Company registration number 11935948 (England and Wales)
FCN GROUP LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
FCN GROUP LTD
COMPANY INFORMATION
Directors
Mr B J Lambert
Mrs L E Lambert
Mr O Lambert
Company number
11935948
Registered office
2-4 Elm Court
Stratford-upon-Avon
Warwickshire
CV37 6PA
Auditor
Whitley Stimpson Limited
Penrose House
67 Hightown Road
Banbury
Oxfordshire
OX16 9BE
FCN GROUP LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11 - 24
FCN GROUP LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
The results for the year and the financial position of the company at the year end, as detailed in these financial statements, show a turnover of £16.8 million compared to £16.5 million in 2023. Profit before taxation was £186,312 compared to £472,747 the previous year. Some fluctuation in performance is natural in a project-based business and the directors are confident that the company will continue to grow.
Principal risks and uncertainties
Credit Risk
The company trades with only recognised, creditworthy third parties. Customers are subject to credit verification procedures for those who wish to trade on credit terms. In addition our receivable balances are covered by insurance via a third party.
Economic risk
The success of the business is reliant on the demand of outsourced nursing and healthcare staff. The company operates at a number of sites across England which allows access to a large number of hospitals and nursing homes. The company constantly monitors the opportunity to diversify revenue streams to negate economic risk.
Supply chain
A strong relationship is maintained with candidates to continually monitor their ability to service the group as it grows in size.
Liquidity risk
Prudent liquidity management requires maintaining sufficient cash resources and availability of funding through committed credit facilities. The directors of the business regularly monitor cashflow.
Future developments
The directors of the business are committed to the continued growth of the business by targeting new markets and therefore new revenue streams.
Mr B J Lambert
Director
20 March 2025
FCN GROUP LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of the recruitment and placement of temporary staff into the healthcare industry.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends paid during the year amounted to £80,000.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr B J Lambert
Mrs L E Lambert
Mr P R Sanders
(Resigned 1 September 2023)
Mr O Lambert
Mr B P Sanders
(Resigned 15 August 2023)
Directors' insurance
The company maintains insurance policies on behalf of all the directors against liability arising from negligence, breach of duty and breach of trust in relation to the company.
Financial instruments
The financial activities within FCN Group Limited are managed by in house finance function.
The company’s principal financial instruments comprise financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations. In accordance with the company’s treasury policy, derivative instruments are not entered into for speculative purposes.
Post reporting date events
Post year end a legal dispute arose involving a customer of the company, with a claim amounting to £355,236. This event is considered a non-adjusting post balance sheet event as it pertains to circumstances that arose after the reporting date.
The outcome of this dispute remains uncertain as of the date of approval of these financial statements. While the company is contesting the claim, it is not possible at this stage to determine the likelihood of the claim being upheld or to reliably estimate the financial effect of this event.
The directors will continue to monitor the situation and take appropriate actions to mitigate any potential impact on the company.
Future developments
The directors intend to continue to operate the company with its existing activities, whilst taking advantage of opportunities as they arise. Future developments are discussed further in the Strategic Report on page 1.
Auditor
In accordance with the company's articles, a resolution proposing that Whitley Stimpson Limited be appointed as auditor of the company will be put at a General Meeting.
FCN GROUP LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's Strategic Report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the Directors' Report. It has done so in respect of the performance of the company and financial risk management.
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.
On behalf of the board
Mr B J Lambert
Director
20 March 2025
FCN GROUP LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
The directors are responsible 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 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;
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.
FCN GROUP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FCN GROUP LTD
- 5 -
Opinion
We have audited the financial statements of FCN Group Ltd (the 'company') for the year ended 31 March 2024 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 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.
FCN GROUP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FCN GROUP LTD (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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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.
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:
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to the risk of revenue recognition being materially misstated due to fraud, calculation of the warranty provision and management charges, the lack of segregation of duties, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006 and tax legislation.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to revenue. Audit procedures performed included:
Discussion amongst the audit team regarding the susceptibility of the client to fraud;
Consideration of the risk of fraud when documenting and reviewing internal controls and procedures;
Enquiring of management how they assess the risk of fraud, and identify and respond to the risks of fraud;
Enquiring of management whether they have any knowledge of actual or suspected frauds
Review of those charged with governance, how they exercise oversight of management's process for identifying and responding to the risk of fraud;
Substantive testing of revenue and debtors;
Review of journals for unusual items;
Verification of employees;
Review of relevant tax correspondence;
Review of bank reconciliations for evidence of window dressing;
Review of management bias and internal controls designed to reduce the risk associated with the lack of segregation of duties.
FCN GROUP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FCN GROUP LTD (CONTINUED)
- 7 -
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Other matters which we are required to address
We have been appointed to audit the financial statements for the year ended 31 March 2024. The scope of our engagement does not extend to auditing comparative information. To this extent, the comparative financial statements, being for the year ended 31 March 2023, are unaudited. We do not express an opinion on whether the comparative information provides a true and fair view of the company's affairs as at 31 March 2023 and of its profit for the year then ended.
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.
20 March 2025
Michelle Lucas
Senior Statutory Auditor
For and on behalf of Whitley Stimpson Limited
Chartered Accountants
Statutory Auditor
Penrose House
67 Hightown Road
Banbury
Oxfordshire
OX16 9BE
FCN GROUP LTD
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
2
16,809,245
16,467,841
Cost of sales
(12,638,202)
(12,282,825)
Gross profit
4,171,043
4,185,016
Administrative expenses
(3,975,295)
(3,711,874)
Operating profit
3
195,748
473,142
Interest receivable and similar income
6
334
532
Interest payable and similar expenses
7
(10,390)
(927)
Amounts written off investments
8
620
-
Profit before taxation
186,312
472,747
Tax on profit
9
(55,429)
(97,083)
Profit for the financial year
130,883
375,664
Retained earnings brought forward
131,913
191,499
Dividends
10
(80,000)
(435,250)
Retained earnings carried forward
182,796
131,913
The profit and loss account has been prepared on the basis that all operations are continuing operations.
FCN GROUP LTD
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
3,373
4,467
Tangible assets
13
232,625
248,042
Investments
14
100
235,998
252,609
Current assets
Debtors
15
382,871
265,027
Cash at bank and in hand
101,169
104,719
484,040
369,746
Creditors: amounts falling due within one year
16
(425,857)
(417,796)
Net current assets/(liabilities)
58,183
(48,050)
Total assets less current liabilities
294,181
204,559
Creditors: amounts falling due after more than one year
19
(93,732)
(63,143)
Provisions for liabilities
Deferred tax liability
20
17,553
9,403
(17,553)
(9,403)
Net assets
182,896
132,013
Capital and reserves
Called up share capital
22
100
100
Profit and loss reserves
182,796
131,913
Total equity
182,896
132,013
The financial statements were approved by the board of directors and authorised for issue on 20 March 2025 and are signed on its behalf by:
Mr B J Lambert
Mrs L E Lambert
Director
Director
Company Registration No. 11935948
FCN GROUP LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
135,359
475,286
Interest paid
(10,390)
(927)
Income taxes paid
(91,174)
(54,046)
Net cash inflow from operating activities
33,795
420,313
Investing activities
Purchase of intangible assets
(5,470)
Purchase of tangible fixed assets
(11,581)
(40,874)
Proceeds from disposal of tangible fixed assets
51,817
Purchase of subsidiaries
(100)
Loans (made to)/received from other entities
(3,000)
24,440
Receipt of/(repayment of) loans
26,671
(31,475)
Interest received
532
Net cash generated from/(used in) investing activities
63,907
(52,947)
Financing activities
Proceeds from borrowings
(1,250)
Repayment of borrowings
(100)
1,250
Repayment of bank loans
(10,000)
(10,000)
Payment of finance leases obligations
(27,152)
9,828
Dividends paid
(64,000)
(397,725)
Net cash used in financing activities
(101,252)
(397,897)
Net decrease in cash and cash equivalents
(3,550)
(30,531)
Cash and cash equivalents at beginning of year
104,719
135,250
Cash and cash equivalents at end of year
101,169
104,719
FCN GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
1
Accounting policies
Company information
FCN Group Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 2-4 Elm Court, Stratford-upon-Avon, Warwickshire, CV37 6PA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
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 is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business.
Revenue arises from the provision of labour to clients. Amounts are recognised as revenue at the point when services are provided to clients and to the extent that the costs have been incurred, or where costs to complete the services being contracted can be estimated reliably.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Software
5 years straight line
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
10 years straight line
Fixtures and fittings
15% on reducing balance
Computers
20% on cost and 3 years straight line
Motor vehicles
25% on reducing balance
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.
FCN GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs 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.
FCN GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
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, bank loans and loans from related 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.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
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.
FCN GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
2
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Recruitment and placement fees
16,809,245
16,467,841
FCN GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Turnover and other revenue
(Continued)
- 15 -
2024
2023
£
£
Other revenue
Interest income
334
532
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
22,500
Depreciation of owned tangible fixed assets
37,705
42,522
Depreciation of tangible fixed assets held under finance leases
25,335
1,025
Profit on disposal of tangible fixed assets
(15,077)
-
Amortisation of intangible assets
1,094
1,003
Operating lease charges
149,536
156,806
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Nurses and carers
174
169
Administration
46
44
Total
220
213
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
5,985,016
5,764,534
Social security costs
554,076
577,927
Pension costs
68,025
63,577
6,607,117
6,406,038
FCN GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
462,842
550,864
Company pension contributions to defined contribution schemes
7,761
8,092
470,603
558,956
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
164,347
270,142
Company pension contributions to defined contribution schemes
-
6,960
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
1
Other interest income
333
532
Total income
334
532
2024
2023
Investment income includes the following:
£
£
Interest on bank deposits
1
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on loans
3,386
927
Other finance costs:
Interest on finance leases and hire purchase contracts
7,004
-
10,390
927
FCN GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
8
Amounts written off investments
2024
2023
£
£
Amounts written off current loans
(164)
-
Amounts written back to financial liabilities
784
-
620
-
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
47,279
91,174
Adjustments in respect of prior periods
(24)
Total current tax
47,279
91,150
Deferred tax
Origination and reversal of timing differences
8,150
4,838
Changes in tax rates
1,095
Total deferred tax
8,150
5,933
Total tax charge
55,429
97,083
On the 1 April 2023 the rate of corporation tax in the UK was raised from 19% to 25%.
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
186,312
472,747
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
46,578
89,822
Tax effect of expenses that are not deductible in determining taxable profit
8,840
4,206
Effect of change in corporation tax rate
96
3,080
Under/(over) provided in prior years
(25)
Other tax adjustments
(85)
Taxation charge for the year
55,429
97,083
FCN GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
10
Dividends
2024
2023
£
£
Interim paid
80,000
435,250
11
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2024
2023
Notes
£
£
In respect of:
Fixed asset investments
14
100
-
Recognised in:
Administrative expenses
100
-
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
The impairment losses relate to an investment in FCN Homecare Limited, on which the investment is now not deemed to be recoverable.
12
Intangible fixed assets
Software
£
Cost
At 1 April 2023 and 31 March 2024
5,470
Amortisation and impairment
At 1 April 2023
1,003
Amortisation charged for the year
1,094
At 31 March 2024
2,097
Carrying amount
At 31 March 2024
3,373
At 31 March 2023
4,467
FCN GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
13
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
129,995
8,128
63,782
120,252
322,157
Additions
348
6,096
2,803
75,116
84,363
Disposals
(2,600)
(71,050)
(73,650)
At 31 March 2024
130,343
14,224
63,985
124,318
332,870
Depreciation and impairment
At 1 April 2023
13,000
1,779
27,226
32,110
74,115
Depreciation charged in the year
13,011
1,352
18,579
30,098
63,040
Eliminated in respect of disposals
(1,083)
(35,827)
(36,910)
At 31 March 2024
26,011
3,131
44,722
26,381
100,245
Carrying amount
At 31 March 2024
104,332
11,093
19,263
97,937
232,625
At 31 March 2023
116,995
6,349
36,556
88,142
248,042
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
97,937
48,177
Tangible fixed assets with a carrying amount of £232,625 (2023 - £248,042) have been pledged by way of fixed and floating charges to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.
Amounts due in relation to finance leases are secured against the assets to which they relate.
14
Fixed asset investments
2024
2023
£
£
Investments in subsidiaries
100
FCN GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
14
Fixed asset investments
(Continued)
- 20 -
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 & 31 March 2024
100
Impairment
At 1 April 2023
-
Impairment losses
100
At 31 March 2024
100
Carrying amount
At 31 March 2024
-
At 31 March 2023
100
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
80,091
655
Other debtors
8,228
248,058
Prepayments and accrued income
53,930
16,314
142,249
265,027
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
240,622
Total debtors
382,871
265,027
FCN GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
10,000
10,000
Obligations under finance leases
18
32,552
12,554
Trade creditors
27,548
466
Amounts owed to group undertakings
100
100
Corporation tax
47,049
90,944
Other taxation and social security
57,810
249,839
Other creditors
31,161
30,512
Accruals and deferred income
219,637
23,381
425,857
417,796
17
Loans and overdrafts
2024
2023
£
£
Bank loans
21,667
31,667
Payable within one year
10,000
10,000
Payable after one year
11,667
21,667
The long-term loans are unsecured and relate to the bounce back loan scheme.
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
39,254
14,871
In two to five years
89,816
44,612
129,070
59,483
Less: future finance charges
(14,453)
(5,453)
114,617
54,030
Finance lease payments represent rentals payable by the company for certain items of tangible fixed assets. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Amounts owed by the company under finance leases are secured on the assets concerned.
FCN GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
19
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans
17
11,667
21,667
Obligations under finance leases
18
82,065
41,476
93,732
63,143
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
19,726
9,403
Pension creditor
(2,173)
-
17,553
9,403
2024
Movements in the year:
£
Liability at 1 April 2023
9,403
Charge to profit or loss
8,150
Liability at 31 March 2024
17,553
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
68,025
63,577
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.
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
100
100
100
100
FCN GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
23
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
102,607
70,426
Between two and five years
232,295
124,888
334,902
195,314
24
Events after the reporting date
Post year end a legal dispute arose involving a customer of the company, with a claim amounting to £355,236. This event is considered a non-adjusting post balance sheet event as it pertains to circumstances that arose after the reporting date.
The outcome of this dispute remains uncertain as of the date of approval of these financial statements. While the company is contesting the claim, it is not possible at this stage to determine the likelihood of the claim being upheld or to reliably estimate the financial effect of this event.
The directors will continue to monitor the situation and take appropriate actions to mitigate any potential impact on the company.
25
Related party transactions
Transactions with related parties
During the year ended 31 March 2024, FCN Group Limited received services from FCN Training Limited, a company connected by virtue of having common controlling persons with FCN Group Limited. The purchases made by FCN Group Limited during the year amounted to £6,968 (2023 - £1,250).
During the year ended 31 March 2024, FCN Group Limited issued invoices for training costs to FCN Training Limited to the amount of £35,214 (2023 - £nil). This amount was settled in the year.
During the year ended 31 March 2024, FCN Group Limited issued invoices for fixed asset purchases to Simple Pay Solutions Limited to the amount of £1,733 (2023 - £nil). Simple Pay Solutions Limited is a company connected by virtue of having common controlling persons with FCN Group Limited. This amount was settled in the year.
2024
2023
Amounts due to related parties
£
£
FCN Training Limited
-
784
Amounts due to FCN Training Limited were written off in the year.
Other information
In accordance with section 33.1A of FRS 102, disclosure is not given in these financial statements of transactions entered into between two or more members of the group, provided that any subsidiary which is party to the transaction is wholly owned by such a member.
FCN GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
26
Guarantees provided to third parties
FCN Group Limited is the guarantor for NNS Healthcare Limited, a related party by virtue of having common controlling persons with FCN Group Limited. The guarantee is in relation to a finance agreement in which the company agrees to indemnify and keep indemnified the financier in full, and on demand from and against, all and any losses incurred.
27
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
130,883
375,664
Adjustments for:
Taxation charged
55,429
97,083
Finance costs
10,390
927
Investment income
(334)
(532)
Gain on disposal of tangible fixed assets
(15,077)
-
Amortisation and impairment of intangible assets
1,094
1,003
Depreciation and impairment of tangible fixed assets
63,040
43,547
Impairment of investments
100
-
Other gains and losses
(620)
-
Movements in working capital:
Increase in debtors
(141,435)
(203,700)
Increase in creditors
31,889
161,294
Cash generated from operations
135,359
475,286
28
Analysis of changes in net funds/(debt)
1 April 2023
Cash flows
New finance leases
Other non-cash changes
31 March 2024
£
£
£
£
£
Cash at bank and in hand
104,719
(3,550)
-
-
101,169
Borrowings excluding overdrafts
(31,667)
9,216
-
784
(21,667)
Obligations under finance leases
(54,030)
27,152
(87,739)
-
(114,617)
19,022
32,818
(87,739)
784
(35,115)
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