Company registration number 05842761 (England and Wales)
ENERGIZE RECRUITMENT SOLUTIONS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
ENERGIZE RECRUITMENT SOLUTIONS LTD
COMPANY INFORMATION
Director
Mr C Molloy
Company number
05842761
Registered office
The Pavilion
Wilmslow Road
Didsbury
Manchester
United Kingdom
M20 2LS
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
ENERGIZE RECRUITMENT SOLUTIONS LTD
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Notes to the financial statements
10 - 20
ENERGIZE RECRUITMENT SOLUTIONS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The director presents the strategic report for the year ended 31 December 2024.
Review of the business
Energize Recruitment Solutions Ltd (Energize) is headquartered in Manchester (UK), with regional subsidiary offices in Dallas, Boston and Madrid. The Company specialises in the provision of SAP and Cloud staffing solutions. Its service offering covers both permanent recruitment (retained and contingent) and contract (Freelance) within its core geographical markets of Germany, Spain, Belgium, the Netherlands, and the United States.
For the year ending 31 December 2024, Energize achieved a turnover of £12.3m (2023: £16m), a gross profit of £3.7m (2023: £5.3m), and an operating profit of £373,000 (2023: £533,000). The balance sheet reflects a positive net asset position of £3.35m (2023: £3.3m)
The Directors believe this was a satisfactory performance considering the challenging trading conditions and investments made by the business.
NOTE: In May 2024, Energize launched a new entity in Spain that had previously been incubated in the UK therefore turnover, gross profit, operating profit and headcount were removed from Energize Recruitment Solutions Ltd from 1st May 2024.
Principal risks and uncertainties
Competition
There is competitive risk however, Energize are confident in the strength of its brand and reputation it has within its niche markets to combat this. The dedication to customer service resulting in a high volume of repeat business combined with the award-winning in-house training also help counter this risk.
I.T. System Failure Risk
The business is heavily dependent on its I.T. systems and database. To mitigate this risk, the directors have ensured that a disaster recovery plan is in place and invested in a Cloud based system to mitigate further risk.
Reduction in Business Activity
The group, like any other business operating in this space is exposed to a risk of a downturn in the staffing sector. In addition, trading levels are influenced by the general economy. To mitigate this risk, the directors are pro-actively engaged in the running of the business to ensure strategic plans and budgets are achieved.
Legislative Risk
Working across different territories opens up the business to different risks. An active member of APSCo (an industry trade body) and employing the services of a compliance specialist to advise on different territories mitigates any legislative risk.
Banking Covenants
The Group have successfully fulfilled its duties with regards to all banking covenants in 2024.
ENERGIZE RECRUITMENT SOLUTIONS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Key performance indicators
2024 continued to present challenging market conditions in the staffing industry, however Energize were satisfied with their performance. The leadership team remains focused on driving forward the strategic objectives and investments made in Dallas, Boston & Madrid whilst remaining focused on increasing the percentage of contract gross profit across all group companies.
Due to the separation of the Spanish entity combined with challenging market conditions over the 12-month period, the company experienced a 23% reduction in turnover (£16m to £12.3m) and a 29% decrease in gross profit (£5.2m to £3.7m) with an operating profit of £373k.
As previously noted, sales and headcount ordinarily attributed to Energize Ltd are now reflected in the financials of the Spanish entity, Energize Recruitment Solutions Iberica SL.
Mr C Molloy
Director
6 August 2025
ENERGIZE RECRUITMENT SOLUTIONS LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The director presents his annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of permanent and temporary personnel placement.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid to Energize Group Holdings Ltd amounting to £343,964 (2023: £409,980). The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr C Molloy
Financial instruments
Liquidity risk
The company manages its borrowing requirments in order to minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Foreign exchange risk
The company’s principal foreign currency exposures arise from trading with overseas companies. The company closely monitors its exposure to currency risk, the directors currently consider risk in this area to be low.
Credit Risk
The group's principal financial asset is trade debtors. To minimise the risk to this asset, credit insurance is used where appropriate and robust credit control measures are employed. In addition, the group’s exposure is spread over a vast range of customers in different geographic territories.
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
ENERGIZE RECRUITMENT SOLUTIONS LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr C Molloy
Director
6 August 2025
ENERGIZE RECRUITMENT SOLUTIONS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ENERGIZE RECRUITMENT SOLUTIONS LTD
- 5 -
Opinion
We have audited the financial statements of Energize Recruitment Solutions Ltd (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 profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
ENERGIZE RECRUITMENT SOLUTIONS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ENERGIZE RECRUITMENT SOLUTIONS LTD
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, 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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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.
ENERGIZE RECRUITMENT SOLUTIONS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ENERGIZE RECRUITMENT SOLUTIONS LTD
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we 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. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk 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.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Ashley Conway
Senior Statutory Auditor
For and on behalf of Azets Audit Services
7 August 2025
Chartered Accountants
Statutory Auditor
Ship Canal House
98 King Street
Manchester
M2 4WU
ENERGIZE RECRUITMENT SOLUTIONS LTD
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
2
12,260,972
15,987,377
Cost of sales
(8,550,951)
(10,731,000)
Gross profit
3,710,021
5,256,377
Administrative expenses
(3,652,979)
(4,811,287)
Other operating income
316,303
88,373
Operating profit
3
373,345
533,463
Interest receivable and similar income
1,320
Interest payable and similar expenses
(1,933)
(13,459)
Profit before taxation
372,732
520,004
Tax on profit
6
30,685
(165,270)
Profit for the financial year
403,417
354,734
Retained earnings brought forward
3,283,929
2,053,342
Dividends
7
(343,964)
(409,980)
Retained earnings carried forward
3,343,382
1,998,096
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ENERGIZE RECRUITMENT SOLUTIONS LTD
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
8
162,419
218,057
Investments
9
43,988
43,988
206,407
262,045
Current assets
Debtors
11
5,293,474
5,009,591
Cash at bank and in hand
25,729
72,993
5,319,203
5,082,584
Creditors: amounts falling due within one year
12
(2,115,150)
(1,927,932)
Net current assets
3,204,053
3,154,652
Total assets less current liabilities
3,410,460
3,416,697
Creditors: amounts falling due after more than one year
13
(29,167)
(83,333)
Provisions for liabilities
Deferred tax liability
15
27,911
39,435
(27,911)
(39,435)
Net assets
3,353,382
3,293,929
Capital and reserves
Called up share capital
17
10,000
10,000
Profit and loss reserves
3,343,382
3,283,929
Total equity
3,353,382
3,293,929
The financial statements were approved and signed by the director and authorised for issue on 6 August 2025
Mr C Molloy
Director
Company Registration No. 05842761
ENERGIZE RECRUITMENT SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
1
Accounting policies
Company information
Energize Recruitment Solutions Ltd is a private company limited by shares incorporated in England and Wales. The registered office is The Pavilion, Wilmslow Road, Didsbury, Manchester, United Kingdom, M20 2LS.
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 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 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Energize Group Holdings Limited. These consolidated financial statements are available from its registered office, The Pavilion, Wilmslow Road, Didsbury, Manchester, M20 2LS.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
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.
ENERGIZE RECRUITMENT SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 11 -
Revenue for contract fee income is recognised on the date at which the client witnesses the timesheet for work performed.
Revenue for permanent fee income, both on a retained and non retained basis, is recognised at various trigger points depending on the terms of the contract. Revenue can be recognised at the following points;
The point at which the candidate accepts the job offer.
The point at which the candidate signs an employment contract.
A staged approach where the revenue is apportioned to different milestones including finding a candidate, a successful interview and signature of employment contract.
Some contracts for permanent fee income include clauses regarding failed placements. In such contracts, if a placement fails in an agreed time period (most usually 3 months), then Energize are contractually required to find a replacement or issue a refund.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
5-10 years straight line
Computers
33% 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.
1.5
Fixed asset investments
Interests in subsidiaries 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.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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).
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. 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.
1.7
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.
ENERGIZE RECRUITMENT SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.8
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.
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.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
ENERGIZE RECRUITMENT SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
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.
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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
ENERGIZE RECRUITMENT SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
2
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Provision of permanent labour
1,861,281
2,911,214
Provision of temporary labour
10,399,691
13,028,614
Other recruitment services
-
47,549
12,260,972
15,987,377
2024
2023
£
£
Turnover analysed by geographical market
UK and Europe
12,190,649
15,726,159
United States
70,323
261,218
12,260,972
15,987,377
2024
2023
£
£
Other revenue
Interest income
1,320
-
3
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
27,427
123,610
Fees payable to the company's auditor for the audit of the company's financial statements
16,250
15,000
Depreciation of owned tangible fixed assets
55,949
59,676
(Profit)/loss on disposal of tangible fixed assets
-
42,696
Operating lease charges
255,885
176,429
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Recruiters
32
47
Management and support
12
15
Total
44
62
ENERGIZE RECRUITMENT SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
4
Employees
(Continued)
- 15 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,306,957
3,115,731
Social security costs
216,359
350,694
Pension costs
41,432
57,373
2,564,748
3,523,798
5
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
12,000
12,000
Company pension contributions to defined contribution schemes
360
360
12,360
12,360
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
6
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
69,437
66,675
Adjustments in respect of prior periods
(88,598)
91,908
Total current tax
(19,161)
158,583
Deferred tax
Origination and reversal of timing differences
(12,960)
6,687
Adjustment in respect of prior periods
1,436
Total deferred tax
(11,524)
6,687
Total tax (credit)/charge
(30,685)
165,270
ENERGIZE RECRUITMENT SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Taxation
(Continued)
- 16 -
The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
372,732
520,004
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
93,183
122,305
Tax effect of expenses that are not deductible in determining taxable profit
1,655
2,358
Tax effect of income not taxable in determining taxable profit
(5,880)
Adjustments in respect of prior years
(74,042)
91,908
Group relief
(38,637)
(44,641)
Permanent capital allowances in excess of depreciation
(1,179)
Depreciation on assets not qualifying for tax allowances
1,712
Other non-reversing timing differences
399
S445 tax adjustment in respect of prior years
(14,556)
Taxation (credit)/charge for the year
(30,685)
165,270
7
Dividends
2024
2023
£
£
Interim paid
343,964
409,980
The dividends were paid to Energize Group Holdings Ltd for the purpose of loan interest payments and dividends payable to shareholders.
ENERGIZE RECRUITMENT SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
8
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 January 2024
186,216
192,016
378,232
Additions
311
311
At 31 December 2024
186,216
192,327
378,543
Depreciation and impairment
At 1 January 2024
20,605
139,570
160,175
Depreciation charged in the year
23,472
32,477
55,949
At 31 December 2024
44,077
172,047
216,124
Carrying amount
At 31 December 2024
142,139
20,280
162,419
At 31 December 2023
165,611
52,446
218,057
9
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
10
43,988
43,988
10
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
Energize Recruitment Solutions Inc,
200 Spectrum Center Drive Irvine, CA 92618, USA
Ordinary
100.00
Energize Recruitment Solutions GmbH
Landsbergerstrasse 155, 80687 Munich, Germany
Ordinary
100.00
Energize Recruitment Solutions Iberica SL
Carretera Fuencarral A Alcobendas S/n KM 3,800 ARBEA. 28108, Alcobendas, Madrid, Spain
Ordinary
100.00
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,964,157
2,447,413
Amounts owed by group undertakings
3,033,397
2,335,497
Other debtors
150,879
95,606
Prepayments and accrued income
145,041
131,075
5,293,474
5,009,591
ENERGIZE RECRUITMENT SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
14
50,000
50,000
Invoice discounting
14
561,071
277,427
Trade creditors
1,060,588
1,125,080
Amounts owed to group undertakings
61,323
Corporation tax
41,395
79,594
Other taxation and social security
86,722
107,083
Other creditors
44,597
37,702
Accruals and deferred income
209,454
251,046
2,115,150
1,927,932
13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
29,167
83,333
14
Loans and overdrafts
2024
2023
£
£
Bank loans
79,167
133,333
Invoice discounting
561,071
277,427
640,238
410,760
Payable within one year
611,071
327,427
Payable after one year
29,167
83,333
Three debentures are held over the assets of the company as at 31 December 2024, comprising fixed and floating charges held over all property and undertakings of the company.
These are held by HSBC Bank PLC (dated 16 August 2006), ABN AMRO Commercial Finance PLC (dated 6 September 2013), and ABN AMRO Asset Based Finance N.V. (dated 17 January 2019).
The bank loan has an interest rate of 3.99% per annum over the Bank of England base rate. The repayment terms are monthly ending in 2026.
ENERGIZE RECRUITMENT SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
29,965
40,497
Short term timing differences
(2,054)
(1,062)
27,911
39,435
2024
Movements in the year:
£
Liability at 1 January 2024
39,435
Credit to profit or loss
(11,524)
Liability at 31 December 2024
27,911
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
41,432
57,373
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.
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
5,000
5,000
5,000
5,000
Ordinary B of £1 each
5,000
5,000
5,000
5,000
10,000
10,000
10,000
10,000
ENERGIZE RECRUITMENT SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
18
Operating lease commitments
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 one year
165,086
165,086
Between two and five years
349,168
514,706
514,254
679,792
19
Related party transactions
As at 31 December 2024 amounts due from the director amounted to £22,530 (2023: £22,530). The amounts are interest free and repayable on demand.
20
Ultimate controlling party
The immediate parent and ultimate holding company of Energize Recruitment Solutions Limited is Energize Group Holdings Ltd and its registered office is The Pavillion, Towers Business Park, Wilmslow Road, Didsbury, Manchester, M20 2LS.
2024-12-312024-01-01falsefalsefalseCCH SoftwareCCH Accounts Production 2025.100Mr C Molloy058427612024-01-012024-12-3105842761bus:Director12024-01-012024-12-3105842761bus:RegisteredOffice2024-01-012024-12-31058427612024-12-31058427612023-01-012023-12-3105842761core:RetainedEarningsAccumulatedLosses2023-12-3105842761core:ShareCapital2024-12-3105842761core:ShareCapital2023-12-3105842761core:RetainedEarningsAccumulatedLosses2024-12-3105842761core:RetainedEarningsAccumulatedLosses2023-12-31058427612023-12-3105842761core:ShareCapitalOrdinaryShareClass12024-12-3105842761core:ShareCapitalOrdinaryShareClass12023-12-3105842761core:ShareCapitalOrdinaryShareClass22024-12-3105842761core:ShareCapitalOrdinaryShareClass22023-12-3105842761core:ShareCapitalOrdinaryShares2024-12-3105842761core:ShareCapitalOrdinaryShares2023-12-3105842761core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3105842761core:FurnitureFittings2024-12-3105842761core:ComputerEquipment2024-12-3105842761core:FurnitureFittings2023-12-3105842761core:ComputerEquipment2023-12-3105842761core:CurrentFinancialInstrumentscore:WithinOneYear2024-12-3105842761core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3105842761core:Non-currentFinancialInstrumentscore:AfterOneYear2024-12-3105842761core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3105842761core:CurrentFinancialInstruments2024-12-3105842761core:CurrentFinancialInstruments2023-12-3105842761core:FurnitureFittings2024-01-012024-12-3105842761core:ComputerEquipment2024-01-012024-12-3105842761core:UKTax2024-01-012024-12-3105842761core:UKTax2023-01-012023-12-310584276112024-01-012024-12-310584276112023-01-012023-12-310584276122024-01-012024-12-310584276122023-01-012023-12-3105842761core:FurnitureFittings2023-12-3105842761core:ComputerEquipment2023-12-31058427612023-12-3105842761core:Non-currentFinancialInstruments2024-12-3105842761core:Non-currentFinancialInstruments2023-12-3105842761core:Subsidiary12024-01-012024-12-3105842761core:Subsidiary22024-01-012024-12-3105842761core:Subsidiary32024-01-012024-12-3105842761core:Subsidiary112024-01-012024-12-3105842761core:Subsidiary222024-01-012024-12-3105842761core:Subsidiary332024-01-012024-12-3105842761bus:OrdinaryShareClass12024-01-012024-12-3105842761bus:OrdinaryShareClass22024-01-012024-12-3105842761bus:OrdinaryShareClass12024-12-3105842761bus:OrdinaryShareClass12023-12-3105842761bus:OrdinaryShareClass22024-12-3105842761bus:OrdinaryShareClass22023-12-3105842761bus:AllOrdinaryShares2024-12-3105842761bus:AllOrdinaryShares2023-12-3105842761core:WithinOneYear2024-12-3105842761core:WithinOneYear2023-12-3105842761core:BetweenTwoFiveYears2024-12-3105842761core:BetweenTwoFiveYears2023-12-3105842761bus:PrivateLimitedCompanyLtd2024-01-012024-12-3105842761bus:FRS1022024-01-012024-12-3105842761bus:Audited2024-01-012024-12-3105842761bus:FullAccounts2024-01-012024-12-31xbrli:purexbrli:sharesiso4217:GBP