Company registration number 07306591 (England and Wales)
VERITA HR LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
VERITA HR LIMITED
COMPANY INFORMATION
Directors
A L Birks
K Archimowicz
A Samu
(Appointed 1 March 2024)
Secretary
IA Pasley
Company number
07306591
Registered office
Egale 1
80 St Albans Road
Watford
Hertfordshire
WD17 1DL
Auditor
Myers Clark
Egale 1
80 St Albans Road
Watford
Hertfordshire
WD17 1DL
VERITA HR LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 26
VERITA HR LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
The principal activity of the company is to act as a holding company of Verita HR Polska Sp. z o.o, a limited liability company, incorporated in Poland.
Verita HR Polska Sp. z o.o. holds one subsidiary, HRO Personnel Sp. z o. o. The principal activity of this group continued to be that of human resources provision and management of human resources functions.
Review of the business
During the financial year, the subsidiary companies generated a profit and loss in net amounts:
Verita HR Polska Sp. z o.o. - loss of 1, 042,473 zlotys (in words: one million and forty two thousand and four hundred and seventy three zlotys)
HRO Personnel Sp. z o.o. – profit of 782,018 zlotys (in words: seven hundred and eighty two thousand and eighteen zlotys)
Principal risks and uncertainties
The principal risk faced by the group during the year is that of business risk. This rick and uncertainty is managed by actively seeking new potential contracts.
Credit risk
The principal credit risk the group faces is that of non-payment of invoices for services supplied. The company has policies in place to obtain appropriate credit checks on potential customers and appropriate insurance against such risks.
Price risk
Competitive pressure is a risk for the group. The group manages the risk by providing value added services and maintaining strong relationships with its customers.
Liquidity risk
The group consistently monitors its liquidity and funding to ensure that adequate funding is available for on-going and future operations.
Cash flow risk
The group's principal financial assets are trade debtors, failure to collect these debtors has a significant impact on the group's ability to service its liabilities. An allowance for impairment is made for trade debtors where there is an identified loss event which is evidence of a reduction in the recoverability of the cash flows.
A L Birks
Director
6 May 2025
VERITA HR LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid by Verita HR Polska Sp.z o.o. amounting to PLN nil (2022 - PLN nil). The director does not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
A L Birks
K Archimowicz
A Samu
(Appointed 1 March 2024)
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
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
A L Birks
Director
6 May 2025
VERITA HR LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
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 group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
VERITA HR LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VERITA HR LIMITED
- 4 -
Opinion
We have audited the financial statements of Verita HR Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2023 and of the group's loss 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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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 group's and parent 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 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.
VERITA HR LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VERITA HR LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
VERITA HR LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VERITA HR LIMITED
- 6 -
Identifying and assessing potential risks related to irregularities
In identified and assessing risks of material misstatement 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 including the design of the remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
any matters we identified having obtained and review the company’s documentation of their policies and procedures relating to;
identifying, evaluating and complying with laws and regulation and whether they were aware of any instances of non-compliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
the matters discussed among the audit engagement 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 considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (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 frameworks 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 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. This included Employment Law.
Audit response to risks identified
As a result of performing the above, we identified the management override of controls as a key audit matter related to the potential risk of fraud. The key audit matters section of our report explains the matter in more detail and also describes the specific procedures we performed in response to that key audit matter.
Our procedures to respond to 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 may indicate risks of material misstatement due to fraud;
reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; 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.
VERITA HR LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VERITA HR LIMITED
- 7 -
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Ian Meaburn (Senior Statutory Auditor)
for and on behalf of Myers Clark
6 May 2025
Chartered Accountants
Statutory Auditor
VERITA HR LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
Continuing
Discontinued
31 December
Continuing
Discontinued
31 December
operations
operations
2023
operations
operations
2022
Notes
PLN
PLN
PLN
PLN
PLN
PLN
Turnover
3
125,628,186
-
125,628,186
131,043,720
6,874,353
137,918,073
Cost of sales
(895,065)
-
(895,065)
(783,717)
(1,287)
(785,004)
Gross profit
124,733,121
-
124,733,121
130,260,003
6,873,066
137,133,069
Administrative expenses
(125,275,556)
-
(125,275,556)
(130,342,039)
(6,927,607)
(137,269,646)
Operating loss
4
(542,435)
-
(542,435)
(82,036)
(54,541)
(136,577)
Interest receivable and similar income
7
2
-
2
(3,514)
4,140
626
Interest payable and similar expenses
8
(480,784)
-
(480,784)
(201,383)
(5,223)
(206,606)
Amounts written off investments
9
-
-
-
(1,040,493)
-
(1,040,493)
Loss before taxation
(1,023,217)
-
(1,023,217)
(1,327,426)
(55,624)
(1,383,050)
Tax on loss
10
642,653
-
642,653
(702,094)
(43,634)
(745,728)
Loss for the financial year
(380,564)
-
(380,564)
(2,029,520)
(99,258)
(2,128,778)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
VERITA HR LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
PLN
PLN
PLN
PLN
Fixed assets
Goodwill
12
306,960
368,352
Tangible assets
13
239,461
500,100
546,421
868,452
Current assets
Debtors
16
21,823,478
23,945,540
Cash at bank and in hand
1,194,238
1,567,229
23,017,716
25,512,769
Creditors: amounts falling due within one year
17
(22,267,315)
(24,721,512)
Net current assets
750,401
791,257
Total assets less current liabilities
1,296,822
1,659,709
Provisions for liabilities
Deferred tax liability
18
18,423
746
(18,423)
(746)
Net assets
1,278,399
1,658,963
Capital and reserves
Called up share capital
19
238
238
Capital redemption reserve
237
237
Profit and loss reserves
1,414,004
1,794,568
Equity attributable to owners of the parent company
1,414,479
1,795,043
Non-controlling interests
(136,080)
(136,080)
Total equity
1,278,399
1,658,963
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 6 May 2025 and are signed on its behalf by:
06 May 2025
A L Birks
Director
Company registration number 07306591 (England and Wales)
VERITA HR LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
PLN
PLN
PLN
PLN
Fixed assets
Investments
14
750,005
750,005
Current assets
Debtors
16
10,666
9,932
Cash at bank and in hand
11
12
10,677
9,944
Creditors: amounts falling due within one year
17
(438,487)
(378,987)
Net current liabilities
(427,810)
(369,043)
Net assets
322,195
380,962
Capital and reserves
Called up share capital
19
238
238
Capital redemption reserve
237
237
Profit and loss reserves
321,720
380,487
Total equity
322,195
380,962
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was PLN58767 (2022 - PLN61151 loss).
The financial statements were approved by the board of directors and authorised for issue on 6 May 2025 and are signed on its behalf by:
06 May 2025
A L Birks
Director
Company registration number 07306591 (England and Wales)
VERITA HR LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
PLN
PLN
PLN
PLN
PLN
PLN
Balance at 1 January 2022
238
237
3,923,346
3,923,821
(136,080)
3,787,741
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
(2,128,778)
(2,128,778)
-
(2,128,778)
Balance at 31 December 2022
238
237
1,794,568
1,795,043
(136,080)
1,658,963
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
(380,564)
(380,564)
-
(380,564)
Balance at 31 December 2023
238
237
1,414,004
1,414,479
(136,080)
1,278,399
VERITA HR LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
PLN
PLN
PLN
PLN
Balance at 1 January 2022
238
237
441,638
442,113
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(61,151)
(61,151)
Balance at 31 December 2022
238
237
380,487
380,962
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
(58,767)
(58,767)
Balance at 31 December 2023
238
237
321,720
322,195
VERITA HR LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
PLN
PLN
PLN
PLN
Cash flows from operating activities
Cash generated from/(absorbed by) operations
23
1,649,131
(8,085,580)
Interest paid
(480,784)
(206,606)
Income taxes refunded
-
2,570,017
Net cash inflow/(outflow) from operating activities
1,168,347
(5,722,169)
Investing activities
Cash movement from disposal of business
-
(490,831)
Purchase of tangible fixed assets
(5,368)
(42,413)
Proceeds from disposal of tangible fixed assets
-
1,679
Interest received
2
626
Net cash used in investing activities
(5,366)
(530,939)
Financing activities
Proceeds from new bank loans
-
3,451,618
Repayment of bank loans
(1,525,440)
-
Net cash (used in)/generated from financing activities
(1,525,440)
3,451,618
Net decrease in cash and cash equivalents
(362,459)
(2,801,490)
Cash and cash equivalents at beginning of year
1,540,856
4,342,346
Cash and cash equivalents at end of year
1,178,397
1,540,856
Relating to:
Cash at bank and in hand
1,194,238
1,567,229
Bank overdrafts included in creditors payable within one year
(15,841)
(26,373)
VERITA HR LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
PLN
PLN
PLN
PLN
Cash flows from operating activities
Cash generated from/(absorbed by) operations
24
10,530
(21,618)
Investing activities
Interest received
1
1
Net cash generated from investing activities
1
1
Net increase/(decrease) in cash and cash equivalents
10,531
(21,617)
Cash and cash equivalents at beginning of year
(26,361)
(4,744)
Cash and cash equivalents at end of year
(15,830)
(26,361)
Relating to:
Cash at bank and in hand
11
12
Bank overdrafts included in creditors payable within one year
(15,841)
(26,373)
VERITA HR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information
Verita HR Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Egale 1, 80 St Albans Road, Watford, Hertfordshire, WD17 1DL.
The group consists of Verita HR Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in Polish zloty which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest PLN.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Basis of consolidation
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
The consolidated group financial statements consist of the financial statements of the parent company Verita HR Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover from the sale of outsourcing and temporary work services is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. Turnover is recognised in the period in which it relates.
VERITA HR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
Licences
20% straight line
Other intangible assets
50% straight line
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
30% 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 recognised in the profit and loss account.
1.7
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Cash at bank and in hand
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.
1.9
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
VERITA HR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
1.10
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
VERITA HR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.12
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.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates subject to judgement and uncertainty in the accounts are depreciation and amortisation of goodwill.
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2023
2022
PLN
PLN
Turnover analysed by class of business
Sale of services
124,949,918
137,578,971
Other operating revenues
678,268
339,102
125,628,186
137,918,073
2023
2022
PLN
PLN
Turnover analysed by geographical market
Poland
125,628,186
137,918,073
2023
2022
PLN
PLN
Other revenue
Interest income
2
626
VERITA HR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
4
Operating loss
2023
2022
PLN
PLN
Operating loss for the year is stated after charging/(crediting):
Exchange gains
(18,163)
(9,704)
Fees payable to the group's auditor for the audit of the group's financial statements
32,775
35,528
Depreciation of owned tangible fixed assets
266,022
343,207
Amortisation of intangible assets
61,392
61,392
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Head office
33
59
-
-
Temporary placements
500
767
-
-
533
826
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
PLN
PLN
PLN
PLN
Wages and salaries
77,681,508
94,770,786
Social security costs
16,144,520
18,637,762
-
-
93,826,028
113,408,548
6
Directors' remuneration
2023
2022
PLN
PLN
Remuneration for qualifying services
78,000
92,217
7
Interest receivable and similar income
2023
2022
PLN
PLN
Interest income
Interest on bank deposits
2
626
VERITA HR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Interest receivable and similar income
(Continued)
- 20 -
2023
2022
Investment income includes the following:
PLN
PLN
Interest on financial assets not measured at fair value through profit or loss
2
626
8
Interest payable and similar expenses
2023
2022
PLN
PLN
Other finance costs:
Other interest
480,784
206,606
9
Amounts written off investments
2023
2022
PLN
PLN
Gain/(loss) on disposal of investments held at fair value
-
(1,040,493)
10
Taxation
2023
2022
PLN
PLN
Current tax
UK corporation tax on profits for the current period
(642,653)
691,661
Deferred tax
Adjustment in respect of prior periods
54,067
Total tax (credit)/charge
(642,653)
745,728
VERITA HR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 21 -
The actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
PLN
PLN
Loss before taxation
(1,023,217)
(1,383,050)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(194,411)
(262,780)
Tax effect of expenses that are not deductible in determining taxable profit
40,454
533,686
Tax effect of income not taxable in determining taxable profit
(20,265)
(43,829)
Unutilised tax losses carried forward
192,645
685,093
Deferred Tax
(661,076)
(166,442)
Taxation (credit)/charge
(642,653)
745,728
11
Discontinued operations
SNW sp. z o.o.
On 13 Jun 2022 the group disposed of its 100% holding in SNW Sp. z o.o.
As loss of PLN 1,040,493 arose on the disposal, being the proceeds of the sale, less the carrying amount of the business assets and attributable goodwill. This is included in the comparative figures.
12
Intangible fixed assets
Group
Goodwill
Licences
Other intangible assets
Total
PLN
PLN
PLN
PLN
Cost
At 1 January 2023 and 31 December 2023
613,920
1,004,000
59,789
1,677,709
Amortisation and impairment
At 1 January 2023
245,568
1,004,000
59,789
1,309,357
Amortisation charged for the year
61,392
61,392
At 31 December 2023
306,960
1,004,000
59,789
1,370,749
Carrying amount
At 31 December 2023
306,960
306,960
At 31 December 2022
368,352
368,352
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
VERITA HR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
13
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
PLN
PLN
PLN
PLN
Cost
At 1 January 2023
858,086
699,316
366,271
1,923,673
Additions
5,368
5,368
Disposals
(269,473)
(269,473)
At 31 December 2023
593,981
699,316
366,271
1,659,568
Depreciation and impairment
At 1 January 2023
583,722
605,926
233,925
1,423,573
Depreciation charged in the year
129,564
93,390
43,068
266,022
Eliminated in respect of disposals
(269,488)
(269,488)
At 31 December 2023
443,798
699,316
276,993
1,420,107
Carrying amount
At 31 December 2023
150,183
89,278
239,461
At 31 December 2022
274,364
93,390
132,346
500,100
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
PLN
PLN
PLN
PLN
Investments in subsidiaries
15
750,005
750,005
Movements in fixed asset investments
Company
Shares in subsidiaries
PLN
Cost or valuation
At 1 January 2023 and 31 December 2023
750,005
Carrying amount
At 31 December 2023
750,005
At 31 December 2022
750,005
15
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
VERITA HR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Subsidiaries
(Continued)
- 23 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
HRO Personnel Sp. z o.o.
Poland
Ordinary
100.00
Verita HR Polska Sp. z o.o.
Poland
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
PLN
PLN
HRO Personnel Sp. z o.o.
1,836,260
782,018
Verita HR Polska Sp. z o.o.
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
PLN
PLN
PLN
PLN
Trade debtors
18,471,893
21,670,627
Other debtors
1,085,458
978,236
10,666
9,932
Prepayments and accrued income
790,259
482,751
20,347,610
23,131,614
10,666
9,932
Deferred tax asset (note 18)
1,104,104
443,774
21,451,714
23,575,388
10,666
9,932
Amounts falling due after more than one year:
Other debtors
371,764
370,152
Total debtors
21,823,478
23,945,540
10,666
9,932
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
PLN
PLN
PLN
PLN
Bank loans and overdrafts
1,942,019
3,477,991
15,841
26,373
Trade creditors
3,953,656
2,586,153
78,911
58,640
Other taxation and social security
15,126,815
17,540,302
-
-
Other creditors
915,610
559,253
286,151
233,221
Accruals and deferred income
329,215
557,813
57,584
60,753
22,267,315
24,721,512
438,487
378,987
VERITA HR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
PLN
PLN
PLN
PLN
Accelerated capital allowances
18,423
746
-
-
Payroll
-
-
1,104,104
443,774
18,423
746
1,104,104
443,774
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
PLN
PLN
Asset at 1 January 2023
(443,028)
-
Credit to profit or loss
(642,653)
-
Asset at 31 December 2023
(1,085,681)
-
19
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
PLN
PLN
Issued and fully paid
Ordinary shares of PLN1 each
100
100
238
238
The company has one class of ordinary shares which have full voting, dividend and capital distribution rights, including on winding up.
VERITA HR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
20
Operating lease commitments
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
PLN
PLN
PLN
PLN
Within one year
43,935
90,730
-
-
43,935
90,730
-
-
21
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2023
2022
PLN
PLN
Aggregate compensation
53,000
102,307
22
Controlling party
The ultimate controlling party is The Satesa Business Discretionary Trust.
23
Cash generated from/(absorbed by) group operations
2023
2022
PLN
PLN
Loss after taxation
(380,564)
(2,128,778)
Adjustments for:
Taxation (credited)/charged
(642,653)
745,728
Finance costs
480,784
206,606
Investment income
(2)
(626)
Gain on disposal of tangible fixed assets
-
(2,997,467)
Amortisation and impairment of intangible assets
61,392
61,392
Depreciation and impairment of tangible fixed assets
266,022
343,207
Other gains and losses
-
1,040,493
Increase in provisions
-
158,054
Movements in working capital:
Decrease/(increase) in debtors
2,782,392
(1,707,731)
Decrease in creditors
(918,240)
(3,806,458)
Cash generated from/(absorbed by) operations
1,649,131
(8,085,580)
VERITA HR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
24
Cash generated from/(absorbed by) operations - company
2023
2022
PLN
PLN
Loss after taxation
(58,767)
(61,151)
Adjustments for:
Investment income
(1)
(1)
Movements in working capital:
Increase in debtors
(734)
(7,088)
Increase in creditors
70,032
46,622
Cash generated from/(absorbed by) operations
10,530
(21,618)
25
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
PLN
PLN
PLN
Cash at bank and in hand
1,567,229
(372,991)
1,194,238
Bank overdrafts
(26,373)
10,532
(15,841)
1,540,856
(362,459)
1,178,397
Borrowings excluding overdrafts
(3,451,618)
1,525,440
(1,926,178)
(1,910,762)
1,162,981
(747,781)
26
Analysis of changes in net debt - company
1 January 2023
Cash flows
31 December 2023
PLN
PLN
PLN
Cash at bank and in hand
12
(1)
11
Bank overdrafts
(26,373)
10,532
(15,841)
(26,361)
10,531
(15,830)
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