Company registration number 07728404 (England and Wales)
KEY SELECTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
KEY SELECTION LIMITED
COMPANY INFORMATION
Directors
D Bottomley
K Nebard
Company number
07728404
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
KEY SELECTION LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 34
KEY SELECTION 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 group entered a period of consolidation as changes were made to the Equity Partner portfolio and the significant number of recent investments began to bed in and stabilise. Gross profit increased by 6.4% year on year, (with the Gross Profit percentage improving by 0.8 percentage points) and the Group continued to invest in additional undertakings with higher quality Equity Partners in order to aid diversification and, ultimately, returns. The directors believe the scheme will ultimately achieve sustained profitability in the medium term. There have been some closures of Equity Partners and performance has not been as strong as expected in certain areas that we are continuing with. This does affect recent performance, however the changes undertaken within the Equity Partners scheme will ultimately deliver significant returns.

The group continues to benefit from additional investments in infrastructure and human capital by its central support services provider - including dedicated management and marketing resources - allowing the group to achieve better overall results with more streamlined resources than otherwise would have been achieved and laying the foundations for successful and profitable growth in the future.

Price, credit and liquidity risk

The Group is exposed to price risk through fluctuations in the prices of its inputs (e.g. temporary labour supplied to clients) and outputs (temporary labour and permanent invoicing). These fluctuations could impact the Group's profitability and financial position. The Group manages output price risk on temporary worker business by entering into long term contracts wherever possible, which allow the Group to pass on labour cost increases. This gives the Group more certainty of Gross Profit margins in the medium term. For permanent income, underlying rises in the salaries of those placed naturally increases the fees the Group can charge, as long as margins are maintained. The Group manages input price risk through various strategies, including diversified sourcing, flexible pricing arrangements and regular review of levels of usage and demand.

The Group is exposed to liquidity risk in the course of business and manages liquidity risk through various strategies, including daily treasury management, regular cashflow forecasting, maintaining adequate cash reserves, diversifying its funding sources and negotiating favourable payment terms with creditors.

The Group is exposed to credit risk and manages this through robust credit control procedures, including the insurance protection of its debtors.

Key performance indicators

The group’s key performance indicators were as follows:

                Unit        2024             2023

Turnover            £,000        30,422            29,327

Gross Profit Margin         %        31.84             31.05

Pre tax profit/(loss)        £,000        (1,219)             14

 

On behalf of the board

D Bottomley
Director
27 March 2025
KEY SELECTION LIMITED
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 group continued to be that of a recruitment agency.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a 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:

D Bottomley
K Nebard
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 auditor of the company 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 auditor of the company is aware of that information.

KEY SELECTION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Going Concern

In order to assess the going concern position of the Company and Group, the directors have produced forecasts and cashflows covering the period to the end of March 2026. These forecasts show the Group operating profitably at an EBITDA level.

 

The Group currently has a bank overdraft, bank loan and invoice discounting facilities. The Group has received a letter of support from a related party under common ownership for a period to at least the end of March 2026. The Group currently owes the related party £5.5m which is due for repayment by 2030. The letter specifies that the loan will not be recalled and further support will be provided as required for the period to at least the end of March 2026.

 

The key assumptions underpinning the forecasts and the going concern assessment are: -

 

 

 

 

The directors are confident that these forecasts 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 the key assumptions on the forecast headroom, they acknowledge that if forecasts are not met by the Group, then the Group will require further funding from the related party which is not yet committed at this date. It is difficult to quantify the level of support the related party can provide at this date. 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 Group’s ability to continue as a going concern.

 

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
D Bottomley
Director
27 March 2025
KEY SELECTION LIMITED
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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

KEY SELECTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KEY SELECTION LIMITED
- 5 -
Opinion

We have audited the financial statements of Key Selection Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty relating to going concern

We draw your attention to note 1.4 in the financial statements, which indicates that the Group is reliant on achieving significant increases in sales and profitability over the forecast period and support from a related party 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 Group would require further funding which has not yet been secured.

As stated in note 1.4 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 Group'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.

Other information

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.

KEY SELECTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KEY SELECTION LIMITED
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

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.

KEY SELECTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KEY SELECTION LIMITED
- 7 -

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

Comparative information in the financial statements is derived from the company's prior period financial statements which were not audited.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an 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, Statutory Auditor
Chartered Accountants
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
27 March 2025
KEY SELECTION LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
30,422,490
29,326,665
Cost of sales
(20,737,123)
(20,221,414)
Gross profit
9,685,367
9,105,251
Administrative expenses
(10,010,456)
(8,940,478)
Other operating income
-
1,500
Operating (loss)/profit
4
(325,089)
166,273
Share of results of joint ventures
(190,430)
148,686
Interest receivable and similar income
8
54,265
38,619
Interest payable and similar expenses
9
(274,386)
(182,828)
Amounts written off investments
10
(439,886)
(156,658)
(Loss)/profit before taxation
(1,175,526)
14,092
Tax on (loss)/profit
11
(230,526)
55,405
(Loss)/profit for the financial year
(1,406,052)
69,497
(Loss)/profit for the financial year is attributable to:
- Owners of the parent company
(1,246,793)
13,316
- Non-controlling interests
(159,259)
56,181
(1,406,052)
69,497
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(1,246,793)
13,316
- Non-controlling interests
(159,259)
56,181
(1,406,052)
69,497
KEY SELECTION LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
9,868
16,447
Tangible assets
13
1,278
1,869
Investments
14
476,815
531,665
487,961
549,981
Current assets
Debtors
17
5,336,081
3,125,651
Cash at bank and in hand
105,579
71,157
5,441,660
3,196,808
Creditors: amounts falling due within one year
18
(9,376,475)
(5,233,389)
Net current liabilities
(3,934,815)
(2,036,581)
Total assets less current liabilities
(3,446,854)
(1,486,600)
Creditors: amounts falling due after more than one year
19
(51,551)
(95,835)
Net liabilities
(3,498,405)
(1,582,435)
Capital and reserves
Called up share capital
22
1
1
Profit and loss reserves
(1,929,125)
(640,332)
Equity attributable to owners of the parent company
(1,929,124)
(640,331)
Non-controlling interests
(1,569,281)
(942,104)
Total equity
(3,498,405)
(1,582,435)

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

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:
27 March 2025
D Bottomley
Director
Company registration number 07728404 (England and Wales)
KEY SELECTION LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
14
85,120
94,998
Current assets
Debtors
17
2,605,117
20,000
Cash at bank and in hand
754
4,115
2,605,871
24,115
Creditors: amounts falling due within one year
18
(7,753,015)
(119,998)
Net current liabilities
(5,147,144)
(95,883)
Net liabilities
(5,062,024)
(885)
Capital and reserves
Called up share capital
22
1
1
Profit and loss reserves
(5,062,025)
(886)
Total equity
(5,062,024)
(885)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £5,061,139 (2023 - £0 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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:
27 March 2025
D Bottomley
Director
Company registration number 07728404 (England and Wales)
KEY SELECTION LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 April 2022
1
(511,348)
(511,347)
(591,036)
(1,102,383)
Year ended 31 March 2023:
Profit and total comprehensive income
-
13,316
13,316
56,181
69,497
Dividends
-
(142,300)
(142,300)
(330,900)
(473,200)
Disposal of subsidiary
-
-
-
(76,349)
(76,349)
Balance at 31 March 2023
1
(640,332)
(640,331)
(942,104)
(1,582,435)
Year ended 31 March 2024:
Loss and total comprehensive income
-
(1,246,793)
(1,246,793)
(159,259)
(1,406,052)
Dividends
-
(42,000)
(42,000)
(883,983)
(925,983)
Acquisition of subsidiary
-
-
-
217,529
217,529
Disposal of subsidiary
-
-
-
45,839
45,839
Other movements
-
-
-
152,697
152,697
Balance at 31 March 2024
1
(1,929,125)
(1,929,124)
(1,569,281)
(3,498,405)
KEY SELECTION LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
1
(886)
(885)
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
-
0
Balance at 31 March 2023
1
(886)
(885)
Year ended 31 March 2024:
Profit and total comprehensive income
-
(5,061,139)
(5,061,139)
Balance at 31 March 2024
1
(5,062,025)
(5,062,024)
KEY SELECTION LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
586,012
1,129,498
Interest paid
(274,386)
(182,828)
Income taxes paid
(76,995)
(14,284)
Net cash inflow from operating activities
234,631
932,386
Investing activities
Purchase of tangible fixed assets
-
(2,363)
Proceeds from disposal of tangible fixed assets
-
46,231
Loans made to other entities
-
(1,871,985)
Advancement of loans
725,087
1,125,964
Interest received
54,265
38,619
Net cash generated from/(used in) investing activities
779,352
(663,534)
Financing activities
Proceeds from borrowings
-
243,715
Repayment of borrowings
(7,934)
(152,229)
Repayment of bank loans
(44,284)
(98,270)
Payment of finance leases obligations
-
(49,668)
Dividends paid to equity shareholders
(42,000)
(142,300)
Dividends paid to non-controlling interests
(883,983)
(330,900)
Net cash used in financing activities
(978,201)
(529,652)
Net increase/(decrease) in cash and cash equivalents
35,782
(260,800)
Cash and cash equivalents at beginning of year
63,481
324,281
Cash and cash equivalents at end of year
99,263
63,481
Relating to:
Cash at bank and in hand
105,579
71,157
Bank overdrafts included in creditors payable within one year
(6,316)
(7,676)
KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Company information

Key Selection Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Key Selection Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Key Selection Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.4
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 and Group, the directors have produced forecasts and cashflows covering the period to the end of March 2026. These forecasts show the Group operating profitably at an EBITDA level.

 

The Group currently has a bank overdraft, bank loan and invoice discounting facilities. The Group has received a letter of support from a related party under common ownership for a period to at least the end of March 2026. The Group currently owes the related party £5.5m which is due for repayment by 2030. The letter specifies that the loan will not be recalled and further support will be provided as required for the period to at least the end of March 2026.

 

The key assumptions underpinning the forecasts and the going concern assessment are: -

 

 

 

 

The directors are confident that these forecasts 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 the key assumptions on the forecast headroom, they acknowledge that if forecasts are not met by the Group, then the Group will require further funding from the related party which is not yet committed at this date. It is difficult to quantify the level of support the related party can provide at this date. 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 Group’s ability to continue as a going concern.

 

 

1.5
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.

KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business 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.

 

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.

1.7
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:

Computers
25% straight line 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 recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
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.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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.

KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
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.

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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group 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.

KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
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 group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
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 group’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 if, and only if, there is 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.

KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -
1.14
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.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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.

Recoverability of debtors

Other debtors includes loans due from directors of subsidiary companies of £1,224,392 (2023 - £1,951,374) and amounts due from connected companies £665,523 (2023 - £905,533) These are provided for to the extent they are expected to be recovered or repaid via payroll. The recoverability of such balances and potential provisions required are dependent on the future profitability of the relevant entity.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales - Perms
2,450,974
1,757,667
Sales - Temps
27,971,516
27,568,998
30,422,490
29,326,665
2024
2023
£
£
Turnover analysed by geographical market
Sales - UK
29,286,613
29,106,665
Sales - Rest of the world
1,135,877
220,000
30,422,490
29,326,665
2024
2023
£
£
Other revenue
Interest income
54,265
38,619
Grants received
-
1,500
KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
4
Operating (loss)/profit
2024
2023
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange losses
39,004
405
Government grants
-
(1,500)
Depreciation of owned tangible fixed assets
591
11,070
Profit on disposal of tangible fixed assets
-
(6,347)
Amortisation of intangible assets
6,579
6,579
Operating lease charges
29,288
48,091
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 group and company
24,495
29,750
For other services
All other non-audit services
171,165
120,100
6
Directors remuneration

There is no directors' remuneration to disclose during the year (2023 - £nil).

7
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Sales and administration
152
143
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
25,379,676
23,972,845
-
0
-
0
Social security costs
80,882
1,623,284
-
-
Pension costs
47,226
32,653
-
0
-
0
25,507,784
25,628,782
-
0
-
0
KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
54,265
38,619
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
54,678
42,205
Interest on invoice finance arrangements
-
0
7,108
Interest payable to group undertakings
101
-
0
Other interest on financial liabilities
175,543
93,401
Interest on finance leases and hire purchase contracts
(11,900)
3,445
Other interest
55,964
36,669
Total finance costs
274,386
182,828
10
Amounts written off investments
2024
2023
£
£
Loss on disposal of subsidiaries
(220,462)
(156,658)
Amounts written off current loans
(1,895)
-
Other gains and losses
(217,529)
-
(439,886)
(156,658)
KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
232,045
82,232
Adjustments in respect of prior periods
(1,519)
(132,053)
Total current tax
230,526
(49,821)
Deferred tax
Adjustment in respect of prior periods
-
0
(5,584)
Total tax charge/(credit)
230,526
(55,405)

The actual charge/(credit) for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
(Loss)/profit before taxation
(1,175,526)
14,092
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(293,882)
2,677
Tax effect of expenses that are not deductible in determining taxable profit
1,631
4,396
Tax effect of income not taxable in determining taxable profit
206,105
(40,583)
Adjustments in respect of prior years
(1,519)
(137,637)
Group relief - subsidiaries to associates
-
0
(24,585)
Deferred tax adjustments in respect of prior years
112,320
-
0
Tax at marginal rate
(2,548)
-
0
Fixed asset differences
637
(8,966)
Deferred tax differences
217,284
149,293
Income not taxable for tax purposes
(9,502)
-
0
Taxation charge/(credit)
230,526
(55,405)
KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
32,895
Amortisation and impairment
At 1 April 2023
16,448
Amortisation charged for the year
6,579
At 31 March 2024
23,027
Carrying amount
At 31 March 2024
9,868
At 31 March 2023
16,447
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.

More information on impairment movements in the year is given in note .

13
Tangible fixed assets
Group
Computers
£
Cost
At 1 April 2023 and 31 March 2024
2,363
Depreciation and impairment
At 1 April 2023
494
Depreciation charged in the year
591
At 31 March 2024
1,085
Carrying amount
At 31 March 2024
1,278
At 31 March 2023
1,869
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.
KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
85,120
94,998
Investments in associates
16
476,815
531,665
-
0
-
0
476,815
531,665
85,120
94,998
Movements in fixed asset investments
Group
Shares in associates
£
Cost or valuation
At 1 April 2023
531,665
Additions
50
Profit share of associate
(54,900)
At 31 March 2024
476,815
Carrying amount
At 31 March 2024
476,815
At 31 March 2023
531,665
KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
14
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023
94,998
Additions
12,860
Disposals
(22,738)
At 31 March 2024
85,120
Carrying amount
At 31 March 2024
85,120
At 31 March 2023
94,998

Additions are in relation to the incorporation of the following entities during the year, purchased at par:

 

Mara Recruit Limited

Mosi Brown Limited

N & T Life Sciences Limited

Pertium Executive Search Limited

Right Find Recruitment Limited

Specialised Workforce Solutions Limited

 

The following shares were transferred back into the group during the year for nil consideration:

 

75 shares of £1 each in EA Recruitment Solutions Limited

100 shares of £1 each in Major Distribution Support

40 shares of £1 each in Omega Management Group Limited

15 shares of £1 each in Radical Resources Limited

25 Share of £1 each in Real Recruits Consulting Limited

25 shares of £1 each in Vanguard Recruitment Solutions Limited

 

During the 25 shares at £1 each have reassigned to a value of £12,000 for Hamilton Woods Associates Limited.

 

Disposals relate to the transfer of shares for £nil proceeds in the following companies:

 

Aquilo Recruitment Limited

Blakeney Point Search & Selection Limited

Howard IT Recruitment Limited

HQ Health Solutions Limited

Round Table Recruitment Limited

 

KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
15
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as noted below.

 

The group's subsidiaries listed below with their registration number referenced are exempt from the requirements of the Act relating to the audit of individual accounts (section s479A of Companies Act 2006). The remaining subsidiaries were dormant as at 31 March 2024.

Name of undertaking
Registration No.
Class of shares held
% Held direct
Blakeney Point Search & Selection Limited
05703389
Ordinary
75.00
AM Talent Management Ltd
11444627
Ordinary
75.00
Major Recruitment (Construction) Limited
11523309
Ordinary
100.00
Trinity Business Support Limited
11394726
Ordinary
75.00
Edwards Employment Solutions Limited
11343265
Ordinary
75.00
Hamilton Woods Associates Limited
11095808
Ordinary
100.00
Integritas Education Recruitment Ltd
11741565
Ordinary
75.00
Major Recruitment Managed Services Limited
11096726
Ordinary
75.00
Lake Recruitment Limited
11734090
Ordinary
75.00
Teamployer Limited
11741548
Ordinary
100.00
Universal Staffing Solutions Limited
11298209
Ordinary
75.00
Recruit Central Ltd
11412496
Ordinary
65.00
Procure Recruitment Group Limited
11523235
Ordinary
75.00
MiGrowth Limited
12232019
Ordinary
75.00
Stately Strategic Recruitment Group Limited
11364294
Ordinary
75.00
Viking Exectuive Limited
12623913
Ordinary
75.00
Zenith Adivsory Partners Limited
12647268
Ordinary
90.00
Real Recruits Consulting Limited
12676230
Ordinary
60.00
Key Selection Recruitment Limited
12710367
Ordinary
100.00
Peopletech Recruitment Services Limited
12768959
Ordinary
75.00
JP Recruitment Solutions Limited
12779983
Ordinary
75.00
Pardoe Wray Resourcing Limited
12800694
Ordinary
70.00
K & D Recruitment Limited
12815206
Ordinary
60.00
Fika Recruitment Limited
12829864
Ordinary
75.00
Perigon Associates Limited
12835209
Ordinary
100.00
Ortega Consulting Limited
12943401
Ordinary
75.00
Recon Advisory Partners Limited
13021361
Ordinary
75.00
Principal IT Ltd
13051314
Ordinary
75.00
Round Table Recruitment Limited
12628236
Ordinary
75.00
Kirkham Search & Selection Limited
12707677
Ordinary
100.00
LJ Taylor Legal Recruitment Limited
13243112
Ordinary
75.00
PHB Recruitment Limited
13262708
Ordinary
75.00
Sapient Elite Sports Limited
13390612
Ordinary
75.00
Fizspark Limited
13429115
Ordinary
75.00
Magenta People Limited
13463923
Ordinary
100.00
Omega Management Group Limited
13463977
Ordinary
80.00
ID Recruitment Limited
13799330
Ordinary
75.00
DNA Recruitment Solutions Limited
13847408
Ordinary
60.00
Cloudtech Associates Limited
13923178
Ordinary
75.00
EconExec Limited
13913318
Ordinary
75.00
Gentium Tech International Limited
13934215
Ordinary
72.00
Vanguard Recruitment Solutions Limited
13978798
Ordinary
100.00
Frederick James Recruitment Limited
13989086
Ordinary
75.00
KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
15
Subsidiaries
Name of undertaking
Registration No.
Class of shares held
% Held direct
(Continued)
- 30 -
Hill Associates Limited
14061758
Ordinary
75.00
EA Recruitment Solutions Limited
14113184
Ordinary
75.00
School Staffing Solutions Limited
14164873
Ordinary
75.00
Recruitment HQ Limited
14229703
Ordinary
75.00
Active Personnel Recruitment Limited
14233250
Ordinary
75.00
Major Distribution Support Limited
14277792
Ordinary
100.00
Taylor Made Employment Limited
14277106
Ordinary
75.00
Radical Resource Limited
14383124
Ordinary
75.00
D & S Recruitment Consultancy Limited
13770308
Ordinary
60.00
Isaac James Associates Limited
13219835
Ordinary
75.00
TJ Search & Selection Limited
13039373
Ordinary
75.00
N & T Life Science Limited
15047096
Ordinary
100.00
Biotech Talent Solutions Limited
15121558
Ordinary
75.00
Social Staffing Solutions Limited
15119235
Ordinary
75.00
Specialised Workforce Solutions Limited
14427687
Ordinary
90.00
Hire It! Digital Limited
14551034
Ordinary
75.00
Mosi Brown Limited
14738026
Ordinary
75.00
-

The registered office of all group entities is 16a Market Avenue, Huddersfield, HD1 2BB.

16
Associates

Details of associates at 31 March 2024 are as follows:

Name of undertaking
Class of
% Held
shares held
Direct
Aquilo Recruitment Limited
Ordinary
50
Howard IT Recruitment Limited
Ordinary
50
Joynes & Hunt Limited
Ordinary
50
James Grace Associates
Ordinary
50
Oats Recruitment Limited
Ordinary
50
One Point Recruitment Limited
Ordinary
50
Sure Start Staff Limited
Ordinary
50
Steve Ball Recruitment Limited
Ordinary
50

The registered office of all group entities is 16a Market Avenue, Huddersfield, HD1 2BB.

KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
596,768
576,354
-
0
-
0
Amounts owed by group undertakings
-
-
-
20,000
Other debtors
4,218,706
2,373,807
2,605,117
-
0
Prepayments and accrued income
520,607
175,490
-
0
-
0
5,336,081
3,125,651
2,605,117
20,000

Amounts owed by group undertakings are interest free and payable on demand.

18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
101,331
102,691
-
0
-
0
Other borrowings
20
243,362
251,296
-
0
-
0
Trade creditors
189,699
305,260
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
1,331,124
94,998
Corporation tax payable
293,481
139,950
-
0
-
0
Other taxation and social security
231,034
323,501
-
-
Other creditors
6,908,867
3,080,786
6,421,891
25,000
Accruals and deferred income
1,408,701
1,029,905
-
0
-
0
9,376,475
5,233,389
7,753,015
119,998

Amounts owed to group undertakings are interest free and payable on demand.

19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
51,551
95,835
-
0
-
0
KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
146,566
190,850
-
0
-
0
Bank overdrafts
6,316
7,676
-
0
-
0
Other loans
243,362
251,296
-
0
-
0
396,244
449,822
-
-
Payable within one year
344,693
353,987
-
0
-
0
Payable after one year
51,551
95,835
-
0
-
0

Bank loans are repayable over a period of 5 years and incur interest at a rate of 2.5% per annum. There is no security in place.

 

Other loans relate to invoice discounting facilities, which are secured by a fixed and floating charge over all the undertakings, property, assets and right both future and present including any uncalled capital of the group.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
47,226
32,653

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of 1p each
100
100
1
1
KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 33 -
23
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties, under common ownership:

Sales & recharges
Purchases & recharges
2024
2023
2024
2023
£
£
£
£
Group
Other related parties
26,696,191
21,056,983
23,836,497
18,578,852

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Other related parties
5,128,690
3,945,672

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
£
£
Group
Other related parties
1,727,783
866,092
KEY SELECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 34 -
24
Cash generated from group operations
2024
2023
£
£
(Loss)/profit after taxation
(1,406,052)
69,497
Adjustments for:
Share of results of associates and joint ventures
190,430
(148,686)
Taxation charged/(credited)
230,526
(55,405)
Finance costs
274,386
182,828
Investment income
(54,265)
(38,619)
Gain on disposal of tangible fixed assets
-
(6,347)
Amortisation and impairment of intangible assets
6,579
6,579
Depreciation and impairment of tangible fixed assets
591
11,070
Other gains and losses
439,886
156,658
Other NCI Movement
(165,612)
(233,007)
Movements in working capital:
(Increase)/decrease in debtors
(2,937,412)
370,266
Increase in creditors
4,006,955
814,664
Cash generated from operations
586,012
1,129,498
25
Analysis of changes in net debt - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
71,157
34,422
105,579
Bank overdrafts
(7,676)
1,360
(6,316)
63,481
35,782
99,263
Borrowings excluding overdrafts
(442,146)
52,218
(389,928)
(378,665)
88,000
(290,665)
26
Controlling party

The ultimate controlling party is Deborah Bottomley who owns 90% of the company's share capital.

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