REGISTERED NUMBER: 09573050 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2024 |
FOR |
PRECISION RESOURCE GROUP LIMITED |
REGISTERED NUMBER: 09573050 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2024 |
FOR |
PRECISION RESOURCE GROUP LIMITED |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 30 APRIL 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Consolidated Statement of Comprehensive Income |
10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
PRECISION RESOURCE GROUP LIMITED |
COMPANY INFORMATION |
for the Year Ended 30 APRIL 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditor |
61 Queen Square |
Bristol |
BS1 4JZ |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
GROUP STRATEGIC REPORT |
for the Year Ended 30 APRIL 2024 |
Introduction |
The directors present their group strategic report for the year ended 30 April 2024. |
Precision Resource Group Limited, and its subsidiaries, ('Company' or 'the Group' or 'the Company') are a global leader in recruitment and talent solutions. |
Via its four brands; iO Associates, Panoramic Associates, Finitas and more recently PRG Consulting, the Group offers a range of specialist services to its clients to support them in their search for high-quality personnel. |
REVIEW OF BUSINESS |
Business Review |
Despite challenging market conditions, the directors are pleased to report Gross Profit ('GP') for the period of £26.1m, up from £24.9m (5%) on the prior year. This annual growth extended the Group's record of achieving increased GP every year since formation in 2009. |
However, difficult trading in the second half of the year in particular, resulted in a drop in Operating Profit (OP) to £2.4m from £3.3m. Nonetheless, the Company remained profitable and the core UK business generated a 13% OP margin. This compares very favourably with similar sized recruitment businesses operating in the same industries. |
The directors key strategic focus for the year was driving GP from non-contingent recruitment products. Broadly referred to as Secured Business, the range of products offered to clients increased during the year to include; Recruitment Process Outsourcing (RPO), Consultancy (via the new PRG Consulting brand), Statement of Work (SOW) and Retained Exec Search. GP generated from Secured Business products was £1.3m in the period and is forecast to grow in future years. |
The directors continued their focus on enhancing data quality and systems. The Company is well placed to take advantage of the benefits of automation and AI given the targeted investments into its tech stack and market leading products like Bullhorn and LinkedIn. |
The Company's most important asset is its people and throughout the period, The Company has invested into their development, welfare and success. |
Subsidiaries Review |
The Company's US entity continued to grow during the period. GP increased to £1.9m, up from £1.3m the prior year (52%). And although the US entity lost money, the expectation is that consistent OP will be generated from next year. |
The India office grew by 50% in headcount and continued to offer excellent quality and highly cost effective operational, delivery and data support to the wider group. The Company also began offering an offshore talent solution ('iOffshore') for clients across UK, EU and US. |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
GROUP STRATEGIC REPORT |
for the Year Ended 30 APRIL 2024 |
The Company built on the strong reputation of the iO Associates brand in the UK tech community by opening an office in Manchester. The directors are focussed on building communities and creating an environment of learning and collaboration for the Company's clients and candidates alike. |
The German branch became a GmbH at the end of the period and the directors celebrated the successful application of the ANÜ labour leasing license which will generate GP in future years. |
Sustainability Review |
The Company concentrated on making progress towards its sustainability goals during the year. The Sustainability Committee encouraged staff to reduce their environmental impact through making sensible travel choices, considering energy efficiency and increasing their recycling. Individuals reviewing their pensions were made aware of the highest rated fund for CSR. There were also various client and charitable events attended during the year including those with Future Leap and the Bristol Climate Nature Partnership. |
FINANCIAL KEY PERFORMANCE INDICATORS |
Turnover grew to £111m, up from £95.9m in the prior year. Total GP also grew, up to £26.1m. Contract GP has always been a key driver of growth for the Group. In the period, contract GP grew to £18m, up £2.7m (18%) on the prior year. The number of contractors out on site grew to 989 from 907 (9%) and the yield per sales head finished on £9.8k. Coupled with this strong performance, financial KPIs remained robust; debtor days remained below 30 for the third consecutive year and the current ratio remained at 1.3 for the fourth consecutive year. |
The Company's performance during the year has been measured by the directors using the following financial and non-financial KPIs. The source of the data and calculation methods year-on-year are on a consistent basis. |
KPI | 2024 | 2023 |
Turnover Growth - Annual Increase / (Decrease) in Turnover. Source : Consolidated Income Statement |
16.1% |
61.4% |
Gross Profit Growth - Annual Increase / (Decrease) in Gross Profit. Source : Consolidated Income Statement |
4.9% |
56.1% |
Operating Profit / (Loss) - Calculated as Operating Profit / Gross Profit expressed as a %. Source : Consolidated Income Statement |
9.2% |
13.3% |
Debtor Days - Number of days to collect cash from sales invoices. Calculated as Average Trade Debtors / Annual Total Sales * 365. Source: Internal Data |
27.4 |
27.4 |
Current Ratio - Calculated as Current Assets / Current Liabilities. Source : Consolidated Balance Sheet |
1.30 |
1.33 |
Contract Runners - Contractors on placement at end of period | 989 | 907 |
Yield per Sales Head per month - Calculated as Gross Profit / Average Sales Headcount / 12 |
£9,781 |
£10,814 |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
GROUP STRATEGIC REPORT |
for the Year Ended 30 APRIL 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Economic Fluctuations: Changes in the economy, such as recessions, inflation or client confidence can affect hiring decisions and, consequently turnover. The Company has shown itself to be resilient against economic downturns in the past through its diversified portfolio of brands that work across different industries and geographies. It continues to track economic indicators on a regular basis and act accordingly. |
Legislation and Regulation Changes: New employment laws or changes to minimum wages or employer taxes could affect operations and cost structures. Legal support is provided by a network of external advisors across each geographical region and training on the implications of current legislation is provided to all affected staff. An annual budget is created each year and a rolling budget each month to track the impacts of increasing costs. |
Talent Acquisition: The challenge of attracting and retaining top talent within the Company to provide quality service to its clients remains key. Therefore, there is continued investment in learning & development, staff benefits & welfare and incentives. There is an options scheme in place for key employees across every office and there is regular benchmarking to ensure our remuneration packages remain competitive. |
Cybersecurity Threats: Increasingly sophisticated cyber threats pose risks to business operations and sensitive data. The Company manages the risk of cyber-crime with a dedicated data and systems department that trains staff and monitors threats. An external IT firm is responsible for the protection and maintenance of the Company's IT infrastructure. The Company is Cyber Essentials Plus accredited. |
Working capital: To ensure sufficient cash availability, strong credit control policies and processes are in place and technology is utilised to maintain prompt cash collection. There is a £10m invoice discounting facility available to draw funds from. The risk of clients becoming insolvent or being unable to pay their bills is minimised by ensuring no over reliance on a single client, and robust credit checks for all new clients. |
Summary |
The Company is content with its progress towards, and remains committed to its vision, specifically: |
To be global a talent leader |
To enhance the communities in which it operates |
To engender a culture of continuous improvement |
To remain people-first in its ethos. |
ON BEHALF OF THE BOARD: |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
REPORT OF THE DIRECTORS |
for the Year Ended 30 APRIL 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 April 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of recruitment consultants. |
DIVIDENDS |
During the year dividends totalling £1,417,808 were paid, of which £612,050 were on the Founder shares and £805,758 were on the Ordinary shares. A further £1,485,350 dividends relating to 2023/24 have been paid since the year end. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2023 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
The Group did not make any political donations in the year ending 30 April 2024. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
REPORT OF THE DIRECTORS |
for the Year Ended 30 APRIL 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PRECISION RESOURCE GROUP LIMITED |
Opinion |
We have audited the financial statements of Precision Resource Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, 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 group's and of the parent company affairs as at 30 April 2024 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PRECISION RESOURCE GROUP LIMITED |
Opinions 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 Statement of Directors' Responsibilities set out on page five, 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 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PRECISION RESOURCE GROUP LIMITED |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
An understanding of the legal and regulatory framework applicable to the entity was obtained from management and those charged with governance of the entity and its subsidiaries, and the audit engagement team was confirmed to have appropriate competence and capabilities to identify non-compliance with such a framework. |
No significant instances of fraud, non-compliance with laws and regulations or other irregularities were communicated to the engagement team by management or those charged with governance no particular audit areas or legislation were identified that gave rise to any significant risks of material misstatement in respect of such irregularities. |
Due to the size and nature of the entity, its susceptibility to material misstatement resulting from fraud, non-compliance with laws and regulations, or other irregularities is considered to be low, and the audit approach was appropriately planned so as to address this risk. |
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 Report of the Auditors. |
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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditor |
61 Queen Square |
Bristol |
BS1 4JZ |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
for the Year Ended 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 | 111,293,692 | 95,850,022 |
Cost of sales | 85,237,781 | 70,999,642 |
GROSS PROFIT | 26,055,911 | 24,850,380 |
Administrative expenses | 23,664,291 | 21,551,833 |
OPERATING PROFIT | 5 | 2,391,620 | 3,298,547 |
Interest receivable and similar income | 8,258 | 7,201 |
2,399,878 | 3,305,748 |
Interest payable and similar expenses | 6 | 26,315 | 15,330 |
PROFIT BEFORE TAXATION | 2,373,563 | 3,290,418 |
Tax on profit | 7 | 764,583 | 903,545 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Share options issued in the period | 100,000 | 89,861 |
Foreign currency translation loss | (14,157 | ) | - |
Income tax relating to components of other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
85,843 |
89,861 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,694,823 |
2,476,734 |
Profit attributable to: |
Owners of the parent | 1,608,980 | 2,386,873 |
Total comprehensive income attributable to: |
Owners of the parent | 1,694,823 | 2,476,734 |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
CONSOLIDATED BALANCE SHEET |
30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 910,419 | 1,108,337 |
Investments | 11 | - | - |
910,419 | 1,108,337 |
CURRENT ASSETS |
Debtors | 12 | 15,471,211 | 13,951,307 |
Cash at bank | 352,533 | 363,071 |
15,823,744 | 14,314,378 |
CREDITORS |
Amounts falling due within one year | 13 | 11,983,267 | 10,785,989 |
NET CURRENT ASSETS | 3,840,477 | 3,528,389 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,750,896 |
4,636,726 |
CREDITORS |
Amounts falling due after more than one year |
14 |
- |
(104,246 |
) |
PROVISIONS FOR LIABILITIES | 17 | (157,659 | ) | (216,258 | ) |
NET ASSETS | 4,593,237 | 4,316,222 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 133 | 133 |
Share premium | 19 | 59,158 | 59,158 |
Other reserves | 19 | 200,800 | 114,957 |
Retained earnings | 19 | 4,333,146 | 4,141,974 |
SHAREHOLDERS' FUNDS | 4,593,237 | 4,316,222 |
The financial statements were approved by the Board of Directors and authorised for issue on 21 January 2025 and were signed on its behalf by: |
M Lloyd - Director |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
COMPANY BALANCE SHEET |
30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Share premium | 19 |
Other reserves | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 2,084,067 | 3,496,180 |
The financial statements were approved by the Board of Directors and authorised for issue on |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 30 APRIL 2024 |
Called up |
share | Retained | Share | Other | Total |
capital | earnings | premium | reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1 May 2022 | 133 | 2,825,442 | 59,158 | 25,096 | 2,909,829 |
Changes in equity |
Dividends | - | (1,070,341 | ) | - | - | (1,070,341 | ) |
Total comprehensive income | - | 2,386,873 | - | 89,861 | 2,476,734 |
Balance at 30 April 2023 | 133 | 4,141,974 | 59,158 | 114,957 | 4,316,222 |
Changes in equity |
Dividends | - | (1,417,808 | ) | - | - | (1,417,808 | ) |
Total comprehensive income | - | 1,608,980 | - | 85,843 | 1,694,823 |
Balance at 30 April 2024 | 133 | 4,333,146 | 59,158 | 200,800 | 4,593,237 |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 30 APRIL 2024 |
Called up |
share | Retained | Share | Other | Total |
capital | earnings | premium | reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1 May 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 April 2023 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 April 2024 |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,599,803 | 934,516 |
Interest paid | (135 | ) | (79 | ) |
Interest element of hire purchase payments paid |
(26,180 |
) |
(15,251 |
) |
Tax paid | (738,854 | ) | (662,044 | ) |
Net cash from operating activities | 1,834,634 | 257,142 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (167,304 | ) | (526,786 | ) |
Sale of tangible fixed assets | (2 | ) | - |
Interest received | 8,258 | 7,201 |
Net cash from investing activities | (159,048 | ) | (519,585 | ) |
Cash flows from financing activities |
Net Invoice financing movement in year | (4,205 | ) | 1,468,545 |
Capital repayments in year | (249,955 | ) | (145,807 | ) |
Equity dividends paid | (1,417,808 | ) | (1,070,341 | ) |
Net cash from financing activities | (1,671,968 | ) | 252,397 |
Increase/(decrease) in cash and cash equivalents | 3,618 | (10,046 | ) |
Cash and cash equivalents at beginning of year |
2 |
363,071 |
373,117 |
Effect of foreign exchange rate changes |
(14,156 |
) |
- |
Cash and cash equivalents at end of year |
2 |
352,533 |
363,071 |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 30 APRIL 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 2,373,563 | 3,290,418 |
Depreciation charges | 365,223 | 209,200 |
Notional cost of share based payments | 100,000 | 89,861 |
Finance costs | 26,315 | 15,330 |
Finance income | (8,258 | ) | (7,201 | ) |
2,856,843 | 3,597,608 |
Increase in trade and other debtors | (1,519,904 | ) | (3,379,691 | ) |
Increase in trade and other creditors | 1,262,864 | 716,599 |
Cash generated from operations | 2,599,803 | 934,516 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 April 2024 |
30.4.24 | 1.5.23 |
£ | £ |
Cash and cash equivalents | 352,533 | 363,071 |
Year ended 30 April 2023 |
30.4.23 | 1.5.22 |
£ | £ |
Cash and cash equivalents | 363,071 | 373,117 |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 30 APRIL 2024 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.5.23 | Cash flow | At 30.4.24 |
£ | £ | £ |
Net cash |
Cash at bank | 363,071 | (10,538 | ) | 352,533 |
363,071 | (10,538 | ) | 352,533 |
Debt |
Finance leases | (354,193 | ) | 249,955 | (104,238 | ) |
(354,193 | ) | 249,955 | (104,238 | ) |
Total | 8,878 | 239,417 | 248,295 |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 30 APRIL 2024 |
1. | STATUTORY INFORMATION |
Precision Resource Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The group has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirement of paragraph 33.7. |
Basis of consolidation |
The consolidated financial statements present the results of FRS 102 Precision Resource Group Limited and its subsidiaries ("the Group") as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). The consolidated financial statements are presented in "sterling", which is the company's functional and the group's presentation currency. |
On consolidation, the results of overseas operations are translated into sterling at average rates. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Office Equipment | - |
Computer equipment | - |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial assets and liabilities are recognised in the balance sheet when the group becomes party to the contractual provisions of the instrument. |
Trade and other debtors and creditors are classified as basic financial instruments and are measured on initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the group may not be able to collect all amounts due. |
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the group's cash management. |
Financial liabilities and equity instruments issued by the group are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. Equity instruments issued by the group are recorded at the proceeds received, net of any direct issue costs. |
Interest bearing bank loans, overdrafts and other loans which meet the criteria of basic financial instruments are initially recorded at the present value of cash payable to the bank, usually being equivalent to the proceeds received net of direct issue costs. These liabilities are subsequently measured at amortised cost, using the effective interest rate method. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
Short term employee benefits including holiday pay and annual bonuses are accrued as services are rendered. |
The group operates a defined contribution pension scheme for employees. Contributions payable to the group's pension scheme are charged to the consolidated statement of comprehensive income as they become payable in accordance with the rules of the scheme. Differences between contributions payable in the year and those actually paid are shown as either accruals or prepayments in the balance sheet. |
Going concern |
The company and group were profitable for the last two years, and held net current assets and cash reserves at 30 April 2024. They have also remained profitable in the period since the year end up to the signing of these financial statements. |
The directors and management team have assessed the next twelve months and they fully expect that the company will remain a going concern. The directors will endeavour to ensure that the company has sufficient working capital to meet its requirements for the foreseeable future. The directors will continue to carefully monitor the economic environment and will develop alternative plans should the need arise. |
In light of the above, the directors have reviewed the going concern status of the business for the foreseeable future to the best of their abilities and have concluded that they have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis of accounting in preparing these financial statements. |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 APRIL 2024 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 103,494,271 | 91,100,999 |
Europe | 3,103,583 | 2,539,229 |
United States of America | 4,695,838 | 2,209,794 |
111,293,692 | 95,850,022 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 15,562,722 | 14,284,628 |
Social security costs | 1,663,872 | 1,572,931 |
Other pension costs | 375,400 | 634,781 |
17,601,994 | 16,492,340 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 3 | 3 |
Consultants and administration staff | 277 | 248 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 62,900 | 97,261 |
Directors' pension contributions to money purchase schemes | 121,000 | 422,538 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 3 |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 APRIL 2024 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Other operating leases | 590,877 | 374,375 |
Depreciation - owned assets | 265,224 | 175,867 |
Depreciation - assets on hire purchase contracts | 100,000 | 33,333 |
Auditor's remuneration - audit |
of parent company | 30,000 | 20,000 |
Foreign exchange differences | (43,067 | ) | (586 | ) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Other interest payable | 135 | 79 |
Hire purchase | 26,180 | 15,251 |
26,315 | 15,330 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 818,366 | 734,870 |
Corporation tax re prior year | 4,816 | 4,462 |
Total current tax | 823,182 | 739,332 |
Deferred tax | (58,599 | ) | 164,213 |
Tax on profit | 764,583 | 903,545 |
UK corporation tax has been charged at 25 % (2023 - 19.49 %). |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 APRIL 2024 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 2,373,563 | 3,290,418 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19.493 %) |
593,391 |
641,401 |
Effects of: |
Expenses not deductible for tax purposes | 69,882 | 58,250 |
Adjustments to tax charge in respect of previous periods | 4,816 | 4,462 |
Enhanced R&D expenditure | (44,334 | ) | (38,525 | ) |
Subsidiary losses not recognised and utilised | 142,061 | 219,686 |
Enhanced capital allowances | - | (30,716 | ) |
Deferred tax recognised at 25% | - | 48,987 |
Effect of differences in tax rates in foreign jurisdictions | (1,233 | ) | - |
Total tax charge | 764,583 | 903,545 |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Share options issued in the period | 100,000 | - | 100,000 |
Foreign currency translation loss | (14,157 | ) | - | (14,157 | ) |
85,843 | - | 85,843 |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Share options issued in the period | 89,861 | - | 89,861 |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 APRIL 2024 |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Founder shares of £0.0001 each |
Interim | 612,050 | 758,133 |
Ordinary shares of £0.0001 each |
Interim | 805,758 | 312,208 |
1,417,808 | 1,070,341 |
The dividends on Founder shares above consist of £284,758 paid on Founder A shares and £327,292 paid on Founder B shares (2023 - 338,133 and £420,000 respectively). |
10. | TANGIBLE FIXED ASSETS |
Group |
Office | Computer |
Equipment | equipment | Totals |
£ | £ | £ |
COST |
At 1 May 2023 | 1,087,233 | 727,614 | 1,814,847 |
Additions | 32,752 | 134,552 | 167,304 |
Disposals | (32,250 | ) | (99,646 | ) | (131,896 | ) |
At 30 April 2024 | 1,087,735 | 762,520 | 1,850,255 |
DEPRECIATION |
At 1 May 2023 | 308,437 | 398,073 | 706,510 |
Charge for year | 174,296 | 190,928 | 365,224 |
Eliminated on disposal | (43,305 | ) | (88,593 | ) | (131,898 | ) |
At 30 April 2024 | 439,428 | 500,408 | 939,836 |
NET BOOK VALUE |
At 30 April 2024 | 648,307 | 262,112 | 910,419 |
At 30 April 2023 | 778,796 | 329,541 | 1,108,337 |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 APRIL 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Office |
Equipment |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 | 500,000 |
DEPRECIATION |
At 1 May 2023 | 33,333 |
Charge for year | 100,000 |
At 30 April 2024 | 133,333 |
NET BOOK VALUE |
At 30 April 2024 | 366,667 |
At 30 April 2023 | 466,667 |
Company |
Office | Computer |
Equipment | equipment | Totals |
£ | £ | £ |
COST |
At 1 May 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 30 April 2024 |
DEPRECIATION |
At 1 May 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 APRIL 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Office |
Equipment |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 |
DEPRECIATION |
At 1 May 2023 |
Charge for year |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 APRIL 2024 |
11. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 61 Queen Square, Bristol, BS1 4JZ |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Registered office: 61 Queen Square, Bristol, BS1 4JZ |
Nature of business: |
% |
Class of shares: | holding |
iO Associates Limited has aggregate capital and reserves of £Nil (2022: £Nil). |
Registered office: The Corporate Trust Center, 1209 Orange Street, Wilmington, DE 19801 |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
Registered office: Plot 337, Industrial & Business Park, Phase 2, Chandigarh, India. |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit/(loss) for the year | ( |
) |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 APRIL 2024 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 10,105,310 | 9,819,241 |
Amounts owed by group undertakings | - | - |
Other debtors | 47,252 | 14,728 |
VAT | 35,051 | 2,798 |
Prepayments | 396,145 | 340,291 |
Accrued income | 4,887,453 | 3,774,249 | 4,711,284 | 3,774,249 |
15,471,211 | 13,951,307 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Hire purchase contracts (see note 15) | 104,238 | 249,947 |
Trade creditors | 541,183 | 181,506 |
Amounts owed to group undertakings | - | - |
Corporation tax | 329,278 | 244,950 |
Social security and other taxes | 844,587 | 820,184 |
Other creditors | 632,215 | 413,769 |
Advances under Receivables Finance Agreement |
3,963,183 |
3,967,388 |
3,963,183 |
3,967,388 |
Accrued expenses | 5,568,583 | 4,908,245 |
11,983,267 | 10,785,989 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Hire purchase contracts (see note 15) | - | 104,246 |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 APRIL 2024 |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase | contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 104,238 | 249,947 |
Between one and five years | - | 104,246 |
104,238 | 354,193 |
Company |
Hire purchase | contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Group |
Non-cancellable | operating leases |
2024 | 2023 |
£ | £ |
Within one year | 393,217 | 274,533 |
Between one and five years | 888,077 | 1,252,698 |
1,281,294 | 1,527,231 |
Company |
Non-cancellable | operating leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 APRIL 2024 |
16. | SECURED DEBTS |
Creditors includes Advances under Receivables Finance Agreement which was £3,963,183 at the year end date (2023 - £3,967,388). The advance is secured on the Trade debtors of the company. |
17. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 171,932 | 220,345 |
Other timing differences | (14,273 | ) | (4,087 | ) | (14,273 | ) | (4,087 | ) |
157,659 | 216,258 | 157,659 | 216,258 |
Group |
Deferred |
tax |
£ |
Balance at 1 May 2023 | 216,258 |
Utilised during year | (58,599 | ) |
Balance at 30 April 2024 | 157,659 |
Company |
Deferred |
tax |
£ |
Balance at 1 May 2023 |
Utilised during year | ( |
) |
Balance at 30 April 2024 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Founder | £0.0001 | 100 | 100 |
Ordinary | £0.0001 | 33 | 33 |
133 | 133 |
All share classes have equal voting rights and rights to a distribution on the winding up of the company. |
PRECISION RESOURCE GROUP LIMITED (REGISTERED NUMBER: 09573050) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 APRIL 2024 |
19. | RESERVES |
The Other Reserve is the company's Share Option Reserve and foreign currency translation reserve. Share Option Reserve reflects the accumulated costs recognised to date on unexercised share options. Foreign currency translation reserve reflects exchange differences arising on translating net assets and results of overseas operations into sterling. |
20. | POST BALANCE SHEET EVENTS |
In May 2024 Precision Resource Group Limited participated in formation of Precision Resource Group Germany GmBH with registered office in Munich, Germany. Precision Resource Group Limited subscribed to 100% of shares of Precision Resource Group Germany GmBH totalling to 25,000 euro. |
In July 2024 Precision Resource Group Limited acquired 10 shares (10.5% of ordinary shares) of W A Chump & Sons Associates Limited with registered office in Kent, England. The cost of investment of £120,000 was paid in cash. The principal activity of W A Chump & Sons Associates Limited is management consultancy. |
21. | SHARE-BASED PAYMENT TRANSACTIONS |
During the year a total of 34,600 new share options were issued to members of staff with an exercise price of £6.25. Each of these vest only upon an exit event. In the previous year, 25,500 options were issued with an exercise price of £1.47. |
The directors have considered the options in issue and the uncertainties in the timing of the options that might vest in the future, and using the Black Scholes Merton model have determined that the related notional cost this year is £100,000 (2023 - £89,861). This has been recognised in these accounts and taken to the Share option reserve. |