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Registered number: 05129360










RED SNAPPER RECRUITMENT LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024

 
RED SNAPPER RECRUITMENT LIMITED
 
 
COMPANY INFORMATION


Directors
S Hember 
H Jerrold 
M Jerrold 
J Midwinter 
A Mouj (resigned 9 October 2024)
I Hopkins (resigned 24 January 2024)




Company secretary
Helen Jerrold



Registered number
05129360



Registered office
Lytchett House 13 Freeland Park
Wareham Road

Poole

Dorset

BH16 6FA




Independent auditors
MHA
Statutory Auditors

2 London Wall Place

London, United Kingdom

EC2Y 5AU





 
RED SNAPPER RECRUITMENT LIMITED
 

CONTENTS



Page
Strategic Report
1 - 3
Directors' Report
4
Directors' Responsibilities Statement
5
Independent Auditors' Report
6 - 8
Statement of Comprehensive Income
9
Balance Sheet
10
Statement of Changes in Equity
11 - 12
Notes to the Financial Statements
13 - 27


 
RED SNAPPER RECRUITMENT LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

Introduction
 
The Directors present the Strategic Report for Red Snapper Recruitment for the year ended 31 May 2024.

Business review
 
Red Snapper Recruitment (RSR) is a specialist staffing services provider servicing a number distinct market sectors, namely, UK and Overseas Police, Central Government and Regulatory, Cyber, Housing and the 3rd Sector. This spread of markets is sufficiently interlinked and focused to allow RSR to benefit from niche specialist status in each area but has the diversity to spread risk in terms of demand and environmental threats. Each sector has its own market and contractual conditions as set out below.

The UK domestic policing contingency recruitment market is a mature market which has recently seen greater consolidation under mastervendor frameworks.  RSR operates its own master vendor service to West Midlands Police, the second largest Police force in the UK.  

Recruitment supply to the overseas territories continues to be a source of revenue for RSR.  Clients recruiting services in these jurisdictions rely on a highly developed product and a strong track record.   Barriers to entry are therefore high and RSR has been able to secure long standing clients in this market.    

The cyber security market has faced challenges in FY24.  The business works primarily with senior appointments frequently on retained search terms.  Demand in this area has retracted during the year due to wider socioeconomic factors. The business  was able to restructure and refocus the team and ends the year with a growing pipeline as key recruitment indicators improve. 

Central government and regulatory continues to be a strong source of revenue and gross profit.  The business has recently secured the extension of the contingency recruitment services for the Ministry of Justice.  This guarantees significant turnover and GP until 2026.  Worker attraction and retention will be a key factor to success in this area as there is an undersupply of skilled workers.  

Housing and 3rd sector continues to be a growth area for the business.  The team have made a significant number of direct and framework placements into the sector during FY24.  The large number of buying entities and variation of organisations provides significant opportunity for structured sales activity, innovative product delivery and cross selling between group companies.  

In a reverse of the prior year Turnover and GP decreased by 17% and 22% respectively during the year.  The drop in GP can be attributed to the cyber market and the related team that has been re-structured during the year.  Striping out this activity, there are positive indicators in the GP movement with a significant % of lower margin business being substituted for higher margin work.  The reduction in turnover for this portfolio saw a related increase in GP.  With a Cyber team recovery the positive impact of this realignment of the client base should be seen in the net position. 
 
Overheads however decreased in excess of the decrease in GP.  The reduction in costs was largely attributable to staff costs relating to the restructure and under performance of the Acumin team and the redressing of intercompany cost allocation to group entities to better reflect management and back office support.  The net assets of the business have decreased from the prior year by approximately 14%.
 
RSR’s investment into social value programmes continued during FY23. The business continued to invest into programmes such as local employment programmes for schools and apprentices in client locations such as the West Midlands.

The operations of group businesses providing media, managed services and training have enabled RSR to remain focussed on its core product of the provision of contingent and permanent recruitment services and this focus will remain for the foreseeable future.  RSR’s position within RSG allows it to benefit from the services, client relationships and cost base of group companies whilst maintaining market and product focus.
Page 1

 
RED SNAPPER RECRUITMENT LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024


Future developments
 
FY25 will see the continuation of current strategies within the diverse markets set out above.  Driving growth in Housing and 3rd sector as well as a controlled recovery of the cyber team work in line with their cost base will be key focusses in the next period.  

The overheads of the business will be significantly reduced in FY25 and beyond due to the end of the lease of the London and Birmingham offices and the change to a distributed workforce model.  The infrastructure cost savings are around £350/400k per annum and the ability to recruit nationally are already showing cost savings whilst achieving a motivated workforce whom almost entirely advocate the working model as they gain time, personal cost savings and flexibility to engage more in their home environments.  

In FY25 the business will also restructure its IT infrastructure with a move away from private cloud onto the Microsoft 365 estate.  This will deliver cost savings and operational advantages.  
Principal risks and uncertainties
The business’s operations expose it to a variety of financial risks including credit risk, liquidity risk, interest rate risk and foreign currency exchange risk. Given the size of the Group, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the Group's finance department.

Credit risk
 
The business’s credit risk is primarily attributable to its trade debtors. The Group has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual counterparty is subject to a limit, which is reassessed annually by the board. The carrying amount of financial assets represents the maximum credit exposure.

Liquidity risk
The business actively maintains a mixture of long term and short term debt finance that is designed to ensure it has sufficient available funds for operations and planned expansions. The Group monitors its levels of working capital to ensure that it can meet its debt repayments as they fall due.
Interest rate risk
The business has both interest-bearing assets and interest-bearing at liabilities. Interest bearing assets comprise only cash and cash equivalents.  The business’ lending primary lending facility has been recently renegotiated through a competitive process with preferential terms secured compared to the previous facility.     .
Foreign currency exchange rate risk
The business has limited exposure to foreign currency exchange rate risk as a result of trade debtors and creditors which will be settled in foreign currency. The Group has no material financial exposure to foreign exchange gains and losses on financial assets or liabilities at the year end and does not hedge its trading activities.

Page 2

 
RED SNAPPER RECRUITMENT LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024


This report was approved by the board and signed on its behalf.



................................................
H Jerrold
Director

Date: 26 February 2025

Page 3

 
RED SNAPPER RECRUITMENT LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024

The directors present their report and the financial statements for the year ended 31 May 2024.

Results and dividends

The profit for the year, after taxation, amounted to £157,201 (2023 - £245,012).

Dividends paid amounted to £431,136 (2023 - £431,136).

Directors

The directors who served during the year were:

S Hember 
H Jerrold 
M Jerrold 
J Midwinter 
A Mouj (resigned 9 October 2024)
I Hopkins (resigned 24 January 2024)

Qualifying third party indemnity provision for the benefit of one or more directors was in force at all time during the financial year.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

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

Auditors

A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting.

This report was approved by the board and signed on its behalf.
 





................................................
H Jerrold
Director

Date: 26 February 2025

Page 4

 
RED SNAPPER RECRUITMENT LIMITED
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the Company's financial statements 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are 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.

Page 5

 
RED SNAPPER RECRUITMENT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RED SNAPPER RECRUITMENT LIMITED
 

Opinion


We have audited the financial statements of Red Snapper Recruitment Limited (the 'Company') for the year ended 31 May 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, 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 Company's affairs as at 31 May 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.


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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 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.


Page 6

 
RED SNAPPER RECRUITMENT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RED SNAPPER RECRUITMENT LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In 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 Directors' 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:


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 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 Directors' Responsibilities Statement set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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 Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
RED SNAPPER RECRUITMENT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RED SNAPPER RECRUITMENT LIMITED (CONTINUED)


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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- enquiry of management, those charged with governance around actual and potential litigation and claims.
- performing audit work over the risk and management override of controls, including testing of journal entries       and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
- reviewing minutes of meetings of those charged with governance.
- reviewing financial statement disclosures and testing to supporting documentation to assess compliance
with applicable laws and regulations.


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 Auditors' Report.


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 2006Our 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 Auditors' 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.





Neil Stern FCA (Senior Statutory Auditor)
  
for and on behalf of
MHA
 
Statutory Auditors
  
London, United Kingdom


26 February 2025
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (Registered number OC312313)
Page 8

 
RED SNAPPER RECRUITMENT LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
Note
£
£

  

Turnover
 4 
28,500,112
34,305,955

Cost of sales
  
(25,987,829)
(31,074,781)

Gross profit
  
2,512,283
3,231,174

Administrative expenses
  
(2,065,353)
(2,806,719)

Other operating income
 5 
-
154

Fair value movements
  
5,561
-

Operating profit
 6 
452,491
424,609

Interest receivable and similar income
 10 
6,202
4,864

Interest payable and similar expenses
 11 
(249,131)
(136,788)

Profit before tax
  
209,562
292,685

Tax on profit
 12 
(52,361)
(47,673)

Profit for the financial year
  
157,201
245,012

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 13 to 27 form part of these financial statements.

Page 9

 
RED SNAPPER RECRUITMENT LIMITED
REGISTERED NUMBER: 05129360

BALANCE SHEET
AS AT 31 MAY 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 14 
19,553
3,678

Tangible assets
 15 
69,329
105,389

Investments
 16 
337,556
331,995

  
426,438
441,062

Current assets
  

Debtors
 17 
6,020,758
6,795,283

Cash at bank and in hand
 18 
36,247
49,807

  
6,057,005
6,845,090

Creditors: amounts falling due within one year
 19 
(4,833,555)
(5,315,364)

Net current assets
  
 
 
1,223,450
 
 
1,529,726

Total assets less current liabilities
  
1,649,888
1,970,788

Creditors: amounts falling due after more than one year
 20 
(311,142)
(356,360)

Provisions for liabilities
  

Deferred tax
 21 
(7,385)
(9,144)

  
 
 
(7,385)
 
 
(9,144)

Net assets
  
1,331,361
1,605,284


Capital and reserves
  

Called up share capital 
 22 
1,261
1,249

Share premium account

2,110,262
2,110,262

Merger reserve
 23 
(1,192,038)
(1,192,038)

Profit and loss account
 23 
411,876
685,811

  
1,331,361
1,605,284


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 26 February 2025.

................................................
H Jerrold
Director

The notes on pages 13 to 27 form part of these financial statements.

Page 10

 
RED SNAPPER RECRUITMENT LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024


Called up share capital
Share premium account
Merger reserve
Profit and loss account
Total equity

£
£
£
£
£

At 1 June 2023
1,249
2,110,262
(1,192,038)
685,811
1,605,284



Profit for the year
-
-
-
157,201
157,201

Dividends: Equity capital
-
-
-
(431,136)
(431,136)

Shares issued during the year
12
-
-
-
12


At 31 May 2024
1,261
2,110,262
(1,192,038)
411,876
1,331,361


The notes on pages 13 to 27 form part of these financial statements.

Page 11

 
RED SNAPPER RECRUITMENT LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023


Called up share capital
Share premium account
Merger reserve
Profit and loss account
Total equity

£
£
£
£
£

At 1 June 2022
1,249
2,110,262
(1,192,038)
871,935
1,791,408



Profit for the year
-
-
-
245,012
245,012

Dividends: Equity capital
-
-
-
(431,136)
(431,136)


At 31 May 2023
1,249
2,110,262
(1,192,038)
685,811
1,605,284


The notes on pages 13 to 27 form part of these financial statements.

Page 12

 
RED SNAPPER RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1.


General information

Red Snapper Recruitment Limited is a private company, limited by shares, registered in England and Wales. The registered office address and registered number can be found on the Company Information page.
The principal activity of the company during the year was recruitment services.
The Company's functional and presentational currency is GBP, rounded to the nearest £1

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

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 the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A.

This information is included in the consolidated financial statements of Red Snapper Group Limited as at 31 May 2024 and these financial statements may be obtained from Registrar of Companies House, Cardiff, CF14 3UZ.

Page 13

 
RED SNAPPER RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.3

Going concern

The Company has continued to perform well during and since the financial year.
The directors have prepared forecasts for the next twelve months which demonstrate the Company's ability to continue operating within its existing financial facilities, ending FY24 with net assests of £1,383,722 (2023: £1,605,284). The going concern status is dependent on the Company's existing financial facilities, including debt factoring arrangements and overdraft facilities remaining in place throughout the forecast period to at least 12 months from expected sign-off date.
The directors consider these facilities will remain in place for a period to at least 12 months from expected sign-off date. After making enquiries, the Directors have a reasonable expectation that the Group and the Company will have adequate resources to continue in operational existence for the foreseeable future.
Accordingly, the Directors are satisfied that the financial statements are appropriately prepared on a going concern basis.

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 14

 
RED SNAPPER RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.6

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

  
2.7

Extra accounting policy

Grants are accounted under the accruals model as permitted by FRS 102.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 15

 
RED SNAPPER RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.11

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.13

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Computer software
-
5
years

Page 16

 
RED SNAPPER RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Fixtures and fittings
-
25%
on reducing balance.
Computer equipment
-
25%
on reducing balance.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.18

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Page 17

 
RED SNAPPER RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

  
2.19

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

 
2.20

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgements that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. The most significant estimates and judgements are outlined below:
Bad debt provision:
Trade debtors balance of £2,498,033 (2023: £3,765,014) is recorded on the Company's Balance Sheet. A full line review of trade debtors is carried out on a regular basis. Whilst every attempt is made to ensure that the debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectable.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Rendering of services
28,500,112
34,305,955


All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Other operating income
-
154


Page 18

 
RED SNAPPER RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
13,408
70,711

Other operating lease rentals
279,219
219,849


7.


Auditors' remuneration

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


8.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
1,627,143
1,723,182

Social security costs
215,915
224,280

Cost of defined contribution scheme
74,624
58,753

1,917,682
2,006,215


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Directors
6
6



Recruitment Staff
20
17



Administration & Finance
19
22

45
45

Page 19

 
RED SNAPPER RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
65,781
131,055

Company contributions to defined contribution pension schemes
646
669

66,427
131,724


During the year retirement benefits were accruing to no directors (2023 - NIL) in respect of defined contribution pension schemes.


10.


Interest receivable

2024
2023
£
£


Other interest receivable
6,202
4,864


11.


Interest payable and similar expenses

2024
2023
£
£


Other loan interest payable
189,993
67

Other interest payable
59,138
136,721

249,131
136,788

Page 20

 
RED SNAPPER RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
54,120
63,478


54,120
63,478


Total current tax
54,120
63,478

Deferred tax


Origination and reversal of timing differences
(1,759)
(15,805)

Total deferred tax
(1,759)
(15,805)


Taxation on profit on ordinary activities
52,361
47,673

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
209,562
344,315


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25 % (2023 -19%)
52,391
55,610

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,201
(7,937)

Capital allowances for year in excess of depreciation
(6,017)
-

Fixed asset depreciation
10,859
-

Loans to participators
2,097
-

Changes in provisions leading to an increase in the tax charge
1,880
-

Group relief
(8,499)
-

Non-trade loan relationship credits
(1,551)
-

Total tax charge for the year
52,361
47,673

Page 21

 
RED SNAPPER RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
 
12.Taxation (continued)


Factors that may affect future tax charges

The Chancellor confirmed that the main corporation tax rate would increase to 25% as enacted on 11 March in the Finance Act 2021. This has come into effect in April 2023.


13.


Dividends

2024
2023
£
£


Ordinary Class B shares
431,136
431,136


14.


Intangible assets




Computer software

£



Cost


At 1 June 2023
6,932


Additions
18,475



At 31 May 2024

25,407



Amortisation


At 1 June 2023
3,254


Charge for the year on owned assets
2,600



At 31 May 2024

5,854



Net book value



At 31 May 2024
19,553



At 31 May 2023
3,678



Page 22

 
RED SNAPPER RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

15.


Tangible fixed assets





Fixtures and fittings
Computer equipment
Total

£
£
£



Cost or valuation


At 1 June 2023
102,071
142,621
244,692


Additions
-
4,769
4,769



At 31 May 2024

102,071
147,390
249,461



Depreciation


At 1 June 2023
61,627
77,676
139,303


Charge for the year on owned assets
21,034
19,795
40,829



At 31 May 2024

82,661
97,471
180,132



Net book value



At 31 May 2024
19,410
49,919
69,329



At 31 May 2023
40,444
64,945
105,389


16.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 June 2023
331,995


Revaluations
5,561



At 31 May 2024
337,556




Page 23

 
RED SNAPPER RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Acumin Consulting Limited
28 Northchurch Road, London, England, N1 4EH
Class A & B
100%


17.


Debtors

2024
2023
£
£



Factored debts
2,498,033
3,765,014

Amounts owed by group undertakings
2,687,496
2,435,981

Other debtors
339,659
415,234

Prepayments and accrued income
492,667
175,781

Tax recoverable
2,903
3,273

6,020,758
6,795,283


Amounts owed by group undertakings and amounts due from shareholders are interest free, unsecured and repayable on demand.


18.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
36,247
49,807

Less: bank overdrafts
(4)
-

36,243
49,807


Page 24

 
RED SNAPPER RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

19.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
4
-

Bank loans
2,119,287
2,523,522

Other loans
85,728
490,927

Trade creditors
1,006,793
631,578

Amounts owed to group undertakings
324,089
-

Corporation tax
2,859
-

Other taxation and social security
586,820
773,221

Other creditors
45,011
91,762

Accruals and deferred income
662,964
804,354

4,833,555
5,315,364


The following liabilities were secured:

Details of security provided:
Amount due to factor in trade creditors is secured by fixed and floating charges over trade debtors.


20.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Amounts owed to group undertakings
311,383
356,600

Other creditors
(241)
(240)

311,142
356,360


Amounts owed to group undertakings are interest free and payable on demand.

Page 25

 
RED SNAPPER RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

21.


Deferred taxation




2024


£






At beginning of year
(9,144)


Charged to profit or loss
1,759



At end of year
(7,385)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(7,385)
(9,144)

(7,385)
(9,144)


22.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



8 (2023 - 8) Ordinary Class B shares shares of £1.00 each
8
8
1,253 (2023 - 1,241) Ordinary Class A shares shares of £1.00 each
1,253
1,241

1,261

1,249

Ordinary A Shares have full voting rights, rights to receive dividends and rights to a share of the capital on winding up.
Ordinary B Shares have no voting rights, have rights to receive dividends and do not have rights to a share of the capital on winding up.




23.


Reserves

Merger Reserve

This reserve have been created due to a Company hive up.

Profit and loss account

This reserve relates to the cumulative retained earnings less amounts distributed to shareholders.

Page 26

 
RED SNAPPER RECRUITMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

24.


Related party transactions

The company made purchases of £807,938 (2023: £1,156,428) and sales of £910,927 (2023: £1,292,427) to related party entity Red Snapper Managed Services Limited in the year. At the year end it owed £91,215 (2023: £149,580).
 
The company made purchases of £nil (2023: £41,292) and sales of £24,000 (2023: £88,989) to related party entity Red Snapper Media Limited in the year. At the year end it was owed £77,446 (2023: £nil).

The company made purchases of £5,760 (2023: £5,942) and sales of £302,833 (2023: £164,430) to related party entity Red Snapper Learning Limited in the year. At the year end it owed £311,383 (2023: £356,600).

The company made purchases of £Nil (2023: £498) and sales of £Nil (2023 : £75,244) to related party entity 3GS (UK) Limited. At the year end it was owed £nil (2023: £nil).

The company made purchases of £nil (2023: £nil) and sales of £5,760 (2023: £nil) to parent company       Red Snapper Group Limited in the year. At the year end it was owed  £2,632,827 (2023: £1,963,345).


25.


Controlling party

The ultimate parent company is Red Snapper Group Limited, a company registered in England and Wales.
The ultimate controlling party is M Jerrold, by virtue of owning more than 70% of the voting rights and being chairman of the board of directors of the Parent Company, Red Snapper Group Limited.
The largest and smallest group of undertakings for which group accounts for the period ending 31 May 2024 have been drawn up, is that headed by Red Snapper Group Limited. Copies of the group accounts are available from 28 Northchurch Road, London, England, N1 4EH.

 
Page 27