|
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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
|
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
|
Other information |
The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The director is 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. |
|
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
● |
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
● |
the strategic report and the director's report have been prepared in accordance with applicable legal requirements. |
|
Matters on which we are required to report by exception |
First Advantage Europe Ltd |
Statement of Cash Flows |
for the year ended 31 December 2022 |
|
Notes |
|
2022 |
|
2021 |
£ |
£ |
Operating activities |
Profit for the financial year |
5,559,919 |
|
2,351,662 |
|
Adjustments for: |
Interest receivable |
(83) |
|
- |
Tax on profit on ordinary activities |
1,069,280 |
|
85,001 |
Depreciation |
151,928 |
|
113,373 |
Amortisation of goodwill |
1,028,611 |
|
943,049 |
Increase in debtors |
(840,708) |
|
(4,785,166) |
Increase in creditors |
298,048 |
|
2,062,390 |
|
|
|
7,266,995 |
|
770,309 |
|
Interest received |
83 |
|
- |
Corporation tax paid |
(1,160,476) |
|
6,195 |
|
Cash generated by operating activities |
6,106,602 |
|
776,504 |
|
|
|
|
|
|
Investing activities |
Payments to acquire intangible fixed assets |
(16,068) |
|
(5,320,649) |
Payments to acquire tangible fixed assets |
(64,290) |
|
(335,560) |
|
Cash used in investing activities |
(80,358) |
|
(5,656,209) |
|
|
|
|
|
|
Financing activities |
Proceeds from the issue of share |
- |
|
7,250,000 |
|
Cash generated by financing activities |
- |
|
7,250,000 |
|
|
|
|
|
|
Net cash generated |
Cash generated by operating activities |
6,106,602 |
|
776,504 |
Cash used in investing activities |
(80,358) |
|
(5,656,209) |
Cash generated by financing activities |
- |
|
7,250,000 |
|
Net cash generated |
6,026,244 |
|
2,370,295 |
|
Cash and cash equivalents at 1 January |
3,153,666 |
|
783,371 |
Cash and cash equivalents at 31 December |
9,179,910 |
|
3,153,666 |
|
|
|
|
|
|
Cash and cash equivalents comprise: |
Cash at bank |
9,179,910 |
|
3,153,666 |
|
|
|
|
|
|
|
|
|
Debtors |
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
|
|
Creditors |
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
|
|
Provisions |
|
Provisions (i.e. liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
|
|
Foreign currency translation |
|
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
|
|
Leased assets |
|
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
|
|
Pensions |
|
Contributions to defined contribution plans are expensed in the period to which they relate. |
|
|
2 |
Analysis of turnover |
2022 |
|
2021 |
£ |
£ |
|
|
Services rendered |
38,524,885 |
|
27,293,619 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
94% |
|
83% |
|
Rest of the World |
6% |
|
17% |
|
|
|
|
|
|
100% |
|
100% |
|
|
|
|
|
|
|
|
|
|
3 |
Operating profit |
2022 |
|
2021 |
£ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
151,928 |
|
113,373 |
|
Amortisation of intangible assets |
1,028,611 |
|
943,049 |
|
Operating lease rentals - land and buildings |
286,714 |
|
246,682 |
|
Auditors' remuneration for audit services |
7,032 |
|
6,369 |
|
|
|
|
|
|
|
|
|
|
4 |
Staff costs |
2022 |
|
2021 |
£ |
£ |
|
|
Wages and salaries |
5,076,704 |
|
4,511,597 |
|
Social security costs |
762,385 |
|
498,037 |
|
Other employment taxes and levies |
5,444 |
|
39,645 |
|
Other pension costs |
312,842 |
|
239,127 |
|
|
|
|
|
|
6,157,375 |
|
5,288,406 |
|
|
|
|
|
|
|
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
|
Administration |
168 |
|
131 |
|
|
|
|
|
|
168 |
|
131 |
|
|
|
|
|
|
|
|
|
|
5 |
Taxation |
2022 |
|
2021 |
£ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
1,346,109 |
|
91,196 |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
(276,829) |
|
(6,195) |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
1,069,280 |
|
85,001 |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2022 |
|
2021 |
£ |
£ |
|
Profit on ordinary activities before tax |
6,629,199 |
|
2,436,663 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
19% |
|
19% |
|
£ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
1,259,548 |
|
462,966 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
338 |
|
204,658 |
|
Capital allowances for period in excess of depreciation |
790 |
|
(35,091) |
|
Tax treatment of intangible fixed assets |
85,433 |
|
57,675 |
|
Utilisation of tax losses |
- |
|
(599,012) |
|
|
Current tax charge for period |
1,346,109 |
|
91,196 |
|
|
|
|
|
|
|
|
|
|
6 |
Intangible fixed assets |
£ |
|
|
|
Cost |
|
At 1 January 2022 |
5,320,649 |
|
Additions |
16,068 |
|
At 31 December 2022 |
5,336,717 |
|
|
|
|
|
|
|
|
|
|
Amortisation |
|
At 1 January 2022 |
943,049 |
|
Provided during the year |
1,028,611 |
|
At 31 December 2022 |
1,971,660 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 December 2022 |
3,365,057 |
|
At 31 December 2021 |
4,377,600 |
|
|
|
|
|
|
|
|
|
|
Goodwill and other assets have been recognised as intangible fixed assets and are being amortised over their estimated useful economic life of between 2 and 14 years. |
|
7 |
Tangible fixed assets |
|
|
|
|
|
|
|
|
Fixtures, fittings and equipment |
|
|
|
|
|
|
|
|
At cost |
£ |
|
Cost or valuation |
|
At 1 January 2022 |
586,429 |
|
Additions |
64,290 |
|
At 31 December 2022 |
650,719 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 January 2022 |
287,016 |
|
Charge for the year |
151,928 |
|
At 31 December 2022 |
438,944 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 December 2022 |
211,775 |
|
At 31 December 2021 |
299,413 |
|
|
|
|
|
|
|
|
|
|
|
8 |
Debtors |
2022 |
|
2021 |
£ |
£ |
|
|
Trade debtors |
6,411,823 |
|
6,037,749 |
|
Amounts owed by group undertakings and undertakings in which the Company has a participating interest |
|
478,858 |
|
340,648 |
|
Taxation |
|
|
|
|
412,179 |
|
- |
|
Other debtors |
122,256 |
|
206,011 |
|
|
|
|
|
|
7,425,116 |
|
6,584,408 |
|
|
|
|
|
|
|
|
|
|
9 |
Creditors: amounts falling due within one year |
2022 |
|
2021 |
£ |
£ |
|
|
Trade creditors |
1,422,942 |
|
1,867,441 |
|
Amounts owed to group undertakings and undertakings in which the Company has a participating interest |
|
1,432,374 |
|
1,603,057 |
|
Corporation tax |
- |
|
91,196 |
|
Other taxes and social security costs |
1,033,693 |
|
252,425 |
|
Other creditors |
641,321 |
|
1,278,277 |
|
Accruals and deferred income |
768,918 |
|
- |
|
|
|
|
|
|
5,299,248 |
|
5,092,396 |
|
|
|
|
|
|
|
|
|
|
10 |
Share capital |
Nominal |
|
2022 |
|
2022 |
|
2021 |
value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
11,752,751 |
|
4,502,752 |
|
4,502,752 |
|
|
|
|
|
|
|
|
|
|
11 |
Share premium |
2022 |
|
2021 |
£ |
£ |
|
|
At 1 January |
7,249,999 |
|
- |
|
Shares issued |
- |
|
7,249,999 |
|
|
At 31 December |
7,249,999 |
|
7,249,999 |
|
|
|
|
|
|
|
|
|
|
12 |
Profit and loss account |
2022 |
|
2021 |
£ |
£ |
|
|
At 1 January |
(2,430,060) |
|
(4,781,722) |
|
Profit for the financial year |
5,559,919 |
|
2,351,662 |
|
|
At 31 December |
3,129,859 |
|
(2,430,060) |
|
|
|
|
|
|
|
|
|
|
13 |
Other financial commitments |
|
|
Total future minimum lease payments under non-cancellable operating leases: |
|
|
|
Land and buildings |
|
Land and buildings |
Other |
Other |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
£ |
£ |
£ |
£ |
|
Falling due: |
|
within one year |
4,193 |
|
3,258 |
|
- |
|
- |
|
within two to five years |
123,750 |
|
324,322 |
|
- |
|
- |
|
in over five years |
- |
|
870,274 |
|
- |
|
- |
|
|
127,943 |
|
1,197,854 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
14 |
Related party transactions |
|
|
The Company has taken advantage of the exemption in Financial Reporting Standard 102, paragraph 33.1A, from disclosing transactions with other group companies. |
|
|
15 |
Controlling party |
|
|
The Company is wholly owned by FADV B.V., a corporation registered in The Netherlands. The ultimate controlling party is First Advantage Corporation, a United States corporation. |
|
|
16 |
Presentation currency |
|
|
The financial statements are presented in Sterling. |
|
|
17 |
Legal form of entity and country of incorporation |
|
|
First Advantage Europe Ltd is a private company limited by shares and incorporated in England and Wales. |
|
|
18 |
Principal place of business |
|
|
The address of the Company's principal place of business and registered office is: |
|
|
1 Wilford Business Park |
|
Ruddington Lane |
|
Nottingham |
|
NG11 7EP |
|
|
19 |
Reconciliations on adoption of FRS 102 |
|
|
Profit and loss for the year ended 31 December 2021 |
£ |
|
|
Profit under former UK GAAP |
2,351,662 |
|
|
Profit under FRS 102 |
2,351,662 |
|
|
|
|
|
|
|
|
Balance sheet at 31 December 2021 |
£ |
|
|
Equity under former UK GAAP |
9,322,691 |
|
|
Equity under FRS 102 |
9,322,691 |
|
|
|
|
|
|
|
|
Balance sheet at 1 January 2021 |
£ |
|
|
Equity under former UK GAAP |
- |
|
|
Equity under FRS 102 |
- |
|
|
|
|
|
|
|