Sellick Partnership Limited - Limited company accounts 16.3

REGISTERED NUMBER: 04156002 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 28 February 2017

for

Sellick Partnership Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTORS:

T J Sellick

R Wareing

H Cottam

M Sellick

REGISTERED OFFICE:

Queens Court

24 Queen Street

Manchester

M2 5HX

REGISTERED NUMBER:

04156002 (England and Wales)

AUDITORS:

Mitten Clarke Audit Limited

Statutory Auditors

The Glades

Festival Way

Stoke on Trent

Staffordshire

ST1 5SQ

The directors present their strategic report for the year ended 28 February 2017.

REVIEW OF BUSINESS

Development and performance:

The political and economic climate has continued to challenge the Company but Sellick Partnership has

continued to see growth and expansion across all specialisms. Sellick Partnership continued to invest in the

training and development of its staff along with new technology.

Turnover has increased in the year ended 28 February 2017 from the year ended 28 February 2016 by 10%.

The continuing investment in 2016 and 2017 enabled Sellick Partnership to continue its growth in the

medium term and has seen the Company grow its gross profit by 5.9%.

Financial position:

The Company's financial position is shown in the financial statements.

PRINCIPAL RISKS AND UNCERTAINTIES

The Board consider the principal risks and uncertainties to the business to be:

- Legislation - the recruitment industry is becoming increasingly legislated and Sellick Partnership

manages these changes and proposed changes by employing various internal controls and liaising with

several professional advisors.

- Economic - the challenging economic climate in the UK will continue to be a risk for any recruitment

business. Sellick Partnership will continue to invest in its people and client base to mitigate the risk.

- Skill Shortages - Sellick Partnership continues to face the challenge of finding high quality candidates

across all its markets. Continued investment in technology and networking events will help support the

expansion in our candidate base.

Future:

The Board considers that the business will continue to grow organically within its current markets and

expects to generate profits year on year.

KEY PERFORMANCE INDICATORS

The key performance indicators used to monitor the development, performance and position of the

Company include:

- Turnover

- Gross Margins and Net Fee Income

- Revenue mix

- Margin analysis

- Productivity by employee

- Employment costs

- Activity ratios

- Employee Headcount and Retention

ON BEHALF OF THE BOARD:

T J Sellick - Director

18 July 2017

The directors present their report with the financial statements of the company for the year ended 28 February 2017.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of temporary and permanent

recruitment solutions to the professional services sector.

DIVIDENDS

Interim dividends of £580,000 were paid during the year.

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 28 February 2017 will be £580,000.

DIRECTORS

The directors shown below have held office during the whole of the period from 29 February 2016 to the

date of this report.

T J Sellick

R Wareing

H Cottam

M Sellick

DISABLED EMPLOYEES

Applications for employment by disabled persons are always fully considered, bearing in mind the abilities

of the applicant concerned. In the event of members of staff becoming disabled every effort is made to

ensure that their employment with the Company continues and that appropriate training is arranged. It is

the policy of the Company that the training, career development and promotion of disabled persons

should, as far as possible, be identical to that of other employees.

EMPLOYEE CONSULTATION

The Company places considerable value on the involvement of its employees and has continued to keep

them informed on matters affecting them as employees and on the various factors affecting the

performance of Company. This is achieved through formal and informal meetings. Employee

representatives are consulted regularly on a wide range of matters affecting their current and future

interests.

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with section 414C(11) of Companies Act 2006 (Strategic Report and

Directors' Report) Regulations 2013 to set out in the company's Strategic Report information required by

schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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

On 10 March 2017, the audit business of Mitten Clarke Limited was transferred to Mitten Clarke Audit

Limited who succeeded to the office as statutory auditor of the company. The audit report on the financial

statements has been issued by the successor firm, Mitten Clarke Audit Limited.

Mitten Clarke Audit Limited, has indicated its willingness to continue in office and will be proposed for

re-appointment in accordance with section 485 Companies Act 2006.

ON BEHALF OF THE BOARD:

T J Sellick - Director

18 July 2017

We have audited the financial statements of Sellick Partnership Limited for the year ended

28 February 2017 on pages eight to twenty. The financial reporting framework that has been applied in

their preparation is 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'.

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.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements

sufficient to give reasonable assurance that the financial statements are free from material misstatement,

whether caused by fraud or error. This includes an assessment of: whether the accounting policies are

appropriate to the company's circumstances and have been consistently applied and adequately disclosed;

the reasonableness of significant accounting estimates made by the directors; and the overall presentation

of the financial statements. In addition, we read all the financial and non-financial information in the

Strategic Report and the Report of the Directors to identify material inconsistencies with the audited

financial statements and to identify any information that is apparently materially incorrect based on, or

materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we

become aware of any apparent material misstatements or inconsistencies we consider the implications for

our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 28 February 2017 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion 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 has been properly prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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.

Adam Clarke BA FCA (Senior Statutory Auditor)

for and on behalf of Mitten Clarke Audit Limited

Statutory Auditors

The Glades

Festival Way

Stoke on Trent

Staffordshire

ST1 5SQ

18 July 2017

TURNOVER

38,754,621

35,287,813

Cost of sales

32,994,082

29,849,538

GROSS PROFIT

5,760,539

5,438,275

Administrative expenses

4,889,921

4,440,670

OPERATING PROFIT

5

870,618

997,605

Interest payable and similar expenses

6

71,282

77,548

PROFIT BEFORE TAXATION

799,336

920,057

Tax on profit

7

197,861

199,255

PROFIT FOR THE FINANCIAL YEAR

601,475

720,802

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

601,475

720,802

FIXED ASSETS

Intangible assets

9

215,700

287,334

Tangible assets

10

145,275

165,139

360,975

452,473

CURRENT ASSETS

Debtors

11

6,700,953

7,178,946

Cash at bank and in hand

239,989

635,681

6,940,942

7,814,627

CREDITORS

Amounts falling due within one year

12

6,647,651

7,607,672

NET CURRENT ASSETS

293,291

206,955

TOTAL ASSETS LESS CURRENT LIABILITIES

654,266

659,428

CREDITORS

Amounts falling due after more than one year

13

(8,563

)

(29,700

)

PROVISIONS FOR LIABILITIES

16

(27,500

)

(33,000

)

NET ASSETS

618,203

596,728

CAPITAL AND RESERVES

Called up share capital

17

100

100

Retained earnings

18

618,103

596,628

SHAREHOLDERS' FUNDS

618,203

596,728

The financial statements were approved by the Board of Directors on 18 July 2017 and were signed on its behalf by:

T J Sellick - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 March 2015

100

235,826

235,926

Changes in equity

Dividends

-

(360,000

)

(360,000

)

Total comprehensive income

-

720,802

720,802

Balance at 28 February 2016

100

596,628

596,728

Changes in equity

Dividends

-

(580,000

)

(580,000

)

Total comprehensive income

-

601,475

601,475

Balance at 28 February 2017

100

618,103

618,203

1.	STATUTORY INFORMATION

Sellick Partnership 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

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

The financial statements have been prepared under the historical cost convention and are presented

in Pounds Sterling (£) being the functional currency.

The financial statements have been prepared on the assumption that the company is able to carry

on business as a going concern, which the directors consider appropriate having regard to the

company's current and expected performance.

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 FRS 102 "The Financial Reporting Standard applicable in the

UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of Section 33 Related Party Disclosures paragraph 33.7.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make

judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are

not readily apparent from other sources. The estimates and associated assumptions are based on

historical experience and other factors that are considered to be relevant. Actual results may differ

from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to

accounting estimates are recognised in the period in which the estimate is revised if the revision

affects only that period, or in the period of the revision and future periods if the revision affects

both current and future periods.

Key sources of estimation uncertainty

The directors consider that the key estimates and assumptions used in preparing the financial

statements are as follows:

- Depreciation rates and estimated economic useful life of tangible fixed assets.

- Amortisation rates and estimated useful life on intangible fixed assets.

Turnover

Turnover is the amounts derived from the provision of services falling within the entity's ordinary

activities, after deduction of trade discounts and value added tax. The company recognises

turnover on the placement of contractors when validated by receipt of a client approved timesheet.

For the placement of permanent candidates, turnover is recognised and the client is invoiced when

the candidate starts their role.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2010, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are

measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

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

Equipment

-

20% on cost

Fixtures and fittings

-

33.33% on cost

Computer equipment

-

33.33% on cost

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 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.

Hire purchase and leasing commitments

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

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

Those held under finance leases are depreciated over their estimated useful lives or the lease term,

whichever is the shorter.

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

capital element of the future payments is treated as a liability.

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

period of the lease.

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.

Debtors and creditors measurement

The debtors and creditors of the company are measured on an amortised cost basis.

Financial instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the

contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the

contractual arrangements entered into. An equity instrument is any contract that evidences a

residual interest in the assets of the company after deducting all of its liabilities.

(i) Financial assets and liabilities

All financial assets and liabilities are initially measured at transaction price (including transaction

costs), except for those financial assets classified as at fair value through profit or loss, which are

initially measured at fair value (which is normally the transaction price excluding transaction costs),

unless the arrangement constitutes a financing transaction. If an arrangement constitutes a

financing transaction, the financial asset or financial liability is measured at the present value of

the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments which meet the conditions for basic financial instruments are subsequently

measured at amortised cost using the effective interest method.

Financial liabilities are derecognised only when the obligation specified in the contract is

discharged, cancelled or expires.

4.	EMPLOYEES AND DIRECTORS

2017

2016

£

£

Consultants and Office Staff - Wages and Salaries

3,103,556

2,713,252

Social Security Costs

384,491

330,953

Pension Costs

51,848

48,000

3,539,895

3,092,205

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

2017

2016

Directors

4

4

Consultants

57

51

Office Staff

20

21

81

76

2017

2016

£

£

Directors' remuneration

302,054

288,668

Directors' pension contributions to money purchase schemes

43,500

45,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

Information regarding the highest paid director is as follows:

2017

2016

£

£

Emoluments etc

97,054

99,766

Pension contributions to money purchase schemes

43,500

45,000

5.	OPERATING PROFIT

The operating profit is stated after charging:

2017

2016

£

£

Other operating leases

277,747

208,616

Depreciation - owned assets

38,332

32,703

Depreciation - assets on hire purchase contracts

20,125

5,979

Loss on disposal of fixed asset investments

-

100

Goodwill amortisation

71,634

71,634

Auditors' remuneration

10,900

10,900

Auditors' remuneration for non audit work

10,406

5,860

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2017

2016

£

£

Invoice discounting interest

64,505

72,280

Hire purchase

6,777

5,268

71,282

77,548

7.

TAXATION

Analysis of the tax charge

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

2017

2016

£

£

Current tax:

UK corporation tax

185,964

201,328

Under / (Over) provision of

corporation tax

17,397

(17,073

)

Total current tax

203,361

184,255

Deferred tax

(5,500

)

15,000

Tax on profit

197,861

199,255

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:

2017

2016

£

£

Profit before tax

799,336

920,057

Profit multiplied by the standard rate of corporation tax in the UK of 20% (2016 - 20%)

159,867

184,011

Effects of:

Expenses not deductible for tax purposes

7,797

31,252

Adjustments to tax charge in respect of previous periods

17,397

(17,073

)

Rounding

(74

)

1,065

Depreciation on assets not subject to capital allowances

14,327

-

Changes in taxation rates

(1,453

)

-

Total tax charge

197,861

199,255

8.

DIVIDENDS

2017

2016

£

£

Ordinary shares of £1 each

Interim

580,000

360,000

9.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 29 February 2016

and 28 February 2017

716,341

AMORTISATION

At 29 February 2016

429,007

Amortisation for year

71,634

At 28 February 2017

500,641

NET BOOK VALUE

At 28 February 2017

215,700

At 28 February 2016

287,334

10.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

Equipment

fittings

equipment

Totals

£

£

£

£

COST

At 29 February 2016

158,469

92,934

231,182

482,585

Additions

3,242

4,404

30,946

38,592

At 28 February 2017

161,711

97,338

262,128

521,177

DEPRECIATION

At 29 February 2016

156,991

83,245

77,210

317,446

Charge for year

680

4,359

53,417

58,456

At 28 February 2017

157,671

87,604

130,627

375,902

NET BOOK VALUE

At 28 February 2017

4,040

9,734

131,501

145,275

At 28 February 2016

1,478

9,689

153,972

165,139