One Way Resourcing Ltd - Limited company accounts 18.2

REGISTERED NUMBER: 05271250 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE PERIOD

2ND APRIL 2018 TO 31ST MARCH 2019

FOR

ONE WAY RESOURCING LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

D Bartlett

P Payne

M Ward

E Davis

SECRETARY:

P Payne

REGISTERED OFFICE:

Fareham House

69 High Street

Fareham

Hampshire

PO16 7BB

REGISTERED NUMBER:

05271250 (England and Wales)

AUDITORS:

Wilkins Kennedy Audit Services

Registered Auditors

Fareham House

69 High Street

Fareham

Hampshire

PO16 7BB

The directors present their strategic report for the period 2nd April 2018 to 31st March 2019.

REVIEW OF BUSINESS

The directors are pleased with with the results for the period under review.

Income has shown a decrease of 12% totalling £3,215,497, the gross profit margin has reduced to 12.8% from 13.3%.

Profit for the period before tax has also reduced from £618,058 to £380,504.

The company showed a strong financial position of net assets at the period end of £369,331.

The directors regard the KPI's to be as follows:

Gross profit margin

This is an important indicator as it indicates what margin the group makes on the labour it supplies.

The margin reduced in the year from 13.3% to 12.8%.

There are no other KPI's which the directors feel are relevant.

PRINCIPAL RISKS AND UNCERTAINTIES

In the course of normal business, the company continually assesses significant risks faced and takes action to mitigate

the potential impacts. The principal risks (which is not intended to be a comprehensive analysis) facing the company

are as follows:-

Trade debtors are managed in respect of credit offered to customers and the regular monitoring of amounts outstanding.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet the amounts as they fall due.

Financial risk generally is managed through a prudent approach to the company funding. The company predominantly

uses its own capital and reserves, together with invoice discounting to manage working capital requirements.

Risks posed by the current economic and market conditions are managed by ensuring the company operates from an

efficient cost base.

The company recognises that there has been a reduction in turnover and related profits and have already taken steps to

ensure the ongoing concern of the business into the next financial year and beyond. This in turn has led to a strategic

decision to close the Liverpool office and our construction division in Uxbridge, which we have consolidated into our

Southampton site. The work and revenue from these offices is still ongoing but this is now being serviced by our

capability in Southampton and in turn has allowed the management team to focus firmly on increasing sales and driving

the business forward.

Tax legislation risk with the introduction in 2014 of the Intermediaries Legislation 2014 there is a risk that employment

status of temporary placements could be challenged. The company regularly audits its suppliers to ensure they are

meeting the requirements of the legislation. If they are found not to be, they will no longer be an approved supplier. This

is an on-going process to ensure the risk is monitored and mitigated where possible.

ON BEHALF OF THE BOARD:

D Bartlett - Director

20th December 2019

The directors present their report with the financial statements of the company for the period 2nd April 2018 to 31st March 2019.

DIVIDENDS

The total distribution of dividends for the period ended 31st March 2019 is £390,346.

RESEARCH AND DEVELOPMENT

During the period the company undertook research and development activities on their internal front of house system.

The development of this will continue for the foreseeable future.

FUTURE DEVELOPMENTS

The company will continue to focus on its strategy of delivering organic growth into the 2020 financial year.

DIRECTORS

The directors shown below have held office during the whole of the period from 2nd April 2018 to the date of this report.

D Bartlett

P Payne

M Ward

Other changes in directors holding office are as follows:

L C R Austin - resigned 3rd September 2018

S Crawford - resigned 3rd September 2018

E Davis was appointed as a director after 31st March 2019 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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;

-	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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to

have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that

the company's auditors are aware of that information.

AUDITORS

The auditors, Wilkins Kennedy Audit Services, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

D Bartlett - Director

20th December 2019

Opinion

We have audited the financial statements of One Way Resourcing Ltd (the 'company') for the period ended

31st March 2019 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of

Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements,

including a summary of 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 31st March 2019 and of its profit for the period then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Our responsibilities under those standards are further described in the Auditors' 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic

Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors

thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise

explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or our knowledge

obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or

apparent material misstatements, we are required to determine whether there is a material misstatement in the financial

statements or a material misstatement of the other information. If, based on the work we have performed, we conclude

that there is a material misstatement of this other information, we are required to report that fact. 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 the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit,

we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you

if, in our opinion:

-	adequate accounting records have not been kept, 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 Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors 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 for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those

matters we are required to state to them in a Report of the Auditors 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.

J R Reilly ACCA (Senior Statutory Auditor)

for and on behalf of Wilkins Kennedy Audit Services

Registered Auditors

Fareham House

69 High Street

Fareham

Hampshire

PO16 7BB

20th December 2019

TURNOVER

4

23,464,759

26,680,256

Cost of sales

(20,463,217

)

(23,143,180

)

GROSS PROFIT

3,001,542

3,537,076

Administrative expenses

(2,451,734

)

(2,749,714

)

OPERATING PROFIT

6

549,808

787,362

Interest receivable and similar income

-

240

549,808

787,602

Interest payable and similar expenses

8

(169,304

)

(169,544

)

PROFIT BEFORE TAXATION

380,504

618,058

Tax on profit

9

(73,189

)

(87,272

)

PROFIT FOR THE FINANCIAL PERIOD

307,315

530,786

PROFIT FOR THE PERIOD

307,315

530,786

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

307,315

530,786

FIXED ASSETS

Tangible assets

11

129,422

173,507

Investments

12

-

464

129,422

173,971

CURRENT ASSETS

Debtors

13

4,178,902

5,244,541

Cash at bank and in hand

5,349

11,992

4,184,251

5,256,533

CREDITORS

Amounts falling due within one year

14

3,850,572

4,747,506

NET CURRENT ASSETS

333,679

509,027

TOTAL ASSETS LESS CURRENT LIABILITIES

463,101

682,998

CREDITORS

Amounts falling due after more than one year

15

(93,402

)

(128,756

)

PROVISIONS FOR LIABILITIES

20

(368

)

(1,379

)

NET ASSETS

369,331

552,863

CAPITAL AND RESERVES

Called up share capital

21

103

116

Capital redemption reserve

22

45

33

Retained earnings

22

369,183

552,714

SHAREHOLDERS' FUNDS

369,331

552,863

The financial statements were approved by the Board of Directors on 20th December 2019 and were signed on its behalf by:

D Bartlett - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 3rd April 2017

116

481,091

33

481,240

Changes in equity

Dividends

-

(459,163

)

-

(459,163

)

Total comprehensive income

-

530,786

-

530,786

Balance at 1st April 2018

116

552,714

33

552,863

Changes in equity

Purchase of own shares

(13

)

(100,500

)

12

(100,501

)

Dividends

-

(390,346

)

-

(390,346

)

Total comprehensive income

-

307,315

-

307,315

Balance at 31st March 2019

103

369,183

45

369,331

Cash flows from operating activities

Cash generated from operations

1

1,701,832

253,767

Interest paid

(158,843

)

(161,897

)

Interest element of finance lease payments paid

(10,461

)

(7,647

)

Tax paid

(86,346

)

(86,867

)

Net cash from operating activities

1,446,182

(2,644

)

Cash flows from investing activities

Purchase of tangible fixed assets

-

(11,751

)

Interest received

-

240

Net cash from investing activities

-

(11,511

)

Cash flows from financing activities

Amounts (repaid)/loaned to subsidiaries

(136

)

-

Amounts loaned to connected companies

(66,000

)

-

Capital repayments in year

(32,924

)

(23,027

)

Amount withdrawn by directors

(1,539

)

(4,810

)

Share buyback

(100,500

)

-

Increase/(decrease) in invoice financing

(864,253

)

490,693

Equity dividends paid

(390,346

)

(459,163

)

Net cash from financing activities

(1,455,698

)

3,693

Decrease in cash and cash equivalents

(9,516

)

(10,462

)

Cash and cash equivalents at beginning of period

2

11,992

22,454

Cash and cash equivalents at end of period

2

2,476

11,992

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

Period

2/4/18

3/4/17

to

to

31/3/19

1/4/18

£

£

Profit before taxation

380,504

618,058

Depreciation charges

44,085

29,047

Finance costs

169,304

169,544

Finance income

-

(240

)

593,893

816,409

Decrease/(increase) in trade and other debtors

1,131,639

(412,268

)

Decrease in trade and other creditors

(23,700

)

(150,374

)

Cash generated from operations

1,701,832

253,767

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of

these Balance Sheet amounts:

Period ended 31st March 2019

31/3/19

2/4/18

£

£

Cash and cash equivalents

5,349

11,992

Bank overdrafts

(2,873

)

-

2,476

11,992

Period ended 1st April 2018

1/4/18

3/4/17

£

£

Cash and cash equivalents

11,992

22,454

1.	GENERAL INFORMATION

One Way Resourcing Limited is a private company, limited by shares, registered in England and Wales. The

company's registered number and registered office address can be found on the General Information page.

The head office of the company is Unit 6-7, Cross House Centre, Crosshouse Road, Southampton SO14 5GZ.

The principal activity of the company in the year under view was that of a recruitment agency, operating

throughout the United Kingdom.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements

The financial statements contain information about One Way Resourcing Limited as an individual company and

do not contain consolidated financial information as the parent of a group. The company is exempt under section

402 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as the

directors consider that all of the company's subsidiaries may be excluded from consolidation for the reason set

out in note 12.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors,

including expectations of future events that are believed to be reasonable under the circumstances.

Critical judgements in applying the entity’s accounting policies

Classification of a leases:

Determining whether leases entered into by the company as a lessee are operating leases or finance leases.

These decisions depend on an assessment of whether the risks and rewards of ownership have been to the

transferred company.

Classification of invoice discounting facility:

The company operates an invoice discounting facility. The directors have determined the substance of the

transaction is a loan secured against the trade debtors. This decision is based on the risks and rewards of

ownership remaining with the company.

Critical accounting estimates and assumptions

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will,

by definition, seldom equal the related actual results.

Impairment of debtors:

The company makes an estimate of the recoverable value of trade and other debtors. When assessing

impairment of trade and other debtors, management considers factors including the current credit rating of the

debtor, the ageing profile of debtors and historical experience. See note 13 for the net carrying amount of the

debtors and associated impairment provision.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates

and value added tax.

The company recognises turnover when the amount of turnover can be measured reliably; it is probable that

future economic benefits will flow to the entity and when the specific criteria relating to the each of company’s

sales channels have been met, as described below.

Temporary placements are recognised in the accounting period in which the services are rendered.

Permanent placements are recognised in the accounting period in which the candidate commences their

employment.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

Straight line over 5 years

Fixtures and fittings

-

Straight line over 3 years

Computer equipment

-

Straight line over 3 years

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost

includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its

intended use, dismantling and restoration costs and borrowing costs capitalised.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws

that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal

of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

The company’s functional and presentation currency is the pound sterling.

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling

at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those

held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance

leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.