|
Basis of 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
|
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Our evaluation of the directors' assessment of the company's ability to continue to adopt the going concern basis of accounting included the following : |
We considered as part of our audit risk assessment of the nature of the company, its business model and related risks including the requirements of the applicable financial reporting framework and the system of internal control. We evaluated the directors' assessment of the company's ability to continue as a going concern, including challenging the underlying data and key assumptions used to make the assessment, and evaluated the directors' plans for future actions in relation to their going concern assessment. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibities 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 strategic report, the directors report and financial statements, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. |
We have nothing to report in this regard. |
|
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the 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 |
Identifying and Assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatment in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
● |
the nature of the industry and sector, control environment and business performance |
● |
results of our enquiries of management about their identification and assessment of the risks of irregularities |
● |
any matters which we have identified having obtained from management whether they were aware of any instances of non-compliance and whether they have knowledge of any actual, suspected or alleged fraud; and reviewing the internal controls established to mitigate risk of fraud or non-compliance with laws and regulations; and |
● |
the matters discussed among the audit engagmeent team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we have identified the greatest potential for fraud in the areas which management is required to exercise significant judgement. In common with all audits under ISA's (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory framework that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, pension and tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty. These included data protection, employment, environmental and health and safety regulations. |
Audit response to risks identified |
As a result of performing the above, we identified the potential for management override of the controls as a key audit matter related to the potential risk of fraud. Our procedures to respond to the risks identified included the following: |
● |
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
● |
enquiring of management concerning actual and potential litigation and claims; |
● |
performing analytical procedures to identify any unusual or unexpected relationships that many indicate risks of material misstatement due to fraud; |
● |
reading minutes of meetings of those charged with governance; and |
● |
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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. |
|
|
Stephen Kearney |
(Senior Statutory Auditor) |
for and on behalf of |
Fitzpatrick & Kearney Ltd |
10c Marcus Square |
Accountants and Statutory Auditors |
Newry |
19 March 2025 |
Co. Down |
|
|
BT34 1AE |
|
First Choice Selection Services Ltd |
Statement of Cash Flows |
for the year ended 30 September 2024 |
|
Notes |
|
2024 |
|
2023 |
£ |
£ |
Operating activities |
Profit for the financial year |
294,275 |
|
506,127 |
|
Adjustments for: |
Interest receivable |
(6,855) |
|
(6,701) |
Interest payable |
2,694 |
|
- |
Tax on profit on ordinary activities |
90,014 |
|
142,463 |
Depreciation |
18,079 |
|
18,910 |
(Increase)/decrease in debtors |
(426,563) |
|
212,390 |
Increase in creditors |
499,561 |
|
28,251 |
|
|
|
471,205 |
|
901,440 |
|
Interest received |
6,855 |
|
6,701 |
Interest paid |
|
|
(2,694) |
|
- |
Corporation tax paid |
(143,980) |
|
(159,461) |
|
Cash generated by operating activities |
331,386 |
|
748,680 |
|
|
|
|
|
|
Investing activities |
Payments to acquire tangible fixed assets |
(9,653) |
|
(12,581) |
|
Cash used in investing activities |
(9,653) |
|
(12,581) |
|
|
|
|
|
|
Financing activities |
Equity dividends paid |
(450,000) |
|
(500,000) |
|
Cash used in financing activities |
(450,000) |
|
(500,000) |
|
|
|
|
|
|
Net cash (used)/generated |
Cash generated by operating activities |
331,386 |
|
748,680 |
Cash used in investing activities |
(9,653) |
|
(12,581) |
Cash used in financing activities |
(450,000) |
|
(500,000) |
|
Net cash (used)/generated |
(128,267) |
|
236,099 |
|
Cash and cash equivalents at 1 October |
2,015,772 |
|
1,779,673 |
Cash and cash equivalents at 30 September |
1,887,505 |
|
2,015,772 |
|
|
|
|
|
|
Cash and cash equivalents comprise: |
Cash at bank |
1,890,654 |
|
2,017,576 |
Bank overdrafts |
11 |
|
(3,149) |
|
(1,804) |
|
|
|
1,887,505 |
|
2,015,772 |
|
|
|
|
|
|
|
|
|
Debtors |
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
|
|
Creditors |
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
|
Loans and borrowings |
|
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value. |
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
|
|
Provisions |
|
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
|
|
Foreign currency translation |
|
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
|
|
Employee benefits |
|
When employees have rendered service to the company, short term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. |
|
|
The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. |
|
|
2 |
Critical accounting estimates and judgements |
|
|
Going concern: The directors have prepared budgets and cash flows for a period of at least 12 months from the date of the approval of the financial statements which demonstrates that there is no material uncertainty regarding the company's ability to meet its liabilities as they fall due, and to continue as a going concern. On this basis the directors consider it appropriate to prepare the financial statements on a going concern basis. Accordingly these financial statements do not include any adjustments to the carrying amounts and classifications of assets and liabilities that may arise if the company was unable to continue as a going concern. |
|
|
Impairment of Trade Debtors: The company trades with a large and varied number of customers on credit terms. Some debts will not be paid through the default of a small number of customers. The company uses estimates based on historical experience and current information in determining the level of debts for which an impairment charge is required. The level of impairment required is reviewed on an ongoing basis. The total trade debtors is £1,695,228 (2023: £1,251,191) |
|
3 |
Analysis of turnover |
2024 |
|
2023 |
£ |
£ |
|
|
|
Services rendered |
19,897,318 |
|
20,111,145 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
19,897,318 |
|
20,111,145 |
|
|
|
|
|
|
|
|
|
|
4 |
Operating profit |
2024 |
|
2023 |
£ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
18,079 |
|
18,910 |
|
Auditors' remuneration for audit services |
18,500 |
|
15,500 |
|
Contributions to defined contribution pension plans |
646,774 |
|
624,252 |
|
|
|
|
|
|
|
|
|
|
5 |
Directors' emoluments |
2024 |
|
2023 |
£ |
£ |
|
|
Emoluments |
9,488 |
|
9,488 |
|
Company contributions to defined contribution pension plans |
60,000 |
|
60,000 |
|
|
|
|
|
|
69,488 |
|
69,488 |
|
|
|
|
|
|
|
|
|
|
|
Highest paid director: |
|
Emoluments |
9,488 |
|
9,488 |
|
Company contributions to defined contribution pension plans |
60,000 |
|
60,000 |
|
|
|
|
|
|
69,488 |
|
69,488 |
|
|
|
|
|
|
|
|
|
|
|
Number of directors to whom retirement benefits accrued: |
2024 |
|
2023 |
Number |
Number |
|
|
Defined contribution plans |
1 |
|
1 |
|
|
|
|
|
|
|
|
|
|
6 |
Staff costs |
2024 |
|
2023 |
£ |
£ |
|
|
Wages and salaries |
16,821,639 |
|
16,842,797 |
|
Social security costs |
1,298,534 |
|
1,252,019 |
|
Other pension costs |
586,774 |
|
564,252 |
|
|
|
|
|
|
18,706,947 |
|
18,659,068 |
|
|
|
|
|
|
|
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
|
Administration |
8 |
|
9 |
|
Temporary Workers |
814 |
|
833 |
|
Sales |
24 |
|
22 |
|
|
|
|
|
|
846 |
|
864 |
|
|
|
|
|
|
|
|
|
|
|
|
7 |
Interest payable |
2024 |
|
2023 |
£ |
£ |
|
|
Bank loans and overdrafts |
2,694 |
|
- |
|
|
|
|
|
|
|
|
|
|
8 |
Taxation |
2024 |
|
2023 |
£ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
92,068 |
|
143,980 |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
(2,054) |
|
(1,517) |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
90,014 |
|
142,463 |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2024 |
|
2023 |
£ |
£ |
|
Profit on ordinary activities before tax |
384,289 |
|
648,590 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
25% |
19%/25% |
|
£ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
96,072 |
|
142,743 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
- |
|
4,162 |
|
Capital allowances for period in excess of depreciation |
2,054 |
|
(2,925) |
|
Utilisation of tax losses |
(6,058) |
|
- |
|
|
Current tax charge for period |
92,068 |
|
143,980 |
|
|
|
|
|
|
|
|
|
|
|
Factors that may affect future tax charges |
|
There are no factors which the director expects to affect future tax charges. |
|
|
9 |
Tangible fixed assets |
|
|
|
|
Plant and machinery |
|
Fixtures & Fittings |
|
Total |
|
|
|
|
At cost |
|
At cost |
£ |
£ |
£ |
|
Cost |
|
At 1 October 2023 |
209,756 |
|
219,515 |
|
429,271 |
|
Additions |
6,857 |
|
2,796 |
|
9,653 |
|
At 30 September 2024 |
216,613 |
|
222,311 |
|
438,924 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 October 2023 |
192,197 |
|
200,809 |
|
393,006 |
|
Charge for the year |
9,244 |
|
8,835 |
|
18,079 |
|
At 30 September 2024 |
201,441 |
|
209,644 |
|
411,085 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 30 September 2024 |
15,172 |
|
12,667 |
|
27,839 |
|
At 30 September 2023 |
17,559 |
|
18,706 |
|
36,265 |
|
|
|
|
|
|
|
|
|
|
|
10 |
Debtors |
2024 |
|
2023 |
£ |
£ |
|
|
Trade debtors |
1,695,228 |
|
1,251,191 |
|
Other debtors |
12,230 |
|
27,284 |
|
Prepayments and accrued income |
19,360 |
|
21,780 |
|
|
|
|
|
|
1,726,818 |
|
1,300,255 |
|
|
|
|
|
|
|
|
|
|
11 |
Creditors: amounts falling due within one year |
2024 |
|
2023 |
£ |
£ |
|
|
Bank overdrafts |
3,149 |
|
1,804 |
|
Trade creditors |
15,291 |
|
25,987 |
|
Corporation tax |
92,068 |
|
143,980 |
|
Other taxes and social security costs |
1,186,104 |
|
964,600 |
|
Accruals and deferred income |
1,176,235 |
|
887,482 |
|
|
|
|
|
|
2,472,847 |
|
2,023,853 |
|
|
|
|
|
|
|
|
|
|
|
12 |
Deferred taxation |
2024 |
|
2023 |
£ |
£ |
|
|
Accelerated capital allowances |
6,719 |
|
8,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
£ |
£ |
|
|
At 1 October |
8,773 |
|
10,290 |
|
Credited to the profit and loss account |
(2,054) |
|
(1,517) |
|
|
At 30 September |
6,719 |
|
8,773 |
|
|
|
|
|
|
|
|
|
|
|
13 |
Share capital |
Nominal |
|
2024 |
|
2024 |
|
2023 |
value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
2 |
|
2 |
|
2 |
|
|
|
|
|
|
|
|
|
|
14 |
Profit and loss account |
2024 |
|
2023 |
£ |
£ |
|
|
At 1 October |
1,321,468 |
|
1,315,341 |
|
Profit for the financial year |
294,275 |
|
506,127 |
|
Dividends |
(450,000) |
|
(500,000) |
|
|
At 30 September |
1,165,743 |
|
1,321,468 |
|
|
|
|
|
|
|
|
|
|
15 |
Dividends |
2024 |
|
2023 |
£ |
£ |
|
|
Dividends on ordinary shares (note 14) |
450,000 |
|
500,000 |
|
|
|
|
|
|
|
|
|
|
|
16 |
Events after the reporting date |
|
|
There have been no events since the balance sheet date which would require the financial statements to be re-stated. |
|
|
17 |
Bank & other borrowings |
|
|
The Company's borrowings at 30th September 2024 were secured as follows: A fixed charge over the company's book debts. |
|
|
18 |
Contingent liabilities |
|
|
As far as the directors are aware there are no contingent liabilities at 30th September 2024 not provided for in the accounts. |
|
19 |
Related party transactions |
|
|
No related party transactions occurred outside the normal course of business. |
|
|
|
20 |
Controlling party |
|
|
The company is a subsidiary of Stanza Holdings (NI) Ltd, however the ultimate controlling party is Mr Sean Doyle |
|
|
21 |
Presentation currency |
|
|
The financial statements are presented in Sterling. |
|
|
22 |
Legal form of entity and country of incorporation |
|
|
First Choice Selection Services Ltd is a private company limited by shares and incorporated in Northern Ireland. |
|
|
23 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is: |
|
|
Unit 1 Cathedral Terrace |
|
19-27 Church Street |
|
Belfast |
|
BT1 1PG |
|
24 |
Financial Instruments |
|
The carrying amounts of the company's financial instruments are as follows: |
|
|
|
|
|
|
|
2024 |
|
2023 |
|
Debt instruments measured at amortised cost : |
£ |
£ |
|
Trade debtors (note 9) |
1,695,228 |
|
1,251,191 |
|
Other debtors (note 9) |
12,230 |
|
27,284 |
|
|
|
|
|
|
|
1,707,458 |
|
1,278,475 |
|
|
|
|
|
|
|
|
|
|
Financial Liabilities |
|
Measured at amortised cost |
|
-Bank loans and overdrafts (note 10) |
|
|
|
3,149 |
|
1,804 |
|
-Trade creditors (note 10) |
15,291 |
|
25,987 |
|
|
|
|
|
|
18,440 |
|
27,791 |
|
|
|
|
|
|
|
|
|