Company registration number 06570143 (England and Wales)
MAJOR RECRUITMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
MAJOR RECRUITMENT LIMITED
COMPANY INFORMATION
Directors
Philip Bottomley
Katie Nebard
Joanne Lofts
Kelly Tulloch
Ross Bagley
Company number
06570143
Registered office
16a Market Avenue
Huddersfield
West Yorkshire
United Kingdom
HD1 2BB
Auditor
BHP LLP
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
MAJOR RECRUITMENT LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Directors' responsibilities statement
7
Independent auditor's report
8 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 30
MAJOR RECRUITMENT LIMITED
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
During the year to 31st March 2024 the company grew significantly in financial terms again, but at a less explosive pace than recent years as we sought to consolidate on that top line growth. Gross profit increased by 18.65% year on year, as recent focus on winning Managed Services accounts began to pay off.
The group reassessed it’s portfolio of branch network and vertical markets, with all enterprises being reviewed for viability and changes made accordingly. In many ways, this year has been one of consolidation for the company, as the operations began to mature into a more stable platform for future profitable growth.
It also benefitted from continued infrastructure and human capital investments by its central support services function, allowing the company to continue to achieve better overall results with more streamlined resources than otherwise would have been achieved.
Principal risks and uncertainties
The company is exposed to price risk through fluctuations in the prices of its inputs (e.g. labour) and outputs (e.g. services). These fluctuations could impact the companies profitability and financial position. The company manages price risk through various strategies, including diversified sourcing, and flexible pricing arrangements.
The company is exposed to liquidity risk and manages this risk through various strategies, including daily treasury management, maintaining adequate cash reserves, diversifying its funding sources and negotiating favourable payment terms with both creditors and debtors.
The company is exposed to cash flow risk and manages this through regular cashflow forecasting, budgeting and forecasting and robust credit control procedures.
Key performance indicators
The company's key financial and other performance indicators during the year were as follows:
Liquidity
We draw your attention to note 1.2 in the financial statements which indicates that the company is reliant on achieving significant increases in sales and profitability for the company and the related party over the forecast period to remain within the existing debt facilities.
A material uncertainty exists as a failure to achieve there forecasted increases in sales and profitability would mean the company would require further funding which has not yet been secured.
MAJOR RECRUITMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Promoting the success of the company
This S172 statement explains how Major Recruitment’s Directors:
have engaged with employees, suppliers, customers and others; and
have considered employee interests, the need to foster business relationships with suppliers, customers and others, and the effects of those considerations, including on the principal decisions taken during the financial year.
It focuses on matters of strategic importance to Major Recruitment and the level of information disclosed is consistent with the size and the complexity of Major Recruitment’s business.
After due and careful consideration of the requirements set out in S172 and having regard to long-term consequences and the interests of stakeholders in relation to Board decision-making, the Directors, during the financial year ending 31 March 2024, have acted in a way that they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole.
General confirmation of directors’ duties
Major Recruitment’s Board has a clear framework for determining the matters within its remit and certain financial and strategic thresholds have been set, in order to identify matters requiring Board consideration and approval. Board decision-making is predicated on the appropriateness of information provided to Directors which is subject to review as part of the wider board evaluation process. When making decisions, each Director ensures that (s)he acts in the way he or she considers, in good faith, would most likely promote Shell’s success for the benefit of its members as a whole, and in doing so has regard (among other matters) to the issues set out below.
S172(1) (a) “The likely consequences of any decision in the long term”
The Directors understand the business and both the evolving and challenging environment in which we operate, we continue to have a strong, resilient business including focus on geographical and sector diversity, by putting stakeholders at the centre of our strategy, innovating the products and solutions customers need on our growth journey.
The Directors recognise there are significant complexities in relation to Board decision-making, given differing societal and stakeholder views about our operations and the intricacies associated with the evolving energy transition. Accordingly, the Directors have considered S172 and made their decisions in good faith relating to Major Recruitment’s strategy having regard to the long-term sustainable success of the company.
S172(1) (b) “The interests of the Company’s employees”
The Directors recognise that Major’s employees are core to our business model and the safe delivery of our strategic ambitions. The success of our business depends on attracting, retaining, developing and motivating talented employees. The Directors consider and assess the implications of relevant decisions on employees and the wider workforce. The Directors seek to ensure that Major remains a responsible employer, including with respect to pay and benefits, fairness (including gender pay gap reporting), diversity, health and safety issues, and the workplace environment.
S172(1) (c) “The need to foster the Company’s business relationships with suppliers, customers and others”
Delivering our strategy requires strong mutually beneficial relationships with the workforce, suppliers, customers and partners. Major seeks to promote and apply certain general principles in such relationships. The businesses continually assess the priorities related to customers and those with whom we do business, with the Board engaging with the businesses on these topics, for example, within the context of business strategy updates and investment proposals.
The Directors also receive updates on a variety of topics that indicate how these stakeholders have been engaged with respect to items such as project updates and supplier contract management. Businesses also provide information, as relevant, on customers and joint-venture partners in relation to business strategies, projects, and investment proposals.
MAJOR RECRUITMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
S172(1) (d) “The impact of the Company’s operations on the community and the environment”
The Board receives information on various topics to help it make decisions. The topics can include, for example, the Net Carbon Footprint target, proposals to invest or divest, and business strategy reviews. The information also goes into Group-level overviews, such as updates on safety and environment performance. This enabled the Board to maintain and strengthen the interface with businesses and staff, with virtual engagements additionally used when appropriate, making the best use of technology available. Each year, Major select a charity that operates at the heart of the community and runs many company and individual fund raising events in support if that charity. In 2023-24 that charity was Zoe's Place Baby Hospice, a United Kingdom based registered charity founded by Professor Jack Scarisbrick in 1995. It provides palliative and respite care for very or terminally ill babies and children up to five years old. There are currently three hostels, one each in Liverpool, Middlesbrough, and Coventry. For 2024-25 the chosen charity is Maggie’s – a network of centres working alongside hospitals providing practical and emotional support to cancer patients around the country.
S172(1) (e) “The desirability of the Company maintaining a reputation for high standards of business conduct”
Major aims to meet the need for sourcing talent in economically, environmentally, and socially responsible ways. The Board periodically reviews and approves clear frameworks, such as its Modern Slavery Statement, to ensure that high standards are maintained in both the business and in Major’s business relationships.
S172(1) (f) “The need to act fairly as between members of the Company”
After weighing up all relevant factors, the Directors consider which course of action best enables delivery of our strategy in the long-term interests of the Company, taking into consideration the effect on stakeholders. In doing so, our Directors act fairly as between the Company’s members but are not required to balance the Company’s interests with those of other stakeholders. This can sometimes mean that certain stakeholder interests may not be fully aligned, but the Board believe that the best overall outcome can be achieved by selecting a particular course of action.
Philip Bottomley
Director
27 March 2025
MAJOR RECRUITMENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
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 a recruitment agency.
Results and dividends
The results for the year are set out on page 11.
Ordinary dividends were paid amounting to £28,700. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Philip Bottomley
Katie Nebard
Joanne Lofts
Kelly Tulloch
Nicholas Worton
(Resigned 11 May 2023)
Ross Bagley
David Burdaky
(Resigned 13 September 2024)
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Future developments
The directors are confident of continued performance.
Auditor
In accordance with the company's articles, a resolution proposing that BHP LLP be reappointed as auditor of the company will be put at a General Meeting.
MAJOR RECRUITMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
Energy and carbon report
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
143,350
150,160
- Electricity purchased
113,323
178,415
256,673
328,575
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
25.80
27.03
- Fuel consumed for owned transport
-
-
25.80
27.03
Scope 2 - indirect emissions
- Electricity purchased
20.40
32.12
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
109.70
99.80
Total gross emissions
155.90
158.95
Intensity ratio
Tonnes CO2e per employee
0.5
0.4
Quantification and reporting methodology
The company has followed the 2019 HM Government Environmental Reporting Guidelines and GHG Reporting protocol – Corporate Standard.
We have also used the 2022 UK Government’s Conversion Factors for Corporate Reporting. We have used an operational approach to define our scope and boundaries.
The primary source for measuring energy consumption have been invoices received, expense claims submitted and energy supplier interval data. Where invoices are not co-terminus with our financial year end we have pro-rated the cost accordingly.
Electricity, gas and transport usage data has been taken from taken from the 12 month period covering this report.
Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.
Measures taken to improve energy efficiency
Throughout the year a number of steps have been taken to reduce emissions.
Sourcing increasing of electric cars in company car fleet.
Installing more energy efficient heat pumps to heat office where possible and affordable.
Subscribing to green electric tariffs where possible.
MAJOR RECRUITMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
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.
Going concern
In order to assess the going concern position of the Company the directors have produced forecasts and cashflows covering the period to the end of March 2026. These forecasts show the company operating profitably at an EBITDA level and trading within existing facilities during the period.
The Company currently has a CID facility, bank overdraft, along with finance leases secured on the assets to which they relate. The Company has given guarantees to support a related party under common ownership for a period to at least the end of March 2026.The Company has a loan due from the related party of £5.5m which is due for repayment by 2030.
The key assumption underpinning the forecasts are: -
Increases in sales to new and existing customers. Management are confident that these sales will occur but acknowledge that the current economic environment and macro-economic factors affecting the recruitment sector could have an impact on sales. The company has recently won several large customers worth several millions in additional sales meaning the company is currently ahead of budget for the forecast period.
Increase in sales and profitability of the related party that the Company has guaranteed to support. The related party has gone through a significant turnaround during the period and the Directors are confident that it will be profitable going forwards. The related party is currently ahead of budget in relation to profitability for forecast period.
The directors are confident that these forecast results can be achieved given the positive start to the forecast period.
However, in making these assumptions, the directors acknowledge that in the current uncertain economic climate, together with the sensitivity of these assumptions on the forecast headroom, they acknowledge that if forecasts are not met by the Company and/or the related party then the Company will require further funding. The Directors are confident of securing further funding from other lenders if required but this is not yet committed at this date.
Therefore, in the directors' opinion this represents a material uncertainty which may cast doubt on the Company’s ability to continue as a going concern.
On behalf of the board
Philip Bottomley
Director
27 March 2025
MAJOR RECRUITMENT LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
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.
The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
MAJOR RECRUITMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MAJOR RECRUITMENT LIMITED
- 8 -
Opinion
We have audited the financial statements of Major Recruitment Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, 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.
Material uncertainty relating to going concern
We draw your attention to note 1.2 in the financial statements which indicates that the company is reliant on achieving significant increases in sales and profitability for the company and the related party over the forecast period to remain within the existing debt facilities.
A material uncertainty exists as a failure to achieve their forecasted increases in sales and profitability would mean the company would require further funding, which has not yet been secured.
As stated in note 1.2, these events or conditions, along with other matters as set out in the note, indicate a material uncertainty exists that may cast doubt on the company's ability to continue as a going concern. Our opinion is not modified in the matter.
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.
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.
MAJOR RECRUITMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MAJOR RECRUITMENT LIMITED (CONTINUED)
- 9 -
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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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.
We focused on laws and regulations, relevant to the company, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, review of client’s operation of controls within the year, in particular manual journals, review of provisions, in particular bad debt provision, and a review of legal expenses. There are inherent limitations in the audit procedures described and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
MAJOR RECRUITMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MAJOR RECRUITMENT LIMITED (CONTINUED)
- 10 -
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Jamie Williams
Senior Statutory Auditor
For and on behalf of BHP LLP
27 March 2025
Chartered Accountants
Statutory Auditor
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
MAJOR RECRUITMENT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
69,944,818
58,311,723
Cost of sales
(55,966,479)
(46,941,038)
Gross profit
13,978,339
11,370,685
Administrative expenses
(14,986,673)
(12,796,640)
Other operating income
1,315,333
1,763,440
Operating profit
4
306,999
337,485
Interest receivable and similar income
8
310,074
185,131
Interest payable and similar expenses
9
(325,445)
(253,803)
Profit before taxation
291,628
268,813
Tax on profit
10
(145,516)
(97,791)
Profit for the financial year
146,112
171,022
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MAJOR RECRUITMENT LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
957,850
973,927
Current assets
Debtors
14
24,222,452
23,226,623
Cash at bank and in hand
198,305
151,405
24,420,757
23,378,028
Creditors: amounts falling due within one year
15
(24,311,838)
(23,087,831)
Net current assets
108,919
290,197
Total assets less current liabilities
1,066,769
1,264,124
Creditors: amounts falling due after more than one year
16
(434,315)
(725,642)
Provisions for liabilities
Deferred tax liability
19
23,440
-
(23,440)
Net assets
632,454
515,042
Capital and reserves
Called up share capital
21
76,874
76,874
Profit and loss reserves
555,580
438,168
Total equity
632,454
515,042
The financial statements were approved by the board of directors and authorised for issue on 27 March 2025 and are signed on its behalf by:
Philip Bottomley
Director
Company registration number 06570143 (England and Wales)
MAJOR RECRUITMENT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
76,874
425,146
502,020
Year ended 31 March 2023:
Profit and total comprehensive income
-
171,022
171,022
Dividends
11
-
(158,000)
(158,000)
Balance at 31 March 2023
76,874
438,168
515,042
Year ended 31 March 2024:
Profit and total comprehensive income
-
146,112
146,112
Dividends
11
-
(28,700)
(28,700)
Balance at 31 March 2024
76,874
555,580
632,454
MAJOR RECRUITMENT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
27
1,769,087
(633,956)
Interest paid
(325,445)
(253,803)
Income taxes paid
(25,640)
(128,518)
Net cash inflow/(outflow) from operating activities
1,418,002
(1,016,277)
Investing activities
Purchase of tangible fixed assets
(115,256)
(101,452)
Proceeds from disposal of tangible fixed assets
46,732
119,458
Loan advances
(261,161)
(19,751)
Interest received
310,074
185,131
Net cash (used in)/generated from investing activities
(19,611)
183,386
Financing activities
Repayment of borrowings
(1,154,771)
424,349
Payment of finance leases obligations
(168,020)
(176,628)
Dividends paid
(28,700)
(158,000)
Net cash (used in)/generated from financing activities
(1,351,491)
89,721
Net increase/(decrease) in cash and cash equivalents
46,900
(743,170)
Cash and cash equivalents at beginning of year
151,405
894,575
Cash and cash equivalents at end of year
198,305
151,405
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
1
Accounting policies
Company information
Major Recruitment Limited is a private company limited by shares incorporated in England and Wales. The registered office is 16a Market Avenue, Huddersfield, West Yorkshire, United Kingdom, HD1 2BB.
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
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. However, the directors are aware of certain material uncertainties which may cause doubt on the company's ability to continue as a going concern.
In order to assess the going concern position of the Company the directors have produced forecasts and cashflows covering the period to the end of March 2026. These forecasts show the company operating profitably at an EBITDA level and trading within existing facilities during the period.
The Company currently has a CID facility, bank overdraft, along with finance leases secured on the assets to which they relate. The Company has given guarantees to support a related party under common ownership for a period to at least the end of March 2026.The Company has a loan due from the related party of £5.5m which is due for repayment by 2030.
The key assumption underpinning the forecasts are: -
Increases in sales to new and existing customers. Management are confident that these sales will occur but acknowledge that the current economic environment and macro-economic factors affecting the recruitment sector could have an impact on sales. The company has recently won several large customers worth several millions in additional sales meaning the company is currently ahead of budget for the forecast period.
Increase in sales and profitability of the related party that the Company has guaranteed to support. The related party has gone through a significant turnaround during the period and the Directors are confident that it will be profitable going forwards. The related party is currently ahead of budget in relation to profitability for forecast period.
The directors are confident that these forecast results can be achieved given the positive start to the forecast period.
However, in making these assumptions, the directors acknowledge that in the current uncertain economic climate, together with the sensitivity of these assumptions on the forecast headroom, they acknowledge that if forecasts are not met by the Company and/or the related party then the Company will require further funding. The Directors are confident of securing further funding from other lenders if required but this is not yet committed at this date.
Therefore, in the directors' opinion this represents a material uncertainty which may cast doubt on the Company’s ability to continue as a going concern.
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life of 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
20-30% straight line basis
Computer equipment
3 years straight line
Motor vehicles
25% reducing balance basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
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.
1.8
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
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, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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 leases asset are consumed.
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Sales cut off
An element of judgement is involved in the recognition of sales and related purchases around the year end, due to the nature of the work. A review is performed by the directors to determine the period in which sales and purchases relate to, to allocate sales and candidate costs to the correct year end.
Recoverability of related party debt
The company is owed £5.5 million from a related party under common ownership, which is repayable by 2030. The company has reviewed forecasts and cash flows of the related party in order to assess the recoverability of the debt.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sales - Temporary staff
67,984,558
56,795,056
Sales - Permanent staff
1,960,260
1,516,667
69,944,818
58,311,723
2024
2023
£
£
Turnover analysed by geographical market
Sales - UK
69,944,818
57,957,677
Sales - Rest of World
-
354,046
69,944,818
58,311,723
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Turnover and other revenue
(Continued)
- 21 -
2024
2023
£
£
Other revenue
Interest income
310,074
185,131
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
5,612
(4,649)
Depreciation of owned tangible fixed assets
154,883
160,126
Depreciation of tangible fixed assets held under finance leases
166,499
118,397
Loss/(profit) on disposal of tangible fixed assets
4,424
(25,261)
Operating lease charges
905,254
572,355
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
27,420
25,400
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration and support
274
239
Directors
7
8
Total
281
247
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
59,898,358
51,263,967
Social security costs
4,537,318
3,129,596
Pension costs
477,389
213,810
64,913,065
54,607,373
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Employees
(Continued)
- 22 -
The remuneration above includes wages and salaries of £51,906,953 (2023 - £44,324,905), social security costs of £3,761,077 (2023 - £2,419,059) and staff pension costs of £298,449 (2023 - £197,074) in respect of temporary staff, which are not included in the staff numbers above.
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
314,598
498,466
Company pension contributions to defined contribution schemes
5,735
9,749
320,333
508,215
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
81,250
110,269
Company pension contributions to defined contribution schemes
1,321
1,306
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
310,074
185,131
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
277,752
222,336
Other finance costs:
Interest on finance leases and hire purchase contracts
47,693
31,467
325,445
253,803
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
153,063
105,923
Adjustments in respect of prior periods
62,505
Total current tax
215,568
105,923
Deferred tax
Origination and reversal of timing differences
(70,052)
(8,132)
Total tax charge
145,516
97,791
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
291,628
268,813
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
72,907
51,074
Tax effect of expenses that are not deductible in determining taxable profit
21,603
36,755
Other permanent differences
(11,729)
9,962
Under/(over) provided in prior years
62,505
Fixed asset differences
230
Taxation charge for the year
145,516
97,791
11
Dividends
2024
2023
£
£
Final paid
28,700
158,000
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
12
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
25,000
Amortisation and impairment
At 1 April 2023 and 31 March 2024
25,000
Carrying amount
At 31 March 2024
At 31 March 2023
13
Tangible fixed assets
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
149,531
562,656
1,208,408
1,920,595
Additions
30,043
7,018
319,400
356,461
Disposals
(132,865)
(132,865)
At 31 March 2024
179,574
569,674
1,394,943
2,144,191
Depreciation and impairment
At 1 April 2023
136,391
348,950
461,327
946,668
Depreciation charged in the year
5,725
88,546
227,111
321,382
Eliminated in respect of disposals
(81,709)
(81,709)
At 31 March 2024
142,116
437,496
606,729
1,186,341
Carrying amount
At 31 March 2024
37,458
132,178
788,214
957,850
At 31 March 2023
13,140
213,706
747,081
973,927
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
530,277
557,891
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
14,556,539
14,226,026
Other debtors
2,418,893
6,890,445
Prepayments and accrued income
1,624,554
2,110,152
18,599,986
23,226,623
Deferred tax asset (note 19)
46,612
18,646,598
23,226,623
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
5,575,854
Total debtors
24,222,452
23,226,623
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
18
312,426
147,955
Other borrowings
17
10,986,943
11,941,673
Trade creditors
7,873,761
5,565,546
Corporation tax
317,604
127,676
Other taxation and social security
2,696,273
881,159
Other creditors
1,789,713
3,941,515
Accruals and deferred income
335,118
482,307
24,311,838
23,087,831
Security has been given on the company's assets in relation to obligations under finance leases and other borrowings of £11,733,684 (2023 - £12,089,628).
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
18
255,684
346,970
Other borrowings
17
178,631
378,672
434,315
725,642
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
16
Creditors: amounts falling due after more than one year
(Continued)
- 26 -
Security has been given on the company's assets in relation to obligations under finance leases and other borrowings of £434,315 (2023 - £725,642).
17
Loans and overdrafts
2024
2023
£
£
Other loans
11,165,574
12,320,345
Payable within one year
10,986,943
11,941,673
Payable after one year
178,631
378,672
The loans are secured on the company's assets.
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
182,585
182,585
In two to five years
462,057
424,922
644,642
607,507
Less: future finance charges
(76,532)
(112,582)
568,110
494,925
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. 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 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
19
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
-
23,440
46,612
-
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
19
Deferred taxation
(Continued)
- 27 -
2024
Movements in the year:
£
Liability at 1 April 2023
23,440
Credit to profit or loss
(70,052)
Asset at 31 March 2024
(46,612)
The deferred tax asset is expected to increase by £65,000, relating to the reversal of existing timing differences on tangible fixed assets.
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
477,389
213,810
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.
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
61,500
61,500
61,500
61,500
B Ordinary shares of £1 each
7,687
7,687
7,687
7,687
C Ordinary shares of £1 each
7,687
7,687
7,687
7,687
76,874
76,874
76,874
76,874
The ordinary shares have no prescribed rights re dividends, distribution of capital or redemption. On a show of hands, one member one vote, on a poll, one share one vote.
A, B and C shares carry the right to vote at general meetings of the company. In the event of a sale or on a return of capital the surplus assets of the company shall be applied first to the shareholders in the amount equal to the accruals and/or unpaid amount of dividends, second in paying to the shareholders the amounts paid up on the shares held by each of them, third in paying to the holders of the A ordinary shares the sum of £5,000,000.
There is no right to fixed income; the profits which the company may determine to distribute in any financial year shall be apportioned between the holders of each different class of share in such proportions as the company in general meeting shall determine.
22
Financial commitments, guarantees and contingent liabilities
The company has given cross guarantees in respect of the bank borrowings of its related parties.
At the year end the total potential liability was £146,744 (2023: £145,832).
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
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
476,069
631,183
Between two and five years
587,944
1,342,245
1,064,013
1,973,428
24
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales and management fees receivable
Purchases and rent payable
2024
2023
2024
2023
£
£
£
£
Other related parties
23,856,544
3,395,822
26,696,191
21,056,983
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Other creditors
6,566,911
7,562,182
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Other debtors
6,091,179
5,681,999
Other information
The expense recognised during the period in respect of bad or doubtful debts due from related parties was £Nil (2023 - £165,028).
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
25
Directors' transactions
Dividends totalling £28,700 (2023 - £158,000) were paid in the year in respect of shares held by the company's directors.
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Philip Bottomley -
2.00
250,223
126,422
6,850
(8,700)
374,795
Katie Nebard -
2.00
13,174
74,201
939
(20,000)
68,314
Ross Bagley -
2.00
8,912
71,632
1,014
-
81,558
272,309
272,255
8,803
(28,700)
524,667
26
Ultimate controlling party
The company is controlled by Philip Bottomley who owns 80% of the share capital.
27
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the year after tax
146,112
171,022
Adjustments for:
Taxation charged
145,516
97,791
Finance costs
325,445
253,803
Investment income
(310,074)
(185,131)
Loss/(gain) on disposal of tangible fixed assets
4,424
(25,261)
Depreciation and impairment of tangible fixed assets
321,382
278,523
Movements in working capital:
Increase in debtors
(688,056)
(3,004,225)
Increase in creditors
1,824,338
1,779,522
Cash generated from/(absorbed by) operations
1,769,087
(633,956)
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
28
Analysis of changes in net debt
1 April 2023
Cash flows
New finance leases
31 March 2024
£
£
£
£
Cash at bank and in hand
151,405
46,900
-
198,305
Borrowings excluding overdrafts
(12,320,345)
1,154,771
-
(11,165,574)
Obligations under finance leases
(494,925)
168,020
(241,205)
(568,110)
(12,663,865)
1,369,691
(241,205)
(11,535,379)
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