Company registration number 07095603 (England and Wales)
ELEVATION RECRUITMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
ELEVATION RECRUITMENT LIMITED
COMPANY INFORMATION
Directors
L Bhandal
G Parkinson
J Bohan
E Noble
Company number
07095603
Registered office
The Heriot Building
Dodds Close
Rotherham
South Yorkshire
S60 1BX
Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
ELEVATION RECRUITMENT LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 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 - 22
ELEVATION RECRUITMENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Review of the business
The company’s main focus during 2024 was navigating the challenges of a tightening market while maintaining growth and solidifying its market position as the leading employer of choice within the recruitment sector in our region. These efforts have been pivotal in continuing to offer a market-leading service despite the heightened economic pressures.
2024 saw a 19% increase in turnover across both permanent and interim offerings This growth highlights the company’s ability to adapt to evolving client demands while maintaining the high standards of service that have been key to its reputation.
However, the broader economic climate, characterised by rising operational costs, wage inflation, and market uncertainty, placed downward pressure on operating profit margins.
Throughout 2024, the company upheld its commitment to employee well-being and engagement, maintaining its hybrid flexible working policy and health and well-being leave for staff. This approach has not only contributed to higher employee satisfaction and retention but has also reinforced Elevation’s status as an employer of choice within the industry. Employee development remained a key focus, with further investments in training and career progression initiatives.
Elevation continued to deliver exceptional service to clients and candidates, with over 80% of clients in 2024 being repeat clients or engaging with multiple divisions of the company. Maintaining and strengthening these relationships remains a priority of the business.
Principal risks and uncertainties
Data Protection
The company processes significant volumes of candidate and client data daily. The General Data Protection Regulation (GDPR) continues to pose financial and legal risks for non-compliance. Directors closely monitor updates to ensure full compliance.
Staff
Retaining and attracting top talent remains critical, especially in a market where wage inflation is placing upward pressure on compensation packages. The company’s emphasis on employee engagement, competitive incentives, and career development has supported retention, though this remains an ongoing challenge in a tough labour market.
Economic Conditions
The company is adapting to a tighter economic climate. With cost-of-living pressures impacting both candidates and clients, the company has reinforced its credit control and aged debt monitoring processes to manage financial risks effectively. Robust cash flow and cost controls position the company to weather economic uncertainties and sustain long-term growth.
Key performance indicators
The company’s performance during the year has been measured by the Directors using the following KPIs:
| | |
| | |
| | |
Gross Margin (Gross Profit % of Turnover) | | |
ELEVATION RECRUITMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
G Parkinson
Director
6 March 2025
ELEVATION RECRUITMENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activities of the company during the period were the provision of specialist permanent, contract and temporary staff across 8 divisions to companies in the UK.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
L Bhandal
G Parkinson
J Bohan
E Noble
Auditor
The auditor, BHP LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
ELEVATION RECRUITMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
On behalf of the board
G Parkinson
Director
6 March 2025
ELEVATION RECRUITMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ELEVATION RECRUITMENT LIMITED
- 5 -
Opinion
We have audited the financial statements of Elevation Recruitment Limited (the 'company') for the year ended 31 December 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 31 December 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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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.
ELEVATION RECRUITMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ELEVATION RECRUITMENT LIMITED (CONTINUED)
- 6 -
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 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, 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry in which the company operates;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
ELEVATION RECRUITMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ELEVATION RECRUITMENT LIMITED (CONTINUED)
- 7 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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.
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.
Terri Pierpoint (Senior Statutory Auditor)
For and on behalf of BHP LLP, Statutory Auditor
Chartered Accountants
2 Rutland Park
Sheffield
S10 2PD
6 March 2025
ELEVATION RECRUITMENT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
12,309,481
10,363,012
Cost of sales
(2,342,999)
(1,355,456)
Gross profit
9,966,482
9,007,556
Administrative expenses
(9,219,618)
(8,044,365)
Exceptional item
4
(621,138)
(619,441)
Operating profit
5
125,726
343,750
Interest receivable and similar income
9
296
Interest payable and similar expenses
10
(35,408)
Profit before taxation
90,318
344,046
Tax on profit
11
(26,838)
(30,073)
Profit for the financial year
63,480
313,973
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ELEVATION RECRUITMENT LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
431,151
445,702
Current assets
Debtors
13
7,477,553
6,528,185
Cash at bank and in hand
29,601
596,321
7,507,154
7,124,506
Creditors: amounts falling due within one year
14
(4,608,382)
(3,613,903)
Net current assets
2,898,772
3,510,603
Total assets less current liabilities
3,329,923
3,956,305
Provisions for liabilities
Deferred tax liability
15
39,000
40,000
(39,000)
(40,000)
Net assets
3,290,923
3,916,305
Capital and reserves
Called up share capital
18
10,527
10,527
Share premium account
49,473
49,473
Other reserves
1,418,774
797,636
Profit and loss reserves
1,812,149
3,058,669
Total equity
3,290,923
3,916,305
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 6 March 2025 and are signed on its behalf by:
G Parkinson
Director
Company registration number 07095603 (England and Wales)
ELEVATION RECRUITMENT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Share premium account
Capital contribution reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2023
10,527
49,473
178,195
4,004,696
4,242,891
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
313,973
313,973
Capital contributions to EOT
18
-
(1,260,000)
(1,260,000)
Other movements
-
-
619,441
-
619,441
Balance at 31 December 2023
10,527
49,473
797,636
3,058,669
3,916,305
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
-
63,480
63,480
Capital contributions to EOT
18
-
(1,310,000)
(1,310,000)
Other movements
-
-
621,138
-
621,138
Balance at 31 December 2024
10,527
49,473
1,418,774
1,812,149
3,290,923
ELEVATION RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
1
Accounting policies
Company information
Elevation Recruitment Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Heriot Building, Dodds Close, Rotherham, South Yorkshire, S60 1BX.
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, modified to include certain financial instruments at fair value. 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: The disclosure requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Elevation Holdings Limited. These consolidated financial statements are available from its registered office.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents fees and expenses receivable for recruitment services supplied during the period exclusive of value added tax.
Turnover arising from the placement of permanent candidates is recognised when the position of employment is accepted by the candidate. This normally precedes the invoice date which approximates to the date when the position of employment is started. These amounts are included in accrued income in the balance sheet. Provision is made for withdrawals prior to the commencement of employment.
Turnover arising from temporary placements is recognised over the period of the assignment. Where the company acts as principal, turnover represents the amount billed for the services of the temporary staff which includes the salary cost of those staff.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
ELEVATION RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
7% Straight Line
Fixtures, fittings & equipment
20% Straight Line
Computer equipment
33% Straight Line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
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, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash and cash equivalents
Cash and cash equivalents 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.
ELEVATION RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies 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.
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.
ELEVATION RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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.
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, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.
ELEVATION RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.12
Share-based payments
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using an EBITDA model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Share option valuation
The weighted average fair value of options granted in the year was determined using the a Monte-Carlo model. The Monte-Carlo model is considered to apply the most appropriate valuation method due to the relatively short contractual lives of the options and the requirement to exercise within a short period after the employee becomes entitled to the shares (the “vesting date”).
The expected life used in the model has been adjusted, based on management’s best estimate, for the effect of non-transferability, exercise restrictions, and behavioural considerations.
Non-vesting conditions and market conditions are taken into account when estimating the fair value of the option at grant date. Service conditions and non-market performance conditions are taken into account by adjusting the number of options expected to vest at each reporting date.
ELEVATION RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Permanent fees
7,407,628
6,901,717
Permanent offers
1,453,752
1,107,649
Temporary fees
3,448,101
2,353,646
12,309,481
10,363,012
2024
2023
£
£
Other revenue
Interest income
-
296
4
Exceptional item
2024
2023
£
£
Expenditure
Share based payments
621,138
619,441
The exceptional item in both periods relates to the valuation of the share-based payments following the issue of A ordinary shares on 18th August 2022 ("Valuation Date") under the Company's Enterprise Management Incentive scheme.
5
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
22,380
19,600
Depreciation of owned tangible fixed assets
102,301
62,010
(Profit)/loss on disposal of tangible fixed assets
-
2,665
Operating lease charges
213,041
213,813
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
22,380
19,600
ELEVATION RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
7
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Direct
104
101
Admin
17
13
Total
121
114
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
8,123,172
6,779,770
Social security costs
1,006,843
877,846
Pension costs
185,522
162,659
9,315,537
7,820,275
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
1,041,792
1,130,293
Company pension contributions to defined contribution schemes
42,300
43,200
1,084,092
1,173,493
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
314,165
405,395
Company pension contributions to defined contribution schemes
19,200
19,200
ELEVATION RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
69
Other interest income
227
Total income
296
10
Interest payable and similar expenses
2024
2023
£
£
Other interest
35,408
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
185,429
184,482
Deferred tax
Origination and reversal of timing differences
(158,591)
(154,409)
Total tax charge
26,838
30,073
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
90,318
344,046
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
22,580
80,920
Tax effect of expenses that are not deductible in determining taxable profit
159,792
146,951
Tax effect of income not taxable in determining taxable profit
(1,094)
Group relief
(45)
(43)
Permanent capital allowances in excess of depreciation
6
Other non-reversing timing differences
(155,284)
(187,608)
Deferred tax not recognised
(205)
(9,059)
Taxation charge for the year
26,838
30,073
ELEVATION RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
12
Tangible fixed assets
Leasehold improvements
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2024
282,784
343,757
55,801
682,342
Additions
19,321
48,975
19,454
87,750
At 31 December 2024
302,105
392,732
75,255
770,092
Depreciation and impairment
At 1 January 2024
15,291
216,160
5,189
236,640
Depreciation charged in the year
31,537
22,301
48,463
102,301
At 31 December 2024
46,828
238,461
53,652
338,941
Carrying amount
At 31 December 2024
255,277
154,271
21,603
431,151
At 31 December 2023
267,493
127,597
50,612
445,702
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,779,972
1,268,436
Amounts owed by group undertakings
3,019,562
3,009,862
Amounts owed by undertakings in which the company has a participating interest
150,000
150,000
Other debtors
350,454
348,891
Prepayments and accrued income
1,810,565
1,541,587
7,110,553
6,318,776
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 15)
367,000
209,409
Total debtors
7,477,553
6,528,185
ELEVATION RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
449,139
142,915
Amounts owed to group undertakings
2,206,395
2,206,395
Corporation tax
369,911
163,391
Other taxation and social security
766,604
624,661
Other creditors
459,264
137,855
Accruals and deferred income
357,069
338,686
4,608,382
3,613,903
Included in other creditors is an amount of £341,415 (2023: £nil) in respect of invoice discounting, any liabilities for which are secured on the assets of the company.
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Fixed asset timing differences
39,000
40,000
-
-
Short term timing differences
-
-
12,000
10,000
Share based payments
-
-
355,000
199,409
39,000
40,000
367,000
209,409
2024
Movements in the year:
£
Asset at 1 January 2024
(169,409)
Credit to profit or loss
(158,591)
Asset at 31 December 2024
(328,000)
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
185,522
162,659
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.
ELEVATION RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
17
Share-based payment transactions
Number of share options
Weighted average exercise price per option
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 January 2024 and 31 December 2024
92
92
1.00
1.00
Exercisable at 31 December 2024
92
92
1.00
1.00
The options outstanding at 31 December 2024 had an exercise price of £1 per share, and a remaining contractual life of 7 years and 8 months.
Expenses recognised in the year arising from share based payment transactions are £621,138 (2023: £619,441) as outlined in exceptional items note.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
10,000
10,000
10,000
10,000
Ordinary B shares of £1 each
527
527
527
527
10,527
10,527
10,527
10,527
The A and B shares constitute different classes of shares but confer upon the holders the same rights and rank pari passu in respect of voting and capital rights.
19
Financial commitments, guarantees and contingent liabilities
The company has a cross guarantee with Elevation EOT Limited. The charge was registered on 2 March 2021 and contains both fixed and floating charges.
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
130,000
132,500
Between two and five years
650,000
520,000
In over five years
1,040,000
1,332,500
1,820,000
1,985,000
ELEVATION RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
21
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Other information
In the year, purchases of £130,000 (2023: £97,500) were made with Strider Fox Global Limited, a company with mutual directorships.
At 31 December 2024, a balance of £75,480 is due to Strider Fox Global Limited.
22
Directors' transactions
The company has taken advantage of the exemption in accordance with Section 33 'Related party disclosures' not to disclose transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking to which it is party to the transactions and consolidated accounts are prepared.
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Director's Loan Account
-
33,920
50,780
(52,262)
32,438
33,920
50,780
(52,262)
32,438
23
Ultimate controlling party
Elevation Recruitment Group Limited is the parent company of Elevation Recruitment Limited. The shareholding of Elevation Recruitment Group Limited is held by Elevation Holdings Limited. The ultimate controlling party is Elevation EOT.
2024-12-312024-01-01falsefalsefalseCCH SoftwareCCH Accounts Production 2024.310L BhandalG ParkinsonJ BohanE Noble070956032024-01-012024-12-3107095603bus:Director12024-01-012024-12-3107095603bus:Director22024-01-012024-12-3107095603bus:Director32024-01-012024-12-3107095603bus:Director42024-01-012024-12-3107095603bus:RegisteredOffice2024-01-012024-12-31070956032024-12-31070956032023-01-012023-12-310709560312024-01-012024-12-310709560312023-01-012023-12-3107095603core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3107095603core:RetainedEarningsAccumulatedLosses2024-01-012024-12-31070956032023-12-3107095603core:LeaseholdImprovements2024-12-3107095603core:FurnitureFittings2024-12-3107095603core:ComputerEquipment2024-12-3107095603core:LeaseholdImprovements2023-12-3107095603core:FurnitureFittings2023-12-3107095603core:ComputerEquipment2023-12-3107095603core:CurrentFinancialInstrumentscore:WithinOneYear2024-12-3107095603core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3107095603core:CurrentFinancialInstruments2024-12-3107095603core:CurrentFinancialInstruments2023-12-3107095603core:ShareCapital2024-12-3107095603core:ShareCapital2023-12-3107095603core:SharePremium2024-12-3107095603core:SharePremium2023-12-3107095603core:OtherMiscellaneousReserve2024-12-3107095603core:OtherMiscellaneousReserve2023-12-3107095603core:RetainedEarningsAccumulatedLosses2024-12-3107095603core:RetainedEarningsAccumulatedLosses2023-12-3107095603core:ShareCapital2022-12-3107095603core:SharePremium2022-12-3107095603core:RetainedEarningsAccumulatedLosses2022-12-3107095603core:ShareCapitalOrdinaryShares2024-12-3107095603core:ShareCapitalOrdinaryShares2023-12-3107095603core:ShareCapital2023-01-012023-12-3107095603core:SharePremium2023-01-012023-12-3107095603core:ShareCapital2024-01-012024-12-3107095603core:SharePremium2024-01-012024-12-3107095603core:LeaseholdImprovements2024-01-012024-12-3107095603core:FurnitureFittings2024-01-012024-12-3107095603core:ComputerEquipment2024-01-012024-12-3107095603core:UKTax2024-01-012024-12-3107095603core:UKTax2023-01-012023-12-3107095603core:LeaseholdImprovements2023-12-3107095603core:FurnitureFittings2023-12-3107095603core:ComputerEquipment2023-12-31070956032023-12-3107095603core:Non-currentFinancialInstruments2024-12-3107095603core:Non-currentFinancialInstruments2023-12-31070956032022-12-3107095603core:WithinOneYear2024-12-3107095603core:WithinOneYear2023-12-3107095603core:BetweenTwoFiveYears2024-12-3107095603core:BetweenTwoFiveYears2023-12-3107095603core:MoreThanFiveYears2024-12-3107095603core:MoreThanFiveYears2023-12-3107095603bus:PrivateLimitedCompanyLtd2024-01-012024-12-3107095603bus:FRS1022024-01-012024-12-3107095603bus:Audited2024-01-012024-12-3107095603bus:FullAccounts2024-01-012024-12-31xbrli:purexbrli:sharesiso4217:GBP