion

We have audited the financial statements of Annapurna HR Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023 which comprise the group profit and loss account, 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, the company 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:

ANNAPURNA HR LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ANNAPURNA HR LIMITED
- 6 -
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.

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

Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the company, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to unusual movements in cost of sales, the consolidation of the foreign entity and going concern.

Audit procedures performed included:

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

ANNAPURNA HR LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ANNAPURNA HR LIMITED
- 7 -

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.

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.

James Price FCA (Senior Statutory Auditor)
For and on behalf of
29 November 2024
TC Audit Limited
Statutory Auditor
Suite 501
The Nexus Building
Broadway
Letchworth Garden City
Herts
SG6 9BL
ANNAPURNA HR LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
13,009,075
14,910,487
Cost of sales
(7,887,322)
(6,916,262)
Gross profit
5,121,753
7,994,225
Administrative expenses
(5,043,994)
(7,338,232)
Operating profit
4
77,759
655,993
Interest receivable and similar income
8
9,258
-
0
Interest payable and similar expenses
9
(187,248)
(80,636)
(Loss)/profit before taxation
(100,231)
575,357
Tax on (loss)/profit
10
(7,236)
(114,485)
(Loss)/profit for the financial year
(107,467)
460,872
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
ANNAPURNA HR LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 9 -
2023
2022
£
£
(Loss)/profit for the year
(107,467)
460,872
Other comprehensive income
Currency translation gain/(loss) taken to retained earnings
3,527
(2,404)
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
(103,940)
458,468
Total comprehensive income for the year is all attributable to the owners of the parent company.
ANNAPURNA HR LIMITED
GROUP BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
5,408
12,299
Tangible assets
13
9,413
4,009
14,821
16,308
Current assets
Debtors
16
1,636,915
2,575,234
Cash at bank and in hand
947,096
1,076,365
2,584,011
3,651,599
Creditors: amounts falling due within one year
17
(1,574,052)
(2,012,710)
Net current assets
1,009,959
1,638,889
Total assets less current liabilities
1,024,780
1,655,197
Creditors: amounts falling due after more than one year
18
(175,000)
(275,000)
Provisions for liabilities
Deferred tax liability
20
1,023
-
0
(1,023)
-
Net assets
848,757
1,380,197
Capital and reserves
Called up share capital
24
3
3
Profit and loss reserves
848,754
1,380,194
Total equity
848,757
1,380,197
The financial statements were approved by the board of directors and authorised for issue on 29 November 2024 and are signed on its behalf by:
29 November 2024
N Fox
Director
ANNAPURNA HR LIMITED
COMPANY BALANCE SHEET
AS AT 30 NOVEMBER 2023
30 November 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
5,408
12,299
Tangible assets
13
9,413
4,009
Investments
14
22,169
22,169
36,990
38,477
Current assets
Debtors
16
1,347,093
2,234,311
Cash at bank and in hand
650,630
873,467
1,997,723
3,107,778
Creditors: amounts falling due within one year
17
(1,274,042)
(1,821,029)
Net current assets
723,681
1,286,749
Total assets less current liabilities
760,671
1,325,226
Creditors: amounts falling due after more than one year
18
(175,000)
(275,000)
Provisions for liabilities
Deferred tax liability
20
1,023
-
0
(1,023)
-
Net assets
584,648
1,050,226
Capital and reserves
Called up share capital
24
3
3
Profit and loss reserves
584,645
1,050,223
Total equity
584,648
1,050,226

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £38,078 (2022 - £467,616 profit).

The financial statements were approved by the board of directors and authorised for issue on 29 November 2024 and are signed on its behalf by:
29 November 2024
N Fox
Director
Company Registration No. 06567700
ANNAPURNA HR LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 December 2021
3
1,734,253
1,734,256
Year ended 30 November 2022:
Profit for the year
-
460,872
460,872
Other comprehensive income:
Currency translation differences
-
23,045
23,045
Total comprehensive income for the year
-
483,917
483,917
Dividends
11
-
(837,976)
(837,976)
Balance at 30 November 2022
3
1,380,194
1,380,197
Year ended 30 November 2023:
Loss for the year
-
(107,467)
(107,467)
Other comprehensive income:
Currency translation differences
-
3,527
3,527
Total comprehensive income for the year
-
(103,940)
(103,940)
Dividends
11
-
(427,500)
(427,500)
Balance at 30 November 2023
3
848,754
848,757
ANNAPURNA HR LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 December 2021
3
1,420,583
1,420,586
Year ended 30 November 2022:
Profit and total comprehensive income for the year
-
467,616
467,616
Dividends
11
-
(837,976)
(837,976)
Balance at 30 November 2022
3
1,050,223
1,050,226
Year ended 30 November 2023:
Profit and total comprehensive income
-
(38,078)
(38,078)
Dividends
11
-
(427,500)
(427,500)
Balance at 30 November 2023
3
584,645
584,648
ANNAPURNA HR LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 14 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
868,071
483,264
Interest paid
(187,248)
(80,636)
Income taxes paid
(126,389)
(218,819)
Net cash inflow from operating activities
554,434
183,809
Investing activities
Purchase of intangible assets
-
(12,800)
Purchase of tangible fixed assets
(9,439)
(1,142)
Proceeds from disposal of tangible fixed assets
-
359
Increase in directors' loan accounts
(29,093)
(3)
Interest received
9,258
-
0
Net cash used in investing activities
(29,274)
(13,586)
Financing activities
Increase/ (repayment) of borrowings
(130,456)
60,969
Repayment of bank loans
(100,000)
(100,000)
Dividends paid to equity shareholders
(427,500)
(837,976)
Net cash used in financing activities
(657,956)
(877,007)
Net decrease in cash and cash equivalents
(132,796)
(706,784)
Cash and cash equivalents at beginning of year
1,076,365
1,760,104
Effect of foreign exchange rates
3,527
23,045
Cash and cash equivalents at end of year
947,096
1,076,365
ANNAPURNA HR LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 15 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
736,179
902,937
Interest paid
(159,483)
(75,552)
Income taxes paid
(112,303)
(315,230)
Net cash inflow from operating activities
464,393
512,155
Investing activities
Purchase of intangible assets
-
0
(12,800)
Purchase of tangible fixed assets
(9,439)
(1,142)
Proceeds from disposal of tangible fixed assets
-
0
359
Increase in directors' loan accounts
(29,093)
(3)
Interest received
9,258
-
0
Net cash used in investing activities
(29,274)
(13,586)
Financing activities
Increase/ (repayment) of borrowings
(130,456)
60,969
Repayment of bank loans
(100,000)
(100,000)
Dividends paid to equity shareholders
(427,500)
(837,976)
Net cash used in financing activities
(657,956)
(877,007)
Net decrease in cash and cash equivalents
(222,837)
(378,438)
Cash and cash equivalents at beginning of year
873,467
1,251,905
Cash and cash equivalents at end of year
650,630
873,467
ANNAPURNA HR LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 16 -
1
Accounting policies
Company information

Annapurna HR Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 57 Southwark Street, London, England, SE1 1RU

 

The group consists of Annapurna HR 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
Basis of consolidation

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. As the subsidiary was purchased by the parent on incorporation, there is no excess of cost over the fair value of identifiable assets, liabilities and contingent liabilities, therefore no goodwill is recognised.

 

The consolidated group financial statements consist of the financial statements of the parent company Annapurna HR 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 30 November 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
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. In making this assessment, the directors have considered multiple scenarios over the 12 months from the date of approval of these financial statements, as well as any potential cash outflow stemming from the matter disclosed at Note 29. In all of the scenarios contemplated, the directors are confident that the group will have sufficient headroom. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

ANNAPURNA HR LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Turnover from temporary placements is recognised over the period that the temporary workers are provided to customers.

 

Turnover from permanent placements is recognised by reference to the start date of employment or by reference to the employment contract being signed.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Website costs
33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

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:

Leasehold improvements
Over the lease term
Fixtures and fittings
25% 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.

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 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.

ANNAPURNA HR LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.8
Impairment of fixed assets

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

An impairment loss is recognised immediately in or , unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments 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.

The group has debt factoring arrangements in place which are in effect a hybrid of “with recourse” and “without recourse” facilities. Items where recourse exists are shown separately in both debtors and creditors as the risks and rewards of ownership are not transferred.

ANNAPURNA HR LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the 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.

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.

ANNAPURNA HR LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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 to the profit and loss as they fall due.

1.15
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted. Where material, the fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

 

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

ANNAPURNA HR LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.16
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.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the 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.

 

The directors do not consider there to be any significant accounting estimates or any material judgemental

areas in applying the accounting policies.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
8,164,642
8,877,135
Europe
4,827,656
4,877,338
Rest of the world
16,777
1,156,014
13,009,075
14,910,487
2023
2022
£
£
Other revenue
Interest income
9,258
-
ANNAPURNA HR LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 22 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Exchange losses
26,757
46,567
Fees payable to the group's auditor for the audit of the group's financial statements
18,134
19,925
Depreciation of owned tangible fixed assets
4,035
4,527
Amortisation of intangible assets
6,891
6,587
Operating lease charges
247,303
206,398
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
18,134
19,925
For other services
All other non-audit services
6,297
5,635
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
3
3
3
3
Staff
59
89
59
89
Total
62
92
62
92

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,414,564
4,709,809
4,414,564
4,708,991
Social security costs
415,184
619,111
415,184
612,909
Pension costs
49,940
67,102
49,940
67,102
4,879,688
5,396,022
4,879,688
5,389,002
ANNAPURNA HR LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 23 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
48,200
102,000
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
9,258
-
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on invoice finance arrangements
157,081
66,653
Other finance costs:
Other interest
30,167
13,983
Total finance costs
187,248
80,636
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
114,485
Deferred tax
Origination and reversal of timing differences
7,236
-
0
Total tax charge
7,236
114,485
ANNAPURNA HR LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
10
Taxation
(Continued)
- 24 -

The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(100,231)
575,357
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(25,058)
109,318
Tax effect of expenses that are not deductible in determining taxable profit
7,511
5,266
Unutilised tax losses carried forward
16,641
-
0
Amount of deferred tax expense relating to timing differences
7,652
(1,332)
Pension
(167)
(48)
Other differences
657
1,281
Taxation charge
7,236
114,485
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
427,500
837,976
12
Intangible fixed assets
Group and company
Website costs
£
Cost
At 1 December 2022 and 30 November 2023
104,739
Amortisation and impairment
At 1 December 2022
92,440
Amortisation charged for the year
6,891
At 30 November 2023
99,331
Carrying amount
At 30 November 2023
5,408
At 30 November 2022
12,299

All intangible fixed assets are held and owned by the parent company.

ANNAPURNA HR LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 25 -
13
Tangible fixed assets
Group
Fixtures and fittings
£
Cost
At 1 December 2022
42,152
Additions
9,439
At 30 November 2023
51,591
Depreciation and impairment
At 1 December 2022
38,143
Depreciation charged in the year
4,035
At 30 November 2023
42,178
Carrying amount
At 30 November 2023
9,413
At 30 November 2022
4,009
Company
Fixtures and fittings
£
Cost
At 1 December 2022
42,152
Additions
9,439
At 30 November 2023
51,591
Depreciation and impairment
At 1 December 2022
38,143
Depreciation charged in the year
4,035
At 30 November 2023
42,178
Carrying amount
At 30 November 2023
9,413
At 30 November 2022
4,009
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
22,169
22,169
ANNAPURNA HR LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
14
Fixed asset investments
(Continued)
- 26 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 December 2022 and 30 November 2023
22,169
Carrying amount
At 30 November 2023
22,169
At 30 November 2022
22,169
15
Subsidiaries

Details of the company's subsidiaries at 30 November 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Annapurna Recruitment GmbH
Germany
Ordinary A
100.00
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
384,161
1,431,787
271,269
1,238,388
Corporation tax recoverable
194,354
-
145,670
-
Amounts owed by group undertakings
-
-
66,700
-
Other debtors
528,688
146,020
528,688
146,020
Prepayments and accrued income
529,712
437,974
334,766
290,450
1,636,915
2,015,781
1,347,093
1,674,858
Deferred tax asset (note 20)
-
0
6,213
-
0
6,213
1,636,915
2,021,994
1,347,093
1,681,071
ANNAPURNA HR LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 27 -
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
100,000
100,000
100,000
100,000
Other borrowings
19
-
0
130,456
-
0
130,456
Trade creditors
118,807
336,963
85,929
325,040
Amounts owed to group undertakings
-
0
-
0
-
0
91,874
Corporation tax payable
12,001
79,887
12,001
114,485
Other taxation and social security
440,267
185,312
440,267
185,312
Deferred income
21
46,811
103,769
-
0
34,561
Other creditors
106,598
174,214
89,993
98,806
Accruals and deferred income
749,568
902,109
545,852
740,495
1,574,052
2,012,710
1,274,042
1,821,029

Zurich Assurance Limited and Sonovate Limited hold a fixed and floating charge over the assets of the company.

 

Within the 'Other taxation and social security' are VAT and PAYE liabilities arising from prior year. In November 2023, the company entered into settlement agreements with HMRC, where monthly payments were to be made to clear the balance. The outstanding PAYE liability was settled by end of July 2024 and the VAT liability was settled by end of August 2024.

18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
175,000
275,000
175,000
275,000
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
275,000
375,000
275,000
375,000
Invoice discounting facility and Other loans
-
0
130,456
-
0
130,456
275,000
505,456
275,000
505,456
Payable within one year
100,000
230,456
100,000
230,456
Payable after one year
175,000
275,000
175,000
275,000

The bank loan is secured against all property and the undertakings of the company.

ANNAPURNA HR LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 28 -
20
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
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
(3,705)
-
-
(3,370)
Tax losses
2,515
-
-
-
Other timing differences
167
-
-
9,583
1,023
-
-
6,213
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
(3,705)
-
-
(3,370)
Tax losses
2,515
-
-
-
Other timing differences
167
-
-
9,583
1,023
-
-
6,213
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 December 2022
(6,213)
(6,213)
Charge to profit or loss
7,236
7,236
Liability at 30 November 2023
1,023
1,023
21
Deferred income
Group
Company
2023
2022
2023
2022
£
£
£
£
Other deferred income
46,811
103,769
-
34,561
ANNAPURNA HR LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 29 -
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
49,940
67,102

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.

23
Share-based payment transactions
Group
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at 1 December 2022 and 30 November 2023
7,500
7,500
1.93
1.93
Exercisable at 30 November 2023
7,500
7,500
1.93
1.93
Company
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at 1 December 2022 and 30 November 2023
7,500
7,500
1.93
1.93
Exercisable at 30 November 2023
7,500
7,500
1.93
1.93

 

In 2016 an EMI scheme was put in place for certain employees.

 

Each employee has a number of options to acquire shares in the event that the company is sold. The total number of shares that could be acquired by those personnel was 22,500 at the inception of the scheme. Subsequently 15,000 of the share options lapsed. The conditions of the agreement are that the employees must remain employed with the company and a specific level of EBIT must be achieved. The maximum term of the options is 10 years from the grant date.

 

During the period zero options were granted and zero options lapsed due to exit conditions. No share options were exercised during the period, this leaves 7,500 options as being potentially exercisable.

 

The options have been valued on the basis of the market value of the underlying shares as agreed with HM Revenue & Customs. As the exercise price is the same as the agreed market value of the underlying shares, no expense is being recognised during the vesting period.

ANNAPURNA HR LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 30 -
24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.001p each
300,000
300,000
3
3
25
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
2023
2022
2023
2022
£
£
£
£
Within one year
59,008
147,102
59,008
147,102
Between two and five years
10,789
26,042
10,789
26,042
69,797
173,144
69,797
173,144
26
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
237,094
119,860
Transactions with related parties

During the year the group entered into the following transactions with related parties:

2023
2022
£
£
Group
Salaries of close family members to directors
24,000
24,000
Morecambe Football Club Limited
-
1,485
Company
Salaries of close family members to directors
24,000
24,000
Morecambe Football Club Limited
-
1,485
Other information

The directors have given a joint personal guarantee in respect of the borrowings.

ANNAPURNA HR LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 31 -
27
Directors' transactions

Dividends totalling £427,500 (2022: £837,976) were paid in the year in respect of shares held by the company's directors.

Within Other Debtors due in more than one year, as at the year end, were amounts owed from the directors totalling £446,482 (2022: £417,386). Interest is charged on these loans at 2.5%

28
Controlling party
The ultimate controlling parties are James Ballard and Nigel Fox.
29
Post Balance Sheet Event

After the year end, a holding company was created in order to facilitate the exit of C Appleyard, one of the directors and shareholders, from the company. Annapurna Recruitment Group Ltd is now the ultimate controlling party with N fox and J Ballard as the two equal shareholders.

ANNAPURNA HR LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 32 -
30
Prior year adjustment

The Group Statement of Cash Flows and the Company Statement of Cash Flows included material classification errors which affected the comparative year.

 

The errors have been corrected by restating each of the affected financial statement line items for the prior year as follows:

2022
Adjustment
2022
Group Statement of Cash Flows Extract
Restated
Cash flows from operating activities
Cash (absorbed by)/ generated from operations
(69,258)
552,522
483,264
Income taxes paid
(82,968)
(135,851)
(218,819)
(152,226)
416,671
264,445
Investing activities
Proceeds from other investments and loans
417,386
(417,389)
(3)
Proceeds on disposal of tangible fixed assets
(359)
718
359
417,027
(416,671)
356
2022
Adjustment
2022
Company Statement of Cash Flows Extract
Restated
Cash flows from operating activities
Cash (absorbed by)/ generated from operations
350,415
552,522
902,937
Income taxes paid
(179,379)
(135,851)
(315,230)
171,036
416,671
587,707
Investing activities
Proceeds from other investments and loans
417,386
(417,389)
(3)
Proceeds on disposal of tangible fixed assets
(359)
718
359
417,027
(416,671)
356
2022
Adjustment
2022
Restated
Goup - Cash generated from operations note extract
Adjustments for non-cash items:
Gain on disposal of tangible fixed assets
359
(718)
(359)
Movements in working capital:
Increase in debtors
(691,356)
553,240
(138,116)
(690,997)
552,522
(138,475)
ANNAPURNA HR LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
30
Prior year adjustment
(Continued)
- 33 -
2022
Adjustment
2022
Restated
Company - Cash generated from operations extract
Adjustments for non-cash items:
Gain on disposal of tangible fixed assets
359
(718)
(359)
Movements in working capital:
Increase in debtors
1,160,034
553,240
1,713,274
1,160,393
552,522
1,712,915
31
Cash generated from group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(107,467)
460,872
Adjustments for:
Taxation charged
7,236
114,485
Finance costs
187,248
80,636
Investment income
(9,258)
-
0
Gain on disposal of tangible fixed assets
-
(359)
Amortisation and impairment of intangible assets
6,891
6,587
Depreciation and impairment of tangible fixed assets
4,035
4,527
Movements in working capital:
Decrease/(increase) in debtors
1,019,702
(138,116)
Decrease in creditors
(183,358)
(136,887)
(Decrease)/increase in deferred income
(56,958)
91,519
Cash generated from operations
868,071
483,264
ANNAPURNA HR LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 34 -
32
Cash generated from operations - company
2023
2022
£
£
(Loss)/profit for the year after tax
(38,078)
467,616
Adjustments for:
Taxation charged
7,236
114,485
Finance costs
159,483
75,552
Investment income
(9,258)
-
0
Gain on disposal of tangible fixed assets
-
(359)
Amortisation and impairment of intangible assets
6,891
6,587
Depreciation and impairment of tangible fixed assets
4,035
4,527
Movements in working capital:
Decrease in debtors
919,917
1,713,274
Decrease in creditors
(279,486)
(1,501,056)
(Decrease)/increase in deferred income
(34,561)
22,311
Cash generated from operations
736,179
902,937
33
Analysis of changes in net funds - group
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
1,076,365
(129,269)
947,096
Borrowings excluding overdrafts
(505,456)
230,456
(275,000)
570,909
101,187
672,096
34
Analysis of changes in net funds - company
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
873,467
(222,837)
650,630
Borrowings excluding overdrafts
(505,456)
230,456
(275,000)
368,011
7,619
375,630
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