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Royle Recruitment Limited

Registered number: 09418230
Annual report and
 financial statements
For the year ended 28 February 2024

 
ROYLE RECRUITMENT LIMITED
 
 
COMPANY INFORMATION


Directors
J R Craven 
P Aston 
L G Aston 
F J Craven 
V McLeod 




Registered number
09418230



Registered office
Studio 3.02
Regency House

Westminster Place

York

North Yorkshire

YO26 6RW




Independent auditor
Parsons Accountants Ltd
Chartered Accountants & Statutory Auditor

Unit 2 Silkwood Park

Fryers Way

Ossett

West Yorkshire

WF5 9TJ





 
ROYLE RECRUITMENT LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditor's Report
 
5 - 8
Statement of Comprehensive Income
 
9
Statement of Financial Position
 
10
Statement of Changes in Equity
 
11
Statement of Cash Flows
 
12
Notes to the Financial Statements
 
13 - 28

 
ROYLE RECRUITMENT LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024

Introduction
 
The Directors present their Strategic Report for the year ended 28 February 2024.

Business review
 
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.

Principal risks and uncertainties
 
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.

Financial risks facing the Company
 
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.

- 1 -

 
ROYLE RECRUITMENT LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024

Financial key performance indicators


28 February 2024
£
28 February 2023
£



Turnover
 12,856,461
8,046,484
Gross Profit
 972,484
676,506
Gross Profit %
 7.6
8.4
Non exceptional administrative expenses
 (571,808)
(545,290)


Future Developments

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.

Other key performance indicators
 
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.



J R Craven
Director
- 2 -

 
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 28 February 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies 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 2006They 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.

Results and dividends

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).

Directors

The directors who served during the year were:

J R Craven 
P Aston 
L G Aston 
F J Craven 
V McLeod 
- 3 -

 
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.

Matters covered in the Strategic Report

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.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved have confirmed that:
 
so far as the directors are aware, there is no relevant audit information of which the Company's auditor is unaware, and

the directors have taken all the steps that ought to have been taken as directors in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

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.

Auditor

The auditor, Parsons Accountants Ltdwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 29 November 2024 and signed on its behalf.
 





J R Craven
Director

- 4 -

 
ROYLE RECRUITMENT LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ROYLE RECRUITMENT LIMITED
 

Opinion


We have audited the financial statements of Royle Recruitment Limited (the 'Company') for the year ended 28 February 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 28 February 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


- 5 -

 
ROYLE RECRUITMENT LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ROYLE RECRUITMENT LIMITED (CONTINUED)


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 ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


- 6 -

 
ROYLE RECRUITMENT LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ROYLE RECRUITMENT LIMITED (CONTINUED)


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:
the engagement partner ensured that the engagement team collectively had the appropriate competence,  capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making inquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
- 7 -

 
ROYLE RECRUITMENT LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ROYLE RECRUITMENT LIMITED (CONTINUED)


We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
 making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgments and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors, where applicable.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.


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 2006Our 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.



Richard Walker (Senior Statutory Auditor)
  
for and on behalf of
Parsons Accountants Ltd
 
Chartered Accountants
Statutory Auditor
  
Unit 2 Silkwood Park
Fryers Way
Ossett
West Yorkshire
WF5 9TJ

29 November 2024
- 8 -

 
ROYLE RECRUITMENT LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2024

2024
2023
Note
£
£

  

Turnover
 4 
12,856,461
8,046,484

Cost of sales
  
(11,883,977)
(7,369,978)

Gross profit
  
972,484
676,506

Administrative expenses
  
(571,808)
(545,290)

Exceptional administrative expenses
 11 
-
(45,172)

Operating profit
 5 
400,676
86,044

Tax on profit
 9 
(150,246)
(43,149)

Profit for the financial year
  
250,430
42,895

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023: £NIL).

The notes on pages 13 to 28 form part of these financial statements.

- 9 -

 
ROYLE RECRUITMENT LIMITED
REGISTERED NUMBER: 09418230

STATEMENT OF FINANCIAL POSITION
AS AT 28 FEBRUARY 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 12 
276,016
441,627

Tangible assets
 13 
16,709
19,139

  
292,725
460,766

Current assets
  

Debtors: amounts falling due within one year
 14 
664,632
616,985

Cash at bank and in hand
 15 
592,247
131,642

  
1,256,879
748,627

Creditors: amounts falling due within one year
 16 
(998,414)
(563,107)

Net current assets
  
 
 
258,465
 
 
185,520

Total assets less current liabilities
  
551,190
646,286

  

Net assets
  
551,190
646,286


Capital and reserves
  

Called up share capital 
 18 
240
240

Profit and loss account
 19 
550,950
646,046

  
551,190
646,286


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 November 2024.


J R Craven
Director

The notes on pages 13 to 28 form part of these financial statements.

- 10 -

 
ROYLE RECRUITMENT LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 March 2022
240
812,545
812,785


Comprehensive income for the year

Profit for the year
-
42,895
42,895
Total comprehensive income for the year
-
42,895
42,895


Transactions with owners

Dividends: Equity capital
-
(209,394)
(209,394)


Total transactions with owners
-
(209,394)
(209,394)



At 1 March 2023
240
646,046
646,286


Comprehensive income for the year

Profit for the year
-
250,430
250,430
Total comprehensive income for the year
-
250,430
250,430


Transactions with owners

Dividends: Equity capital
-
(345,526)
(345,526)


Total transactions with owners
-
(345,526)
(345,526)


At 28 February 2024
240
550,950
551,190


The notes on pages 13 to 28 form part of these financial statements.
- 11 -

 
ROYLE RECRUITMENT LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
250,430
42,895

Adjustments for:

Amortisation of intangible assets
165,611
165,611

Depreciation of tangible assets
2,949
3,378

Taxation charge
150,246
43,149

(Increase)/decrease in debtors
(44,511)
253,804

Increase/(decrease) in creditors
458,183
(137,383)

Corporation tax (paid)
(53,672)
(90,501)

Net cash generated from operating activities

929,236
280,953


Cash flows from investing activities

Purchase of tangible fixed assets
(519)
(2,092)

Net cash used in investing activities

(519)
(2,092)

Cash flows from financing activities

Movement in directors' loan accounts
(57,496)
332,028

Dividends paid
(345,526)
(209,394)

Net cash used in financing activities
(403,022)
122,634

Net increase in cash and cash equivalents
525,695
401,495

Cash and cash equivalents at beginning of year
66,552
(334,943)

Cash and cash equivalents at the end of year
592,247
66,552


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
592,247
131,642

Invoice financing facility
-
(65,090)

592,247
66,552


- 12 -

 
ROYLE RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

1.


General information

Royle Recruitment Limited ("the Company") is a private company, limited by shares and registered in England and Wales, registered number 09418230. The address of the registered office is Studio 3.02, Regency House, Westminster Place, York, North Yorkshire, YO26 6RW.
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

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

These financial statements have been presented in pound sterling which is the functional currency of the Company, and rounded to the nearest £.

The following principal accounting policies have been applied:

 
2.2

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.

- 13 -

 
ROYLE RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
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.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

- 14 -

 
ROYLE RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

2.Accounting policies (continued)

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

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.

 
2.9

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.10

Intangible assets

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:

Goodwill
-
10
years

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

- 15 -

 
ROYLE RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

2.Accounting policies (continued)


2.11
Tangible fixed assets (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:

Office equipment
-
15%
reducing balance

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.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

- 16 -

 
ROYLE RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

2.Accounting policies (continued)

 
2.16

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

- 17 -

 
ROYLE RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

2.Accounting policies (continued)


2.16
Financial instruments (continued)

Financial liabilities
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.

- 18 -

 
ROYLE RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

2.Accounting policies (continued)

 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are detailed below.
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. 


4.


Turnover

The whole of the turnover is attributable to the principal activity of the Company.

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
12,856,461
8,046,484


- 19 -

 
ROYLE RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible assets
2,949
3,378

Amortisation of intangible assets
165,611
165,611

Other operating lease rentals
45,253
37,677

Pension costs
68,033
45,843


6.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2024
2023
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
17,850
17,000

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
8,673,663
5,248,118

Social security costs
1,024,909
635,344

Cost of defined contribution scheme
68,033
45,843

9,766,605
5,929,305


Amounts paid to temporary workers under contracts of services (Limited Companies) during the year ended 28 February 2024 amounted to £2,281,151 (2023: £1,599,764).

The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Employees of the Company (including Directors)
7
7



Temporary workers under contract of services (PAYE)
109
81



Temporary workers under contract of services (Limited Company)
22
16

138
104

- 20 -

 
ROYLE RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
69,546
71,014

Company contributions to defined contribution pension schemes
6,000
6,000

75,546
77,014


During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.


9.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
138,150
48,457

Adjustments in respect of previous periods
10,066
2,570

Total current tax

148,216
51,027

Deferred tax


Origination and reversal of timing differences
636
(727)

Adjustment in respect of previous periods
1,394
(7,151)

Total deferred tax
2,030
(7,878)


Taxation on profit on ordinary activities
150,246
43,149
- 21 -

 
ROYLE RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 24.49% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
400,676
86,044


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 24.49% (2023 - 19%)
98,126
16,348

Effects of:


Fixed asset differences
40,561
31,347

Expenses not deductible for tax purposes
80
209

Adjustments to tax charge in respect of prior periods
10,066
2,570

Adjustments to tax charge in respect of prior periods - deferred tax
1,394
(7,151)

Remeasurement of deferred tax for changes in tax rates
19
(174)

Total tax charge for the year
150,246
43,149



From 1 April 2023, the rate of corporation tax in the United Kingdom increased from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate will apply but with a marginal relief applying as profits increase.


10.


Dividends

2024
2023
£
£


Dividends paid
345,526
209,394

- 22 -

 
ROYLE RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

11.


Exceptional items

2024
2023
£
£


Exceptional items
-
45,172

The exceptional item relates to the net impact of a legal issue within the prior year.


12.


Intangible assets




Goodwill

£



Cost


At 1 March 2023
1,656,107



At 28 February 2024

1,656,107



Amortisation


At 1 March 2023
1,214,480


Charge for the year
165,611



At 28 February 2024

1,380,091



Net book value



At 28 February 2024
276,016



At 28 February 2023
441,627

The goodwill has a remaining amortisation period of one year and eight months, becoming fully amortised in October 2025.



- 23 -

 
ROYLE RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

13.


Tangible fixed assets





Office equipment

£



Cost


At 1 March 2023
54,614


Additions
519



At 28 February 2024

55,133



Depreciation


At 1 March 2023
35,475


Charge for the year
2,949



At 28 February 2024

38,424



Net book value



At 28 February 2024
16,709



At 28 February 2023
19,139


14.


Debtors

2024
2023
£
£


Trade debtors
238,088
475,992

Other debtors
31,478
28,517

Prepayments and accrued income
389,218
104,598

Deferred taxation
5,848
7,878

664,632
616,985


- 24 -

 
ROYLE RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

15.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
592,247
131,642

Less: bank overdrafts
-
(65,090)

592,247
66,552


Included within the cash at bank in hand balance is an invoice financing facility which at the year end amounted to £389,375 (2023: overdraft £65,090).


16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Invoice financing facility
-
65,090

Trade creditors
34,741
43,549

Corporation tax
147,153
51,212

Other taxation and social security
437,973
182,146

Other creditors
43,857
99,355

Accruals and deferred income
334,690
121,755

998,414
563,107


The following liabilities were secured:

2024
2023
£
£



Invoice financing facility
-
65,090

Details of security provided:

The invoice financing facility is secured by way of fixed and floating charge over all property and undertaking of the Company dated 10 November 2015.
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.
- 25 -

 
ROYLE RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

17.


Deferred taxation




2024
2023


£

£






At beginning of year
7,878
-


Charged to profit or loss
(2,030)
7,878



At end of year
5,848
7,878

The deferred tax asset is made up as follows:

2024
2023
£
£


Fixed asset timing differences
4,758
5,050

Short term timing differences
1,090
2,828

5,848
7,878

The fixed asset timing differences are expected to reverse over the useful lives of the assets to which they relate. The short-term timing differences are expected to reverse in the twelve months following the balance sheet date.


18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100 (2023 - 100) Ordinary A shares of £1.00 each
100
100
100 (2023 - 100) Ordinary B shares of £1.00 each
100
100
15 (2023 - 15) Ordinary C shares of £1.00 each
15
15
15 (2023 - 15) Ordinary D shares of £1.00 each
15
15
10 (2023 - 10) Ordinary E shares of £1.00 each
10
10

240

240

Ordinary A shares and Ordinary B shares carry voting rights and the right to participate in capital distributions, including on winding up.
Ordinary C shares, Ordinary D shares and Ordinary E shares carry no voting rights and the right to participate in capital distributions, including on winding up.
All shares are not redeemable.


- 26 -

 
ROYLE RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

19.


Reserves

Profit & loss account

This reserve includes cumulative profits or losses less dividends declared.

20.


Analysis of net debt




At 1 March 2023
Cash flows
At 28 February 2024
£

£

£

Cash at bank and in hand

131,642

460,605

592,247

Bank overdrafts

(65,090)

65,090

-

Debt due within 1 year

(53,728)

53,728

-


12,824
579,423
592,247


21.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £68,033 (2023: £45,843). Contributions totalling £4,360 (2023: £5,738) were payable to the fund at the reporting date and are included in creditors.


22.


Commitments under operating leases

At 28 February 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
44,961
40,397

Later than 1 year and not later than 5 years
2,487
48,019

Later than 5 years
571
-

48,019
88,416

- 27 -

 
ROYLE RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

23.


Related party transactions

At the year end amounts due from the directors' to the Company totalled £16,244 (2023: £12,477) and amounts due to the directors' from the Company totalled £Nil (2023: £53,728). The directors’ loan accounts where these balances have arisen are active accounts with both payments and receipts as such balances are always repayable on demand. No interest is charged on outstanding balances. During the year there were times when the directors loan accounts were overdrawn. The maximum level of indebtedness of the directors to the Company in the year was £240,403 (2023: £633,916).
During the year there were dividends declared to directors totalling £345,526 (2023: £209,394).
There are no key management personnel in addition to the directors and thus key management personnel compensation is included in the directors remuneration disclosures.


24.


Post balance sheet events

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.


25.


Controlling party

The directors consider that there is no ultimate controlling party as the voting shares are held equally between J Craven and L Aston.
- 28 -