Company registration number 02855561 (England and Wales)
MANE CONTRACT SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
Faulkner House
Victoria Street
Rayner Essex LLP
St Albans
Chartered Accountants
Hertfordshire
AL1 3SE
MANE CONTRACT SERVICES LIMITED
COMPANY INFORMATION
Directors
L Pacelli
G Shayler
Company number
02855561
Registered office
3rd Floor
6 Hercules Way
Watford
Hertfordshire
WD25 7GS
Auditor
Rayner Essex LLP
Faulkner House
Victoria Street
St Albans
Hertfordshire
AL1 3SE
MANE CONTRACT SERVICES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
MANE CONTRACT SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -
The directors present the strategic report for the year ended 31 August 2024.
Review of the business
The directors can report that the business has encountered a slowing economy in an increasingly uncertain environment during this financial year.
The business is focused on cost control and maintaining profitability by concentrating on key engineering markets across the UK and Europe.
Principal risks and uncertainties
The directors cannot see any risks or uncertainties other than the normal commercial risks associated with running a business of this size in the recruitment sector. The principal risks and uncertainties being detailed below:-
Liquidity Risk
The directors manages liquidity risk by a combination of controls such as monitoring gearing levels and ensuring facilities are readily available for future use.
Competition Risk
The directors considers that following a detailed review, the company is in a good position to attract new clients and ultimately capitalise on new opportunities which may arise in the coming year.
Development and performance
The company continues to develop the business in accordance with plans and projections.
Key performance indicators
The Key Performance Indicators (KPIs) of the company reviewed by the board are the gross profit margin, operating profit margin and net profit margin. The board approves forecasts for the coming year and these together with the expected KPIs are compared against the actual figures throughout the financial year.
The Company's financial performance for the year is monitored using the following KPI's:
2024 2023
Turnover for the year £55.5m £48.2m
Gross Profit % 14.5% 14.6% Ratio of gross profit to turnover
Operating Profit % 2.2% 2.9% Ratio of operating profit to turnover
Net Profit % 0.9% 1.9% Ratio of net profit after tax to turnover
L Pacelli
Director
8 May 2025
MANE CONTRACT SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 August 2024.
Principal activities
The principal activity of the company continued to be that of staff employment agency for the supply of technical staff.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £174,333. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
L Pacelli
G Shayler
Financial instruments
Treasury operations and financial instruments
The company uses financial instruments comprising of bank loans and asset based financing facilities, together with various items such as trade debtors and trade creditors that arise directly from its operations. It is the objective of the board to ensure that the company has ready access to the level of funds that the board deems necessary at any time during the year. The board reviews future projections to highlight any times when requirements may exceed current levels of funding to ensure that facilities are in place and available.
The main risks arising from the financial instruments used by the company are liquidity risk and competition risk. The board reviews and agrees policies for managing these risks, as detailed in the strategic report to minimise exposure.
Future developments
The company continues to develop the business in accordance with plans and projections.
Auditor
The auditor, Rayner Essex LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
MANE CONTRACT SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of review of the business, principal risks and uncertainties, development and performance and key performance indicators.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
L Pacelli
Director
8 May 2025
MANE CONTRACT SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MANE CONTRACT SERVICES LIMITED
- 4 -
Opinion
We have audited the financial statements of Mane Contract Services Limited (the 'company') for the year ended 31 August 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 company's affairs as at 31 August 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
MANE CONTRACT SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MANE CONTRACT SERVICES LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
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;
we identified the laws and regulations applicable to the company through discussions with the directors and other management, and from our commercial knowledge and experience of the recruitment sector.
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment law, Agency Workers Regulations 2011, Employment Business Regulations 2003 and other relevant regulations;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
MANE CONTRACT SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MANE CONTRACT SERVICES LIMITED (CONTINUED)
- 6 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC and relevant regulators.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
Antony Federer FCA FCCA CF
Senior Statutory Auditor
For and on behalf of Rayner Essex LLP
8 May 2025
Chartered Accountants
Statutory Auditor
Faulkner House
Victoria Street
St Albans
Hertfordshire
AL1 3SE
MANE CONTRACT SERVICES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
55,516,927
48,176,558
Cost of sales
(47,484,737)
(41,123,257)
Gross profit
8,032,190
7,053,301
Administrative expenses
(6,817,734)
(5,648,193)
Other operating income
10,243
Operating profit
9
1,214,456
1,415,351
Interest receivable and similar income
6
239
1,482
Interest payable and similar expenses
7
(360,760)
(249,763)
Amounts written off loans
8
(160,358)
-
Profit before taxation
693,577
1,167,070
Tax on profit
11
(205,109)
(262,518)
Profit for the financial year
488,468
904,552
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MANE CONTRACT SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
2024
2023
£
£
Profit for the year
488,468
904,552
Other comprehensive income
-
-
Total comprehensive income for the year
488,468
904,552
MANE CONTRACT SERVICES LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
179,049
219,720
Investments
13
100
100
179,149
219,820
Current assets
Debtors
16
9,618,596
9,643,801
Cash at bank and in hand
253,570
1,012,104
9,872,166
10,655,905
Creditors: amounts falling due within one year
17
(6,998,461)
(8,153,592)
Net current assets
2,873,705
2,502,313
Net assets
3,052,854
2,722,133
Capital and reserves
Called up share capital
21
315,206
298,620
Share premium account
45,000
45,000
Capital redemption reserve
63,158
63,158
Profit and loss reserves
22
2,629,490
2,315,355
Total equity
3,052,854
2,722,133
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 8 May 2025 and are signed on its behalf by:
L Pacelli
Director
Company registration number 02855561 (England and Wales)
MANE CONTRACT SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 September 2022
298,620
45,000
63,158
1,543,689
1,950,467
Year ended 31 August 2023:
Profit and total comprehensive income
-
-
-
904,552
904,552
Dividends
10
-
-
-
(132,886)
(132,886)
Balance at 31 August 2023
298,620
45,000
63,158
2,315,355
2,722,133
Year ended 31 August 2024:
Profit and total comprehensive income
-
-
-
488,468
488,468
Issue of share capital
21
16,586
-
-
16,586
Dividends
10
-
-
-
(174,333)
(174,333)
Balance at 31 August 2024
315,206
45,000
63,158
2,629,490
3,052,854
MANE CONTRACT SERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
198,790
736,469
Interest paid
(360,760)
(249,763)
Income taxes paid
(123,372)
(15,965)
Net cash (outflow)/inflow from operating activities
(285,342)
470,741
Investing activities
Purchase of tangible fixed assets
(13,033)
(36,394)
Repayment of loans
(177,651)
465,233
Interest received
239
1,482
Net cash (used in)/generated from investing activities
(190,445)
430,321
Financing activities
Proceeds from issue of shares
16,586
Repayment of bank loans
(125,000)
(250,000)
Dividends paid
(174,333)
(132,886)
Net cash used in financing activities
(282,747)
(382,886)
Net (decrease)/increase in cash and cash equivalents
(758,534)
518,176
Cash and cash equivalents at beginning of year
1,012,104
493,928
Cash and cash equivalents at end of year
253,570
1,012,104
MANE CONTRACT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -
1
Accounting policies
Company information
Mane Contract Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, 6 Hercules Way, Watford, Hertfordshire, WD25 7GS.
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 on the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
The company's sole subsidiary, Socium Total Talent Management Limited, did not trade during the year and its inclusion in consolidated group accounts would be insignificant to the overall reading of the financial statements.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
In assessing the appropriateness of the going concern assumption, the directors have prepared detailed cash flow forecasts for the company. In the modelled forecast scenarios the directors are satisfied that the company can continue to operate within its current cash and other facilities.
1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
Revenue in respect of recruitment services provided is recognised in full when the customer has authorised timesheets for labour provided.
Income received from placing permanent staff is recognised at the point an individual accepts an offer of placement by signing the terms and condition of employment and commences that period of employment.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Land and buildings Leasehold
over the term of the lease
Fixtures, fittings & equipment
over 2-5 years
Motor vehicles
over 5 years
MANE CONTRACT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 13 -
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
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
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.
1.7
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.
MANE CONTRACT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 14 -
1.8
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.
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.
MANE CONTRACT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 15 -
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.
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.
1.9
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.
1.10
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
MANE CONTRACT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 16 -
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.
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.
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Share-based payments
1.15
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.
1.16
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.
MANE CONTRACT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 17 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
There are not considered to be any estimates or assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities of the company.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Temporary Placements
54,526,399
46,874,358
Permanent Placements
986,051
1,264,841
Other
4,477
37,359
55,516,927
48,176,558
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
18,480,877
23,588,514
Europe
37,036,050
24,588,044
55,516,927
48,176,558
2024
2023
£
£
Other revenue
Interest income
239
1,482
MANE CONTRACT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 18 -
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Management
8
8
Administration
51
43
Total
59
51
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,651,350
3,093,055
Social security costs
488,404
424,811
Pension costs
61,055
59,328
4,200,809
3,577,194
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
322,737
368,020
Company pension contributions to defined contribution schemes
19,360
19,360
342,097
387,380
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
215,791
206,047
Company pension contributions to defined contribution schemes
1,360
1,360
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
239
1,482
MANE CONTRACT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
6
Interest receivable and similar income
(Continued)
- 19 -
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
239
1,482
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on invoice finance arrangements
356,133
244,394
Other finance costs:
Other interest
4,627
5,369
360,760
249,763
8
Amounts written off investments
2024
2023
£
£
Amounts written off current loans
(160,358)
-
The loan to the company's subsidiary undertaking has been fully provided against due to the subsidiary undertaking now being dormant for the foreseeable future.
9
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
194,489
3,907
Fees payable to the company's auditor for the audit of the company's financial statements
14,500
14,000
Depreciation of owned tangible fixed assets
53,704
63,101
Operating lease charges
300,437
250,320
10
Dividends
2024
2023
£
£
Interim paid
174,333
132,886
MANE CONTRACT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
223,001
262,518
Adjustments in respect of prior periods
(17,892)
Total current tax
205,109
262,518
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
693,577
1,167,070
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.50%)
173,394
250,920
Tax effect of expenses that are not deductible in determining taxable profit
41,942
17,067
Adjustments in respect of prior years
(17,892)
Effect of change in corporation tax rate
(10,356)
Permanent capital allowances in excess of depreciation
7,665
4,887
Taxation charge for the year
205,109
262,518
12
Tangible fixed assets
Land and buildings Leasehold
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 September 2023
342,696
165,939
8,000
516,635
Additions
13,033
13,033
At 31 August 2024
342,696
178,972
8,000
529,668
Depreciation and impairment
At 1 September 2023
167,294
129,532
89
296,915
Depreciation charged in the year
34,269
18,368
1,067
53,704
At 31 August 2024
201,563
147,900
1,156
350,619
Carrying amount
At 31 August 2024
141,133
31,072
6,844
179,049
At 31 August 2023
175,402
36,407
7,911
219,720
MANE CONTRACT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
13
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
14
100
100
14
Subsidiaries
Separate company financial statements are required to be prepared by law.
Details of the company's subsidiaries at 31 August 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Socium Total Talent Management Limited
England
Ordinary shares
100.00
Investments in subsidiaries are recorded at cost.
The registered office of each of the above named companies is as follows:
3rd Floor 6 Hercules Way, Watford, Hertfordshire, United Kingdom, WD25 7GS.
15
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
9,117,683
9,333,784
Carrying amount of financial liabilities
Measured at amortised cost
6,605,226
7,444,733
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
7,974,634
8,735,313
Corporation tax recoverable
127,484
175,435
Amounts owed by group undertakings
160,358
Other debtors
1,298,311
386,096
Prepayments and accrued income
160,365
129,576
9,560,794
9,586,778
MANE CONTRACT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
16
Debtors
(Continued)
- 22 -
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
52,796
52,017
Deferred tax asset (note 19)
5,006
5,006
57,802
57,023
Total debtors
9,618,596
9,643,801
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
18
125,000
Trade creditors
151,766
219,171
Corporation tax
223,001
189,215
Other taxation and social security
170,234
519,644
Other creditors
5,079,894
6,340,225
Accruals and deferred income
1,373,566
760,337
6,998,461
8,153,592
Included in other creditors is £5,064,445 (2023: £5,453,210) for commercial finance facilities. The liability is secured by fixed and floating charges, alongside a negative pledge on all undertakings of the company.
18
Loans and overdrafts
2024
2023
£
£
Bank loans
125,000
Payable within one year
125,000
The loan facility taken on by Mane Contract Services Limited is a CBIL loan facility which was drawn down in February 2021.The loan is repayable over 8 equal quarters starting 12 months after the initial draw down. Interest is charged on a floating rate basis and will be charged at a rate not below 3.95%.
MANE CONTRACT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 23 -
19
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Assets
Assets
2024
2023
Balances:
£
£
ACAs
5,006
5,006
There were no deferred tax movements in the year.
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
61,055
59,328
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.
21
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
298,620 Ordinary shares of £1 each
315,206
298,620
During the year £1 ordinary shares were allotted totalling £16,586.
22
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
2,315,355
1,543,689
Profit for the year
488,468
904,552
Dividends declared and paid in the year
(174,333)
(132,886)
At the end of the year
2,629,490
2,315,355
MANE CONTRACT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 24 -
23
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
304,447
312,527
Between two and five years
678,635
949,565
983,082
1,262,092
24
Related party transactions
The company has taken advantage of FRS 102 section 33.1A to not disclose transactions entered into between two or more members of a group, provided that any subsidiary which is party to the transaction is wholly owned by such a member.
25
Directors' transactions
The company has granted loan facilities to the directors of the company which were interest free and have no fixed term repayment period. The analysis of the loans are shown below:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
L Pacelli -
-
349,397
107,293
(90,000)
366,690
349,397
107,293
(90,000)
366,690
26
Ultimate controlling party
The ultimate controlling party is L Pacelli by virtue of his shareholding and voting rights.
MANE CONTRACT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 25 -
27
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
488,468
904,552
Adjustments for:
Taxation charged
205,109
262,518
Finance costs
360,760
249,763
Investment income
(239)
(1,482)
Depreciation and impairment of tangible fixed assets
53,704
63,101
Other gains and losses
160,358
-
Movements in working capital:
Increase in debtors
(5,453)
(1,770,520)
(Decrease)/increase in creditors
(1,063,917)
1,028,537
Cash generated from operations
198,790
736,469
28
Analysis of changes in net funds
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
1,012,104
(758,534)
253,570
Borrowings excluding overdrafts
(125,000)
125,000
-
887,104
(633,534)
253,570
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