Company registration number 07121032 (England and Wales)
MK BUSINESS SUPPORT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
MK BUSINESS SUPPORT LIMITED
COMPANY INFORMATION
Director
Mr J R Penny
Company number
07121032
Registered office
41 Park Square North
Leeds
West Yorkshire
United Kingdom
LS1 2NP
Auditor
Sedulo Audit Limited
Statutory Auditor
St Paul's House
23 Park Square
Leeds
West Yorkshire
United Kingdom
LS1 2ND
MK BUSINESS SUPPORT LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Director's responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 33
MK BUSINESS SUPPORT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The director presents the strategic report for the year ended 31 December 2023.
Principal activities
The group operates primarily within the recruitment industry, focusing on the technology, construction, environmental, and finance sectors. Primary services include permanent and temporary recruitment but also some contract recruitment in the private and public sector.
Review of the business
During and immediately after the COVID pandemic the recruitment industry was particularly volatile. In 2023 we have observed stabilisation in market activity enabling the group to focus on core areas and plan for future years with an increased degree of certainty.
The group's shift towards contract recruitment and public sector engagements further diversified the group's operations.
During the year the group's focus was on increasing headcount and enhancing both the group's central functions and office environment so that productivity, staff morale and consultant retention would increase.
Principal risks and uncertainties
The principal risk for the group is in relation to changing legislation, including employment rights as a result of government policy. With a UK general election in 2024 this risk increased post year end following a relatively stable period. The group continues to ensure that, through its compliance department and regular training, changes such as increased National Insurance contributions or additional rights for workers are reflected in the group's pricing structure and terms of engagement.
Key performance indicators
Key financial performance indicators which are regularly reviewed by key management are turnover and gross profit percentage. Repeat business is the key non-financial key performance indicator.
2022 2023 % Change
Turnover 15,136,263 16,881,472 12%
Gross profit percentage 16% 19% 3%
Repeat business 56% 29% 27%
Turnover increased in 2023 by 12% through organic growth by consolidating our reputation within our key markets and also diversifying into contract recruitment.
A 3% increase in gross profit reflects the success of the group in being able to absorb increased contractor costs and improving internal efficiencies.
A 27% increase in repeat business reflects the success of the group in finding successful outcomes for its clients and nurturing strong business relationships with that client base.
MK BUSINESS SUPPORT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Mr J R Penny
Director
30 June 2025
MK BUSINESS SUPPORT LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The director presents his annual report and financial statements for the year ended 31 December 2023.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £45,126 (2022- £nil). The director does not recommend payment of a further dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr A M Penny
(Resigned 2 April 2024)
Mr J R Penny
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its director during the year. These provisions remain in force at the reporting date.
Financial instruments
Liquidity Risk
Despite the challenging economic conditions the group has ensured it has sufficient liquidity to ensure that sufficient funds are available for ongoing operations and future developments. The group's decision to enter into an invoice discounting arrangement has ensured consistent revenue streams thereby limiting bad debt exposure. The group also sublets currently unused office space which ensures both regular income and cash inflows..
Credit risk
Credit risk is mitigated through the use of an invoice discounting function. Notwithstanding this arrangements credit checks are run for significant customers.
Research and development
The group continues to enhance its internal CRM system to further aid client and candidate tracking.
Post reporting date events
There are no significant post balance sheet events that require disclosure within the financial statements.
Future developments
The group is committed to increase its focus on the public sector and contract recruitment sectors so that recurring revenue streams can be built. Through strategic recruitment and marketing the group will also look to target growth in the technology and environmental sectors as the Directors anticipate that these will be the areas of significant growth in the United Kingdom over the coming years. The group will also continue to invest in its in central functions and office upgrades to improve working conditions and staff retention by committing to support hybrid working.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
MK BUSINESS SUPPORT LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
Mr J R Penny
Director
30 June 2025
MK BUSINESS SUPPORT LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
MK BUSINESS SUPPORT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MK BUSINESS SUPPORT LIMITED
- 6 -
Opinion
We have audited the financial statements of MK Business Support Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2023 and of the group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the director's report have been prepared in accordance with applicable legal requirements.
MK BUSINESS SUPPORT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MK BUSINESS SUPPORT LIMITED
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept 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 director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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
The primary responsibility for the prevention and detection of fraud rests with directors and management, and we cannot be expected to detect non compliance with all laws and regulations.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our knowledge of the business and sector, enquiries of directors and management, and review of regulatory information and correspondence. We communicated identified laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
We discussed with directors and management the policies and procedures in place to ensure compliance with laws and regulations and otherwise prevent, deter and detect fraud.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws, and regulations identified as potentially having a material effect on the financial statements. Our procedures included review of financial statement information and testing of that information, enquiry of management and examinations of relevant documentation, analytical procedures to identify unusual or unexpected relationships that may indicate fraud, and procedures to address the risk of fraud through director or management override of controls.
A further description of our responsibilities for the audit of the financial statements is location on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.
MK BUSINESS SUPPORT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MK BUSINESS SUPPORT LIMITED
- 8 -
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.
Other matters which we are required to address
As the group was exempt from audit under section 476 of the Companies Act 2006 in the prior year we have not audited the corresponding amounts for that year.
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.
Sam Perkin (Senior Statutory Auditor)
For and on behalf of Sedulo Audit Limited, Statutory Auditor
Chartered Accountants
Statutory Auditor
St Paul's House
23 Park Square
Leeds
West Yorkshire
LS1 2ND
United Kingdom
30 June 2025
MK BUSINESS SUPPORT LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
16,881,472
15,136,263
Cost of sales
(13,706,189)
(12,710,877)
Gross profit
3,175,283
2,425,386
Administrative expenses
(3,180,606)
(2,419,075)
Other operating income
55,097
409,444
Operating profit
4
49,774
415,755
Interest receivable and similar income
8
118
Interest payable and similar expenses
9
(211,355)
(149,640)
(Loss)/profit before taxation
(161,581)
266,233
Tax on (loss)/profit
10
39,760
(21,208)
(Loss)/profit for the financial year
23
(121,821)
245,025
(Loss)/profit for the financial year is attributable to:
- Owners of the parent company
(168,939)
64,476
- Non-controlling interests
47,118
180,549
(121,821)
245,025
MK BUSINESS SUPPORT LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
£
£
(Loss)/profit for the year
(121,821)
245,025
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
Total comprehensive income for the year
(121,821)
245,025
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(168,939)
64,476
- Non-controlling interests
47,118
180,549
(121,821)
245,025
MK BUSINESS SUPPORT LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
47,445
98,122
Tangible assets
13
385,288
259,378
432,733
357,500
Current assets
Debtors
16
4,412,514
4,398,334
Cash at bank and in hand
30,335
308,126
4,442,849
4,706,460
Creditors: amounts falling due within one year
17
(4,731,193)
(4,428,738)
Net current (liabilities)/assets
(288,344)
277,722
Total assets less current liabilities
144,389
635,222
Creditors: amounts falling due after more than one year
18
(13,542)
(24,281)
Net assets
130,847
610,941
Capital and reserves
Called up share capital
22
106
105
Profit and loss reserves
23
336,783
550,848
Equity attributable to owners of the parent company
336,889
550,953
Non-controlling interests
(206,042)
59,988
Total equity
130,847
610,941
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 30 June 2025 and are signed on its behalf by:
30 June 2025
Mr J R Penny
Director
Company registration number 07121032 (England and Wales)
MK BUSINESS SUPPORT LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
47,445
98,122
Tangible assets
13
385,288
259,378
Investments
14
35
35
432,768
357,535
Current assets
Debtors
16
1,607,584
1,361,344
Cash at bank and in hand
12,703
56,398
1,620,287
1,417,742
Creditors: amounts falling due within one year
17
(2,034,434)
(1,333,400)
Net current (liabilities)/assets
(414,147)
84,342
Total assets less current liabilities
18,621
441,877
Creditors: amounts falling due after more than one year
18
(13,542)
(24,281)
Net assets
5,079
417,596
Capital and reserves
Called up share capital
22
106
105
Profit and loss reserves
23
4,973
417,491
Total equity
5,079
417,596
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £367,392 (2022 - £40,355 profit).
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 30 June 2025 and are signed on its behalf by:
30 June 2025
Mr J R Penny
Director
Company registration number 07121032 (England and Wales)
MK BUSINESS SUPPORT LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
105
463,133
463,238
10,759
473,997
Year ended 31 December 2022:
Profit and total comprehensive income
-
64,476
64,476
180,549
245,025
Dividends
11
-
23,239
23,239
(131,318)
(108,079)
Disposal of subsidiary
-
-
-
(2)
(2)
Balance at 31 December 2022
105
550,848
550,953
59,988
610,941
Year ended 31 December 2023:
Loss and total comprehensive income
-
(168,939)
(168,939)
47,118
(121,821)
Issue of share capital
22
1
-
1
-
1
Dividends
11
-
(45,126)
(45,126)
(313,149)
(358,275)
Acquisition of subsidiary
-
-
-
3
3
Balance at 31 December 2023
106
336,783
336,889
(206,042)
130,847
MK BUSINESS SUPPORT LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
105
369,136
369,241
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
40,355
40,355
Dividends
11
-
8,000
8,000
Balance at 31 December 2022
105
417,491
417,596
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
(367,392)
(367,392)
Issue of share capital
22
1
-
1
Dividends
11
-
(45,126)
(45,126)
Balance at 31 December 2023
106
4,973
5,079
MK BUSINESS SUPPORT LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
768,728
480,549
Interest paid
(211,355)
(149,640)
Income taxes (paid)/refunded
(102,827)
7,985
Net cash inflow from operating activities
454,546
338,894
Investing activities
Purchase of intangible assets
(658)
(32,642)
Proceeds from disposal of intangibles
20,450
-
Purchase of tangible fixed assets
(269,104)
(253,990)
Proceeds from disposal of tangible fixed assets
51,087
-
Repayment of loans
(153,212)
(307,241)
Interest received
118
Net cash used in investing activities
(351,437)
(593,755)
Financing activities
Proceeds from issue of shares
1
-
Repayment of bank loans
(35,739)
(59,193)
Dividends paid to equity shareholders
(45,126)
23,239
Dividends paid to non-controlling interests
(313,149)
(131,318)
Net cash used in financing activities
(394,013)
(167,272)
Net decrease in cash and cash equivalents
(290,904)
(422,133)
Cash and cash equivalents at beginning of year
308,126
730,261
Cash and cash equivalents at end of year
30,335
308,126
MK BUSINESS SUPPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information
MK Business Support Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 41 Park Square North, Leeds, West Yorkshire, United Kingdom, LS1 2NP.
The group consists of MK Business Support Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
MK BUSINESS SUPPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company MK Business Support Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
General economic factors impacted the group's trading performance in 2023 and trading conditions remained challenging after the balance sheet date. All group companies have continued to trade and meet their liabilities as they fall due following the balance sheet date with cash flow and trading projections being prepared which show that this is anticipated to remain the case for a period of at least 12 months from the date of these financial statements.
In addition to the above the Director has indicated his willingness, if necessary, to financially support both the company and the group should these entities require additional funding to meet their short or long term funding requirements. The Director therefore deems it appropriate to prepare both the individual company accounts and group accounts on the going concern basis.
MK BUSINESS SUPPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Software
20% on cost
Website
20% on cost
1.7
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:
Leasehold improvements
20% on cost
Fixtures and fittings
25% on cost
Computers
25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
MK BUSINESS SUPPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
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 group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
MK BUSINESS SUPPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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 group 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.
MK BUSINESS SUPPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
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 group's contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
MK BUSINESS SUPPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
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 leased asset are consumed.
1.17
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
MK BUSINESS SUPPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
The financial statements have been prepared on the going concern basis and this is the most significant area of judgement exercised by the Director. General economic factors impacted the group's trading performance in 2023 and trading conditions remained challenging after the balance sheet date.
All group companies have continued to trade and meet their liabilities as they fall due following the balance sheet date with cash flow and trading projections being prepared which show that this is anticipated to remain the case for a period of at least 12 months from the date of these financial statements.
In addition to the above the Director has indicated his willingness, if necessary, to financially support both the company and the group should these entities require additional funding to meet their short or long term funding requirements. The Director therefore deems it appropriate to prepare both the individual company accounts and group accounts on the going concern basis.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
16,881,472
15,136,263
2023
2022
£
£
Other revenue
Interest income
-
118
Grants received
1,500
6,500
MK BUSINESS SUPPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(1,500)
(6,500)
Depreciation of owned tangible fixed assets
92,107
2,682
Amortisation of intangible assets
17,773
1,501
Impairment of intangible assets
13,112
Operating lease charges
96,293
144,043
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
8,000
-
Audit of the financial statements of the company's subsidiaries
24,000
-
32,000
-
For other services
All other non-audit services
33,449
44,204
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
61
39
42
17
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,303,791
2,839,807
2,083,632
(250,573)
Social security costs
128,120
99,574
61,132
30,514
Pension costs
23,088
16,941
9,103
3,784
4,454,999
2,956,322
2,153,867
(216,275)
MK BUSINESS SUPPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
-
5,936
The company's Directors did not receive any remuneration from the company or its subsidiary undertakings in the year. No pension contributions were made on behalf of the Directors by the company or its subsidiary undertakings in the current or prior year.
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
118
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
211,355
149,640
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
40,627
Adjustments in respect of prior periods
(39,760)
(19,419)
Total current tax
(39,760)
21,208
The March 2021 Budget announced an increase in the corporation tax rate to 25% (from 19%) with effect from 1 April 2023 which was substantively enacted in Finance Act 2021 on 24 May 2021. The Company's deferred tax balances are measured using the corporation tax rates that have been enacted or substantively enacted at the statement of financial position date, based on the periods in which the temporary differences are forecast to reverse (19% for deferred tax expected to reverse before 1 April 2023 and 25% for deferred tax expected to reverse on or after 1 April 2023).
MK BUSINESS SUPPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 26 -
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
(Loss)/profit before taxation
(161,581)
266,233
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
(37,972)
50,584
Tax effect of expenses that are not deductible in determining taxable profit
16,310
16,205
Tax effect of income not taxable in determining taxable profit
(258)
Unutilised tax losses carried forward
3,212
Adjustments in respect of prior years
(39,760)
20,622
Group relief
236
Permanent capital allowances in excess of depreciation
18,450
(58,309)
Trading losses brought forward utilised
(7,872)
Taxation (credit)/charge
(39,760)
21,208
11
Dividends
2023
2022
2023
2022
Recognised as distributions to equity holders:
Per share
Per share
Total
Total
£
£
£
£
Ordinary shares
Interim paid
45,126.00
(81.63)
45,126
(8,000)
Dividend postings in 2022 reflected corrections of misstatements in prior years.
MK BUSINESS SUPPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
12
Intangible fixed assets
Group
Software
Website
Total
£
£
£
Cost
At 1 January 2023
96,318
17,755
114,073
Additions
658
658
Disposals
(8,402)
(17,080)
(25,482)
At 31 December 2023
88,574
675
89,249
Amortisation and impairment
At 1 January 2023
10,885
5,066
15,951
Amortisation charged for the year
17,638
135
17,773
Adjustment to prior year charge
13,112
13,112
Disposals
(5,032)
(5,032)
At 31 December 2023
41,635
169
41,804
Carrying amount
At 31 December 2023
46,939
506
47,445
At 31 December 2022
85,433
12,689
98,122
Company
Software
Website
Total
£
£
£
Cost
At 1 January 2023
96,318
17,755
114,073
Additions
658
658
Disposals
(8,402)
(17,080)
(25,482)
At 31 December 2023
88,574
675
89,249
Amortisation and impairment
At 1 January 2023
10,885
5,066
15,951
Amortisation charged for the year
17,638
135
17,773
Impairment losses
13,112
13,112
Disposals
(5,032)
(5,032)
At 31 December 2023
41,635
169
41,804
Carrying amount
At 31 December 2023
46,939
506
47,445
At 31 December 2022
85,433
12,689
98,122
MK BUSINESS SUPPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
13
Tangible fixed assets
Group
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2023
228,894
37,485
4,246
270,625
Additions
258,087
10,007
1,010
269,104
Disposals
(23,304)
(30,189)
(373)
(53,866)
At 31 December 2023
463,677
17,303
4,883
485,863
Depreciation and impairment
At 1 January 2023
7,919
3,328
11,247
Depreciation charged in the year
88,959
2,512
636
92,107
Eliminated in respect of disposals
(2,801)
22
(2,779)
At 31 December 2023
88,959
7,630
3,986
100,575
Carrying amount
At 31 December 2023
374,718
9,673
897
385,288
At 31 December 2022
228,894
29,566
918
259,378
Company
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2023
228,894
37,485
4,246
270,625
Additions
258,087
10,007
1,010
269,104
Disposals
(23,304)
(30,189)
(373)
(53,866)
At 31 December 2023
463,677
17,303
4,883
485,863
Depreciation and impairment
At 1 January 2023
7,919
3,328
11,247
Depreciation charged in the year
88,959
2,512
636
92,107
Eliminated in respect of disposals
(2,801)
22
(2,779)
At 31 December 2023
88,959
7,630
3,986
100,575
Carrying amount
At 31 December 2023
374,718
9,673
897
385,288
At 31 December 2022
228,894
29,566
918
259,378
MK BUSINESS SUPPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
35
35
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
35
Carrying amount
At 31 December 2023
35
At 31 December 2022
35
15
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
MK Construction Recruitment Ltd
41 Park Square North, Leeds, England, LS1 2NP
Ordinary
76.19
MK Enviromental Recruitment Ltd
41 Park Square North, Leeds, England, LS1 2NP
Ordinary
99.90
MK Technology Recruitment Ltd
41 Park Square North, Leeds, England, LS1 2NP
Ordinary
90.00
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,443,814
3,431,286
1,014,193
721,593
Corporation tax recoverable
43,866
43,866
Amounts owed by group undertakings
-
-
-
156,584
Other debtors
754,563
729,959
399,628
314,958
Prepayments and accrued income
145,537
212,355
125,163
143,475
4,387,780
4,373,600
1,582,850
1,336,610
Deferred tax asset (note 20)
24,734
24,734
24,734
24,734
4,412,514
4,398,334
1,607,584
1,361,344
MK BUSINESS SUPPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Debtors
(Continued)
- 30 -
The group has sold £3,244,019 of trade debtors, with recourse, under an invoice discounting agreement.
Transactions with group companies are conducted at arms length with standard credit terms.
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
10,000
35,000
10,000
35,000
Trade creditors
968,277
1,051,391
366,965
488,863
Amounts owed to group undertakings
280,383
20,870
Corporation tax payable
99,651
198,372
98,991
97,542
Other taxation and social security
268,996
136,064
208,083
23,752
Other creditors
3,227,953
2,867,187
1,052,895
617,251
Accruals and deferred income
156,316
140,724
17,117
50,122
4,731,193
4,428,738
2,034,434
1,333,400
Other creditors include £2,786,219 under an invoice discounting agreement secured by way of a fixed and floating charge over all property and undertakings of the group.
Transactions with group companies are conducted at arms length with standard credit terms.
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
13,542
24,281
13,542
24,281
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
23,542
59,281
23,542
59,281
Payable within one year
10,000
35,000
10,000
35,000
Payable after one year
13,542
24,281
13,542
24,281
The company's bank borrowings are scheduled to be repaid by 30 April 2026. The average interest charged in the year was 2.5%.
MK BUSINESS SUPPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Assets
Assets
2023
2022
Group
£
£
Accelerated capital allowances
24,734
24,734
Assets
Assets
2023
2022
Company
£
£
Accelerated capital allowances
24,734
24,734
There were no deferred tax movements in the year.
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
23,088
16,941
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
98
98
98
98
Ordinary A shares of £1 each
2
2
2
2
Ordinary B shares of £1 each
6
5
6
5
106
105
106
105
On 7th September 2023 1 B Ordinary share of £1 was issued at par.
MK BUSINESS SUPPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
23
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
550,848
463,133
417,491
369,136
Profit/(loss) for the year
(168,939)
64,476
(367,392)
40,355
Dividends
(45,126)
23,239
(45,126)
8,000
At the end of the year
336,783
550,848
4,973
417,491
24
Related party transactions
Included within amounts owed from group undertakings are the following balances owed to subsidiary undertakings:
MK Technology Recruitment Ltd £nil (2022: £41,134)
Included within other debtors are the following balances owed from companies under common control:
MK Accounting & Finance Recruitment Ltd £79,231 (2022: £nil)
MK Engineering Recruitment Ltd £78,497 (2022: £nil)
Included in other debtors are the following balances owed from companies with a common director:
MK II Ltd £14 (2022: £nil)
MK Life Sciences £nil (2022: £47,396)
Included within amounts owed to group undertakings are the following balances owed to subsidiary undertakings:
MK Construction Recruitment Ltd £280,383 (2022: £20,870)
Included within other creditors are the following balances owed to companies under common control:
Reuben James Group Ltd £158,517 (2022: £33,585 owing from Reuben James Group Ltd)
MK Industrial and Logistics Recruitment Ltd £88,645 (2022: £236,223)
Included within other creditors are the following balances owed to companies with a common director:
OHS Ltd £nil (2022: 3,308)
All transactions have been recorded at arms length on normal commercial terms.
Included in other debtors are the following amounts owing from both the director and former directors of the company:
A M Penny £21,113 (2022: £12,082 owed from A M Penny)
J R Penny £206,436 (2022: £61,330)
Interest has been charged at 2.25% and there are no fixed terms of repayment.
25
Controlling party
A Penny and J Penny are the ultimate controlling parties by virtue of their majority shareholding in the ultimate parent company.
MK BUSINESS SUPPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
26
Cash generated from group operations
2023
2022
£
£
(Loss)/profit after taxation
(121,821)
245,026
Adjustments for:
Taxation (credited)/charged
(39,760)
21,208
Finance costs
211,355
149,640
Investment income
(118)
Amortisation and impairment of intangible assets
17,773
1,501
Depreciation and impairment of tangible fixed assets
92,107
2,682
Movements in working capital:
Decrease/(increase) in debtors
182,898
(1,488,298)
Increase in creditors
426,176
1,548,908
Cash generated from operations
768,728
480,549
27
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
308,126
(277,791)
30,335
Borrowings excluding overdrafts
(59,281)
35,739
(23,542)
248,845
(242,052)
6,793
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