Company registration number 02115676 (England and Wales)
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
COMPANY INFORMATION
Directors
Mr S Hart
Mr PJ Ponton
Mr MA Trett
Mr WC Palmer
Secretary
Mr S Hart
Company number
02115676
Registered office
Ground Floor Block A & B , Portland House
New Bridge Street West
Newcastle upon Tyne
Tyne and Wear
NE1 8AP
Auditor
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
Review of the business
Central Employment Agency (North East) Limited has been operating for over 40 years, providing recruitment and workforce solutions across the North East and beyond. The company has built a reputation for reliability, professionalism, and long-standing partnerships—many of which span decades—with major blue-chip clients.
In 2024, the business continued to operate in a competitive and evolving recruitment market. Despite macroeconomic headwinds—including persistent inflationary pressures—the company maintained stable revenues and continued to invest in operational efficiency and long-term growth.
The integration of the Recruitment, Permanent, and Training divisions into Portland House has enhanced collaboration, streamlined operations, and created a scalable platform for future expansion.
- Sales: £24.76m (2023: £24.90m)
- Gross Profit: £3.79m (2023: £4.149m)
- Net Profit (pre-dividends): £608,397 (2023: £933,285)
- Gross Margin: 15.31% (2023: 16.62%)
Principal risks and uncertainties
The UK economic environment remains uncertain, with inflation and interest rates continuing to impact operational costs and client confidence. From April 2025, the planned increase in employer National Insurance contributions will introduce additional cost pressures across the employment sector.
While this change will require thoughtful workforce planning, Central Employment Agency (North East) Limited remains committed to growing its internal team. The company is making a significant investment in expanding its permanent recruitment headcount to support long-term growth, client delivery, and strategic capability.
The company continues to work closely with clients to manage cost implications. In the temporary staffing division, the increased NI burden is largely being absorbed by clients, allowing the business to maintain competitiveness and service continuity.
To support liquidity and strategic investment, the company has secured an increased finance facility with its long-standing funding provider. This enhanced facility, launching in January 2025, will provide greater working capital flexibility, enabling the business to respond more effectively to market opportunities, invest in technology, and support geographic expansion. It complements existing invoice discounting arrangements and reflects the company’s prudent financial planning and strong credit profile.
Cybersecurity remains a key focus, with continued investment in IT infrastructure and regular reviews with technology partners to mitigate risks.
Development and performance
- Newcastle Division: Sales of £20.86m. The division faced challenges due to high central overheads and restructuring. A comprehensive review of cost allocation and operational efficiency is underway.
- Teesside Division: Sales increased by 26% to £3.29m, supported by a major new contract with an international manufacturing client.
- Training Division: Revenue reached £607,705, driven by strong performance across commercial and funded programmes. A new digital training platform is scheduled for launch in January 2025, with further investment planned in AI-driven learning tools.
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Key performance indicators
- Sales and overheads remained broadly in line with expectations.
- Capital investment focused on digital infrastructure and office integration.
Strategic Priorities
The company remains focused on delivering sustainable growth through a combination of geographic expansion, digital innovation, and talent development. Key priorities for the coming year include:
- Expanding operations beyond the North East to access new markets.
- Enhancing profitability through disciplined cost control and operational efficiency.
- Scaling the Training Division with a strategy centred on commercial training offerings, reducing reliance on government-funded programmes.
- Investing in internal talent through structured development, hiring more experienced staff, and retention strategies.
- Deploying AI-driven solutions to streamline operations, enhance internal workflows, and prepare the business for its next stage of growth.
These initiatives are underpinned by a commitment to long-term client partnerships, innovation, and a high-performance culture.
Disabled Employees
The company is committed to fostering an inclusive and accessible workplace. We do not discriminate against job applicants or employees on the grounds of disability. All recruitment, training, and promotion decisions are based on merit and ability.
We actively support employees with disabilities by making reasonable adjustments to the workplace and working practices. This includes accessible facilities, flexible working arrangements, and tailored support to ensure individuals can thrive in their roles.
Our policies are designed to promote dignity, respect, and equal opportunity at every stage of employment. We continue to review and improve our practices to ensure that all employees, regardless of ability, are supported in achieving their full potential.
Mr WC Palmer
Director
25 June 2025
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company in the year under review was that of an employment agency.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £756,250. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr S Hart
Mr PJ Ponton
Mr MA Trett
Mr WC Palmer
Auditor
The auditors, Robson Laidler Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting
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; and
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.
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.
Equality Statement
The company has achieved the Equality Standard which is an independently verified national standard to help employers promote equality in the workplace.
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr WC Palmer
Director
25 June 2025
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
- 5 -
Opinion
We have audited the financial statements of Central Employment Agency (North East) Limited (the 'company') for the year ended 30 September 2024 which comprise 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 30 September 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.
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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.
The risk of material misstatement due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit by performing systems walkthroughs to ensure they are operating effectively. Other substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant. Manual journal entries are scrutinised by data analytics software used as part of the audit.
The laws and regulations which are considered to be significant to the entity relate to health and safety. Discussions are held with management to determine whether any breaches have occurred as well as legal expenditure being scrutinised for any evidence on non-compliance.
The audit was considered capable of identifying irregularities only to the extent of the substantive testing performed and from discussions with management.
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.
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED (CONTINUED)
- 7 -
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.
Michael T Moran BA FCA (Senior Statutory Auditor)
For and on behalf of Robson Laidler Accountants Limited, Statutory Auditor
Accountants
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
NE2 1TJ
England
26 June 2025
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
24,756,204
24,964,634
Cost of sales
(20,964,575)
(20,816,101)
Gross profit
3,791,629
4,148,533
Administrative expenses
(3,222,407)
(3,229,820)
Other operating income
264,771
204,114
Operating profit
4
833,993
1,122,827
Interest receivable and similar income
7
3
101
Interest payable and similar expenses
8
(225,599)
(189,643)
Profit before taxation
608,397
933,285
Tax on profit
9
(189,748)
(227,679)
Profit for the financial year
418,649
705,606
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
81,468
58,694
Current assets
Debtors
12
6,002,492
6,358,805
Cash at bank and in hand
68,060
45,736
6,070,552
6,404,541
Creditors: amounts falling due within one year
13
(5,561,038)
(5,555,770)
Net current assets
509,514
848,771
Total assets less current liabilities
590,982
907,465
Creditors: amounts falling due after more than one year
14
(14,670)
-
Provisions for liabilities
Deferred tax liability
17
19,610
13,162
(19,610)
(13,162)
Net assets
556,702
894,303
Capital and reserves
Called up share capital
19
450,000
450,000
Profit and loss reserves
20
106,702
444,303
Total equity
556,702
894,303
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 25 June 2025 and are signed on its behalf by:
Mr WC Palmer
Director
Company registration number 02115676 (England and Wales)
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
450,000
1,186,197
1,636,197
Year ended 30 September 2023:
Profit and total comprehensive income
-
705,606
705,606
Dividends
10
-
(1,447,500)
(1,447,500)
Balance at 30 September 2023
450,000
444,303
894,303
Year ended 30 September 2024:
Profit and total comprehensive income
-
418,649
418,649
Dividends
10
-
(756,250)
(756,250)
Balance at 30 September 2024
450,000
106,702
556,702
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,479,834
792,055
Interest paid
(225,599)
(189,643)
Income taxes paid
(235,058)
(344,430)
Net cash inflow from operating activities
1,019,177
257,982
Investing activities
Purchase of tangible fixed assets
(58,466)
(20,655)
Proceeds from disposal of tangible fixed assets
3,542
(1)
Interest received
3
101
Net cash used in investing activities
(54,921)
(20,555)
Financing activities
Repayment of borrowings
(213,894)
984,682
Payment of finance leases obligations
28,212
Dividends paid
(756,250)
(1,447,500)
Net cash used in financing activities
(941,932)
(462,818)
Net increase/(decrease) in cash and cash equivalents
22,324
(225,391)
Cash and cash equivalents at beginning of year
45,736
271,127
Cash and cash equivalents at end of year
68,060
45,736
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
1
Accounting policies
Company information
Central Employment Agency (North East) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ground Floor Block A & B , Portland House, New Bridge Street West, Newcastle upon Tyne, Tyne and Wear, NE1 8AP.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention.
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.
1.3
Turnover
Turnover represents net invoiced sales of services, excluding value added tax. The services provided are that of processing payroll, providing agency workers to various companies and recruitment fees.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
25% straight line and 15% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
Property, plant and equipment are reviewed for impairment if events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared against its carrying amount. Where the estimated recoverable amount is lower, an impairment loss is recognised immediately in profit and loss.
1.6
Cash and cash equivalents
Cash and cash equivalents comprises cash in hand and current balances with banks and other institutions, which are readily convertible to known amounts of cash and which are subject to insignificant risk of change in value.
1.7
Financial instruments
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
Current or deferred taxation assets and liabilities are not discounted.
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Current tax
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.
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.
1.9
Retirement benefits
The company operates a defined contribution scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.
1.10
Leases
As lessee
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.11
Government grants
During the current and previous year the company received government grant funding in relation to Education and Skills schemes.
This income has been accounted for in the period in which it relates on an accruals basis.
1.12
Short term debtors and creditors
Debtors and creditors with no interest rate which are receivable or payable within one year are recorded at transaction price. Any loss arising from impairment are recognised immediately in profit and loss.
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
2
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements. If, in the future, such estimates and assumptions, which are based on management's best judgement at the date of the financial statements, deviate from the actual circumstances, the original estimates and judgements will be modified as appropriate in the year in which the circumstances change.
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:
Estimated holiday pay provisions.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of services
24,756,204
24,964,634
2024
2023
£
£
Other revenue
Interest income
3
101
Royalty income
243,906
177,639
Grants received
-
3,000
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(3,000)
Fees payable to the company's auditor for the audit of the company's financial statements
7,870
9,040
Depreciation of owned tangible fixed assets
31,894
26,778
Loss on disposal of tangible fixed assets
256
24,723
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administrative staff
49
47
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
5
Employees
(Continued)
- 16 -
Their aggregate remuneration including those employed under contracts of employment as well as contracts for service comprised:
2024
2023
£
£
Wages and salaries
10,994,930
11,207,800
Social security costs
1,012,637
1,041,431
Pension costs
146,237
139,807
12,153,804
12,389,038
We include in staff numbers those employed under a contract of employment.
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
80,406
71,626
Company pension contributions to defined contribution schemes
600
1,940
81,006
73,566
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
3
101
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
3
101
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on invoice finance arrangements
222,228
189,643
Other finance costs:
Interest on finance leases and hire purchase contracts
3,371
-
225,599
189,643
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
183,300
235,058
Deferred tax
Origination and reversal of timing differences
6,448
(7,379)
Total tax charge
189,748
227,679
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
608,397
933,285
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
152,099
205,323
Tax effect of expenses that are not deductible in determining taxable profit
38,804
23,307
Group relief
(793)
Permanent capital allowances in excess of depreciation
(6,810)
6,340
Deferred tax adjustments in respect of prior years
6,448
(7,379)
Tax at marginal rate
88
Taxation charge for the year
189,748
227,679
10
Dividends
2024
2023
£
£
Interim paid
756,250
1,447,500
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
11
Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 October 2023
137,249
Additions
58,466
Disposals
(12,491)
At 30 September 2024
183,224
Depreciation and impairment
At 1 October 2023
78,555
Depreciation charged in the year
31,894
Eliminated in respect of disposals
(8,693)
At 30 September 2024
101,756
Carrying amount
At 30 September 2024
81,468
At 30 September 2023
58,694
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
5,022,850
5,351,839
Amounts owed by group undertakings
780,812
778,812
Other debtors
2,303
5,488
Prepayments and accrued income
175,267
201,406
5,981,232
6,337,545
2024
2023
Amounts falling due after more than one year:
£
£
Gross amounts owed by contract customers
21,260
21,260
Total debtors
6,002,492
6,358,805
The amount of factored debts included in the above figure is £4,208,587.
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
16
13,542
Other borrowings
15
3,524,210
3,738,104
Trade creditors
141,742
128,913
Corporation tax
183,300
235,058
Other taxation and social security
611,949
864,106
Other creditors
199,940
Accruals and deferred income
886,355
589,589
5,561,038
5,555,770
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
16
14,670
15
Loans and overdrafts
2024
2023
£
£
Other loans
3,524,210
3,738,104
Payable within one year
3,524,210
3,738,104
The factoring account is secured against the debtors ledger of the company.
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
13,542
In two to five years
14,670
28,212
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
19,610
13,162
2024
Movements in the year:
£
Liability at 1 October 2023
13,162
Charge to profit or loss
6,448
Liability at 30 September 2024
19,610
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
146,237
139,807
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
"A" Ordinary shares of £1 each
95,000
95,000
95,000
95,000
"B" Ordinary shares of £1 each
5,000
5,000
5,000
5,000
Deferred shares of £1 each
350,000
350,000
350,000
350,000
450,000
450,000
450,000
450,000
20
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
444,303
1,186,197
Adjusted balance
444,303
1,186,197
Profit for the year
418,649
705,606
Dividends declared and paid in the year
(756,250)
(1,447,500)
At the end of the year
106,702
444,303
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
21
Operating lease commitments
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 1 year
413,209
344,441
Years 2-5
1,007,905
1,231,783
1,421,114
1,576,224
22
Ultimate controlling party
The company is under the control of Decadeon Holdings Limited, a company incorporated in the UK. The registered office is 34/36 St Mary's Place, Newcastle upon Tyne.
23
Related party disclosures
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
24
Cash generated from operations
2024
2023
£
£
Profit after taxation
418,649
705,606
Adjustments for:
Taxation charged
189,748
227,679
Finance costs
225,599
189,643
Investment income
(3)
(101)
Loss on disposal of tangible fixed assets
256
24,723
Depreciation and impairment of tangible fixed assets
31,894
26,778
Movements in working capital:
Decrease/(increase) in debtors
356,313
(336,638)
Increase/(decrease) in creditors
257,378
(45,635)
Cash generated from operations
1,479,834
792,055
CENTRAL EMPLOYMENT AGENCY (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
25
Analysis of changes in net debt
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
45,736
22,324
68,060
Borrowings excluding overdrafts
(3,738,104)
213,894
(3,524,210)
Lease liabilities
-
(28,212)
(28,212)
(3,692,368)
208,006
(3,484,362)
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