Company registration number 08664042 (England and Wales)
GLENLEE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
GLENLEE LIMITED
COMPANY INFORMATION
Director
B Conaghan
Company number
08664042
Registered office
Lantern House
39 - 41 High Street
Potters Bar
Hertfordshire
England
EN6 5AJ
Auditor
Newton & Garner Limited
Building 2
30 Friern Park
North Finchley
London
N12 9DA
GLENLEE LIMITED
CONTENTS
Page
Strategic report
1 - 5
Director's report
6 - 8
Independent auditor's report
9 - 11
Statement of comprehensive income
12
Balance sheet
13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16 - 24
GLENLEE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The director presents the strategic report for the year ended 31 December 2023.

Introduction

The results contained in these financial statements reflect the success of the strategy adopted by the management team, led by Brian Conaghan, as managing director of Glenlee Limited (“GLL”).

 

Following ongoing strategic reviews, which confirm the view that GLL is a solid business with a robust client base, strong operational capabilities and network, the management team identified its strategic priorities:

 

Central costs are being reduced and management teams have taken responsibility and accountability for their operations on a fully costed basis. This will enable better visibility of the profitability of each division

 

Any underutilisation is being addressed and operated more effectively, by the use of enhanced reporting of utilisation levels, which has allowed for better planning and is expected to drive profitability going forward

 

Review of the existing client sectors and focus on areas aligned to the Company’s core operational capabilities, is driving efficiencies and improving profitability.

 

Throughout the year, the business has continued to invest for the future, in particular the renewal of its IT systems, which will deliver future savings.

 

The Company has come out of a period of continued difficult trading in the UK with demonstrable successes against its key strategic objectives and against a background of unprecedented economic pressures, by focusing on the core competences of the business.

 

Following the year end, the Company has continued to trade successfully. The Company is focused on growing and improving the profitability and to that end continues to invest in increasing growth. The principal activities of the Company are expected to continue in line with the year ended 31 December 2023.

 

Principal Activities

 

The main core business activity is that of a specialist commercial contractor providing a variety of payroll, CIS scheme and related compliance services to the construction industry.

 

GLL is fast becoming a key supplier of payroll and compliance solutions to UK businesses. The business operates and maintains high levels of service while delivering cost effective solutions to our clients.

 

Our strategy focuses on the efficient utilisation of our systems and expertise, to deliver long term value to our clients. Growth is targeted in key market sectors that are complementary to the company's current network and core competencies.

 

Despite the pandemic and its aftermath, we have continued to deliver excellent service to our clients and at times of exceptional demands we have provided additional resource on very short notice to support our clients. This ability to demonstrate flexibility and provide support on short lead times has been a contributing factor to further client gains in the year.

GLENLEE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Business risks

During the year, the Board is ultimately responsible for setting the Company's risk appetite and for overseeing the effective management of risk. The risk strategy for the company is based on the Company’s risk framework, management and internal controls. Day to day risk management is the responsibility of the senior management team of the Company and a risk management framework setting out the Company's risk management processes and procedures in place.

 

A summary of the more significant risks specific to our operations and industry are outlined below.

 

Economic Environment Risk

Changes in the economic environment, whether resulting from the changing government policy and legislation or other external factors, may adversely affect our business and our clients’ businesses. For example, more complex rules for restrictions on the movement of workers from Europe may affect the Company's operations and financial position.

 

The Board monitors developments in the economic environment and other factors that may affect the Company. Advisers are retained to assist in minimising the impact of adverse changes in the economic environment. The Board also monitors economic developments that present opportunities which offset the downside risks.

 

Operating Environment Risk

Client demand for outsourced payroll and compliance services may change. There may be changes in the availability of workers and other opportunities to support business growth. New technologies and legislation may well emerge that change the nature of our industry.

 

We continually review and monitor market developments including new technologies, and emerging business models, and review our strategy accordingly. The Company stays in close contact with its clients to ensure we understand and can respond to their changing needs. We continue to invest in our own development in order to stay at the forefront of expertise in our industry.

 

People Risk

Loss of one or more key members of the senior management team or failure to retain and attract experienced and skilled people at all levels across the business could also have an adverse impact.

 

The executive management structure of GLL and management team of the Company bring with them market and sector experience into the business. The management team is appropriately rewarded for its efforts and succession plans are in place across key positions. We take pride in creating a positive workplace environment, through training, engagement, rewards and values for all positions.

 

Client Risk

Loss of one or more of our key clients could have a material impact on Company revenues.

We believe that the best way to mitigate this risk is to continue to deliver excellent levels of service at competitive rates.

 

We monitor our key client dependency regularly and seek to balance our exposure to each market sector we operate in by targeting new client opportunities. We typically have long-standing client relationships and many of our key relationships have lasted for many years.

 

A healthy pipeline of new opportunities is being evaluated and this risk is also mitigated by our strategy of building a balanced portfolio across the sectors we operate in.

 

Health and Safety Risk

Our primary concern is to minimise, to the extent possible, the risk of harm to people who work in our business or are affected by it. Induction sessions for new employees involve health and safety training. We also have a comprehensive suite of health and safety procedures that all new joiners must confirm they will adhere to.

 

Reputational Risk

Our potential to win new business or develop existing relationships could be adversely affected by a material incident and a negative perception of our brand. Such incidents could include a significant failure to deliver a client project, or a breach of our IT security system.

GLENLEE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Development and performance

We have comprehensive processes and procedures in place to manage operational risk and adherence to those processes and procedures is regularly reviewed. We also have a business continuity plan in place and escalation processes to ensure significant incidents are dealt with promptly and effectively.

 

Systems and Technical Risk

A failure or unavailability of a key IT system, unauthorised access or a cyber security breach could have a significant impact on operational performance, company reputation and financial performance.

 

All critical core IT infrastructure and data is replicated across dual data centres, to provide resilience and availability. A formal testing programme is in place to provide assurance of recovery in the event of a disaster. We continue to invest in cyber-security solutions, tools and infrastructure in line with industry best practice.

 

Financial Risk

Lack of available liquidity could result in the Company being unable to meet its financial obligations. Through its operations, the company is exposed to liquidity risk and Credit risk from trade debtors.

 

Net debt and expected cash flow movements are monitored to ensure that adequate funds are in place. The Company has no significant concentration of credit risk, with exposure spread over a number of clients, thus avoiding an increase in credit risk.

 

Legal and regulatory risk

We are required to comply with extensive and complex legal and regulatory regimes. Noncompliance could result in significant fines and reputational damage. Changes in laws and regulations could have an adverse impact on our operations and financial performance.

 

We have systems and procedures in place to ensure compliance with, and to manage the impact of, and changes in, government legislation and regulation.

Operating and Financial Review of Key Performance Indicators

Our key performance indicators are, Turnover and Profit from operating activities before exceptional items.

 

It is important to note that the period to 31st December 2022 represents a 16-month period, as compared to a 12-month period for the year ended 31st December 2023.  Whilst turnover has reduced from £125,473,311 in the 16-month period to 31st December 2022 to £101,528,179 in the year to 31st December 2023, when comparing turnover on a 12-month basis, this has increased by 7.9% in these financial statements for the year ended 31 December 2023. The increase is a result of positive actions taken to deliver the strategy to focus on core capabilities. 

 

Similarly, the Profit from operating activities before exceptional items in the period of £280,870, being the 12 month period in these financial statements for the year ended 31 December 2023, compared with the Profit for the previous financial statements for the year ended 31 December 2022 of £619,918, representing a 16 month period, the Profit shows a decrease Profit of £339,048. The level of Profit remains stable despite the current economic uncertainties, and we are confident that our operating model provides us with the flexibility to respond rapidly to changing conditions.

 

GLENLEE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Our Strategy

Our business performance will continue to be driven by our strategy to achieve improved performance and will be achieved through:

 

 

 

Environmental matters

The Company will seek to minimise adverse impacts on the environment from its activities, whilst continuing to address health, safety and economic issues. The Company has complied with all applicable legislation and regulations.

 

Going concern

The director has an excellent expectation that the Company has sufficient resources to continue in operation for the foreseeable future from the date of this report.

 

The Company's liquidity is managed closely and in making judgments around the going concern assumption, the Company's director has considered the future trading forecasts of the Company and confirmed that:

 

 

 

 

 

GLENLEE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Duty to promote the success of the company

The Board of directors of GLL considers that it has, both individually and collectively, acted in good faith in a way which would most likely promote the success of the Company for the benefit of the members as a whole, and in doing so have had a regard, amongst other matters, to factors in (a) to (f) as set out in s172(1) of the Companies Act 2006 for the decisions during the period ended 31 December 2023. In making this statement the director has considered the following matters:

 

Likely consequences of any decision in the long-term:

The Board reviewed the Company's strategy, as disclosed in the Strategic Report, during the year and concluded that it remains appropriate to support the long-term success of the Company. Shorter term expectations in supporting that strategy are approved by the Board as part of the annual budgeting process, against which the performance of the Company is then monitored. Decisions taken during the year are made in the context of the Company's strategy in order to ensure that they are consistent with that strategy.

 

The interests of the Company's employees:

Our people are critical to the success of our business and a core component of our business model. We endeavour to recruit the best people, train them well and look after them so that they provide the best possible service for our clients and remain with us for the long term. The Board has ultimate responsibility for ensuring the Company's decisions consider the interests of our employees.

 

The need to foster the Company's business relationships with suppliers, clients and others: Managing the Company's relationships with suppliers and clients is critical in ensuring the Company delivers on its strategy. Management at all levels are dedicated to ensuring that we maintain an ongoing dialogue with clients and suppliers to enable us to respond at all levels of the organisation appropriately.

 

The impact of the Company's operations on the community and the environment:

The Company seeks to have a positive impact on the communities in which it operates and minimise the environmental impact on our operations.

 

The desirability of the Company maintaining a reputation for high standards of business conduct: The Company regularly reviews and updates, where appropriate, its business conduct and ethics policies and ensures that these are communicated to employees, clients and suppliers and that appropriate training is undertaken by relevant employees on a regular basis to reinforce the Company's policies. The Company business ethics and conduct policy is approved by the Board and is communicated to relevant stakeholders.

 

The need to act fairly as between members of the Company:

The Company always seeks to ensure that its communications are transparent and its actions are in accordance with the Company's stated strategic aims to promote the long-term success of the Company.

On behalf of the board

B Conaghan
Director
21 February 2025
GLENLEE LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -

The director presents his annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of supply of labour.

Results and dividends

The results for the year are set out on page 12.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

B Conaghan
Disabled persons

With regard to recruitment and selection, the company will modify selection techniques, where appropriate, and make any other reasonable changes to ensure that disabled people can be considered equally with non-disabled candidates. The company ensures that disabled people receive equal treatment in training and development, and, where appropriate, additional training is provided. A flexible approach is adopted and where possible or justified, full consideration is given to reallocation of duties, time off for rehabilitation, assessment or treatment or other appropriate measures to ensure equal opportunity. Every endeavour is made to ensure that contract workers are not discriminated against because of their disability and we ensure that any contract and/or agency workers that may be used are aware of this policy.

Employee involvement

The company'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 company'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.

The company conducts weekly communications with employees informing them of all matters directly relating to them. We also engage directly with employees on an individual basis by phone or email if felt if it is in the interest of our employees to benefit from direct contact thus directly benefiting the employees. The company is committed to developing its business and facilitate employees by encouraging communication with our employees. All employee communication is facilitated and welcomed with any suggestions from employees acted upon if in the interests of all stakeholders of the company.

Business relationships

The company is acutely aware of the importance of its relationship with both the upstream and downstream supply chain. Our primary concern is to our clients, with whom we have a very good relationship and each individual account has a dedicated Account manager to ensure that any and all issues arising are dealt with and resolved without delay. We also plan and implement collectively, policies on the various changes in legislation ensuring full adherence and timely implementation of any legislative changes. Our proactive and forward-thinking relationship with our clients is paying dividends in relation to the company’s development.

Post reporting date events

There have been no significant events affecting the Company since the year end.

GLENLEE LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
Future developments

Although the growth of the UK economy looks to have strengthened, the risks to UK economic growth remain significant and future prospects may be influenced by developments in the Eurozone. We believe that the economic environment will continue to evolve at a rapid pace over the next two to three years, making a return to relative stability and more certainty. Interest rates are predicted to increase in the short to medium term.

 

We are expecting there to be continuing downward pressure on pricing and also the potential for an increase in competition in our sector. We plan to actively review our operating criteria and handling processes to seek to ensure profitability is maintained in difficult market conditions. This includes gaining a better understanding of our component costs, pricing and profit profile to develop a strategy to remain competitive in the market.

 

Overall, in the coming year we aim to grow net profits at a rate broadly consistent with the current year whilst continuing to maintain and develop our relationships with clients, generating new business where possible and increasing retention levels while navigating the pressure on pricing.

Auditor

Newton & Garner Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Energy and carbon report

The Company has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as its energy consumption in the United Kingdom for the year is 40,000kWh or lower.

 

Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:

 

 

 

GLENLEE LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
On behalf of the board
B Conaghan
Director
21 February 2025
GLENLEE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GLENLEE LIMITED
- 9 -
Opinion

We have audited the financial statements of GLENLEE LIMITED (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor'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 opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

GLENLEE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GLENLEE LIMITED (CONTINUED)
- 10 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has 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.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit were to identify and assess the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these risks between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining sufficient appropriate audit evidence to provide a basis for our opinion, and to respond appropriately to any instances of identified or suspected non-compliance of laws and regulations.

To identify and assess such risks, the audit team:

 

 

GLENLEE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GLENLEE LIMITED (CONTINUED)
- 11 -
Audit response to risks identified

The audit team identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the recording of income and the override of controls by management. Our audit procedures to respond to these risks included, but were not limited to, testing manual journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. We also enquired with management around actual and potential litigation and claims. We reviewed assumptions and judgements made by management in their accounting estimates. We have also performed analytical procedures to identify any unusual relationships that may indicate any risk of material misstatement due to fraud and reviewed these with those charged with governance.

Because of the inherent limitations of an audit, there is an unavoidable risk that we may not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. Even though we have properly planned and performed our audit in accordance with auditing standards, we are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Punal Raval FCA
Senior Statutory Auditor
For and on behalf of Newton & Garner Limited
21 February 2025
Chartered Accountants
Statutory Auditor
Building 2
30 Friern Park
North Finchley
London
N12 9DA
GLENLEE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Year
Period
ended
ended
31 December
31 December
2023
2022
Notes
£
£
Turnover
3
101,528,179
125,473,311
Cost of sales
(100,109,142)
(124,272,158)
Gross profit
1,419,037
1,201,153
Administrative expenses
(1,053,774)
(601,117)
Other operating income
-
0
19,882
Operating profit
4
365,263
619,918
Interest payable and similar expenses
8
(84,393)
-
0
Profit before taxation
280,870
619,918
Tax on profit
9
(112,168)
(139,808)
Profit for the financial year
168,702
480,110

The profit and loss account has been prepared on the basis that all operations are continuing operations.

GLENLEE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 13 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
22,516
28,543
Current assets
Debtors
11
5,829,457
4,171,073
Cash at bank and in hand
248,790
2,782,453
6,078,247
6,953,526
Creditors: amounts falling due within one year
12
(5,589,953)
(6,639,961)
Net current assets
488,294
313,565
Net assets
510,810
342,108
Capital and reserves
Called up share capital
14
1
1
Profit and loss reserves
510,809
342,107
Total equity
510,810
342,108
The financial statements were approved and signed by the director and authorised for issue on 21 February 2025
B  Conaghan
Director
Company registration number 08664042 (England and Wales)
GLENLEE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 September 2021
1
(138,003)
(138,002)
Period ended 31 December 2022:
Profit and total comprehensive income
-
480,110
480,110
Balance at 31 December 2022
1
342,107
342,108
Year ended 31 December 2023:
Profit and total comprehensive income
-
168,702
168,702
Balance at 31 December 2023
1
510,809
510,810
GLENLEE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
15
(1,385,923)
(1,117,401)
Interest paid
(84,393)
-
0
Income taxes refunded
-
0
67,306
Net cash outflow from operating activities
(1,470,316)
(1,050,095)
Investing activities
Purchase of tangible fixed assets
(1,278)
(25,650)
Provision of loans
(1,062,069)
-
0
Net cash used in investing activities
(1,063,347)
(25,650)
Net decrease in cash and cash equivalents
(2,533,663)
(1,075,745)
Cash and cash equivalents at beginning of year
2,782,453
3,858,198
Cash and cash equivalents at end of year
248,790
2,782,453
GLENLEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

GLENLEE LIMITED is a private company limited by shares incorporated in England and Wales. The registered office is Lantern House, 39 - 41 High Street, Potters Bar, Hertfordshire, England, EN6 5AJ.

1.1
Reporting period

The year end was amended for the accounts to 31st December 2022 in order to align the accounting period to a calendar year. The comparatives therefore represent a sixteen month period.

1.2
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.

1.3
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for 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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

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:

Plant and equipment
10% straight line
Motor vehicles
20% straight line

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.

GLENLEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.6
Impairment of fixed assets

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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash and cash equivalents

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.

1.8
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

GLENLEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

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.

 

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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

GLENLEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

1.10
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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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.

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.

GLENLEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Trade Debtors Recoverability

The recoverability of trade debtors has been assessed as at the year end and up until the date of signing these financial statements. Management have based the decision to provide for any amounts based on their judgement of all available information, and their experience of the specific nature of trade receivables in question.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Supply of labour
101,528,179
125,473,311
2023
2022
£
£
Other revenue
Grants received
-
8,260
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(8,260)
Depreciation of owned tangible fixed assets
7,305
5,294
Operating lease charges
16,141
19,360
GLENLEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
24,500
22,500
For other services
Taxation compliance services
1,000
1,000
All other non-audit services
1,500
1,500
2,500
2,500
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
456
487

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
11,928,430
15,390,347
Pension costs
348,492
149,698
12,276,922
15,540,045
7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
19,296
-
0
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Other interest
84,393
-
0
GLENLEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
90,987
135,780
Adjustments in respect of prior periods
21,181
-
0
Total current tax
112,168
135,780
Deferred tax
Origination and reversal of timing differences
-
0
4,028
Total tax charge
112,168
139,808

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
280,870
619,918
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
66,061
117,784
Tax effect of expenses that are not deductible in determining taxable profit
23,854
17,374
Adjustments in respect of prior years
21,181
-
0
Permanent capital allowances in excess of depreciation
1,072
4,650
Taxation charge for the year
112,168
139,808
GLENLEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
10
Tangible fixed assets
Plant and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 January 2023
20,466
25,650
46,116
Additions
1,278
-
0
1,278
At 31 December 2023
21,744
25,650
47,394
Depreciation and impairment
At 1 January 2023
15,008
2,565
17,573
Depreciation charged in the year
2,175
5,130
7,305
At 31 December 2023
17,183
7,695
24,878
Carrying amount
At 31 December 2023
4,561
17,955
22,516
At 31 December 2022
5,458
23,085
28,543
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,422,228
2,482,514
Other debtors
1,258,471
788,827
Prepayments and accrued income
1,148,758
899,732
5,829,457
4,171,073
12
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
231,755
146,980
Corporation tax
401,718
289,550
Other taxation and social security
4,105,635
5,776,505
Other creditors
814,432
376,968
Accruals and deferred income
36,413
49,958
5,589,953
6,639,961
GLENLEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
13
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
348,492
149,698

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

14
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
15
Cash absorbed by operations
2023
2022
£
£
Profit for the year after tax
168,702
480,110
Adjustments for:
Taxation charged
112,168
139,808
Finance costs
84,393
-
0
Depreciation and impairment of tangible fixed assets
7,305
5,294
Movements in working capital:
(Increase)/decrease in debtors
(596,315)
1,760,580
Decrease in creditors
(1,162,176)
(3,503,193)
Cash absorbed by operations
(1,385,923)
(1,117,401)
16
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
2,782,453
(2,533,663)
248,790
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