Contractor Umbrella Limited 04324081 false 2023-05-01 2024-04-30 2024-04-30 The principal activity of the company is that of a contracting umbrella company. Digita Accounts Production Advanced 6.30.9574.0 true true true Class 1 Class 2 Class 3 false true 04324081 2023-05-01 2024-04-30 04324081 2024-04-30 04324081 bus:OrdinaryShareClass1 bus:Non-cumulativeShares 2024-04-30 04324081 bus:Consolidated 2024-04-30 04324081 core:AcceleratedTaxDepreciationDeferredTax 2024-04-30 04324081 core:RetainedEarningsAccumulatedLosses 2024-04-30 04324081 core:ShareCapital 2024-04-30 04324081 core:CurrentFinancialInstruments 2024-04-30 04324081 core:CurrentFinancialInstruments core:WithinOneYear 2024-04-30 04324081 core:WithinOneYear 2024-04-30 04324081 core:FurnitureFittingsToolsEquipment 2024-04-30 04324081 bus:FRS102 2023-05-01 2024-04-30 04324081 bus:Audited 2023-05-01 2024-04-30 04324081 bus:FullAccounts 2023-05-01 2024-04-30 04324081 bus:RegisteredOffice 2023-05-01 2024-04-30 04324081 bus:CompanySecretaryDirector1 2023-05-01 2024-04-30 04324081 bus:OrdinaryShareClass1 bus:Non-cumulativeShares 2023-05-01 2024-04-30 04324081 bus:Consolidated 2023-05-01 2024-04-30 04324081 bus:PrivateLimitedCompanyLtd 2023-05-01 2024-04-30 04324081 bus:Agent1 2023-05-01 2024-04-30 04324081 countries:UnitedKingdom 2023-05-01 2024-04-30 04324081 core:ReportableOperatingSegment1 2023-05-01 2024-04-30 04324081 core:ReportableOperatingSegment2 2023-05-01 2024-04-30 04324081 core:ReportableOperatingSegment3 2023-05-01 2024-04-30 04324081 core:FurnitureFittingsToolsEquipment 2023-05-01 2024-04-30 04324081 core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity 2023-05-01 2024-04-30 04324081 core:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl core:SettlementLiabilities 2023-05-01 2024-04-30 04324081 core:OtherRelatedParties core:SettlementLiabilities 2023-05-01 2024-04-30 04324081 core:UKTax 2023-05-01 2024-04-30 04324081 1 2023-05-01 2024-04-30 04324081 countries:EnglandWales 2023-05-01 2024-04-30 04324081 2023-04-30 04324081 core:FurnitureFittingsToolsEquipment 2023-04-30 04324081 2022-05-01 2023-04-30 04324081 2023-04-30 04324081 bus:OrdinaryShareClass1 bus:Non-cumulativeShares 2023-04-30 04324081 core:AcceleratedTaxDepreciationDeferredTax 2023-04-30 04324081 core:RetainedEarningsAccumulatedLosses 2023-04-30 04324081 core:ShareCapital 2023-04-30 04324081 core:CurrentFinancialInstruments 2023-04-30 04324081 core:CurrentFinancialInstruments core:WithinOneYear 2023-04-30 04324081 core:WithinOneYear 2023-04-30 04324081 core:FurnitureFittingsToolsEquipment 2023-04-30 04324081 core:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2023-04-30 04324081 core:OtherRelatedParties 2023-04-30 04324081 countries:UnitedKingdom 2022-05-01 2023-04-30 04324081 core:UKTax 2022-05-01 2023-04-30 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 04324081

Contractor Umbrella Limited

Annual Report and Financial Statements

for the Year Ended 30 April 2024

 

Contractor Umbrella Limited

Contents

Company Information

1

Strategic Report

2 to 3

Director's Report

4 to 5

Independent Auditor's Report

6 to 9

Profit and Loss Account and Statement of Retained Earnings

10

Balance Sheet

11

Notes to the Financial Statements

12 to 19

 

Contractor Umbrella Limited

Company Information

Director

Mr S J Dolan

Company secretary

Mr S J Dolan

Registered office

Unit 36
Silk Mill Industrial Estate
Brook Street
Tring
Hertfordshire
HP23 5EF

Auditors

Xeinadin Audit Limited
Chartered AccountantsLeavesden Park
5 Hercules Way
Watford
Hertfordshire
WD25 7GS

 

Contractor Umbrella Limited

Strategic Report for the Year Ended 30 April 2024

The director presents his strategic report for the year ended 30 April 2024.

Principal activity

The principal activity of the company is that of a contracting umbrella company.

Fair review of the business

The results for the year show a 24.59% decrease in turnover. This is due to the loss of a contractor base, with the average contractor number being down from 954 in the prior year to 682 in the current year. We have seen an increase in gross profit by 117%, due to adjustments made to agency margins.

The company posted a profit for the year which is in line with increase in gross profits.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Turnover

£

94,810,335

125,722,633

Gross Profit

£

695,978

319,506

Gross Profit %

%

1

Administration Expenses

£

729,350

709,692

Operating Loss

£

(32,052)

(389,886)

Profit/(Loss) for the financial year

£

179,139

(250,023)

Principal risks and uncertainties

The directors understand the need to manage the risks to the company and continue to monitor trading performance on a regular basis and consider the following matters to be the principal risks and uncertainties.

In relation to the key financial risks on price, credit, liquidity, and cash flow, the directors have familiarised themselves with the concepts of these risks and have assessed that at this time there is no significant exposure to the company.

The company has no option but to tailor its operations according to the requirements of HMRC. Agency workers and recruitment agencies, which make up the core customer base of the business, are subject to considerable legislation and much of the practical compliance with this legislation is passed to umbrella companies.

The business is at risk if it does not keep up to date with changes to said legislation as well as the introduction of new regulations; recruitment agencies will not work with non-compliant companies and there is an ever present risk of investigation from HMRC. Contractor Umbrella has mitigated these risks by retaining the services of an industry specialist firm of solicitors and undertaking industry audits to confirm compliance.

Financial risks to the business are few, as receipts from recruitment agencies are not passed to contractors and HMRC until received by the company. Even so, to mitigate this risk, due diligence checks are carried out internally when we commence trading with a new recruitment agency or end client.

Our sister company, Dolan Accountancy, enables Contractor Umbrella to offer a fully rounded offering to contractors. We now have the added benefit of our “switching service” for those contractors who operate both inside and outside IR35 for assignments.

The directors will continue to improve the company’s processes and explore other areas for expansion. The directors will continue to monitor the company’s activities to address any significant risks that do arise to ensure these are minimised to the maximum possible extent.

 

Contractor Umbrella Limited

Strategic Report for the Year Ended 30 April 2024


Companies Act 2006 section 172 reporting

Under Section 172 of the Companies Act 2006, the director has a duty to promote the success of the company for the benefit of its members as a whole, having regard to the interests of other stakeholders in the
company, such as suppliers, and to do so with an understanding of the impact on the community and environment and with high standards of business conduct, which includes acting fairly between members of
the company.

The director is conscious of these wider responsibilities in the way he promotes the company's culture and ensures, as part of its regular oversight, that the integrity of the company's affairs is foremost in the way the
activities are managed and promoted. This includes being alert to issues that might damage the company's standing in the way it operates. The director recognises the importance of his environmental responsibilities,
monitors its impact on the environment, and designs and implements policies to reduce any damage that might be caused wherever possible. Initiatives include recycling and reducing energy consumption.

The company has a number of stakeholders and believes it is important to engage with them widely. The main stakeholder relationships are with customers, employees, regulators and shareholders. Customers lie at the
heart of the business and understanding their needs is an integral part of providing a relevant and up to date product offering that will attract a growing number of new customers and assist customer retention. The
company values exceptional customer service. Employees are the key asset to support the company's objectives. They understand the obligations that come with working in this industry, operating with integrity
and with respect for customers, regulators and other stakeholders.

The director is fully engaged in both oversight and the general strategic direction of the company which is set out in the annual business plan. During the year the director's main strategic plans focussed around growing
the list of agencies we currently work with whilst continuing to offer excellent service to further grow our contractor base. The director remains confident in the prospects of the business going forward. Future
success and value creation will be mainly based on increasing contractor numbers.

Approved and authorised by the director on 30 January 2025
 

.........................................
Mr S J Dolan
Company secretary and director

 

Contractor Umbrella Limited

Director's Report for the Year Ended 30 April 2024

The director presents his report and the financial statements for the year ended 30 April 2024.

Director of the company

The director who held office during the year was as follows:

Mr S J Dolan - Company secretary and director

Financial instruments

Objectives and policies

The company will continue drive for sustainable growth in revenues, gaining new clients and continuing to focus on robust procedures and compliance.

Price risk, credit risk, liquidity risk and cash flow risk

The company faces limited credit risk as the vast majority of the client base are not extended any credit terms. There is limited price risk due to the transactional nature of the business but the company manages this by ensuring that the service provision is high quality and represents value for money at all times.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficient activities.

Statement of director's responsibilities

The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Disclosure of information to the auditors

The director has taken 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 company's auditors are aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.

 

Contractor Umbrella Limited

Director's Report for the Year Ended 30 April 2024

Reappointment of auditors

The auditors Xeinadin Audit Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved and authorised by the director on 30 January 2025
 

.........................................
Mr S J Dolan
Company secretary and director

 

Contractor Umbrella Limited

Independent Auditor's Report to the Members of Contractor Umbrella Limited

Opinion

We have audited the financial statements of Contractor Umbrella Limited (the 'company') for the year ended 30 April 2024, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, and 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 company's affairs as at 30 April 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 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 director's 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 original financial statements were authorised for issue.

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

Other information

The director are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Contractor Umbrella Limited

Independent Auditor's Report to the Members of Contractor Umbrella Limited

Opinion on other matter 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Director's Report.

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, 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 director's remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of the director

As explained more fully in the statement of directors' responsibilities, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Contractor Umbrella Limited

Independent Auditor's Report to the Members of Contractor Umbrella Limited

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• 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 sector;
• 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 and data protection, anti-bribery, employment, environmental and health and safety legislation;
• we assessed the extent of compliance with the laws and regulations identified above through making enquiries 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.

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 judgements 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;
• reading the minutes of meetings of those charged with governance;
• enquiring of management as to actual and potential litigation and claims; and
• reviewing correspondence with HMRC, relevant regulators, and the company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

Contractor Umbrella Limited

Independent Auditor's Report to the Members of Contractor Umbrella Limited

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.

......................................
Philip Cole (Senior Statutory Auditor)
For and on behalf of Xeinadin Audit Limited
Chartered Accountants
Statutory Auditors
Leavesden Park
5 Hercules Way
Watford
Hertfordshire
WD25 7GS

30 January 2025

 

Contractor Umbrella Limited

Profit and Loss Account and Statement of Retained Earnings
for the Year Ended 30 April 2024

Note

2024
£

2023
£

Turnover

3

94,810,335

125,722,633

Cost of sales

 

(94,114,357)

(125,402,827)

Gross profit

 

695,978

319,806

Administrative expenses

 

(729,350)

(709,692)

Other operating income

4

1,320

-

Operating loss

5

(32,052)

(389,886)

Other interest receivable and similar income

6

211,212

90,154

Interest payable and similar charges

7

(21)

(31)

 

211,191

90,123

Profit/(loss) before tax

 

179,139

(299,763)

Taxation

10

-

49,740

Profit/(loss) for the financial year

 

179,139

(250,023)

Retained earnings brought forward

 

118,395

897,418

Dividends paid

 

(310,000)

(529,000)

Retained earnings carried forward

 

(12,466)

118,395

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Contractor Umbrella Limited

(Registration number: 04324081)
Balance Sheet as at 30 April 2024

Note

2024

2023

   

£

£

£

£

Fixed assets

   

 

Tangible assets

11

 

2,438

 

2,509

Current assets

   

 

Debtors

12

7,525,665

 

10,447,588

 

Cash at bank and in hand

 

4,999,304

 

6,208,252

 

 

12,524,969

 

16,655,840

 

Creditors: Amounts falling due within one year

14

(12,539,773)

 

(16,539,854)

 

Net current (liabilities)/assets

   

(14,804)

 

115,986

Net (liabilities)/assets

   

(12,366)

 

118,495

Capital and reserves

   

 

Called up share capital

100

 

100

 

Profit and loss account

(12,466)

 

118,395

 

Total equity

   

(12,366)

 

118,495

Approved and authorised by the director on 30 January 2025
 

.........................................
Mr S J Dolan
Company secretary and director

 

Contractor Umbrella Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 36
Silk Mill Industrial Estate
Brook Street
Tring
Hertfordshire
HP23 5EF

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The presentational currency of these accounts is £ Sterling and the level of rounding is to the nearest £.

Summary of disclosure exemptions

As the consolidated financial statements of D'Anconia Limited, the parent company, are prepared according to the full recognition, measurement and disclosure requirements of FRS 102 and therefore include equivalent disclosures, the company has taken the available exemptions under FRS 102 in respect of the following areas:
• Disclosures relating to the requirements of section 7 statement of cash flows;
• The disclosure requirements of section 11 and section 12, where disclosures equivalent to those required by FRS 102 are included in the consolidated financial statements of the Group; and
• Disclosures requirements of section 33 related party disclosures, regarding disclosure of related party transactions between wholly owned members of the same Group.

Going concern

The financial statements have been prepared on the going concern basis as Contractor Umbrella will be supported by the other companies within the group.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
Amounts receivable from processing the amounts payable to contractors are recognised on submission of contractor timesheets.

 

Contractor Umbrella Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Tax

The tax expense for the period comprises tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures, fittings and equipment

25% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Contractor Umbrella Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments.
 Recognition and measurement
Basic financial instruments are recognised at amortised cost.
 

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Rendering of services

94,810,335

125,722,633

The analysis of the company's Turnover for the year by market is as follows:

2024
£

2023
£

UK

94,810,335

125,722,633

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
£

2023
£

Miscellaneous other operating income

1,320

-

 

Contractor Umbrella Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

5

Operating loss

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

949

1,025

6

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

211,212

90,154

7

Interest payable and similar expenses

2024
£

2023
£

Interest expense on other finance liabilities

21

31

8

Staff costs

The aggregate payroll costs (including director's remuneration) were as follows:

2024
£

2023
£

Wages and salaries

76,424,986

107,258,410

Social security costs

9,770,983

13,648,830

Pension costs, defined contribution scheme

8,345,077

4,897,519

Other employee expense

32,191

8,019

94,573,237

125,812,778

The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:

2024
No.

2023
No.

Admin Employees

10

13

Contractors

682

954

692

967

9

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

20,000

36,250

Other fees to auditors

All other non-audit services

18,956

9,250

 

Contractor Umbrella Limited

Notes to the Financial Statements for the Year Ended 30 April 2024


 

10

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Deferred taxation

Arising from origination and reversal of timing differences

-

(49,740)

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 24.4% (2023 - 19.5%).

The differences are reconciled below:

2024
£

2023
£

Profit/(loss) before tax

179,139

(299,763)

Corporation tax at standard rate

43,710

(58,454)

Tax decrease from effect of capital allowances and depreciation

(17)

(398)

Effect of expense not deductible in determining taxable profit (tax loss)

-

20,054

Tax decrease from changes in tax provisions due to legislation

(43,693)

(10,942)

Total tax credit

-

(49,740)

Deferred tax

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Tax losses

49,740

-

49,740

-

2023

Asset
£

Liability
£

Tax losses

49,740

-

49,740

-

 

Contractor Umbrella Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

11

Tangible assets

Fixtures, fittings and equipment
£

Total
£

Cost or valuation

At 1 May 2023

18,663

18,663

Additions

878

878

At 30 April 2024

19,541

19,541

Depreciation

At 1 May 2023

16,154

16,154

Charge for the year

949

949

At 30 April 2024

17,103

17,103

Carrying amount

At 30 April 2024

2,438

2,438

At 30 April 2023

2,509

2,509

12

Debtors

Note

2024
£

2023
£

Trade debtors

 

2,513,354

4,389,634

Amounts owed by group undertakings

19

772,975

-

Other debtors

 

92,826

1,127,103

Prepayments

 

21,589

31,082

Accrued income

 

4,075,181

4,850,029

Deferred tax assets

10

49,740

49,740

 

7,525,665

10,447,588

13

Cash and cash equivalents

2024
£

2023
£

Cash at bank

4,999,304

6,208,252

 

Contractor Umbrella Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

14

Creditors

2024
£

2023
£

Due within one year

Trade creditors

191,012

143,775

Social security and other taxes

4,921,057

6,379,431

Outstanding defined contribution pension costs

976,488

1,059,547

Other creditors

10,475

8,999

Accruals

6,440,741

8,948,102

12,539,773

16,539,854

15

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £8,345,077 (2023 - £4,897,519).

Contributions totalling £976,488 (2023 - £1,059,547) were payable to the scheme at the end of the year and are included in creditors.

16

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary Shares of £1 each

100

100

100

100

       

17

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

-

3,720

-

3,720

The amount of non-cancellable operating lease payments recognised as an expense during the year was £Nil (2023 - £14,880).

 

Contractor Umbrella Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

18

Dividends

2024

2023

£

£

Interim dividend of £3,100.00 (2023 - £5,290.00) per ordinary share

310,000

529,000

 

 

19

Related party transactions

Summary of transactions with all entities with joint control or significant interest

During the year the company was invoiced £100,000 (2023: £100,000) by a company in which the director has significant control. Included within other debtors at the year end is a balance of £Nil (2023: £233,546) due from the company.

Income and receivables from related parties

2024

Key management
£

Other related parties
£

Settlement of liabilities

(272,000)

(734,521)

2023

Key management
£

Other related parties
£

Amounts receivable from related party

272,000

734,521

20

Parent and ultimate parent undertaking

The company's immediate parent is D'Anconia Limited, incorporated in England and Wales.

 The ultimate controlling party is Mr S Dolan.