Registration number:
Rise Technical Recruitment Limited
for the Year Ended 30 June 2024
Rise Technical Recruitment Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated group statement of comprehensive income |
|
Group statement of financial position |
|
Company statement of financial position |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Rise Technical Recruitment Limited
Company Information
Directors |
Mr BD McCarthy Mr JC Leng |
Registered office |
|
Accountants |
|
Auditors |
|
Rise Technical Recruitment Limited
Strategic Report for the Year Ended 30 June 2024
The directors present their strategic report for the year ended 30 June 2024.
Principal activity
The principal activity of the group is technical recruitment.
Results and dividends
Rise Technical Recruitment Limited presents its financial results for this financial period which, given the uncertainty of the economic conditions during this period, such as cost of living and rising inflation, show a satisfactory financial performance.
The group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2024 |
2023 |
Turnover |
£m |
21.86 |
21.69 |
Gross profit |
£m |
16.07 |
15.37 |
Net profit before taxation |
£m |
3.33 |
3.61 |
Principal risks and uncertainties
The Group operates primarily in the UK via the parent company, and the USA, Canada, Germany and The Netherlands through its subsidiaries located in those countries.
The following is a summary of the risks and uncertainties that the company faces:
Debtors
Due to the current financial climate, there is a moderate risk of debtors going into administration or liquidation. Our admin team work closely with our clients to try and mitigate the risk of suffering a bad debt cost by maintaining good working relationships and identifying any alarming factors. Risk is also minimised by giving payment terms depending on the credit rating of the organisation, with more favourable credit terms given to the more robust companies.
Cashflow
The cashflow of the company is an area open to financial risk. As a result of this, strong credit control procedures are in place to ensure that debtors are collected within the due period. The Group only looks to pursue new contracts with reliable customers on payment terms that are favourable to the group. This, along with other cash management policies, has resulted in the group maintaining a strong cash balance.
Claims
The risk of large compensation claims for injuries, poor workmanship or damage is covered by training, standard operating procedures and policies, supervision and insurance.
Rise Technical Recruitment Limited
Strategic Report for the Year Ended 30 June 2024
Going concern
Management prepare budgets and the group’s performance is monitored against these budgets. This enables management to assess the anticipated cash flow requirements of the group and ensure that sufficient liquidity is available within the group to meet its cash requirements. As the group expands into new markets it also budgets for the expected cash flow impact of this expansion. The group generated an operating cash inflow in the year of £2.45m and had cash and cash equivalents at 30 June 2024 of £1.29m. The directors expect these cash inflows to continue through 2025 despite the more difficult economic conditions. As a result they expect the group to continue to operate as a going concern.
Approved by the
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Rise Technical Recruitment Limited
Directors' Report for the Year Ended 30 June 2024
The directors present their report and the for the year ended 30 June 2024.
Directors of the group
The directors who held office during the year were as follows:
Dividends
Interim dividends of £2.65 per ordinary share, a total of £2,650,000, were paid during the year ended 30 June 2024 (2023: £2.64 per ordinary share, a total of £2,640,000).
The directors have recommended that no final dividend is paid in respect of the year ended 30 June 2024.
Financial instruments
Objectives, policies and risk
Credit risk
The group has exposure to credit risk, attributable to trade debtors. These risks are mitigated by undertaking credit risk checks prior to commercial terms being agreed with clients, along with strong collection processes being in place.
Liquidity risk
There is a risk that the group may not be able to meet its short-term financial obligations. Credit terms and cash collections are carefully managed and cash flow forecasts are prepared and regularly reviewed. The group regularly speaks to bankers to ensure that appropriate facilities are in place.
Future developments
Trading in 2024/2025 has slowed across the UK recruitment market due to the contracting jobs market.
The group is focusing on growing its presence abroad and has now opened its second office in the USA.
There is confidence that market share can be increased in the territories of each subsidiary.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
In accordance with the company' articles, a resolution proposing that PKF Francis Clark be reappointed as auditor of the group will be put at a general meeting.
Rise Technical Recruitment Limited
Directors' Report for the Year Ended 30 June 2024
Approved by the
......................................... |
Rise Technical Recruitment Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Rise Technical Recruitment Limited
Independent Auditor's Report to the Members of Rise Technical Recruitment Limited
Opinion
We have audited the financial statements of Rise Technical Recruitment Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024, which comprise the consolidated group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the consolidated statement of changes in equity, the statement of changes in equity, the consolidated statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 30 June 2024 and of the group's profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and the 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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group or parent company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information 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.
Rise Technical Recruitment Limited
Independent Auditor's Report to the Members of Rise Technical Recruitment Limited
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors’ remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the director's 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 group and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Rise Technical Recruitment Limited
Independent Auditor's Report to the Members of Rise Technical Recruitment Limited
Auditor responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the group and parent company 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
As part of our audit planning, we obtained an understanding of the legal and regulatory framework that is applicable to the group and the industry/sector in which it operates to identify the key laws and regulations affecting the entity. As part of this assessment process, we discussed with management the laws and regulations applicable to the group and parent company, reviewed certification identified on the company website and other communications.
The key regulations we identified were employment legislation and the General Data Protection Regulation (“GDPR").
We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily Companies Act 2006 and Corporation Taxes Acts 2009 & 2010. We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place.
We also identified the individuals who have responsibility for ensuring that the entity complies with laws and regulations and deal with reporting any issues if they arise.
As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the entity’s ability to continue trading and the risk of material misstatement to the financial statements.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations.
Rise Technical Recruitment Limited
Independent Auditor's Report to the Members of Rise Technical Recruitment Limited
Our procedures involved the following:
• Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements
• Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance
• Reviewed the Information Commissioners Office website for any indications of breaches during and after the period of which there were none.
We also evaluated management’s incentives and opportunities for management bias, override of controls and manipulation of the financial statements. The key incentive identified is to manipulate revenue and we determined that the principal risks were related to the overstatement of profits via overstating revenue. To address the risk, we:
• Used data analytics to test journal entries throughout the year, for appropriateness.
• Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates.
• Undertook specific cut-off procedures in respect of revenue around the year end.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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 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 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.
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Ground Floor
90 Victoria Street
BS1 6DP
Rise Technical Recruitment Limited
Consolidated group statement of comprehensive income for the Year Ended 30 June 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
- |
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
( |
|
4,346 |
968 |
||
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
|
Retained earnings brought forward |
2,788,855 |
2,577,260 |
|
Dividends paid |
( |
( |
|
Share based payments |
29,033 |
8,488 |
|
Retained earnings carried forward |
2,729,665 |
2,788,855 |
Rise Technical Recruitment Limited
(Registration number: 05490121)
Group statement of financial position as at 30 June 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
3 |
3 |
|
Profit and loss account |
2,729,665 |
2,788,855 |
|
Equity attributable to owners of the company |
2,729,668 |
2,788,858 |
|
Shareholders' funds |
2,729,668 |
2,788,858 |
Approved and authorised by the
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Rise Technical Recruitment Limited
(Registration number: 05490121)
company statement of financial position as at 30 June 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
3 |
3 |
|
Retained earnings |
1,999,380 |
2,511,482 |
|
Shareholders' funds |
1,999,383 |
2,511,485 |
The company made a profit after tax for the financial year of £2,108,865 (2023 - profit of £2,608,027). The entity has taken exemption from presenting its unconsolidated profit and loss account under section 408 of Companies Act 2006.
Approved and authorised by the
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Rise Technical Recruitment Limited
Consolidated Statement of Changes in Equity for the Year Ended 30 June 2024
Equity attributable to the parent company
Share capital |
Profit and loss account |
Total |
|
At 1 July 2023 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
Dividends |
- |
( |
( |
Share based payment transactions |
- |
29,033 |
29,033 |
At 30 June 2024 |
|
|
|
Share capital |
Profit and loss account |
Total |
|
At 1 July 2022 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
Dividends |
- |
( |
( |
Share based payment transactions |
- |
8,488 |
8,488 |
At 30 June 2023 |
|
|
|
Rise Technical Recruitment Limited
Statement of Changes in Equity for the Year Ended 30 June 2024
Share capital |
Retained earnings |
Total |
|
At 1 July 2023 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
Share based payment transactions |
- |
29,033 |
29,033 |
At 30 June 2024 |
|
|
|
Share capital |
Retained earnings |
Total |
|
At 1 July 2022 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
Share based payment transactions |
- |
8,488 |
8,488 |
At 30 June 2023 |
3 |
2,511,482 |
2,511,485 |
Rise Technical Recruitment Limited
Consolidated Statement of Cash Flows for the Year Ended 30 June 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
- |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Share based payment transactions |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
(Increase)/decrease in trade debtors |
( |
|
|
Increase/(decrease) in trade creditors |
|
( |
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
- |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net decrease in cash and cash equivalents |
( |
( |
|
Cash and cash equivalents at 1 July |
|
|
|
Cash and cash equivalents at 30 June |
1,293,184 |
1,551,060 |
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
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 £1.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 June 2024.
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.
A joint venture is a joint arrangement whereby two or more parties have joint control. This typically involves rights to the net assets of the arrangement, rather than rights to the assets and obligations for the liabilities.
Joint control exists when decisions about the relevant activities require unanimous consent from the parties involved.
The equity method of accounting for joint ventures has been applied.
Going concern
The group generated an operating cash inflow in the year of £2.45m and had cash and cash equivalents at 30 June 2024 of £1.29m. The directors expect these cash inflows to continue through 2025 despite the more difficult economic conditions based upon the forecasts prepared. Current trade and future commitments also indicate those cash inflows are likely to continue through 2025. As a result the financial statements have been prepared on a going concern basis.
Judgements
Significant Judgements |
The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: |
1) To determine whether leases entered into by the company as a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
2) The group assesses the likelihood of clawback of revenue for permanent placements that are within the clawback period at the year-end. Where management believe that a candidate has or is likely to leave their post before the end of the clawback period a provision is made against this revenue. No provision has been made in the current year as the amount of any clawback suffered is immaterial.
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
1) Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
The net book value of these assets at the 30 June 2024 amount to £203,609 (2023: £281,531).
2) Commissions are recognised on all placements during the specified terms. The company does however review this where there is specific concern that the client will not pay the fee or where activators are not likely to be achieved.
The commissions accrued at the 30 June 2024 amount to £551,017 (2023: £553,920)
3)The fair value of the group equity settled share based payments is partly derived from estimates of the vesting period, the future volatility of the Company's share price, expected dividend yields and risk-free interest rates. These estimates are applied at the date of grant.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales between group companies.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Contract revenue recognition
Revenue from the placement of permanent candidates is recognised on the first day of the candidates employment, net of discounts and Value Added Tax.
The group assesses the likelihood of clawback of revenue for permanent placements that are within the clawback period at the year-end. Where management believe that a candidate has or is likely to leave their post before the end of the clawback period a provision is made against this revenue.
Revenue from the placement of temporary candidates is recognised with reference to the number of hours worked by the candidate, net of discounts and Value Added Tax.
Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.
Government grants
Money due on government grants are recognised in the profit and loss account in the period to which it
relates.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Leasehold improvements |
3 - 5 years straight line |
Fixtures and fittings |
25% reducing balance / 3 years straight line |
Plant and machinery |
3 years straight line |
Office equipment |
5 years straight line |
Investments
Investments in subsidiary shares are measured at cost less impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Provisions
Holiday Pay Accrual
A liability is recognised to the extent of any unused holiday pay entitlement which has accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Share based payments
The group operates an equity-settled, share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the entity. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model. The total amount expensed is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.
The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Financial instruments
Classification
Recognition and measurement
Debt instruments are subsequently measured at amortised cost.
Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment.
Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Rendering of services |
|
|
The analysis of the group's turnover for the year by geographical area is as follows:
2024 |
2023 |
|
United Kingdom |
16,202,144 |
18,124,844 |
Rest of Europe |
548,882 |
710,414 |
Rest of the World |
5,104,918 |
2,849,723 |
21,855,944 |
21,684,981 |
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2024 |
2023 |
|
Miscellaneous other operating income |
|
- |
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Foreign exchange losses |
|
|
Operating lease expense - property |
|
|
Operating lease expense - plant and machinery |
|
|
Profit on disposal of property, plant and equipment |
( |
- |
Share-based payment expenses |
29,033 |
8,488 |
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Other interest receivable and similar income |
2024 |
2023 |
|
Interest income on bank deposits |
|
|
Other finance income |
|
|
|
|
Interest payable and similar expenses |
2024 |
2023 |
|
Interest expense on other finance liabilities |
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Share-based payment expenses |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Administration and support |
|
|
Sales |
|
|
Other departments |
|
|
|
|
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
- |
34,400 |
14,400 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2024 |
2023 |
|
Received or were entitled to receive shares under long term incentive schemes |
|
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2024 |
2023 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
- |
Auditors' remuneration |
2024 |
2023 |
|
Audit of these financial statements |
25,000 |
20,000 |
Non audit services provided |
5,340 |
21,750 |
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Taxation |
Tax charged/(credited) in the group statement of comprehensive income
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
( |
631,593 |
725,282 |
|
Foreign tax |
|
|
Total current income tax |
784,861 |
800,535 |
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
( |
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Decrease in UK and foreign current tax from adjustment for prior periods |
( |
( |
Tax increase from effect of capital allowances and depreciation |
|
|
Increase from effect of different UK tax rates on some earnings |
- |
|
Tax decrease from other short-term timing differences |
( |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Effect of foreign tax rates |
|
|
Tax increase from other tax effects |
|
|
Total tax charge |
|
|
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Tangible assets |
Group
Leasehold improvements |
Fixtures and fittings |
Plant and machinery |
Office equipment |
Total |
|
Cost or valuation |
|||||
At 1 July 2023 |
|
|
|
|
|
Additions |
|
|
- |
|
|
Disposals |
- |
- |
- |
( |
( |
At 30 June 2024 |
|
|
|
|
|
Depreciation |
|||||
At 1 July 2023 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
- |
- |
( |
( |
At 30 June 2024 |
|
|
|
|
|
Carrying amount |
|||||
At 30 June 2024 |
|
|
|
|
|
At 30 June 2023 |
|
|
|
|
|
Included within the net book value of leasehold improvements above is £118,950 (2023 - £148,147) in respect of short leasehold land and buildings.
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Company
Leasehold improvements |
Fixtures and fittings |
Plant and machinery |
Office equipment |
Total |
|
Cost or valuation |
|||||
At 1 July 2023 |
|
|
|
|
|
Additions |
|
|
- |
|
|
Disposals |
- |
- |
- |
( |
( |
At 30 June 2024 |
|
|
|
|
|
Depreciation |
|||||
At 1 July 2023 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
- |
- |
( |
( |
At 30 June 2024 |
|
|
|
|
|
Carrying amount |
|||||
At 30 June 2024 |
|
|
|
|
|
At 30 June 2023 |
|
|
|
|
|
Included within the net book value of leasehold improvements above is £118,950 (2023 - £148,147) in respect of short leasehold land and buildings.
Investments |
Company
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 July 2023 |
|
Carrying amount |
|
At 30 June 2024 |
|
At 30 June 2023 |
|
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
|||
Subsidiary undertakings |
||||
|
33 Colston, Colston Avenue, Bristol, BS1 4UA United Kingdom |
|
|
|
|
Joop Geesinkweg 901-999
Netherlands |
|
|
|
|
Alt-Heerdt 104
Germany |
|
|
|
|
1011 Centre Road - Suite 322
United States of America |
|
|
|
|
333 Bering Ave.
Canada |
|
|
|
Joint ventures |
||||
|
33 Colston, Colston Avenue, Bristol, BS1 4UA |
Ordinary |
|
|
United Kingdom |
Subsidiary undertakings |
Rise IT Recruitment Limited The principal activity of Rise IT Recruitment Limited is |
Rise Technical Recruitment Bv The principal activity of Rise Technical Recruitment Bv is |
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Rise Technical Recruitment GmbH The principal activity of Rise Technical Recruitment GmbH is |
Rise Technical Recruitment Inc The principal activity of Rise Technical Recruitment Inc is |
Rise Technical Recruitment Corp The principal activity of Rise Technical Recruitment Corp is |
Joint ventures |
Newspace Technical Recruitment Limited The principal activity of Newspace Technical Recruitment Limited is |
Debtors |
Group |
Company |
||||
Current |
Note |
2024 |
2023 |
2024 |
2023 |
Trade debtors |
|
|
|
|
|
Amounts owed by related parties |
|
|
|
|
|
Other debtors |
|
|
|
|
|
Prepayments |
|
|
|
|
|
Income tax asset |
|
- |
- |
- |
|
|
|
|
|
Included in other debtors, for both the group and the company, are funds held in the factoring facility, not yet drawn down.
There is a fixed and floating charge over all the assets of the company held by Lloyds Bank Commercial Finance Limited.
Details of non-current trade and other debtors
Group
£6,311 (2023 - £Nil) of prepayments is classified as non current.
Company
£6,311 (2023 - £Nil) of prepayments is classified as non current.
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Cash and cash equivalents |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Cash on hand |
- |
|
- |
|
Cash at bank |
|
|
|
|
Short-term deposits |
|
|
|
|
|
|
|
|
Creditors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Due within one year |
|||||
Trade creditors |
|
|
|
|
|
Amounts due to related parties |
- |
- |
|
|
|
Social security and other taxes |
|
|
|
|
|
Other payables |
|
|
|
|
|
Accruals |
|
|
|
|
|
Income tax liability |
238,533 |
402,670 |
195,648 |
315,454 |
|
|
|
|
|
There is a fixed and floating charge over all the assets of the company held by Lloyds Bank Commercial Finance Limited.
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Provisions for liabilities |
Group
Deferred tax |
Total |
|
Accelerated capital allowances at 1 July 2023 |
|
|
Increase (decrease) in accelerated capital allowances provisions |
( |
( |
At 30 June 2024 |
|
|
|
Company
Deferred tax |
Total |
|
Accelerated capital allowances at 1 July 2023 |
|
|
Increase (decrease) in accelerated capital allowances provisions |
( |
( |
At 30 June 2024 |
|
|
|
The deferred tax provision is wholly due to the advanced corporation tax relief achieved due to the annual investment allowance and super deduction relief obtained, ahead of the depreciation of those assets in the financial statements.
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
1.00 |
|
1.00 |
|
|
1.00 |
|
1.00 |
|
|
1.00 |
|
1.00 |
|
|
|
|
Rights, preferences and restrictions
A Ordinary shares have the following rights, preferences and restrictions: |
B Ordinary shares have the following rights, preferences and restrictions: |
C Ordinary shares have the following rights, preferences and restrictions: |
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Share-based payments |
Scheme details and movements
Options are forfeited if the employee leaves the company before the options vest. The fair value of the share options at the grant date was calculated using the Black Scholes model, which is considered to be the most appropriate generally accepted valuation method of measuring fair value.
The Black-Scholes option pricing model was used to value the share-based payment awards as it was considered that this approach would result in a materially accurate estimate of the fair value of options granted. The volatility assumption, measured at the standard deviation of expected share price return, is based on statistical analysis of daily share prices of comparable publicly quoted companies.
The company did not enter into any share-based payment transactions with the parties other than employees during the current or previous periods.
Of the outstanding options, none are held by a director of the company.
The movements in the number of share options during the year were as follows:
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
2024 |
2023 |
|
Outstanding, start of period |
|
- |
Granted during the period |
- |
|
Outstanding, end of period |
|
|
|
The movements in the weighted average exercise price of share options during the year were as follows:
2024 |
2023 |
|
Outstanding, start of period |
|
- |
Granted during the period |
- |
|
Outstanding, end of period |
|
|
|
Fair value of share options
The fair value of the share options granted during the year ended 30 June 2024 (and 2023) was calculated using the Black-Scholes option pricing model. The key assumptions used in the calculation were:
• |
Grant date: 15 March 2023 |
• |
Exercise price: £0.63 |
• |
Market price at grant date: £1.30 |
• |
Expected life of options: 10 years |
• |
Risk-free interest rate: 0.5% |
• |
Expected volatility: 50% |
Dividends |
2024 |
2023 |
|||
£ |
£ |
|||
Interim dividend of £ |
2,650,000 |
2,640,000 |
||
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Related party transactions |
Group
Other transactions with directors |
As at the year end the company was owed £Nil by the directors (2023: £Nil).
The directors are the only key management personnel, total directors salaries for the year amount to £14,400 (2023: £14,400).
Dividends paid to the directors during the year amount to £2,650,000 (2023: £2,640,000).
Summary of transactions with all associates
As at the 30 June 2024 Future Engineering Recruitment Ltd owed £6,818 (2023: £6,818) to Rise Technical Recruitment Ltd. No further activity occurred between the two companies in this year.
Mr J Leng and Mr B McCarthy are also directors of Rise Investment Property Ltd and hold 100% of the issued share capital collectively.
As at the 30 June 2024 Rise Investment Property Ltd owed £261,655 (2023: £261,655) to Rise Technical Recruitment Ltd.
Mr J Leng and Mr B McCarthy are also directors of Ashenbury Investments Ltd and hold 66% of the issued share capital collectively.
As at the 30 June 2024 Ashenbury Investments Ltd owed £121,624 (2023: £121,624) to Rise Technical Recruitment Ltd.
Mr J Leng and Mr B McCarthy are also directors of Newspace Technical Recruitment Ltd and the company holds 50% of the issued share capital.
As at the 30 June 2024 Newspace Technical Recruitment Ltd owed £30,000 (2023: £nil) to Rise Technical Recruitment Ltd.
During year ended 30 June 2024 Rise Technical Recruitment Ltd supplied services to Newspace Technical Recruitment Ltd of £21,464 (2023: £nil).
At the 30 June 2024 Rise Technical Recruitment Ltd were also owed £381 (2023: £381) from a new subsidiary being established in the United Arab Emirates for set up costs.
Rise Technical Recruitment Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Financial instruments |
Group
Categorisation of financial instruments
2024 |
2023 |
|
Financial assets that are debt instruments measured at amortised cost |
|
|
Financial liabilities measured at amortised cost |
|
|
Company
Categorisation of financial instruments
2024 |
2023 |
|
Financial assets that are debt instruments measured at amortised cost |
|
|
Financial liabilities measured at amortised cost |
|
|
Parent and ultimate parent undertaking |