Company registration number 09664882 (England and Wales)
VALLUM ASSOCIATES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
VALLUM ASSOCIATES LIMITED
COMPANY INFORMATION
Directors
Mr P E Bland
Mr M Kamara
Mr K Kim
Mr M D Petrie
Company number
09664882
Registered office
10 Lower Thames Street
Ground Floor
London
EC3R 6AF
Auditor
Sumer Audit
5 Peveril Court
6-8 London Road
Crawley
West Sussex
RH10 8JE
VALLUM ASSOCIATES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
VALLUM ASSOCIATES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors of Vallum Group Limited present their Strategic Report of the Company for the year ended 31 December 2024.
Business review
Under the vision of CEO Malvin Kamara, Vallum Associates Limited was established in July 2015 and has continued to grow year on year into a specialist recruiter operating globally across various sectors, including Energy & Utilities, Engineering & Renewables, Financial Services, and Tech Practices. The Company connects ambitious talent with pioneering companies.
In 2020 and 2021, the current Board was formed with the addition of:
- Phil Bland FCCA (CFO): Bringing 30 years of financial and commercial staffing knowledge.
- Michael Petrie (Chairman): 30 years of executive-level search experience in the financial services markets.
- Kang Kim (COO): 20+ years of experience in prime services, risk management, and hedge funds.
Over the last four years, the business has experienced considerable and consistent growth across a selection of credible and sustainable clients in all four verticals. Several household-name clients are considered strategic partners. The Company has built and reinforced relationships with existing clients while onboarding new clients, demonstrating mutual respect and success. This approach has enabled the business to work with a diverse range of clients across its pillars, generating consistent repeat business.
The Business continues to underpin its successes by forging partnerships with global system integrators and consultancies, derived from strong relationships fostered over many years. This provides confidence to our strategic partners that Vallum Associates can quickly support their business as a trusted partner.
We continue to maintain strict control over overheads and outgoings which helps to maintain a lean and efficient operation, allowing continued investment in day-to-day practices that further benefit the Company and its clients.
VALLUM ASSOCIATES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties
Risk is ubiquitous and sometimes arrives uninvited, as seen with the Coronavirus pandemic, International conflicts, Brexit etc. However, risk continues to present Vallum with opportunities. During the last 12 months the Company has made further investments in personnel, larger premises both home and abroad, technology and implemented business complimentary strategies to continue diversifying its vertical to meet client and market demands. This has ensured risk mitigation through continued training and development, monitoring of regulatory and legal framework changes, and maintaining strong relationships with business partners ensuring continued strong cash liquidity. The Company has also built resilience against unfavorable conditions with effective credit, liquidity, overhead, and· market risk strategies and plans.
Interest rate risk
The Company continues to finance its operations via a mixture of credit and financing facilities with credible providers and re-investment of profits. Its main exposure to risk is via the Invoice Discounting Facility provided by Close Finance whom we have a strong and mutual relationship.
Currency risk
The Company has minimal exposure to foreign currency fluctuations. Where present, such exposures are usually hedged internally with sales and cost of sales being in the same currency.
Credit risk
The Company has implemented financial policies that require appropriate credit checks on all potential customers before sales are made. The amount of exposure to individual customers is subject to limits that are re-assessed regularly by the Finance department.
Liquidity risk
Cautious liquidity management entails maintaining sufficient reserves of cash and/or availability via an Invoice Discounting Facility, ensuring that there are available funds to carry on operations and any planned expansions. Constant crash tests and forecasts are monitored to manage this risk.
Development and performance
The Board of Directors continue to foresee a positive future and solid returns on investments in 2025 and beyond. Whilst we continue to strengthening our internal core, future expansion will continue to be at the forefront.
Key performance indicators
Vallum Associates has performed well against recruitment-specific success metrics, including:
2024 2023
Permanent placement fee (%) 19% 18%
NFI (Net Fee Income) against turnover (%) 31% 22%
NFI per head (£'000) £226k / 46 £137k / 44
Direct costs against NFI (%) 24% 34%
Overheads against NFI (%) 28% 44%
EBIT against NFI (%) 48% 22%
Debt turnaround days (days) 57 59
This report was approved by the board and signed on its behalf by
Mr P E Bland
Director
11 April 2025
VALLUM ASSOCIATES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of recruitment services.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £3,940,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr P E Bland
Mr M Kamara
Mr K Kim
Mr M D Petrie
Post reporting date events
There have been no significant events affecting the Company since the year end.
Auditor
Sumer Audit were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr P E Bland
Director
11 April 2025
VALLUM ASSOCIATES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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.
VALLUM ASSOCIATES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VALLUM ASSOCIATES LIMITED
- 5 -
Opinion
We have audited the financial statements of Vallum Associates Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
VALLUM ASSOCIATES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VALLUM ASSOCIATES LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
Obtaining an understanding of the legal and regulatory framework that the group operates in, focusing on those laws and regulations that had a direct effect on the financial statements and operations;
Obtaining an understanding of the group’s policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud; and
Discussing among the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud through our knowledge and understanding of the group and company and our sector-specific experience.
As a result of these procedures, we considered the opportunities and incentives that may exist within the group for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: health & safety, employment law and compliance with the UK Companies Act.
In addition to the above, our procedures to respond to risks identified included the following:
Making enquiries of management about any known or suspected instances of non-compliance with laws and regulations and fraud;
Assessment of matters recorded on the company’s health & safety incident register;
Challenging assumptions and judgements made by management in their significant accounting estimates such as depreciation; and
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
VALLUM ASSOCIATES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VALLUM ASSOCIATES LIMITED
- 7 -
Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
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
The financial statements of Vallum Associates Limited for the year ended 31 December 2023 were audited by Cooper Parry Group Limited who expressed an unmodified audit opinion on those statements on 29 July 2024.
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.
Tony Summers (Senior Statutory Auditor)
For and on behalf of Sumer Audit
14 April 2025
Chartered Accountants
Statutory Auditor
Crawley
Sumer Audit is the trading name of Sumer Auditco Limited
VALLUM ASSOCIATES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Revenue
3
33,640,875
27,366,684
Cost of sales
(24,102,600)
(22,013,621)
Gross profit
9,538,275
5,353,063
Administrative expenses
(3,664,424)
(3,328,625)
Operating profit
4
5,873,851
2,024,438
Investment income
648
Finance costs
7
(159,041)
(149,091)
Profit before taxation
5,715,458
1,875,347
Tax on profit
8
(1,623,763)
(374,465)
Profit for the financial year
4,091,695
1,500,882
The income statement has been prepared on the basis that all operations are continuing operations.
VALLUM ASSOCIATES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
10
444,845
552,748
Current assets
Trade and other receivables
11
6,178,418
5,431,270
Cash and cash equivalents
51,581
95,192
6,229,999
5,526,462
Current liabilities
12
(4,305,848)
(3,908,676)
Net current assets
1,924,151
1,617,786
Total assets less current liabilities
2,368,996
2,170,534
Non-current liabilities
13
(362,232)
(419,228)
Provisions for liabilities
Deferred tax liability
15
109,600
5,837
(109,600)
(5,837)
Net assets
1,897,164
1,745,469
Equity
Called up share capital
17
200
200
Capital redemption reserve
18
15
15
Retained earnings
1,896,949
1,745,254
Total equity
1,897,164
1,745,469
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 11 April 2025 and are signed on its behalf by:
Mr P E Bland
Director
Company registration number 09664882 (England and Wales)
VALLUM ASSOCIATES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Capital redemption reserve
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 January 2023
200
15
1,041,705
1,041,920
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,500,882
1,500,882
Dividends
9
-
-
(797,333)
(797,333)
Balance at 31 December 2023
200
15
1,745,254
1,745,469
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
4,091,695
4,091,695
Dividends
9
-
-
(3,940,000)
(3,940,000)
Balance at 31 December 2024
200
15
1,896,949
1,897,164
VALLUM ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
1
Accounting policies
Company information
Vallum Associates Limited is a private company limited by shares incorporated in England and Wales. The registered office is 10 Lower Thames Street, Ground Floor, London, EC3R 6AF.
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.
This 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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
Vallum Associates Limited is a wholly owned subsidiary of Vallum Group Limited and the results of Vallum Associates Limited are included in the consolidated financial statements of Vallum Group Limited which are available from Companies House.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have considered relevant information, including the company’s principal risks and uncertainties, the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. true
Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.
1.3
Revenue
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
VALLUM ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
Turnover from a contract to provide services is recognised in the period in which services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
Turnover from temporary placements is recognised based on the number of contractor hours worked multiplied by the agreed hourly rate of the temporary staff. Turnover not invoiced at the reporting date is included within accrued income.
Fees for permanent placements are agreed in advance with customers. Turnover for permanent placements is recognised when the offer from the customer is accepted by the candidate and is net of back-out provisions where applicable.
Turnover from retainers are agreed in advance with customers. As per the agreement with the client a monthly fixed fee is agreed and sent to the client on a rolling monthly basis over the duration oft he agreement.
1.4
Property, plant and equipment
Property, plant and equipment 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
33% straight line
Motor vehicles
25% straight line
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.
1.5
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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).
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
VALLUM ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.7
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 statement of financial position 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 trade and other receivables 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.
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.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, 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.
VALLUM ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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.
1.8
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.
1.9
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.
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.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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 statement of financial position 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.
VALLUM ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
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.
3
Revenue
2024
2023
£
£
Revenue analysed by class of business
Permanent revenue
1,636,323
2,129,274
Expenses recharged
57,339
46,051
Contract revenue
26,932,951
17,573,391
Non-recruitment services
5,014,262
7,617,968
33,640,875
27,366,684
2024
2023
£
£
Revenue analysed by geographical market
United Kingdom
32,202,088
26,358,252
Europe
1,315,221
951,344
United States
105,178
20,259
Rest of the World
18,388
36,829
33,640,875
27,366,684
2024
2023
£
£
Other revenue
Interest income
648
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
49,487
21,260
Fees payable to the company's auditor for the audit of the company's financial statements
26,000
30,000
Depreciation of owned property, plant and equipment
7,496
8,873
Depreciation of property, plant and equipment held under finance leases
104,602
86,192
Operating lease charges
283,392
316,735
VALLUM ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales
38
39
Total
38
39
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,747,344
1,486,793
Social security costs
279,167
259,077
Pension costs
38,495
33,894
2,065,006
1,779,764
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
120,000
120,000
Company pension contributions to defined contribution schemes
2,851
2,551
122,851
122,551
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).
7
Finance costs
2024
2023
£
£
Other interest
159,041
149,091
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,520,000
377,152
VALLUM ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
8
Taxation
2024
2023
£
£
(Continued)
- 17 -
Deferred tax
Origination and reversal of timing differences
103,763
(2,687)
Total tax charge
1,623,763
374,465
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
5,715,458
1,875,347
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
1,428,865
468,837
Tax effect of expenses that are not deductible in determining taxable profit
59,779
67,937
Other permanent differences
4,056
Deferred tax adjustments in respect of prior years
131,063
Change in Tax rate
(23,760)
Deferred tax not provided for
(138,549)
Taxation charge for the year
1,623,763
374,465
9
Dividends
2024
2023
£
£
Interim paid
3,940,000
797,333
VALLUM ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
10
Property, plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 January 2024
45,581
609,203
654,784
Additions
4,195
4,195
At 31 December 2024
49,776
609,203
658,979
Depreciation and impairment
At 1 January 2024
15,844
86,192
102,036
Depreciation charged in the year
7,496
104,602
112,098
At 31 December 2024
23,340
190,794
214,134
Carrying amount
At 31 December 2024
26,436
418,409
444,845
At 31 December 2023
29,737
523,011
552,748
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
418,409
523,011
11
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
5,215,227
4,436,153
Amounts owed by group undertakings
664,934
552,750
Other receivables
59,684
276,967
Prepayments and accrued income
238,573
165,400
6,178,418
5,431,270
VALLUM ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
12
Current liabilities
2024
2023
Notes
£
£
Obligations under finance leases
14
99,595
95,595
Trade payables
1,776,003
1,188,594
Corporation tax
920,000
203,152
Other taxation and social security
478,119
412,425
Other payables
850,823
1,689,808
Accruals and deferred income
181,308
319,102
4,305,848
3,908,676
Included in Other Creditors is a loan amount of £256,134 (2023: £1,436,698). The loan amount is an invoice factoring account which is secured against invoices raised by the Company.
13
Non-current liabilities
2024
2023
Notes
£
£
Obligations under finance leases
14
362,232
419,228
14
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
99,595
95,595
In two to five years
362,232
419,228
461,827
514,823
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
109,600
5,837
VALLUM ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
15
Deferred taxation
(Continued)
- 20 -
2024
Movements in the year:
£
Liability at 1 January 2024
5,837
Charge to profit or loss
103,763
Liability at 31 December 2024
109,600
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
38,495
33,894
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.
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
100
100
100
100
Ordinary B shares of £1 each
70
70
70
70
Ordinary C shares of £1 each
30
30
30
30
200
200
200
200
Ordinary A shares have full rights in the company with respect to voting, dividends and distributions.
Ordinary B shares have full rights in the company with respect to voting dividends and distributions.
Ordinary C shares have full rights in the company with respect to voting dividends and distributions.
18
Capital redemption reserve
Previously issued shares repurchased from share holders by the Company.
VALLUM ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
19
Operating lease commitments
Lessee
At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
2024
2023
£
£
Within one year
128,625
154,350
Between two and five years
128,625
128,625
282,975
20
Related party transactions
Transactions with related parties
The Company has taken advantage of exemption, under the terms of Financial Reporting Standard 102. The Financial Reporting Standard applicable in the UK and Republic of Ireland, not to disclose related party transactions with wholly owned subsidiaries within the Group.
There were no key management personnel other than the directors.
21
Directors' transactions
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Philip Bland
38,150
611,850
(850,000)
(200,000)
Malvin Kamara
105,000
547,500
(652,500)
-
Kang Shik Kim
41,795
608,205
(650,000)
-
Michael Petrie
35,749
614,251
(650,000)
-
220,694
2,381,806
(2,802,500)
(200,000)
22
Ultimate controlling party
The ultimate parent company is Vallum Group Limited. Its registered office is 10 Lower Thames Street, Ground Floor, London, United Kingdom, EC3R 6AF. There is not considered to be an ultimate controlling party.
Vallum Group Limited prepares consolidated financial statements which are available from Companies House.
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