Company Registration No. 05790004 (England and Wales)
HCL Permanent Limited
Financial statements
for the year ended 30 June 2022
Pages for filing with the registrar
HCL Permanent Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
HCL Permanent Limited
Statement of financial position
As at 30 June 2022
Page 1
2022
2021
Notes
£
£
£
£
Current assets
Trade and other receivables
4
755,355
5,522,660
Current liabilities
5
(361,514)
(5,472,885)
Net current assets
393,841
49,775
Deferred income
(76,391)
(58,167)
Net assets/(liabilities)
317,450
(8,392)
Equity
Called up share capital
1
1
Other reserves
(221,743)
(221,742)
Retained earnings
6
539,192
213,349
Total equity
317,450
(8,392)
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
These financial statements have been prepared and delivered 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 31 March 2023 and are signed on its behalf by:
Ian Munro
Director
Company Registration No. 05790004 (England and Wales)
HCL Permanent Limited
Notes to the financial statements
For the year ended 30 June 2022
Page 2
1
Accounting policies
Company information
HCL Permanent 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
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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
.
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.
HCL Permanent Limited
Notes to the financial statements (continued)
For the year ended 30 June 2022
1
Accounting policies (continued)
Page 3
1.2
Going concern
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.
true
1.3
Revenue
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 arising from permanent placements is recognised when the individual commences their employment.
1.4
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.
1.5
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 trade and other receivables, 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.
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.
HCL Permanent Limited
Notes to the financial statements (continued)
For the year ended 30 June 2022
1
Accounting policies (continued)
Page 4
Basic financial liabilities
Basic financial liabilities, including
trade and other payables
, 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 payables
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 payables
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.6
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.7
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.
HCL Permanent Limited
Notes to the financial statements (continued)
For the year ended 30 June 2022
1
Accounting policies (continued)
Page 5
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.
1.8
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
non-current 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.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
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.
1.11
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.
HCL Permanent Limited
Notes to the financial statements (continued)
For the year ended 30 June 2022
Page 6
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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Administrative and management
6
8
4
Trade and other receivables
2022
2021
Amounts falling due within one year:
£
£
Trade receivables
501,867
224,095
Amounts owed by group undertakings
5,101,691
Other receivables
130,947
96,984
Prepayments and accrued income
122,541
99,890
755,355
5,522,660
HCL Permanent Limited
Notes to the financial statements (continued)
For the year ended 30 June 2022
Page 7
5
Current liabilities
2022
2021
£
£
Bank loans and overdrafts
6
Trade payables
16,587
9,824
Amounts owed to group undertakings
76,932
5,236,333
Corporation tax
65,783
Other taxation and social security
115,165
140,770
Other payables
87,047
85,952
361,514
5,472,885
The bank loans and overdrafts, which represent 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).
6
Retained earnings
Retained earnings represents accumulated profits less dividends paid, as adjusted for subsequent transfers to or from other reserves.
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
Senior Statutory Auditor:
Simon Kite BSc FCA
Statutory Auditors:
Saffery Champness LLP
8
Other reserves
The tax equalisation reserve represents the corporation tax that was group relieved at a gross value through the intercompany account and the net tax charge to surrender
.
HCL Permanent Limited
Notes to the financial statements (continued)
For the year ended 30 June 2022
Page 8
9
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.
10
Related party transactions
The following amounts were outstanding at the reporting end date:
2022
2021
Amounts due to related parties
£
£
Group undertakings
76,932
5,236,333
The following amounts were outstanding at the reporting end date:
2022
2021
Amounts due from related parties
£
£
Group undertakings
-
5,101,691
11
Parent company
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.