Angela Mortimer and Pathfinders Limited - Limited company accounts 20.1

REGISTERED NUMBER: 06504877 (England and Wales)

Report of the Directors and

Financial Statements for the Year Ended 30 June 2019

for

ANGELA MORTIMER AND PATHFINDERS LIMITED

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Statement of Comprehensive Income

6

Statement of Financial Position

7

Statement of Changes in Equity

8

Notes to the Financial Statements

9

DIRECTORS:

W L Mortimer

A J Mortimer

REGISTERED OFFICE:

76 Wardour Street

London

W1F 0UR

REGISTERED NUMBER:

06504877 (England and Wales)

AUDITORS:

Thorne Lancaster Parker

Chartered Accountants &

Statutory Auditors

4th Floor

Venture House

27-29 Glasshouse Street

London

W1B 5DF

The directors present their report with the financial statements of the company for the year ended 30 June 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of providing recruitment and consultancy

services.

DIVIDENDS

No dividends will be distributed for the year ended 30 June 2019.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 July 2018 to the date of this report.

W L Mortimer

A J Mortimer

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company's financial instruments comprise borrowings and various items, such as trade debtors, trade creditors etc,

that arise directly from its operations. It is the company policy and has been throughout the year that no trading in

financial instruments shall be undertaken.

The main risk arising from its financial instruments is interest rate risk. The policy for managing this risk adopted during

the year is summarised below. This policy has remained unchanged throughout the year.

Interest rate risk

The company finances its operations through a mixture of bank borrowings (Group facility) and equity capital. Interest

on borrowings is payable at 2.5% above the Bank of England base rate as long as this rate is above 0.5% The company

does not enter into any interest rate derivative transactions to manage interest rate risk.

GOING CONCERN

The Directors have reviewed the Financial Reporting Council's Guidance on the going concern basis of accounting and

reporting on solvency and liquidity risks that was issued in April 2016 and current guidance.

When assessing the company's ability to continue trading as a going concern the directors have reviewed the cash flows

of the company for the 12 months to 31 May 2021. The review has encapsulated cash flows and working capital

requirements as known at the date of this report.

As a result of Covid-19 the company has suffered a deterioration in its current trading and estimation of the short to

medium term trading environment is not reliable. As such the directors have stress tested the 12-month period cashflows

to 31 May 2021 by reducing sales and cash collection to a materially unusual amount.

The Directors have reasonable expectations that the Company have adequate resources to continue their operational

existence for the foreseeable future. Accordingly they continue to adopt a going concern basis of accounting in the

preparing the Annual Report and Accounts.

STRATEGIC REPORT

Exemption has been taken from preparing the strategic report in accordance with section 414 of Companies Act 2006.

The group strategic report has been included in the consolidated financial statements of the parent company Angela

Mortimer Plc. The following elements have been included in the group strategic report which also relate to the

undertakings included in the consolidation:

- Review of the development, performance of the group's business during the year including financial key

performance indicators;

- Review of the position of the group as at the year end;

- Principal risks and uncertainties faced;

- The group's supplier payment policy;

- Future developments of the group

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing 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), including Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

ON BEHALF OF THE BOARD:

W L Mortimer - Director

21 May 2020

Opinion

We have audited the financial statements of Angela Mortimer and Pathfinders Limited (the 'company') for the year

ended 30 June 2019 which comprise the Statement of Comprehensive Income, Statement of Financial Position,

Statement of Changes in Equity and 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 30 June 2019 and of its loss for the year then ended;

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

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

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.

Emphasis of matter

We draw your attention to the disclosures in the notes to the financial statements: accounting policies and the strategic

report in relation to the material uncertainty that exists in relation to the impact of Covid-19 on the company's ability to

continue as a going concern. We have reviewed the directors assertions in relation to cashflow and forecasts over the

next 12 months and consider these to be adequately disclosed in the financial statements. As such we emphasise this

matter but our report is not qualified in respect thereto.

Other information

The directors are responsible for the other information. The other information comprises the information in 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has 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 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.

Stephen Parker (Senior Statutory Auditor)

for and on behalf of Thorne Lancaster Parker

Chartered Accountants &

Statutory Auditors

4th Floor

Venture House

27-29 Glasshouse Street

London

W1B 5DF

22 May 2020

REVENUE

605,608

1,011,893

Cost of sales

457,121

786,164

GROSS PROFIT

148,487

225,729

Administrative expenses

205,527

295,129

OPERATING LOSS and

LOSS BEFORE TAXATION

(57,040

)

(69,400

)

Tax on loss

6

(10,835

)

(12,963

)

LOSS FOR THE FINANCIAL YEAR

(46,205

)

(56,437

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(46,205

)

(56,437

)

CURRENT ASSETS

Debtors

7

99,979

170,265

CREDITORS

Amounts falling due within one year

8

212,605

236,686

NET CURRENT LIABILITIES

(112,626

)

(66,421

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(112,626

)

(66,421

)

CAPITAL AND RESERVES

Called up share capital

10

10,100

10,100

Retained earnings

11

(122,726

)

(76,521

)

SHAREHOLDERS' FUNDS

(112,626

)

(66,421

)

The financial statements were approved by the Board of Directors and authorised for issue on 21 May 2020 and were signed on its behalf by:

W L Mortimer - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 July 2017

10,100

(20,084

)

(9,984

)

Changes in equity

Total comprehensive income

-

(56,437

)

(56,437

)

Balance at 30 June 2018

10,100

(76,521

)

(66,421

)

Changes in equity

Total comprehensive income

-

(46,205

)

(46,205

)

Balance at 30 June 2019

10,100

(122,726

)

(112,626

)

1.	STATUTORY INFORMATION

Angela Mortimer and Pathfinders 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 Company

Information page.

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

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. The

financial statements have been prepared under the historical cost convention.

Going Concern

Due to the material uncertainty arising as a direct result of the disruption caused by the Covid-19 virus the

directors have reviewed the company's ability to continue as a going concern taking into account the potential

impact on the company's future cashflows. The directors have stress tested the 12-month period cashflows to 31

May 2021 by reducing sales and cash collection to a materially unusual amount. Based on the results of the

testing the directors believe the company has sufficient resources to continue as a going concern for the

foreseeable future and as such consider the going concern basis for the preparation of the financial statements to

be appropriate.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements,

as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Turnover

Turnover from temporary placements is recognised when the service is provided. Turnover from permanent

placements, which is based on a percentage of the candidate's remuneration package, is recognised when the

candidate commences employment.

Turnover is stated net of VAT and provisions are made for refunds that may be due on this turnover.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive

Income, except to the extent that it relates to items recognised in other comprehensive income or directly in

equity.

Current or deferred taxation assets and liabilities are not discounted.

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 statement of financial position date.

Taxation

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

statement of financial position 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 year 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.

Financial instruments

The company has chosen to adopt Section 11 of FRS 102 in respect of financial instruments as it has only basic

financial instruments.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at

transaction price. Any losses arising from impairment are recognised in the income statement in other operating

expenses.

4.	EMPLOYEES AND DIRECTORS

2019

2018

£

£

Wages and salaries

61,152

121,105

Social security costs

5,228

11,688

66,380

132,793

The average number of employees during the year was as follows:

2019

2018

Sales

3

5

2019

2018

£

£

Directors' remuneration

-

-

5.	OPERATING LOSS

The operating loss is stated after charging:

2019

2018

£

£

Auditors remuneration

1,525

1,450

6.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

2019

2018

£

£

Current tax:

UK corporation tax

(10,835

)

(12,963

)

Tax on loss

(10,835

)

(12,963

)

Reconciliation of total tax credit included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is

explained below:

2019

2018

£

£

Loss before tax

(57,040

)

(69,400

)

Loss multiplied by the standard rate of corporation tax in the UK of 19% (2018 - 19%)

(10,838

)

(13,186

)

Effects of:

Expenses not deductible for tax purposes

3

223

Total tax credit

(10,835

)

(12,963

)

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

89,144

157,302

Other debtors

10,835

12,963

99,979

170,265

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Amounts owed to group undertakings

198,731

207,229

Other creditors

13,804

28,519

Accruals and deferred income

70

938

212,605

236,686

9.	FINANCIAL INSTRUMENTS

The company has the following financial instruments:

Financial assets that are debt instruments

2019

2018

measured at amortised cost

£

£

Trade receivables

89,144

157,302

Other debtors

10,835

12,963

99,979

170,265

Financial liabilities that are debt instruments

2019

2018

measured at amortised cost

£

£

Other creditors

13,804

28,519

Amounts due to group undertakings

198,731

207,229

Accruals

70

938

212,605

236,686

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2019

2018

value:

£

£

10,000

Ordinary A

£1

10,000

10,000

100

Preferred

£1

100

100

10,100

10,100

11.

RESERVES

Retained

earnings

£

At 1 July 2018

(76,521

)

Deficit for the year

(46,205

)

At 30 June 2019

(122,726

)

12.	ULTIMATE PARENT COMPANY

The ultimate parent company is Angela Mortimer Plc. The company results have been included in the

consolidated financial statements of Angela Mortimer Plc. Copies of these accounts can be obtained from

Companies House, Crown Way, Cardiff, CF14 3UZ.

13.	CONTINGENT LIABILITIES

The company is party to a cross guarantee and debenture to secure borrowings under the group's invoice

discounting facility. The amount of borrowings under this facility at the year end was £1,187,321 (2018:

£1,321,787). The company is also part of a VAT group. The amount of the group VAT liability at 30 June 2019

was £325,099 (2018: £451,421).

14.	RELATED PARTY DISCLOSURES

The movement in the intercompany account with Angela Mortimer Plc during the year was a decrease in the

amounts owed to Angela Mortimer and Pathfinders Limited by Angela Mortimer Plc of £8,498 (2018: increased

£45,518). The balance on this account at the year end was an amount owed to Angela Mortimer Plc of £198,731

(2018: £207,229). Angela Mortimer and Pathfinders Limited is an 100% subsidiary of Angela Mortimer Plc.

15.	POST BALANCE SHEET EVENTS

In February 2020 a global pandemic was declared due to the Covid-19 virus. The subsequent worldwide

economic disruption includes the recruitment sector. The directors have reviewed detailed forecasts and

cashflows and believe the company remains a going concern.

16.	ULTIMATE CONTROLLING PARTY

In the opinion of the directors the company is controlled by WL Mortimer and AJ Mortimer, who are the

majority shareholders of the ultimate parent company, Angela Mortimer Plc.