The directors present the strategic report for the year ended 31 December 2022.
New Street Consulting Group is a leading people advisory firm that helps clients find, assess, build, and accelerate teams and leaders, through a number of service lines which can be accessed individually or as an integrated service.
Through its trading subsidiaries the group provides a number of Talent Acquisition and Talent Consulting services to its customers.
Within the Talent Acquisition sector, the group offers the following services:
Interim Management – the group 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.
Executive Search – Our executive search team helps companies find the very best talent to build strong, diverse leadership teams and boards to power their businesses.
Agile Talent Solutions – the group offers a complete agile strategic planning service which allows clients to cost-effectively fill critical roles at speed, and specialise in project based agile resourcing for both permanent and contingent workforce solutions, underpinned by human capital research and insight.
Within the Talent Consulting sector, the group offers the following services:
Leadership development, coaching and assessment - The group assists organisations to recruit, promote, develop and retain talent through implementing effective and efficient leadership development programmes.
Talent Intelligence - By utilizing a data-led approach, the group provides insights and expertise to inform client’s talent strategy to align with their business goals and provide a competitive edge.
NSCG Diagnostics and the Congruity brand, offers a range of online psychometric tests and personality questionnaires to enable organisations to attract, recruit, select, develop and retain staff.
During 2022 the group’s focus varied across the different service lines. In the Talent Acquisition sector the focus was to enhance its service levels within its interim management offering, to best position itself to take advantage of growth following the easing of Covid-19 restrictions. Interim management revenue across the group grew by 24% from 2021 to 2022, whilst the business was ranked number one service provider in the Institute of Interim Management annual survey published in 2023, having been second in 2022 and third in 2021. The key focus within Executive Search was to grow the offering via the recruitment of additional search consultants, which would enable the group to target a wider range of client sectors and industries, as a result revenue increased 61% on the prior year.
The focus within the Talent Consulting sector was to continue to build and enhance the group’s offering through internal staff recruitment, and cross-selling services to existing clients within the Talent Acquisition sector. This led to revenue growth within consulting of 45% on the prior year. The drive to increase consulting staff to drive increased sales and gross profit, coupled with the lack of government backed Covid-19 relief in 2022, resulted in an increase in administrative expenses in 2022 as compared to the prior year. As a result of this, EBITDA declined in 2022.
It is not possible to predict wider macro-economic factors, including the potential for an economic recession due to high rates of inflation and increasing interest rates. However the expectation is that as a result of the internal hiring plan in 2022 and an in-depth review and streamlining of costs during the Covid-19 pandemic, this should result in further increases in both revenue and EBITDA during the 2023 financial year.
People
The group has an experienced and high-performing team.
Investment in our people was a continued key focus for the year, with efforts on recruiting and retaining talent, succession planning, reward and recognition, work-life balance and corporate & social responsibility all contributing to New Street Consulting Group being ranked in the Sunday Times Best Medium Companies to Work for in the UK in 2023. The group was also ranked first in the 2023 Annual Institute of Interim Management Survey of Best Providers, with NSCG employees also taking 2nd and 3rd place in the Best Individual Consultant survey by the same Institute.
In the process of applying the group's accounting policies, management considers that the following factors are the key risks of the business.
Bad debt
Some of the group's clients require interim expertise in a turnaround or distressed situation, giving rise to the potential for bad debts. The group mitigates this through credit checks and tighter payment term arrangements, including upfront and on account payments.
Currency risk
The group provides services to clients based globally, and as such invoices certain clients in US dollars and Euros. The currency risk to the group is mitigated in part due to the inclusion of short client payment terms in contractual agreements, and also by ensuring that interim candidates placed overseas are paid by the group in the same currency as the group is paid by the end client.
Interest Rate risk
The company has a variable-interest bearing loan, with a value of £625,000 as at the 31st December 2022. This loan was issued as part of the government backed CBILS loan scheme and as such was interest and repayment free for the first 12 months of drawdown. This term ended in May 2022, and the loan has been subject to variable interest rates from that date.
Dependence on key personnel
The future success of the group 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.
Competition
The directors believe the group is well position in its chosen markets. Whilst the group will seek to continue to improve its competitive position, the actions of current or indeed potential competitors may adversely affect the group's business.
Strength of key markets
The market for interim managers placements is reasonable, and appears to be in-line with the market in 2022, which in turn was an improvement on the Covid-19 impacted years of 2020 and 2021. It is however difficult to predict how this market will move in the foreseeable future. This is also true in the Talent Consulting and Executive Search sectors, and underpins the strategy to invest more heavily in these sectors in order to gain market share, and to diversify the group’s service offering. Although the group continues to trade successfully, a further downturn in the wider economy, could have a material adverse effect on the business.
Key performance indicators
Turnover is the standard accounting revenue measure and indicates the trading performance.
Gross profit is the Company's measure of net income from client assignments, and is the profit on an assignment after incurring the costs of the interim candidates placed with clients.
EBITDA is a measure of operating profit, adjusted for depreciation, amortisation and exchange rate gains/losses.
Year-on-year revenue increase of 25% is driven by an increase in sales to clients across Interim Management, Executive Search and Consultancy. Specifically the group has invested in the hiring of additional consultants within the Executive Search and Consulting divisions, which has translated to higher sales as those individuals begin to generate sales following their appointment.
Gross profit has increased by 31% year on year, with gross profit margin % increasing from 28% to 30%, as a result of the increase in Consulting and Executive Search revenue which is also a higher margin than for interim contractors. EBITDA decreased by £163,807 year on year due to the increase in administrative expenses as a result of the upfront costs associated with hiring new consultants to drive sales, and the non-recurrence in 2022 of government-backed Covid-19 relief.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2022.
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £1,095,249. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
We have audited the financial statements of New Street (Holdco) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The 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.
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' report 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.
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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.
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 parent 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.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was capable of detecting irregularities, including fraud
The objectives of our audit, in respect of fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
Our approach was as follows:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006), and relevant tax compliance regulations in the UK;
We considered the nature of the industry, the control environment and business performance, including key drivers for management's remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from material fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect all non-compliance with laws and regulations.
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.
Our 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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,095,249 (2021 - £126,663 profit).
New Street (Holdco) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is One Angel Court, 15th Floor, London, United Kingdom, EC2R 7HJ.
The group consists of New Street (Holdco) Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company New Street (Holdco) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
As part of a group reconstruction on 31 May 2020, New Street Consulting Group Limited was acquired on a share-for-share basis and accounted for as a merger. The registered office of the subsidiary acquired is One Angel Court, 15th Floor, London, EC2R 7HJ.
The merger reserve arising under the merger method of accounting was £985,451.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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.
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 it is probable will be recovered.
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.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
Investments in listed company shares are remeasured to market value at each Balance Sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
All borrowing costs are recognised in profit or loss in the period in which they are incurred.
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, 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.
Equity instruments issued by the group 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 group.
The tax expense represents the sum of the tax currently payable and deferred 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 if, and only if, there is 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.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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 leased 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.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
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.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the consolidated statement of profit or loss within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
On consolidation, the results of overseas operations are translated into sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate of ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
In the application of the group’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.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The Company recognises revenue to the extent that it is probable that economic benefits will flow to the company. Service delivery in relation to arrangements with some customers can span the year end and management considers the extent to which the service has been delivered and the right to revenue has been earned in prudently recognising associated revenue in the financial statements.
The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the credit rating of the debtors, the ageing profile of debtors and historical experience. The carrying value of trade debtors and the associated provision is set out in note 16.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
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:
The Directors consider each acquisition for the purpose of determining the amortisation period of any goodwill that arises. The goodwill arising from the acquisition of Brightpool Limited in 2014 was amortised over a period of 5 years and the negative goodwill arising from the acquisition of Mercer Richardson & Partners Limited will be amortised over a period of 5 years.
Details of the company's subsidiaries at 31 December 2022 are as follows:
(*) denotes a subsidiary which is held indirectly. All other subsidiaries are held directly.
During 2022, the group acquired the remaining 49% of shares not already held in NSCG Diagnostics Limited (formerly Tests Direct Limited). NSCG Diagnostics Limited had not previously been consolidated on the grounds of materiality. Following the acquisition of the remaining shares in NSCG Diagnostics Limited, the Directors have elected to consolidate the results, assets and liabilities of NSCG Diagnostics Limited in the group accounts. Accordingly, the investment in NSCG Diagnostics Limited previously recorded in investments is now eliminated on consolidation. No prior year adjustment has been recorded on the grounds of materiality.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Other reserves represent a merger reserve arising due to group reconstruction in 2020.
The Group has provided a cross guarantee to secure borrowings of other related parties. As at 31 December 2022, the net borrowings secured by the cross guarantee amounted to £2,551,380 (2021 - £1,036,011).
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year ended 31 December 2022, other key management personnel received total employment benefits of £608,010 (2021 - £362,429). Total employment benefits includes salaries amounting to £584,610 (2021 - £353,219), and Company contributions to defined contribution pension schemes amounting to £23,400 (2021 - £9,300).
New Street (Holdco) Limited is the ultimate parent company, incorporated in the UK and is controlled by the director D J Baird.
The financial statements of New Street (Holdco) Limited are available from One Angel Court, 15th Floor, London, EC2R 7HJ.
An adjustment to the profit and loss account reserve of £580,938 has been recorded to reflect a refund received from a third party. Whilst the monies were received in 2022, awareness of the conditions giving rise to the entitlement to the refund existed in 2020. In line with this, the refund receivable has been recorded as a prior period correction. Consequently, Other Debtors has increased from £418,136, as originally reported, to £999,074 in the restated balance sheet as at 31 December 2021.