ACCOUNTS - Final Accounts preparation

An analysis of turnover by class of business is as follows:

BARKER ROSS RECRUITMENT LIMITED - Company Information

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Registered number: 03158011

BARKER ROSS RECRUITMENT LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2021

BARKER ROSS RECRUITMENT LIMITED

COMPANY INFORMATION

Directors	P A Ross
	E C Tillotson


Company secretary	S Rahman


Registered number	03158011


Registered office	Mercury Place
	11 St. George Street
	Leicester
	LE1 1QG


Independent auditors	MHA MacIntyre Hudson
	Chartered Accountants & Statutory Auditors
	11 Merus Court
	Meridian Business Park
	Leicester
	LE19 1RJ

BARKER ROSS RECRUITMENT LIMITED

CONTENTS

	Page
Strategic Report	1 - 2
Directors' Report	3 - 4
Directors' Responsibilities Statement	5
Independent Auditors' Report	6 - 9
Statement of Comprehensive Income	10
Balance Sheet	11
Statement of Changes in Equity	12
Notes to the Financial Statements	13 - 28

BARKER ROSS RECRUITMENT LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 30 NOVEMBER 2021

Introduction

Business review

The turnover for the year was £15.2m (2020: £11.1m) and is in line with director's expectations. The company continued to focus on core specialist areas which has helped strengthen the business’s position in the construction sector. The operating profit was £309,596 (2020: £29,299).
The KPI's that the business tracks are GP% of 13.2% (2020: 13.3%), return on GP of 10.6% (2020: 0.1%). GP per sales head of £170,071 (2020: £113,770) and debtor days of 71 (2020: 67).
The year can be considered to be a successful one, with strong recovery in profit levels.

Overall strategy

The company will continue with its strategy of organic growth, the company has managed to retain most of its major clients in addition to taking on new key accounts. With further new business wins in the pipeline, the company aims to further grow the business and surpass the current year profit levels.
Future developments
The directors believe the company is in a strong position to achieve continued growth and profitability.

Financial risk management objectives and policies

Credit risk
The maximum exposure to credit risk of the financial assets is the carrying amount shown on the Balance Sheet. Management monitors customers and trade/other debtors to avoid significant credit risks with the result that the company's exposure to bad debt is not significant.
It is the company's policy that all clients who wish to trade on credit terms are subject to credit verification procedures. In addition, the company has a credit insurance policy in place.
Liquidity risk
The company has an excellent relationship with its bankers. The company seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet its foreseeable needs. This is primarily achieved through trading activities and inter company accounts.
Interest rate risk
The company's funding is provided by an invoice finance facility with a variable interest rate. This facility has fixed and floating charges.
Major failure of IT systems
The company is reliant on its IT systems to carry out its day to day processes.
The company has a robust disaster recovery plan in place in the event of a major internal failure of its IT systems and a dual redundancy server environment.

Page 1

BARKER ROSS RECRUITMENT LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 30 NOVEMBER 2021

Competition
The company operates in the recruitment services sector where there are a significant number of competitors and barriers to entry are relatively low. To counter the threat of competitors seeking to win business from us the company aims to build strong long term relationships with its customers through excellent service levels and through its rigorous selection and checking procedures which ensure that all contractors provided by the company are fully compliant with the legal requirements.
Legislative framework
Continued changes to the legislative framework in which the company operates presents an exposure to third party liabilities for failing to adhere to the relevant statutes. The business manages this risk by keeping up to date on all changes to law and ensuring internal procedures are amended in a timely manner, backed up by rigorous internal audit to ensure high standards and the company's professional reputation are maintained. As a consequence of this, the directors are confident of future prospects.
Uncertainties
The loss or weakening of client relationships can be considered a key risk for the business in a increasingly competitive market, in order to manage this the business has a focus on attracting and retaining talent within the business by regularly reviewing and monitoring employee satisfaction through engagement with the employees.
The business is also wary of customer concentration levels, loss of a key customer could result in a significant reduction in business volumes which in turn would impact on Turnover/Profit levels. Management meet on a regular basis to discuss and review our customer base, exposure levels, sales pipelines and the market conditions to ensure we are managing this risk as best as possible.
Onerous changes in the regulatory framework, driven by potential European or UK legislation, could lead to greatly increased employment costs which might lead to a reduction in demand for our temporary workers.

Going concern

The directors consider that the company has adequate resources to continue in operational existence for the foreseeable future. Potential sources of uncertainty noted by the directors include Coronavirus and the COVID-19 pandemic. The directors have continued to prepare the financial statements on the going concern basis, based on the data and actions taken from COVID-19. See note 2.3 for further discussions.

This report was approved by the board and signed on its behalf.

................................................

P A Ross

Director

Date: 31 August 2022

Page 2

BARKER ROSS RECRUITMENT LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 30 NOVEMBER 2021

The directors present their report and the financial statements for the year ended 30 November 2021.

Principal activity

The principal activity of the company during the year continued to be that of a recruitment business and recruitment agency providing temporary and permanent labour for the construction sector.

Results and dividends

The profit for the year, after taxation, amounted to £225,480 (2020 - £1,722).

The directors did not recommend a dividend during the year (2020 - £Nil).

Directors

The directors who served during the year were:

P A Ross

E C Tillotson

Matters covered in the strategic report

As permitted by Paragraph 1A of Schedule 7 to the Large and Medium-Sized Companies and Groups (Accounts and reports) Regulations 2008 certain matters which are required to be disclosed in the directors' report have been omitted as they are included in the strategic report on pages 1 and 2.

Employee involvement

Employees are kept aware of developments within the company by regular briefings, team meetings and newsletters.
It is the policy of the company to encourage and develop all members of staff to realise their maximum potential. Wherever possible, vacancies are filled from within the company and adequate opportunities for internal promotion are created. The board is committed to a systematic training policy and the company has a comprehensive training and development programme creating the opportunity for employees to maintain and improve their performance and to develop their potential to a maximum level of attainment. In this way, staff will make their best possible contribution to the organisation’s success. The company supports the principle of equal opportunities in employment and opposes all forms of unlawful or unfair discrimination on the grounds of race, age, nationality, religion, ethnic or national origin, sexual orientation, gender or gender reassignment, marital status or disability.
Disabled persons
It is the company's policy to give full and fair consideration to suitable applications for employment from disabled persons. Once employed, disabled persons receive equal opportunities for training, career development and promotion. Opportunities exist for employees of the company who become disabled to continue their employment or to be trained for other positions within the company.

Page 3

BARKER ROSS RECRUITMENT LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 30 NOVEMBER 2021

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Auditors

The auditors, MHA MacIntyre Hudson, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

................................................

P A Ross

Director

Date: 31 August 2022

Page 4

BARKER ROSS RECRUITMENT LIMITED

DIRECTORS' RESPONSIBILITIES STATEMENT

FOR THE YEAR ENDED 30 NOVEMBER 2021

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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 to 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.

Page 5

BARKER ROSS RECRUITMENT LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARKER ROSS RECRUITMENT LIMITED

Opinion

We have audited the financial statements of Barker Ross Recruitment Limited (the 'company') for the year ended 30 November 2021, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, 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 November 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 United Kingdom, including the Financial Reporting Council'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.

Page 6

BARKER ROSS RECRUITMENT LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARKER ROSS RECRUITMENT LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.

Opinion 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 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.

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 set out on page 5, 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.

Page 7

BARKER ROSS RECRUITMENT LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARKER ROSS RECRUITMENT LIMITED (CONTINUED)

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 an Auditors' 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:

∙Enquiry of management and those charged with governance around actual, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud.

∙Enquiry of entity staff in finance and compliance functions to identify any instances of non-compliance with laws and regulations.

∙Performing audit work over the risk of management override, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

∙Reviewing of financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

∙Discussing with engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Auditors' Report.

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 an Auditors' 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.

Page 8

BARKER ROSS RECRUITMENT LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARKER ROSS RECRUITMENT LIMITED (CONTINUED)

Shelley Harvey FCCA (Senior Statutory Auditor)

for and on behalf of

MHA MacIntyre Hudson

Statutory Auditors
Leicester, United Kingdom

11 Merus Court

31 August 2022

Page 9

BARKER ROSS RECRUITMENT LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 NOVEMBER 2021

	2021	2020
Note	£	£


Turnover	4	15,231,931	11,112,578
Cost of sales		(13,220,582)	(9,633,565)
Gross profit		2,011,349	1,479,013
Administrative expenses		(1,731,262)	(1,649,745)
Other operating income	5	29,509	200,031
Operating profit	6	309,596	29,299
Interest receivable and similar income	10	7,350	2,152
Interest payable and expenses	11	(28,496)	(29,410)
Profit before tax		288,450	2,041
Tax on profit	12	(62,970)	(319)
Profit for the financial year		225,480	1,722

There was no other comprehensive income for 2021 (2020: £NIL).

The notes on pages 13 to 28 form part of these financial statements.

Page 10

BARKER ROSS RECRUITMENT LIMITED

REGISTERED NUMBER: 03158011

BALANCE SHEET

AS AT 30 NOVEMBER 2021

		2021		2020
Note		£		£

Fixed assets
Intangible assets	13		-		-
Tangible assets	14		8,013		12,513
Investments	15		796		796
			8,809		13,309
Current assets
Debtors	16	3,334,983		2,348,685
Cash at bank and in hand	17	8,268		8,268
		3,343,251		2,356,953
Creditors: amounts falling due within one year	18	(2,868,937)		(2,112,619)
Net current assets			474,314		244,334

Net assets			483,123		257,643

Capital and reserves
Called up share capital	19	10,000	10,000
Share premium account	20	19,500	19,500
Profit and loss account	20	453,623	228,143
		483,123	257,643

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

................................................

P A Ross

Director

Date: 31 August 2022

The notes on pages 13 to 28 form part of these financial statements.

Page 11

BARKER ROSS RECRUITMENT LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 NOVEMBER 2021

	Called up share capital	Share premium account	Profit and loss account	Total equity
	£	£	£	£
At 1 December 2019	10,000	19,500	226,421	255,921

Profit for the year	-	-	1,722	1,722

At 1 December 2020	10,000	19,500	228,143	257,643

Profit for the year	-	-	225,480	225,480
At 30 November 2021	10,000	19,500	453,623	483,123

Page 12

BARKER ROSS RECRUITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2021

1.	General information

Barker Ross Recruitment Limited is a private limited company, limited by shares, incorporated in England and Wales. The registered office is Mercury Place, 11 St. George Street, Leicester, LE1 1QG The registered number is 03158011.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The company is a majority-owned subsidiary of Barker Ross Group Limited, a company incorporated in England and Wales, which has produced consolidated financial statements therefore, in accordance with Section 400 of the Companies Act 2006, this company is not required to produce, and has not published consolidated accounts.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).
The functional and presentational currency of the company during the year was Pound Sterling (£).

The following principal accounting policies have been applied:

2.2

Financial reporting standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of section 3 Financial Statement Presentation paragraph 3.17 (d);

∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); and

∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A.

This information is included in the consolidated financial statements of Barker Ross Group Limited as as 30 November 2021 and these financial statements are available from its registered office Mercury Place, 11 St. George Street, Leicester, LE1 1QG.

Page 13

BARKER ROSS RECRUITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2021

2.Accounting policies (continued)

2.3

Going concern

After reviewing the Company’s forecasts and projections, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
The director has also reviewed the impact of COVID-19 and other economical events on the company and the parent company as a whole. The company remains profitable and continues to do so post year end, as well as maintaining the working capital position.
Based on continued profitability, improving working capital position and available finance, the director considers that the company has the ability to continue as a going concern for the next 12 months and therefore the accounts are prepared on a going concern basis.

2.4

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of turnover can be measured reliably;

∙it is probable that the company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

Turnover from the provision of temporary workers is recognised at the end of the completed working week based on the hours worked multiplied by the contract rate, net of rebates.
Turnover from permanent placements is recognised when the candidate commences their new employment.

2.5

Operating leases: the company as lessee

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the lease term.

Page 14

BARKER ROSS RECRUITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2021

2.Accounting policies (continued)

2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Statement of Comprehensive Income at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

2.7

Interest income

Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.

2.8

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.9

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds.

Page 15

BARKER ROSS RECRUITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2021

2.Accounting policies (continued)

2.10

Current and deferred taxation

Tax is recognised in the Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Amortisation is provided on the following annual basis:

Computer software

33% straight-line on cost

2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical 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.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 16

BARKER ROSS RECRUITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2021

2.Accounting policies (continued)

2.12

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following annual basis:

				Motor vehicles	-	25% straight-line on cost
				Fixtures and fittings	-	20% - 25% straight-line on cost

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 Comprehensive Income.

2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.14

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at transaction price, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.16

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at transaction, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.17

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

2.18

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Page 17

BARKER ROSS RECRUITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2021

2.Accounting policies (continued)

2.18

Financial instruments (continued)

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at transaction price net of transaction cost and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Page 18

BARKER ROSS RECRUITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2021

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

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.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
(i) Useful economic lives of intangible fixed assets
The directors consider that the useful economic life of the goodwill included within these financial statements cannot be reliably measured. As a result, the directors have adopted the maximum useful economic life allowed under FRS 102. The directors do not expect any adjustments to the useful economic lives to be material to the financial statements. See note 13 for the carrying amount of the intangible fixed assets, and note 2.11 for the useful economic lives.
(ii) Useful economic lives of tangible fixed assets
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 14 for the carrying amount of the tangible fixed assets, and note 2.12 for the useful economic lives for each class of assets.

Temporary recruitment fees	15,025,559	11,011,633
Permanent recruitment fees	206,372	100,945
	15,231,931	11,112,578

Analysis of turnover by country of destination:

					2021	2020
					£	£

United Kingdom	15,231,931	11,112,578
	15,231,931	11,112,578

Page 19

BARKER ROSS RECRUITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2021

5.	Other operating income
		2021	2020
		£	£

Government grants receivable	29,509	200,031
	29,509	200,031

Depreciation of tangible fixed assets	17,738	19,950
Amortisation of intangible assets	79	1,368
Other operating lease rentals	5,748	87,815

7.	Auditors' remuneration
		2021	2020
		£	£

Fees payable to the company's auditor and its associates for the audit of the company's annual financial statements

8,000

5,560

Fees payable to the company's auditor and its associates in respect of:
Taxation compliance services	500	-
All other services	1,000	-
	1,500	-

Page 20

BARKER ROSS RECRUITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2021

8.	Employees - permanent workers
		2021	2020
		£	£

Wages and salaries	1,105,783	1,073,743
Social security costs	95,891	102,082
Defined contribution pension costs	29,887	24,566
	1,231,561	1,200,391

The average monthly number of permanent employees, including the directors, during the year was as follows:

2021

2020

Sales	12	13
Administration	12	10
	24	23

Wages and salaries	12,959,614	9,502,980
Social security costs	208,539	112,599
Defined contribution pension costs	16,136	12,886
	13,184,289	9,628,465

Included within wages and salaries costs are £9,894,047 (2020 - £6,555,103) costs in relation to agency workers who are employed through umbrella companies.
The average number of temporary workers contracted by the company during the year was:

Page 21

BARKER ROSS RECRUITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2021

.	Employees - temporary workers (continued)
					2021	2020

Temporary workers	147	87
Agency workers	209	183
	356	270

Agency workers as listed above are not employees of Barker Ross Recruitment Limited and are employed through umbrella companies.

10.	Interest receivable
		2021	2020
		£	£

	Bank interest	7,350	2,152
		7,350	2,152

11.	Interest payable and similar expenses
		2021	2020
		£	£

	Invoice financing facility	28,496	29,410
		28,496	29,410

Corporation tax
Current tax on profits for the year	62,970	319
	62,970	319

Total current tax	62,970	319


	Taxation on profit on ordinary activities	62,970	319

Page 22

BARKER ROSS RECRUITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2021

12.Taxation (continued)

Profit on ordinary activities before tax

288,450

2,041

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)	54,806	388
Effects of:
Expenses not deductible for tax purposes	3,172	4,571
Capital allowances for year in excess of depreciation	401	-
Changes in provisions leading to an increase (decrease) in the tax charge	5,480	-
Other differences	(889)	(4,640)
Total tax charge for the year	62,970	319

Factors that may affect future tax charges

At the year end, tax losses carried forward amounted to £Nil (2020 - £4,677).
From 1 April 2023, the corporation tax main rate will increase to 25% for profits over £250,000. A small profits rate will also be introduced for profits of £50,000 or less, charging corporation tax at 19%. Profits between £50,000 and £250,000 will be taxed at the main rate reduced by a marginal relief providing a gradual increase in the effective corporation tax rate.

Page 23

BARKER ROSS RECRUITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2021

13.	Intangible assets

		Computer software
		£
	Cost
	At 1 December 2020	15,108
	Transfers between classes	16,878
	At 30 November 2021	31,986
	Amortisation
	At 1 December 2020	15,108
	Charge for the year	79
	Transfers between classes	16,799
	At 30 November 2021	31,986
	Net book value
	At 30 November 2021	-
	At 30 November 2020	-

Page 24

BARKER ROSS RECRUITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2021

14.	Tangible fixed assets

	Motor vehicles	Fixtures and fittings	Total
	£	£	£
Cost or valuation
At 1 December 2020	18,777	53,559	72,336
Additions	-	1,140	1,140
Disposals	(6,277)	-	(6,277)
Transfers between classes	-	(16,878)	(16,878)
At 30 November 2021	12,500	37,821	50,321
Depreciation
At 1 December 2020	12,046	47,777	59,823
Charge for the year	3,125	2,436	5,561
Transfers between classes	-	(16,799)	(16,799)
Disposals	(6,277)	-	(6,277)
At 30 November 2021	8,894	33,414	42,308
Net book value
At 30 November 2021	3,606	4,407	8,013
At 30 November 2020	6,731	5,782	12,513

15.	Fixed asset investments

		Investments in subsidiary undertakings
		£
	Cost and net book value
	At 1 December 2020	796
	At 30 November 2021	796

Page 25

BARKER ROSS RECRUITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2021

Subsidiary undertakings
The following were subsidiary undertakings of the company:
Name	Principal activity	Class of shares	Holding

	Barker Alexander Limited	Dormant	Ordinary	90%
	BR (Leicester) Limited	Dormant	Ordinary	99.5%

16.

Debtors

					2021	2020
					£	£


Trade debtors	2,913,722	2,038,166
Amounts owed by group undertakings	20,000	20,000
Other debtors	385,640	262,373
Prepayments	15,621	28,146
	3,334,983	2,348,685

17.	Cash and cash equivalents
		2021	2020
		£	£

Cash at bank and in hand	8,268	8,268
	8,268	8,268

18.	Creditors: Amounts falling due within one year
		2021	2020
		£	£

Trade creditors	4,490	32,188
Amounts owed to group undertakings	1,160,324	799,936
Corporation tax	62,970	319
Other taxation and social security	593,463	562,047
Invoice financing facility (note 21)	479,508	360,717
Other creditors	457,517	260,184
Accruals and deferred income	110,665	97,228
	2,868,937	2,112,619

Page 26

BARKER ROSS RECRUITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2021

19.	Share capital
		2021	2020
		£	£

Allotted, called up and fully paid

Ordinary A shares of £0.10 each	9,000	9,000
Ordinary B shares of £0.10 each	500	500
Ordinary shares of £0.10 each	500	500

	10,000	10,000

The holders of the Ordinary A shares shall have the right to appoint a director and meetings of the directors shall not be quorate unless such a director is present. The Ordinary B shares and Ordinary shares shall be seperate classes of share but shall rank pari passu in all other respects to the Ordinary A shares.

20.

Reserves

Share premium account

The share premium account represents amounts paid over and above the nominal value of each share issued.

21.	Contingent liabilities

The company is party to a cross guarantee with fellow subsidiaries, Barker Ross Staffing Solutions Ltd and Cardea Resourcing Limited, relating to bank overdraft facilities. At the balance sheet date, total amounts due across all companies were £31,655 (2020 - £34,144) covered by this guarantee.
The invoice financing facility is secured on the trade debtors of the company and the trade debtors of Barker Ross Staffing Solutions Ltd and Cardea Resourcing Limited, both fellow subsidiary undertakings. At the balance sheet date, total amounts due under this facility across all three companies were £3,688,492 (2020 - £2,786,053).

22.	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. The pension cost charge represents contributions payable by the company to the fund and amounted to £46,023 (2020 - £37,452). Contributions totalling £4,846 (2020 - £8,787) were payable to the fund at the balance sheet date and are included within other creditors.

Page 27

BARKER ROSS RECRUITMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2021

23.	Related party transactions
	During the year the company entered into the following transactions with related parties:

		2021	2020
		£	£

	Amounts owed by group undertakings	20,000	20,000
	Amounts owed to group undertakings	1,160,324	799,936

No interest was charged on the above balances.

The key management personnel in the year were deemed to the directors.

24.	Parent undertaking and controlling party

The company's parent undertaking is Barker Ross Group Limited, a company incorporated in England and Wales. The company's controlling party is P A Ross by virtue of his controlling interest in the issued equity share capital of Barker Ross Group Limited. The largest and smallest group of undertakings for which group accounts have been drawn up, which include these accounts is headed by Barker Ross Group Limited.

Page 28