REGISTERED NUMBER: 02638307 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2017

FOR

ABACUS EMPLOYMENT SERVICES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

Mr J L Fuller

Mr C Addis

Mrs B A Fuller

Mr D G Fuller

SECRETARY:

Mrs B A Fuller

REGISTERED OFFICE:

East Portway Industrial Estate,

Caxton Close

Andover

Hampshire

SP10 3FG

REGISTERED NUMBER:

02638307 (England and Wales)

SENIOR STATUTORY AUDITOR:

Neil Raynsford

AUDITORS:

Langdowns DFK Limited

Statutory Auditor

Fleming Court

Leigh Road

Eastleigh

Southampton

Hampshire

SO50 9PD

The directors present their strategic report for the year ended 30 September 2017.

REVIEW OF BUSINESS

The Board are pleased to report that the business had a year of growth where sales were concerned with a slightly

improved margin - however to sustain this we had to add additional headcount which increased running costs.

There has been a shift in the market and we have recruited staff to focus purely on resourcing to assist the Offices in

this area - with every increasing legislation, our existing staff were finding it difficult to services their Clients effectively

and complete Business Development duties in the hours available.

We have continued the policy that any proposed rates below minimum standard margin are to be agreed by a Director

or Member of the Senior Management Team.

We continue to source best price without detriment to service from Suppliers, however the integration of a new CRM

didn't go as smoothly as we had hoped and meant we were having to pay for two services for a time.

In light of the pressure on margins and costs we have again asked for considerable focus on New Business. This has

become a key performance indicator with the business and is monitored and reported on a monthly basis with emphasis

still on each Branch increasing its Client Base.

One positive is that we have successfully tendered for a continuation of the Harrods contract which has been awarded to

us for two years - in light of this we have been able to recruit a team specifically to look after this contract which has

freed up two of our more senior members of staff to become more active within other areas of the business.

Harrods are anticipating fairly serious growth through their Dot.Com area which is based from the Thatcham site and the

two year contract that we have been awarded.

Unfortunately our Slough Office experienced a tough year with their largest account becoming a 'Managed Service'

Client and resulting in a massive reduction in margin - fortunately this was counteracted by excellent performance from

our Newbury Office who replaced them as the highest fee producing Office.

There were a number of one off costs incurred in light of having to relocate our Andover Office with regards to

Communications / IT / Repairs & Renewals / Professional fees etc.

One of our Senior Managers has returned from Maternity and taken on a role as HR Manager - included within her remit

is dealing with Internal Audits and ensuring GDPR Compliance with new and the many changes in legislation, this is

deemed a critical role for us going forward.

PRINCIPAL RISKS AND UNCERTAINTIES

Staff turnover was probably the highest it has been since we started trading - this is down to the amount of legislation

involved nowadays and the job becoming increasingly difficult. Recruitment of the correct staff to replace those who

have left is paramount, with Senior Management still very involved in all recruitment activities.

We will start trading from a new site in Hemel Hempstead as of 2018 - whilst this will initially operate at a loss, the costs

are low and we are confident that we have the right person in place for it soon to start trading profitably.

Additional legislation is coming in and Seminars will be attended and staff training given - the biggest change is the

GDPR Compliance which is live as of 25th May 2018.

We are also required to report figures for Gender Pay Gap purposes - deadline being 4th April 2018. Due to the nature

of our business we anticipate this being an incredibly time consuming task.

Much like last year, we still do not know how the uncertainty surrounding 'Brexit' will affect business or how we source

staff. Along with the majority of other businesses, it is something that we will continue to keep close to and action

changes as appropriate.

ON BEHALF OF THE BOARD:

Mr J L Fuller - Director

3 May 2018

The directors present their report with the financial statements of the company for the year ended 30 September 2017.

DIVIDENDS

Interim dividends per share were paid as follows:

£8.00

- 23 October 2016

£8.00

- 23 November 2016

£8.00

- 23 December 2016

£8.00

- 23 January 2017

£8.00

- 23 February 2017

£8.00

- 23 March 2017

£55.00

- 23 April 2017

£8.00

- 23 May 2017

£8.00

- 23 June 2017

£8.00

- 23 July 2017

£8.00

- 23 August 2017

£159.00

- 23 September 2017

£294.00

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 30 September 2017 will be £ 294,000 .

FUTURE DEVELOPMENTS

The directors will continue their policy of growing organically within the current branch network.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2016 to the date of this report.

Mr J L Fuller

Mr C Addis

Mrs B A Fuller

Mr D G Fuller

FINANCIAL INSTRUMENTS

In order to manage the day to day financial needs of the company the directors have an invoice financing facility with

Barclays Bank. The company always works within this facility and the major risk is if the underlying debtors that the

facility is secured against do not pay then Barclays Bank have recourse to the company. To manage this risk the

company has strict credit rules in place in respect of new clients and constant monitoring of existing clients.

For asset purchases the company uses a combination of Hire Purchase and Term Loans.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements

in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors

have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the

company and of the profit or loss of the company for that period. In preparing these financial statements, the directors

are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for

safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to

have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that

the company's auditors are aware of that information.

AUDITORS

The auditors, Langdowns DFK Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr J L Fuller - Director

3 May 2018

Opinion

We have audited the financial statements of Abacus Employment Services Limited (the 'company') for the year ended

30 September 2017 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of

Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements,

including a summary of significant accounting policies. The financial reporting framework that has been applied in their

preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102

'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted

Accounting Practice).

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 a Report of the Auditors 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.

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 September 2017 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' responsibilities for the audit of the

financial statements section of our report. We are independent of the company in accordance with the ethical

requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard,

and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit

evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic

Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors

thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of

assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or our knowledge

obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or

apparent material misstatements, we are required to determine whether there is a material misstatement in the financial

statements or a material misstatement of the other information. If, based on the work we have performed, we conclude

that there is a material misstatement of this other information, we are required to report that fact. We have nothing to

report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have 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 Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you

if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

Our 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 a Report of the Auditors that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with

ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Neil Raynsford (Senior Statutory Auditor)

for and on behalf of Langdowns DFK Limited

Statutory Auditor

Fleming Court

Leigh Road

Eastleigh

Southampton

Hampshire

SO50 9PD

6 June 2018

TURNOVER

16,183,965

14,757,076

Cost of sales

13,004,547

11,864,217

GROSS PROFIT

3,179,418

2,892,859

Administrative expenses

2,648,110

2,463,512

OPERATING PROFIT

5

531,308

429,347

Interest receivable and similar income

-

59

531,308

429,406

Amounts written off investments

6

-

76,117

531,308

353,289

Interest payable and similar expenses

7

48,463

48,815

PROFIT BEFORE TAXATION

482,845

304,474

Tax on profit

8

113,575

89,535

PROFIT FOR THE FINANCIAL YEAR

369,270

214,939

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

354,268

346,376

Investments

12

85,000

85,000

439,268

431,376

CURRENT ASSETS

Debtors

13

2,627,184

2,559,059

Cash at bank and in hand

58,613

41,491

2,685,797

2,600,550

CREDITORS

Amounts falling due within one year

14

2,607,260

2,575,835

NET CURRENT ASSETS

78,537

24,715

TOTAL ASSETS LESS CURRENT LIABILITIES

517,805

456,091

CREDITORS

Amounts falling due after more than one year

15

124,768

138,324

NET ASSETS

393,037

317,767

CAPITAL AND RESERVES

Called up share capital

20

1,000

1,000

Retained earnings

21

392,037

316,767

SHAREHOLDERS' FUNDS

393,037

317,767

The financial statements were approved by the Board of Directors on 3 May 2018 and were signed on its behalf by:

Mr J L Fuller - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2015

1,000

381,628

382,628

Changes in equity

Dividends

-

(279,800

)

(279,800

)

Total comprehensive income

-

214,939

214,939

Balance at 30 September 2016

1,000

316,767

317,767

Changes in equity

Dividends

-

(294,000

)

(294,000

)

Total comprehensive income

-

369,270

369,270

Balance at 30 September 2017

1,000

392,037

393,037

Cash flows from operating activities

Cash generated from operations

1

504,746

767,790

Interest paid

(48,463

)

(48,815

)

Tax paid

(90,096

)

(192,779

)

Net cash from operating activities

366,187

526,196

Cash flows from investing activities

Purchase of tangible fixed assets

(46,008

)

(9,954

)

Sale of tangible fixed assets

3,700

15,200

Interest received

-

59

Net cash from investing activities

(42,308

)

5,305

Cash flows from financing activities

Loan repayments in year

(12,556

)

(11,846

)

Amount withdrawn by directors

(201

)

(364

)

Equity dividends paid

(294,000

)

(279,800

)

Net cash from financing activities

(306,757

)

(292,010

)

Increase in cash and cash equivalents

17,122

239,491

Cash and cash equivalents at beginning of year

2

41,491

(198,000

)

Cash and cash equivalents at end of year

2

58,613

41,491

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2017

2016

£

£

Profit before taxation

482,845

304,474

Depreciation charges

31,744

30,659

Loss on disposal of fixed assets

2,673

80

Impairment of unlisted investment

-

76,117

Finance costs

48,463

48,815

Finance income

-

(59

)

565,725

460,086

Increase in trade and other debtors

(74,692

)

(23,180

)

Increase in trade and other creditors

13,713

330,884

Cash generated from operations

504,746

767,790

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of

these Balance Sheet amounts:

Year ended 30 September 2017

30.9.17

1.10.16

£

£

Cash and cash equivalents

58,613

41,491

Year ended 30 September 2016

30.9.16

1.10.15

£

£

Cash and cash equivalents

41,491

3,857

Bank overdrafts

-

(201,857

)

41,491

(198,000

)

1.	STATUTORY INFORMATION

Abacus Employment Services Limited is a private company, limited by shares , registered in England and

Wales. The company's registered number and registered office address can be found on the Company

Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention, as modified by the

revaluation of certain assets.

Turnover

Turnover represents the total services invoiced during the year on a weekly basis, net of Value Added Tax. It is

recognised when the company obtains the right to receive consideration for the services provided.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2010, is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

2% straight line

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% straight line and 20% on reducing balance

All fixed assets are initially recorded at cost.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws

that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal

of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling

at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual

arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any

contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at

transaction price. Any losses arising from impairment are recognised in the profit and loss account in other

administrative expenses.

4.	EMPLOYEES AND DIRECTORS

2017

2016

£

£

Wages and salaries

13,859,333

12,745,772

Social security costs

764,172

681,127

Other pension costs

15,621

14,867

14,639,126

13,441,766

The average number of employees during the year was as follows:

2017

2016

Productive

857

793

Administrative

35

35

892

828

2017

2016

£

£

Directors' remuneration

370,251

398,628

Directors' pension contributions to money purchase schemes

-

8,100

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

-

2

Information regarding the highest paid director is as follows:

2017

2016

£

£

Emoluments etc

150,250

152,247

Pension contributions to money purchase schemes

-

3,600

The directors are considered to be the key management personnel of the company.

5.	OPERATING PROFIT

The operating profit is stated after charging:

2017

2016

£

£

Other operating leases

68,505

75,988

Depreciation - owned assets

31,744

30,659

Loss on disposal of fixed assets

2,673

80

Audit fee

8,990

7,460

6.

AMOUNTS WRITTEN OFF INVESTMENTS

2017

2016

£

£

Amounts written off

investments

-

76,117

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2017

2016

£

£

Bank interest

1,094

211

Invoice Discounting Interest

42,490

42,866

Loan

4,879

5,738

48,463

48,815

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2017

2016

£

£

Current tax:

UK corporation tax

107,008

90,096

Deferred tax

6,567

(561

)

Tax on profit

113,575

89,535

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is

explained below:

2017

2016

£

£

Profit before tax

482,845

304,474

Profit multiplied by the standard rate of corporation tax in the UK of 19.499% (2016 - 20%)

94,150

60,895

Effects of:

Expenses not deductible for tax purposes

17,852

12,140

Capital allowances in excess of depreciation

(4,994

)

-

Depreciation in excess of capital allowances

-

1,838

Deferred tax movement

6,567

(561

)

Amounts written off investments

-

15,223

Total tax charge

113,575

89,535