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REGISTERED NUMBER: 10867179 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

FOR

FORETWO GROUP LIMITED

FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179)

CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 30 June 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Profit and Loss Account 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Financial Statements 14


FORETWO GROUP LIMITED

COMPANY INFORMATION
for the Year Ended 30 June 2024







DIRECTORS: Mr R Easton
Mr J Blakemore
Mr D Mitchell





REGISTERED OFFICE: Suite 3
St James Business Centre
Wilderspool Causeway
Warrington
Cheshire
WA4 6PS





REGISTERED NUMBER: 10867179 (England and Wales)





AUDITORS: Xeinadin Audit Limited
100 Barbirolli Square
Manchester
M2 3BD

FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179)

STRATEGIC REPORT
for the Year Ended 30 June 2024


The Company has continued its principal activities of outsourced employment, payroll and accountancy services to the temporary labour and contractor market.

REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS
Turnover has increased from £118.76m to £142.88m. This is due to a larger base of contractors using the Company's services. The Company has increased head count in the Sales team and incrementally in all other areas of the business to ensure excellent delivery. Building on the Company's commitment to deliver the highest service levels possible and strict adherence to compliant solutions, alongside its FCSA Accreditation and on-line reviews, the Company engaged a third-party customer review platform and an AI driven real-time payslip auditing service to further enhance the Company's growing reputation in the market, resulting in more new clients and agency Preferred Supplier Lists.

RESULTS & KEY PERFORMANCE INDICATORS
2024 2023
£   's £   's

Turnover 142,880 118,756
Gross Profit 1,532 1,470
Gross Margin % 1.07% 1.24%
Underlying operating profit before interest and taxation 239 529
Equity-Shareholders Funds 155 79

OUR PEOPLE
ForeTwo Group believes its people are a real asset to the company. We value the involvement of all employees.

The Company's strategy to growing performance over the short, medium and long term is through employee engagement to enhance the growing leadership capabilities to develop employee performance across all areas.

The Company is committed to Equal Opportunities, training and development and providing a positive and inclusive environment. All new employees receive a warm welcome and a thorough induction where the Company's values and vision are shared.

Through a mix of formal and informal meetings and appraisals, the Company consults with its employees on matters that may effect them, our clients and other key stakeholders, thus fostering a culture where employees opinions are welcomed and valued.


FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179)

STRATEGIC REPORT
for the Year Ended 30 June 2024

REVIEW OF BUSINESS RISKS
The directors have assessed the principal risks to the business and in their assessment these risks are legislative changes in the temporary labour market and changes in tax legislation. The Company ensures it monitors any proposed and impending updates and is agile in its response to make good all changes that may be required.

The company takes a proactive, moral and ethical approach to how its treats its clients and contractors to ensure there is no material exposure to reputational or financial risk associated with how some companies in the market operate.

The company, as a member of the sectors most highly respected trade association, is tested and held to account annually on adherence to a strict code of conduct for both UK tax legislation and UK employment law.

The directors believe that with a proactive approach to tackling changes in legislation, these risks and uncertainties can present opportunities in the market to further grow the business.

Financial Risks
The company's operation exposes it to a limited number of risks, primarily credit and liquidity risk.

Credit Risk
Appropriate credit checks are undertaken on all potential new customers and strict credit control procedures tried and tested remain in place, a credit insurance policy remains in place which further reduces exposure.

Liquidity Risk
The business is built on strong cash flow. The company regularly reviews turnover, margin and overheads which all impact on cash flow.

Non-Financial Risks
These are monitored on a regular basis by the board. The main are outlined below:

- Compliance - Annual FCSA assessments check for adherence to UK employment law and the FCSA's codes of conduct.

- Cyber - In place is a market-leading Cyber Crime Insurance policy, plus regular cyber risk assessments provided by an
independent IT consultancy which extends to the Company's suppliers.

- Operational - Monthly Senior Management Team meetings include a review of current systems and procedures to
identify any current or potential future issues.

The directors have taken appropriate steps and put in place the relevant measures to mitigate the associated risks.

DISABLED EMPLOYEES
Disabled persons are employed and trained whenever aptitude and abilities allow, and suitable vacancies are available. Where an employee becomes disabled, an attempt is made to arrange appropriate retraining or transfer to other areas.


FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179)

STRATEGIC REPORT
for the Year Ended 30 June 2024

SECTION 172(1) STATEMENT
As directors of ForeTwo Group Limited we act in a way that we consider to be in good faith, would be most likely to promote the success of the company and for the benefit of its members as a whole. The directors do so by way of the following:

Our Board and Management team ensures that all decisions are taken for the long term, and collectively and individually aims to always uphold the highest standard of conduct. Similarly it acknowledges that the business will only grow and prosper over the long term if it understands and respects the views and needs of the company's stakeholders, customers, employees and suppliers to whom we are accountable, as well as the environment we operate within.The company decision making and plans etc are made from the work of the senior management team and regular monthly meetings are held internally.

Decisions for the long-term:
The Board in its obligation to discharge its Section 172 responsibilities, when making long-term decisions, primary consideration is given to the impact of such decisions on its key-stakeholders. As a binding principle, if the impact of a decision could have a detrimental or negative impact on its members, employees or other key-stakeholders, the matter in question would be summarily disregarded and receive no further consideration.

For our Employees:
The building blocks of any business is its employees, and the Board consider our employees to be our biggest asset. The Company provides a collegiate environment, competitive pay and additional employee benefits which include workplace health and wellbeing initiatives, and the opportunity to progress. Training and development is extended to formal paid for professional qualifications and training courses.

Customers:
Our customers and their experience is placed at the heart of the Company's ethos and operations. Our business model has been built around the principle that we should strive to deliver an exceptional experience. This is a central pillar that runs through every facet of the Company and not just the domain of the Customer Success team that is deployed in the business. The success of this is highlighted in the Company's Trustpilot score and reviews.

Key Suppliers:
The Company was founded on the basis of using best in class suppliers of infrastructure-critical systems. The likes of which have been methodically selected and are seen more as partners whom the Company works with collaboratively. The aim is for continuous improvement regarding the ultimate goal of ensuring we deliver the very best customer experience.

Our Environment:
Being considerate of the company's effect on the environment and local communities we serve, our Environmental Policy serves to reduce the carbon footprint the company leaves. It means the business does not have a significant detrimental impact on the environment. The Company provides career opportunities to the local community, and works with local charities in the areas the Company operates.

The Business & Future Developments
Growth and long-term strategy is focused around continuing to utilise the skills and knowledge of specialisms within the markets the Company already has an intrinsic knowledge of. Building synergistic operations to provide wider solutions and services to the global flexible workforce and SMEs is fundamental to the continuing growth of the business.

ON BEHALF OF THE BOARD:





Mr J Blakemore - Director


15 November 2024

FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179)

REPORT OF THE DIRECTORS
for the Year Ended 30 June 2024


The directors present their report with the financial statements of the company for the year ended 30 June 2024.

DIVIDENDS
During the year, interim dividends were paid on the 1,000 ordinary shares held, at £175 per share.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report.

Mr R Easton
Mr J Blakemore
Mr D Mitchell

FINANCIAL INSTRUMENTS
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include trade and other debtors, gross amounts owed by contract customers 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 financial transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

Basic financial liabilities
Basic financial liabilities, which include trade and other creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transition, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

QUALIFYING THIRD PARTY INDEMNITY PROVISIONS
The Company has agreed to indemnify its directors against third party claims which may be brought against them and has put in place a directors and officers insurance policy.

STREAMLINED ENERGY AND CARBON REPORTING
Greenhouse gas emissions, energy consumption and energy efficiency have not been disclosed due to the consumption during the year being less than 40,000 kWh.

DISCLOSURE IN THE STRATEGIC REPORT
The company has chosen, in accordance with Section 414C(ii) of the Companies Act 2006, and as noted in this director's report, to include certain matters in its Strategic Report that would otherwise be required to be disclosed in this director's report, specifically in respect of the principal activity, review of the business, proposed future developments and key risks to the business.


FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179)

REPORT OF THE DIRECTORS
for the Year Ended 30 June 2024

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
- 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
In accordance with section 485 of the Companies Act 2006, Xeinadin Audit Limited will be proposed for reappointment.

ON BEHALF OF THE BOARD:





Mr J Blakemore - Director


15 November 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FORETWO GROUP LIMITED


Opinion
We have audited the financial statements of Foretwo Group Limited (the 'company') for the year ended 30 June 2024 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30 June 2024 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
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.

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, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FORETWO GROUP LIMITED


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

Auditors' 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following:

- The nature of the industry and sector, control environment and business performance including the company's remuneration policies, key drivers for directors remuneration, bonus levels and performance targets;
- Results of the enquiries of management about their own identification and assessment of the risks of irregularities;
- Any matters we have identified having obtained and reviewed the company's documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential risk being in the following areas: timing of recognition of income, the matching of revenue and expenditure and ensuring cut off is correctly applied. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FORETWO GROUP LIMITED


We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, environmental laws, employment law, health and safety, pensions legislation and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Audit response to risks identified
Our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

Use of 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 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.




Richard Lloyd (Senior Statutory Auditor)
for and on behalf of Xeinadin Audit Limited
100 Barbirolli Square
Manchester
M2 3BD

15 November 2024

FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179)

PROFIT AND LOSS ACCOUNT
for the Year Ended 30 June 2024

2024 2023
Notes £    £   

TURNOVER 142,879,869 118,756,053

Cost of sales 141,347,669 117,286,445
GROSS PROFIT 1,532,200 1,469,608

Administrative expenses 1,485,675 1,112,828
46,525 356,780

Other operating income 192,165 172,007
OPERATING PROFIT 4 238,690 528,787

Interest receivable and similar income 85,113 28,577
PROFIT BEFORE TAXATION 323,803 557,364

Tax on profit 6 72,970 119,895
PROFIT FOR THE FINANCIAL YEAR 250,833 437,469

FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179)

BALANCE SHEET
30 June 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 - 1,264
Tangible assets 9 18,408 16,293
Investments 10 639,677 -
658,085 17,557

CURRENT ASSETS
Debtors 11 4,280,109 2,269,500
Cash at bank 5,697,365 7,265,017
9,977,474 9,534,517
CREDITORS
Amounts falling due within one year 12 10,475,792 9,468,353
NET CURRENT (LIABILITIES)/ASSETS (498,318 ) 66,164
TOTAL ASSETS LESS CURRENT LIABILITIES 159,767 83,721

PROVISIONS FOR LIABILITIES 14 4,602 4,389
NET ASSETS 155,165 79,332

CAPITAL AND RESERVES
Called up share capital 15 101,000 101,000
Retained earnings 16 54,165 (21,668 )
SHAREHOLDERS' FUNDS 155,165 79,332

The financial statements were approved by the Board of Directors and authorised for issue on 15 November 2024 and were signed on its behalf by:





Mr J Blakemore - Director


FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179)

STATEMENT OF CHANGES IN EQUITY
for the Year Ended 30 June 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 July 2022 101,000 (459,137 ) (358,137 )
Profit for the year - 437,469 437,469
Total comprehensive income - 437,469 437,469
Balance at 30 June 2023 101,000 (21,668 ) 79,332
Profit for the year - 250,833 250,833
Total comprehensive income - 250,833 250,833
Dividends - (175,000 ) (175,000 )
Balance at 30 June 2024 101,000 54,165 155,165

FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179)

CASH FLOW STATEMENT
for the Year Ended 30 June 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 20 (974,527 ) 1,239,803
Tax paid (28,218 ) -
Net cash from operating activities (1,002,745 ) 1,239,803

Cash flows from investing activities
Purchase of tangible fixed assets (10,906 ) (4,630 )
Purchase of fixed asset investments (610,000 ) -
Interest received 81,499 28,577
Net cash from investing activities (539,407 ) 23,947

Cash flows from financing activities
Amount withdrawn by directors (8,000 ) (211,894 )
Equity dividends paid (17,500 ) -
Net cash from financing activities (25,500 ) (211,894 )

(Decrease)/increase in cash and cash equivalents (1,567,652 ) 1,051,856
Cash and cash equivalents at beginning of
year

21

7,265,017

6,213,161

Cash and cash equivalents at end of year 21 5,697,365 7,265,017

FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179)

NOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 30 June 2024


1. STATUTORY INFORMATION

Foretwo Group Limited is a private company limited by share capital, incorporated in England and Wales, registration number 10867179. The address of the registered office and principal place of business is Suite 3 St James Business Centre, Wilderspool Causeway, Warrington, Cheshire, WA4 6PS.

These financial statements are presented in sterling, which is also the Company's functional currency, and are rounded to the nearest pound.

The company's principal activites and nature of it's operations are disclosed in the Strategic Report.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
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. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover
Turnover represents the fair value of consideration received or receivable from the provision of temporary contractors. Fair value reflects the amount agreed in the form of contractual charges for each type of service. Fee income is stated net of amounts collected on behalf of third parties such as sales taxes, goods and services taxes and value added taxes.

Turnover is recognised to the extent that the company obtains the right to consideration in exchange for its performance. Right to consideration is based on the company confirming completion of its contractual obligations in relation to the services provided.

Services provided to clients during the year which at the year-end have not been invoiced to clients are recognised as fee income and accrued within the balance sheet. Amounts which have been invoiced as at the year-end but where the service has not been delivered at that time are included within deferred income within the balance sheet.

The contractor will complete an assignment for an agency who will then pay Foretwo Group the agreed contract rate (after deducting their fee). Foretwo Group will then recognise the gross revenue in respect of this assignment and the cost of the contractor. Once the contractor submits their timesheet, Foretwo Group will transfer the remuneration due to the contractor to them after deducting the fee (margin).

This means that there are two elements of revenue recognised; the gross revenue received from the agency which is recognised when the money is received from the agency (which is net nil as it is equal to the cost of the contractors), and the margin recognised when processing timesheets.

Intangible assets
Intangible assets are represented by development expenditure on IT Software which is capitalised where there is a clearly defined project, related expenditure is separately identifiable and it has been assessed for technical and commercial viability. Intangible assets are initially measured at cost.

Amortisation is calculated to write off the cost of the intangible assets over their useful life as follows:

Software development costs -50% straight line

The carrying amounts of the company's intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. If any such indication exists, the asset's recoverable amount is estimated and an impairment provision made.

FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 30 June 2024


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation on tangible fixed assets is charged to the profit and loss so as to write off their value, over their estimated useful lives, using the following methods:

Computer equipment25% straight line
Office equipment25% straight line

Tangible fixed assets are depreciated from the date they are utilised in generating income.

At each balance sheet date, the Company reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that any items of tangible fixed assets have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to estimate the recoverable amount of the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Investments
Investments are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment. Investments compromise of a portfolio of listed shares.

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include trade and other debtors, gross amounts owed by contract customers 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 financial transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, 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.

FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 30 June 2024


2. ACCOUNTING POLICIES - continued

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.

The obligations for contributions to defined contribution scheme are recognised as an expense as incurred. The assets of the scheme are held separately from those of the Company in an independent administered fund.

Trade and other debtors
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the trade debtors and other debtors are stated at cost less impairment losses for bad and doubtful debts.

Trade and other creditors
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand.

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

Assets that are held by the Company under leases which transfer to the Company substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the company are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statements of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability, finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's policy on borrowing costs . Contingent rentals are recognised as expenses in the periods in which they are incurred.

Operating lease payments are recognised as an expense on straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.

3. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 124,037,654 101,916,262
Social security costs 12,692,747 11,363,605
Other pension costs 3,324,382 2,756,481
140,054,783 116,036,348

The average number of employees during the year was as follows:
2024 2023

Management 2 1
Sales 7 6
Support 12 10
Umbrella contractors 1,711 1,412
1,732 1,429

FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 30 June 2024


3. EMPLOYEES AND DIRECTORS - continued

2024 2023
£    £   
Directors' remuneration 106,632 95,632
Directors' excess retirement benefits 1,477 1,321

The directors have reviewed and believe that there are no key management personnel other than the directors in the business.

4. OPERATING PROFIT

The operating profit is stated after charging:

2024 2023
£    £   
Depreciation - owned assets 8,791 8,275
Development costs amortisation 1,264 2,496

5. AUDITORS' REMUNERATION
2024 2023
£    £   
Fees payable to the company's auditors and their associates for the audit of the
company's financial statements

12,250

9,500

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 72,757 28,218

Deferred tax 213 91,677
Tax on profit 72,970 119,895

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 323,803 557,364
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023
- 20.202%)

80,951

112,599

Effects of:
Expenses not deductible for tax purposes (9,227 ) (9,616 )
Changes in tax rate - 17,091
Superdeduction on assets - (179 )

Chargeable gain 1,246 -
Total tax charge 72,970 119,895

FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 30 June 2024


7. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1.00 each
Interim 175,000 -

8. INTANGIBLE FIXED ASSETS
Development
costs
£   
COST
At 1 July 2023
and 30 June 2024 4,993
AMORTISATION
At 1 July 2023 3,729
Amortisation for year 1,264
At 30 June 2024 4,993
NET BOOK VALUE
At 30 June 2024 -
At 30 June 2023 1,264

9. TANGIBLE FIXED ASSETS
Office Computer
equipment equipment Totals
£    £    £   
COST
At 1 July 2023 9,132 27,770 36,902
Additions 3,025 7,881 10,906
At 30 June 2024 12,157 35,651 47,808
DEPRECIATION
At 1 July 2023 3,666 16,943 20,609
Charge for year 2,918 5,873 8,791
At 30 June 2024 6,584 22,816 29,400
NET BOOK VALUE
At 30 June 2024 5,573 12,835 18,408
At 30 June 2023 5,466 10,827 16,293

10. FIXED ASSET INVESTMENTS
Listed
investments
£   
COST OR VALUATION
Additions 610,000
Revaluations 29,677
At 30 June 2024 639,677
NET BOOK VALUE
At 30 June 2024 639,677

FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 30 June 2024


10. FIXED ASSET INVESTMENTS - continued

Cost or valuation at 30 June 2024 is represented by:

Listed
investments
£   
Valuation in 2024 29,677
Cost 610,000
639,677

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 4,055,211 1,926,101
Other debtors 40,924 32,566
Directors' current accounts 75,898 221,784
Prepayments and accrued income 108,076 89,049
4,280,109 2,269,500

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 12,292 97,445
Corporation tax 72,757 28,218
Social security and other taxes 3,674,755 3,136,992
VAT 5,195,136 4,651,086
Other creditors 1,416,811 1,524,292
Accrued expenses 104,041 30,320
10,475,792 9,468,353

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 1,251 14,901
Between one and five years - 1,251
1,251 16,152

During the year the amount charged to the profit and loss for operating lease commitments was £14,901 (2023: £13,584).

14. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax
Accelerated Capital Allowances 4,602 4,389

FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 30 June 2024


14. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 July 2023 4,389
Accelerated capital allowances 213
Balance at 30 June 2024 4,602

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
1,000 Ordinary £1.00 1,000 1,000
100,000 Class A Redeemable Preference £1.00 100,000 100,000
101,000 101,000

Ordinary shares held have full rights regarding voting, payment of dividends and distributions.

Class A Redeemable Preference shares have the rights to: receive notice of and attend at general meetings of the company but no right to vote; a right to a return of capital on liquidation in priority to holders of ordinary shares; a right of redemption at the option of the company; and, a right to receive a dividend and to be considered separately by the directors of the company in deciding whether a dividend should be paid.

16. RESERVES
Retained
earnings
£   

At 1 July 2023 (21,668 )
Profit for the year 250,833
Dividends (175,000 )
At 30 June 2024 54,165

17. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

As at the balance sheet date the company was owed £75,898 (2023: £221,784) by the directors. Directors loans are repayable on demand and subject to interest at the official rate of interest..

18. RELATED PARTY DISCLOSURES

During the year, the company paid consultancy fees to directors amounting to £54,562 (2023: £Nil). At the balance sheet date, included in creditors is a balance of £43,112 (2023: £Nil) owed to the directors in relation to consultancy fees payable.

19. ULTIMATE CONTROLLING PARTY

The company is owned by a number of private shareholders all of whom own more than 25% but not more than 50% of the voting rights in the company. As such, there is no individual ultimate controlling party.

FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 30 June 2024


20. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2024 2023
£    £   
Profit before taxation 323,803 557,364
Depreciation charges 10,055 10,771
Gain on revaluation of investments (29,677 ) -
Finance income (85,113 ) (28,577 )
219,068 539,558
Increase in trade and other debtors (2,156,495 ) (213,607 )
Increase in trade and other creditors 962,900 913,852
Cash generated from operations (974,527 ) 1,239,803

21. 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 June 2024
30.6.24 1.7.23
£    £   
Cash and cash equivalents 5,697,365 7,265,017
Year ended 30 June 2023
30.6.23 1.7.22
£    £   
Cash and cash equivalents 7,265,017 6,213,161


22. ANALYSIS OF CHANGES IN NET FUNDS

At 1.7.23 Cash flow At 30.6.24
£    £    £   
Net cash
Cash at bank 7,265,017 (1,567,652 ) 5,697,365
7,265,017 (1,567,652 ) 5,697,365
Total 7,265,017 (1,567,652 ) 5,697,365