Company registration number 12418119 (England and Wales)
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
COMPANY INFORMATION
Directors
Mr E S Wood
Mr J F Willuhn
Ms C J Filek
Mr A Javed
(Appointed 26 September 2024)
Company number
12418119
Registered office
1st Floor, 27-33 Bethnal Green Road
London
E1 6LA
Auditor
Sumer Audit
5 Peveril Court
6-8 London Road
Crawley
West Sussex
RH10 8JE
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 30
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the year ended 31 March 2023.
Review of the business
The company continued to be that of a holding company during the year. The group continued to provide staffing for global events in the UK, USA and Europe.
The group incurred an operating loss in the year to 31 March 2023 of £1,864,280 (2022: profit £1,904,406) on turnover of £24,490,672 (2022: £35,571,402). Gross profit decreased by 2.4% to £8,565,551 (2022: £8,778,272) during the year.
The group was impacted in the year by the downturn in staffing requirements as a result of the COVID-19 pandemic coming to an end - the group had previously provided staffing to COVID-19 related facilities during the pandemic which had all closed by March 2022. These events were not immediately replaced by alternative events or revenue stream due to the slow return to 'business as usual' in our target markets. In addition to this, the group invested in the French market to take advantage of the expected large increase in events in the coming years, primarily relating to the Paris 2024 Summer Olympics.
Principal risks and uncertainties
The directors consider the principal risks facing the company and group result from the decline in the pandemic staffing requirement, the loss of significant customers, competitor activity, maintaining operational efficiency and the availability and price of labour in relevant locations. The group continues to take sufficient action to mitigate its exposure to such risks as far as it is reasonably possible through regular communications and forecasting with suppliers, customers and employees.
Development and performance
The directors consider sustainability as both a responsibility and an opportunity. The company and group are clear about environmental responsibility and the health and safety of employees. The focus on sustainability has made the directors aware of many opportunities - for the environment, for employees and for society at large and the group currently holds the Ecovadis silver certification and are working towards gold.
Key performace indicators
Financial key performance indicator | | | | |
| | | | |
Gross profit per admin employee | | | | |
Operating (loss) / profit | | | | |
| | | | |
Non financial key performance indicators | | | | |
Total average admin employees | | | | |
Mr E S Wood
Director
7 February 2025
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company was that of a holding company. The principal activities of the group continued to be that of the provision staffing resources for global events. A detailed review of the business is included in the Strategic Report.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £455,339. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr E S Wood
Mr J F Willuhn
Ms C J Filek
Mr A Javed
(Appointed 26 September 2024)
Financial instruments
Liquidity risk
The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk
The group is exposed to changes in interest rates. These changes would affect the interest paid on borrowings and on interest generated on cash balances. This is managed through management closely monitoring the market and preparing cash flow forecasts.
Foreign currency risk
The group’s principal foreign currency exposures arise from trading with overseas companies. Group policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling.
Credit risk
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Research and development
The group undertakes research and development activity in respect of software that the group utilizes for business activities.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
Employee involvement
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Future developments
There are no future developments that the directors believe should be disclosed in the financial statements.
Auditor
Sumer Audit were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, The auditor, Sumer Audit, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
On behalf of the board
Mr E S Wood
Director
7 February 2025
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 group and company, 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
- 5 -
Qualified opinion on financial statements
We have audited the financial statements of Elevate Staffing Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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:
give a true and fair view of the state of the 's and the parent company's affairs as at 31 March 2023 and of the group's loses 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 qualified opinion
The comparative figures of the company and group 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 for the company and group:
the cut-off of income and expenditure; and
the balances recorded in the cash flow statement; and
the balances and staff numbers recorded in the employee disclosure note (including current year disclosures); and
the existence and value of £3,354,460 of accruals and deferred income included within creditors; and
the existence and value of £479,012 of prepayments and accrued income included in debtors; and
the existence and value of £171,815 of other debtors included in debtors; and
the existence and value of £910,347 of other creditors included in creditors; and
the value of £30,625 of amounts included in fixed asset investments (in the company only).
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 or strategic 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 group and parent 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.
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
- 6 -
Material uncertainty relating to going concern
We draw attention to note 1.3 in the financial statements, which explains that the group has a net current liability and net liability position. Furthermore it explains that the group is reliant on a loan that was obtained post-year end converting into shares rather than being repaid. As stated in this note 1.3 these conditions indicate that uncertainty exists that may cast doubt on the group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning certain balances recorded in the comparative figures and of the cut-off of income and expenditure in the current and comparative period. We have concluded that where the other information relates to these or related balances, it may be materially misstated for the same reason.
Opinions on other matters prescribed by the Companies Act 2006
Except for the possible effects of the matters described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In respect solely of the limitation on our work relating to the comparative matters included in our basis for qualified opinion paragraph above:
we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
we were unable to determine whether adequate accounting records had been maintained by the company or group.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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.
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
- 7 -
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
Obtaining an understanding of the legal and regulatory framework that the company and group operates in, focusing on those laws and regulations that had a direct effect on the financial statements and operations;
Obtaining an understanding of the company and group's policies and procedures on fraud risks, including
knowledge of any actual, suspected or alleged fraud; and
As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: employment law and compliance with the UK Companies Act.
In addition to the above, our procedures to respond to risks identified included the following:
Making enquiries of management about any known or suspected instances of non-compliance with laws and regulations and fraud;
Reviewing minutes of meetings of the board and senior management;
Challenging assumptions and judgements made by management in their significant accounting estimates; and
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
- 8 -
Other matters which we are required to address
The company and group were exempt from the requirements to have an audit for the period ended 31 March 2022. Therefore the corresponding figures are unaudited.
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.
Kristina Perry FCCA (Senior Statutory Auditor)
For and on behalf of Sumer Audit
7 February 2025
Chartered Accountants
Statutory Auditor
Crawley
Sumer Audit is the trading name of Sumer Auditco Limited
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
24,490,672
35,571,402
Cost of sales
(15,925,121)
(26,793,130)
Gross profit
8,565,551
8,778,272
Administrative expenses
(10,366,906)
(7,078,164)
Other operating income
19,436
204,298
Exceptional item
4
(82,361)
Operating (loss)/profit
5
(1,864,280)
1,904,406
Interest receivable and similar income
4,985
1,082
Interest payable and similar expenses
9
(94,308)
(486)
Amounts written off loans
10
132,511
-
(Loss)/profit before taxation
(1,821,092)
1,905,002
Tax on (loss)/profit
11
276,839
(392,507)
(Loss)/profit for the financial year
25
(1,544,253)
1,512,495
Other comprehensive income
Currency translation loss taken to retained earnings
(107,546)
(707)
Total comprehensive income for the year
(1,651,799)
1,511,788
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
GROUP BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
8,700
9,788
Other intangible assets
13
754,480
432,274
Total intangible assets
763,180
442,062
Tangible assets
14
123,703
63,345
886,883
505,407
Current assets
Debtors
17
2,668,974
4,463,053
Cash at bank and in hand
695,736
368,529
3,364,710
4,831,582
Creditors: amounts falling due within one year
18
(7,346,038)
(6,393,846)
Net current liabilities
(3,981,328)
(1,562,264)
Total assets less current liabilities
(3,094,445)
(1,056,857)
Creditors: amounts falling due after more than one year
19
(22,500)
(32,500)
Provisions for liabilities
Provisions
21
68,000
Deferred tax liability
22
16,317
4,767
(84,317)
(4,767)
Net liabilities
(3,201,262)
(1,094,124)
Capital and reserves
Called up share capital
24
50,000
50,000
Other reserves
25
(28,911)
(28,911)
Profit and loss reserves
25
(3,222,351)
(1,115,213)
Total equity
(3,201,262)
(1,094,124)
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:
07 February 2025
Mr E S Wood
Director
Company registration number 12418119 (England and Wales)
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
15
61,507
92,132
Current assets
Debtors
17
3,500
3,500
Cash at bank and in hand
1,433
3,500
4,933
Creditors: amounts falling due within one year
18
(14,330)
(49,433)
Net current liabilities
(10,830)
(44,500)
Net assets
50,677
47,632
Capital and reserves
Called up share capital
24
50,000
50,000
Profit and loss reserves
25
677
(2,368)
Total equity
50,677
47,632
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £458,384 (2022 - £2,689,902 profit).
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:
07 February 2025
Mr E S Wood
Director
Company registration number 12418119 (England and Wales)
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
1
-
65,173
65,174
Year ended 31 March 2022:
Profit for the year
-
-
1,512,495
1,512,495
Other comprehensive income:
Currency translation differences
-
-
(707)
(707)
Total comprehensive income
-
-
1,511,788
1,511,788
Issue of share capital
24
49,999
-
-
49,999
Dividends
12
-
-
(2,692,174)
(2,692,174)
Merger reserve arising on acquisition
-
(28,911)
-
(28,911)
Balance at 31 March 2022
50,000
(28,911)
(1,115,213)
(1,094,124)
Year ended 31 March 2023:
Loss for the year
-
-
(1,544,253)
(1,544,253)
Other comprehensive income:
Currency translation differences
-
-
(107,546)
(107,546)
Total comprehensive income
-
-
(1,651,799)
(1,651,799)
Dividends
12
-
-
(455,339)
(455,339)
Balance at 31 March 2023
50,000
(28,911)
(3,222,351)
(3,201,262)
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2021
1
1
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
2,689,902
2,689,902
Issue of share capital
24
49,999
-
49,999
Dividends
12
-
(2,692,270)
(2,692,270)
Balance at 31 March 2022
50,000
(2,368)
47,632
Year ended 31 March 2023:
Profit and total comprehensive income
-
458,384
458,384
Dividends
12
-
(455,339)
(455,339)
Balance at 31 March 2023
50,000
677
50,677
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
774,112
1,920,553
Interest paid
(94,308)
(486)
Income taxes paid
(204,390)
(170,209)
Net cash inflow from operating activities
475,414
1,749,858
Investing activities
Purchase of intangible assets
(622,825)
(280,259)
Purchase of tangible fixed assets
(105,325)
(59,468)
Proceeds from disposal of tangible fixed assets
2,350
-
Purchase of subsidiaries, net of cash acquired
-
15,315
Interest received
4,985
1,082
Net cash used in investing activities
(720,815)
(323,330)
Financing activities
Proceeds from issue of shares
-
6,000
Proceeds from borrowings
1,145,451
-
Repayment of bank loans
(10,000)
(7,500)
Dividends paid to equity shareholders
(455,339)
(2,692,174)
Net cash generated from/(used in) financing activities
680,112
(2,693,674)
Net increase/(decrease) in cash and cash equivalents
434,711
(1,267,146)
Cash and cash equivalents at beginning of year
368,529
1,636,382
Effect of foreign exchange rates
(107,546)
(707)
Cash and cash equivalents at end of year
695,694
368,529
Relating to:
Cash at bank and in hand
695,736
368,529
Bank overdrafts included in creditors payable within one year
(42)
-
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
1
Accounting policies
Company information
Elevate Staffing Group Limited (“the company”) is a private limited company domiciled and 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.
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.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
1.2
Basis of consolidation
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.
The consolidated financial statements incorporate those of Elevate Staffing Group Limited and its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). All financial statements are made up to 31 March 2023. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.
1.3
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 and group's current financial position, including the net current liabilities and net liabilities reported in the group figures at the reporting date as well as forecasted cash flows and the availability of financial resources.
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. Furthermore, after the reporting date the company identified that one of the overseas subsidiaries had under-reported taxes to the relevant authority. A total amount of £1.8million is due and the payment period is currently under negotiation.
The company’s and group's going concern status has been assessed on the basis of the conversion of the loan into shares, and that the overseas subsidiary will obtain an extension on the payment plan with the local authorities. 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.
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.4
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.
1.5
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Software
33% straight line per annum
Software development costs
33% straight line per annum
Other assets
20% straight line per annum
1.8
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:
Plant and equipment
33% straight line per annum
Fixtures and fittings
10% to 33% straight line per annum
IT equipment
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 recognised in the profit and loss account.
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.9
Fixed asset investments
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.10
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.11
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.
1.12
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
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.
1.13
Equity instruments
Equity instruments issued by the group 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 group.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
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.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
1.15
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group 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.
1.16
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.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
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 leased asset are consumed.
1.19
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Rendering of services
24,490,672
35,571,402
2023
2022
£
£
Turnover analysed by geographical market
UK
4,694,778
14,322,637
Europe
2,941,711
5,357,424
Rest of World
16,854,183
15,891,341
24,490,672
35,571,402
4
Exceptional item
2023
2022
£
£
Expenditure
Intercompany loan impairments
19,361
-
Defalcation
63,000
-
82,361
-
The intercompany loan impairment relates to the impairment of an amount receivable from a US based subsidiary, Be Found US Inc. This subsidiary has not been included in these consolidated accounts due to it being immaterial to the group which is why the impairment is reflected in the group figures.
Post year-end the company identified that an employee committed fraud. The cost of this fraud to the
company has been quantified as disclosed above.
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
5
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(40,412)
96,819
Depreciation of owned tangible fixed assets
44,967
28,739
Profit on disposal of tangible fixed assets
(2,350)
-
Amortisation of intangible assets
301,707
200,620
Operating lease charges
350,053
265,880
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
60,000
-
7
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Field
968
832
-
-
Admin
86
98
3
3
Total
1,054
930
3
3
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
6,209,815
12,373,159
Social security costs
839,461
926,698
-
-
Pension costs
256,889
102,544
7,306,165
13,402,401
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
20,040
28,800
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
82,216
486
Other interest
12,092
-
Total finance costs
94,308
486
10
Amounts written off investments
2023
2022
£
£
Amounts written back to current loans
132,511
-
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
301,192
Adjustments in respect of prior periods
(301,192)
Total UK current tax
(301,192)
301,192
Foreign current tax on profits for the current period
12,803
90,309
Total current tax
(288,389)
391,501
Deferred tax
Origination and reversal of timing differences
11,550
1,006
Total tax (credit)/charge
(276,839)
392,507
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
11
Taxation
(Continued)
- 22 -
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
(Loss)/profit before taxation
(1,821,092)
1,905,002
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(346,007)
361,950
Tax effect of expenses that are not deductible in determining taxable profit
16,858
Adjustments in respect of prior years
(36,721)
Permanent capital allowances in excess of depreciation
186
(1,335)
Amortisation on assets not qualifying for tax allowances
41,117
16,234
Research and development tax credit
(336,771)
(132,303)
Other permanent differences
(25,622)
147,961
Research and development not recognised
303,565
Difference in tax rates
106,556
Taxation (credit)/charge
(276,839)
392,507
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
455,339
2,692,270
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
13
Intangible fixed assets
Group
Goodwill
Software
Software development costs
Other assets
Total
£
£
£
£
£
Cost
At 1 April 2022
10,876
373,679
384,799
181,443
950,797
Additions - internally developed
617,209
617,209
Additions - separately acquired
5,616
5,616
Disposals
(181,443)
(181,443)
At 31 March 2023
10,876
379,295
1,002,008
1,392,179
Amortisation and impairment
At 1 April 2022
1,088
207,853
127,421
172,373
508,735
Amortisation charged for the year
1,088
74,692
216,404
9,523
301,707
Disposals
(181,443)
(181,443)
At 31 March 2023
2,176
282,545
343,825
453
628,999
Carrying amount
At 31 March 2023
8,700
96,750
658,183
(453)
763,180
At 31 March 2022
9,788
165,826
257,378
9,070
442,062
The company had no intangible fixed assets at 31 March 2023 or 31 March 2022.
14
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
IT equipment
Total
£
£
£
£
Cost
At 1 April 2022
116,780
55,468
89,928
262,176
Additions
68,822
6,879
29,624
105,325
Disposals
(16,205)
(16,205)
At 31 March 2023
185,602
46,142
119,552
351,296
Depreciation and impairment
At 1 April 2022
93,157
47,046
58,628
198,831
Depreciation charged in the year
27,907
5,355
11,705
44,967
Eliminated in respect of disposals
(16,205)
(16,205)
At 31 March 2023
121,064
36,196
70,333
227,593
Carrying amount
At 31 March 2023
64,538
9,946
49,219
123,703
At 31 March 2022
23,623
8,422
31,300
63,345
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
14
Tangible fixed assets
(Continued)
- 24 -
The company had no tangible fixed assets at 31 March 2023 or 31 March 2022.
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
61,507
92,132
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 and 31 March 2023
92,132
Impairment
At 1 April 2022
-
Impairment losses
30,625
At 31 March 2023
30,625
Carrying amount
At 31 March 2023
61,507
At 31 March 2022
92,132
16
Subsidiaries
Details of the company's subsidiaries at 31 March 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Elevate Staffing Limited
27-33 Bethnal Green Road, London, E1 6LA
Ordinary
100.00
Be Found Talent Limited
27-33 Bethnal Green Road, London, E1 6LA
Ordinary
100.00
Elevate Staffing Inc
675 Ponce De Leon Ave NE, Atlanta, GA 30308, United States
Ordinary
100.00
Elevate Staffing SAS
9 Rue Des Colonnes, 75002 Paris, France
Ordinary
100.00
Elevate Staffing GmbH at
Wienerbergstrasse 9, 1100 Wien, Austria
Ordinary
100.00
Elevate Staffing GmbH
Stubenrauchstr. 72, 12161 Berlin, Germany
Ordinary
100.00
Be Found Talent Limited is exempt from the requirement relating to the audit of the financial statements under Section 479A of the Companies Act 2006.
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,566,736
3,641,000
Gross amounts owed by contract customers
114,049
194,209
Corporation tax recoverable
97,616
12,683
Amounts owed by group undertakings
75,744
-
-
-
Other debtors
274,787
136,149
3,500
3,500
Prepayments and accrued income
540,042
479,012
2,668,974
4,463,053
3,500
3,500
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
10,042
10,000
3
Other borrowings
20
1,145,451
Trade creditors
740,247
263,359
Amounts owed to group undertakings
14,327
48,131
Corporation tax payable
161,333
569,179
Other taxation and social security
552,878
967,015
-
-
Other creditors
1,501,533
1,036,561
1,302
Accruals and deferred income
3,234,554
3,547,732
7,346,038
6,393,846
14,330
49,433
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
22,500
32,500
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
32,500
42,500
Bank overdrafts
42
3
Other borrowings
1,145,451
1,177,993
42,500
3
-
Payable within one year
1,155,493
10,000
3
Payable after one year
22,500
32,500
Included within other borrowings is £29,430 (2022: £nil) paid in advance to the group 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 subsidiary, Elevate Staffing Limited.
The bank loan is secured by way of fixed and floating charge over the assets of the subsidiary, Elevate Staffing Limited. 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. 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 the company.
Also included within other loans is a loan 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.
Also included within other borrowings is an FSW funding agreement. This has a total facility of $2,000,000 available, and at the year-end date the company is utilising funds of £736,855 (2022 - £nil). APR is charged at 8.5% and is repayable within 60 days of drawdown.
21
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Provisions for employment tribunals
68,000
-
-
-
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
21
Provisions for liabilities
(Continued)
- 27 -
Movements on provisions:
Provisions for employment tribunals
Group
£
Additional provisions in the year
68,000
22
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
16,317
4,767
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 April 2022
4,767
-
Charge to profit or loss
11,550
-
Liability at 31 March 2023
16,317
-
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
256,889
102,544
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 5p each
505,377
505,377
25,269
25,269
B Ordinary shares of 5p each
135,000
135,000
6,750
6,750
C Ordinary shares of 5p each
14,623
14,623
731
731
D Ordinary shares of 5p each
200,000
200,000
10,000
10,000
E Ordinary shares of 5p each
60,000
60,000
3,000
3,000
F Ordinary shares of 5p each
25,000
25,000
1,250
1,250
G Ordinary shares of 5p each
25,000
25,000
1,250
1,250
H Ordinary shares of 5p each
20,000
20,000
1,000
1,000
I Ordinary shares of 5p each
15,000
15,000
750
750
1,000,000
1,000,000
50,000
50,000
25
Reserves
Profit and loss reserves
Retained earnings represent cumulative profit and loss net of distribution to owners.
Merger reserve
The merger reserves represent reserves arising on group reorganisations and acquisitions of wholly owned subsidiaries.
26
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
407,950
187,641
-
-
Between two and five years
179,328
36,360
-
-
587,278
224,001
-
-
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
27
Events after the reporting date
On 15 December 2023 the company varied the rights attached to certain shares as follows:
C Ordinary Shares of £0.05 had voting rights and the right to the first £1,000,000 of capital return removed.
A Ordinary Shares of £0.05 were given the entitlement to a proportion of capital return originally held by the holder of C Shares.
On 15 December 2023 the company redesignated shares as follows:
On 26 September 2024 the company redesignated shares as follows:
6,802 E Ordinary Shares of £0.05 each into 6,802 B Ordinary Shares of £0.05 each
900 E Ordinary Shares of £0.05 each into 900 H Ordinary Shares of £0.05 each
2,900 G Ordinary Shares of £0.05 each into 2,900 H Ordinary Shares of £0.05 each
1,500 E Ordinary Shares of £0.05 each into 1,500 D Ordinary Shares of £0.05 each
12,270 F Ordinary Shares of £0.05 each into 12,270 D Ordinary Shares of £0.05 each
600 G Ordinary Shares of £0.05 each into 600 D Shares of £0.05 each
798 E Ordinary Shares of £0.05 each into 798 A Ordinary Shares of £0.05 each
2,730 F Ordinary Shares of £0.05 each into 2,730 A Ordinary Shares of £0.05 each.
21,500 G Ordinary Shares of £0.05 each into 21,500 A Ordinary Shares of £0.05 each
On 26 September 2024 the company allotted shares as follows:
On 11 September 2024 the company, Elevate Staffing Group Limited, entered into a loan agreement with JMMK Investments Limited. The loan is secured by a fixed charge over the assets of this company and Elevate Staffing Limited.
At the reporting date the company was a party in ongoing employment tribunal cases. Subsequently 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, see note 28.
After the balance sheet date, the assets of Elevate Staffing GmBH Austria were trasfnerred to Elevate Staffing GmBH Germany and the Austrian premises were vacated with the intention of future contracts being serviced via the German office.
28
Related party transactions
During the year the group received loans from directors amounting to £170,000 (2022: £nil). At the
reporting date the group owed the directors £157,361 (2022: £nil) in respect of these loans.
ELEVATE STAFFING GROUP LTD AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
29
Cash generated from group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(1,544,253)
1,512,495
Adjustments for:
Taxation (credited)/charged
(276,839)
392,507
Finance costs
94,308
486
Investment income
(4,985)
(1,082)
Gain on disposal of tangible fixed assets
(2,350)
-
Amortisation and impairment of intangible assets
301,707
200,620
Depreciation and impairment of tangible fixed assets
44,967
28,739
Other gains and losses
(132,511)
-
Increase in provisions
68,000
-
Movements in working capital:
Decrease in debtors
1,879,012
3,975,846
Increase/(decrease) in creditors
347,056
(4,189,058)
Cash generated from operations
774,112
1,920,553
30
Analysis of changes in net funds/(debt) - group
1 April 2022
Cash flows
Exchange rate movements
31 March 2023
£
£
£
£
Cash at bank and in hand
368,529
434,753
(107,546)
695,736
Bank overdrafts
(42)
-
(42)
368,529
434,711
(107,546)
695,694
Borrowings excluding overdrafts
(42,500)
(1,135,451)
-
(1,177,951)
326,029
(700,740)
(107,546)
(482,257)
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