REGISTERED NUMBER: 10466779 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 May 2024 |
for |
Origym Group Limited |
REGISTERED NUMBER: 10466779 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 May 2024 |
for |
Origym Group Limited |
Origym Group Limited (Registered number: 10466779) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 May 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 18 |
Origym Group Limited |
Company Information |
for the Year Ended 31 May 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
3rd Floor Pacific Chambers |
11-13 Victoria Street |
Liverpool |
Merseyside |
L2 5QQ |
Origym Group Limited (Registered number: 10466779) |
Group Strategic Report |
for the Year Ended 31 May 2024 |
The directors present their strategic report of the company and the group for the year ended 31 May 2024. |
REVIEW OF BUSINESS |
The company continues to grow with the main purpose of providing high quality, customer service focused courses that are both flexible in delivery and cost effective. This is achieved through developing our own innovative course content, providing excellent levels of support to our students and developing surrounding services with what our student's really care about. |
Our mission statement is 'Transforming Lives Through Educational Excellence' which is shown in our core values of We Exceed, We Innovate and We Care. These values shape our identity as a company and are what makes us great and emphasised as follows: |
We Exceed: No other provider in the UK offers 7 day tutor support! But we implemented this to ensure that all of our students, regardless of their schedule, could access help when they needed it the most. We're also the highest rated provider in the country, with reviews on Google and Trustpilot far exceeding those of our competitors. |
We Innovate: At OriGym we monitor technological advances and developments to promote inclusivity and accessibility across our platforms. This allows us to provide all of our students with an innovative way of learning! |
We Care: Even after you graduate, OriGym is there to offer post-course career services to increase your chance of becoming employed. This includes securing guaranteed job interviews, editing your CV, and offering exclusive discounts hand chosen for our alumni. |
We also regularly promote and highlight our students' achievements across our social media pages, making sure others can celebrate their success. |
We are also dedicated to our team. All staff are provided with continuous professional development training to not just help optimise performance, but to enable us to give our students the best possible service across all aspects of our business. |
We want to be known as an ethical company, a company that really cares and that has a strong social standing. We believe that by having a high moral compass that will create a strong working culture that will be reflected in how we deliver our service. |
These values have seen OriGym have a record year with turnover increasing to £8,185,572 from £6,436,070. |
The year also saw a new Managing Director recruited to assist with the company's growth and provide additional skills and strength to the companies board. |
PRINCIPAL RISKS AND UNCERTAINTIES |
As with all companies there are always risks and we identify the most critical as: |
Regulation / Accreditation Risk |
OriGym is regulated or accredited by a number of industry bodies, including, but not limited to; CIMSPA, Ofqual and Focus Awards. A risk to the business could derive from substantial changes on how we must deliver our courses as set as by those regulating bodies. We view this risk as extremely minimal as we can adapt our courses at short notice to accommodate any changes as demonstrated when we went into COVID-19 lockdown. |
Reliance on Key individuals |
As with any owner managed business the company can place reliance on key members of staff. Additional recruitment in the year and a company structure reorganisation has helped to minimise over reliance on any one individual. |
Origym Group Limited (Registered number: 10466779) |
Group Strategic Report |
for the Year Ended 31 May 2024 |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
Financial risk management is an essential part of governance and leadership and is fundamental to how OriGym is directed, managed, and controlled at all levels. |
Forecasting and cost management is carried out continuously ensuring that any potential overspend or differentiation from the forecasts can be identified on a timely basis and any problems addressed quickly. |
KEY PERFORMANCE INDICATORS |
The company's main key performance indicators are: |
- Number of Courses sold |
- Revenue generated |
- EBITDA (earnings before interest, taxes, depreciation and amortisation) |
OriGym's key performance metrics are evaluated on a year-on-year basis and are disclosed in the statement within our profit and loss report. |
FUTURE DEVELOPMENTS |
The company future plan is to continue to grow and maintain its place as 'Training provider of the year' as recognised at the British Fitness awards. |
ON BEHALF OF THE BOARD: |
Origym Group Limited (Registered number: 10466779) |
Report of the Directors |
for the Year Ended 31 May 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 May 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of a training provider within the health and fitness sector, delivering regulated fitness qualifications across the UK and Republic of Ireland. |
The principal activity of the company in the year under review was that of a holding company. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 May 2024 will be £2,294,500 |
FUTURE DEVELOPMENTS |
We expect to continue to grow the business and provide high quality courses to our students. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 company and the group 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; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Origym Group Limited (Registered number: 10466779) |
Report of the Directors |
for the Year Ended 31 May 2024 |
AUDITORS |
The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Origym Group Limited |
Opinion |
We have audited the financial statements of Origym Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 May 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 directors' 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 group's and the parent 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 directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Origym Group Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or 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; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Origym Group Limited |
Auditors' 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 a Report of the Auditors 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: |
- | Identifying and assessing the design effectiveness of controls management has in place to prevent |
and detect fraud; |
- | Understanding how those charged with governance considered and addressed the potential for |
override of controls or other inappropriate influence over the financial reporting process; |
- | Reviewing financial statements disclosures and testing to supporting documentation to assess |
compliance with applicable law and regulations; |
- | Challenging assumptions and judgements made by management in its significant accounting |
estimates in particular: |
> Depreciation - we carried out a review and recalculation of depreciation to assess its |
appropriateness for inclusion within the financial statements |
> Accruals & Prepayments - we reviewed a sample of accruals and prepayments in the year to |
determine that these were applied correctly. |
> Tax Provisions - we carried out a review of the tax computations and ensured it was |
applied correctly. |
> Deferred Income - we carried out a review of the deferred income calculation and ensured that the |
calculation was reasonable and in accordance with FRS 102. |
> Bad Debt Provision - we reviewed the bad debt provision and bad debts provided for and |
ensured that the bad debt policy was reasonable and applied consistently. |
- | Identifying and testing journal entries, in particular any journal entries posted with unusual account |
combinations and journals posted around the year-end. |
Our audit did not identify any significant matters relating to the detection of irregularities including fraud. However, despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Origym Group Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditor |
3rd Floor Pacific Chambers |
11-13 Victoria Street |
Liverpool |
Merseyside |
L2 5QQ |
Origym Group Limited (Registered number: 10466779) |
Consolidated Income Statement |
for the Year Ended 31 May 2024 |
31.5.24 | 31.5.23 |
as restated |
Notes | £ | £ |
TURNOVER | 8,185,572 | 6,436,070 |
Cost of sales | 441,342 | 412,962 |
GROSS PROFIT | 7,744,230 | 6,023,108 |
Administrative expenses | 5,375,254 | 5,240,197 |
2,368,976 | 782,911 |
Other operating income | 2,610 | 5,409 |
OPERATING PROFIT | 4 | 2,371,586 | 788,320 |
Interest receivable and similar income | 14,993 | - |
PROFIT BEFORE TAXATION | 2,386,579 | 788,320 |
Tax on profit | 5 | 577,377 | 267,592 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,809,202 | 520,728 |
Origym Group Limited (Registered number: 10466779) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 May 2024 |
31.5.24 | 31.5.23 |
as restated |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,809,202 | 520,728 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,809,202 |
520,728 |
Note |
Prior year adjustment | 8 | 1,380,520 | 1,288,570 |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
3,189,722 |
1,809,298 |
Total comprehensive income attributable to: |
Owners of the parent | 3,189,722 | 1,809,298 |
Origym Group Limited (Registered number: 10466779) |
Consolidated Balance Sheet |
31 May 2024 |
31.5.24 | 31.5.23 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 37,705 | 26,103 |
Investments | 10 | - | - |
37,705 | 26,103 |
CURRENT ASSETS |
Debtors | 11 | 2,694,269 | 1,717,799 |
Cash at bank | 2,850,012 | 3,865,241 |
5,544,281 | 5,583,040 |
CREDITORS |
Amounts falling due within one year | 12 | 2,168,407 | 1,710,266 |
NET CURRENT ASSETS | 3,375,874 | 3,872,774 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
3,413,579 |
3,898,877 |
CAPITAL AND RESERVES |
Called up share capital | 14 | 202 | 202 |
Retained earnings | 15 | 3,413,377 | 3,898,675 |
SHAREHOLDERS' FUNDS | 3,413,579 | 3,898,877 |
The financial statements were approved by the Board of Directors and authorised for issue on 26 February 2025 and were signed on its behalf by: |
S Roberts - Director |
Origym Group Limited (Registered number: 10466779) |
Company Balance Sheet |
31 May 2024 |
31.5.24 | 31.5.23 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Retained earnings | 15 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 2,270,421 | 292,216 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Origym Group Limited (Registered number: 10466779) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 May 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 June 2022 | 202 | 2,374,377 | 2,374,579 |
Prior year adjustment | - | 1,288,570 | 1,288,570 |
As restated | 202 | 3,662,947 | 3,663,149 |
Changes in equity |
Dividends | - | (285,000 | ) | (285,000 | ) |
Total comprehensive income | - | (859,792 | ) | (859,792 | ) |
Balance at 31 May 2023 | 202 | 2,518,155 | 2,518,357 |
Prior year adjustment | - | 1,380,520 | 1,380,520 |
As restated | 202 | 3,898,675 | 3,898,877 |
Changes in equity |
Dividends | - | (2,294,500 | ) | (2,294,500 | ) |
Total comprehensive income | - | 1,809,202 | 1,809,202 |
Balance at 31 May 2024 | 202 | 3,413,377 | 3,413,579 |
Origym Group Limited (Registered number: 10466779) |
Company Statement of Changes in Equity |
for the Year Ended 31 May 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 June 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2024 |
Origym Group Limited (Registered number: 10466779) |
Consolidated Cash Flow Statement |
for the Year Ended 31 May 2024 |
31.5.24 | 31.5.23 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,654,437 | 697,318 |
Tax paid | (333,103 | ) | (189,548 | ) |
Net cash from operating activities | 1,321,334 | 507,770 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (54,452 | ) | (4,208 | ) |
Sale of tangible fixed assets | - | (5,697 | ) |
Sale of investment property | - | 250,706 |
Interest received | 14,993 | - |
Net cash from investing activities | (39,459 | ) | 240,801 |
Cash flows from financing activities |
Amount introduced by directors | - | 5,781 |
Amount withdrawn by directors | (2,604 | ) | (10,594 | ) |
Equity dividends paid | (2,294,500 | ) | (285,000 | ) |
Net cash from financing activities | (2,297,104 | ) | (289,813 | ) |
(Decrease)/increase in cash and cash equivalents | (1,015,229 | ) | 458,758 |
Cash and cash equivalents at beginning of year |
2 |
3,865,241 |
3,406,483 |
Cash and cash equivalents at end of year | 2 | 2,850,012 | 3,865,241 |
Origym Group Limited (Registered number: 10466779) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 May 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.5.24 | 31.5.23 |
as restated |
£ | £ |
Profit before taxation | 2,386,579 | 788,320 |
Depreciation charges | 42,852 | 25,209 |
(Profit)/loss on disposal of fixed assets | (2,610 | ) | 5,697 |
Finance income | (14,993 | ) | - |
2,411,828 | 819,226 |
Increase in trade and other debtors | (965,491 | ) | (17,382 | ) |
Increase/(decrease) in trade and other creditors | 208,100 | (104,526 | ) |
Cash generated from operations | 1,654,437 | 697,318 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 May 2024 |
31.5.24 | 1.6.23 |
£ | £ |
Cash and cash equivalents | 2,850,012 | 3,865,241 |
Year ended 31 May 2023 |
31.5.23 | 1.6.22 |
as restated |
£ | £ |
Cash and cash equivalents | 3,865,241 | 3,406,683 |
Bank overdrafts | - | (200 | ) |
3,865,241 | 3,406,483 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.6.23 | Cash flow | At 31.5.24 |
£ | £ | £ |
Net cash |
Cash at bank | 3,865,241 | (1,015,229 | ) | 2,850,012 |
3,865,241 | (1,015,229 | ) | 2,850,012 |
Total | 3,865,241 | (1,015,229 | ) | 2,850,012 |
Origym Group Limited (Registered number: 10466779) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 May 2024 |
1. | STATUTORY INFORMATION |
Origym Group Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements for the year ended 31 May 2024 are prepared in accordance with FRS 102. |
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 £. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
- | the requirement of paragraph 3.17(d); |
- | the requirement of paragraph 33.7. |
The financial statements of the company are consolidated in the financial statements of Origym Group Limited. These consolidated financial statements are available from its registered office, Exchange Court (2nd Floor), 1 Dale Street, Liverpool, L1 2PP. |
Basis of consolidation |
The consolidated financial statements incorporate those of Origym Group Limited and all of 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). |
Merger accounting was applied to subsidiaries acquired following a share for share on the 27 February 2020. |
All financial statements are made up to 31 May 2024. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. |
On the 30 November 2023 the company of Active Careers Limited was disposed of by the Origym Group and acquired by the directors at book value. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Origym Group Limited (Registered number: 10466779) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
In the application of the company'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. |
The estimates and assumptions which have significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows: |
Deferred income |
Key performance obligations have been identified in relation to the company sales. As part of this analysis, revenue in relation to performance obligations not yet met is deferred. Deferred income consists of revenue in relation to face to face courses where the performance objective has not occured by the year end. A key estimate exists in relation to the identification of the portion of total sales which relates to face to face performance obligations as opposed to access to e-learning material. |
Bad debt provision |
Judgement has been required in relation to bad debt provisions which is calculated on an individual basis. Provisions are recognised at the balance sheet date at management’s best estimate of present obligation. |
Changes in accounting policies |
As a result of a change in accounting policy in relation to revenue recognition, the prior year figures have been retrospectively restated as per the requirements of FRS102. |
Previously, revenue was recorded based on the average time taken for students to complete their course. |
Revenue streams have now been reassessed. The majority of revenue relates to access to the online courses provided by the entity and a smaller proportion relates to face to face courses. The performance objective for the online course income is deemed to be completed upon providing access to the online course. Likewise, revenue for the face to face courses was previously recognised based on the average time to complete the course, whereas it is now recognised upon completion of the face to face course, which is the identified performance objective. |
The result of the prior year adjustment has increased net assets at the beginning of the comparative period i.e. 01st June 2022 by £1,288,570. |
Furthermore, as part of the prior year adjustment, revenue has increased in the comparative year ending 31 May 2023 by £231,727 and corporation tax of £46,345 has now been recognised on that income. |
In conclusion, as at 31 May 2023 the cumulative prior year adjustment in relation to this change in accounting policy has increased the net asset position of the company by £1,473,952. |
Origym Group Limited (Registered number: 10466779) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue consists of online courses and face to face courses. These services are assessed for their performance objectives and revenue is recorded once the performance objective has been completed. |
Revenue relating to online courses is recognised immediately because the performance objective of providing access to the online course is then completed. |
Revenue relating to face to face elements is recognised once the face to face course has been attended, because that is when the performance objective completes. |
Tangible fixed assets |
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 the profit or loss. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Financial instruments |
Basic financial instruments are initially measured at transaction price including transaction costs unless the arrangement constitutes a financing transaction, and are subsequently carried at amortised cost using the effective interest method. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Origym Group Limited (Registered number: 10466779) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
31.5.24 | 31.5.23 |
as restated |
£ | £ |
Wages and salaries | 1,503,222 | 1,387,377 |
Social security costs | 128,966 | 124,942 |
Other pension costs | 297,908 | 29,207 |
1,930,096 | 1,541,526 |
The average number of employees during the year was as follows: |
31.5.24 | 31.5.23 |
as restated |
Employees | 51 | 56 |
Directors | 3 | 2 |
31.5.24 | 31.5.23 |
as restated |
£ | £ |
Directors' remuneration | 60,189 | 17,568 |
Directors' pension contributions to money purchase schemes | 260,550 | - |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.5.24 | 31.5.23 |
as restated |
£ | £ |
Other operating leases | 19,041 | 30,775 |
Depreciation - owned assets | 42,850 | 25,208 |
(Profit)/loss on disposal of fixed assets | (2,610 | ) | 5,697 |
Auditors' remuneration | 11,610 | 11,610 |
Other non- audit services | 19,666 | 25,860 |
Origym Group Limited (Registered number: 10466779) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
5. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.5.24 | 31.5.23 |
as restated |
£ | £ |
Current tax: |
UK corporation tax | 596,063 | 267,592 |
Under provision in prior year | (18,686 | ) | - |
Tax on profit | 577,377 | 267,592 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.5.24 | 31.5.23 |
as restated |
£ | £ |
Profit before tax | 2,386,579 | 788,320 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) |
596,645 |
197,080 |
Effects of: |
Expenses not deductible for tax purposes | 2,701 | 107,911 |
Income not taxable for tax purposes | (653 | ) | - |
Capital allowances in excess of depreciation | (2,900 | ) | - |
Depreciation in excess of capital allowances | - | 4,988 |
Adjustments to tax charge in respect of previous periods | (18,686 | ) | 26,494 |
Losses carried forward | 270 | - |
Tax rate change in period | - | (68,881 | ) |
Total tax charge | 577,377 | 267,592 |
6. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
7. | DIVIDENDS |
31.5.24 | 31.5.23 |
as restated |
£ | £ |
Ordinary shares shares of 1 each |
Final | 2,294,500 | 285,000 |
Origym Group Limited (Registered number: 10466779) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
8. | PRIOR YEAR ADJUSTMENT |
A change in accounting policy as described in the 'Changes in accounting policies' section in the notes to the financial statements describes the result of the prior year adjustment which has increased net assets at the beginning of the comparative period i.e. 01st June 2022 by £1,288,570. |
Furthermore, as part of the prior year adjustment, revenue has increased in the comparative year ending 31 May 2023 by £231,727 and corporation tax of £46,345 has now been recognised on that income. |
Other prior year adjustments made are as follows: |
1) The prior year financial statements have been amended to include a lease incentive accrual liability of £93,432. |
2) An adjustment has been made to last years balance sheet to reduce both the VAT liability and the trade debtors asset by £404,609. This adjustment has been made because it is identified that a tax point for VAT purposes had not been made on the trade debtors balance by the year end date. |
3) An adjustment has been made to the prior year financial statements to reclassify the overdraft liability of £31,265 as an other creditor as it relates to a credit card balance. |
In conclusion, as at 31 May 2023 the cumulative prior year adjustment has increased the net asset position of the group by £1,380,520. |
9. | TANGIBLE FIXED ASSETS |
Group |
Plant and |
machinery |
£ |
COST |
At 1 June 2023 | 118,639 |
Additions | 54,452 |
At 31 May 2024 | 173,091 |
DEPRECIATION |
At 1 June 2023 | 92,536 |
Charge for year | 42,850 |
At 31 May 2024 | 135,386 |
NET BOOK VALUE |
At 31 May 2024 | 37,705 |
At 31 May 2023 | 26,103 |
Origym Group Limited (Registered number: 10466779) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 June 2023 |
Disposals | ( |
) |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Exchange Court (2nd Floor), 1 Dale Street, Liverpool, England, L2 2PP |
Nature of business: |
% |
Class of shares: | holding |
31.5.24 | 31.5.23 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.5.24 | 31.5.23 | 31.5.24 | 31.5.23 |
as restated | as restated |
£ | £ | £ | £ |
Trade debtors | 2,394,167 | 1,676,992 |
Amounts owed by group undertakings | - | - |
Amounts owed by associated entities | 259,738 | - |
Other debtors | 3,420 | 11,410 |
Prepayments and accrued income | 36,944 | 29,397 |
2,694,269 | 1,717,799 |
Origym Group Limited (Registered number: 10466779) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.5.24 | 31.5.23 | 31.5.24 | 31.5.23 |
as restated | as restated |
£ | £ | £ | £ |
Trade creditors | 25,171 | 16,179 |
Amounts owed to group undertakings | - | - |
Tax | 631,953 | 379,310 |
Social security and other taxes | 35,526 | 30,277 |
VAT | 321,339 | 259,163 | - | - |
Other creditors | - | 31,254 |
Pension creditor | 7,091 | 5,756 | - | - |
Directors' loan accounts | 3,178 | 5,782 | 3,103 | 3,468 |
Accruals and deferred income | 1,024,809 | 824,253 |
Accrued expenses | 119,340 | 158,292 |
2,168,407 | 1,710,266 |
13. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable |
operating leases |
31.5.24 | 31.5.23 |
as restated |
£ | £ |
Within one year | 110,665 | 110,790 |
Between one and five years | 112,580 | 307,841 |
223,245 | 418,631 |
As a result of the prior year adjustment described in note 8 to these financial statements, the prior year operating lease payments have increased. This is due to the prior year adjustment in include a lease incentive liability in the prior year financial statements. |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.5.24 | 31.5.23 |
value: | as restated |
£ | £ |
Ordinary shares | 1 | 200 | 200 |
Ordinary 'A' Shares | 1 | 1 | 1 |
Ordinary 'B' Shares | 1 | 1 | 1 |
202 | 202 |
The company's ordinary shares, which carry no right to fixed income, each carry the right to one vote at general meetings of the company. |
All classes of share capital rank pari passu in all respects. |
Origym Group Limited (Registered number: 10466779) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
15. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 June 2023 | 2,518,155 |
Prior year adjustment | 1,380,520 |
3,898,675 |
Profit for the year | 1,809,202 |
Dividends | (2,294,500 | ) |
At 31 May 2024 | 3,413,377 |
Company |
Retained |
earnings |
£ |
At 1 June 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 May 2024 |
Retained earnings - Cumulative profit and loss, net of distribution to owners. |
16. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 May 2024 and 31 May 2023: |
31.5.24 | 31.5.23 |
as restated |
£ | £ |
L Hughes and Ms S Roberts |
Balance outstanding at start of year | - | - |
Amounts advanced | 2,000,000 | - |
Amounts repaid | (2,000,000 | ) | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | - | - |
17. | RELATED PARTY DISCLOSURES |
During the year, total dividends of £2,294,500 were paid to the directors . |
On the 30 November 2023 the company of Active Careers Limited was disposed of by the Origym Group and acquired by the directors at book value of £(2,610) resulting in a profit on disposal shown within these financial statements of £2,610. |