Company registration number 01952236 (England and Wales)
PRIORY DESIGN SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
PRIORY DESIGN SERVICES LIMITED
COMPANY INFORMATION
Director
Mr D Hopley
Company number
01952236
Registered office
Millbank House
Northway
Runcorn
WA7 2SX
Auditor
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
PRIORY DESIGN SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 19
PRIORY DESIGN SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The director presents the strategic report for the year ended 30 September 2024.
Review of the business
Throughout the year, Priory Design Services Ltd maintained its primary business focus on specialist recruitment services, supplying professional, technical, engineering, scientific, and commercial personnel. These personnel were provided to both new and existing clients on either temporary or permanent contracts.
Position at the end of the period
The balance sheet at the end of the year shows that the company's net assets have increased by £239,715 to £1,624,509.
Going Concern
Our trading position has remained steady, albeit conservative, in light of external challenges including global conflicts, economic uncertainties, the recent election of a Labour government, and a reduction in interest rates by the Bank of England. However, demand for the company’s specialist recruitment services remains strong across various industries.
The director has prepared comprehensive budgets and cash flow forecasts, factoring in multiple potential scenarios. These forecasts are regularly updated to reflect changing conditions, and the business model is considered robust. Investments in IT have already been implemented, aimed at supporting organic growth and enhancing operational efficiency.
The director remains confident that the company has sufficient resources to continue its operations for the foreseeable future and, therefore, continues to adopt the going concern basis in preparing the financial statements.
Principal risks and uncertainties
The director has identified several key risks, including potential changes to employment legislation and a possible slow-down in client investment. There are also broader uncertainties in the global economy, particularly due to ongoing conflicts in Ukraine and the Middle East. While sectors like energy and oil are still seeing investment, there is a concern that the escalation of these conflicts could have negative impacts.
Despite these challenges, the director is optimistic that the company's high-quality services and strong client portfolio will mitigate these risks. The company aims to continue growing and expects satisfactory trading results in the upcoming year
Key performance indicators
The company's key financial and other performance indicators during the year were as follows:
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Gross profit as a % of Turnover | | | |
PRIORY DESIGN SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
There was a notable increase in demand for temporary contracts during the trading year, which significantly contributed to an increase in turnover. The company's client base remains stable, and the director believes that the company is financially secure, as demonstrated by the current assets exceeding current liabilities by £1.6 million.
Mr D Hopley
Director
26 January 2025
PRIORY DESIGN SERVICES LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
The director presents his annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company continued to be that of specialist recruitment in the categories of professional, technical, engineering, scientific and commercial staff. The personnel were provided on either a temporary or permanent placement contract to a wide range of new and existing clients.
Results and dividends
The results for the year are set out on page 8.
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:
Mr D Hopley
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Financial risk management objective and policies
The company finances its operations through a mixture of retained profits and where necessary to fund expansion or capital expenditure programmes through bank borrowings.
The management's objectives are to:
retain sufficient liquid funds to enable it to meet its day to day obligations as they fall due whilst maximising returns on surplus funds and;
minimise the group's exposure to fluctuating interest rates when seeking new borrowings; and
match the repayment schedule of any external borrowings or overdrafts with the expected future cash flows expected to arise from the company's trading activities.
Where appropriate, funds are held primarily in short term variable rate deposit accounts. The directors believe that this gives them the flexibility to release cash resources at short notice and also allows them to take advantage of changing conditions in the finance markets as they arise. All deposits are with reputable UK banks.
Hedge accounting is not used by the company.
On behalf of the board
Mr D Hopley
Director
26 January 2025
PRIORY DESIGN SERVICES LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
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:
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 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.
PRIORY DESIGN SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PRIORY DESIGN SERVICES LIMITED
- 5 -
Opinion
We have audited the financial statements of Priory Design Services Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:
give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its 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.
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 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 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.
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.
PRIORY DESIGN SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PRIORY DESIGN SERVICES LIMITED (CONTINUED)
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
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.
Matters on which we are required to report by exception
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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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 responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, are detailed below:
enquiries with management, about any known or suspected instances of non-compliance with laws and regulations or fraud within the business;
challenging assumptions and judgements made by management in their key accounts estimates, in particular in relation to provisions;
auditing the risk of management override of controls, including thorough testing of journal entries and other adjustments made by management for appropriateness;
reviewing board minutes and legal and professional expenditure to identify any evidence of ongoing litigation or enquiries; and
auditing the risk of fraud in revenue, including through the testing of the cut off of income at the year end and transaction testing to ensure revenue is complete in the financial statements and recognised in the correct accounting period.
PRIORY DESIGN SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PRIORY DESIGN SERVICES LIMITED (CONTINUED)
- 7 -
Because of the inherent limitations of an audit, there is a risk that we will 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.
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.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Paul Spencer BSc(Hons) FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Preston, United Kingdom
27 January 2025
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
PRIORY DESIGN SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
61,242,180
53,116,610
Cost of sales
(58,498,918)
(50,630,685)
Gross profit
2,743,262
2,485,925
Administrative expenses
(2,220,766)
(2,081,287)
Other operating income
98,018
9,192
Operating profit
4
620,514
413,830
Interest payable and similar expenses
7
(300,876)
(199,942)
Profit before taxation
319,638
213,888
Tax on profit
8
(79,923)
(47,164)
Profit for the financial year
239,715
166,724
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PRIORY DESIGN SERVICES LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
9
563
1,152
Current assets
Debtors
10
12,910,792
10,124,818
Cash at bank and in hand
104,809
51,487
13,015,601
10,176,305
Creditors: amounts falling due within one year
11
(11,391,655)
(8,792,663)
Net current assets
1,623,946
1,383,642
Net assets
1,624,509
1,384,794
Capital and reserves
Called up share capital
14
5,400
5,400
Profit and loss reserves
1,619,109
1,379,394
Total equity
1,624,509
1,384,794
The financial statements were approved and signed by the director and authorised for issue on 26 January 2025
Mr D Hopley
Director
Company registration number 01952236 (England and Wales)
PRIORY DESIGN SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2022
5,400
1,212,670
1,218,070
Year ended 30 September 2023:
Profit and total comprehensive income
-
166,724
166,724
Balance at 30 September 2023
5,400
1,379,394
1,384,794
Year ended 30 September 2024:
Profit and total comprehensive income
-
239,715
239,715
Balance at 30 September 2024
5,400
1,619,109
1,624,509
PRIORY DESIGN SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
1
Accounting policies
Company information
Priory Design Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Millbank House, Northway, Runcorn, WA7 2SX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Millb 2018 Ltd. These consolidated financial statements are available from its registered office, Millbank House, Northway, Runcorn, WA7 2SX.
1.2
Going concern
Our trading position has remained steady, albeit conservative, in light of external challenges including global conflicts, economic uncertainties, the recent election of a Labour government, and a reduction in interest rates by the Bank of England. However, demand with our clients for the professional personnel we provide remains high across multiple industries for the delivery of their required talent pools. true
The director has prepared detailed budgets and cash flows and considered various possible scenarios. These forecasts are continually monitored and regularly updated to reflect the latest available information.
Our business model is robust and we are in a strong position to grow turnover and gross profit with investment to promote organic growth being of key focus. Further IT investments are planned that will support growth and further enhance and automate processes.
The director has reasonable expectations 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.
PRIORY DESIGN SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.3
Turnover
Turnover represents the value of work done for customers during the year, exclusive of Value Added Tax. The main income streams continue to be that of recruitment and permanent placements. Recruitment income is recognised and invoiced when a contractor submits a timesheet. Permanent placement income is recognised on invoice, which is on the first day that the placement starts.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Software
20% straight line
1.5
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.
1.6
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.
PRIORY DESIGN SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets
Financial assets 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.
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 and loans from fellow group companies, are initially recognised at transaction price. 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. Trade creditors are recognised initially at transaction price.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
PRIORY DESIGN SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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.
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.
In the opinion of the director there are no critical accounting estimates or judgements made in these financial statements.
PRIORY DESIGN SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
3
Turnover and other revenue
All of the company's turnover relates to recruitment services and all sales were made in the United Kingdom.
2024
2023
£
£
Other revenue
Grants received
-
3,000
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(3,000)
Amortisation of intangible assets
589
589
5
Auditor's remuneration
The audit fees and non audit fees are paid by the company's ultimate parent company Millbank Holdings Limited and has been recharged as part of the management charge.
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Number of production staff
142
144
Number of management staff
20
18
Total
162
162
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
7,716,074
8,328,892
Social security costs
887,005
980,063
Pension costs
107,445
107,226
8,710,524
9,416,181
Director's remuneration is paid by the parent company, Millbank Holdings Limited.
PRIORY DESIGN SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on invoice finance arrangements
300,876
199,942
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
78,958
46,700
Deferred tax
Origination and reversal of timing differences
965
464
Total tax charge
79,923
47,164
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:
2024
2023
£
£
Profit before taxation
319,638
213,888
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
79,910
47,077
Tax effect of expenses that are not deductible in determining taxable profit
13
87
Taxation charge for the year
79,923
47,164
PRIORY DESIGN SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
9
Intangible fixed assets
Software
£
Cost
At 1 October 2023 and 30 September 2024
2,947
Amortisation and impairment
At 1 October 2023
1,795
Amortisation charged for the year
589
At 30 September 2024
2,384
Carrying amount
At 30 September 2024
563
At 30 September 2023
1,152
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
10,158,305
9,312,367
Amounts owed by group undertakings
2,478,622
787,802
Prepayments and accrued income
260,014
9,833
12,896,941
10,110,002
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 12)
13,851
14,816
Total debtors
12,910,792
10,124,818
PRIORY DESIGN SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
11
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,866
1,355
Amounts owed to group undertakings
3,137,247
1,349,079
Corporation tax
78,960
46,702
Other taxation and social security
739,770
1,073,925
Other creditors
6,865,527
5,981,987
Accruals and deferred income
568,285
339,615
11,391,655
8,792,663
Included within other creditors is £5,230,634 (2023: £4,440,116) relating to invoice discounting facilities. This is secured on the book debts of the company.
12
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
(140)
(288)
Short term timing differences
13,991
15,104
13,851
14,816
2024
Movements in the year:
£
Asset at 1 October 2023
(14,816)
Charge to profit or loss
965
Asset at 30 September 2024
(13,851)
13
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
107,445
107,226
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.
PRIORY DESIGN SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
14
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
5,400
5,400
5,400
5,400
15
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Category
Description of
Income
Expenditure
transaction
2024
2023
2024
2023
£
£
£
£
Other related parties
Management recharges
688
67,879
2,813
40,528
Balances with related parties
Category
Amounts owed by
Amounts owed to
related parties
related parties
2024
2023
2024
2023
£
£
£
£
Other related parties
37,482
246,416
Other information
The company has taken advantage of the exemption conferred by Section 33 FRS 102, namely from disclosing any transactions entered into between two or more members of the group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.
16
Ultimate controlling party
The ultimate parent company is Millb 2018 Ltd, a company incorporated in England and Wales. The registered office of Millb 2018 Ltd is Millbank House, Northway, Runcorn, WA7 2SX.
The largest and smallest group in which the results of the company are consolidated is that headed by Millb 2018 Ltd. The consolidated financial statements of this group are available to the public and may be obtained from Millbank House, Northway, Runcorn, WA7 2SX.
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