Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Annual Report and Financial Statements
For the period ended 30 June 2023
Company registration number 10821054 (England and Wales)
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Company Information
Directors
D Robertson
D Evans
(Appointed 18 May 2023)
J Musgrave
(Appointed 18 May 2023)
J Hilton
(Appointed 18 May 2023)
Secretary
Hays Nominees Limited
Company number
10821054
Registered office
4th Floor
20 Triton Street
London
NW1 3BF
Auditor
Gilberts Chartered Accountants
Pendragon House
65 London Road
St Albans
Herts
AL1 1LJ
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Contents
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Statement of financial position
7
Statement of changes in equity
8
Notes to the financial statements
9 - 19
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Directors' Report
For the period ended 30 June 2023
Page 1
The directors present their annual report and financial statements for the period ended 30 June 2023.
Principal activities
The principal activity of the company is the provision of consultancy and training.
Results and dividends
The results for the period are set out on page 6.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
M Lobb
(Resigned 18 May 2023)
D Robertson
D Evans
(Appointed 18 May 2023)
J Musgrave
(Appointed 18 May 2023)
J Hilton
(Appointed 18 May 2023)
Auditor
Gilberts Chartered Accountants were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement 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.
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Directors' Report (Continued)
For the period ended 30 June 2023
Page 2
Small companies note
In preparing this report, the directors have taken advantage of the small companies' exemptions provided by section s414B of the Companies Act 2006.
On behalf of the board
D Robertson
Director
27 March 2024
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Independent Auditor's Report
To the Members of Fairer Consulting Limited
Page 3
Opinion
We have audited the financial statements of Fairer Consulting Limited (the 'company') for the period ended 30 June 2023 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 FRS 101 'Reduced Disclosure Framework' (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 30 June 2023 and of its loss for the period 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Independent Auditor's Report (Continued)
To the Members of Fairer Consulting Limited
Page 4
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 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 take advantage of the small companies exemption 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.
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.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
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. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed in our approach below:
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Independent Auditor's Report (Continued)
To the Members of Fairer Consulting Limited
Page 5
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council and UK taxation legislation.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. There are inherent limitations in the audit procedures noted above, 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.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance, miscellaneous receipts and payments testing, journal entry testing, analytical procedures and obtaining additional corroborative evidence as required. In doing so we evaluate whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
We recognise that 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.
We communicated relevant key laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud and non-compliance with laws and regulations throughout the audit.
We did not identify any key audit matters relating to irregularities, including fraud.
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.
Luke Parker (Senior Statutory Auditor)
for and on behalf of Gilberts Chartered Accountants
27 March 2024
Chartered Accountants
Statutory Auditor
Pendragon House
65 London Road
St Albans
Herts
AL1 1LJ
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Statement of Comprehensive Income
For the period ended 30 June 2023
Page 6
Unaudited
Period
Year
ended
ended
30 June
30 September
2023
2022
Notes
£
£
Turnover
477,637
879,165
Administrative expenses
(717,952)
(878,995)
Operating (loss)/profit
(240,315)
170
Interest receivable and similar income
6
10
68
Interest payable and similar expenses
7
(1,662)
(2,731)
Loss before taxation
(241,967)
(2,493)
Tax on loss
8
787
(787)
Loss and total comprehensive income for the financial period
(241,180)
(3,280)
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Statement of Financial Position
As at 30 June 2023
Page 7
Unaudited
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible fixed assets
10
1,735
1,783
Current assets
Debtors
11
146,105
174,134
Cash at bank and in hand
29,149
55,566
175,254
229,700
Creditors: amounts falling due within one year
12
(184,355)
(125,693)
Net current (liabilities)/assets
(9,101)
104,007
Total assets less current liabilities
(7,366)
105,790
Creditors: amounts falling due after more than one year
12
(20,000)
(27,500)
Net (liabilities)/assets
(27,366)
78,290
Capital and reserves
Called up share capital
16
75
75
Capital redemption reserve
17
25
25
Profit and loss reserves
(27,466)
78,190
Total equity
(27,366)
78,290
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 27 March 2024 and are signed on its behalf by:
D Robertson
Director
Company Registration No. 10821054
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Statement of Changes in Equity
For the period ended 30 June 2023
Page 8
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2021
100
-
363,255
363,355
Period ended 30 September 2022:
Loss and total comprehensive income for the period
-
-
(3,280)
(3,280)
Dividends
9
-
-
(231,785)
(231,785)
Redemption of shares
16
(25)
25
(50,000)
(50,000)
Balance at 30 September 2022
75
25
78,190
78,290
Period ended 30 June 2023:
Loss and total comprehensive income for the period
-
-
(241,180)
(241,180)
Transactions with owners in their capacity as owners:
Contribution from parent company
-
-
135,524
135,524
Balance at 30 June 2023
75
25
(27,466)
(27,366)
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Notes to the Financial Statements
For the period ended 30 June 2023
Page 9
1
Accounting policies
Company information
Fairer Consulting Limited is a private company limited by shares incorporated in England and Wales. The registered office is 4th Floor, 20 Triton Street, London, NW1 3BF.
1.1
Reporting period
The financial statements are for a period shorter than one year, due to the shortening of the accounting period from 30 September to 30 June. Therefore, the amounts presented in the financial statements are not entirely comparable.
1.2
Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.
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.
The company meets the definition of a qualifying entity under FRS 101 Reduced Disclosure Framework. These financial statements for the period ended 30 June 2023 are the first financial statements of Fairer Consulting Limited prepared in accordance with FRS 101. The company transitioned from FRS 102 to FRS 101 for all periods presented and the date of transition to FRS 101 was 1 October 2021. There have been no transition adjustments required.
As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS1:
inclusion of an explicit and unreserved statement of compliance with IFRS;
presentation of a statement of cash flows and related notes;
disclosure of the objectives, policies and processes for managing capital;
disclosure of key management personnel compensation;
disclosure of details in respect of share based payments;
disclosure of the categories of financial instrument and the nature and extent of risks arising on these financial instruments;
the effect of financial instruments on the statement of comprehensive income;
disclosure of the future impact of new International Financial Reporting Standards in issue but not yet effective at the reporting date; and
related party disclosures for transactions with the parent or wholly owned members of the group.
Where required, equivalent disclosures are given in the group accounts of Hays International Holdings Limited. The group accounts of Hays International Holdings Limited are available to the public and can be obtained as set out in note 19.
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Notes to the Financial Statements (Continued)
For the period ended 30 June 2023
1
Accounting policies
(Continued)
Page 10
1.3
Going concern
The company has net liabilities of £27,366 and is dependent on the continued support from the parent entity. The directors have at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for at least twelve months from the date of approval of the financial statements, and along with the parent entity, will continue to financially support the company if required. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. true
1.4
Turnover
Turnover is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a service to a customer.
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.
The company applies the IFRS 15 principles for revenue recognition from contracts with customers:
Identify the contract(s) with the customer
Identify the separate performance obligations in the contract
Determine the transaction price
Allocate the transaction price to separate performance obligations; and
Recognise revenue when each performance obligation is satisfied.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
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:
Computer equipment
25% straight line
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 recognised in the profit and loss account.
1.6
Impairment of tangible assets
At each reporting 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.
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Notes to the Financial Statements (Continued)
For the period ended 30 June 2023
1
Accounting policies
(Continued)
Page 11
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.
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 at bank and in hand
Cash and cash equivalents 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 assets
The company only has basic financial instruments measured at amortised cost, with no financial instruments classified as other or basic instruments measured at fair value.
Financial assets at fair value through profit or loss
When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognised initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Notes to the Financial Statements (Continued)
For the period ended 30 June 2023
1
Accounting policies
(Continued)
Page 12
Financial assets at fair value through other comprehensive income
Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.
The company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognised initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognised as finance income in profit or loss.
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.9
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Notes to the Financial Statements (Continued)
For the period ended 30 June 2023
1
Accounting policies
(Continued)
Page 13
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
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.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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.
1.12
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 inventories 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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Notes to the Financial Statements (Continued)
For the period ended 30 June 2023
Page 14
2
Critical accounting estimates and judgements
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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Critical judgements
Revenue recognition and stage of completion
Revenue is recognised over the period to which the service relates and the contract is fulfilled, with reference to the agreed services to be provided to the customer. Where the services are partially complete at the year end, the stage of completion is calculated with reference to the agreed days per the scope of the engagement.
3
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
15,000
-
4
Employees
The average monthly number of persons (including director) employed by the company during the year were :
2023
2022
Number
Number
4
4
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Notes to the Financial Statements (Continued)
For the period ended 30 June 2023
4
Employees
(Continued)
Page 15
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
461,607
397,796
Social security costs
41,446
52,074
Pension costs
2,070
6,819
505,123
456,689
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
181,667
240,000
Long-term employee benefit expense – service cost
135,524
-
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2022 - 0).
During the year, 65% of the ordinary shares of the Company were acquired by Hays International Holdings Limited from the existing Directors. On the same date, the remaining Director entered into an option agreement with Hays International Holdings Limited giving the former the option to sell and the latter the option to purchase the remaining 35% ordinary shares held by the remaining Director, subject to the Company meeting certain conditions on the third or fourth years following the date of acquisition. Under the accounting requirements, the Company is required to accrue for the potential consideration that would become payable by its parent company Hays International Holding Limited, if the option crystallises such that Hays International Limited acquires the 35% shares from the Director. The amount is accounted for as an accrued expense over the period of the option settled by a capital contribution from Hays International Limited, the purchaser of the shares. During the year this amount representing the accrual for the potential consideration payable for the acquisition of the shares was £135,524.
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
10
68
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Notes to the Financial Statements (Continued)
For the period ended 30 June 2023
Page 16
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
959
1,074
Interest on other loans
703
1,657
1,662
2,731
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
787
Adjustments in respect of prior periods
(787)
-
Total UK current tax
(787)
787
The charge for the period can be reconciled to the loss per the profit and loss account as follows:
2023
2022
£
£
Loss before taxation
(241,967)
(2,493)
Expected tax credit based on a corporation tax rate of 19.00% (2022: 19.00%)
(45,974)
(474)
Effect of expenses not deductible in determining taxable profit
33,660
1,261
Impact of losses not recognised
12,314
Impact of losses carried back
(787)
-
Taxation (credit)/charge for the period
(787)
787
The company has tax losses carried forward of £63,897 (2022: £nil) to use in future years. The deferred tax asset measured at 25% has not been recognised.
9
Dividends
2023
2022
2023
2022
Amounts recognised as distributions:
per share
per share
Total
Total
£
£
£
£
Ordinary Share
Final dividend paid
-
307.00
-
231,785
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Notes to the Financial Statements (Continued)
For the period ended 30 June 2023
Page 17
10
Tangible fixed assets
Computer equipment
£
Cost
At 1 October 2022
5,181
Additions
841
At 30 June 2023
6,022
Accumulated depreciation and impairment
At 1 October 2022
3,398
Charge for the period
889
At 30 June 2023
4,287
Carrying amount
At 30 June 2023
1,735
At 30 September 2022
1,783
11
Debtors
2023
2022
£
£
Trade debtors
102,375
142,357
Other debtors
-
9,780
Prepayments and accrued income
43,730
21,997
146,105
174,134
12
Creditors
Due within one year
Due after one year
2023
2022
2023
2022
Notes
£
£
£
£
Loans and overdrafts
13
10,000
10,000
20,000
27,500
Trade and other creditors
14
109,686
20,326
Corporation tax
6,758
54,200
-
-
Other taxation and social security
53,352
41,167
-
-
Deferred income
15
4,559
184,355
125,693
20,000
27,500
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Notes to the Financial Statements (Continued)
For the period ended 30 June 2023
Page 18
13
Loans and overdrafts
Due within one year
Due after one year
2023
2022
2023
2022
£
£
£
£
Borrowings held at amortised cost:
Bank loans
10,000
10,000
20,000
27,500
14
Trade and other creditors
2023
2022
£
£
Trade creditors
47,910
561
Accruals
5,946
19,755
Other creditors
55,830
10
109,686
20,326
15
Deferred revenue
2023
2022
£
£
Deferred income
4,559
-
16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Share of 10p each
755
755
75
75
The holders of the Ordinary shares have full voting, dividend and capital distribution rights (including on winding up) and do not confer any rights of redemption.
17
Capital redemption reserve
2023
2022
£
£
At the beginning of the period
25
Transfers
25
At the end of the period
25
25
Fairer Consulting Limited
(previously known as Vercida Consulting.Com Limited)
Notes to the Financial Statements (Continued)
For the period ended 30 June 2023
Page 19
18
Related party transactions
During the period the company was charged a management fee of £93,201 (2022: £88,550) from a company under common directorship.
At the period end the company owed £nil (2022: £2,707) to the directors.
Dividends totaling £nil (2022: £231,785) were paid to the directors during the year.
In the previous year, the company purchased 245 Ordinary shares of £0.10 each from a director for a total sum of £50,000.
At the period end, included in other creditors is a loan amount of £50,319 (2022: £nil) due to the parent company. The loan has no set repayment date and interest of £319 (2022: £nil) was charged in the year.
19
Controlling party
There is no ultimate controlling party.
The parent company is Hays International Holdings Limited, which is a 100% subsidiary of Hays PLC. The registered office of both companies is 4th Floor 20 Triton Street, London, NW1 3BF.
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