Company Registration No. 08004376 (England and Wales)
ForrestBrown Limited
Annual report and financial statements
for the year ended 31 December 2024
ForrestBrown Limited
Company information
Directors
Simon Brown
Shane Frank
Dhaval Jadav
Company number
08004376
Registered office
Floor 2
10 Templeback
Bristol
BS1 6FL
Independent auditor
Saffery LLP
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
ForrestBrown Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
ForrestBrown Limited
Strategic report
For the year ended 31 December 2024
1

The directors present the strategic report for the year ended 31 December 2024.

Review of the business

2024 was a transitional year for the company and the wider R&D tax relief market. Overall revenues decreased compared to the prior year as a result of the reduction in generosity in R&D tax relief and specifically the SME rate of relief.

The company was proactive in facing these pressures head on and invested in new systems to adapt to new, more time-intensive filing requirements for R&D claims. These financial results provide a solid foundation on which to build in 2025, and despite external challenges the company continued to grow its average fee due to an increasingly diversified client base and specialist capability.

Having established its reputation as a constructive voice in the debate over the future of R&D tax relief, the company was pleased to see long-running enquiries centred on contracted out R&D and subsidised expenditure resolved in favour of the taxpayer. These wins further endorsed the company’s position on this issue following its original First Tier Tribunal (Tax) win on behalf of a client in 2021.

The company continued to diversify its offering and other developments included notable successes in supporting clients with applications to the Life Sciences Innovative Manufacturing Fund, helping to build the UK’s capability and resilience in this vital area of the economy.

Principal risks and uncertainties

The company is constantly evaluating the principal risks and uncertainties that could impact its operating and financial performance. The key risks for the business continue to centre around regulation, competition and economic uncertainty.

From a regulation perspective, significant change to the incentive itself, and an increase in HMRC’s compliance focus, resulted in increasing demand for consulting advice. The company’s consulting team doubled its revenues in 2024 and was shortlisted in the client solutions category of the Professional Services Management Excellence Awards.

The company continued to strengthen relationships with accountancy practices, including a growing number of established Top 50 firms seeking specialist support to complement their in-house teams and help clients navigate complexity and change in R&D tax relief.

While major structural changes to R&D tax relief are unlikely in the 25th year since its introduction in the UK, a raft of changes continue to work their way through the system. Clients and accountants are expected to continue to require support from the company’s consulting team as these changes begin to take effect for R&D claims in 2025.

Despite operating in continued economic uncertainty and a highly competitive market, the company is strongly positioned in 2025 as a result of the steps taken during this period.

Key performance indicators

The key performance indicators used by the Board to monitor progress include turnover, EBITDA and headcount.

Turnover was down 20% in 2024 to £13,260,128 (2023: £16,659,688). As a result, EBITDA also trended downwards. This was as a direct result of the external market changes mentioned above, primarily the reduction in the generosity of the SME R&D scheme and HMRC’s increased compliance focus.

Average headcount decreased to 114 employees (2023:127) in response to the external market. However, targeted recruitment into the business development and client facing teams continued to be a key priority during 2024.

 

ForrestBrown Limited
Strategic report (continued)
For the year ended 31 December 2024
2

On behalf of the board

Simon Brown
Director
23 June 2025
ForrestBrown Limited
Directors' report
For the year ended 31 December 2024
3

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company continued to be that of filing research and development claims.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend (2023: £nil).

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Simon Brown
Shane Frank
Dhaval Jadav
Michael Yirilli
(Resigned 28 May 2025)
Financial instruments
Liquidity risk

The company has significant cash resources to meet its financial obligations.

Interest risk

The company does not have any outstanding loan balances at the period end and so is not exposed to interest rate risk.

Foreign currency risk

The company makes its sales and purchases in sterling and so is not exposed to foreign currency risk.

Credit risk

Credit risk is considered low for the company as credit terms are not provided to the majority of customers.

ForrestBrown Limited
Directors' report (continued)
For the year ended 31 December 2024
4
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

 

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Simon Brown
Director
23 June 2025
ForrestBrown Limited
Independent auditor's report
To the members of ForrestBrown Limited
5
Opinion

We have audited the financial statements of ForrestBrown Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the 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 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:

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 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.

ForrestBrown Limited
Independent auditor's report (continued)
To the members of ForrestBrown Limited
6

Opinions on other matters prescribed by the Companies Act 2006

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

 

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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

ForrestBrown Limited
Independent auditor's report (continued)
To the members of ForrestBrown Limited
7

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

 

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

 

 

 

 

 

 

 

 

ForrestBrown Limited
Independent auditor's report (continued)
To the members of ForrestBrown Limited
8

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 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.

Neil Davies
Senior Statutory Auditor
For and on behalf of Saffery LLP
23 June 2025
Accountants
Statutory Auditors
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
ForrestBrown Limited
Statement of comprehensive income
For the year ended 31 December 2024
9
2024
2023
Notes
£
£
Turnover
3
13,260,128
16,659,688
Cost of sales
(8,732,898)
(10,327,844)
Gross profit
4,527,230
6,331,844
Administrative expenses
(4,582,593)
(4,753,490)
Operating (loss)/profit
4
(55,363)
1,578,354
Interest receivable and similar income
7
201,258
124,054
Profit before taxation
145,895
1,702,408
Tax on profit
8
(43,657)
(429,804)
Profit for the financial year
102,238
1,272,604

The income statement has been prepared on the basis that all operations are continuing operations.

ForrestBrown Limited
Statement of financial position
As at 31 December 2024
10
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
9
86,577
100,047
Current assets
Debtors
10
14,092,282
14,679,542
Cash at bank and in hand
4,798,587
4,386,998
18,890,869
19,066,540
Creditors: amounts falling due within one year
11
(1,858,381)
(2,446,127)
Net current assets
17,032,488
16,620,413
Total assets less current liabilities
17,119,065
16,720,460
Provisions for liabilities
Provisions
12
1,244,775
990,425
(1,244,775)
(990,425)
Net assets
15,874,290
15,730,035
Capital and reserves
Called up share capital
16
124
124
Share premium account
2,327
2,327
Profit and loss reserves
15,871,839
15,727,584
Total equity
15,874,290
15,730,035
The financial statements were approved by the board of directors and authorised for issue on 23 June 2025 and are signed on its behalf by:
Simon Brown
Director
Company Registration No. 08004376
ForrestBrown Limited
Statement of changes in equity
For the year ended 31 December 2024
11
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 December 2023:
Balance at 1 January 2023
124
2,327
14,286,912
14,289,363
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
1,272,604
1,272,604
Credit to equity for equity settled share-based payments
15
-
-
168,068
168,068
Balance at 31 December 2023
124
2,327
15,727,584
15,730,035
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
-
102,238
102,238
Credit to equity for equity settled share-based payments
15
-
-
42,017
42,017
Balance at 31 December 2024
124
2,327
15,871,839
15,874,290
ForrestBrown Limited
Statement of cash flows
For the year ended 31 December 2024
12
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
20
480,642
(126,324)
Income taxes paid
(178,809)
(526,747)
Net cash inflow/(outflow) from operating activities
301,833
(653,071)
Investing activities
Purchase of tangible fixed assets
(92,136)
(73,001)
Proceeds from disposal of tangible fixed assets
634
375
Interest received
201,258
124,054
Net cash generated from investing activities
109,756
51,428
Net increase/(decrease) in cash and cash equivalents
411,589
(601,643)
Cash and cash equivalents at beginning of year
4,386,998
4,988,641
Cash and cash equivalents at end of year
4,798,587
4,386,998
ForrestBrown Limited
Notes to the financial statements
For the year ended 31 December 2024
13
1
Accounting policies
Company information

ForrestBrown Limited is a private company limited by shares incorporated in England and Wales. The registered office is Floor 2, 10 Templeback, Bristol, BS1 6FL.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that thetrue company 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.

 

The Company is in a strong position to support UK businesses with their R&D tax advice. The Company's client base is diversified and robust with a large proportion of revenue coming from strong existing client relationships. The Company has no debt or financing arrangements in place and is funded solely through its trading activity and has healthy cash balances. All of this puts the Company in a strong position to support the going concern basis of accounting.

1.3
Turnover

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.

Turnover from contracts for the provision of professional services represents the majority of the income. This turnover is recognised when claims have been submitted to the tax authorities as the outcome of an assignment is probable once a claim is submitted. Where ForrestBrown has completed the engagement but is not responsible for submitting the claim, turnover is recognised on submission or four weeks after completion of our engagement, whichever is earliest. On some of the larger engagements, the policy allows for staged revenue recognition based on the progress of the claims to date.

 

A provision is made to cover claims that may be subject to enquiry and subsequently adjusted. This provision is based on an analysis of retrospective data.

ForrestBrown Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
14
1.4
Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

 

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

 

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
Straight line over the remaining life of the lease
Fixtures and fittings
Straight line over 3 years
Computers
Straight line over 2 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

 

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 credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
Financial instruments

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

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

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

ForrestBrown Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
15
Basic financial assets

Basic financial assets, which include debtors, 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.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

ForrestBrown Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
16
1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or 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.

ForrestBrown Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
17
1.12
Retirement benefits

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

 

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Any unpaid contributions are shown in accruals as a liability in the Statement of Financial Position. Assets of the plan are held separately from the Company in independently administered funds.

1.13
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

When share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. When the Company participates in a share based payment arrangement in which the share options are in its parent Company, the Company accounts for the expense with the corresponding credit being taken to retained earnings and treated as a capital contribution.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15

Interest income

Interest income is recognised in profit or loss using the effective interest method.

1.16

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

ForrestBrown Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
18
2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Enquiry provision

The Company recognises revenue at the point at which it can be reliably estimated and is considered probable. This is deemed to be upon claim submission. The tax authorities can however open an enquiry into any claim for a period after submission and this enquiry may lead to the claim being restated downwards leading to a reduction in the Company's share of revenue.

 

Management exercise judgement in estimating the provision required for claims that do go to enquiry and that are subsequently restated downwards as a result. Management base their assessment on an analysis of historical enquiry data which shows that the impact on revenue recognised has not been significant in the past and is not expected to be for claims submitted to the year end date.

 

Management continually review trends in respect of claims that go to enquiry and revise the provision accordingly.

Work-in-progress

No provision is made for the additional work required for dealing with the enquiries. In addition, no work-in-progress is provided for unsubmitted claims at varying stages of completion at the year end date as the impact of these is not considered to be material.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Provision of professional services
13,260,128
16,659,688
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
13,260,128
16,659,688
2024
2023
£
£
Other revenue
Interest income
201,258
124,054
ForrestBrown Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
19
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
26,000
29,500
Depreciation of owned tangible fixed assets
105,475
247,345
Profit on disposal of tangible fixed assets
(503)
(375)
Share-based payments
42,017
168,068
Operating lease charges
803,478
712,272
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Average number
114
127

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
7,277,656
8,477,067
Social security costs
815,215
993,098
Pension costs
251,403
274,857
8,344,274
9,745,022
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
12,000
76,976
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
189,305
121,621
Other interest income
11,953
2,433
Total income
201,258
124,054
ForrestBrown Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
7
Interest receivable and similar income (continued)
20
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
189,305
121,621
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
51,600
474,597
Adjustments in respect of prior periods
-
0
(10,796)
Total current tax
51,600
463,801
Deferred tax
Origination and reversal of timing differences
(7,943)
(33,997)
Total tax charge
43,657
429,804

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:

2024
2023
£
£
Profit before taxation
145,895
1,702,408
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
36,474
400,406
Tax effect of expenses that are not deductible in determining taxable profit
12,183
47,566
Tax effect of income not taxable in determining taxable profit
-
0
(5,141)
Adjustments in respect of prior years
-
0
(14,225)
Effect of change in corporation tax rate
-
0
(2,012)
Fixed asset differences
-
0
(219)
Effect of change in deferred tax rates
-
0
3,429
Adjustments in respect of brought forward values
(5,000)
-
0
Taxation charge for the year
43,657
429,804
ForrestBrown Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
21
9
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2024
1,009,730
164,358
402,782
1,576,870
Additions
-
0
480
91,656
92,136
Disposals
-
0
-
0
(5,460)
(5,460)
At 31 December 2024
1,009,730
164,838
488,978
1,663,546
Depreciation and impairment
At 1 January 2024
994,830
155,929
326,064
1,476,823
Depreciation charged in the year
5,475
3,457
96,543
105,475
Eliminated in respect of disposals
-
0
-
0
(5,329)
(5,329)
At 31 December 2024
1,000,305
159,386
417,278
1,576,969
Carrying amount
At 31 December 2024
9,425
5,452
71,700
86,577
At 31 December 2023
14,900
8,429
76,718
100,047
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
5,181,035
4,965,843
Amounts owed by group undertakings
7,394,056
7,017,643
Other debtors
70,024
86,644
Prepayments and accrued income
1,305,576
2,475,764
13,950,691
14,545,894
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 13)
141,591
133,648
Total debtors
14,092,282
14,679,542
ForrestBrown Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
22
11
Creditors: amounts falling due within one year
2024
2023
As restated
£
£
Trade creditors
192,016
281,095
Amounts owed to group undertakings
13,383
-
0
Corporation tax
1,600
128,809
Other taxation and social security
729,446
808,194
Other creditors
5,948
65,552
Accruals and deferred income
915,988
1,162,477
1,858,381
2,446,127
12
Provisions for liabilities
2024
2023
As restated
£
£
Dilapidations provision
265,349
285,348
Enquiry provision
824,541
705,077
Other provisions
154,885
-
1,244,775
990,425
Movements on provisions:
Dilapidations provision
Enquiry provision
Other provisions
Total
£
£
£
£
At 1 January 2024 as restated
285,349
705,076
-
990,425
Additional provisions in the year
-
119,465
154,885
274,350
Utilisation of provision
(20,000)
-
-
(20,000)
At 31 December 2024
265,349
824,541
154,885
1,244,775

The dilapidations provision represents management's best estimate of the costs required to restore leased properties to their original condition at the end of the lease term in accordance with lease obligations.

The enquiry provision relates to a provision in the accounts to cover claims that are subject to HMRC enquiry and may subsequently be adjusted. The provision is based on an analysis of retrospective data.

 

Other provisions are expected to be settled within one year.

ForrestBrown Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
23
13
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Assets
Assets
2024
2023
Balances:
£
£
Timing differences
141,591
133,648
2024
Movements in the year:
£
Asset at 1 January 2024
(133,648)
Credit to profit or loss
(7,943)
Asset at 31 December 2024
(141,591)

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
251,403
274,857

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

15
Share-based payment transactions

In March 2018, 44,729 share options were granted to employees (or closely connected individuals) of ForrestBrown Limited. These options are registered in the name of the Company's ultimate parent company alliantgroup, L.P. The options vest based on continued employment and vest in equal instalments of 25% each year over 4 years. The share options vested in the year ended 31 December 2022. In deriving the fair value, the parent company used the Black Scholes model. The full expense was recognised in ForrestBrown Limited being where the service was provided. The total expense recognised in the year was £nil (2022: £202,242). All the options were exercisable at the end of the 2022.

 

In April 2020, 5,500 share options were granted to employees of ForrestBrown Limited. These options are registered in the name of the Company's ultimate parent company alliantgroup, L.P. The options vest on continued employment and vest in equal instalments at 25% each year over 4 years. The full expense has been recognised in ForrestBrown Limited being where the service is provided. The total expense recognised in 2024 was £42,017 (2023: £168,068). All the options were exercisable at the end of the year apart from 1,000 in relation to options which have lapsed or been forfeited.

ForrestBrown Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
24
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 1p each
5,500
5,500
55
55
B Ordinary shares of 1p each
4,500
4,500
45
45
C Ordinary shares of 1p each
2,350
2,350
24
24
12,350
12,350
124
124
17
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
530,771
754,577
Between two and five years
1,297,571
1,824,962
1,828,342
2,579,539
18
Related party transactions

Under FRS 102, the Company is not required to disclose transactions entered into between itself and Alliant Global Corporation ("AGC") as it is a wholly owned subsidiary of AGC. The balance outstanding at the year end due from AGC was £7,394,056 (2023: £7,017,643).

 

Similarly, the Company is not required to disclose transactions entered into between itself and wholly owned subsidiaries of AGC. At the year end the Company owed £13,383 (2023: £nil) to Alliantgroup India Talent Private Limited ("AG India").

 

There were related party transactions within the year with a director's company of £nil (2023: £45,000).

 

Key management remuneration amounted to £1,716,845 (2023: £1,848,656).

 

Share options were also present in the year, issued to key management personnel. Further details on this scheme are included in note 15. Share options issued to key management personnel fully vested in 2024.

19
Ultimate controlling party

The company's immediate parent company is Alliant Global Corporation ("AGC") by virtue of its entire holding of the entity's share capital. AGC is a wholly-owned subsidiary of alliantgroup, L.P. Both companies are incorporated in the United States of America.

 

The company's results are not consolidated into accounts that are publicly available. There is not considered to be an ultimate controlling party.

ForrestBrown Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
25
20
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the year after tax
102,238
1,272,604
Adjustments for:
Taxation charged
43,657
429,804
Investment income
(201,258)
(124,054)
Gain on disposal of tangible fixed assets
(503)
(375)
Depreciation and impairment of tangible fixed assets
105,475
247,345
Equity settled share based payment expense
42,017
168,068
Increase in provisions
254,350
705,077
Movements in working capital:
Decrease/(increase) in debtors
595,203
(2,316,630)
Decrease in creditors
(460,537)
(508,163)
Cash generated from/(absorbed by) operations
480,642
(126,324)
21
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
4,386,998
411,589
4,798,587
22
Prior period adjustment

During the year, the company identified that the claims provision should more appropriately be disclosed within provisions as opposed to within the creditors note. The comparative figures for the year ended 31 December 2023 have been restated to reflect this.

Changes to the statement of financial position
As previously reported
Adjustment
As restated at 31 Dec 2023
£
£
£
Creditors due within one year
Other creditors
(2,214,201)
705,077
(1,509,124)
Provisions for liabilities
Other provisions
(285,348)
(705,077)
(990,425)
Net assets
15,730,035
-
15,730,035
Capital and reserves
Total equity
15,730,035
-
15,730,035

This adjustment does not impact reported profit for the year ended 31 December 2023 and as such has no impact on the opening reserves position.

2024-12-312024-01-01falseCCH SoftwareCCH Accounts Production 2024.210Simon BrownShane FrankDhaval JadavMichael Yirillifalsefalse080043762024-01-012024-12-3108004376bus:Director12024-01-012024-12-3108004376bus:Director22024-01-012024-12-3108004376bus:Director32024-01-012024-12-3108004376bus:Director42024-01-012024-12-3108004376bus:RegisteredOffice2024-01-012024-12-31080043762024-12-31080043762023-01-012023-12-3108004376core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3108004376core:RetainedEarningsAccumulatedLosses2024-01-012024-12-31080043762023-12-3108004376core:LeaseholdImprovements2024-12-3108004376core:FurnitureFittings2024-12-3108004376core:ComputerEquipment2024-12-3108004376core:LeaseholdImprovements2023-12-3108004376core:FurnitureFittings2023-12-3108004376core:ComputerEquipment2023-12-3108004376core:CurrentFinancialInstrumentscore:WithinOneYear2024-12-3108004376core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3108004376core:ShareCapital2024-12-3108004376core:ShareCapital2023-12-3108004376core:SharePremium2024-12-3108004376core:SharePremium2023-12-3108004376core:RetainedEarningsAccumulatedLosses2024-12-3108004376core:RetainedEarningsAccumulatedLosses2023-12-3108004376core:ShareCapital2022-12-3108004376core:SharePremium2022-12-3108004376core:RetainedEarningsAccumulatedLosses2022-12-3108004376core:ShareCapitalOrdinaryShares2024-12-3108004376core:ShareCapitalOrdinaryShares2023-12-31080043762023-12-31080043762022-12-3108004376core:LeaseholdImprovements2024-01-012024-12-3108004376core:FurnitureFittings2024-01-012024-12-3108004376core:ComputerEquipment2024-01-012024-12-3108004376core:UKTax2024-01-012024-12-3108004376core:UKTax2023-01-012023-12-310800437612024-01-012024-12-310800437612023-01-012023-12-310800437622024-01-012024-12-310800437622023-01-012023-12-310800437632024-01-012024-12-310800437632023-01-012023-12-3108004376core:LeaseholdImprovements2023-12-3108004376core:FurnitureFittings2023-12-3108004376core:ComputerEquipment2023-12-3108004376core:CurrentFinancialInstruments2024-12-3108004376core:CurrentFinancialInstruments2023-12-3108004376core:Non-currentFinancialInstruments2024-12-3108004376core:Non-currentFinancialInstruments2023-12-3108004376core:WithinOneYear2024-12-3108004376core:WithinOneYear2023-12-3108004376core:BetweenTwoFiveYears2024-12-3108004376core:BetweenTwoFiveYears2023-12-3108004376bus:PrivateLimitedCompanyLtd2024-01-012024-12-3108004376bus:FRS1022024-01-012024-12-3108004376bus:Audited2024-01-012024-12-3108004376bus:FullAccounts2024-01-012024-12-31xbrli:purexbrli:sharesiso4217:GBP