Sellick Partnership Limited - Limited company accounts 18.2

REGISTERED NUMBER: 04156002 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 28 February 2018

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 2018.

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 2018 from the year ended 28 February 2017 by 8.1%.

The continuing investment in 2017 and 2018 enabled Sellick Partnership to continue its growth in the medium

term and has seen the Company grow its gross profit by 14.0%.

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

17 September 2018

The directors present their report with the financial statements of the company for the year ended 28 February 2018.

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 £350,000 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 2018 will be £350,000.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 March 2017 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

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

17 September 2018

Opinion

We have audited the financial statements of Sellick Partnership Limited (the 'company') for the year ended

28 February 2018 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes

in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The

financial reporting framework that has been applied in their preparation is applicable law and United Kingdom

Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in

the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 28 February 2018 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to

report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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 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, 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 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 five, 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.

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 auditor's 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.

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.

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

17 September 2018

TURNOVER

41,900,251

38,754,621

Cost of sales

35,334,608

32,994,082

GROSS PROFIT

6,565,643

5,760,539

Administrative expenses

6,071,816

4,889,921

OPERATING PROFIT

5

493,827

870,618

Interest payable and similar expenses

7

57,111

71,282

PROFIT BEFORE TAXATION

436,716

799,336

Tax on profit

8

139,355

197,861

PROFIT FOR THE FINANCIAL YEAR

297,361

601,475

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

297,361

601,475

FIXED ASSETS

Intangible assets

10

226,820

215,700

Tangible assets

11

66,934

145,275

293,754

360,975

CURRENT ASSETS

Debtors

12

6,729,688

6,700,953

Cash at bank and in hand

56,808

239,989

6,786,496

6,940,942

CREDITORS

Amounts falling due within one year

13

6,487,686

6,647,651

NET CURRENT ASSETS

298,810

293,291

TOTAL ASSETS LESS CURRENT LIABILITIES

592,564

654,266

CREDITORS

Amounts falling due after more than one year

14

-

(8,563

)

PROVISIONS FOR LIABILITIES

17

(27,000

)

(27,500

)

NET ASSETS

565,564

618,203

CAPITAL AND RESERVES

Called up share capital

18

100

100

Retained earnings

19

565,464

618,103

SHAREHOLDERS' FUNDS

565,564

618,203

The financial statements were approved by the Board of Directors on 17 September 2018 and were signed on its behalf by:

T J Sellick - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 29 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

Changes in equity

Dividends

-

(350,000

)

(350,000

)

Total comprehensive income

-

297,361

297,361

Balance at 28 February 2018

100

565,464

565,564

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 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.

Website development costs are being amortised evenly over their estimated useful life of four years.

Computer software is being amortised evenly over its estimated useful life of four years.

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

2018

2017

£

£

Consultants and Office Staff - Wages and Salaries

3,236,160

3,103,556

Social Security Costs

329,738

384,491

Pension Costs

87,762

51,848

3,653,660

3,539,895

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

2018

2017

Directors

1

4

Consultants

62

57

Office Staff

20

20

83

81

2018

2017

£

£

Directors' remuneration

106,820

302,054

Directors' pension contributions to money purchase schemes

56,000

43,500

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

Money purchase schemes

1

1

5.	OPERATING PROFIT

The operating profit is stated after charging:

2018

2017

£

£

Other operating leases

241,951

277,747

Depreciation - owned assets

30,113

38,332

Depreciation - assets on hire purchase contracts

-

20,125

Amortisation - owned assets

25,880

-

Amortisation - assets on hire purchase contracts

14,875

-

Goodwill amortisation

71,634

71,634

Auditors' remuneration

10,900

10,900

Auditors' remuneration for non audit work

11,186

10,406

6.	EXCEPTIONAL ITEMS

2018

2017

£

£

Exceptional items

(100,000

)

-

Exceptional items relate to amounts due from a related party company being written off.

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2018

2017

£

£

Invoice discounting interest

54,388

64,505

Hire purchase

2,723

6,777

57,111

71,282

8.

TAXATION

Analysis of the tax charge

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

2018

2017

£

£

Current tax:

UK corporation tax

139,925

185,964

Under / (Over) provision of

corporation tax

(70

)

17,397

Total current tax

139,855

203,361

Deferred tax

(500

)

(5,500

)

Tax on profit

139,355

197,861

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:

2018

2017

£

£

Profit before tax

436,716

799,336

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2017 - 20%)

82,976

159,867

Effects of:

Expenses not deductible for tax purposes

22,802

7,797

Adjustments to tax charge in respect of previous periods

(70

)

17,397

Rounding

-

(74

)

Depreciation on assets not subject to capital allowances

13,610

14,327

Changes in taxation rates

623

(1,453

)

Deferred tax not provided for

414

-

Write off of related company loan amounts

19,000

-

Total tax charge

139,355

197,861

9.

DIVIDENDS

2018

2017

£

£

Ordinary shares of £1 each

Interim

350,000

580,000

10.	INTANGIBLE FIXED ASSETS

Website

development

Computer

Goodwill

costs

software

Totals

£

£

£

£

COST

At 1 March 2017

716,341

-

-

716,341

Additions

-

5,000

14,703

19,703

Reclassification/transfer

-

38,595

118,573

157,168

At 28 February 2018

716,341

43,595

133,276

893,212

AMORTISATION

At 1 March 2017

500,641

-

-

500,641

Amortisation for year

71,634

9,649

31,106

112,389

Reclassification/transfer

-

11,257

42,105

53,362

At 28 February 2018

572,275

20,906

73,211

666,392

NET BOOK VALUE

At 28 February 2018

144,066

22,689

60,065

226,820

At 28 February 2017

215,700

-

-

215,700

Included within total net book value of intangible assets is £17,646 (2017 - £nil) in respect of assets held

under hire purchase contracts. The amortisation charged on these assets was £14,875 (2017 - £nil).

These assets held under hire purchase contracts have been reclassified from computer equipment to

computer software during the period.

11.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

Equipment

fittings

equipment

Totals

£

£

£

£

COST

At 1 March 2017

161,711

97,338

262,128

521,177

Additions

5,678

19,801

30,099

55,578

Reclassification/transfer

-

-

(157,168

)

(157,168

)

At 28 February 2018

167,389

117,139

135,059

419,587

DEPRECIATION

At 1 March 2017

157,671

87,604

130,627

375,902

Charge for year

1,562

10,840

17,711

30,113

Reclassification/transfer

-

-

(53,362

)

(53,362

)

At 28 February 2018

159,233

98,444

94,976

352,653

NET BOOK VALUE

At 28 February 2018

8,156

18,695

40,083

66,934

At 28 February 2017

4,040

9,734

131,501

145,275