Company registration number 09634106 (England and Wales)
PREMIUM PAYROLL SOLUTIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
PREMIUM PAYROLL SOLUTIONS LIMITED
COMPANY INFORMATION
Directors
A Lloyd
P J Travis
Company number
09634106
Registered office
Hollinwood Business Centre
Albert Street
Failsworth
Oldham
United Kingdom
OL8 3QL
Auditor
Bennett Verby Limited
Chartered Certified Accountants
7 St. Petersgate
Stockport
Greater Manchester
England
SK1 1EB
PREMIUM PAYROLL SOLUTIONS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 19
PREMIUM PAYROLL SOLUTIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -
The directors present the strategic report for the year ended 31 August 2024.
Review of the business
The revenue for the year increased by 2.7% on 2023 to just shy of £16m. The directors are satisfied with this outcome given the economic climate we continue to operate in.
Gross Profit margins remained similar at 2.7% compared with 2.8% in the previous year, and were as expected.
Cashflow has been managed well with trade and HMRC creditors continued to be paid on time throughout the year.
The directors are not aware of any significant future developments and are expected to organically grow revenue and therefore profit over the next year and beyond at the same rate as previous years.
Principal risks and uncertainties
The Company finances its operations through a mixture of retained profits and working capital management. The management's objectives are to:
- retain sufficient liquid funds to enable it to meet its day to day obligations as they fall due.
- The group's credit risk is primarily attributable to its trade debtors. This is an area of considerable investment across the Group to ensure debtors days are kept to a minimum, especially given the tough economic climate a lot of business are operating in.
- It is the group's policy that payments to suppliers are made in accordance with those terms and conditions agreed between the group and it's suppliers, provided that all trading terms and conditions have been complied with.
A Lloyd
Director
29 August 2025
PREMIUM PAYROLL SOLUTIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 August 2024.
Principal activities
The principal activity of the company continued to be that of temporary employment agency activities.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. 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:
A Lloyd
P J Travis
Auditor
In accordance with the company's articles, a resolution proposing that Bennett Verby Limited be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of likely future developments in the business of the company.
PREMIUM PAYROLL SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -
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
A Lloyd
Director
29 August 2025
PREMIUM PAYROLL SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PREMIUM PAYROLL SOLUTIONS LIMITED
- 4 -
Opinion
We have audited the financial statements of Premium Payroll Solutions Limited (the 'company') for the year ended 31 August 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 August 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
PREMIUM PAYROLL SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PREMIUM PAYROLL SOLUTIONS LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Extent to which the audit was capable of detecting irregularities, including fraud
The primary responsibility for the prevention and detection of fraud rests with directors and management, and we cannot be expected to detect non-compliance with all laws and regulations.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our knowledge of the business and sector, enquiries of directors and management, and review of regulatory information and correspondence. We communicated identified laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
We discussed with directors and management the policies and procedures in place to ensure compliance with laws and regulations and otherwise prevent, deter and detect fraud.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified as potentially having a material effect on the financial statements. Our procedures included review of financial statement information and testing of that information, enquiry of management and examination of relevant documentation, analytical procedures to identify unusual or unexpected relationships that may indicate fraud, and procedures to address the risk of fraud through director or management override of controls.
A further description of our responsibilities 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.
PREMIUM PAYROLL SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PREMIUM PAYROLL SOLUTIONS LIMITED (CONTINUED)
- 6 -
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.
Ian Buckley (Senior Statutory Auditor)
For and on behalf of Bennett Verby Limited, Statutory Auditor
Chartered Certified Accountants
7 St. Petersgate
Stockport
Greater Manchester
SK1 1EB
England
29 August 2025
PREMIUM PAYROLL SOLUTIONS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
15,902,766
15,484,261
Cost of sales
(15,461,626)
(15,043,631)
Gross profit
441,140
440,630
Administrative expenses
(260,026)
(311,405)
Operating profit
4
181,114
129,225
Interest receivable and similar income
4,767
11,835
Interest payable and similar expenses
6
(11,440)
(15,244)
Profit before taxation
174,441
125,816
Tax on profit
7
(44,829)
(29,570)
Profit for the financial year
129,612
96,246
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PREMIUM PAYROLL SOLUTIONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
2024
2023
£
£
Profit for the year
129,612
96,246
Other comprehensive income
-
-
Total comprehensive income for the year
129,612
96,246
PREMIUM PAYROLL SOLUTIONS LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 9 -
2024
2023
Notes
£
£
£
£
Current assets
Debtors
8
1,546,276
1,710,547
Cash at bank and in hand
244,302
187,623
1,790,578
1,898,170
Creditors: amounts falling due within one year
9
(986,891)
(1,174,095)
Net current assets
803,687
724,075
Creditors: amounts falling due after more than one year
10
(79,167)
(129,167)
Net assets
724,520
594,908
Capital and reserves
Called up share capital
12
100
100
Profit and loss reserves
13
724,420
594,808
Total equity
724,520
594,908
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 29 August 2025 and are signed on its behalf by:
A Lloyd
Director
Company registration number 09634106 (England and Wales)
PREMIUM PAYROLL SOLUTIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 September 2022
100
498,562
498,662
Year ended 31 August 2023:
Profit and total comprehensive income
-
96,246
96,246
Balance at 31 August 2023
100
594,808
594,908
Year ended 31 August 2024:
Profit and total comprehensive income
-
129,612
129,612
Balance at 31 August 2024
100
724,420
724,520
PREMIUM PAYROLL SOLUTIONS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
16
328,112
(350,992)
Interest paid
(11,440)
(15,244)
Income taxes paid
(83,588)
(15,629)
Net cash inflow/(outflow) from operating activities
233,084
(381,865)
Investing activities
Interest received
4,767
11,835
Net cash generated from investing activities
4,767
11,835
Financing activities
New loans in year
(1,300,000)
Repayment of bank loans
(50,000)
(50,003)
Amount introduced by directors
-
1,300,000
Amount withdrawn by directors
(131,172)
(131,835)
Net cash used in financing activities
(181,172)
(181,838)
Net increase/(decrease) in cash and cash equivalents
56,679
(551,868)
Cash and cash equivalents at beginning of year
187,623
739,491
Cash and cash equivalents at end of year
244,302
187,623
PREMIUM PAYROLL SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -
1
Accounting policies
Company information
Premium Payroll Solutions Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hollinwood Business Centre, Albert Street, Failsworth, Oldham, United Kingdom, OL8 3QL.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.4
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.
1.5
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.
PREMIUM PAYROLL SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 13 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
PREMIUM PAYROLL SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 14 -
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.
1.6
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.
1.7
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.
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.
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
PREMIUM PAYROLL SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 15 -
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.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
15,902,766
15,484,261
2024
2023
£
£
Other revenue
Interest income
4,767
11,835
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
8,500
8,500
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Direct Labour
136
149
PREMIUM PAYROLL SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
5
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
15,269,507
14,853,700
Social security costs
178,008
177,254
Pension costs
12,261
12,677
15,459,776
15,043,631
6
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
11,379
15,244
Other finance costs:
Other interest
61
11,440
15,244
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
44,222
29,570
Adjustments in respect of prior periods
607
Total current tax
44,829
29,570
PREMIUM PAYROLL SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
7
Taxation
(Continued)
- 17 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
174,441
125,816
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.03%)
43,610
26,459
Tax effect of expenses that are not deductible in determining taxable profit
612
3,111
Under/(over) provided in prior years
607
Taxation charge for the year
44,829
29,570
8
Debtors
2024
2023
Amounts falling due within one year:
£
£
Other debtors
1,546,276
1,710,547
Debtors includes a loan of £1.3m to Visual Science Limited, which owns 20% of the company's shares. This loan is repayable on either the future sale of the company to a third party or on the sale of the 20% shareholding to a third party. Recoverability of this loan is therefore dependent on such a share sale being made, and on the sale proceeds of the 20% shareholding being at least £1.3m. The directors consider that both these assumptions are correct, based on their future intentions for the company, and expected future growth of the company prior to sale. This valuation is based on the future share sale also including the sale of its related company, Site Contract Personnel Limited, which has common directorship.
Note 2 refers to the Company's policy on significant judgements and estimates.
9
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
11
50,000
50,000
Trade creditors
7,400
3,666
Corporation tax
44,207
82,966
Other taxation and social security
578,064
592,194
Other creditors
296,645
434,819
Accruals and deferred income
10,575
10,450
986,891
1,174,095
PREMIUM PAYROLL SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 18 -
10
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
11
79,167
129,167
11
Loans and overdrafts
2024
2023
£
£
Bank loans
129,167
179,167
Payable within one year
50,000
50,000
Payable after one year
79,167
129,167
12
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
10,000
10,000
100
100
The ordinary shares of the company have full voting rights and full entitlement to profit and capital distributions.
13
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
594,808
498,562
Profit for the year
129,612
96,246
At the end of the year
724,420
594,808
14
Related party transactions
During the year sales were made to Site Contract Personnel Limited, a company with common directorship, of £15,902,766 (2023: £15,484,261). Purchases were made to Site Contract Personnel Limited of 44,677 (2023: £62,532).
Amounts owed to the related party at the Balance Sheet date totaled £29,768 (2023: £228,255 debtor).
During the year purchases were made to Site Contract Investments Limited, a company with common directorship, of £60,000 (2023: £60,000). All invoices were paid during the year.
PREMIUM PAYROLL SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 19 -
15
Directors' transactions
Included within other debtors are amounts owed from the directors of £246,229 (2023: £182,291).
These loans incur interest at 2.25% and are repayable on demand.
Included within other creditors are amounts owed to the directors of £266,534 (2023: £333,767).
These loans are interest free and are repayable on demand.
During the year management charges to the directors of £9,086 (2023: £nil) were paid to the directors.
During the prior year a loan was made to Visual Science Limited of £1,300,000 of which £1,300,000 (2023; £1,300,000) was outstanding at the Balance Sheet date. Visual Science is a 20% shareholder of the company and the loan was provided to finance the company purchasing its shareholding from the directors. The loan is interest free and not repayable until the sale of their shares in the company.
16
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit after taxation
129,612
96,246
Adjustments for:
Taxation charged
44,829
29,570
Finance costs
11,440
15,244
Investment income
(4,767)
(11,835)
Movements in working capital:
Decrease in debtors
228,208
152,433
Decrease in creditors
(81,210)
(632,650)
Cash generated from/(absorbed by) operations
328,112
(350,992)
17
Analysis of changes in net funds
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
187,623
56,679
244,302
Borrowings excluding overdrafts
(179,167)
50,000
(129,167)
8,456
106,679
115,135
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