Company registration number 05448806 (England and Wales)
ELEVATE STAFFING LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
ELEVATE STAFFING LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 10
ELEVATE STAFFING LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
3
658,183
257,378
Tangible assets
4
65,270
25,591
723,453
282,969
Current assets
Debtors
5
934,989
2,406,863
Cash at bank and in hand
102,270
202,557
1,037,259
2,609,420
Creditors: amounts falling due within one year
6
(4,085,834)
(2,719,020)
Net current liabilities
(3,048,575)
(109,600)
Total assets less current liabilities
(2,325,122)
173,369
Creditors: amounts falling due after more than one year
7
(22,500)
(32,500)
Provisions for liabilities
9
(84,317)
(4,767)
Net (liabilities)/assets
(2,431,939)
136,102
Capital and reserves
Called up share capital
10
4,900
4,900
Share premium account
(4,720)
(4,720)
Profit and loss reserves
(2,432,119)
135,922
Total equity
(2,431,939)
136,102

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 7 February 2025 and are signed on its behalf by:
Mr E S Wood
Director
Company registration number 05448806 (England and Wales)
ELEVATE STAFFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information

Elevate Staffing Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1st Floor, 27-33 Bethnal Green Road, London, E1 6LA.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Prior year adjustment - Profit and loss account reclassification

A prior year adjustment has been made to reclassify items between cost of sales and administrative expenses to better reflect the company's principal activity. The total reclassification amounts to £145,180. The adjustment had no impact on the balance sheet or on the profit reported in the comparative period.

 

Prior year adjustment - Balance Sheet reclassification

A prior year adjustment has been made to reclassify items between stock and debtors to better reflect the company's principal activity. The total reclassification amounts to £6,999. The adjustment had no impact on the net assets reported in the comparative period.

 

Prior year adjustment - Overstatement of income

A prior year adjustment has been made to reduce the amount of income recognised in the year ended 31 March 2022 as a consequence of income exceeding the level of costs incurred as a percentage of the total amount expected. The total adjustment amounts to £193,272 reducing the net assets reported in the comparative period.

1.2
Going concern

The directors have prepared the financial statements on a going concern basis. In making this assessment, the directors have considered the company’s current financial position, including its net current liabilities and net liabilities as at the reporting date as well as forecasted cash flows and the availability of financial resources.true

 

The company is reliant on support from other group subsidiaries to meet its obligations as they fall due, and on those companies to not recall or request payment of the amounts owed to them until the company has adequate resources to pay them. Additionally, in forecasting cash flows management has assumed that the loan received (post the reporting date) from JMMK Investments Limited of £5.2million will convert into shares if unpaid, in line with the loan agreement, or the term of the loan will be extended (via re-financing).

 

These factors indicate that the company’s going concern status is dependent on continued group support and the successful extension or conversion of the loan. Despite these conditions and the net current liabilities and net liabilities position, the directors have concluded that the going concern basis of preparation remains appropriate.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

ELEVATE STAFFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
1.4
Intangible fixed assets other than goodwill

Intangible assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. The company has adopted a policy of capitalising expenditure in the development phase when it meets the conditions set out in FRS 102.

Amortisation is recognised so as to write off the cost of the intangible assets less their residual values over their useful lives on the following bases:

Software development costs
33% straight line per annum
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computer equipment
33% straight line per annum
Fixtures and fittings
33% straight line per annum

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

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.

ELEVATE STAFFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

1.10
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

ELEVATE STAFFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was 291 (2022 - 346). This represents field staff of 247 (2022 - 308) and admin staff of 44 (2022 - 38).

3
Intangible fixed assets
Software development costs
£
Cost
At 1 April 2022
384,799
Additions - internally developed
617,209
At 31 March 2023
1,002,008
Amortisation and impairment
At 1 April 2022
127,421
Amortisation charged for the year
216,404
At 31 March 2023
343,825
Carrying amount
At 31 March 2023
658,183
At 31 March 2022
257,378
ELEVATE STAFFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
4
Tangible fixed assets
Computer equipment
Fixtures and fittings
Total
£
£
£
Cost
At 1 April 2022
116,780
6,902
123,682
Additions
68,822
294
69,116
At 31 March 2023
185,602
7,196
192,798
Depreciation and impairment
At 1 April 2022
93,157
4,934
98,091
Depreciation charged in the year
27,907
1,530
29,437
At 31 March 2023
121,064
6,464
127,528
Carrying amount
At 31 March 2023
64,538
732
65,270
At 31 March 2022
23,623
1,968
25,591
5
Debtors
2023
2022
as restated
Amounts falling due within one year:
£
£
Trade debtors
284,746
519,088
Amounts owed by group undertakings
374,653
1,674,867
Other debtors
275,590
212,908
934,989
2,406,863

Amounts owed by group undertakings have no terms and are therefore repayable on demand. Whilst the classification as current assets reflects the contractual nature of the loans, the company does not seek repayment of these loans until the entities are financially able to do so. This may be more than 12 months from the reporting date, as part of the company's ongoing financial support to the rest of the group.

ELEVATE STAFFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
8
10,000
10,000
Other borrowings
8
408,596
-
0
Trade creditors
299,874
59,621
Amounts owed to group undertakings
2,612,909
-
0
Corporation tax
12,092
301,192
Other taxation and social security
66,915
653,788
Other creditors
185,214
26,125
Accruals and deferred income
490,234
1,668,294
4,085,834
2,719,020

Amounts owed to group undertakings have no terms and are therefore repayable on demand. Whilst the classification as current assets reflects the contractual nature of the loans, the group companies will not seek repayment of these loans until the company is financially able to make repayment. This may be more than 12 months from the reporting date.

7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans
22,500
32,500
8
Loans and overdrafts
2023
2022
£
£
Bank loans
32,500
42,500
Other borrowings
408,596
-
0
441,096
42,500
Payable within one year
418,596
10,000
Payable after one year
22,500
32,500

Included within other borrowings is £29,430 (2022: £nil) paid in advance to the company in respect of items included in trade receivables as part of an invoice finance facility at the reporting date. This facility is secured against the assets of the company.

ELEVATE STAFFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
8
Loans and overdrafts
(Continued)
- 8 -

The bank loan is secured by way of fixed and floating charge over the assets of the company. Interest is charged on this loan at a fixed rate of 2.5% per annum.

 

Included within other borrowings is a revolving credit facility to cover working capital and liquidity commitments. The maximum drawdown available on this facility was £200,000 and at the reporting date the company had drawn down £183,333 (2022 - £nil) on this facility. Interest is charged every 30 days at 3.96% on any outstanding balance. The facility has no fixed duration and has therefore been recognised in full within creditors due in less than one year. The facility is unsecured.

 

Also included within other borrowings is a business loan with a balance at the reporting date of £145,833 (2022 - £nil). Interest is charged on this loan at a fixed rate of 31.08% per annum. The loan is repaid monthly and has been fully repaid post-year end. The loan was unsecured however a guarantee was provided by a director and an entity within the same group.

 

Also included within other loans is a borrowings from an unrelated third party totaling £50,000 (2022 - £nil). The loan was subject to 5% interest and has been fully repaid post-year end. The loan was unsecured.

9
Provisions for liabilities
2023
2022
£
£
Employment tribunal cases
68,000
-
Deferred tax liabilities
16,317
4,767
84,317
4,767
10
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 5p each
60,540
60,540
3,027
3,027
Ordinary B shares of 5p each
27,660
27,660
1,383
1,383
Ordinar C shares of 5p each
9,800
9,800
490
490
98,000
98,000
4,900
4,900
11
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was qualified and the auditor reported as follows:

ELEVATE STAFFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
11
Audit report information
(Continued)
- 9 -

Qualified opinion on financial statements

We have audited the financial statements of Elevate Staffing Limited (the 'company') for the year ended 31 March 2023 which comprise , the balance sheet 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

Basis for qualified opinion

The comparative figures of the company were unaudited. We have performed specific audit procedures in relation to these figures in respect of them being opening balances for the year ended 31 March 2023 for which our audit opinion is provided. However we were unable to obtain sufficient appropriate audit evidence to substantiate the following comparative figures

 

 

Consequently, we have been unable to determine whether any adjustments are required to these amounts included within the comparative figures. In addition, were any adjustments to these balances required, the directors report may also need to be amended.

 

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 qualified opinion.

Senior Statutory Auditor:
Kristina Perry FCCA
Statutory Auditor:
Sumer Audit
Date of audit report:
7 February 2025
Sumer Audit is the trading name of Sumer Auditco Limited
12
Operating lease commitments
Lessee

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

2023
2022
£
£
25,211
126,056
ELEVATE STAFFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
13
Events after the reporting date

On 11 September 2024 the company's parent, Elevate Staffing Group Limited, entered into a loan agreement of £5.2m with JMMK Investments Limited. The loan is secured by a fixed charge over the assets of this company.

 

At the reporting date the company was a party in ongoing employment tribunal cases. Subsequent to the reporting date, total settlements paid out amounted to £68,000. A provision has been included in the financial statements for these amounts as they were known at the reporting date, included in note 10.

14
Related party transactions

During the year the company received loans from directors amounting to £170,000 (2022: £nil). At the reporting date the company owed the directors £157,361 (2022: £nil) in respect of these loans.

15
Parent company

The immediate and ultimate parent company is Elevate Staffing Group Limited, a company incorporated in England and Wales. The registered office is 27-33 Bethnal Green Road, 1st Floor, London, England, E1 6LA.

Elevate Staffing Group Limited prepares consolidated financial statements and copies can be obtained from Companies House.

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