Company registration number 02654935 (England and Wales)
PSD GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PSD GROUP LIMITED
COMPANY INFORMATION
DIRECTORS
Ms F M Robinson
Mr S J Murphy
(Appointed 2 October 2024)
Mr L Krafchik
SECRETARY
Mr L Krafchik
COMPANY NUMBER
02654935
REGISTERED OFFICE
62 Queen Street
London
EC4R 1EB
AUDITOR
Kilsby & Williams LLP
Cedar House
Hazell Drive
Newport
South Wales
NP10 8FY
PSD GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 9
Group statement of comprehensive income
10
Group balance sheet
11 - 12
Company balance sheet
13 - 14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17 - 18
Notes to the financial statements
19 - 39
PSD GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

PRINCIPAL ACTIVITIES

The principal activity of the Company and Group continued to be that of recruitment consultancy services.

REVIEW OF THE BUSINESS

The Directors keep under review the cost base of the Company and Group and they will continue to take prompt and decisive action where necessary to maintain the appropriate balance of revenues and costs for the long term success of the business. Subject to market conditions, the Company and Group will seek to continue extending its operations through organic growth.

 

During the year the Directors made a decision to consolidate from three offices to two. Following the year end the Haywards Heath office was closed and staff relocated to the London office.

The gross fee income for the year increased by 9% (2023: decreased by 1%) to £36.3m (2023: £33.3 million). Despite the increased gross fee income, the profit for the year before taxation was £0.3 million (2023: £1.2 million).

PRINCIPAL RISKS AND UNCERTAINTIES

i) Dependence on key personnel

 

The future success of the Group is dependent on the continued service of senior management and key personnel. The loss of the services of the executive officers of the Group and other key personnel could have a material effect on the business.

ii) Competition

The Directors believe that the Group is well positioned in its chosen markets. Whilst the Group will seek to continue to improve its competitive positions, the actions of current or indeed potential competitors may adversely affect the Group's business.

iii) Strength of key markets

The market for executive search and selection and other recruitment services is currently uncertain and it is difficult to predict how the market will develop over the foreseeable future. A decline in the market for executive search and selection services could have a material adverse effect on profitability and cash flows of the business.

iv) Going concern

As at 31 December 2024 the Group had cash of £3.3m (2023: £7.9 million excluding amounts held on deposit for related parties) and borrowings of £1.0 million. The Group has a further undrawn loan facility of £1.0 million. The Directors have prepared base case financial forecasts for the period ending 1 August 2026. Forecast stress testing has demonstrated that the Group could withstand both a material and prolonged decrease in revenue and not require any financial support beyond its existing facilities. On this basis, the Directors have a reasonable expectation that the Group will have sufficient available resources to continue operating for at least 12 months from the approval date of these Financial Statements. Accordingly, the Group continues to adopt the going concern basis in preparing its financial statements.

PSD GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
KEY PERFORMANCE INDICATORS

The Group's principal Key Performance Indicator ('KPI') is net fee income generated per client service employee which reflects productivity. Current productivity is used to monitor the performance of the business which, together with historic and projected productivity, helps determine where the Group's resources should be deployed. Net fee income per employee for the year was £0.235 million (2023: £0.236 million).

OTHER INFORMATION AND EXPLANATIONS

i) Return of Capital

During the year the Company returned £5.4m of funds to shareholders through the issue and subsequent cancellation of bonus shares. This transaction was undertaken as the Group had excess cash in relation to its expected future requirements.

ii) Related Parties

As at the end of the year the Company has borrowed £1.0 million from a related party, OPD Group Limited.

 

On behalf of the board

Mr L Krafchik
Director
10 July 2025
PSD GROUP 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.

RESULTS AND DIVIDENDS

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £806,317. The directors do not recommend payment of a further dividend.

DIRECTORS

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

Ms F M Robinson
Mr S J Murphy
(Appointed 2 October 2024)
Mr L Krafchik
Mr P Hearn
(Resigned 2 October 2024)
Mr S Tucker-Brown
(Resigned 17 March 2025)
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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PSD GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
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 auditor of the company 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 auditor of the company 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
Mr L Krafchik
Director
10 July 2025
PSD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PSD GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of PSD Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

PSD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PSD GROUP LIMITED
- 6 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

PSD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PSD GROUP LIMITED
- 7 -
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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. 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. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
PSD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PSD GROUP LIMITED
- 8 -
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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.

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.

PSD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PSD GROUP LIMITED
- 9 -
Simon Tee
Senior Statutory Auditor
For and on behalf of
Kilsby & Williams LLP
Chartered accountants & statutory auditor
Cedar House
Hazell Drive
Newport
South Wales
NP10 8FY
11 July 2025
PSD GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
Notes
£
£
TURNOVER
2
36,275,894
33,318,580
Cost of sales
(26,592,380)
(22,444,343)
GROSS PROFIT
9,683,514
10,874,237
Administrative expenses
(9,576,333)
(9,952,273)
OPERATING PROFIT
3
107,181
921,964
Interest receivable and similar income
7
208,715
291,278
Interest payable and similar expenses
8
(16,719)
(450)
PROFIT BEFORE TAXATION
299,177
1,212,792
Tax on profit
9
(85,782)
(137,209)
PROFIT FOR THE FINANCIAL YEAR
22
213,395
1,075,583
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
PSD GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
FIXED ASSETS
Intangible assets
1,282
8,937
Tangible assets
12
57,007
112,108
58,289
121,045
CURRENT ASSETS
Debtors
15
8,451,145
7,641,110
Cash at bank and in hand
3,342,601
16,500,681
11,793,746
24,141,791
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
16
(5,735,212)
(13,159,804)
NET CURRENT ASSETS
6,058,534
10,981,987
TOTAL ASSETS LESS CURRENT LIABILITIES
6,116,823
11,103,032
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
17
(1,000,000)
-
PROVISIONS FOR LIABILITIES
Provisions
18
(311,852)
(294,524)
NET ASSETS
4,804,971
10,808,508
CAPITAL AND RESERVES
Called up share capital
21
709,283
718,278
Share premium account
22
4,656,943
5,148,196
Capital redemption reserve
22
979,363
937,368
Own shares
22
-
0
(870,897)
Profit and loss reserves
22
(1,540,618)
4,875,563
TOTAL EQUITY
4,804,971
10,808,508

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

PSD GROUP LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2024
31 December 2024
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 10 July 2025 and are signed on its behalf by:
10 July 2025
Mr L Krafchik
Director
Company registration number 02654935 (England and Wales)
PSD GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 13 -
2024
2023
Notes
£
£
FIXED ASSETS
Investments
13
1,307,875
1,307,975
1,307,875
1,307,975
CURRENT ASSETS
Debtors
15
6,242,323
11,374,626
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
16
(59,791)
(3,358,650)
NET CURRENT ASSETS
6,182,532
8,015,976
TOTAL ASSETS LESS CURRENT LIABILITIES
7,490,407
9,323,951
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
17
(1,000,000)
-
NET ASSETS
6,490,407
9,323,951
CAPITAL AND RESERVES
Called up share capital
21
709,283
718,278
Share premium account
22
4,656,943
5,148,196
Capital redemption reserve
22
979,363
937,368
Own shares
22
-
0
(870,897)
Profit and loss reserves
22
144,818
3,391,006
TOTAL EQUITY
6,490,407
9,323,951

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,383,388 (2023 - £340,418 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

PSD GROUP LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
31 December 2024
- 14 -
The financial statements were approved by the board of directors and authorised for issue on 10 July 2025 and are signed on its behalf by:
10 July 2025
Mr L Krafchik
Director
Company registration number 02654935 (England and Wales)
PSD GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
Share capital
Share premium account
Capital redemption reserve
Own shares
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
BALANCE AT 1 JANUARY 2023
718,278
5,148,196
937,368
(755,909)
4,927,795
10,975,728
YEAR ENDED 31 DECEMBER 2023:
Profit and total comprehensive income
-
-
-
-
1,075,583
1,075,583
Dividends
10
-
-
-
-
(1,127,815)
(1,127,815)
Own shares acquired
-
-
-
(194,988)
-
(194,988)
Disposals of own shares
-
-
-
80,000
-
80,000
BALANCE AT 31 DECEMBER 2023
718,278
5,148,196
937,368
(870,897)
4,875,563
10,808,508
YEAR ENDED 31 DECEMBER 2024:
Profit and total comprehensive income
-
-
-
-
213,395
213,395
Issue of share capital
21
33,000
33,000
-
-
-
66,000
Bonus issue of shares
21
5,410,253
(524,253)
-
-
(4,886,000)
-
0
Dividends
10
-
-
-
-
(806,317)
(806,317)
Own shares acquired
-
-
-
(86,363)
-
(86,363)
Disposals of own shares
-
-
-
20,001
-
20,001
Redemption of shares
21
(41,995)
-
41,995
-
-
-
0
Reduction of shares
21
(5,410,253)
-
-
-
-
(5,410,253)
Other movements
-
-
-
937,259
(937,259)
-
BALANCE AT 31 DECEMBER 2024
709,283
4,656,943
979,363
-
0
(1,540,618)
4,804,971
PSD GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
Share capital
Share premium account
Capital redemption reserve
Own shares
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
BALANCE AT 1 JANUARY 2023
718,278
5,148,196
937,368
(755,909)
4,178,402
10,226,335
YEAR ENDED 31 DECEMBER 2023:
Profit and total comprehensive income for the year
-
-
-
-
340,418
340,418
Dividends
10
-
-
-
-
(1,127,814)
(1,127,814)
Own shares acquired
-
-
-
(194,988)
-
(194,988)
Disposals of own shares
-
-
-
80,000
-
80,000
BALANCE AT 31 DECEMBER 2023
718,278
5,148,196
937,368
(870,897)
3,391,006
9,323,951
YEAR ENDED 31 DECEMBER 2024:
Profit and total comprehensive income
-
-
-
-
3,383,388
3,383,388
Issue of share capital
21
33,000
33,000
-
-
-
66,000
Bonus issue of shares
21
5,410,253
(524,253)
-
-
(4,886,000)
-
0
Dividends
10
-
-
-
-
(806,317)
(806,317)
Own shares acquired
-
-
-
(86,363)
-
(86,363)
Disposals of own shares
-
-
-
20,001
-
20,001
Redemption of shares
21
(41,995)
-
41,995
-
-
-
0
Reduction of shares
21
(5,410,253)
-
-
-
-
(5,410,253)
Other movements
-
-
-
937,259
(937,259)
-
BALANCE AT 31 DECEMBER 2024
709,283
4,656,943
979,363
-
0
144,818
6,490,407
PSD GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
2024
2023
Notes
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
for the year after tax
213,395
1,075,583
Adjustments for:
Taxation charged
85,782
137,209
Finance costs
16,719
450
Investment income
(208,715)
(291,278)
Amortisation and impairment of intangible assets
7,655
13,404
Depreciation and impairment of tangible fixed assets
55,101
108,387
Increase/(decrease) in provisions
17,328
(102,576)
Movements in working capital:
(Increase)/decrease in debtors
(754,223)
348,638
Increase/(decrease) in creditors
1,353,157
(696,898)
Cash generated from operations
786,199
592,919
Interest received
208,715
291,278
Interest paid
(16,719)
(450)
Income taxes paid
(277,498)
(278,148)
Net cash inflow from operating activities
700,697
605,599
INVESTING ACTIVITIES
Purchase of tangible fixed assets
-
(104,554)
Net cash generated from investing activities
-
(104,554)
FINANCING ACTIVITIES
Proceeds from issue of shares
66,000
-
Cancellation of shares
(5,410,253)
-
0
Purchase of treasury shares
(86,363)
(194,988)
Sale of treasury shares
20,001
80,000
Proceeds from borrowings
1,000,000
-
Repayment of amounts held for third parties
(8,641,845)
-
Paid on trust from third parties
-
(852,277)
Dividends paid to equity shareholders
(806,317)
(1,127,815)
Net cash generated from financing activities
(13,858,777)
(2,095,080)
PSD GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2024
2023
Notes
£
£
- 18 -
NET DECREASE IN CASH AND CASH EQUIVALENTS
(13,158,080)
(1,594,035)
Cash and cash equivalents at beginning of year
16,500,681
18,118,078
Effect of foreign exchange rates
-
(23,362)
CASH AND CASH EQUIVALENTS AT END OF YEAR
3,342,601
16,500,681
PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
1
ACCOUNTING POLICIES
Company information

PSD Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 62 Queen Street, London, EC4R 1EB.

 

The group consists of PSD Group Limited and all of its subsidiaries.

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 £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 20 -
1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company PSD Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 21 -

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

As at 31 December 2024 the Group had cash of £3.3m (2023: £7.9 million excluding amounts held on deposit for related parties) and borrowings of £1.0 million. The Group has a further undrawn loan facility of £1.0 million. The Directors have prepared base case financial forecasts for the period ending 1 August 2026. Forecast stress testing has demonstrated that the Group could withstand both a material and prolonged decrease in revenue and not require any financial support beyond its existing facilities. On this basis, the Directors have a reasonable expectation that the Group will have sufficient available resources to continue operating for at least 12 months from the approval date of these Financial Statements. Accordingly, the Group continues to adopt the going concern basis in preparing its financial statements.

1.5
Turnover

Gross fee income is recognised at a point in time when the Group satisfies performance obligations by transferring the promised services to clients. Gross fee income is net of value added tax. Net fee income is derived by deducting from gross fee income direct costs including the costs of advertising the position and candidate research.

 

For retained assignments these performance obligations are defined by stages of work in the terms of business agreed with the client in advance, and for non-retained assignments the Group's obligations are deemed satisfied when a candidate accepts an offer of employment from a client. The transaction price is set by terms of business agreed with the client in advance. A provision is made against gross fee income for the cancellation of placements either prior to or shortly after the commencement of of employment based on past experience of this occurring.

 

Interest income is recognised on a time-proportion basis using the effective interest method. When a receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 22 -

Amortisation 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:

Software licenses
15 - 33% per annum
1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Leasehold land and buildings
10 years over the period of the lease
Fixtures and fittings
3 years straight line
Computers
3 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 23 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 24 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
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.

1.11
Financial instruments

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

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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.

PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 25 -
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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group 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.

PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 26 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

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

1.13
Taxation

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

Current tax

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

PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 27 -
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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group 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.

1.15
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.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

 

 

 

 

 

PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 28 -
1.17
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 leased asset are consumed.

1.18

Judgements and key sources of estimation uncertainty

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

 

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

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

 

Revenue from permanent placements is recognised when a candidate accepts an offer of employment and a start date has been determined. There are occasionally circumstances where a candidate never takes up the offer of employment and the revenue has to be reversed out in subsequent periods. A provision for withdrawals is made at the time of revenue recognition, based on an estimate of the number of employment offers that will not be taken up.

 

In deciding the level of bad debt provision required management exercises judgement based on the age of the debt, knowledge of any known disputes surrounding the debt, the credit rating and the Company's past experience of trading with the client

2
TURNOVER AND OTHER REVENUE
2024
2023
£
£
Turnover analysed by class of business
Rendering of services
36,275,894
33,318,580
2024
2023
£
£
Other revenue
Interest income
208,715
291,278
PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
3
OPERATING PROFIT
2024
2023
£
£
Operating profit for the year is stated after charging:
Exchange losses
129,314
52,704
Depreciation of owned tangible fixed assets
55,101
108,387
Amortisation of intangible assets
7,655
13,404
4
AUDITOR'S REMUNERATION
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
34,150
33,000
For other services
Audit-related assurance services
34,150
33,000
Taxation compliance services
7,450
7,200
41,600
40,200
5
EMPLOYEES

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Executive directors
4
4
4
4
Administrative staff
19
19
-
-
Client services
41
46
-
-
Total
64
69
4
4
PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
5
EMPLOYEES
(Continued)
- 30 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,041,802
6,589,209
-
0
-
0
Social security costs
848,422
769,579
-
-
Pension costs
75,610
84,522
-
0
-
0
6,965,834
7,443,310
-
0
-
0
6
DIRECTORS' REMUNERATION
2024
2023
£
£
Remuneration for qualifying services
587,762
648,937
Company pension contributions to defined contribution schemes
6,092
6,092
593,854
655,029
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
221,582
278,985
Company pension contributions to defined contribution schemes
1,321
-
7
INTEREST RECEIVABLE AND SIMILAR INCOME
2024
2023
£
£
Interest income
Interest on bank deposits
208,528
291,278
Other interest income
187
-
Total income
208,715
291,278
PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
8
INTEREST PAYABLE AND SIMILAR EXPENSES
2024
2023
£
£
Other interest
16,719
450
9
TAXATION
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
90,791
247,559
Adjustments in respect of prior periods
-
0
(16,193)
Total current tax
90,791
231,366
Deferred tax
Origination and reversal of timing differences
(5,009)
(94,157)
Total tax charge
85,782
137,209

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
299,177
1,212,792
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
74,794
285,006
Tax effect of expenses that are not deductible in determining taxable profit
10,308
8,629
Adjustments in respect of prior years
-
0
(16,193)
Depreciation on assets not qualifying for tax allowances
680
710
Deferred tax adjustments in respect of prior years
-
0
(94,157)
Settlement of provisions
-
0
(42,054)
Other permanent differences
-
0
(4,732)
Taxation charge
85,782
137,209
PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
10
DIVIDENDS
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
806,317
1,127,814
11
INTANGIBLE FIXED ASSETS
Group
Software licenses
£
Cost
At 1 January 2024 and 31 December 2024
94,331
Amortisation and impairment
At 1 January 2024
85,394
Amortisation charged for the year
7,655
At 31 December 2024
93,049
Carrying amount
At 31 December 2024
1,282
At 31 December 2023
8,937
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.
PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
12
TANGIBLE FIXED ASSETS
Group
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2024 and 31 December 2024
1,042,287
218,724
102,017
1,363,028
Depreciation and impairment
At 1 January 2024
1,019,309
132,458
99,153
1,250,920
Depreciation charged in the year
19,922
33,802
1,377
55,101
At 31 December 2024
1,039,231
166,260
100,530
1,306,021
Carrying amount
At 31 December 2024
3,056
52,464
1,487
57,007
At 31 December 2023
22,978
86,266
2,864
112,108
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.
13
FIXED ASSET INVESTMENTS
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
1,307,875
1,307,975
PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
13
FIXED ASSET INVESTMENTS
(Continued)
- 34 -
MOVEMENTS IN FIXED ASSET INVESTMENTS
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024
1,307,975
Other movement
(100)
At 31 December 2024
1,307,875
Carrying amount
At 31 December 2024
1,307,875
At 31 December 2023
1,307,975
14
SUBSIDIARIES

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
PSD Limited
62 Queen Street, London, EC4R 1EB
Ordinary
0
100.00
PSD Contracts Limited
62 Queen Street, London, EC4R 1EB
Ordinary
100.00
-
Reuter Simkin Limited
62 Queen Street, London, EC4R 1EB
Ordinary
100.00
-
Portfolio International Limited
62 Queen Street, London, EC4R 1EB
Ordinary
100.00
-
Hoggett Bowers Limited
62 Queen Street, London, EC4R 1EB
Ordinary
100.00
-
Portfolio Recruitment Limited
62 Queen Street, London, EC4R 1EB
Ordinary
100.00
-
Hoggett Bowers Interim Management Limited
62 Queen Street, London, EC4R 1EB
Ordinary
0
100.00
PSD Employee Benefit Trustee Limited
62 Queen Street, London, EC4R 1EB
Ordinary
100.00
-
PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 35 -
15
DEBTORS
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,409,545
4,287,033
-
0
-
0
Corporation tax recoverable
50,803
-
0
-
0
-
0
Amounts owed by group undertakings
-
-
6,242,323
11,374,626
Other debtors
452,949
575,004
-
0
-
0
Prepayments and accrued income
3,438,682
2,684,916
-
0
-
0
8,351,979
7,546,953
6,242,323
11,374,626
Deferred tax asset (note 19)
99,166
94,157
-
0
-
0
8,451,145
7,641,110
6,242,323
11,374,626
16
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
339,842
268,655
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
-
0
3,253,957
Corporation tax payable
90,791
226,695
59,791
104,693
Other taxation and social security
307,859
435,389
-
-
Other creditors
1,550,798
9,385,480
-
0
-
0
Accruals and deferred income
3,445,922
2,843,585
-
0
-
0
5,735,212
13,159,804
59,791
3,358,650

Other creditors include £nil (2023: £8.6m) in respect of amounts held on deposit on behalf of related parties.

17
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Group
Company
2024
2023
2024
2023
£
£
£
£
Other creditors
1,000,000
-
0
1,000,000
-
0
PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 36 -
18
PROVISIONS FOR LIABILITIES
Group
Company
2024
2023
2024
2023
£
£
£
£
Dilapidation provision
311,852
294,524
-
-
Movements on provisions:
Dilapidation provision
Group
£
At 1 January 2024
294,524
Additional provisions in the year
17,328
At 31 December 2024
311,852
19
DEFERRED TAXATION

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

Assets
Assets
2024
2023
Group
£
£
Accelerated capital allowances
27,701
22,377
Retirement benefit obligations
-
315
Provisions
71,465
71,465
99,166
94,157
The company has no deferred tax assets or liabilities.
PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
19
DEFERRED TAXATION
(Continued)
- 37 -
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 1 January 2024
(94,157)
-
Credit to profit or loss
(5,009)
-
Asset at 31 December 2024
(99,166)
-

The majority of the deferred tax asset that relates to the dilapidations provisions held will reverse over the term of the lease.

20
RETIREMENT BENEFIT SCHEMES
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
75,610
84,522

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

21
SHARE CAPITAL
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 5p each
14,185,632
14,365,544
709,283
718,278
PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 38 -
22
RESERVES
Share premium

Share premium account records the amount above the nominal value received for shares sold, less transaction costs.

Capital redemption reserve

Capital redemption reserve records the nominal value of shares repurchased by the company.

Own shares

Reserve for own shares records the value paid and received for shares held in treasury. At the balance sheet date no shares (2023: 707,186) were held in treasury. During the year 172,723 employee held shares were purchased into treasury, at a cost of £86,363. A total of 40,000 shares were resold from treasury to employees during the year, with proceeds of £20,001.

23
FINANCIAL COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES

The Company and its UK subsidiaries have provided a guarantee to Barclays Bank Plc in relation to a Composite Accounting Agreement in place.

24
OPERATING LEASE COMMITMENTS
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
529,637
740,723
-
-
Between two and five years
247,928
832,875
-
-
777,565
1,573,598
-
-
PSD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 39 -
25
RELATED PARTY TRANSACTIONS
Transactions with related parties

Costs accrued or paid that directly relate to a client service employee are apportioned between the Group companies based on the revenue each employee has generated. Other costs that offer benefits to the whole Group are apportioned between the Group companies based on the number of client service employees.

 

For the year ended 31 December 2024 directors fees were charged by OPD Group Limited, a company of which Mr Hearn and Mr Murphy are also directors for the services of Mr Hearn and Mr Murphy amounting to £30,000 (2023: £30,000). A balance of £30,000 was due at the year end (2023: £30,000).

 

At the year end, £nil was included in Other Creditors (2023: £8.6m) for amounts held on deposit in a treasury interest bearing account on behalf of OPD Group Limited. The interest received on amounts under deposit on behalf of related parties was £308,244 (2023: £440,483) and this interest has been transferred in full to the relevant related party.

 

During the year ended 31 December 2024, OPD Group Limited provided a loan of £1,000,000. There is interest charged at 1% over base rate and it is due for repayment on 30 June 2027.

26
DIRECTORS' TRANSACTIONS

At the year end the director L Krafchik had received an interest free loan from the Company of £15,000 (2023: £50,000). The conditions of the loans state that repayment will only take place as a result of an exit event in PSD Group Limited to discharge the liability or termination of employment, whichever is the earlier of the two.

27
CONTROLLING PARTY

The ultimate parent undertaking and controlling party of the Company is PSD Group Holdings Limited, a private company incorporated in England. The smallest and largest group producing accounts into which the results of the Group for the year ended 31 December 2024 are consolidated is PSD Group Limited. The accounts of PSD Group Limited are available from Companies House, Crown Way, Cardiff CF14 3UZ.

28
ANALYSIS OF CHANGES IN NET FUNDS - GROUP
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
16,500,681
(13,158,080)
3,342,601
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