Registration number:
Barclay Simpson Associates Limited
for the Year Ended 31 December 2024
Barclay Simpson Associates Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Statement of Comprehensive Income |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Barclay Simpson Associates Limited
Company Information
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Chairman |
I J Coyle |
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Chief executive |
D Spencer |
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Directors |
P Savill S M Lawton M W R Hunt |
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Registered office |
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Auditors |
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Barclay Simpson Associates Limited
Strategic Report for the Year Ended 31 December 2024
Chairman's statement
Welcome to Barclay Simpson’s 2024 Annual Report & Accounts
The deterioration in trading conditions experienced throughout 2023 continued into and persisted throughout 2024. This is the reality the business has faced, providing the context for what is, relative to our peers, a strong performance.
The group’s ability to deliver a profitable result is a testament to the skill and resilience of the business’s leadership and all its people. The combination of, at best, sluggish economic growth, sticky inflation, high interest rates, and ongoing geopolitical and domestic uncertainty undermined business confidence and curtailed investment, conditions that are particularly challenging for recruitment and professional services businesses.
To confront these challenges, Dean Spencer, our CEO, and the management team have focused clearly on the core strengths of the recruitment business: our brand, deep relationships, and exceptional people. This focus, supported by disciplined cost and performance management, has provided the latitude to continue making selective investments in our people, brand, and technology, which have enhanced the business's underlying capabilities and productivity.
BSS, our business solutions and services arm, has continued to develop as a fully-fledged cybersecurity, risk, and governance consultancy despite facing headwinds. The development of new services and the recruitment of high-calibre staff have led to deeper engagements with existing clients and the acquisition of new blue-chip clients who appreciate the value of our business model and the professional capabilities of our team.
Board focus and outlook
The outlook for the coming year is uncertain. The combination of international and domestic issues, along with low expectations for economic growth, is unlikely to generate a significant uplift in demand for recruitment and professional services.
The Board is, however, confident that the business is well-led and has the financial resources, a strong brand, effective management, and operational capabilities to make progress, even in these challenging conditions. The Board will continue to focus on delivering its strategy through a combination of prudent resource deployment, a clear focus on core markets, and the agile pursuit of new opportunities as they emerge.
We will continue to nurture our relationships with our communities and invest in our most valuable asset: our people. The ongoing resilience of the business and its progress in our core markets is a testament to their uncompromising commitment to excellence. On behalf of the Board, I would like to express my sincere admiration and gratitude for their unwavering dedication.
Ian Coyle
Chairman
12 May 2025
Barclay Simpson Associates Limited
Strategic Report for the Year Ended 31 December 2024 (continued)
2024 CEO Statement
Business review
I wrote in my statement last year that with borrowing costs expected to remain high, and elections planned in the UK and US, trading conditions would remain challenging throughout 2024. Twelve months on, that statement proved to be correct.
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Turnover: |
Decreased by 19% to £12.01m |
(2023: £14.91m) |
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Gross profit: |
Decreased by 21% to £5.38m |
(2023: £6.81m) |
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Operating profit: |
Decreased by 88% to £0.12m |
(2023: £1.03m) |
While the decline in profit is disappointing, it must be viewed in the context of a highly challenging environment. Sluggish economic growth, persistent inflation, elevated interest rates, and ongoing geopolitical uncertainty had a substantial impact on the recruitment sector. In this context, delivering a profitable result represents a commendable achievement.
It was pleasing to see this performance recognised in Recruiter Magazine’s 2024 Hot 100 list of the UK’s most efficient and profitable businesses, with BSA securing 41st place, marking our third consecutive year on the list. The use of audited financial and operational data in the selection process lends credibility to the ranking and offers tangible evidence of our strong position in the market.
A key driver of this success has been the performance of our cybersecurity professional services consultancy business, BSS. With a strong leadership team in place and further investment planned in 2025, we expect BSS to continue making a meaningful contribution to Group profits and to deliver significant shareholder value in the year ahead and beyond.
People strategy
Our workforce remains the cornerstone of our growth strategy. We prioritise hiring experienced recruiters with a proven track record and invest in developing their potential to build long-term careers within the business.
Over the past five years, we have taken meaningful steps to enhance employee engagement and reinforce our position as the employer of choice within our specialist markets. The impact of these efforts is evident in our staff metrics. The average employee tenure currently stands at 6.9 years, well above industry norms. Furthermore, our latest staff engagement survey, conducted by Thomas International, delivered an overall engagement score of 76%, significantly outperforming the UK benchmark.
These results are a testament to the commitment of our leadership team in fostering a supportive, engaging work environment despite external headwinds. They also highlight the success of our talent management strategy, employee development initiatives, and ongoing cultural programmes.
Barclay Simpson Associates Limited
Strategic Report for the Year Ended 31 December 2024 (continued)
2025 Outlook
Looking ahead to 2025, the trading environment is expected to remain challenging.
Despite these headwinds, the depth of experience, expertise, and long tenure of our staff, combined with a brand and reputation built over three decades, positions us well to deliver another year of robust financial performance and market outperformance.
Maintaining our focus on employee wellbeing and engagement will remain central to our ability to navigate the evolving landscape and sustain long-term shareholder value creation.
Dean Spencer
CEO
12 May 2025
Barclay Simpson Associates Limited
Strategic Report for the Year Ended 31 December 2024 (continued)
The directors present their strategic report for the year ended 31 December 2024.
Principal activity
Barclay Simpson is a global Recruitment and Business solutions and services provider operating exclusively within Cyber Security, Technology and Corporate Governance related markets. Our core capabilities include contingent and retained search, interim resourcing and deploying project teams under Statements of Work (SoW). We work with our customers on a global basis from our offices in London and Frankfurt.
Key Performance Indicators
Our Board use a range of performance measures to monitor and manage the growth of the business in the medium to long term and present their key performance indicators for the financial year.
Financial
Revenue/Turnover: £12.01 (2023: £14.91m)
Gross profit/NFI: £5.38 (2023: £6.8m)
NFI Contract to Perm Ratio: 31%/69% (2023: 36%/64%)
Underlying Profit: Profit of £0.11 (2023: £1.03m)
Debtor Days: 42 days (2023: 41 days)
Invoice Financing Debt as % of year End debtors: Nil debt (2023: Nil)
Operational
Jobs Added to Placement Ratio 3.3 to 1 (2023: 3.8 to 1)
Notes:
Revenue is total fees earned by the Group before any costs deducted.
Gross Profit is revenue less cost of sales.
Debtor days shows the average number of days credit taken by our customers to settle our invoices
Risk Management and Principal Risks and Uncertainties
The Board, in association with the Audit Committee, is committed to protecting and developing our reputation and business interests. It has overall responsibility for risk management within the business and reviews the Group’s risk appetite and risk profile quarterly.
The Board considers that the following comprises the Group’s principal risks and uncertainties:
People
The gravest threat to the achievement of the Group’s goals is its ability to recruit, retain and develop high-calibre staff across all our business functions., The Group closely monitors key performance indicators concerning the effectiveness of our people processes and focuses on the needs of this stakeholder group through its “People First” strategy.
Barclay Simpson Associates Limited
Strategic Report for the Year Ended 31 December 2024 (continued)
Technology
The Group is dependent on its technology systems to deliver its services. Our cloud-based systems architecture is designed to minimise hardware and software vulnerabilities and to be as flexible in deployment and resilient as possible. We continue to invest in our cyber security capabilities.
Information
Personal data is the Group’s principal tradable asset which exposes the business to potential legal, financial, and reputational risks. The business maintains high levels of appropriate regulatory compliance, principally with the UK DPA 2018 and the GDPR. Investment in the Company’s Information Security Management System (ISMS) and achieving ISO 27001 accreditation have been significant enhancements.
Liquidity
The Group’s treasury function centrally coordinates relationships with banks and manages borrowing requirements, foreign exchange needs and cash management. The Group possesses sufficient resources to meet its day-to-day financial obligations and invest in the business's development.
External risks
The Company recognises that events outside of the Company’s control can pose a threat to its operations. As part of its Information Security Management System (ISMS), the Company has a comprehensive business continuity and disaster recovery plan, which is regularly tested. We also have in place a robust schedule of insurance policies to support our operational policies and procedures, which are reviewed annually by the Board.
Approved and authorised by the
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Barclay Simpson Associates Limited
Directors' Report for the Year Ended 31 December 2024
The directors present their report and the consolidated financial statements for the year ended 31 December 2024.
Directors of the group
The directors who held office during the year were as follows:
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
The auditors EVMS Partners LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved and authorised by the
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Barclay Simpson Associates Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Barclay Simpson Associates Limited
Independent Auditor's Report to the Members of Barclay Simpson Associates Limited
Opinion
We have audited the financial statements of Barclay Simpson Associates Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated 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 2024 and of the group's 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. |
Basis for opinion
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 responsibilities for the audit of the financial statements section of our report. We are independent of the group and the 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 the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
Barclay Simpson Associates Limited
Independent Auditor's Report to the Members of Barclay Simpson Associates Limited (continued)
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 8, 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.
Barclay Simpson Associates Limited
Independent Auditor's Report to the Members of Barclay Simpson Associates Limited (continued)
Auditor 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:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: enquiring of management concerning the group’s and parent company’s policies with regards to identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; enquiring of management concerning the group’s and parent company’s policies for detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; enquiring of management concerning the group’s and parent company’s policies in relation to the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; discussing among the engagement team where fraud might occur in the financial statements and any potential indicators of fraud; and obtaining an understanding of the legal and regulatory framework that the group and parent company operate in and focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the group and parent company. The key laws and regulations we considered in this context included the UK Companies Act 2006 and UK tax and employment law, including that pertaining to the use of contractors and interim workers.
One particular focus area was the risk of fraud through management override of controls. Our procedures to respond to risks identified included the following: performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; reviewing the bank statements of the parent company and its subsidiaries for evidence of any unusual activity which may be indicative of fraud; enquiring of management in relation to any potential litigation and claims; and testing the appropriateness of journal entries and other adjustments. As regards the use of contractors and interim workers we have made enquiries of management as to how the group and parent company ensures compliance with relevant employment and tax law, and sample checked documentation that the group and parent company obtain as part of their internal procedures.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Barclay Simpson Associates Limited
Independent Auditor's Report to the Members of Barclay Simpson Associates Limited (continued)
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
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For and on behalf of
45 Ludgate Hill
EC4M 7JU
Barclay Simpson Associates Limited
Consolidated Profit and Loss Account for the Year Ended 31 December 2024
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Note |
2024 |
2023 |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
- |
|
|
Operating profit |
|
|
|
|
Other interest receivable and similar income |
|
|
|
|
Profit before tax |
|
|
|
|
Tax on profit |
( |
( |
|
|
Profit for the financial year |
|
|
|
|
Profit attributable to: |
|||
|
Owners of the company |
|
|
|
|
Non-controlling interests |
|
|
|
|
|
|
Barclay Simpson Associates Limited
Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2024
|
2024 |
2023 |
|
|
Profit for the year |
|
|
|
Foreign currency translation gains/(losses) |
|
( |
|
Total comprehensive income for the year |
|
|
|
Total comprehensive income attributable to: |
||
|
Owners of the company |
|
|
|
Non-controlling interests |
|
|
|
|
|
Barclay Simpson Associates Limited
(Registration number: 02440037)
Consolidated Balance Sheet as at 31 December 2024
|
Note |
2024 |
2023 |
|
|
Fixed assets |
|||
|
Tangible assets |
|
|
|
|
Current assets |
|||
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
168 |
170 |
|
|
Share premium reserve |
54,447 |
54,447 |
|
|
Capital redemption reserve |
20 |
18 |
|
|
Other reserves |
(706,643) |
(706,633) |
|
|
Retained earnings |
2,036,050 |
2,004,531 |
|
|
Equity attributable to owners of the company |
1,384,042 |
1,352,533 |
|
|
Non-controlling interests |
139,562 |
57,067 |
|
|
Shareholders' funds |
1,523,604 |
1,409,600 |
Approved and authorised by the
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Barclay Simpson Associates Limited
(Registration number: 02440037)
Balance Sheet as at 31 December 2024
|
Note |
2024 |
2023 |
|
|
Fixed assets |
|||
|
Tangible assets |
|
|
|
|
Investments |
|
|
|
|
|
|
||
|
Current assets |
|||
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
168 |
170 |
|
|
Share premium reserve |
54,447 |
54,447 |
|
|
Capital redemption reserve |
20 |
18 |
|
|
Other reserves |
(706,643) |
(706,633) |
|
|
Retained earnings |
1,171,816 |
1,270,353 |
|
|
Shareholders' funds |
519,808 |
618,355 |
The company made a loss after tax for the financial year of £98,537 (2023 - profit of £920,066).
Approved and authorised by the
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Barclay Simpson Associates Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 December 2024
Equity attributable to the parent company
|
Share capital |
Share premium |
Capital redemption reserve |
Other reserves |
Retained earnings |
Total |
Non-controlling interests - Equity |
Total equity |
|
|
At 1 January 2024 |
|
|
|
( |
|
|
|
|
|
Profit for the year |
- |
- |
- |
- |
|
|
|
|
|
Other comprehensive income |
- |
- |
- |
- |
|
|
- |
|
|
Total comprehensive income |
- |
- |
- |
- |
|
|
|
|
|
Purchase of own share capital |
(2) |
- |
2 |
(10) |
- |
(10) |
- |
(10) |
|
Increase in non-controlling interest in subsidiaries that do not result in loss of control |
- |
- |
- |
- |
( |
( |
|
- |
|
Decrease in non-controlling interest in subsidiaries |
- |
- |
- |
- |
( |
( |
|
- |
|
At 31 December 2024 |
|
|
|
( |
|
|
|
|
Barclay Simpson Associates Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 December 2024 (continued)
Equity attributable to the parent company
|
Share capital |
Share premium |
Capital redemption reserve |
Other reserves |
Retained earnings |
Total |
Non-controlling interests - Equity |
Total equity |
|
|
At 1 January 2023 |
|
|
- |
( |
|
|
|
|
|
Profit for the year |
- |
- |
- |
- |
|
|
|
|
|
Other comprehensive income |
- |
- |
- |
- |
( |
( |
- |
( |
|
Total comprehensive income |
- |
- |
- |
- |
|
|
|
|
|
Dividends |
- |
- |
- |
- |
( |
( |
( |
( |
|
New share capital subscribed |
|
|
- |
- |
- |
|
- |
|
|
Purchase of own share capital |
- |
- |
- |
(234,463) |
- |
(234,463) |
- |
(234,463) |
|
Other capital redemption reserve movements |
(18) |
- |
18 |
- |
- |
- |
- |
- |
|
At 31 December 2023 |
170 |
54,447 |
18 |
(706,633) |
2,004,531 |
1,352,533 |
57,067 |
1,409,600 |
Barclay Simpson Associates Limited
Statement of Changes in Equity for the Year Ended 31 December 2024
|
Share capital |
Share premium |
Capital redemption reserve |
Other reserves |
Retained earnings |
Total |
|
|
At 1 January 2024 |
|
|
|
( |
|
|
|
Loss for the year |
- |
- |
- |
- |
( |
( |
|
Purchase of own share capital |
(2) |
- |
2 |
(10) |
- |
(10) |
|
At 31 December 2024 |
|
|
|
( |
|
|
|
Share capital |
Share premium |
Capital redemption reserve |
Other reserves |
Retained earnings |
Total |
|
|
At 1 January 2023 |
|
|
- |
( |
|
|
|
Profit for the year |
- |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
- |
( |
( |
|
New share capital subscribed |
|
|
- |
- |
- |
|
|
Purchase of own share capital |
(18) |
- |
18 |
(234,463) |
- |
(234,463) |
|
At 31 December 2023 |
170 |
54,447 |
18 |
(706,633) |
1,270,353 |
618,355 |
Barclay Simpson Associates Limited
Consolidated Statement of Cash Flows for the Year Ended 31 December 2024
|
Note |
2024 |
2023 |
|
|
Cash flows from operating activities |
|||
|
Profit for the year |
|
|
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation |
|
|
|
|
Finance income |
( |
( |
|
|
Finance costs |
- |
|
|
|
Corporation tax expense |
|
|
|
|
|
|
||
|
Working capital adjustments |
|||
|
Decrease in trade debtors |
|
|
|
|
Decrease in trade creditors |
( |
( |
|
|
Cash generated from operations |
( |
|
|
|
Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
( |
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Net cash flows from investing activities |
|
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
- |
( |
|
|
Proceeds from issue of ordinary shares, net of issue costs |
- |
|
|
|
Payments for purchase of own shares |
( |
( |
|
|
Repayment of bank borrowing |
- |
( |
|
|
Dividends paid |
- |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net decrease in cash and cash equivalents |
( |
( |
|
|
Cash and cash equivalents at 1 January |
|
|
|
|
Effect of exchange rate fluctuations on cash held |
( |
( |
|
|
Cash and cash equivalents at 31 December |
768,812 |
849,347 |
|
Barclay Simpson Associates Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
|
Accounting policies |
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Summary of disclosure exemptions
FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions, which have been complied with, including notification of, and no objection to, the use of exemptions by the company's shareholders.
The company has taken advantage of the exemptions from preparing a statement of cash flows, on the basis that it is a qualifying entity and the consolidated statement of cash flows, included in these financial statements, includes the company's cash flows.
Under FRS 102 the company is also exempt from related party disclosure requirements on transactions with any 100% owned subsidiary companies.
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of comprehensive income in these financial statements. The loss of the parent company for the year was £98,537 (2023: profit of £920,066).
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2024.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Barclay Simpson Associates Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
2 |
Accounting policies (continued) |
Going concern
At the time of approving the financial statements, the Directors have a reasonable expectation that the company and the group have adequate resources to continue in operational existence for the foreseeable future, a period of not less that twelve months from the date of approval of these financial statements. Thus, the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Judgements
Management are required to exercise judgement in applying the company's accounting policies. Due to the straightforward nature of the business, management consider that no critical judgements have been made in applying the company's accounting policies. |
Key sources of estimation uncertainty
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. Management do not consider there are any key accounting estimates or assumptions made that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
Turnover from the placement of permanent staff is recognised when a candidate starts their new employment. Turnover from the placement of temporary staff is recognised when the temporary staff provide their services.
Foreign currency transactions and balances
The functional and presentational currency of the company is pounds sterling. Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Barclay Simpson Associates Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
2 |
Accounting policies (continued) |
Group
The results for the year of overseas subsidiary undertakings are translated into sterling at average rates for the year. Exchange differences arising on translation into sterling at year end rates of operating net assets and results of overseas subsidiary undertakings are reported in the statement of total comprehensive income and taken to reserves. All other exchange differences are taken to the profit and loss account.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, less their estimated residual value, over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Fixtures and fittings |
4 years |
|
Computer equipment |
4 years |
|
Website development |
4 years |
Investments
Investments in subsidiaries are valued at cost less provision for permanent diminution in value.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Barclay Simpson Associates Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
2 |
Accounting policies (continued) |
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
Defined contribution pension obligation
The group operates a defined contribution pension plan for its employees. A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
All trade and other debtors are initially recognised at transaction value, as none contain in substance a financing transaction. Thereafter trade and other debtors are reviewed for impairment where there is objective evidence based on observable data that the balance may be impaired. The group does not hold collateral against its trade and other receivables to its exposure to credit risk is the net balance of trade and other debtors after allowance for impairment.
Trade and other creditors and accruals are initially recognised at transaction value as none represent a financing transaction. They are only derecognised when they are extinguished.
The group has an invoice financing facility whereby some of its trade debtors have been transferred to another party. The terms of this facility do not meet the criteria for derecognition as the risks and rewards of ownership of these debtors are retained by the group. Consequently the assets and liabilities relating to this facility are separately disclosed.
Barclay Simpson Associates Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Turnover |
The analysis of the group's turnover for the year by market is as follows:
|
2024 |
2023 |
|
|
UK |
|
|
|
Europe |
|
|
|
Rest of world |
|
|
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Foreign exchange losses |
|
|
|
Operating lease expense - property |
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Redundancy costs |
- |
|
|
|
|
Barclay Simpson Associates Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
5 |
Staff costs (continued) |
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Administration and support |
|
|
|
Other departments |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
413,963 |
463,732 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2024 |
2023 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
Barclay Simpson Associates Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of these financial statements |
9,600 |
9,350 |
|
Audit of the financial statements of subsidiaries of the company pursuant to legislation |
16,850 |
16,300 |
|
|
|
|
|
Other fees to auditors |
||
|
Taxation compliance services |
|
|
|
All other non-audit services |
|
|
|
|
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
( |
- |
|
6,744 |
227,465 |
Barclay Simpson Associates Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
8 |
Taxation (continued) |
The tax on profit before tax for the year differs from the standard rate of corporation tax in the UK of
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Decrease from effect of different UK tax rates on some earnings |
( |
( |
|
Effect of expense not deductible in determining taxable profit |
|
|
|
Effect of foreign tax rates |
- |
|
|
Increase from tax losses for which no deferred tax asset was recognised |
|
- |
|
Decrease in UK and foreign current tax from adjustment for prior periods |
( |
- |
|
Tax decrease from other short-term timing differences |
( |
( |
|
Total tax charge |
|
|
|
Tangible assets |
Group
|
Fixtures and fittings |
Computer equipment |
Website development |
Total |
|
|
Cost |
||||
|
At 1 January 2024 |
|
|
|
|
|
Additions |
- |
|
- |
|
|
At 31 December 2024 |
|
|
|
|
|
Depreciation |
||||
|
At 1 January 2024 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
At 31 December 2024 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 December 2024 |
- |
|
|
|
|
At 31 December 2023 |
|
|
|
|
Barclay Simpson Associates Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
9 |
Tangible assets (continued) |
Company
|
Fixtures and fittings |
Computer equipment |
Website development |
Total |
|
|
Cost |
||||
|
At 1 January 2024 |
|
|
|
|
|
At 31 December 2024 |
|
|
|
|
|
Depreciation |
||||
|
At 1 January 2024 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
At 31 December 2024 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 December 2024 |
- |
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
Investments |
Company
|
2024 |
2023 |
|
|
Investments in subsidiaries |
|
|
Barclay Simpson Associates Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
10 |
Investments (continued) |
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2024 |
2023 |
|||
|
Subsidiary undertakings |
||||
|
|
UK |
|
|
|
|
|
UK |
|
|
|
|
|
Germany |
|
|
|
|
|
UK |
|
|
|
|
Subsidiary undertakings |
|
Barclay Simpson Interim Services Limited The principal activity of Barclay Simpson Interim Services Limited is |
|
Barclay Simpson Europe Limited The principal activity of Barclay Simpson Europe Limited is |
|
Barclay Simpson Gmbh The principal activity of Barclay Simpson Gmbh is |
|
Barclay Simpson Solutions Limited The principal activity of Barclay Simpson Solutions Limited is |
Barclay Simpson Associates Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Debtors |
|
Group |
Company |
||||
|
Note |
2024 |
2023 |
2024 |
2023 |
|
|
Trade debtors |
|
|
|
|
|
|
Amounts owed by group undertakings |
- |
- |
|
|
|
|
Other debtors |
|
|
|
|
|
|
Prepayments |
|
|
|
|
|
|
Accrued income |
|
|
|
|
|
|
Corporation tax asset |
|
|
|
|
|
|
|
|
|
|
||
Group
As at the year end, trade debtors of £1,375,324 (2023: £1,656,051) for the group and £352,899 (2023: £394,227) for the company have been transferred to the financing party. There is a fixed charge over these debtors and a floating charge over the company's other assets in favour of the financing party. The amount drawn down against these at the balance sheet was £nil (2023: £nil).
Included in other debtors is £228,891 (2023: £228,891) due from employee shareholders. These amounts are repayable on demand, so are not subject to discounting, and secured on the shares which were acquired with the initial loans. To date the balances have been repaid through dividends on those shares. Recoupment through dividends, and the exercise of the security, would lead to a deduction in shareholders funds, which impacts on the Company's assessment of its distributable reserves.
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Cash at bank |
|
|
|
|
|
Short-term deposits |
|
|
- |
- |
|
|
|
|
|
|
Barclay Simpson Associates Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Creditors |
|
Group |
Company |
||||
|
Note |
2024 |
2023 |
2024 |
2023 |
|
|
Due within one year |
|||||
|
Trade creditors |
|
|
|
|
|
|
Amounts due to group undertakings |
- |
- |
|
|
|
|
Social security and other taxes |
|
|
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
|
|
Other payables |
|
|
|
|
|
|
Accruals |
|
|
|
|
|
|
Corporation tax |
53,320 |
133,417 |
- |
- |
|
|
Deferred income |
|
|
- |
- |
|
|
|
|
|
|
||
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
108 |
|
108 |
|
|
|
61 |
|
63 |
|
|
|
|
|
|
Barclay Simpson Associates Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
15 |
Share capital (continued) |
On 11 June 2024, 20 Ordinary B shares were repurchased for aggregate consideration of £10 and cancelled, which reduced distributable reserves. A capital redemption reserve of £2, being the nominal value of the shares cancelled, arose on the cancellation.
Rights, preferences and restrictions
|
The A shareholders receive preference on a return of capital. Otherwise the B shares rank pari passu with the A shares in all respects. |
|
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Dividends |
|
2024 |
2023 |
|||
|
£ |
£ |
|||
|
Interim dividends (see below) |
600,008 |
|||
The company paid the following interim dividends during the prior year: 6 October 2023 £278.30 per Ordinary A share totalling £300,007; 20 December 2023 £176.16 per Ordinary A and Ordinary B share totalling £300,000. No dividends were paid or declared in the current year.
Barclay Simpson Associates Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Analysis of changes in net debt |
Group
|
At 1 January 2024 |
Cash flows |
Foreign exchange movements |
At 31 December 2024 |
|
|
Cash and cash equivalents |
||||
|
Cash |
849,347 |
(79,291) |
(1,244) |
768,812 |
|
|
||||
|
|
( |
( |
|
|
|
Related party transactions |
Summary of transactions with subsidiaries
At the balance sheet date, £83,571 (2023: £144,200) was due from and £3,731 (2023: £15,050) was due to entities that are subsidiary undertakings.
|
Controlling party |