Company registration number 08499541 (England and Wales)
DEPLOY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
DEPLOY LIMITED
COMPANY INFORMATION
Director
P Smith
Company number
08499541
Registered office
73 Cornhill
London
EC3V 3QQ
Auditor
Gerald Edelman LLP
73 Cornhill
London
EC3V 3QQ
Business address
No 1 Croydon
12-16 Addiscombe Road
Croydon
CR0 0XT
DEPLOY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
4
Director's responsibilities statement
3
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 22
DEPLOY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -
The director presents the strategic report for the year ended 31 October 2024.
Review of the business
Deploy has enjoyed a successful year due to the efficiencies and systems introduced last year and focusing on the top and bottom lines. Our core markets of Rail and Infrastructure continue to show resilience, with the rail sector just starting its new spending control period for the next five years. We have secured strategic partnerships with key clients within the sector and are currently tendering for several large long-term contracts. We have also expanded our operations into supplying resources to Ireland and North America to service clients in our current markets.
Systems and technology are still critical to the long-term success of our new website, which will focus on the user experience of our candidates and clients. This will then feed into our cloud-based CRM and allow us to focus our efforts on our marketing strategy, allowing for greater brand exposure across all of the sectors we service. Our four office locations: Central London, Greater London (South), Hampshire, and Hertfordshire allow us to attract talent to Deploy, enabling us to hit the coming year's targets and allow for growth into the following year.
The company made a profit before tax of £296,456 (2023: £419,459). The company has net current assets of £2,010,707 (2023: £1,941,219). The key performance indicator used by management is the gross profit margin. The director consider the underlying operational performance of the company to be satisfactory. The company made a gross profit of £3,996,512 (2023: £3,815,006) during the year. The gross profit margin of 19.2% (2023: 19.2%) as a result of trading, was in line with management expectations, primarily due to greater efficiencies and more focus on our cost base.
Deploy are the go-to consultancy for infrastructure and technology recruitment. We aim to positively impact the efficiency, safety, compliance, and working practices of projects across Rail and Infrastructure, Engineering and Manufacturing, Energy and Power, IT and Technology, and more by strategically sourcing and matching niche, skilled individuals, designing quality solutions, and long-term collaboration.
Principal risks and uncertainties
There is no requirement for a formal risk management structure due to the close involvement of the director in the day-to-day management of the business. The risk implications of business decisions affecting the company are considered by the director and his key management team on an ongoing basis to ensure that any risks arising from changes in the company's operations or the external environment are identified and appropriately managed. The detailed individual risks have been categorised into the following areas:
taxation;
management;
financing;
economic climate
In order to provide relevant and timely information to the director, the company prepares regular monthly management reports including analysis of material variances. The nature of the specific risk area and related controls are as follows:
Taxation risk
The company is exposed to financial risks from increases in tax rates and changes to the basis of taxation including corporation tax and VAT in the UK.
Principal controls
These include regular monitoring of legislative proposals and the use of experienced sector-specific professional advisers to mitigate the impact of changes.
Management risk
The company is reliant on its small high calibre team of operational staff and its directors.
DEPLOY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
Principal controls
The company benefits from loyal, high-calibre employees who have been with the group for a number of years. The company has tried to ensure that the knowledge base of this team is maintained. They have an experienced understanding of the sectors they operate in.
Other information and explanations
Financial instruments
The company's financial instruments comprise of bank balances, trade debtors, trade creditors and an invoice discounting facility. The main purpose of these instruments is to raise funds to finance the company's operations. The company's approach to managing risks applicable to the financial instruments concerned is shown below.
Price risk
The directors consider the company's exposure to changing market prices is managed by regularly negotiating prices with suppliers.
Interest rate risk
The company finances its operations primarily through trade debtors and trade creditors, bank balances and an invoice discounting facility. The company’s main exposure to interest rate fluctuations is on the facility, although the company look to limit the amounts drawn to mitigate the risk.
Liquidity risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs to invest cash assets safely and profitably. Primarily this is achieved through an invoice discounting facility allowing the company to draw down on funds when needed. Trade debtors are managed in respect of credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors are managed by ensuring sufficient funds are available to meet amounts due.
Credit risk
All customers who wish to trade on credit terms are subject to credit verification procedures. The management monitors credit risk closely and consider that its current policy of credit checks meet its objectives of managing exposure to credit risk. In addition, trade debtor balances are monitored on an ongoing basis and provision is made for doubtful debts where necessary. The directors do not consider that the group's exposure to bad and doubtful debts is significant.
P Smith
Director
16 April 2025
DEPLOY LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 statement;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is 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.
DEPLOY LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -
The director presents his annual report and financial statements for the year ended 31 October 2024.
Principal activities
The principal activity of the company continued to be that of recruitment services in the rail industry.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
P Smith
Auditor
The auditor, Gerald Edelman LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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 director individually have taken all the necessary steps that they ought to have taken as director in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
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
P Smith
Director
16 April 2025
DEPLOY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DEPLOY LIMITED
- 5 -
Opinion
We have audited the financial statements of Deploy Limited (the 'company') for the year ended 31 October 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, 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 October 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 director's 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 director 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 director is 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
DEPLOY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DEPLOY LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud, is detailed below:
Our audit procedures were primarily directed towards testing the accounting systems in operation which we have based our assessment of the financial statement for the year ended 31 October 2024.
We planned our audit so that we have reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with law or regulations.
Extent to which the audit was considered capable of detecting irregularities, including fraud
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:
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
Enquiring of management of whether they are aware of any non-compliance with laws and regulations.
Enquiring of management whether they have knowledge of any actual, suspected or alleged fraud.
Enquiring of management their internal controls established to mitigate risk related to fraud or non-compliance with laws and regulations.
Discussions amongst the engagement team on how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas; posting of unusual journals.
Obtaining understanding of the legal and regulatory framework the company operates in focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations. The key laws and regulations we considered in this context included UK Companies Act, tax legislation, data protection, anti-bribery, employment law and health and safety.
DEPLOY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DEPLOY LIMITED (CONTINUED)
- 7 -
Audit response to risks identified
Fraud due to management override
To address the risk of fraud through management bias and override of controls, we:
Performed analytical procedures to identify any unusual or unexpected relationships.
Audited the risk of management override of controls, including through testing journal entries for appropriateness
Assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
Investigated the rationale behind significant or unusual transactions.
Irregularities and non-compliance with laws and regulations
In response to the risk of irregularities and non compliance with laws and regulations, we designed procedures which included, but are not limited to:
Agreeing financial statements disclosures to underlying supporting documentation.
Reviewing minutes of meetings of those charged with governance.
Enquiring of management as to actual and potential litigation claims.
Reviewing correspondence with HMRC.
The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK). Furthermore, the more removed that laws and regulations are from financial transactions, the less likely that we would become aware of non-compliance.
Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Hiten Patel FCCA
Senior Statutory Auditor
For and on behalf of Gerald Edelman LLP
16 April 2025
Chartered Accountants
Statutory Auditor
73 Cornhill
London
EC3V 3QQ
DEPLOY LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
20,855,827
19,860,580
Cost of sales
(16,859,314)
(16,045,574)
Gross profit
3,996,513
3,815,006
Administrative expenses
(3,681,674)
(3,360,383)
Operating profit
4
314,839
454,623
Interest payable and similar expenses
7
(18,382)
(35,164)
Profit before taxation
296,457
419,459
Tax on profit
8
(49,902)
(4,999)
Profit for the financial year
246,555
414,460
The profit and loss account has been prepared on the basis that all operations are continuing operations.
DEPLOY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
2024
2023
£
£
Profit for the year
246,555
414,460
Other comprehensive income
-
-
Total comprehensive income for the year
246,555
414,460
DEPLOY LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
21,600
24,396
Current assets
Debtors
10
5,061,643
6,228,494
Cash at bank and in hand
468,201
204,754
5,529,844
6,433,248
Creditors: amounts falling due within one year
11
(3,569,737)
(4,516,425)
Net current assets
1,960,107
1,916,823
Total assets less current liabilities
1,981,707
1,941,219
Creditors: amounts falling due after more than one year
12
(101,417)
(306,785)
Provisions for liabilities
Deferred tax liability
15
5,400
6,099
(5,400)
(6,099)
Net assets
1,874,890
1,628,335
Capital and reserves
Called up share capital
17
100
100
Profit and loss reserves
1,874,790
1,628,235
Total equity
1,874,890
1,628,335
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 16 April 2025
P Smith
Director
Company registration number 08499541 (England and Wales)
DEPLOY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 November 2022
100
1,213,775
1,213,875
Year ended 31 October 2023:
Profit and total comprehensive income
-
414,460
414,460
Balance at 31 October 2023
100
1,628,235
1,628,335
Year ended 31 October 2024:
Profit and total comprehensive income
-
246,555
246,555
Balance at 31 October 2024
100
1,874,790
1,874,890
DEPLOY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
1
Accounting policies
Company information
Deploy Limited is a private company limited by shares incorporated in England and Wales. The registered office is 73 Cornhill, London, EC3V 3QQ.
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 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Deploy Group Recruitment Limited. These consolidated financial statements are available from its registered office.
1.2
Going concern
In determining the appropriate basis of preparation of the Financial Statements, the director is required to consider whether the company can continue in operational existence for the foreseeable future.
The Company’s forecast and projections, taking account of reasonable possible changes in trading performance, show that the company will be able to operate within the level of its current facilities.
Accordingly, at the time of approving the financial statements, the director has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Therefore, the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for labour services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
1.4
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.
DEPLOY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 13 -
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:
Plant and equipment
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
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.
1.6
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.
1.7
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 balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
DEPLOY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
DEPLOY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
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. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
DEPLOY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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 leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Depreciation of tangible fixed assets
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates and the physical condition of the assets.
Accrued income
The group has in place established internal control processes to ensure that the evaluation of costs and revenues is based upon appropriate estimates and calculations.
3
Turnover
DEPLOY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
3
Turnover
(Continued)
- 17 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
20,617,417
19,860,580
USA & Canada
238,409
-
20,855,826
19,860,580
Analysis per statutory database
20,855,826
19,860,580
Statutory database analysis does not agree to the trial balance by:
1
-
All turnover is derived from it's principal activity undertaken in the UK.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
34,000
30,000
Depreciation of owned tangible fixed assets
14,519
12,186
Operating lease charges
147,058
109,145
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
28
26
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,584,233
1,489,879
Social security costs
186,425
169,698
Pension costs
48,973
32,018
1,819,631
1,691,595
DEPLOY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 18 -
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
175,940
175,940
Company pension contributions to defined contribution schemes
13,033
6,800
188,973
182,740
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
18,382
35,164
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
52,415
55,395
Adjustments in respect of prior periods
(1,814)
(50,720)
Total current tax
50,601
4,675
Deferred tax
Origination and reversal of timing differences
(699)
324
Total tax charge
49,902
4,999
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
296,457
419,459
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.50%)
74,114
94,378
Tax effect of expenses that are not deductible in determining taxable profit
2,842
9,952
Adjustments in respect of prior years
(50,720)
Permanent capital allowances in excess of depreciation
(342)
Research and development tax credit
(25,240)
(48,269)
Under/(over) provided in prior years
(1,814)
Taxation charge for the year
49,902
4,999
DEPLOY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 19 -
9
Tangible fixed assets
Plant and equipment
£
Cost
At 1 November 2023
64,394
Additions
11,723
Disposals
(14,297)
At 31 October 2024
61,820
Depreciation and impairment
At 1 November 2023
39,998
Depreciation charged in the year
14,519
Eliminated in respect of disposals
(14,297)
At 31 October 2024
40,220
Carrying amount
At 31 October 2024
21,600
At 31 October 2023
24,396
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,227,080
3,586,719
Amounts owed by group undertakings
1,387,536
1,224,067
Other debtors
7,012
3,860
Prepayments and accrued income
1,440,015
1,413,848
5,061,643
6,228,494
11
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
13
56,257
70,615
Trade creditors
1,261,818
1,030,881
Corporation tax
52,415
4,675
Other taxation and social security
403,913
496,578
Other creditors
1,230,551
2,231,858
Accruals and deferred income
564,783
681,818
3,569,737
4,516,425
DEPLOY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
11
Creditors: amounts falling due within one year
(Continued)
- 20 -
Included in other creditors is a balance of £974,513 (2023: £2,028,883) due as a finance facility which is secured by a debenture over the assets of the company and a cross guarantee between the company and Deploy Projects Ltd, Deploy (UK) Holdings Limited and Deploy Recruitment Group Limited.
12
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
13
101,417
140,119
Other creditors
166,666
101,417
306,785
13
Loans and overdrafts
2024
2023
£
£
Bank loans
157,674
210,734
Payable within one year
56,257
70,615
Payable after one year
101,417
140,119
Interest and arrangement fees were paid on a loan by the government for the first 12 months, with an annual interest rate of 2.5% payable by the group thereafter. The loan will be fully repaid by March 2026.
A loan of £250,000 was advanced in 2021 on which interest is charged at a fixed rate of 11% per annum. The loan will be fully repaid by July 2027.
14
Provisions for liabilities
2024
2023
£
£
Deferred tax liabilities
15
5,400
6,099
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
5,400
6,099
DEPLOY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
15
Deferred taxation
(Continued)
- 21 -
2024
Movements in the year:
£
Liability at 1 November 2023
6,099
Credit to profit or loss
(699)
Liability at 31 October 2024
5,400
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
48,973
32,018
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 shares of £1 each
100
100
100
100
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
120,845
19
Related party transactions
The company has taken advantage of the exemption available in accordance with FRS 102 'Related party disclosures' not to disclose transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.
During the year, the company incurred training costs of £231,363 (2023: £182,812) from a company owned by the director's wife. At the year-end, an amount of £29,097 (2023: £14,194) was outstanding and shown within trade creditors.
The total remuneration for key management personnel for the year totaled £363,994 (2023:£182,740).
DEPLOY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 22 -
20
Ultimate controlling party
The ultimate holding company is Deploy Recruitment Group Limited, a company registered in England and Wales.
Deploy Recruitment Group Limited is controlled by P Smith.
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