Company registration number 07200550 (England and Wales)
HGF BUSINESS SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
HGF BUSINESS SERVICES LIMITED
COMPANY INFORMATION
Directors
Mr MJ Fish
Mrs LE Johnson
(Appointed 23 November 2023)
Mr TR Wright
(Appointed 18 October 2024)
Secretary
Mr TR Wright
Company number
07200550
Registered office
1 City Walk
Leeds
West Yorkshire
England
LS11 9DX
Auditor
BHP LLP
Mayesbrook House
Lawnswood Business Park
Redvers Close
Leeds
LS16 6QY
HGF BUSINESS SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 21
HGF BUSINESS SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The directors present the strategic report for the year ended 30 April 2024.

Principal activities

The Company is a 100% owned subsidiary of HGF Limited. The principal activity of the Company for the year continued to be the provision of employment and property related services that were provided to HGF Limited.

Review of the business

The Directors consider that the profit for the year and the financial position of the Company are satisfactory and expect future results to remain similar to the current year.

The Company made a profit for the year of £98,972 (2023: £12,023) which was transferred to reserves.

The employees of the Company are essential to it’s success and the business strives to attract and retain the very best talent. The Company believes in engagement with its employees and issues regular employee communications and surveys.

The Company fosters and environment in which people prosper. It also realises the importance of other factors in being a responsible employer and has a team of mental health first aiders as well as an effective Employee Assistance Program. A healthy work-life balance is encouraged and a holiday purchase scheme is in place in addition to a generous holiday package. The business also offers and excellent benefits package including private medical and dental care.

The Company utilises an agile working policy to allow employees the flexibility of home working up to 100% of the time providing this is in line with business needs, this allows the business to recruit and retain staff from all localities and not just those where we have an office presence.

It is the aim of the Company to have a diverse and inclusive workforce and it is committed to policies and initiatives supporting this aim. Some steps have already been taken to achieve this include policies around recruitment, affinity groups and in the coming year plans to enhance its family leave package.

Principal risks and uncertainties

The Company is dependent on funding from its immediate patent company HGF Limited and therefore has a credit risk should its parent become insolvent. As at the date of signing, the parent Company had significant available resources so this risk is considered to be remote. More information on this can be found in note 1.2 of the accounting policies.

Key performance indicators

The Company provides employment and property services to it’s immediate parent entity and is therefore dependent on the performance of HGF Limited.

Revenues are based on transfer pricing and any growth or decline of year on year sales is dependent on the management charges passed onto the parent company. Revenue growth on prior year was 7% (2023: 5%).

Net margin is also reflective of transfer pricing and are affected as revenues with regard to the passing on of management charges to the parent company. Net margin for the period was 0.41% (2023: 0.06%).

Average staff Headcount increased/(decreased) by 8% (2023: (1%)) which was in line with budgeted recruitment.

Future Developments

The Directors expect the general level of activity to continue to increase in the forthcoming year, this is to service clients following growth plans in the immediate parent company.

 

On 18th October 2024, the ultimate parent company secured private investment from CBPE. Further details can be found within the financial statements of HGF Limited.

HGF BUSINESS SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -

On behalf of the board

Mr MJ Fish
Director
28 November 2024
HGF BUSINESS SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

The Directors present their annual report and financial statements for the year ended 30 April 2024.

Results and dividends

The results for the year are set out on page 9.

No dividends have been paid during the year (2023: £500,000). No final dividend has been declared (2023: same). Details of the dividends paid are shown in note 19.

Directors

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

Mrs HM Chung
(Appointed 23 November 2023 and resigned 18 October 2024)
Mr MJ Fish
Mrs LE Johnson
(Appointed 23 November 2023)
Dr B Matharu
(Resigned 18 October 2024)
Mrs R Moss McGrath
(Resigned 18 October 2024)
Mr M Nelson
(Appointed 23 November 2023 and resigned 18 October 2024)
Mr JM Lumber
(Resigned 23 November 2023)
Mr TR Wright
(Appointed 18 October 2024)
Political donations

The Company made no political or charitable donations during the current or previous financial year.

Financial Risk Management Objectives And Policies

The Directors consider the Company's primary risk to be credit risk.

Credit risk

The Company's principal financial asset is a trade receivable from its parent entity HGF Limited which represents a significant concentration of credit risk with the exposure due, primarily, to this sole undertaking. The Directors are confident in HGF Limited's strong financial resources and continue to review these as appropriate.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the group continues and that appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The Company places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the Company. This is achieved through formal and informal meetings and the Company intranet. All employees are eligible to receive an annual bonus related to the overall profitability of the Group.

Auditor

BHP LLP were appointed as auditor and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed 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 company’s auditor 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 company’s auditor is aware of that information.

HGF BUSINESS SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
On behalf of the board
Mr MJ Fish
Director
28 November 2024
HGF BUSINESS SERVICES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -

The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the Direcotrs 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 Company and of the profit or loss of the Company 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 Company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

HGF BUSINESS SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HGF BUSINESS SERVICES LIMITED
- 6 -
Opinion

We have audited the financial statements of HGF Business Services Limited (the 'company') for the year ended 30 April 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The 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:

HGF BUSINESS SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HGF BUSINESS SERVICES LIMITED (CONTINUED)
- 7 -
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:

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 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.

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.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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.

We focused on laws and regulations, relevant to the company, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, review of company minutes and legal expenses. There are inherent limitations in the audit procedures described 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.

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of the nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

HGF BUSINESS SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HGF BUSINESS SERVICES LIMITED (CONTINUED)
- 8 -

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Chris Neale
Senior Statutory Auditor
For and on behalf of BHP LLP
28 November 2024
Chartered Accountants
Statutory Auditor
Mayesbrook House
Lawnswood Business Park
Redvers Close
Leeds
LS16 6QY
HGF BUSINESS SERVICES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
24,028,859
22,394,307
Cost of sales
(23,927,465)
(22,380,325)
Gross profit
101,394
13,982
Interest payable and similar expenses
8
(476)
(466)
Profit before taxation
100,918
13,516
Tax on profit
9
(1,946)
(1,493)
Profit for the financial year
98,972
12,023

The profit and loss account has been prepared on the basis that all operations are continuing operations.

 

There were no recognised income or expenses other than the profit for the current year and loss for the prior year as shown above. Accordingly no separate statement of comprehensive income is presented.

 

The profit and loss account has been re-presented in order to show interest costs separately from cost of sales. Both periods have been presented in this manner.

HGF BUSINESS SERVICES LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
-
0
64
Current assets
Debtors
12
2,795,199
2,495,733
Creditors: amounts falling due within one year
13
(2,517,341)
(2,314,546)
Net current assets
277,858
181,187
Total assets less current liabilities
277,858
181,251
Provisions for liabilities
Provisions
14
50,779
53,144
(50,779)
(53,144)
Net assets
227,079
128,107
Capital and reserves
Called up share capital
16
100
100
Profit and loss reserves
226,979
128,007
Total equity
227,079
128,107
The financial statements were approved by the board of directors and authorised for issue on 28 November 2024 and are signed on its behalf by:
Mr MJ Fish
Director
Company registration number 07200550 (England and Wales)
HGF BUSINESS SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
100
615,984
616,084
Year ended 30 April 2023:
Profit and total comprehensive income
-
12,023
12,023
Dividends
17
-
(500,000)
(500,000)
Balance at 30 April 2023
100
128,007
128,107
Year ended 30 April 2024:
Profit and total comprehensive income
-
98,972
98,972
Balance at 30 April 2024
100
226,979
227,079
HGF BUSINESS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
1
Accounting policies
Company information

HGF Business Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 City Walk, Leeds, West Yorkshire, England, LS11 9DX.

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 functional currency of HGF Business Services Limited is considered to be pounds sterling because that is the currency of the primary economic environment in which the Company operates.

The financial statements have been prepared under the historical cost convention, in accordance with applicable law and with Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council.

HGF Business Services Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its separate financial statements. HGF Business Services Limited is consolidated in the financial statements of its parent, HGF Limited, which may be obtained at 1 City Walk, Leeds, West Yorkshire, LS11 9DX, United Kingdom. Exemptions have been taken in these separate company financial statements in relation to presentation of a cash flow statement, financial instruments and remuneration of key management personnel.

1.2
Going concern

The Company's business activities, together with the factors likely to affect its future development, performancetrue and position are set out in the Strategic Report. The Directors' Report further describes the financial position of the Company; its cash flows and its liquidity position and its exposure to credit risk and liquidity risk.

 

The financial statements have been prepared on the going concern basis. The Company is reliant on its parent Company continuing to provide funding as required to enable the Company to trade and pay its liabilities as they fall due.

 

As mentioned in the Directors report, the Directors have satisfied themselves that the parent company has sufficient resources to provide support to the company as required. As with the Directors report, The parent Company has undertaken additional going concern analysis and on review of this and its financial position, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future not least for the next 12 months and within the forecast for the Going Concern review period which runs for 12 months to the end of December 2025. The Directors will continue to adopt the going concern basis of accounting in preparing the annual financial statements.

1.3
Turnover

Turnover is stated net of VAT. Turnover represents amounts received and receivable for employment and property related services provided. Income is recognised when the related service has been provided and the Company has the right to the consideration.

1.4
Intangible fixed assets - goodwill

Goodwill arising on the acquisition of subsidiary undertakings and business, representing any excess of the fair value of the consideration given over the fair value of the identifiable assets and liabilities acquired is capitalised and written off on a straight line basis over its useful economic life, which was 7 years. The balance has now been fully amortised.

HGF BUSINESS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line basis over its expected useful life, as follows:

Freehold land and buildings
5 years straight line
Fixtures and fittings
5 years
Computer equipment
3 years

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

1.6
Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

 

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 Company after deducting all of its liabilities.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets and liabilities

All financial assets and liabilities are initially measured at transaction price (including transaction costs).

 

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

 

Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

 

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

 

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Equity Instruments

Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs.

HGF BUSINESS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

 

Non-financial assets

An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

 

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

Financial assets

For financial assets carried at amortised cost, the amount of impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.

 

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

 

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

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 company 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

HGF BUSINESS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
1.7
Taxation

Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date .. Timing differences are differences between the Company's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.

 

A net deferred tax asset is regarded as recoverable and therefore recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

 

Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis unless the effect of discounting is considered material.

 

Current tax assets and liabilities are offset only when there is a legally enforceable right to set off the amounts and the Company intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

 

Deferred tax assets and liabilities are offset only if: a) the Company has a legally enforceable right to set · off current tax assets against current tax liabilities; and b) the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

 

Deferred tax is not recognised where the differences are permanent.

1.8
Provisions
Provisions are recognised when the Company has a present legal or constructive obligation, as a result of a past event and, it is probable that the Company will be required to settle that obligation. Provisions are measured at the best estimate of the expenditure required to settle the obligation at the balance sheet date. Provisions are only discounted to present value if deemed material.
1.9
Leases
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similary spread on a straight-line basis over the lease term.
HGF BUSINESS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

Critical judgements in applying the Company's accounting policies

There are no critical judgements.

3
Turnover
All turnover arose in the United Kingdom and was from the provision of employment and property services to the Company's parent undertaking, HGF Limited.
2024
2023
£
£
Turnover analysed by class of business
Provision of property services
373,615
312,144
Provision of employment services
23,655,244
22,082,163
24,028,859
22,394,307
4
Profit before tax
2024
2023
Profit before tax is stated after charging:
£
£
Depreciation of owned tangible fixed assets
64
3,599
(Profit)/loss on disposal of tangible fixed assets
-
168
Operating lease charges
21,265
64,304
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For other services
Audit-related assurance services
6,000
5,000
HGF BUSINESS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
6
Employees

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

2024
2023
Number
Number
Fee earners
161
156
Support staff
221
198
Total
382
354

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
18,810,019
17,698,412
Social security costs
2,304,393
2,187,815
Company contributions to money purchase pension schemes (note 18)
2,308,073
1,897,635
23,422,485
21,783,862

Share issues to employees are issued by the parent company at par, any gain on market value is taxable on the employee. There is no option to buy/not to buy or sell.

7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
190,921
83,333
Company pension contributions to defined contribution schemes
109,604
96,246
300,525
179,579
8
Interest payable and similar expenses
2024
2023
£
£
Bank interest payable and similar charges
476
466
9
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
1,946
1,493
HGF BUSINESS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
9
Taxation
(Continued)
- 18 -

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

2024
2023
£
£
Profit before taxation
100,918
13,516
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
25,230
2,634
Tax effect of expenses that are not deductible in determining taxable profit
-
0
624
Adjustments in respect of prior years
-
0
329
Group relief
1,091
54,918
Other permanent differences
(24,379)
(57,017)
Fixed asset differences
4
5
Taxation charge for the year
1,946
1,493
10
Intangible fixed assets
Goodwill
£
Cost
At 1 May 2023 and 30 April 2024
904,450
Amortisation and impairment
At 1 May 2023 and 30 April 2024
904,450
Carrying amount
At 30 April 2024
-
0
At 30 April 2023
-
0
HGF BUSINESS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
11
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Computer equipment
Total
£
£
£
£
Cost
At 1 May 2023
47,075
33,391
42,701
123,167
Disposals
-
0
(164)
(9,194)
(9,358)
At 30 April 2024
47,075
33,227
33,507
113,809
Depreciation and impairment
At 1 May 2023
47,075
33,327
42,701
123,103
Depreciation charged in the year
-
0
64
-
0
64
Eliminated in respect of disposals
-
0
(164)
(9,194)
(9,358)
At 30 April 2024
47,075
33,227
33,507
113,809
Carrying amount
At 30 April 2024
-
0
-
0
-
0
-
0
At 30 April 2023
-
0
64
-
0
64
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
2,738,660
2,467,629
Other debtors
14,945
6,009
Prepayments and accrued income
32,079
10,635
2,785,684
2,484,273
Deferred tax asset (note 15)
9,515
11,460
2,795,199
2,495,733

Amounts owed by immediate parent are due on demand and attract interest at 7.76% (2023: 6.75%).

 

All other amounts are due within one year. During the year no interest charges were made (2023: £nil).

13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
24,770
18,754
Taxation and social security
554,765
546,454
Accruals and deferred income
1,937,806
1,749,338
2,517,341
2,314,546
HGF BUSINESS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
14
Provisions for liabilities
2024
2023
£
£
Leasehold property dilapidations
50,779
53,144
Movements on provisions:
Leasehold property dilapidations
£
At 1 May 2023
53,124
Credited/(charged) to profit and loss account
(2,345)
At 30 April 2024
50,779
15
Deferred taxation

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

Assets
Assets
2024
2023
Balances:
£
£
Fixed asset timing differences
9,315
11,344
Short term timing differences
200
116
9,515
11,460
2024
Movements in the year:
£
Asset at 1 May 2023
(11,460)
Charge to profit or loss
1,945
Asset at 30 April 2024
(9,515)
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
HGF BUSINESS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
16
Share capital
(Continued)
- 21 -

The Company has one class of ordinary shares which carry no right to fixed income.

 

The Company's other reserves are as follows: the profit and loss reserve represents cumulative profits or losses, net of dividends paid. Details of dividends paid can be found in note 17.

17
Dividends
2024
2023
2024
2023
Per share
Per share
Total
Total
£
£
£
£
Ordinary shares
Paid
-
0
5,000.00
-
0
500,000
18
Pension costs

The Company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge of £2,308,073 (2023: £1,897,635) represents contributions payable by the Company to the fund. There was a balance outstanding at the year end of £798 (2023: £846).

19
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
3,991
21,648
Between two and five years
-
0
3,608
3,991
25,256
20
Controlling party and related party transactions

As at the year end, the Directors consider that the ultimate parent undertaking and controlling party was HGF Limited, a limited company incorporated in England. The largest and smallest group in which the results of the entity is consolidated is HGF Limited. Consolidated financial statements of HGF Limited are available from its registered office which is 1 City Walk, Leeds, LS11 9DX, United Kingdom.

 

The Company has taken advantage of the disclosure exemptions available in FRS102 Section 33 in relation to transactions and balances between wholly-owned entities within the Group headed by HGF Limited.

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