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COMPANY REGISTRATION NUMBER: 10332357
Blue Garnet Management Services Limited
Financial Statements
30 March 2024
Blue Garnet Management Services Limited
Financial Statements
Year ended 30 March 2024
Contents
Page
Strategic report
1
Directors' report
3
Independent auditor's report to the members
5
Consolidated income statement
9
Consolidated statement of financial position
10
Company statement of financial position
11
Consolidated statement of changes in equity
12
Company statement of changes in equity
13
Consolidated statement of cash flows
14
Notes to the financial statements
15
Blue Garnet Management Services Limited
Strategic Report
Year ended 30 March 2024
The directors present their strategic report for the year ended 30 March 2024. Blue Garnet Management Services Limited is the parent of the Blue Garnet Group (the 'Group'). It provides services for the UK’s flexible workforce, supporting contractors, freelancers, recruitment agencies, and end hirers. The main subsidiaries within the Group are Apex Europe Limited and Emerald Sales Limited. Apex Europe's principal activity is Umbrella Payroll services which is fully compliant with SDC legislation. Emerald Sales deals with all Construction Industry Self Employed individuals.
Review of business
Turnover has decreased to £11,389,044 from £24,136,791 a decrease of £12,747,747 which represents a 53% year on year decrease. The Group is actively pursuing further accreditations, and once achieved, it anticipates a strong rebound in turnover. This is likely to restore revenues to previous levels and unlock exciting opportunities for further growth and expansion with its well-established client relationships which have been strengthened further during the year through our focus on robust compliance and efficient processes, will play a key role in this upward trajectory. We are also making significant investments in our onboarding and processing software to enhance operational efficiency. With a strong pipeline of new business heading into the next financial year, the outlook remains positive. Additionally, a series of internal promotions have elevated highly skilled and experienced team members to senior roles, reinforcing our leadership strength and positioning the Group for sustained success.
Principal risks and uncertainties
This area is influenced by legislative changes, with the primary risks being shifts in government policies and their impact on regulations, as well as potential changes to employment law and agency worker regulations. The Group maintains a very low credit and price risk, as its business model ensures that funds are received upfront, eliminating exposure to external debtors. There is an unsecured intercompany debtor related to an associated non-Group entity. While interest is charged on this loan, it is considered fully recoverable due to the strength of the other assets held by the associated company. To manage financial risk, the Group closely monitors cash flow to ensure it can meet all foreseeable debts as they become due. The directors acknowledge the significance of the group's environmental responsibilities. The group actively monitors its environmental impact and develops and implements policies to reduce any negative effects of its operations. These initiatives include promoting recycling and reducing energy consumption. To further minimize its carbon footprint, the group prioritises electronic communication whenever possible.
This report was approved by the board of directors on 25 March 2025 and signed on behalf of the board by:
Miss L McLachlan
Director
Registered office:
Old Hall Farm
19 Barnston Lane
Moreton
Wirral
CH46 7TN
Blue Garnet Management Services Limited
Directors' Report
Year ended 30 March 2024
The directors present their report and the financial statements of the group for the year ended 30 March 2024 .
Directors
The directors who served the company during the year were as follows:
Mr L McLachlan
Miss L McLachlan
Dividends
Particulars of recommended dividends are detailed in note 11 to the financial statements.
Employment of disabled persons
The group is committed to promoting equal employment opportunities and fully considers applications from disabled persons, taking into account each applicant’s skills and abilities. The group's policy ensures that training and career development opportunities for disabled employees are equivalent to those available to all other staff. In the event that an employee becomes disabled, the group makes every possible effort to facilitate their continued employment by providing appropriate training and support.
Employee involvement
The group is dedicated to maintaining open communication with its employees on matters that may impact their interests. This is achieved through regular engagement with unions, staff councils, and meetings. The group also strives to keep all employees informed about financial and economic factors influencing its performance. This is accomplished by sharing information about training programs and other significant developments.
Directors' responsibilities statement
The directors are responsible for preparing the directors' report and the financial statements in accordance with applicable law and regulations. Under Companies Act 2006 the directors are required 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). The directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the company financial position and performance 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 judgments 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. Auditor
Each director at the date of approval of this report confirms that: - to the best of their knowledge, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all necessary steps to ensure they are aware of any relevant audit information and to establish that the company's auditor is informed of such information.
This report was approved by the board of directors on 25 March 2025 and signed on behalf of the board by:
Miss L McLachlan
Director
Registered office:
Old Hall Farm
19 Barnston Lane
Moreton
Wirral
CH46 7TN
Blue Garnet Management Services Limited
Independent Auditor's Report to the Members of Blue Garnet Management Services Limited
Year ended 30 March 2024
Qualified opinion
We have audited the financial statements of Blue Garnet Management Services Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 March 2024 which comprise the consolidated income statement, consolidated statement of financial position, company statement of financial position, consolidated statement of changes in equity, company statement of changes in equity, consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, except for the effects of the matter described in the basis for qualified opinion section of our report, the financial statements: - give a true and fair view of the state of the group's and of the parent company's affairs as at 30 March 2024 and of the group's loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for qualified opinion
As described in note 20 to the financial statements, Emerald Sales Limited is facing a potential VAT penalty, as yet to be determined, which could range in value between £nil and £1.09m. Although a penalty of nil or something towards the lower end of this scale is more likely, given the uncertainty involved and the lack of audit evidence available we have qualified our audit opinion due the inherent limitation in scope of our audit work in respect of this matter.
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 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 qualified opinion.
Conclusions relating to going concern
We draw attention to note 3 in the financial statements, which describes the effect of reduced turnover in the year ended 30 March 2024 continuing into the new accounting period, and a potentially material contingent liability.
As stated in note 3, these events or conditions, along with the other matters as set forth in note 20, indicate that a material uncertainty exists that may cast significant doubt on the group's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent 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 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 group's and 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 group or 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. 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: - We ascertained what financial controls are in place to prevent loss or misappropriation of the group's assets, reached conclusions on their adequacy, and observed them in operation. - Based on the above we assessed the risk that the accounts could be misstated due to irregularities, and selected appropriately sized samples of transactions to verify through detailed testing. - Sample sizes were such that we would expect to have a reasonable expectation of discovering material misstatements. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
A D French
(Senior Statutory Auditor)
For and on behalf of
Hailwood & Co.
Chartered accountants & statutory auditor
392-394 Hoylake Road
Moreton
Wirral
CH46 6DF
25 March 2025
Blue Garnet Management Services Limited
Consolidated Income Statement
Year ended 30 March 2024
2024
2023
Note
£
£
Turnover
4
11,389,044
24,136,791
Cost of sales
( 11,231,872)
( 22,456,029)
-------------
-------------
Gross profit
157,172
1,680,762
Administrative expenses
( 206,864)
( 1,626,352)
---------
------------
Operating (loss)/profit
5
( 49,692)
54,410
Other interest receivable and similar income
8
144
2,162
Interest payable and similar expenses
9
( 19,232)
( 3,305)
---------
------------
(Loss)/profit before taxation
( 68,780)
53,267
Tax on (loss)/profit
10
( 10,494)
--------
--------
(Loss)/profit for the financial year
( 68,780)
42,773
--------
--------
All the activities of the group are from continuing operations.
The group has no other recognised items of income and expenses other than the results for the year as set out above.
Blue Garnet Management Services Limited
Consolidated Statement of Financial Position
30 March 2024
2024
2023
Note
£
£
Current assets
Debtors
14
2,223,048
1,773,640
Cash at bank and in hand
204,086
273,419
------------
------------
2,427,134
2,047,059
Creditors: amounts falling due within one year
15
( 2,289,924)
( 1,731,351)
------------
------------
Net current assets
137,210
315,708
---------
---------
Total assets less current liabilities
137,210
315,708
Creditors: amounts falling due after more than one year
16
( 29,505)
( 49,223)
---------
---------
Net assets
107,705
266,485
---------
---------
Capital and reserves
Called up share capital
18
353
353
Profit and loss account
19
107,352
266,132
---------
---------
Shareholders funds
107,705
266,485
---------
---------
These financial statements were approved by the board of directors and authorised for issue on 25 March 2025 , and are signed on behalf of the board by:
Miss L McLachlan
Director
Company registration number: 10332357
Blue Garnet Management Services Limited
Company Statement of Financial Position
30 March 2024
2024
2023
Note
£
£
Fixed assets
Investments
13
958,470
958,470
Current assets
Debtors
14
351,296
286,605
Cash at bank and in hand
490
3,154
---------
---------
351,786
289,759
Creditors: amounts falling due within one year
15
( 335,955)
( 262,255)
---------
---------
Net current assets
15,831
27,504
---------
---------
Total assets less current liabilities
974,301
985,974
Creditors: amounts falling due after more than one year
16
( 13,676)
( 23,427)
---------
---------
Net assets
960,625
962,547
---------
---------
Capital and reserves
Called up share capital
18
353
353
Share premium account
19
499,647
499,647
Other reserves, including the fair value reserve
19
458,470
458,470
Profit and loss account
19
2,155
4,077
---------
---------
Shareholders funds
960,625
962,547
---------
---------
The profit for the financial year of the parent company was £ 88,078 (2023: £ 51,389 ).
These financial statements were approved by the board of directors and authorised for issue on 25 March 2025 , and are signed on behalf of the board by:
Miss L McLachlan
Director
Company registration number: 10332357
Blue Garnet Management Services Limited
Consolidated Statement of Changes in Equity
Year ended 30 March 2024
Called up share capital
Profit and loss account
Total
£
£
£
At 4 April 2022
353
320,825
321,178
Profit for the year
42,773
42,773
----
---------
---------
Total comprehensive income for the year
42,773
42,773
Dividends paid and payable
11
( 97,466)
( 97,466)
----
---------
---------
Total investments by and distributions to owners
( 97,466)
( 97,466)
At 1 April 2023
353
266,132
266,485
Loss for the year
( 68,780)
( 68,780)
----
---------
---------
Total comprehensive income for the year
( 68,780)
( 68,780)
Dividends paid and payable
11
( 90,000)
( 90,000)
----
--------
--------
Total investments by and distributions to owners
( 90,000)
( 90,000)
----
---------
---------
At 30 March 2024
353
107,352
107,705
----
---------
---------
Blue Garnet Management Services Limited
Company Statement of Changes in Equity
Year ended 30 March 2024
Called up share capital
Share premium account
Other reserves, including the fair value reserve
Profit and loss account
Total
£
£
£
£
£
At 4 April 2022
353
499,647
458,470
50,154
1,008,624
Profit for the year
51,389
51,389
----
---------
---------
--------
------------
Total comprehensive income for the year
51,389
51,389
Dividends paid and payable
11
( 97,466)
( 97,466)
----
---------
---------
--------
------------
Total investments by and distributions to owners
( 97,466)
( 97,466)
At 1 April 2023
353
499,647
458,470
4,077
962,547
Profit for the year
88,078
88,078
----
---------
---------
--------
------------
Total comprehensive income for the year
88,078
88,078
Dividends paid and payable
11
( 90,000)
( 90,000)
----
----
----
--------
--------
Total investments by and distributions to owners
( 90,000)
( 90,000)
----
---------
---------
--------
---------
At 30 March 2024
353
499,647
458,470
2,155
960,625
----
---------
---------
--------
---------
Blue Garnet Management Services Limited
Consolidated Statement of Cash Flows
Year ended 30 March 2024
2024
2023
£
£
Cash flows from operating activities
(Loss)/profit for the financial year
( 68,780)
42,773
Adjustments for:
Depreciation of tangible assets
1,967
Other interest receivable and similar income
( 144)
( 2,162)
Interest payable and similar expenses
19,232
3,305
Tax on profit
10,494
Accrued expenses/(income)
55,809
( 437,038)
Changes in:
Trade and other debtors
( 490,647)
244,977
Trade and other creditors
539,958
61,924
---------
---------
Cash generated from operations
55,428
( 73,760)
Interest paid
( 19,232)
( 3,305)
Interest received
144
2,162
Tax received/(paid)
4,387
( 9,418)
--------
--------
Net cash from/(used in) operating activities
40,727
( 84,321)
--------
--------
Cash flows from financing activities
Proceeds from borrowings
( 19,960)
( 19,960)
Proceeds from loans from group undertakings
( 100)
Dividends paid
( 90,000)
( 97,466)
---------
---------
Net cash used in financing activities
( 110,060)
( 117,426)
---------
---------
Net decrease in cash and cash equivalents
( 69,333)
( 201,747)
Cash and cash equivalents at beginning of year
273,419
475,166
---------
---------
Cash and cash equivalents at end of year
204,086
273,419
---------
---------
Blue Garnet Management Services Limited
Notes to the Financial Statements
Year ended 30 March 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Old Hall Farm, 19 Barnston Lane, Moreton, Wirral, CH46 7TN.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Valuation of investment
As describe in the accounting policies, investment in subsidiaries are recognised at fair value with changes in fair value recognised in other comprehensive income.
Going concern
The Directors have prepared the accounts using the going concern basis of accounting. Whilst they maintain that this basis remains appropriate, the company has undergone a planned change in its client base which saw numbers dropping in the year. They remained low until late 2024. Since then the trend has been upwards, however, this needs to continue in order for the company to return to profitability in 2025/26. The course of action described above has only been possible through a payment holiday being extended by the group's related service company Pearl Management Limited in respect of its management charges. Although the directors believe it to be unlikely, the situation disclosed in Note 20 could have an effect on the applicability of the going concern basis.
Debtor balances
The directors have made a judgement that a significant amount due from a connected party is recoverable.
Disclosure exemptions
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.
Consolidation
The effects of events in relation to the period ended 30 March 2024 which occurred before the date of approval of the financial statements by the Board of Directors, have been included in the statements to the extent required to show a true and fair view of the state of affairs at 30 March 2024 and of the results for the period ended on that date. The consolidated financial statements are prepared under the acquisition method and include the results of the company, its subsidiaries, and its share of associates profits, losses, assets, and liabilities. Adjustments are made to eliminate any inter-group transactions, balances, profits, and losses. On acquisition the assets and liabilities of a subsidiary are measured at fair value at the date of acquisition, any excess in value over the cost is recognised in the consolidate accounts as goodwill.
Judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily available from other sources. The estimates and underlying assumptions are based on experience and other factors considered to be relevant. Actual results may differ from these estimates. The key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described in the accounting policies.
Revenue recognition
The group turnover, derived from ordinary activities, represents net invoiced sales from the provision of personnel payment management services and holding company management fees and is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover is recognised as the service is provided. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current tax and deferred tax recognised in the reporting period. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax payable or recoverable using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the reporting date. Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. Current or deferred taxation assets and liabilities are not discounted. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery
-
33% straight line
Investments
Investments in subsidiaries are recognised at fair value with changes in fair value recognised in other comprehensive income in accordance with paragraph 17.15E and 17.15F.
All subsidiaries are owned 100% and included in the consolidation.
Financial instruments
Directors loans and intercompany loans (being repayable on demand), trade debtors and trade creditors are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2024
2023
£
£
Rendering of services
11,389,044
24,136,791
-------------
-------------
The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit or loss is stated after charging:
2024
2023
£
£
Depreciation of tangible assets
1,967
Impairment of trade debtors
325,304
----
---------
6. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
12,500
12,500
--------
--------
Fees payable to the company's auditor and its associates for other services:
Other non-audit services
9,560
9,560
--------
--------
7. Staff costs
The average number of persons employed by the group during the year, including the directors, amounted to:
2024
2023
No.
No.
Apex employees
260
275
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
4,260,631
9,661,687
Social security costs
466,786
1,046,864
Other pension costs
40,854
99,716
------------
-------------
4,768,271
10,808,267
------------
-------------
8. Other interest receivable and similar income
2024
2023
£
£
Interest on cash and cash equivalents
144
Other interest receivable and similar income
2,162
----
-------
144
2,162
----
-------
9. Interest payable and similar expenses
2024
2023
£
£
Interest on banks loans and overdrafts
1,548
2,042
Other interest payable and similar charges
17,684
1,263
--------
-------
19,232
3,305
--------
-------
10. Tax on profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
10,494
Tax on profit
10,494
----
--------
Reconciliation of tax expense
The tax assessed on the (loss)/profit on ordinary activities for the year is the same as (2023: lower than) the standard rate of corporation tax in the UK of 38 % (2023: 19 %).
2024
2023
£
£
(Loss)/profit on ordinary activities before taxation
( 68,780)
53,267
--------
--------
(Loss)/profit on ordinary activities by rate of tax
13,107
Effect of expenses not deductible for tax purposes
6,887
Income not taxable for tax purposes
(9,500)
--------
--------
Tax on profit
10,494
--------
--------
11. Dividends
2024
2023
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
90,000
97,466
--------
--------
12. Tangible assets
Group
Plant and machinery
£
Cost
At 2 April 2023 and 30 March 2024
5,900
-------
Depreciation
At 2 April 2023 and 30 March 2024
5,900
-------
Carrying amount
At 30 March 2024
-------
At 1 April 2023
-------
The company has no tangible assets.
13. Investments
The group has no investments.
Company
Shares in group undertakings
£
Cost
At 2 April 2023 and 30 March 2024
958,470
---------
Impairment
At 2 April 2023 and 30 March 2024
---------
Carrying amount
At 2 April 2023 and 30 March 2024
958,470
---------
At 1 April 2023
958,470
---------
Cost or valuation at 30 March 2024 is represented by:
Shares in group undertakings
£
Valuation in 2019
366,824
Valuation in 2020
(241,489)
Valuation in 2022
333,135
Cost
500,000
---------
958,470
---------
All subsidiaries registered offices are Old Farm Hall, Barnston Lane, Wirral, CH46 7TN.
Subsidiaries, associates and other investments
Details of the investments in which the parent company has an interest of 20% or more are as follows:
Class of share
Percentage of shares held
Subsidiary undertakings
Apex Europe Limited
Ordinary
100
Emerald Sales Limited
Ordinary
100
Jefferson O'Connor Limited
Ordinary
100
Apex Outsourcing Limited
Ordinary
100
Apex Payroll Solutions Limited
Ordinary
100
14. Debtors
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade debtors
9,367
17,791
Amounts owed by group undertakings
351,296
262,296
Prepayments and accrued income
158,379
301,845
Directors loan account
11,824
11,824
Other debtors
2,055,302
1,442,180
12,485
------------
------------
---------
---------
2,223,048
1,773,640
351,296
286,605
------------
------------
---------
---------
15. Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans and overdrafts
21,409
21,651
10,489
10,740
Trade creditors
8,283
19,297
Amounts owed to group undertakings
( 100)
Accruals and deferred income
35,640
21,070
11,880
5,940
Corporation tax
108,884
104,497
19,988
30,166
Social security and other taxes
2,114,361
1,561,602
Other creditors
1,447
3,234
293,598
215,409
------------
------------
---------
---------
2,289,924
1,731,351
335,955
262,255
------------
------------
---------
---------
16. Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans and overdrafts
29,505
49,223
13,676
23,427
--------
--------
--------
--------
17. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 40,854 (2023: £ 99,716 ).
18. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 0.01 each
26,475
265
26,475
265
Ordinary A shares of £ 0.01 each
8,825
88
8,825
88
--------
----
--------
----
35,300
353
35,300
353
--------
----
--------
----
19. Reserves
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Profit and loss account - This reserve records retained earnings and accumulated losses.
20. Provisions for liabilities and charges
The larger part of Creditors: Social security and other taxes, is a VAT error for Emerald Sales Limited notified by the directors to HM Revenue and Customs (HMRC) in December 2024. HMRC are yet to assess this additional VAT or negotiate a repayment plan.
The employee responsible for the error is no longer with the company and the circumstances which led to the mistake are unclear. Given that the directors voluntarily disclosed the error immediately upon discovery, they are hopeful that HMRC will not choose to impose penalties, and accordingly no provision for penalty costs has been made.
The penalties could vary between 0% and 30% of the error if it is deemed to be careless.
21. Analysis of changes in net debt
At 2 Apr 2023
Cash flows
At 30 Mar 2024
£
£
£
Cash at bank and in hand
273,419
(69,333)
204,086
Debt due within one year
(21,651)
342
(21,309)
Debt due after one year
(49,223)
19,718
(29,505)
---------
--------
---------
202,545
( 49,273)
153,272
---------
--------
---------
Blue Garnet Management Services Limited
Notes to the Financial Statements (continued)
Year ended 30 March 2024
22. Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company and its subsidiary undertakings:
2024
Balance brought forward
Advances/ (credits) to the directors
Amounts repaid
Balance outstanding
£
£
£
£
Mr L McLachlan
36,993
( 36,993)
Miss L McLachlan
( 25,169)
25,169
--------
--------
--------
----
11,824
25,169
( 36,993)
--------
--------
--------
----
2023
Balance brought forward
Advances/ (credits) to the directors
Amounts repaid
Balance outstanding
£
£
£
£
Mr L McLachlan
85,270
1,723
( 50,000)
36,993
Miss L McLachlan
21,857
440
( 47,466)
( 25,169)
---------
-------
--------
--------
107,127
2,163
( 97,466)
11,824
---------
-------
--------
--------
23. Related party transactions
Group
Entities with control, joint control, or significant influence over the entity:
2024 2023
£ £
Transaction value:
Management fees incurred 103,500
Balance owed by/(owed to):
Pearl Management Limited 2,540,984 1,991,585
Emerald Contor Limited 2,954 2,954
Company
During the period the company entered into the following transactions with related parties:
2024 2023
£ £
Balances owed by/(owed to)
Pearl Management Limited (299,872) (293,598)
24. Controlling party
The controlling party is Mr L McLachlan by virtue of his shareholding.