Company Registration No. 03545071 (England and Wales)
Sugarman Group Limited
Annual report and financial statements
for the year ended 27 June 2022
Sugarman Group Limited
Company information
Directors
Ian Munro
Health Care Resourcing Group Limited
Company number
03545071
Registered office
33 Soho Square
London
W1D 3QU
Independent auditor
Saffery Champness LLP
Trinity
16 John Dalton Street
Manchester
M2 6HY
Sugarman Group Limited
Contents
Page
Directors' report
1
Directors' responsibilities statement
2
Independent auditor's report
3 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Notes to the financial statements
10 - 22
Sugarman Group Limited
Directors' report
For the year ended 27 June 2022
Page 1
The directors present their annual report and financial statements for the year ended 27 June 2022.
Principal activities
The principal activity of the company continued to be that of the provision of managed workforce solutions.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Ian Munro
Health Care Resourcing Group Limited
Auditor
Saffery Champness LLP have expressed their willingness to continue in office.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Ian Munro
Director
9 June 2023
Sugarman Group Limited
Directors' responsibilities statement
For the year ended 27 June 2022
Page 2
The directors are responsible for preparing the annual 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 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.
Sugarman Group Limited
Independent auditor's report
To the members of Sugarman Group Limited
Page 3
Opinion
We have audited the financial statements of Sugarman Group Limited (the 'company') for the year ended 27 June 2022 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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 27 June 2022 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.
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.
Sugarman Group Limited
Independent auditor's report (continued)
To the members of Sugarman Group Limited
Page 4
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has 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 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 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 in preparing the directors' report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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.
Sugarman Group Limited
Independent auditor's report (continued)
To the members of Sugarman Group Limited
Page 5
Auditor's 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 auditor's 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
Sugarman Group Limited
Independent auditor's report (continued)
To the members of Sugarman Group Limited
Page 6
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 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.
Simon Kite BSc FCA
Senior Statutory Auditor
For and on behalf of Saffery Champness LLP
9 June 2023
Chartered Accountants
Statutory Auditors
Trinity
16 John Dalton Street
Manchester
M2 6HY
Sugarman Group Limited
Statement of comprehensive income
For the year ended 27 June 2022
Page 7
Year
Period
ended
ended
27 June
27 June
2022
2021
Notes
£
£
Turnover
3
8,904,493
20,715,517
Cost of sales
(7,653,581)
(16,741,269)
Gross profit
1,250,912
3,974,248
Administrative expenses
(1,216,197)
(5,136,187)
Other operating income
570,567
Gain/(loss) on write off of intercompany loan
4
39,159
(77,136)
Operating profit/(loss)
5
73,874
(668,508)
Interest payable and similar expenses
7
(24,522)
(45,455)
Other gains and losses
8
700,000
Profit/(loss) before taxation
49,352
(13,963)
Tax on profit/(loss)
9
7,450
(418,087)
Profit/(loss) for the financial year
56,802
(432,050)
The income statement has been prepared on the basis that all operations are continuing operations.
Sugarman Group Limited
Statement of financial position
As at 27 June 2022
Page 8
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
10
16,164
64,515
Current assets
Debtors
11
2,476,773
3,073,580
Cash at bank and in hand
586,376
664,377
3,063,149
3,737,957
Creditors: amounts falling due within one year
12
(4,149,525)
(4,535,958)
Net current liabilities
(1,086,376)
(798,001)
Total assets less current liabilities
(1,070,212)
(733,486)
Accruals and deferred income
15
(161,555)
(555,083)
Net liabilities
(1,231,767)
(1,288,569)
Capital and reserves
Called up share capital
17
131,913
131,913
Profit and loss reserves
(1,363,680)
(1,420,482)
Total equity
(1,231,767)
(1,288,569)
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 9 June 2023 and are signed on its behalf by:
Ian Munro
Director
Company Registration No. 03545071 (England and Wales)
Sugarman Group Limited
Statement of changes in equity
For the year ended 27 June 2022
Page 9
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2020
131,913
(988,432)
(856,519)
Period ended 27 June 2021:
Loss and total comprehensive income for the period
-
(432,050)
(432,050)
Balance at 27 June 2021
131,913
(1,420,482)
(1,288,569)
Year ended 27 June 2022:
Profit and total comprehensive income for the year
-
56,802
56,802
Balance at 27 June 2022
131,913
(1,363,680)
(1,231,767)
Sugarman Group Limited
Notes to the financial statements
For the year ended 27 June 2022
Page 10
1
Accounting policies
Company information
Sugarman Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is 33 Soho Square, London, W1D 3QU.
1.1
Reporting period
The financial statements presented this year are for a 12 month period. In the prior year the financial statements covered an 18 month period. This will mean that the comparative amounts shown are not entirely comparable. This longer accounting period was used in the prior year accounts to bring the year-end date in line with the other entity's in the group.
1.2
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Health Care Resourcing Group Limited. These consolidated financial statements are available from its registered office, 33 Soho Square, London W1D 3QU.
Sugarman Group Limited
Notes to the financial statements (continued)
For the year ended 27 June 2022
1
Accounting policies (continued)
Page 11
1.3
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The company is a subsidiary of Twenty20 Capital Investments Limited and relies upon group facilities for the finances to meet its liabilities as they fall due. Based on the forecasts for the trade of the company over the next 12 months and beyond this time frame the Board believe that a going concern basis is correct. Therefore the board of Twenty20 Capital Investments Limited have provided a letter of support for this subsidiary and ensures the trading support for the 12 months from the date that these accounts are signed.
1.4
Turnover
Revenue is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue arising from temporary placements is recognised when the service has been delivered. Revenue from permanent placements is recognised when the individual commences their employment.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
Over the period of the lease
Fixtures and fittings
12.5% to 20%
Computers
12.5% to 20%
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Sugarman Group Limited
Notes to the financial statements (continued)
For the year ended 27 June 2022
1
Accounting policies (continued)
Page 12
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.
Basic financial assets
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Sugarman Group Limited
Notes to the financial statements (continued)
For the year ended 27 June 2022
1
Accounting policies (continued)
Page 13
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Classification of financial liabilities
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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Sugarman Group Limited
Notes to the financial statements (continued)
For the year ended 27 June 2022
1
Accounting policies (continued)
Page 14
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
Sugarman Group Limited
Notes to the financial statements (continued)
For the year ended 27 June 2022
1
Accounting policies (continued)
Page 15
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.16
Amounts due in respect of invoice discounting are separately disclosed as current liabilities. The company can use these facilities to draw down on a percentage of the value of certain sales invoices. The management and collection of trade debtors remains with the company.
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Bad debt provision
Management review the aged debtors listing on a weekly basis for any slow moving debts. If it is deemed probable that they will not be able to recover the debt a provision is made in the financial statements.
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Labour Recruitment
8,904,493
20,715,517
Sugarman Group Limited
Notes to the financial statements (continued)
For the year ended 27 June 2022
3
Turnover and other revenue (continued)
Page 16
2022
2021
£
£
Turnover analysed by geographical market
United Kingdom
8,904,493
20,715,517
2022
2021
£
£
Other revenue
Grants received
570,567
4
Exceptional items
2022
2021
£
£
Expenditure
Loss on write off of intercompany loan
1,260
77,136
(Gain) on write off of intercompany loan
(40,419)
-
(39,159)
77,136
In the current year, the ultimate parent company Health Care Resourcing Group Limited, in which the company is a subsidiary, undertook an exercise to reduce the carrying value of intercompany loans which has resulted in losses and gains as detailed above.
5
Operating profit/(loss)
2022
2021
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange gains
(4,594)
Government grants
(570,567)
Depreciation of owned tangible fixed assets
48,351
135,739
Operating lease charges
575,875
Sugarman Group Limited
Notes to the financial statements (continued)
For the year ended 27 June 2022
Page 17
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Service personnel
53
141
Administrative and management
14
33
Total
67
174
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
1,429,039
6,171,206
Social security costs
144,405
512,525
Pension costs
20,839
80,990
1,594,283
6,764,721
7
Interest payable and similar expenses
2022
2021
£
£
Interest on bank overdrafts and loans
659
Interest on invoice finance arrangements
24,522
44,796
24,522
45,455
8
Other gains and losses
2022
2021
£
£
Gain on disposal of fixed asset investments
700,000
In prior year the company disposed of its investment in Sugarman Group International Pty Limited, previously a 100% owned subsidiary.
Sugarman Group Limited
Notes to the financial statements (continued)
For the year ended 27 June 2022
Page 18
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
(16,050)
Adjustments in respect of prior periods
550
428,137
Total current tax
550
412,087
Deferred tax
Origination and reversal of timing differences
(8,000)
6,000
Total tax (credit)/charge
(7,450)
418,087
The actual (credit)/charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit/(loss) before taxation
49,352
(13,963)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
9,377
(2,653)
Tax effect of expenses that are not deductible in determining taxable profit
1,007
28,091
Tax effect of income not taxable in determining taxable profit
(7,440)
Adjustments in respect of prior years
428,137
Group relief
(6,708)
Permanent capital allowances in excess of depreciation
(7,824)
Depreciation on assets not qualifying for tax allowances
10,144
Other non-reversing timing differences
331
Utilisation of losses brought foward
(5,045)
(22,780)
Deferred tax
(8,000)
(6,000)
Taxation (credit)/charge for the year
(7,450)
418,087
Sugarman Group Limited
Notes to the financial statements (continued)
For the year ended 27 June 2022
Page 19
10
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 28 June 2021 and 27 June 2022
29,323
618,273
191,102
838,698
Depreciation and impairment
At 28 June 2021
29,323
603,900
140,960
774,183
Depreciation charged in the year
2,911
45,440
48,351
At 27 June 2022
29,323
606,811
186,400
822,534
Carrying amount
At 27 June 2022
11,462
4,702
16,164
At 27 June 2021
14,373
50,142
64,515
11
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,539,687
1,861,914
Amounts owed by group undertakings
700,145
630,494
Other debtors
3,373
37,267
Prepayments and accrued income
207,603
525,940
2,450,808
3,055,615
Deferred tax asset (note 14)
25,965
17,965
2,476,773
3,073,580
Sugarman Group Limited
Notes to the financial statements (continued)
For the year ended 27 June 2022
Page 20
12
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Invoice discounting facility
13
1,444,726
784,274
Trade creditors
44,376
713,526
Amounts owed to group undertakings
2,221,230
1,890,160
Taxation and social security
175,911
681,475
Other creditors
263,282
466,523
4,149,525
4,535,958
13
Loans and overdrafts
2022
2021
£
£
Invoice discounting facility
1,444,726
784,274
Payable within one year
1,444,726
784,274
The invoice discounting facilities, are secured by debentures and fixed and floating charges over the all the assets of the company including properties owned by the company.
There is a cross company guarantee in place for all Health Care Resourcing Group Limited (HCRG) subsidiary trading companies in relation to the invoice discount facility held by HCRG. The total group liability at 30 June 2022 in respect of this facility was £22,084,398 (2021: £12,395,044).
14
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2022
2021
Balances:
£
£
Accelerated capital allowances
25,965
17,965
Sugarman Group Limited
Notes to the financial statements (continued)
For the year ended 27 June 2022
14
Deferred taxation (continued)
Page 21
2022
Movements in the year:
£
Asset at 28 June 2021
(17,965)
Credit to profit or loss
(8,000)
Asset at 27 June 2022
(25,965)
The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.
15
Accruals and deferred income
2022
2021
£
£
Accruals and deferred income
161,555
555,083
16
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
20,839
80,990
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
17
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
131,913 Ordinary shares of £1 each
131,913
131,913
131,913
131,913
Sugarman Group Limited
Notes to the financial statements (continued)
For the year ended 27 June 2022
Page 22
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021
£
£
Within one year
1,194
Between two and five years
199
1,393
19
Events after the reporting date
On 25 November 2022, the company entered into a guarantee and debenture secured by a fixed and floating charge over the assets of the company with Health Care Resourcing Group Limited (as security trustee). This is in relation to Loan Notes amounting to £29,507,835 held by a related party, T20 Pioneer Midco Limited.
20
Ultimate controlling party
For the year, the immediate parent undertaking was HCRG Workforce Solutions Limited and the ultimate parent undertaking was Health Care Resourcing Group Limited both of which are companies incorporated and registered in England & Wales. Copies of their financial statements are available from 33 Soho Square, London WD 3QU. On 25 November 2022, Twenty20 Capital Investments Limited became the ultimate parent undertaking.
There is not considered to be an ultimate controlling party.
2022-06-272021-06-28falseCCH SoftwareCCH Accounts Production 2022.300Ian MunroHealth Care Resourcing Group Limited035450712021-06-282022-06-2703545071bus:Director12021-06-282022-06-2703545071bus:Director22021-06-282022-06-2703545071bus:RegisteredOffice2021-06-282022-06-27035450712022-06-27035450712020-01-012021-06-270354507112020-01-012021-06-2703545071core:RetainedEarningsAccumulatedLosses2020-01-012021-06-2703545071core:RetainedEarningsAccumulatedLosses2021-06-282022-06-27035450712021-06-2703545071core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-06-2703545071core:FurnitureFittings2022-06-2703545071core:ComputerEquipment2022-06-2703545071core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-06-2703545071core:FurnitureFittings2021-06-2703545071core:ComputerEquipment2021-06-2703545071core:CurrentFinancialInstrumentscore:WithinOneYear2022-06-2703545071core:CurrentFinancialInstrumentscore:WithinOneYear2021-06-2703545071core:CurrentFinancialInstruments2022-06-2703545071core:CurrentFinancialInstruments2021-06-2703545071core:ShareCapital2022-06-2703545071core:ShareCapital2021-06-2703545071core:RetainedEarningsAccumulatedLosses2022-06-2703545071core:RetainedEarningsAccumulatedLosses2021-06-2703545071core:ShareCapital2019-12-3103545071core:RetainedEarningsAccumulatedLosses2019-12-3103545071core:LandBuildingscore:LongLeaseholdAssets2021-06-282022-06-2703545071core:FurnitureFittings2021-06-282022-06-2703545071core:ComputerEquipment2021-06-282022-06-2703545071core:UKTax2021-06-282022-06-2703545071core:UKTax2020-01-012021-06-270354507112021-06-282022-06-270354507122021-06-282022-06-270354507122020-01-012021-06-270354507132021-06-282022-06-270354507132020-01-012021-06-2703545071core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-06-2703545071core:FurnitureFittings2021-06-2703545071core:ComputerEquipment2021-06-27035450712021-06-2703545071core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-06-282022-06-2703545071core:WithinOneYear2022-06-2703545071core:WithinOneYear2021-06-2703545071core:BetweenTwoFiveYears2022-06-2703545071core:BetweenTwoFiveYears2021-06-2703545071bus:PrivateLimitedCompanyLtd2021-06-282022-06-2703545071bus:FRS1022021-06-282022-06-2703545071bus:Audited2021-06-282022-06-2703545071bus:FullAccounts2021-06-282022-06-27xbrli:purexbrli:sharesiso4217:GBP