Registered number: 09418230
Annual report and
financial statements
For the year ended 28 February 2024
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ROYLE RECRUITMENT LIMITED
COMPANY INFORMATION
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ROYLE RECRUITMENT LIMITED
CONTENTS
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ROYLE RECRUITMENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
The Directors present their Strategic Report for the year ended 28 February 2024.
The Company's principal activities are an Recruitment Agency placing skilled individuals into temporary roles within the energy sector. The directors consider one of the Company’s main USP’s to be providing a high-class service to candidates and clients alike, offering excellent rates to candidates and competitive margins to clients.
This, in the view of the directors, will provide the best foundations for long-term sustainability and growth of the Company. The Company's trading results are set out in the accounts and the Directors are satisfied with the performance in the year. During the year, the business' turnover increased to £12.9m (2023: £8.0m) and gross profit increased to £1.0m (2023: £0.7m). The gross profit percentage has decreased year on year due to an increase in cost of sales and the increase in gross margin is directly attributable to the revenue increase. The Directors are pleased by the increase in cash generated from operating activities £0.9m (2023 - £0.3m) which has led to an increase in the cash position of £0.5m to £0.6m. There were no significant changes to the Company's principal activities in the year under review, and the directors are not aware, at the date of this report, of any likely major changes in the Company's activities in the next year.
Any downturn in the economic environment has historically been the greatest risk to the service sector in which Royle Recruitment Limited operates.
Economic impact of global events UK businesses are currently facing many uncertainties such as the consequences of Brexit, Covid 19, environmental sustainability and geopolitical events such as the Russian invasion of Ukraine. These uncertainties have contributed to an environment where there exists a range of issues and risks, including inflation, rising interest rates, labour shortages, disrupted supply chains and new ways of working. The Directors have carried out an assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures, and have concluded that the greatest impact on the business is expected to be from the economic ripple effect on the global economy. The Directors have taken account of these potential impacts in their going concern assessment. The Company continues to work with its partners to minimise any impacts of these events and maximise the realisation of any opportunities they may provide to the business.
The directors have reviewed the nature of the Company’s business and the assets and liabilities contained within the balance sheet and consider the only relevant financial risk to the business to be credit risk. This risk is mitigated by credit checking clients and a strong credit control function. Bad debt exposure is minimised due to our clients being predominantly large FTSE 250, or overseas equivalent, utility companies.
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ROYLE RECRUITMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
The Company continues to invest in its people and operational processes to continually improve both the customer experience and the experience for those providing agency labour. The Company remains open to opportunities which would widen the customer base and create operational efficiencies in the pursuit of achieving long term goals.
The directors consider there to be no other key performance indicators.
This report was approved by the board on 29 November 2024 and signed on its behalf.
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ROYLE RECRUITMENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
The directors present their report and the financial statements for the year ended
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £250,430 (2023 - £42,895).
During the year the Company paid interim dividends of £345,526 (2023: 209,394). A final dividend of £Nil is proposed (2023: £Nil).
The directors who served during the year were:
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ROYLE RECRUITMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
Going concern
These financial statements have been prepared on a going concern basis. The current economic conditions present risks for all businesses. In response to such conditions, the directors have carefully considered these risks, including an assessment of uncertainty on future trading projections for a period of at least 12 months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis. Based on this assessment, the directors consider that the Company maintains an appropriate level of liquidity sufficient to meet the demands of the business. The Company has banking facilities available to it to cover any funding requirements it might have. The Statement of Financial Position is strong reflecting a net current asset position. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties that lead to significant doubt upon the Company's ability to continue as a going concern. Thus the directors have continued to adopt the going concern basis of accounting in preparing these financial statements.
The directors have elected under section 414c of the Companies Act 2006 not to disclose the future development information on the basis that it is covered in the Strategic Report on pages 1-2.
Following the year-end the Company has declared dividends of £30,267 on the Ordinary E shares.
There have been no other significant events affecting the Company since the year-end.
The auditor, Parsons Accountants Ltd, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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ROYLE RECRUITMENT LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ROYLE RECRUITMENT LIMITED
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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ROYLE RECRUITMENT LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ROYLE RECRUITMENT LIMITED (CONTINUED)
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.
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ROYLE RECRUITMENT LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ROYLE RECRUITMENT LIMITED (CONTINUED)
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ROYLE RECRUITMENT LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ROYLE RECRUITMENT LIMITED (CONTINUED)
• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Unit 2 Silkwood Park
Fryers Way
Ossett
West Yorkshire
WF5 9TJ
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ROYLE RECRUITMENT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2024
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ROYLE RECRUITMENT LIMITED
REGISTERED NUMBER: 09418230
STATEMENT OF FINANCIAL POSITION
AS AT 28 FEBRUARY 2024
The notes on pages 13 to 28 form part of these financial statements.
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ROYLE RECRUITMENT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
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ROYLE RECRUITMENT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2024
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ROYLE RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
The principal activity of the Company is that of a Recruitment Agency placing skilled individuals into temporary roles within the energy sector.
2.Accounting policies
Based on this assessment, the directors consider that the Company maintains an appropriate level of liquidity sufficient to meet the demands of the business. The Company has banking facilities available to it to cover any funding requirements it might have. The Statement of Financial Position is strong reflecting a net current asset position. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties that lead to significant doubt upon the Company's ability to continue as a going concern. Thus the directors have continued to adopt the going concern basis of accounting in preparing these financial statements.
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ROYLE RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
2.Accounting policies (continued)
Turnover arising from the recruitment of temporary placements is recognised across the period within which the temporary work is provided. The company acts as the principal in this transaction and therefore turnover represents amounts billed for the services of the temporary workers, including remuneration costs of the temporary workers and commission. The Company also provides payroll bureau services. In these transactions the Company acts as the agent and therefore turnover for these services represent commissions receivable only. Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
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ROYLE RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
2.Accounting policies (continued)
Deferred tax balances are recognised, where material, in respect of all material timing differences that have originated but not reversed by the Statement of Financial position date.
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Comprehensive Income over its useful economic life and is charged to the administrative expense in the Statement of Comprehensive Income.
The estimated useful lives range as follows:
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ROYLE RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following bases.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Depreciation is charged to the administrative expenses in the Statement of Comprehensive Income.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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ROYLE RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
2.Accounting policies (continued)
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ROYLE RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
2.Accounting policies (continued)
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities. Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Other financial instruments Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss. Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy. Derecognition of financial instruments Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
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ROYLE RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
2.Accounting policies (continued)
Assessing impairment indicators In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions and experience of recoverability and where applicable, the ability of the asset to be operated as planned. No impairment indicators were noted during the year. Key sources of estimation uncertainty The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. (1) Amortisation of intangible fixed assets The Company has estimated a useful life of 10 years to the goodwill created on the acquisition of the trade and assets of a business in 2015. This estimate was based upon information available at the time the assets were acquired and management's estimate of how long these would continue to be in use by the business. Management are satisfied that the useful economic life remains appropriate. In addition to the annual amortisation charge management continually reviews the goodwill for indicators of impairment. Management have considered whether the underlying trade and assets continues to meet the performance objectives set by management. Management are satisfied no indicators of impairment existed at the year end.
The whole of the turnover is attributable to the principal activity of the Company.
Analysis of turnover by country of destination:
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ROYLE RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
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ROYLE RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
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ROYLE RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
9.Taxation (continued)
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ROYLE RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
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ROYLE RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
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ROYLE RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
There exists a charge between the Company and J R Craven, L G Aston, P Aston, F J Craven and V McLeod dated 19 October 2015. This has a first fixed charge on all future property of the Company, all present and future rights, licenses, rents and deposits relating to the property, all present and future goodwill and all uncalled share capital. This has a first floating charged on all the undertakings, property, assets and rights of the Company not covered by the first fixed charge.
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ROYLE RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
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ROYLE RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
Profit & loss account
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ROYLE RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
There have been no other significant events affecting the Company since the year-end.
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