Company registration number 06603684 (England and Wales)
SPECTRUM IT RECRUITMENT (SOUTH) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
PAGES FOR FILING WITH REGISTRAR
SPECTRUM IT RECRUITMENT (SOUTH) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
SPECTRUM IT RECRUITMENT (SOUTH) LIMITED
BALANCE SHEET
AS AT 31 MAY 2024
31 May 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
277,565
276,497
Current assets
Debtors
4
2,956,634
4,639,420
Cash at bank and in hand
111,643
176,826
3,068,277
4,816,246
Creditors: amounts falling due within one year
5
(1,558,995)
(2,211,909)
Net current assets
1,509,282
2,604,337
Total assets less current liabilities
1,786,847
2,880,834
Creditors: amounts falling due after more than one year
6
(45,377)
(115,821)
Provisions for liabilities
(32,788)
(69,123)
Net assets
1,708,682
2,695,890
Capital and reserves
Called up share capital
7
100
100
Profit and loss reserves
1,708,582
2,695,790
Total equity
1,708,682
2,695,890
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
SPECTRUM IT RECRUITMENT (SOUTH) LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2024
31 May 2024
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 14 January 2025 and are signed on its behalf by:
Mr I Cruickshank
Director
Company Registration No. 06603684
SPECTRUM IT RECRUITMENT (SOUTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
1
Accounting policies
Company information
Spectrum IT Recruitment (South) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Gamma House, Enterprise Road, Southampton Science Park, Southampton, Hampshire, United Kingdom, SO16 7NS.
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.
1.2
Turnover
Turnover represents the invoice value of fees receivable for permanent and consultant placements made during the accounting period, net of VAT.
Revenue is recognised as earned, when the company is entitled to it under the terms of its contracts with customers.
1.3
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:
Leasehold land and buildings
Over the term of the lease
Fixtures and fittings
25% reducing balance
Motor vehicles
Straight line over the length of the hire purchase
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.
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.4
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
SPECTRUM IT RECRUITMENT (SOUTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 4 -
1.5
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. The company considers all its financial instruments to be basic.
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, loans from fellow group companies and preference shares that are classified as debt, 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.
1.6
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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.7
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.8
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
SPECTRUM IT RECRUITMENT (SOUTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 5 -
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.
1.9
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
28
31
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 June 2023
219,598
110,350
329,948
Additions
1,273
47,126
48,399
Disposals
(3,469)
(3,469)
At 31 May 2024
220,871
154,007
374,878
Depreciation and impairment
At 1 June 2023
10,051
43,400
53,451
Depreciation charged in the year
24,492
21,819
46,311
Eliminated in respect of disposals
(2,449)
(2,449)
At 31 May 2024
34,543
62,770
97,313
Carrying amount
At 31 May 2024
186,328
91,237
277,565
At 31 May 2023
209,547
66,950
276,497
SPECTRUM IT RECRUITMENT (SOUTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 6 -
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
669,802
1,309,614
Corporation tax recoverable
47,270
47,270
Other debtors
2,239,562
3,282,536
2,956,634
4,639,420
SPECTRUM IT RECRUITMENT (SOUTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
5
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
105,956
106,422
Obligations under finance leases
5,724
Trade creditors
69,750
126,832
Corporation tax
186,011
257,907
Other taxation and social security
213,909
234,968
Other creditors
297,280
631,390
Accruals and deferred income
680,365
854,390
1,558,995
2,211,909
Included in Other creditors is £120,070 (2023 - £611,588) relating to debts secured by a debenture dated 12 January 2010 which comprises of a fixed and floating charge over all the company assets.
The figure for Other Creditors also includes £5,724 (2023 - £nil) in respect of hire purchase and finance leases which are secured against the assets concerned.
Included in Bank loans is a £95,956 (2023 - £96,422) Lloyds loan which is secured by fixed and floating charges.
6
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
10,000
115,821
Other creditors
35,377
45,377
115,821
Other creditors are net obligations under finance lease and hire purchase contracts of £35,377 (2023 - £nil) which are secured against the assets concerned.
7
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
10,000
10,000
100
100
SPECTRUM IT RECRUITMENT (SOUTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
8
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:
2024
2023
£
£
111,516
190,233
9
Related party transactions
Transactions with related parties
2024
2023
Amounts due from related parties
£
£
Other related parties
1,870,783
1,868,877
At the year end the company was owed £1,870,783 (2023 - £1,868,877) by LDC Investment Property Limited, a company under common control. The loan is interest free and repayable on demand.
10
Directors' transactions
The director's loan account is interest free and repayble on demand.
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Directors loan account
-
968,266
690,324
(1,826,726)
(168,136)
968,266
690,324
(1,826,726)
(168,136)