Company Registration No. 04599477 (England and Wales)
INTERIM PARTNERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
INTERIM PARTNERS LIMITED
COMPANY INFORMATION
Directors
DJ Baird
AJL McIntee
MJ Oliver
(Appointed 1 July 2020)
Company number
04599477
Registered office
One Angel Court
15th Floor
London
EC2R 7HJ
Auditor
BHP LLP
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
Business address
The Exchange
Station Parade
Harrogate
North Yorkshire
HG1 1TS
INTERIM PARTNERS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
INTERIM PARTNERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 1 -
The directors present the strategic report for the year ended 31 December 2019.
Fair review of the business
Business model, review of the business and future developments
Interim Partners is a market leading global provider of senior interim executives. The business helps organisations going through change and transformation by introducing them to exceptional interim executives who materially influence their performance.
The core strategy of the business is to:
-
Deliver the best service to our clients - through recruiting high performing and experienced consultants who build long-term relationships
-
Make a difference through technology - using the "Return on Interim" technology to allow clients to quantify the benefits their interim manager deliver
The company continued to be profitable in 2019, investing in its high performing team to help drive long-term growth to the business alongside continued investment in systems.
During 2020 the focus was again both on securing of new clients and new placements within its existing client base, as well as streamlining the company’s cost base. The Covid-19 pandemic had an impact on the businesses to whom the company provides services, and as such a decline in revenue and gross profit was seen in 2020. However, the streamlining of the company’s cost base has meant that this decline in revenue was partly mitigated at the EBITDA level.
Whilst it is not possible to predict the ongoing impact of the Covid-19 pandemic, and the potential for an economic recession during the course of 2021, the company continues to maintain strong relationships with its long-standing clients and expects to improve on 2020 performance as the pandemic restrictions begin to ease, coupled with a greater level of cross-selling of services to clients of other group companies
People
Interim Partners has an experienced and high-performing team, with five of its consultants placing in the top 20 Interim consultants in country, the the Institute of Interim Managers.
Investment in our people was a key focus for the year, with efforts on talent and succession planning, reward and recognition, work-life balance and corporate & social responsibility all contributing to the Company achieving the investors in People Gold award status until 2022.
Principal risks and uncertainties
In the process of applying the Company's accounting policies, management considers that the following factors are the key risks of the business.
Bad debt
Some of the Company's clients require interim expertise in a turnaround or distressed situation, giving rise to the potential for bad debts. The Company mitigates this through credit checks and tighter payment term arrangements, including upfront and on account payments.
Cash flow
The Company has no interest-bearing loans and the Company's income and operating cash flows are subsequently independent of change in market interest rates.
Dependence on key personnel
The future success of the Company is dependent on the continued service of senior management and key personnel. The loss of service of the directors and other key personnel could have a material adverse impact on the business. However, the business is not reliant on any one key individual.
INTERIM PARTNERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
Competition
The directors believe the Company is well position in its chosen markets. Whilst the Company will seek to continue to improve its competitive position, the actions of current or indeed potential competitors may adversely affect the Company's business.
Strength of key markets
The market for interim managers is reasonable at present. It is through difficult to predict how this market will move in the foreseeable future. Although the Company continues to trade successfully, a further downturn in the wider economy could have a material adverse effect on the business.
Key performance indicators
Financial review and KPIS
The key performance indicators are:
2019 2018
£
£
Revenue (£000s)
22,029 22,745
This is the standard accounting revenue measure and indicates the trading performance.
Gross Profit (£000s)
5,219 5,381
Gross profit is the Company's measure of net fee income from client assignments, and is the profit on an assignment after incurring the costs of the interim candidates placed with clients.
EBITDA (£000s)
629 649
EBITDA is a measure of operating profit, adjusted for depreciation and amortisation.
Year-on-year revenue decrease of 3% is largely driven by a reduction in permanent placement fee. Fee income (gross profit) also decreased year-on-year by 3% in line with revenue. Gross margin % remaining flat at 23.7% in each year despite the reduction in permanent placement fees at a high margin, with the gross margin from interim contracts increasing year-on-year. The small decline in EBITDA reflects the reduction in gross margin, partially offset by a greater level of cost control in 2019.
DJ Baird
Director
5 March 2021
INTERIM PARTNERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2019.
Principal activities
The principal activity of the company continued to be that of interim executive recruitment.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
DJ Baird
AJL McIntee
MJ Oliver
(Appointed 1 July 2020)
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £419,500. The directors do not recommend payment of a final dividend.
Auditor
In accordance with the company's articles, a resolution proposing that BHP LLP be reappointed as auditor of the company will be put at a General Meeting.
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
DJ Baird
Director
5 March 2021
INTERIM PARTNERS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 4 -
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.
INTERIM PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF INTERIM PARTNERS LIMITED
- 5 -
Opinion
We have audited the financial statements of Interim Partners Limited (the 'company') for the year ended 31 December 2019 which comprise the statement of comprehensive income, the balance sheet, the 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 FRS 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 31 December 2019 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
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
.
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.
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 we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 our audit
:
-
the information given in the strategic report and the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
INTERIM PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF INTERIM PARTNERS LIMITED
- 6 -
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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 directors'
r
esponsibilities
s
tatement, 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.
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.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
INTERIM PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF INTERIM PARTNERS LIMITED
- 7 -
This report is made solely to the company's member 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 member 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 member for our audit work, for this report, or for the opinions we have formed.
Nigel Bullas (Senior Statutory Auditor)
for and on behalf of BHP LLP
5 March 2021
Chartered Accountants
Statutory Auditor
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
INTERIM PARTNERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
2019
2018
Notes
£
£
Turnover
3
22,028,500
22,744,688
Cost of sales
(16,809,668)
(17,363,588)
Gross profit
5,218,832
5,381,100
Administrative expenses
(4,817,187)
(4,839,594)
Other operating income
87,043
-
Operating profit
4
488,688
541,506
Interest receivable and similar income
7
15
153
Interest payable and similar expenses
8
(37,645)
(61,978)
Profit before taxation
451,058
479,681
Tax on profit
9
(100,671)
(115,726)
Profit for the financial year
350,387
363,955
The profit and loss account has been prepared on the basis that all operations are continuing operations.
INTERIM PARTNERS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2019
31 December 2019
- 9 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,032,421
799,390
Current assets
Debtors
12
6,526,962
5,537,502
Cash at bank and in hand
128,108
13,799
6,655,070
5,551,301
Creditors: amounts falling due within one year
13
(6,077,098)
(4,700,785)
Net current assets
577,972
850,516
Total assets less current liabilities
1,610,393
1,649,906
Provisions for liabilities
15
(65,100)
(35,500)
Net assets
1,545,293
1,614,406
Capital and reserves
Called up share capital
18
1,000
1,000
Share premium account
6,141
6,141
Profit and loss reserves
1,538,152
1,607,265
Total equity
1,545,293
1,614,406
The financial statements were approved by the board of directors and authorised for issue on 5 March 2021 and are signed on its behalf by:
DJ Baird
Director
Company Registration No. 04599477
INTERIM PARTNERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2018
1,000
6,141
1,353,191
1,360,332
Year ended 31 December 2018:
Profit and total comprehensive income for the year
-
-
363,955
363,955
Dividends
10
-
-
(109,881)
(109,881)
Balance at 31 December 2018
1,000
6,141
1,607,265
1,614,406
Year ended 31 December 2019:
Profit and total comprehensive income for the year
-
-
350,387
350,387
Dividends
10
-
-
(419,500)
(419,500)
Balance at 31 December 2019
1,000
6,141
1,538,152
1,545,293
INTERIM PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 11 -
1
Accounting policies
Company information
Interim Partners Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
One Angel Court, 15th Floor, London, EC2R 7HJ.
1.1
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 a
mounts
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
.
T
he company has
therefore
taken advantage of
e
xemptions 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 each category of financial instrument;
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
.
Interim Partners Limited is a wholly owned subsidiary of New Street Consulting Group Limited (formerly New Street (Group) Limited) and the results of Interim Partners Limited are included in the consolidated financial statements of New Street Consulting Group Limited (formerly New Street (Group) Limited) which are available from One Angel Court, 15 Floor, London, EC2R 7HJ.
1.2
Going concern
The directors have considered the impact of COVID-19 on the company’s trade, workforce and supply chain, as well as the wider economy. Whilst it is not considered practical to accurately assess the duration and extent of the disruption, the directors are confident that they have in place plans to deal with any financial losses that may arise. The directors therefore continue to adopt the going concern basis of preparation for these financial statements.
true
1.3
Turnover
Turnover 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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
INTERIM PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 12 -
1.4
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 improvement
Over the life of the lease
Fixtures and fittings
25% on cost
Equipment
25% on cost
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
.
1.5
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.
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.
1.6
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.
INTERIM PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 13 -
1.7
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 balance sheet 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 and cash and bank balances, 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.
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.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
INTERIM PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 14 -
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
paymen
ts 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. A
m
ounts 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.8
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.
1.9
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 profit and loss account 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.
INTERIM PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 15 -
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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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 lease
s
asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.13
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.
INTERIM PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 16 -
1.14
Classification of financial instruments issued by the group
In accordance with FRS 102.22, financial instruments issued by the group are treated as equity only to the extent that they meet the following two conditions:
-
where the instrument will or may be settled in the entity's own equity instruments, it is either a non-derivative that includes no obligation to deliver a variable number of the entity's own equity instruments or is a derivative that will be settled by the entity exchanging a fixed amount of cash or other financial assets for a fixed number of its own equity instruments.
To the extent that this definition is not met, the proceeds of issue are classified as a financial liability. Where the instrument so classified takes the legal form of the entity's own shares, the amounts presented in these financial statements for called up share capital and share premium account exclude amounts in relation to those shares.
2
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.
3
Turnover and other revenue
2019
2018
£
£
Other significant revenue
Interest income
15
153
4
Operating profit
2019
2018
Operating profit for the year is stated after charging:
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
21,753
1,028
Fees payable to the company's auditor for the audit of the company's financial statements
7,700
7,500
Depreciation of owned tangible fixed assets
140,168
107,424
(Profit)/loss on disposal of tangible fixed assets
-
45,160
Operating lease charges
502,997
458,924
INTERIM PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 17 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
45
43
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
3,128,074
2,919,712
Social security costs
363,756
326,037
Pension costs
68,133
71,343
3,559,963
3,317,092
6
Directors' remuneration
2019
2018
£
£
Remuneration for qualifying services
12,959
13,493
Company pension contributions to defined contribution schemes
750
12,750
13,709
26,243
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2018 - 2).
7
Interest receivable and similar income
2019
2018
£
£
Interest income
Interest on bank deposits
2
153
Other interest income
13
-
Total income
15
153
8
Interest payable and similar expenses
2019
2018
£
£
Interest on bank overdrafts and loans
37,645
61,978
INTERIM PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 18 -
9
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
71,071
88,270
Adjustments in respect of prior periods
-
164
Total current tax
71,071
88,434
Deferred tax
Origination and reversal of timing differences
29,600
27,292
Total tax charge
100,671
115,726
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Profit before taxation
451,058
479,681
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
85,701
91,139
Tax effect of expenses that are not deductible in determining taxable profit
7,155
15,986
Adjustments in respect of prior years
-
164
Other non-reversing timing differences
11,127
10,422
Tax rate changes on opening and closing deferred tax balances
(3,473)
(1,985)
Taxation charge for the year
100,510
115,726
Taxation charge in the financial statements
100,671
115,726
Reconciliation - the current year tax charge does not reconcile to the above analysis. Please review figures in the database.
(161)
-
10
Dividends
2019
2018
£
£
Interim paid
419,500
109,881
INTERIM PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 19 -
11
Tangible fixed assets
Leasehold improvement
Fixtures and fittings
Equipment
Total
£
£
£
£
Cost
At 1 January 2019
554,593
161,217
232,243
948,053
Additions
134,487
34,668
204,044
373,199
At 31 December 2019
689,080
195,885
436,287
1,321,252
Depreciation and impairment
At 1 January 2019
66,298
13,934
68,431
148,663
Depreciation charged in the year
58,035
27,927
54,206
140,168
At 31 December 2019
124,333
41,861
122,637
288,831
Carrying amount
At 31 December 2019
564,747
154,024
313,650
1,032,421
At 31 December 2018
488,295
147,283
163,812
799,390
12
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
2,774,229
2,870,675
Amounts owed by group undertakings
3,060,693
1,963,092
Other debtors
692,040
703,735
6,526,962
5,537,502
13
Creditors: amounts falling due within one year
2019
2018
Notes
£
£
Bank loans and overdrafts
14
789,981
580,841
Trade creditors
1,423,812
2,016,896
Amounts owed to group undertakings
1,772,390
-
Corporation tax
71,058
88,270
Other taxation and social security
363,042
612,260
Other creditors
1,656,815
1,402,518
6,077,098
4,700,785
INTERIM PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 20 -
14
Loans and overdrafts
2019
2018
£
£
Bank overdrafts
789,981
580,841
Payable within one year
789,981
580,841
Bank overdrafts are secured by fixed charges over property or undertakings of the company.
15
Provisions for liabilities
2019
2018
Notes
£
£
Deferred tax liabilities
16
65,100
35,500
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2019
2018
Balances:
£
£
Fixed asset timing differences
65,100
35,500
2019
Movements in the year:
£
Liability at 1 January 2019
35,500
Charge to profit or loss
29,600
Liability at 31 December 2019
65,100
17
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
68,133
71,343
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.
INTERIM PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 21 -
18
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
900 Ordinary shares of £1 each
900
900
100 Ordinary class A shares of £1 each
100
100
1,000
1,000
The Ordinary shares and the Ordinary A shares rank parri passu in all respects other than the right to receive dividends from the company. The holders of the Ordinary shares are entitled to dividends in priority to the holders of the Ordinary A shares.
19
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:
2019
2018
£
£
Within one year
692,410
157,268
Between two and five years
2,660,785
2,711,025
In over five years
2,461,650
3,103,819
5,814,845
5,972,112
20
Events after the reporting date
As part of their assessment of the going concern basis of preparation, the Directors have considered the
impact of the COVID-19 pandemic on the
Company
’s trade, workforce, supply chain and the wider economies
in which it operates (See Note 1.2). It is the view of the Directors that the events which have significantly
impacted the
Company
are the direct result of Government and international policy in response to the
pandemic (for example restrictions on travel, trade and personal interactions) and such policy only arose
after the balance sheet date. The Directors therefore consider the impact of the COVID-19 on the business
to be a non-adjusting post-balance sheet event.
21
Related party transactions
The company has taken advantage of the exemptions in FRS 102 and not disclosed transactions with entities that are 100% subsidiaries of New Street Consulting Group Limited (formerly New Street (Group) Limited).
INTERIM PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 22 -
22
Ultimate controlling party
New Street Consulting Group Limited (formerly: New Street (Group) Limited) is the ultimate parent company, incorporated in the UK and is controlled by, the director, DJ Baird.
The company has taken advantage of the exemptions in FRS 102 and not disclosed transactions with entities that are 100% subsidiaries of New Street Consulting Group Limited.
2019-12-31
2019-01-01
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