Recruitment Express Limited - Limited company accounts 16.3

REGISTERED NUMBER: 03591406 (England and Wales)

RECRUITMENT EXPRESS LIMITED

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2016

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Income Statement

6

Balance Sheet

7

Notes to the Financial Statements

8

DIRECTORS:

Dr M H A Sacoor

M Sacoor

D R Patel

D S Newton

R S Nandha

D J Bruce

SECRETARY:

M Sacoor

REGISTERED OFFICE:

Unit 2 Mill Square

Featherstone Road

Wolverton Mill South

Milton Keynes

MK12 5ZD

REGISTERED NUMBER:

03591406 (England and Wales)

AUDITORS:

Bessler Hendrie

Chartered Accountants

Statutory Auditor

Albury Mill

Mill Lane

Chilworth

Guildford

Surrey

GU4 8RU

The directors present their report with the financial statements of the company for the year ended 31 December 2016.

EVENTS SINCE THE END OF THE YEAR

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

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2016 to the date of

this report.

Dr M H A Sacoor

M Sacoor

D R Patel

D S Newton

R S Nandha

Other changes in directors holding office are as follows:

D J Bruce - appointed 1 November 2016

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in

accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the

directors have elected to prepare the financial statements in accordance with United Kingdom Generally

Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 ought to have taken as a director in order to make himself aware of any relevant audit information and

to establish that the company's auditors are aware of that information.

AUDITORS

The auditor, Bessler Hendrie, Chartered Accountants, has indicated a willingness to continue in office.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating

to small companies.

ON BEHALF OF THE BOARD:

D J Bruce - Director

22 September 2017

We have audited the financial statements of Recruitment Express Limited for the year ended 31 December 2016

on pages six to eleven. 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 two, 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 (APB's) Ethical Standards for Auditors.

Scope of the audit of the financial statements

A description of the scope of an audit of financial statements is provided on the FRC's website at

www.frc.org.uk/auditscopeukprivate.

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 31 December 2016 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, based on the work undertaken in the course of our audit, the information given in the Report of

the Directors for the financial year for which the financial statements are prepared is consistent with the

financial statements, and has been prepared in accordance with applicable legal requirements. In the light of the

knowledge and understanding of the company and its environment, we have not identified any material

misstatements in the Report of the Directors.

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; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Jason Saunders (Senior Statutory Auditor)

for and on behalf of Bessler Hendrie

Chartered Accountants

Statutory Auditor

Albury Mill

Mill Lane

Chilworth

Guildford

Surrey

GU4 8RU

22 September 2017

TURNOVER

11,652,143

18,105,191

Cost of sales

(6,374,523

)

(11,334,666

)

GROSS PROFIT

5,277,620

6,770,525

Administrative expenses

(1,771,775

)

(1,700,657

)

OPERATING PROFIT

3,505,845

5,069,868

Interest payable and similar expenses

(20,736

)

(24,991

)

PROFIT BEFORE TAXATION

3,485,109

5,044,877

Tax on profit

(697,943

)

(1,022,260

)

PROFIT FOR THE FINANCIAL YEAR

2,787,166

4,022,617

FIXED ASSETS

Intangible assets

6

1,066

-

CURRENT ASSETS

Debtors

7

4,409,204

4,408,293

Cash at bank

86,510

196,153

4,495,714

4,604,446

CREDITORS

Amounts falling due within one year

8

(2,167,580

)

(3,262,382

)

NET CURRENT ASSETS

2,328,134

1,342,064

TOTAL ASSETS LESS CURRENT LIABILITIES

2,329,200

1,342,064

CAPITAL AND RESERVES

Called up share capital

300

300

Retained earnings

2,328,900

1,341,764

SHAREHOLDERS' FUNDS

2,329,200

1,342,064

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 22 September 2017 and were signed on its behalf by:

D J Bruce - Director

1.	STATUTORY INFORMATION

Recruitment Express 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 the provisions of Section 1A "Small

Entities" of Financial Reporting Standard 102 (FRS 102 1A) "The Financial Reporting Standard applicable in

the UK and Republic of Ireland" and the Companies Act 2006. Unless indicated otherwise in the

accounting policies below, the financial statements have been prepared under the historical cost

convention.

The financial statements are prepared on a going concern basis as the directors consider this to be

appropriate given the anticipated ongoing profitability of the business and on the basis that the company

has sufficient financial resources which will allow the company to manage its business risks in the

foreseeable future.

Turnover

Turnover represents the fair value of consideration receivable for the sale of services in the ordinary

course of the business, excluding Value Added Tax.

Intangible fixed assets

Intangible fixed assets include website development costs where their future recoverability can

reasonably be regarded as assured. Amortisation is provided at an annual rate of 33% on cost in order to

write off the cost of each asset over its estimated useful life.

Taxation

Current tax is the amount of corporation tax payable in respect of the taxable profit for the year or prior

years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively

enacted by the period end.

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

balance sheet date where transactions or events that result in an obligation to pay more tax in the future

or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are

differences between the company's taxable profits and its results as stated in the financial statements.

Deferred tax is measured at the average tax rates that are expected to apply in the periods in which

timing differences are expected to reverse, based on tax rates and laws that have been enacted or

substantially enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis.

Foreign currencies

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

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

exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the

operating result.

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 the income statement in the period to which they relate.

Invoice discounting

The company uses invoice discounting to obtain finance in respect of trade debts issued to non-related

companies. The company has full recourse for the debts. Invoice discounting costs are charged to the

income statement for the period to which they relate.

Operating leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership

remain with the lessor are charged to the income statement as incurred. The benefits of lease incentives

are recognised in the income statement over the life of the lease.

Financial instruments

Basic financial instruments are recognised at amortised cost.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 (2015: 3).

The company shares administrative resources with ID Medical Group Limited, a company under common

control, and consequently has access to the employees of that company to run its administrative

operations. Recharges are made between the companies, as appropriate.

4.	AUDITORS' REMUNERATION

2016

2015

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

6,150

5,970

5.

DIVIDENDS

2016

2015

£

£

Ordinary shares of £0.10 each

Interim

1,800,030

3,900,000

6.	INTANGIBLE FIXED ASSETS

Website

development

costs

£

COST

At 1 January 2016

4,505

Additions

1,323

At 31 December 2016

5,828

AMORTISATION

At 1 January 2016

4,505

Amortisation for year

257

At 31 December 2016

4,762

NET BOOK VALUE

At 31 December 2016

1,066

At 31 December 2015

-

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2016

2015

£

£

Trade debtors

2,016,073

2,526,204

Amounts owed by related companies

1,109,672

250,641

Other debtors

57,792

80,086

Directors' loan accounts

216,000

-

Prepayments and accrued income

1,009,667

1,551,362

4,409,204

4,408,293

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2016

2015

£

£

Bank loans and overdrafts

809,047

1,131,241

Trade creditors

217,339

215,629

Amounts owed to related companies

92

319

Taxation and social security

672,918

1,060,399

Other creditors

468,184

854,794

2,167,580

3,262,382

Bank loans and overdrafts of £809,047 (2015: £1,131,241) relate to a loan from HSBC Invoice Finance

(UK) Limited in respect of invoice discounting. At the year end, this loan was secured by a fixed and

floating charge over all the assets of the company.

9.	CONTINGENT LIABILITIES

At 31 December 2016 the company held bank facilities in a group with ID Medical Group Limited and

Group 24 Limited, companies under common control, in respect of loans from HSBC Invoice Finance (UK)

Limited. These were supported by cross guarantees, the total liability of which was £16,155,390 (2015:

£20,687,512) at the year end. Of this amount £809,047 (2015: £1,131,241) is included as a creditor in

these financial statements, £15,041,806 (2015: £19,284,459) is included as a creditor in the financial

statements of ID Medical Group Limited and £304,537 (2015: £271,812) is included as a creditor in the

financial statements of Group 24 Limited.

The company has also provided a guarantee in relation to operating lease agreements undertaken by ID

Medical Group Limited. The future minimum lease payments under non-cancellable operating leases

which the company has guaranteed are £434,375 (2015: £425,824), £1,737,500 (2015: £1,737,500),

£217,188 (2015: £651,563) payable within 1 year, 1 to 5 years and greater than 5 years, respectively.

The company does not anticipate that the above guarantees will be called upon.

10.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

At the year end, there is a balance of £216,000 (2015: £Nil) owed to the company in relation to advances

to a director. This loan is interest free and repayable on demand.

11.	POST BALANCE SHEET EVENTS

After the year end, the company has provided a guarantee in relation to a loan facility of £3,000,000

from HSBC Bank Plc, taken out by ID Medical Group Limited, a company under common control. The

facility is secured by a fixed and floating charge over all assets of this company together with the assets

of ID Medical Group Limited and Group 24 Limited. Two of the directors have also provided a personal

guarantee limited to £1,000,000 in connection with this facility. The company does not anticipate that

these guarantees will be called upon.