1.
General Information
Azure Global Payroll Ltd
is a private company, limited by shares, incorporated in Scotland, registered number
SC754977
. The registered office is The Pentagon Centre Suite 225g, 36 Washington Street, Glasgow, G3 8AZ.
2.
Accounting Policies
2.1.
Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and 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 £.
2.2.
Going Concern Disclosure
The director has prepared forecasts for the next twelve months, which take account of the rising costs and expected demand based on current levels. The forecasts show that the company have adequate resources, including the availability of current bank funding 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. The director considers it appropriate to prepare the financial statements on a going concern basis of preparation for the reasons as set out in the Strategic Report.
2.3.
Significant judgements and estimations
Critical judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period 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:
Depreciation
Tangible fixed assets are depreciated over a period to reflect their estimated useful lives. The applicability of the assumed lives is reviewed annually, taking into account factors such as physical condition, maintenance and obsolescence.
Trade Debtors
Whether any bad debt provision is required via review of trade debtors. Factors consider include customer payment history and agreed payment terms.
2.4.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
Azure Global Payroll Ltd
Notes to the Financial Statements (continued)
For The Year Ended 5 April 2025
2.5.
Tangible Fixed Assets and Depreciation
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historic cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
The company adds to the carrying amount of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement is expected to provide incremental future benefits to its company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the statement of income and retained earnings during the period in which they are incurred.
Depreciation is charged so as to allocate the costs of assets less their residual value over the estimated useful lives, using the reducing balance method.
Depreciation is provided on the following basis:
| Fixtures & Fittings |
|
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the statement of income and retained earnings.
2.6.
Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.7.
Financial Instruments
2.7.
Financial Instruments - continued
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 contractural 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, including debtors and cash and bank balances, are iniitally 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.
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 occuring 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.
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.
...CONTINUED
Azure Global Payroll Ltd
Notes to the Financial Statements (continued)
For The Year Ended 5 April 2025
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.
2.8.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.
2.9.
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.
2.10.
Financial assets
Trade Debtors
Short term debtors are measured at transaction price, less any impairment.
2.11.
Financial Liabilities
Trade Creditors
Short term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Accrued expenses
Accrued expenses are expenses that have incurred in one accounting period, however, are not paid until a future accounting period.
Holiday pay accrual
A liability is recognised to the extent of any unused pay entitlement which is accrued at the statement of financial position date and carried forward to future accounting periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the statement of financial position date.
Azure Global Payroll Ltd
Notes to the Financial Statements (continued)
For The Year Ended 5 April 2025
3.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
4.
Operating Profit
The operating profit is stated after charging:
| 5 April 2025 | 5 April 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Bad debts | 6,448 | - | |
| Depreciation of tangible fixed assets |
|
|
|
5.
Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
| 5 April 2025 | 5 April 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Audit Services | |||
| Audit of the company's financial statements |
|
|
|
| Other Services | |||
| Other non-audit services |
|
|
|
6.
Staff Costs
Staff costs, including directors' remuneration, were as follows:
| 5 April 2025 | 5 April 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Wages and salaries |
|
|
|
| Social security costs |
|
|
|
| Other pension costs |
|
|
|
|
|
|
||
7.
Average Number of Employees
Average number of employees, including directors, during the year was as follows:
| 5 April 2025 | 5 April 2024 | ||
|---|---|---|---|
| Office and administration |
|
|
|
| Production |
|
|
|
|
|
|
||
Azure Global Payroll Ltd
Notes to the Financial Statements (continued)
For The Year Ended 5 April 2025
8.
Director's remuneration
| 5 April 2025 | 5 April 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Emoluments |
|
|
|
| Company contributions to money purchase pension schemes |
|
|
|
|
|
|
||
9.
Interest Receivable and Similar Income
| 5 April 2025 | 5 April 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Bank interest receivable |
|
|
|
10.
Interest Payable and Similar Charges
| 5 April 2025 | 5 April 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Factoring charges | 100,953 | 142,978 | |
11.
Tax on Profit
|
The tax charge on the profit for the year was as follows:
|
|||||
| Tax Rate | 5 April 2025 | 5 April 2024 | |||
|---|---|---|---|---|---|
| 5 April 2025 | 5 April 2024 | £ | £ | ||
| Current tax | |||||
| UK Corporation Tax | 25.0% | 25.0% |
|
|
|
| Total tax charge for the period |
|
|
|||
|
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
|
|||||
| 5 April 2025 | 5 April 2024 | ||||
| £ | £ | ||||
| Profit before tax | 162,684 | 68,988 | |||
| Tax on profit at 25% (UK standard rate) |
|
|
|||
| Expenses not deductible for tax purposes |
|
( |
|||
| Total tax charge for the period | 47,152 | 13,327 | |||
Azure Global Payroll Ltd
Notes to the Financial Statements (continued)
For The Year Ended 5 April 2025
12.
Tangible Assets
| Fixtures & Fittings | |
|---|---|
| £ | |
| Cost | |
| As at 6 April 2024 |
|
| Additions |
|
| As at 5 April 2025 |
|
| Depreciation | |
| As at 6 April 2024 |
|
| Provided during the period |
|
| As at 5 April 2025 |
|
| Net Book Value | |
| As at 5 April 2025 |
|
| As at 6 April 2024 |
|
13.
Debtors
| 5 April 2025 | 5 April 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Due within one year | |||
| Trade debtors |
|
|
|
| Other debtors | 2,212 | 10 | |
|
|
|
||
14.
Creditors: Amounts Falling Due Within One Year
| 5 April 2025 | 5 April 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Trade creditors |
|
|
|
| Other loans |
|
|
|
| Other creditors | 20,419 | 31,182 | |
| Corporation tax |
|
|
|
| Taxation and social security | 1,339,994 | 1,637,433 | |
| Accruals and deferred income | 65,658 | 19,596 | |
|
|
|
||
Of the creditors the following amounts are secured.
|
5 April 2025
|
5 April 2024
|
||
|
£
|
£
|
||
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|
|
||
|
The aggregate amount of secured liabilities included within creditors
|
482,234
![image](data:image/svg+xml;utf8,<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 80 5" preserveAspectRatio="none">
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|
848,171
|
Azure Global Payroll Ltd
Notes to the Financial Statements (continued)
For The Year Ended 5 April 2025
16.
Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
| 5 April 2025 | 5 April 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Not later than one year |
|
|
|
| Later than one year and not later than five years | - |
|
|
|
|
|
||
17.
Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to the profit and loss account in respect of defined contribution schemes was £55,824 (2024: £69,262).
At the balance sheet date contributions of £17,945 (2024: £22,601) were due to the fund and are included in creditors.
18.
Directors Advances, Credits and Guarantees
Included within Debtors are the following loans to directors:
| As at 6 April 2024 | Amounts advanced | Amounts repaid | Amounts written off | As at 5 April 2025 | |
|---|---|---|---|---|---|
| £ | £ | £ | £ | £ | |
| Mr Christopher Fahey |
|
|
|
- |
|
The above loan is unsecured, interest free and repayable on demand.
19.
Dividends
| 5 April 2025 | 5 April 2024 | ||
|---|---|---|---|
| £ | £ | ||
| On equity shares: | |||
| Final dividend paid |
|
|
|