AGS Support Services Limited - Limited company accounts 20.1

REGISTERED NUMBER: 07956871 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2021

FOR

AGS SUPPORT SERVICES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

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:

A I A Sim

Ms D James

J Waller

SECRETARY:

Ms D James

REGISTERED OFFICE:

Unit D Prospect House

The Hyde Business Park

The Hyde

Brighton

East Sussex

BN2 4JE

REGISTERED NUMBER:

07956871 (England and Wales)

AUDITORS:

Carlton Haines Limited

Statutory Auditors

Chartered Accountants

Carlton House

28-29 Carlton Terrace

Portslade

Brighton

BN41 1UR

The Directors present their Strategic Report together with audited financial statements for the year ended 30 September 2021.

Principal activities, review of business and future developments

The principal activity of the company for the year under review was that of a recruitment agency and training centre.

The Directors are pleased to report the results of the company for the year.

The Directors will continue to monitor all aspects of the business and costs within the company and will continue to review opportunities as they arise.

There are no planned changes to the company's activities in 2021/22 other than expansion of our existing services.

Key Performance Indicators

2021

2020

Method calculation

Gross Profit (%)

6.93%

8.63%

Gross profit adjusted for Furlough divided by turnover

Net Profit (%)

1.85%

2.27%

Net profit before tax divided by turnover

Movement in cash (£'000)

(594)

(202)

Net increase/(decrease) in cash

Average no. of staff

369

403

Average no. taken from payroll

The Board and senior management also monitor non-financial key performance indicators, which include: customer satisfaction, as measured by independent third parties, % fulfilment of booking requests, diversity across candidate recruitment including BAME, and reporting equality of gender pay in accordance with government statistical requirements.

REVIEW OF FINANCIAL POSITION

As a result of the profit for the year, the company's net assets and net current assets have increased by £50,415.

The overall net cash position has increased as a result of the company's profitability. The cash position is reviewed daily by management and the company continues to have a good relationship with its bankers. The company does not currently have any bank borrowings.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the company and the execution of the group's strategy are subject to a number of risks, such as the competitive market place and the UK economy. Although the company engages a high number of foreign nationals, the impact of Brexit on the company's ability to recruit is not considered to be significant.

ON BEHALF OF THE BOARD:

Director

29 June 2022

The directors present their report with the financial statements of the company for the year ended 30 September 2021.

DIVIDENDS

During the year a dividend of £75000 was paid to the holding company, Anti Graffiti Systems Limited.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2020 to the date of this report.

A I A Sim

Ms D James

J Waller

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, Carlton Haines Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A I A Sim - Director

29 June 2022

Opinion

We have audited the financial statements of AGS Support Services Limited (the 'company') for the year ended 30 September 2021 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 30 September 2021 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.

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

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.

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 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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:

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/auditors responsibilities. This description forms part of our Report of the Auditors. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

-We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that related were FRS 102, the Companies Act 2006, taxation legislation, employment law and IR35.

-We identified the laws and regulations applicable to the company through discussion with directors and other management and from our knowledge and experience of the Agency worker sector the company operates in; and

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.

Nigel Paul Griggs FCA (Senior Statutory Auditor)

for and on behalf of Carlton Haines Limited

Statutory Auditors

Chartered Accountants

Carlton House

28-29 Carlton Terrace

Portslade

Brighton

BN41 1UR

29 June 2022

TURNOVER

8,414,080

8,908,784

Cost of sales

7,838,980

8,496,681

GROSS PROFIT

575,100

412,103

Administrative expenses

427,231

566,687

147,869

(154,584

)

Other operating income

7,945

357,040

OPERATING PROFIT and

PROFIT BEFORE TAXATION

155,814

202,456

Tax on profit

5

30,399

39,813

PROFIT FOR THE FINANCIAL YEAR

125,415

162,643

PROFIT FOR THE YEAR

125,415

162,643

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

125,415

162,643

CURRENT ASSETS

Stocks

7

1,302

896

Debtors

8

1,153,806

1,368,331

Cash at bank

449,441

1,043,199

1,604,549

2,412,426

CREDITORS

Amounts falling due within one year

9

1,118,013

1,976,305

NET CURRENT ASSETS

486,536

436,121

TOTAL ASSETS LESS CURRENT LIABILITIES

486,536

436,121

CAPITAL AND RESERVES

Called up share capital

10

1

1

Retained earnings

11

486,535

436,120

SHAREHOLDERS' FUNDS

14

486,536

436,121

The financial statements were approved by the Board of Directors and authorised for issue on 29 June 2022 and were signed on its behalf by:

A I A Sim - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2019

1

273,477

273,478

Changes in equity

Total comprehensive income

-

162,643

162,643

Balance at 30 September 2020

1

436,120

436,121

Changes in equity

Dividends

-

(75,000

)

(75,000

)

Total comprehensive income

-

125,415

125,415

Balance at 30 September 2021

1

486,535

486,536

Cash flows from operating activities

Cash generated from operations

1

(478,945

)

(135,172

)

Tax paid

(39,813

)

(66,542

)

Net cash from operating activities

(518,758

)

(201,714

)

Cash flows from financing activities

Equity dividends paid

(75,000

)

-

Net cash from financing activities

(75,000

)

-

Decrease in cash and cash equivalents

(593,758

)

(201,714

)

Cash and cash equivalents at beginning of year

2

1,043,199

1,244,913

Cash and cash equivalents at end of year

2

449,441

1,043,199

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

2021

2020

£

£

Profit before taxation

155,814

202,456

(Increase)/decrease in stocks

(406

)

521

Decrease/(increase) in trade and other debtors

214,525

(78,348

)

Decrease in trade and other creditors

(848,878

)

(259,801

)

Cash generated from operations

(478,945

)

(135,172

)

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:

Year ended 30 September 2021

30.9.21

1.10.20

£

£

Cash and cash equivalents

449,441

1,043,199

Year ended 30 September 2020

30.9.20

1.10.19

£

£

Cash and cash equivalents

1,043,199

1,244,913

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.10.20

Cash flow

At 30.9.21

£

£

£

Net cash

Cash at bank

1,043,199

(593,758

)

449,441

1,043,199

(593,758

)

449,441

Total

1,043,199

(593,758

)

449,441

1.	STATUTORY INFORMATION

AGS Support Services 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.	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.

Turnover

Turnover represents amounts chargeable to customers for services and labour provided during the year, inclusive of direct expenses incurred on customer assignments but excluding value added tax.

Turnover is recognised when a right to consideration has been obtained through performance under each contract. Consideration accrues as contract activity progresses by reference to the value of the work performed or labour supplied.

Unbilled revenue is included in debtors as "Amounts recoverable on contracts" within trade debtors.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year 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 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 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 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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Holiday pay

The Company recognises its liability for holiday pay due to Temporary workers within accruals where the liability is calculated to be on average 10.77% of every standard hour worked excluding overtime less the amount actually paid for holiday pay.

3.	EMPLOYEES AND DIRECTORS

2021

2020

£

£

Wages and salaries

6,925,312

6,849,020

Social security costs

529,739

503,163

Other pension costs

84,549

80,184

7,539,600

7,432,367

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

2021

2020

Temporary agency workers

361

395

Administrative staff

8

8

369

403

2021

2020

£

£

Directors' remuneration

-

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

2021

2020

£

£

Auditors' remuneration

6,200

6,000

Other assurance services

2,915

2,315

5.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2021

2020

£

£

Current tax:

UK corporation tax

30,399

39,813

Tax on profit

30,399

39,813

Reconciliation of total tax charge 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:

2021

2020

£

£

Profit before tax

155,814

202,456

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2020 - 19%)

29,605

38,467

Effects of:

Expenses not deductible for tax purposes

794

1,346

Total tax charge

30,399

39,813

6.

DIVIDENDS

2021

2020

£

£

Ordinary share of 1

Final

75,000

-

7.

STOCKS

2021

2020

£

£

Stocks

1,302

896

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

1,148,592

1,326,284

Amounts owed by group undertakings

-

12,539

Other debtors

-

25,804

Prepayments

5,214

3,704

1,153,806

1,368,331

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade creditors

16,450

585,349

Amounts owed to group undertakings

66,035

-

Tax

30,399

39,813

Social security and other taxes

105,671

121,738

VAT

337,422

727,474

Accrued expenses

562,036

501,931

1,118,013

1,976,305

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

1

Ordinary

1

1

1

11.

RESERVES

Retained

earnings

£

At 1 October 2020

436,120

Profit for the year

125,415

Dividends

(75,000

)

At 30 September 2021

486,535

12.	ULTIMATE PARENT COMPANY

Anti Graffiti Systems Limited is regarded by the directors as being the company's ultimate parent company.

The registered office address and trading address of this Company is Unit D Prospect House, The Hyde Business Park, The Hyde, Brighton.

13.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Key management personnel of the entity or its parent (in the aggregate)

2021

2020

£

£

Purchases

-

1,391,082

Amount due to related party

-

563,394

14.	RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

2021

2020

£

£

Profit for the financial year

125,415

162,643

Dividends

(75,000

)

-

Net addition to shareholders' funds

50,415

162,643

Opening shareholders' funds

436,121

273,478

Closing shareholders' funds

486,536

436,121