Company registration number 01349434 (England and Wales)
PSD LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PSD LIMITED
COMPANY INFORMATION
DIRECTORS
Ms F M Robinson
Mr S J Murphy
(Appointed 2 October 2024)
Mr L Krafchik
SECRETARY
Mr L Krafchik
COMPANY NUMBER
01349434
REGISTERED OFFICE
62 Queen Street
London
EC4R 1EB
AUDITOR
Kilsby & Williams LLP
Cedar House
Hazell Drive
Newport
South Wales
NP10 8FY
PSD LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 9
Statement of income and retained earnings
10
Balance sheet
11
Notes to the financial statements
12 - 27
PSD LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The Directors present the strategic report for the year ended 31 December 2024.
PRINCIPAL ACTIVITIES
The principal activity of the Company remained the provision of recruitment consultancy services.
The Directors keep under review the cost base of the Company and we will continue to take prompt and decisive action where necessary to maintain the appropriate balance of revenues and costs for the long term success of the business. Subject to market conditions, the Company will seek to continue extending its operations through organic growth.
During the year the Directors made a decision to consolidate from three offices to two. Following the year end the Haywards Heath office was closed and staff relocated to the London office.
RESULTS
The gross fee income for year decreased by 19% (2023: decreased by 25%) to £6.9m (2023: £8.5 million). The loss for the year before taxation was £686,462 (2023: loss of £3,727).
PRINCIPAL RISKS AND UNCERTAINTIES
i) Dependence on key personnel
The future success of the Company is dependent on the continued service of senior management and key personnel. The loss of the services of the executive officers of the Company and other key personnel could have a material effect on the business.
ii) Competition
The Directors believe that the Company is well positioned in its chosen markets. Whilst the Company will seek to continue to improve its competitive positions, the actions of current or indeed potential competitors may adversely affect the Company's business.
iii) Strength of key markets
The market for executive search and selection and other recruitment services is currently uncertain and it is difficult to predict how the market will develop over the foreseeable future. A decline in the market for executive search and selection services could have a material adverse effect on profitability and cash flows of the business.
iv) Going concern
As at 31 December 2024 the Company had available cash of £3.3m (2023: £7.8 million) and no borrowings. The Group has a loan facility of which £1.0 million remains undrawn. The Directors have prepared base case financial forecasts for the period ending 1 August 2026. Forecast stress testing has demonstrated that the Company could withstand both a material and prolonged decrease in revenue and not require any financial support beyond existing facilities. On this basis, the Directors have a reasonable expectation that the Company will have sufficient available resources to continue operating for at least 12 months from the approval date of these Financial Statements. Accordingly, the Company continues to adopt the going concern basis in preparing its financial statements.
PSD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
KEY PERFORMANCE INDICATORS
The Company's principal Key Performance Indicator ('KPI') is net fee income generated per client service employee which reflects productivity. Current productivity is used to monitor the performance of the business which, together with historic and projected productivity, helps determine where the Company's resources should be deployed. Net fee income per employee for the year was £0.215 million (2023: £0.223 million).
OTHER INFORMATION AND EXPLANATIONS
Return of Capital
During the year the Company’s parent, PSD Group Limited, returned £5.4m of funds to shareholders through the issue and subsequent cancellation of bonus shares. This transaction was undertaken as the Group had excess cash in relation to its expected future requirements and led to a reduction in cash held by the Company.
This report was approved by the board of directors and signed on behalf of the board by:
Mr L Krafchik
Director
10 July 2025
PSD LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
RESULTS AND DIVIDENDS
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £1,150,000. The directors do not recommend payment of a final dividend.
DIRECTORS
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Ms F M Robinson
Mr S J Murphy
(Appointed 2 October 2024)
Mr L Krafchik
Mr P Hearn
(Resigned 2 October 2024)
STATEMENT OF DISCLOSURE TO AUDITOR
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
MEDIUM-SIZED COMPANIES EXEMPTION
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr L Krafchik
Director
10 July 2025
PSD LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
PSD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PSD LIMITED
- 5 -
Opinion
We have audited the financial statements of PSD Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
PSD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PSD LIMITED (CONTINUED)
- 6 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
PSD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PSD LIMITED (CONTINUED)
- 7 -
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
PSD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PSD LIMITED (CONTINUED)
- 8 -
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
•
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
PSD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PSD LIMITED (CONTINUED)
- 9 -
Simon Tee
Senior Statutory Auditor
For and on behalf of
Kilsby & Williams LLP
Chartered accountants & statutory auditor
Cedar House
Hazell Drive
Newport
South Wales
NP10 8FY
11 July 2025
PSD LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
Notes
£
£
TURNOVER
3
6,895,324
8,526,964
Cost of sales
(42,511)
(33,362)
GROSS PROFIT
6,852,813
8,493,602
Administrative expenses
(7,353,524)
(8,367,422)
OPERATING (LOSS)/PROFIT
4
(500,711)
126,180
Interest receivable and similar income
8
261,990
411,904
Interest payable and similar expenses
9
(447,741)
(541,811)
LOSS BEFORE TAXATION
(686,462)
(3,727)
Tax on loss
10
5,009
110,350
(LOSS)/PROFIT FOR THE FINANCIAL YEAR
(681,453)
106,623
Retained earnings brought forward
1,840,890
1,734,267
Dividends
11
(1,150,000)
Retained earnings carried forward
9,437
1,840,890
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PSD LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
FIXED ASSETS
Intangible assets
12
1,282
8,937
Tangible assets
13
57,007
112,108
Investments
14
2
2
58,291
121,047
CURRENT ASSETS
Debtors
16
2,741,954
6,692,682
Cash at bank and in hand
3,342,601
16,474,900
6,084,555
23,167,582
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
17
(5,821,457)
(21,153,115)
NET CURRENT ASSETS
263,098
2,014,467
TOTAL ASSETS LESS CURRENT LIABILITIES
321,389
2,135,514
PROVISIONS FOR LIABILITIES
Provisions
18
(311,852)
(294,524)
NET ASSETS
9,537
1,840,990
CAPITAL AND RESERVES
Called up share capital
21
100
100
Profit and loss reserves
9,437
1,840,890
TOTAL EQUITY
9,537
1,840,990
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 10 July 2025 and are signed on its behalf by:
Mr L Krafchik
Director
Company registration number 01349434 (England and Wales)
PSD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
ACCOUNTING POLICIES
Company information
PSD Limited is a private company limited by shares incorporated in England and Wales. The registered office is 62 Queen Street, London, EC4R 1EB.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
This 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:
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.
The financial statements of the company are consolidated in the financial statements of PSD Group Limited. These consolidated financial statements are available from Companies House, Crown Way, Cardiff, CF14 3UZ.
PSD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 13 -
1.2
Going concern
As at 31 December 2024 the Company had available cash of £3.3m (2022: £7.8 million) and no borrowings. The Group has a loan facility of which £1.0 million remains undrawn. The Directors have prepared base case financial forecasts for the period ending 1 August 2026. Forecast stress testing has demonstrated that the Company could withstand both a material and prolonged decrease in revenue and not require any financial support beyond existing facilities. On this basis, the Directors have a reasonable expectation that the Company will have sufficient available resources to continue operating for at least 12 months from the approval date of these Financial Statements. Accordingly, the Company continues to adopt the going concern basis in preparing its financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Gross fee income is recognised at a point in time when the Company satisfies performance obligations by transferring the promised services to clients. Gross fee income is net of value added tax. Net fee income is derived by deducting from gross fee income direct costs including the costs of advertising the position and candidate research.
For retained assignments these performance obligations are defined by stages of work in the terms of business agreed with the client in advance, and for non-retained assignments the company's obligations are deemed satisfied when a candidate accepts an offer of employment from a client. The transaction price is set by terms of business agreed with the client in advance. A provision is made against gross fee income for the cancellation of placements either prior to or shortly after the commencement of employment based on past experience of this occurring.
1.4
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 & licences
15% - 33% straight line
PSD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 14 -
1.5
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 land and buildings
5-10 Years Straight Line
Fixtures and fittings
3 Years Straight Line
Computers
3 Years Straight Line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.7
Impairment of fixed assets
At each reporting period end date, the company 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.
PSD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 15 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
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.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
PSD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 16 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
PSD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 17 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
PSD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 18 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
PSD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 19 -
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Revenue recognition
Revenue from permanent placements is recognised when a candidate accepts an offer of employment and a start date has been determined. There are occasionally circumstances where a candidate never takes up the offer of employment and the revenue has to be backed out in subsequent periods. A provision for back-outs is made at the time of revenue recognition, based on an estimate of the number of employment offers that will not be taken up.
Bad debt provision
In deciding the level of bad debt provision required management exercises judgement based on the age of the debt, knowledge of any known disputes surrounding the debt, the credit rating and the Company's past experience of trading with the client.
3
TURNOVER AND OTHER REVENUE
2024
2023
£
£
Turnover analysed by class of business
Rendering of services
6,895,324
8,526,964
PSD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
TURNOVER AND OTHER REVENUE
(Continued)
- 20 -
2024
2023
£
£
Other revenue
Interest income
261,990
411,904
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
4
OPERATING (LOSS)/PROFIT
2024
2023
Operating (loss)/profit for the year is stated after charging:
£
£
Exchange losses
69,440
54,449
Depreciation of owned tangible fixed assets
55,101
108,387
Amortisation of intangible assets
7,655
13,404
Operating lease charges
539,131
555,223
5
AUDITOR'S REMUNERATION
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
30,625
30,645
6
EMPLOYEES
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administrative staff
18
19
Executive directors
3
3
Client services staff
32
38
Total
53
60
PSD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
EMPLOYEES
(Continued)
- 21 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
4,465,594
5,416,801
Social security costs
808,678
741,466
Pension costs
70,192
81,042
5,344,464
6,239,309
All staff are employed by PSD Limited but costs relating to an average of 9 (2023: 7) employees have been recharged to PSD Contracts Ltd. The costs retained by PSD Limited as shown in the table above relate to the remaining average employees during the year.
7
DIRECTORS' REMUNERATION
2024
2023
£
£
Remuneration for qualifying services
370,950
433,756
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
216,180
278,985
8
INTEREST RECEIVABLE AND SIMILAR INCOME
2024
2023
£
£
Interest income
Interest on bank deposits
208,528
291,278
Interest receivable from group companies
53,275
120,626
Other interest income
187
Total income
261,990
411,904
PSD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
9
INTEREST PAYABLE AND SIMILAR EXPENSES
2024
2023
£
£
Interest payable to group undertakings
447,741
541,525
Other interest
286
447,741
541,811
10
TAXATION
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(16,193)
Deferred tax
Origination and reversal of timing differences
(5,009)
(94,157)
Total tax credit
(5,009)
(110,350)
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(686,462)
(3,727)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
(171,616)
(932)
Tax effect of expenses that are not deductible in determining taxable profit
10,307
8,385
Adjustments in respect of prior years
(16,193)
Group relief
155,620
33,845
Depreciation on assets not qualifying for tax allowances
680
756
Deferred tax adjustments in respect of prior years
(94,157)
Settlement of provisions
(42,054)
Taxation credit for the year
(5,009)
(110,350)
PSD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
11
DIVIDENDS
2024
2023
£
£
Interim paid
1,150,000
12
INTANGIBLE FIXED ASSETS
Software & licences
£
Cost
At 1 January 2024 and 31 December 2024
94,331
Amortisation and impairment
At 1 January 2024
85,394
Amortisation charged for the year
7,655
At 31 December 2024
93,049
Carrying amount
At 31 December 2024
1,282
At 31 December 2023
8,937
13
TANGIBLE FIXED ASSETS
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2024 and 31 December 2024
1,042,287
218,724
102,017
1,363,028
Depreciation and impairment
At 1 January 2024
1,019,309
132,458
99,153
1,250,920
Depreciation charged in the year
19,922
33,802
1,377
55,101
At 31 December 2024
1,039,231
166,260
100,530
1,306,021
Carrying amount
At 31 December 2024
3,056
52,464
1,487
57,007
At 31 December 2023
22,978
86,266
2,864
112,108
PSD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
14
FIXED ASSET INVESTMENTS
2024
2023
Notes
£
£
Investments in subsidiaries
15
2
2
15
SUBSIDIARIES
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Hoggett Bowers Interim Management Limited
62 Queen Street, London, EC4R 1EB
Ordinary
100.00
16
DEBTORS
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
967,912
1,365,602
Corporation tax recoverable
50,803
20,865
Amounts owed by group undertakings
3,253,857
Other debtors
452,901
575,004
Prepayments and accrued income
1,171,172
1,383,197
2,642,788
6,598,525
Deferred tax asset (note 19)
99,166
94,157
2,741,954
6,692,682
17
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024
2023
£
£
Trade creditors
339,842
268,658
Amounts owed to group undertakings
3,874,446
10,067,276
Taxation and social security
305,142
398,374
Other creditors
331,038
9,091,727
Accruals and deferred income
970,989
1,327,080
5,821,457
21,153,115
PSD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
17
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
(Continued)
- 25 -
Other creditors include £Nil (2023: £8.6m) in respect of amounts held on deposit on behalf of related parties.
18
PROVISIONS FOR LIABILITIES
2024
2023
£
£
Dilapidation provision
311,852
294,524
Movements on provisions:
Dilapidation provision
£
At 1 January 2024
294,524
Additional provisions in the year
17,328
At 31 December 2024
311,852
19
DEFERRED TAXATION
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
27,701
22,377
Retirement benefit obligations
-
315
Asset on other timing
71,465
71,465
99,166
94,157
PSD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
19
DEFERRED TAXATION
(Continued)
- 26 -
2024
Movements in the year:
£
Asset at 1 January 2024
(94,157)
Credit to profit or loss
(5,009)
Asset at 31 December 2024
(99,166)
20
RETIREMENT BENEFIT SCHEMES
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
70,192
81,042
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
21
SHARE CAPITAL
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
22
OPERATING LEASE COMMITMENTS
As lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within 1 year
529,637
740,723
Years 2-5
247,928
832,875
777,565
1,573,598
PSD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
23
RELATED PARTY TRANSACTIONS
Costs accrued or paid that directly relate to a client service employee are apportioned between the Group companies based on the revenue that each employee has generated. Other costs that offer benefits to the whole Group are apportioned between the Group companies based on the number of client service employees.
For the year ended 31 December 2024, directors fees were charged by OPD Group Limited, a company under common control, of £30,000 (2023: £30,000). A balance of £nil was due at the year end (2023: £30,000).
At the year end, £nil was included in Other Creditors (2023: £8.6m) for amounts held on deposit in a treasury interest bearing account on behalf of OPD Group Limited. The interest received on amounts under deposit on behalf of related parties was £308,244 (2023: £440,483) and this interest has been transferred in full to the relevant related party.
24
DIRECTORS' TRANSACTIONS
At the year end the director L Krafchik had received an interest free loan from the Company of £15,000 (2023: £50,000). The conditions of the loans state that repayment will only take place as a result of an exit event in PSD Group Limited to discharge the liability or termination of employment, whichever is the earlier of the two.
25
ULTIMATE CONTROLLING PARTY
The ultimate parent undertaking and controlling party of the Company is PSD Group Holdings Limited, a private company incorporated in England. The smallest and largest group producing accounts into which the results of the Company for the year ended 31 December 2024 are consolidated is PSD Group Limited. The accounts of PSD Group Limited are available from Companies House, Crown Way, Cardiff CF14 3UZ.
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