The directors present the strategic report for the year ended 31 December 2023.
The principal activity of the group in the year under review is that of the supply of international contract and permanent personnel to organisations in the Life Sciences sectors across UK, Europe and USA.
Financial Review and Key Performance Indicators
The key performance indicators used by the directors in monitoring the business are the number of contractors in assignments at any one time, permanent placements made and the gross profit achieved on these contract and permanent assignments.
During the year under review the group turnover reduced by 33% reflecting reductions in both permanent and contract placement volumes, gross profit increased by 42% due to the relative mix of the volume reductions. Gross profit as a percentage of turnover reduced during the year from 28.5% to 24.7%. Administrative costs in the year reduced from an average of £468k per month to £273k, a drop of 42% which principally reflects a drop in average employee numbers of 34% over the previous year. This led to a loss in the year of £505k.
Following the substantial changes to the leadership in 2021 the new Exec team, has set about restructuring the business to strengthen and grow the areas where the business is strong, particularly in servicing the Life Sciences Industry internationally. However, these changes have been set against a backdrop of very difficult trading conditions throughout the period from mid-2022 through to the end of 2024 resulting in a much slower restructuring than originally anticipated.
On 30th June 2023 the ownership of the group changed. RDL Corporation Ltd was acquired through a securities swap by SEC Group Holdings Ltd in a friendly restructuring which left the Persons with Significant Control of the group unchanged. The net result of the changes was a reduction in external debt owed by the group in the form of A and B Loan stock plus accrued interest of over £7m.
On 21st July 2023 all of the C Loan stock had also been cancelled, further reducing the debt by which the group was encumbered by c£0.5m.
Despite global socio-economic uncertainties the board is confident that its strategy of focussing on talent-short STEM sectors which have positive near and mid-term demand dynamics and investing in the development of its employees, infrastructure and service offerings, will support continued international growth.
The groups results reflect the significant work undertaken by its employees and the board wishes to thank them for their commitment through this period.
The directors consider the following to be the principle risks and uncertainties of the group:
Covid-19 and future pandemics
The business is exposed to global pandemics, lessons learned from the current pandemic will be deployed in the business to ensure that it remains agile to respond quickly to such events in future.
Credit risk
The business is exposed to the risk of payment default by customers for services rendered. This risk is monitored by managing the credit offered to customers and regular reviews of outstanding items and ongoing dialogue with customers.
Liquidity risk
The group finances its operations through retained earnings and a fixed rate invoice finance facility. The group's policy is to maintain good relationships with its bankers to ensure that sufficient facilities are in place to fund the company's needs as required.
Skill Shortage
Like most specialist recruitment firms, the group continues to be faced with the constant challenge of skill shortages. Mitigation of this risk is achieved by succession planning, training of staff, competitive pay structures and career progression.
Competition
The recruitment sector is competitive and as such the group continues to face competitor risk in the markets where we operate.
Legislation
The recruitment industry is becoming increasingly legislated; the group takes a proactive approach and regularly monitors the regulatory requirements of the markets in which the group is active, international data protection requirements and the ongoing legislative change initiatives to ensure the group meets its obligations.
With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.
Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2023.
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Saffery LLP have expressed their willingness to continue in office.
At the time of approving the financial statements, and despite any future effect of COVID 19, the directors have a reasonable expectation that the company and wider group has adequate resources to continue in operational existence for the foreseeable future. The company and wider group have put in place the necessary measures to mitigate against the effect of COVID 19 on its ability to continue as a going concern.
The talent required by our clients who operate at various stages of funding rounds, across the biotech and medtech sectors and from R&D, clinical trails and manufacturing through to commercialisation across the wider life sciences sector is still much sought after and we are positioned to provide the services needed to help our clients locate and hire the people they need and vice versa.
Following the substantial reorganisation of the company and debt position in June/July 2023, as recognised in Note 19, and despite the material improvement of the balance sheet the trading conditions experienced in 2024 have meant that a material uncertainty remains as to the company’s ability to continue as a going concern.
The directors are aware that there are substantial macro-economic factors affecting the trading landscape at the current time, including international wars, supply shortages, inflation and interest rates higher than experienced in recent years. These threats have led to potential challenging trading conditions and may lead to recessions.
The directors believe that following reductions in the cost base of the business and investments in strengthening the sales team in late 2024 the business is now well positioned to work with clients across a wider geographic client footprint across Europe and the US generating revenues from both perm and contract placements to generate profits and positive cashflows through 2025.
The directors have assessed that, following additional recent financial support from the directors, the company and wider group has operating cash flows and management forecasts which support positive working capital headroom.
Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of RDL Corporation Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material uncertainty related to going concern
We draw attention to note 1.4 in the financial statements, which indicates that as at 31 December 2023 the group's current liabilities exceeded its total assets by £679,602.
As stated in note 1.4, these events or conditions, along with other matters as set forth in note 1.4, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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.
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 included in the annual report other than the financial statements and our auditor's report 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.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of 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.
In the light of the knowledge and understanding of the group and the parent company and their 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 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.
As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.
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.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the group and parent company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent company by discussions with directors and by updating our understanding of the sector in which the group and parent company operates.
Laws and regulations of direct significance in the context of the group and parent company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of group and parent company financial statement disclosures. We reviewed the parent company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
As group auditors, our assessment of matters relating to non-compliance with laws or regulations and fraud differed at group and component level according to their particular circumstances. Our communications included a request to identify instances of non-compliance with laws and regulations and fraud that could give rise to a material misstatement of the group financial statements in addition to our risk assessment.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the parent 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 parent 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 parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £217,065 (2022 - £3,324,257).
RDL Corporation Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is 63-66 Hatton Garden, Fifth Floor Suite 23, London, EC1N 8LE.
The group consists of RDL Corporation Limited and all of its subsidiaries.
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.
The 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 for parent company information presented within the consolidated financial statements:
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 financial instruments not measured at fair value; 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 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company RDL Corporation Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the time of approving the financial statements, and despite any future effect of COVID 19, the directors have a reasonable expectation that the company and wider group has adequate resources to continue in operational existence for the foreseeable future. The company and wider group have put in place the necessary measures to mitigate against the effect of COVID 19 on its ability to continue as a going concern.
The talent required by our clients who operate at various stages of funding rounds, across the biotech and medtech sectors and from R&D, clinical trails and manufacturing through to commercialisation across the wider life sciences sector is still much sought after and we are positioned to provide the services needed to help our clients locate and hire the people they need and vice versa.
Following the substantial reorganisation of the company and debt position in June/July 2023, as recognised in Note 19, and despite the material improvement of the balance sheet the trading conditions experienced in 2024 have meant that a material uncertainty remains as to the company’s ability to continue as a going concern.
The directors are aware that there are substantial macro-economic factors affecting the trading landscape at the current time, including international wars, supply shortages, inflation and interest rates higher than experienced in recent years. These threats have led to potential challenging trading conditions and may lead to recessions.
The directors believe that following reductions in the cost base of the business and investments in strengthening the sales team in late 2024 the business is now well positioned to work with clients across a wider geographic client footprint across Europe and the US generating revenues from both perm and contract placements to generate profits and positive cashflows through 2025.
The directors have assessed that, following additional recent financial support from the directors, the company and wider group has operating cash flows and management forecasts which support positive working capital headroom.
Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
In relation to temporary placements, turnover is recognised by the company in respect of services supplied on a month by month basis.
Revenue in respect of permanent placement fees is recognised when the company has fulfilled its contractual obligations in accordance with the underlying contracts. Depending on the contract, this is either on the start date of the candidates' employment, or when a candidate accepts an offer of employment and a start date has been determined. Where revenue is recognised on acceptance the directors consider the likelihood of withdrawal and make a provision accordingly.
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 recognised in the income statement.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.
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 group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group 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 group.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
The company adopts FRS 102 Section 26 'Share Based Payments' within these financial statements. RDL Corporation Limited operated an Enterprise Management Incentive Scheme ('EMI Scheme') for three of the group's employees. Under the Option Deed the company can grant options over not more than 10% of the company's share capital. The option are exercisable on sale or listing of the company, or at the discretion of the board of directors. On exercise, the options must be paid for in cash.
FRS102 requires the company to determine the fair value of the options granted each year, and to make a charge to the profit and loss account for that amount. No expense has been recognised for the share options however, as in the opinion of the directors, the charge would be immaterial to the financial statements.
In respect of the FRS 102 requirement to determine the fair value of the options granted, the directors have referred to the HM Revenue & Customs valuations as a guide.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
In the application of the group’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.
Management regularly assess balances due from other entities within the company and whether these are recoverable by the respective entities. Where it is considered that the future cash flows of these debts are less than the carrying amount in RDL Corporation Limited, appropriate provisions are made against these balances to reflect the recoverability of the asset.
The average monthly number of persons (including directors) employed by the group during the year was:
Their aggregate remuneration comprised:
Details of the company's subsidiaries at 31 December 2023 are as follows:
The registered office for SEC Recruitment Limited is 63-66 Hatton Garden, Fifth Floor Suite 23, London, EC1N 8LE. The registered office for M3 Europe Limited, RDL Recruitment Limited and 1st IT People Limited is Centennium House, 100 Lower Thames Street, 3rd Floor, London, England, EC3R 6DL. The registered office for SEC Recruitment Schweiz AG is Löberenstrasse 47, 6300 Zug, Switzerland. The registered office for SEC Life Sciences Inc is 251 Little Falls Drive, Wilmington, New Castle, 19808.
The principal activities of SEC Recruitment Limited is that of the supply of specialist pharmaceutical and IT contract and permanent personnel to blue chip organisations.
The principal activities of RDL Recruitment, 1st IT People Limited and M3 Europe Limited are that of dormant companies.
The principal activity of SEC Recruitment Schweiz AG and SEC Life Sciences INC are that of an employment agency.
The conversion of the A, B & C loan stock and loan stock premium was completed during the group restructure in the reporting period.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax asset set out above is expected to reverse within 36 month and relates to the utilisation of tax losses against future expected profits of the same period.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Key management personnel
The directors are considered to be the only key management personnel due to their authority and responsibility for planning, directing and controlling the activities of the company. Directors' remuneration and other benefits are detailed in note 7 of the financial statements.
Transactions with directors
The amounts due to Stuart Goldup and Mathew Perrett at the year end was £128,186 (2022: £105,759) and £228,186 (2022: £105,759) respectively.
Interest of £Nil (2022: £14,800) was charged to the profit and loss account during the year. Interest is payable on the loan stock at 10% (2022: 10%) of the principal amount.
An LLP in which a director is a designated member was paid £22,254 (2022: £39,659) for non-executive director services.
The company has taken advantage of the exemption available under Section 33 of the Financial Reporting Standard 102 not to disclose transactions with other wholly owned members of the group.
Transactions with shareholders
The amount due to the Income Growth VCT PLC, Mobeus Income & Growth VCT PLC, Mobeus Income & Growth 2 VCT PLC and Mobeus Income & Growth 4 VCT PLC at the year end was £Nil (2022: £901,140), £Nil (2022: £974,065), £Nil (2022: £625,068) and £Nil (2022: £625,068) respectively.
In the year the loan stock due to the Income Growth VCT PLC, Mobeus Income & Growth VCT PLC, Mobeus Income & Growth 2 VCT PLC and Mobeus Income & Growth 4 VCT PLC was cancelled for capital contribution in RDL Corporation Limited.
RDL Corporation Limited is wholly owned by SEC Group Holdings Ltd.