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Registration number: 02209742

Carbon60 Limited

Annual Report

for the 52 weeks ended 3 January 2025

 

Carbon60 Limited

Contents

Company Information

1

Strategic Report

2 to 5

Section 172 statement

4

Directors' Report

6 to 9

Statement of Directors' Responsibilities

10

Independent Auditor's Report

11 to 14

Profit and Loss Account

15

Statement of Comprehensive Income

16

Balance Sheet

17

Statement of Changes in Equity

18

Notes to the Financial Statements

19 to 39

 

Carbon60 Limited

Company Information

Directors

T Briant

S R Blockley

R R King

Registered office

First Floor, Mulberry House
Parkland Square
750 Capability Green
Luton
Bedfordshire
LU1 3LU

Registration number

02209742

Auditors

BDO LLP
55 Baker Street
London
W1U 7EU

 

Carbon60 Limited

Strategic Report for the 52 weeks ended 3 January 2025

The directors present their strategic report for the 52 weeks ended 3 January 2025.

Fair review of the business

The Company's key financial and other performance indicators during the period were as follows:

52 weeks
3 January
2025

53 weeks
5 January
2024

Change

£000s

£000s

%

Turnover

120,389

106,954

12.6

Gross profit

16,072

15,653

2.7

Administrative expenses

(9,825)

(9,596)

2.4

Operating profit

6,247

6,057

3.1

Gross profit percentage (%)

13.4

14.6

Conversion rate (%) (Operating profit to Gross profit)

38.9

38.7

Permanent fees as a % of Gross profit

8.7

11.5

The Company operates within the core specialist markets of Defence, Engineering, Construction, Aviation, Infrastructure and Facilities Management. It focuses on outsourced Digital and Engineering service provision, temporary and permanent supply of specialist staff. The Company continues to build its Project Services / Managed Service solutions within these specialist sectors offering clients the most appropriate solution for their requirement, whether that be an Outsourced Service, Statement of Work, RPO or Master Vend.

Despite the significant macro challenges within core markets including inflationary pressure, heightened interest rates and rising oil prices, the business successfully delivering £120m of revenue, representing a 12.6% increase on the prior period. Customer centricity remains a key strategic priority and during the period we supported our customers by delivering talent solutions and outsourced services to meet growing demand, driving up gross profit across all outsourced and temporary service lines by 2.7% in the period. The continued pressure with both candidate and vacancy availability in the perm market resulted in a 24.9% reduction in permanent gross margin in the period, this resulted in the gross profit percentage decreasing to 13.4%, from 14.6% in 2023. In order to support the growing demands of our key strategic partners, administrative expenses in the year increased by 2.4%, driving operating profit growth of 3.1% at a gross profit conversion rate of 38.9%, up from 38.7% in 2023.

On 13 December 2023 the ultimate parent company at the time, Impellam Group Plc. announced the agreement to sell the Impellam Group of companies ("the Group"), which include the Company, to HeadFirst Global Plc, which is partly owned by Icelake, a Europe-based investment fund that invests in exceptional companies. The sale completed on 21 March 2024.

 

Carbon60 Limited

Strategic Report for the 52 weeks ended 3 January 2025 (continued)

Principal risks and uncertainties

Attracting and retaining talent
Any constraints on the Company’s ability to attract and retain key talent in an increasingly competitive market could result in loss or weakening of client relationships, lack of appropriate leadership and/or erosion of the Company’s talent base, impacting achievement of both financial and other objectives. Planned business transformation initiatives will create a need for new skill-sets in the Company in the medium term. Factors such as changes to the UK immigration rules may impact on the availability of talent more generally.

The Company’s high-retention business model ensures that brands and central functions are focused on talent management and development, performance review and succession planning. Leadership development programmes are in place and the Impellam Group’s Virtuoso-based approach encourages talent development and progression.

Customer concentration
General decline in a particular industry sector, loss of a key customer or a significant reduction in business volume on a key account could result in reduced revenue and/or increased pressure on gross profit. This exposure is known to have impacted on some of the Company’s competitors.

Management discuss and review market conditions and sales and account management pipelines on an ongoing basis. Management also hold regular meetings with key customers to discuss sales pipelines, current service performance and opportunities to add new services lines or extend existing services.

Technology Systems
The Company is reliant on many different technology systems that may have limited useful life in a fast-changing business environment. The legacy nature of some systems may hinder optimisation of end-to-end business processes. Systems may also be vulnerable to factors beyond the Company’s control e.g. power failures or internet connectivity outages.

The Company has a stable systems infrastructure and an ongoing IT investment programme. The Company is assessing the benefits of utilising systems that are now available within the wider group where they may enhance customer, colleague and worker experiences. In addition, the Company is assessing the use of AI to drive efficiencies and stakeholder benefits.

Cyber and Information security
o The risk of external cyber-attacks continues to increase. A successful attack could result in loss of sensitive data, business disruption and/or damage to the Company’s reputation. A programme to enhance security of the Company’s systems against cyber-attack has been implemented and the business has been Cyber Essentials Plus certified since 2021.

Regulatory environment
Regulatory changes can lead to increased costs and workload, particularly where they relate to candidates’ rights, eligibility to work or corporate reporting e.g. payment practices, diversity.

Appropriate policies and codes of conduct are in place across the Company and regular training is provided to employees. Process and system changes required to ensure effective management of IR35 changes have been identified and are being implemented. External professional advice is sought where insufficient knowledge exists within the Company.

Environmental matters

A Streamlined Energy and Carbon report has not been included within the report as it is included within the group report of Impellam Group Limited.

 

Carbon60 Limited

Strategic Report for the 52 weeks ended 3 January 2025 (continued)

Section 172 statement

Section 172 of the Companies Act 2006 requires Directors to take into consideration the interests of stakeholders and other matters in their decision-making. We believe we have a history of collaborative, informative stakeholder engagement and decision-making based on long-term success, and we maintain governance structures and processes that support good decision-making.

This section articulates how the Directors have acted to promote the success of the Company for the benefit of its stakeholders. In meeting this responsibility, the Directors have had regard, amongst other matters, to:
a) the likely consequences of any decisions in the long term;
b) the interests of the Company’s colleagues;
c) the need to foster the Company’s business relationships with suppliers, customers and others;
d) the impact of the Company’s operations on the community and environment;
e) the Company’s reputation for high standards of business conduct; and
f) the need to act fairly as between members of the Company.

The Board of Directors consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its stakeholders as a whole (having regard to the stakeholders and matters set out in section 172(1) (a-f) of the Act) in the decisions taken during the current period.

Stakeholders of the Company are clients, candidates, suppliers, employees, shareholders and lenders and the Board recognises the need to regularly review the identity of its stakeholders as it makes decisions. We develop and encourage long-term relationships with our stakeholders based upon our vision ‘to be the world’s most trusted staffing company - trusted by our people, our customers and our investors in equal measure’.

We engage with our customers in ways most appropriate to their markets, and continually review their satisfaction and our performance either quarterly, biannually and annually. This is supported by feedback via face-to-face meetings, net promoter scores and surveys.

Our employees are fundamental to the delivery of our vision, mission, strategic and financial promises to our stakeholders. Our people are inducted, trained and supported by managers and colleagues to understand the promise-based ethos to all their interactions with candidates, customers and each other. This underpins our culture of trust and helps people feel engaged in the long-term success of the business. A shadow board, the Virtuoso Alliance, employee councils across the Impellam Group, including those of the Company, surveys, net promoter scores and Best Companies’ accolades all ensure we are engaging with and listening to our employees.

Our mission as a business is to ‘provide a sense of purpose and fulfilment for our people to help our customers build better businesses in a changing world’ which includes not just our people but also the candidates we provide to our customers. We ensure engagement with our candidates using net promoter scores, real-time feedback and surveys.

Further, our strategy ensures that we place the highest expectations on our supply chain, especially those supplying workers but also the myriad of partners on whom we depend - whether they are supplying stationery or sourcing workers. All suppliers are expected to sign up to our Supplier Code of Conduct and to abide by the commitments contained in this.

 

Carbon60 Limited

Strategic Report for the 52 weeks ended 3 January 2025 (continued)

Engagement with stakeholders

The Company’s stakeholders are clients, candidates, suppliers, colleagues, investors and lenders and the Board recognises the need to regularly engage with its stakeholders as it makes decisions. We develop and encourage long-term relationships with our stakeholders based upon main Impellam Group’s vision ‘to be the world’s most trusted staffing company – trusted by our people, our clients and our investors in equal measure’.

As part of this vision, our stakeholders’ interests have been forefront when the Board of Directors set the strategic priorities of the Company. The strategic priorities of: Enabling our Virtuosos; Transforming our Portfolio; and Improving Resilience include consideration of the key stakeholder groups and how we engage with them.

In addition to regular stakeholder engagement, as the Board of Directors, our intention is to take into account our operational impacts on the community and environment, and our wider societal responsibilities, and in particular, how we impact the regions we serve. We support our communities by finding them good work, supporting local corporate social responsibility initiatives and ensuring our impact on the environment is minimal, as demonstrated by our ISO 14001 accreditation.

Key decisions

Digital transformation

During the year we invested in our core technology platforms to make greater use of digital solutions to improve the efficiency of our business processes.

Stakeholder considerations:
Colleagues, candidates and clients
The investment in the digital transformation systems will ensure the Company is easier and quicker to deal with, generating efficiencies across the candidate journey and enhancing the client experience. We have ensured that by allowing blended working we continue to meet the requirements of our clients and candidates.

Investors and lenders
The investment will ensure that our digital strategies and policies meet the constantly evolving business requirements, helping to improve the resiliency and efficiency and so make the Company a more robust proposition.

Outcome
The new digital offerings, which include a new pay/bill system, were rolled out during the second half of the period. In taking these decisions and considering the digital needs of our candidates, customers and colleagues we will ensure we create long term success and become a truly data-led Company.

Approved by the board on 21 July 2025 and signed on its behalf by:
 

.........................................
T Briant
Director

.........................................
R R King
Director

 

Carbon60 Limited

Directors' Report for the 52 weeks ended 3 January 2025

The directors present their Annual Report and the financial statements for the 52 weeks ended 3 January 2025.

Directors of the Company

The directors, who held office during the period, were as follows:

T Briant

J Robertson (resigned 5 February 2025)

The following directors were appointed after the period end:

S R Blockley (appointed 5 February 2025)

R R King (appointed 5 February 2025)

Principal activity

The principal activity of the Company is the provision of employment services to the information and communications technology, government & defence and aerospace sectors principally in the UK and Europe.

Future developments

Trading in 2024 has begun in line with our expectations. Pipelines remain strong but we will continue to remain vigilant, given the political and economic headwinds of inflationary pressure and interest rate rises, continuing events in Ukraine and ongoing talent shortages across all our regions.

The directors continue to monitor the performance of the Company and are confident of its continued success.

Dividends

The company is recommending a final dividend in respect of 2024 of £0.38 per share totalling £6,800,000 to be paid on the date of signing the accounts (2023: £Nil).

Financial instruments

Objectives and policies

The Company's principal financial instruments comprise cash and access to the Group's Receivables Purchase Agreement. The main purpose of these financial instruments is to raise finance for the company's operations. The Company has various other financial instruments such as trade debtors and trade creditors, which arise directly from its operations. The Company does not enter into derivative transactions.

Financial instrument risks

The main risks arising from the Company's financial instruments are liquidity risk and foreign currency risk. The board reviews and agrees policies for managing each of these risks as summarised below:

Interest rate risk
The Company's exposure to interest rate risk is minimal as borrowings are held at a group level. The Company does not currently hedge this risk.

Liquidity risk
The Company relies on the group to manage liquidity risk. The Group has a central Treasury function in place with regular forecasting, reporting and review procedures.

Foreign currency risk
The Company is exposed to fluctuations in the exchange rate between sterling and Euro, Australian dollar and Swiss franc. Wherever possible this risk is managed by ensuring expenses related to the generation of these overseas revenues are in the same currency as the income. The Company does not seek to hedge this exposure.

Political donations

The Company made no political donations during either the current or prior periods.

 

Carbon60 Limited

Directors' Report for the 52 weeks ended 3 January 2025 (continued)

Research and development

The Company had no research and development in either the current or prior periods.

Going concern

The directors have set out their business review for the Company in the Strategic Report on page 2. After making appropriate enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. In coming to their conclusion, the Directors have considered the Group’s profit and cash flow plans for FY25 and FY26 (the going concern forecast period), as well as considering potential downside scenarios and their potential impact on the trading performance and cash flows of the Group.

Prior to the acquisition of the Group by HeadFirst Global Plc, the Group operated with a £132.5m Revolving Credit Facility (‘RCF’) with a £30m accordion facility. On completion of the acquisition, outstanding amounts on the RCF were repaid on 12 April 2024 and the facility terminated. On 3 June 2024, a new 3 year US$400m (£313m on the date the facility was taken out) committed Receivable Purchase Agreement (‘RPA’) facility was entered into by the Group, of which US$362m (£292m) is drawn as at 3 January 2025. The borrowing base under the RPA is determined by the value of the Group’s USD and GBP receivables and is subject to overall Group liquidity levels as well as leverage and interest cover covenants and capped at US$400m, with a floor of $175m. The Group’s going concern projections assess the potential debt requirements against the Group’s US$400m of committed facilities and against the key covenant ratios over the period to the end of FY26.

The new RPA borrowing facilities are subject to Accelerated Collection Payment Event (ACPE) and Master Servicer Termination Event (MSTE) covenants that are measured monthly. The ACPE covenants are net debt to EBITDA (leverage) of a maximum of 7.0x until May 2025, 6.75x for June and July 2025 and 6.0x thereafter and interest cover of a minimum of 1.5x over the entire length of the facility. The MSTE provides higher covenant headroom with leverage at 7.0x EBITDA until August 2025 and 6.5x thereafter and Interest cover at 1.7x. The Group liquidity basis must be maintained at a minimum of £30m under the ACPE covenant and £20m under the MSTE covenant, which is measured weekly. All covenants are forecast to be met throughout the going concern forecast period.

The Group has modelled sensitivities over the going concern forecast period, as well as assessing reverse stress test scenarios using the ACPE covenant thresholds to be conservative. Therefore, further headroom would exist in these scenarios under the MSTE covenant. The most sensitive assumptions and covenants relate to EBITDA and net debt forecasts. The reverse stress testing focused on a reduction in EBITDA, reduced gross profit and cost savings. A fall in gross profit of more than 4.4% for FY25 would cause a breach in the leverage covenant and require mitigating actions to be initiated. The first action would be pre-emptively not recruit forecast incremental headcount if associated revenues are not materialising, then reduce the discretionary annual bonus accrual which is linked to financial performance, followed by reducing other discretionary spend such as marketing, travel and entertainment. These actions could offset at least 12% reduction in gross profit before the leverage covenant was breached, which is deemed highly unlikely in the current trading climate. The Group is currently trading in FY25 in line with profit forecasts.

Similar to other organisations, it remains hard to predict an uncertain macro-economic backdrop which continues through 2025. Consequently, there is a degree of uncertainty in respect of future forecasts. However, the Group has the finance facility committed until June 2027, subject to extension application in June 2026 and a blend of revenue streams covering permanent, contract, interim and recruitment process outsourcing and a diverse range of clients and suppliers across three regions (UK & Europe, North America and APAC). The various stress test scenarios and mitigating actions indicate the Group can continue operation within its banking covenants and existing cash and financing facilities. Importantly, liquidity risk is mitigated to an extent as a proportion of the Group trade creditors are on a ‘paid when paid’ contractual basis; further working capital is typically released in any downturn scenario, in the contract recruitment sector, and the group continues to maintain credit insurance, to mitigate the impact of any unexpected non-payment by key customers. Further details of the financial position of the Group, its cash flows, liquidity position and borrowing facilities are described within the Strategic Report of Impellam Group Limited.

 

Carbon60 Limited

Directors' Report for the 52 weeks ended 3 January 2025 (continued)

The going concern forecasts set out above assess the Group on a standalone basis, as the RPA facility is provided to the Group entities only, and not the wider HeadFirst group of companies. Within these forecasts, the directors have considered and included, as necessary, any requirements to provide funding to HeadFirst Group, the ultimate Parent Company, or other subsidiaries that do not form part of the Group.

The going concern assessment required careful consideration of the forecasted cash flows over at least the next 12 months, including assumptions on gross profit, cost control, and timing of cash receipts and payments. Given the inherent uncertainty in these forecasts, management exercised significant judgement in:
• Estimating future revenue and gross profit on current market conditions and new business growth
• Assessing the timing and amount of working capital requirements
• Evaluating compliance with borrowing facilities financial covenants
• Considering potential mitigating actions, such as cost reductions such as reducing the discretionary annual bonus which is linked to financial performance, followed by reducing other discretionary spend such as marketing, travel and entertainment

The directors are satisfied that the forecasts are reasonable and support the entity’s ability to meet its obligations as they fall due. The directors are also satisfied that mitigating actions would be sufficient to allow the Group to operate within its covenants in any reasonably likely scenario. The directors are also of the judgement that it has a good relationship with its primary lender and that they would be willing to offer forbearance in the unlikely event that the covenants are breached for such time as it takes to rectify the situation.

Based on the above, the Directors consider it appropriate to continue to adopt the going concern basis in preparing the financial statements.

Employment of disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the Company continues and that appropriate training is arranged. It is the policy of the Company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The Company recognises that it is essential to maintain a highly skilled workforce. To this end the policy of training and development is incorporated in the Company plan. It is the policy to promote from within the organisation wherever the possibility exists.

Health and safety measures are given particular attention by the directors and a written policy exists and is known throughout the Company.

The Company recognises the need for employees to be informed of the Company's activities and performance. A corporate intranet for all employees provides a wide range of information and provides an increasingly important communication tool for policies and procedures as well as the sharing of information, document storage and specific news. Meetings are held between management and employees to allow sharing of information and consultation. Employees participate directly in the performance of the business through the Company's bonus arrangements.

 

Carbon60 Limited

Directors' Report for the 52 weeks ended 3 January 2025 (continued)

Social and community issues

As part of the Company’s mission to find people fulfilling work, we strongly oppose modern slavery in all its forms and will try to prevent it by any means that we can. We expect anyone who has any suspicions of modern slavery in our business or our supply chain to raise their concerns without delay. In light of the Modern Slavery Act 2015 we annually review internal and external measures to ensure we are doing what we can to prevent slavery and human trafficking in our businesses and in our supply chains. Our policy is available on the website of Impellam Group Limited at www.impellam.com.

We have a commitment to carrying out business fairly, honestly and openly. We also have zero tolerance towards bribery. Our Bribery Policy is in place to provide relevant guidance and information to all our people in compliance with the law relating to bribery and corruption, in particular the Bribery Act 2010 (‘the Act’). We are determined to maintain our reputation as a business that will not tolerate fraudulent or corrupt dealings – whether they are attempted against us from outside, from within our own workforce, or towards our clients or suppliers.

Directors' liabilities

During the period and to the date of these financial statements, the Company had in force an indemnity provision in favour of one or more directors of the Company against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006.

Disclosure of information to the auditors

Each Director has taken steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditors

The auditors BDO LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved by the Board on 21 July 2025 and signed on its behalf by:

.........................................
T Briant
Director

.........................................
R R King
Director

 

Carbon60 Limited

Statement of Directors' Responsibilities

The Directors acknowledge their responsibilities 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 Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 101 'Reduced Disclosure Framework' ('FRS 101'). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether FRS 101 has been followed, subject to any material departures disclosed and explained in the financial statements; and

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

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

 

Carbon60 Limited

Independent Auditor's Report to the Members of Carbon60 Limited

Opinion on the financial statements

In our opinion the financial statements:

give a true and fair view of the state of the Company's affairs as at 3 January 2025 and of its profit for the period then ended;

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

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

We have audited the financial statements of Carbon60 Limited (the 'Company') for the 52 week period ended 3 January 2025, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including material accounting policy information. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence
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.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.

Other Companies Act 2006 reporting

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

the information given in the Strategic Report and Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

 

Carbon60 Limited

Independent Auditor's Report to the Members of Carbon60 Limited (continued)

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:

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities, 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.

Extent to which the audit was capable of detecting irregularities, including fraud

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:

Non-compliance with laws and regulations

Based on:

Our understanding of the Company and the industry in which it operates;

Discussion with management and those charged with governance; and

Obtaining and understanding of the Company’s policies and procedures regarding compliance with laws and regulations.

We considered the significant laws and regulations to be the reporting framework (UK GAAP and the Companies Act 2006), labour regulations and UK tax legislation.

The Company is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be data protection laws, anti-money laundering regulations, UK employment and taxation legislation.

Our procedures in respect of the above included:

Review of minutes of meeting of those charged with governance for any instances of non-compliance with laws and regulations;

Review of correspondence with tax authorities for any instances of non-compliance with laws and regulations;

Review of financial statement disclosures and agreeing to supporting documentation;

 

Carbon60 Limited

Independent Auditor's Report to the Members of Carbon60 Limited (continued)

Involvement of tax specialists in the audit; and

Review of legal expenditure accounts to understand the nature of expenditure incurred.

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

Enquiry with management and those charged with governance regarding any known or suspected instances of fraud;

Obtaining an understanding of the Company’s policies and procedures relating to:

o Detecting and responding to the risks of fraud; and

o Internal controls established to mitigate risks related to fraud.

Review of minutes of meeting of those charged with governance for any known or suspected instances of fraud;

Discussion amongst the engagement team as to how and where fraud might occur in the financial statements; and

Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.

Based on our risk assessment, we considered the area’s most susceptible to fraud to be revenue recognised at period end. The auditor’s responsibility relating to fraud in an audit of financial statements requires us to presume that the risk of management override of controls is present and significant.

Our procedures in respect of the above included:

Testing a sample of journal entries throughout the year, which met a defined risk criterion, by agreeing to supporting documentation;

Incorporating unpredictability testing;

Assessing significant estimates made by management for bias; and

Challenging and assessing the appropriateness of the estimation uncertainty and judgement made by management having regard to supporting evidence and historical outcomes. The key estimates and judgements were identified as revenue recognition, accrued income for missing timesheets and deferred income, for contracts based on milestones.

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

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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 are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

Carbon60 Limited

Independent Auditor's Report to the Members of Carbon60 Limited (continued)

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.

......................................
Mark Cardiff (Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditor

London, UK

22 July 2025

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

 

Carbon60 Limited

Profit and Loss Account for the 52 weeks ended 3 January 2025

Note

52 weeks
3 January
2025
£ 000

53 weeks
5 January
2024
£ 000

Turnover

4

120,389

106,954

Cost of sales

 

(104,317)

(91,301)

Gross profit

 

16,072

15,653

Administrative expenses

 

(9,825)

(9,596)

Operating profit

6

6,247

6,057

Interest receivable and similar income

8

499

451

Interest payable and similar expenses

9

(49)

(11)

Profit before tax

 

6,697

6,497

Tax on profit

12

(2,070)

(1,847)

Profit for the period

 

4,627

4,650

The above results were derived from continuing operations.

 

Carbon60 Limited

Statement of Comprehensive Income for the 52 weeks ended 3 January 2025

52 weeks
3 January
2025
£ 000

53 weeks
5 January
2024
£ 000

Profit for the period

4,627

4,650

Total comprehensive income for the period

4,627

4,650

 

Carbon60 Limited

(Registration number: 02209742)
Balance Sheet as at 3 January 2025

Note

3 January
2025
£ 000

5 January
2024
£ 000

Non-current assets

 

Intangible assets

13

-

3

Tangible assets

14

203

147

Right of use assets

15

415

59

Investments

16

39

39

Deferred tax assets

22

56

57

Amounts owed by related parties

17

59,238

39,249

 

59,951

39,554

Current assets

 

Debtors

17

19,722

16,240

Cash at bank and in hand

18

1,143

1,479

 

20,865

17,719

Creditors: Amounts falling due within one year

19

(42,081)

(23,302)

Net current liabilities

 

(21,216)

(5,583)

Total assets less current liabilities

 

38,735

33,971

Creditors: Amounts falling due after more than one year

20

(65)

(9)

Provisions for liabilities

21

(149)

(68)

Net assets

 

38,521

33,894

Capital and reserves

 

Called up share capital

24

17,800

17,800

Retained earnings

25

20,721

16,094

Shareholder's funds

 

38,521

33,894

These financial statements were approved by the board on 21 July 2025 and signed on its behalf by:

.........................................
T Briant
Director

.........................................
R R King
Director

 

Carbon60 Limited

Statement of Changes in Equity for the 52 weeks ended 3 January 2025

Share capital
£ 000

Retained earnings
£ 000

Total
£ 000

At 31 December 2022

17,800

11,444

29,244

Profit for the period

-

4,650

4,650

Total comprehensive income

-

4,650

4,650

At 5 January 2024

17,800

16,094

33,894

Share capital
£ 000

Retained earnings
£ 000

Total
£ 000

At 6 January 2024

17,800

16,094

33,894

Profit for the period

-

4,627

4,627

Total comprehensive income

-

4,627

4,627

At 3 January 2025

17,800

20,721

38,521

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025

1

General information

The Company is a private company limited by share capital, incorporated and domiciled in the United Kingdom.

The address of its registered office is:
First Floor, Mulberry House
Parkland Square 750 Capability Green
Luton
Bedfordshire LU1 3LU

These financial statements were authorised for issue by the board on 21 July 2025.

2

Accounting policies

Summary of material accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of preparation

These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (“FRS 101”). The financial statements have been prepared on a historical basis. The functional and presentational currency is GBP and the figures are presented to the nearest thousand pound.

In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of International Financial Reporting Standards ('IFRS') in conformity with the requirements of the Companies Act 2006 and has set out below where advantage of the FRS 101 disclosure exemptions has been taken.

Summary of disclosure exemptions

In these financial statements, the Company has taken advantage of the exemptions available under FRS 101 in respect of the following disclosures:

IFRS 7 - ‘Financial instruments: Disclosures’.

The requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 - ‘Revenue from Contracts with Customers’ (disaggregation of revenue, significant changes in contract assets and liabilities, details on transaction price allocation, timing of the satisfaction of performance obligations and significant judgements made in the application of IFRS 15).

The requirements of paragraph 52 [lessee], the second sentence of paragraph 89, and paragraphs 90, 91 and 93 [lessor] of IFRS 16 - ‘Leases’ (lessee disclosures and lessor disclosures in relation to finance leases and lease income on operating leases).

Paragraph 38 of IAS 1 - ‘Presentation of financial statements’ (comparative information requirements in respect of):

- paragraph 79(a)(iv) of IAS 1
(reconciliation of number of shares at the beginning and end of the period)

- paragraph 73(e) of IAS 16, ‘Property, plant and equipment’
(reconciliations between the carrying amount at the beginning and end of the period)

- paragraph 118(e) of IAS 38, ‘Intangible assets’
(reconciliations between the carrying amount at the beginning and end of the period)

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025 (continued)

2

Accounting policies (continued)

The following paragraphs of IAS 1 - ‘Presentation of financial statements’ (removing the requirement to present):

- 10(d) (statement of cash flows);

- 16 (statement of compliance with all IFRS);

- 38B-D (additional comparative information);

- 111 (cash flow statement information);

- 134-136 (capital management disclosures)

IAS 7 - ‘Statement of cash flows’.

Paragraphs 30 and 31 of IAS 8 - ‘Accounting policies, changes in accounting estimates and errors’ (requirement for the disclosure of information when an entity has not applied a new IFRS that has been issued but is not yet effective).

Paragraph 17 of IAS 24 - ‘Related party disclosures’ (key management compensation).

The requirements in IAS 24, ‘Related party disclosures’ (to disclose related party transactions entered into between two or more members of a group).

Going concern

The directors have set out their business review for the Company in the Strategic Report on page 2. After making appropriate enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. In coming to their conclusion, the Directors have considered the Group’s profit and cash flow plans for FY25 and FY26 (the going concern forecast period), as well as considering potential downside scenarios and their potential impact on the trading performance and cash flows of the Group.

Prior to the acquisition of the Group by HeadFirst Global Plc, the Group operated with a £132.5m Revolving Credit Facility (‘RCF’) with a £30m accordion facility. On completion of the acquisition, outstanding amounts on the RCF were repaid on 12 April 2024 and the facility terminated. On 3 June 2024, a new 3 year US$400m (£313m on the date the facility was taken out) committed Receivable Purchase Agreement (‘RPA’) facility was entered into by the Group, of which US$362m (£292m) is drawn as at 3 January 2025. The borrowing base under the RPA is determined by the value of the Group’s USD and GBP receivables and is subject to overall Group liquidity levels as well as leverage and interest cover covenants and capped at US$400m, with a floor of $175m. The Group’s going concern projections assess the potential debt requirements against the Group’s US$400m of committed facilities and against the key covenant ratios over the period to the end of FY26.

The new RPA borrowing facilities are subject to Accelerated Collection Payment Event (ACPE) and Master Servicer Termination Event (MSTE) covenants that are measured monthly. The ACPE covenants are net debt to EBITDA (leverage) of a maximum of 7.0x until May 2025, 6.75x for June and July 2025 and 6.0x thereafter and interest cover of a minimum of 1.5x over the entire length of the facility. The MSTE provides higher covenant headroom with leverage at 7.0x EBITDA until August 2025 and 6.5x thereafter and Interest cover at 1.7x. The Group liquidity basis must be maintained at a minimum of £30m under the ACPE covenant and £20m under the MSTE covenant, which is measured weekly. All covenants are forecast to be met throughout the going concern forecast period.

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025 (continued)

2

Accounting policies (continued)

The Group has modelled sensitivities over the going concern forecast period, as well as assessing reverse stress test scenarios using the ACPE covenant thresholds to be conservative. Therefore, further headroom would exist in these scenarios under the MSTE covenant. The most sensitive assumptions and covenants relate to EBITDA and net debt forecasts. The reverse stress testing focused on a reduction in EBITDA, reduced gross profit and cost savings. A fall in gross profit of more than 4.4% for FY25 would cause a breach in the leverage covenant and require mitigating actions to be initiated. The first action would be pre-emptively not recruit forecast incremental headcount if associated revenues are not materialising, then reduce the discretionary annual bonus accrual which is linked to financial performance, followed by reducing other discretionary spend such as marketing, travel and entertainment. These actions could offset at least 12% reduction in gross profit before the leverage covenant was breached, which is deemed highly unlikely in the current trading climate. The Group is currently trading in FY25 in line with profit forecasts.

Similar to other organisations, it remains hard to predict an uncertain macro-economic backdrop which continues through 2025. Consequently, there is a degree of uncertainty in respect of future forecasts. However, the Group has the finance facility committed until June 2027, subject to extension application in June 2026 and a blend of revenue streams covering permanent, contract, interim and recruitment process outsourcing and a diverse range of clients and suppliers across three regions (UK & Europe, North America and APAC). The various stress test scenarios and mitigating actions indicate the Group can continue operation within its banking covenants and existing cash and financing facilities. Importantly, liquidity risk is mitigated to an extent as a proportion of the Group trade creditors are on a ‘paid when paid’ contractual basis; further working capital is typically released in any downturn scenario, in the contract recruitment sector, and the group continues to maintain credit insurance, to mitigate the impact of any unexpected non-payment by key customers. Further details of the financial position of the Group, its cash flows, liquidity position and borrowing facilities are described within the Strategic Report of Impellam Group Limited.

The going concern forecasts set out above assess the Group on a standalone basis, as the RPA facility is provided to the Group entities only, and not the wider HeadFirst group of companies. Within these forecasts, the directors have considered and included, as necessary, any requirements to provide funding to HeadFirst Group, the ultimate Parent Company, or other subsidiaries that do not form part of the Group.

The going concern assessment required careful consideration of the forecasted cash flows over at least the next 12 months, including assumptions on gross profit, cost control, and timing of cash receipts and payments. Given the inherent uncertainty in these forecasts, management exercised significant judgement in:
• Estimating future revenue and gross profit on current market conditions and new business growth
• Assessing the timing and amount of working capital requirements
• Evaluating compliance with borrowing facilities financial covenants
• Considering potential mitigating actions, such as cost reductions such as reducing the discretionary annual bonus which is linked to financial performance, followed by reducing other discretionary spend such as marketing, travel and entertainment

The directors are satisfied that the forecasts are reasonable and support the entity’s ability to meet its obligations as they fall due. The directors are also satisfied that mitigating actions would be sufficient to allow the Group to operate within its covenants in any reasonably likely scenario. The directors are also of the judgement that it has a good relationship with its primary lender and that they would be willing to offer forbearance in the unlikely event that the covenants are breached for such time as it takes to rectify the situation.

Based on the above, the Directors consider it appropriate to continue to adopt the going concern basis in preparing the financial statements.

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025 (continued)

2

Accounting policies (continued)

Exemption from preparing group accounts

The financial statements contain information about Carbon60 Limited as an individual company and do not contain consolidated financial information as the parent of a group. The Company is exempt under section 400 of the Companies Act 2006 from the requirement to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of Impellam Group Limited, a company incorporated in United Kingdom.

Changes in accounting policy

None of the other standards, interpretations and amendments effective for the first time from 6 January 2024 have had a material effect on the financial statements.

Revenue recognition

Recognition

The Company earns revenue from the provision of services relating to provision of staff. This revenue is recognised in the accounting period when the services are rendered at an amount that reflects the consideration to which the entity expects to be entitled in exchange for fulfilling its performance obligations to customers.

The principles in IFRS are applied to revenue recognition criteria using the following 5 step model:
1. Identify the contracts with the customer.
2. Identify the performance obligations in the contract.
3. Determine the transaction price.
4. Allocate the transaction price to the performance obligations in the contract.
5. Recognise revenue when or as the entity satisfies its performance obligations.

Fee arrangements

Below are details of fee arrangements and how these are measured and recognised, for revenue from the provision of services:

Revenue derived from temporary staffing services is recognised and accrued by reference to hours worked (representing the service provided) in accordance with submitted authorised timesheets and pre-agreed charge rates (which include an element of salary and related costs) which are together used to determine the transaction price. This applies both when there is a direct supply as well as when there is supply of a Managed Service to the client, as the timing of performance obligations and the raising of invoices can vary. Timesheets are submitted mainly on a weekly basis, with a limited number being submitted either daily or monthly so any variable aspect of contract assets is limited due to the financial period finishing at the end of a week.

Revenue derived from permanent placements is recognised and accrued when the employment of the individual commences with provision made for potential refunds which can be payable if the placement is terminated within a set period ranging from 14 to 100 days. Revenue recognised from a permanent placement uses a transaction price typically based on a percentage of the candidate’s remuneration package and is recognised when the candidate commences work with the client which is the only performance obligation and point at which control was transferred involved in the supply.

For revenue derived from both temporary staffing and permanent placements payment is due following the completion of the performance obligations and an agreed period of credit dependent on the agreed contract with the client.

All revenue is recognised as the gross amount due, net of applicable sales taxes, rebates and discounts.

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025 (continued)

2

Accounting policies (continued)

Contract assets and receivables

Where goods or services are transferred to the customer before the customer pays consideration, or before payment is due, contract assets are recognised. Contract assets are included in the statement of financial position and represent the right to consideration for products delivered.

Contract receivables (loans and advances) are recognised in the statement of financial position when the Company’s right to consideration becomes unconditional.

Contract assets & receivables (loans and advances) are classified as current or non- current based on the Company’s normal operating cycle and are assessed for impairment at each reporting date.

Impairment of contract related balances

At each reporting date, the Company determines whether or not such assets are impaired by comparing the carrying amount of the asset to the remaining amount of consideration that the Company expects to receive less the costs that relate to providing services under the relevant contract. In determining the estimated amount of consideration, the Company uses the same principles as it does to determine the contract transaction price, except that any constraints used to reduce the transaction price will be removed for the impairment test.

Where the relevant contracts or specific performance obligations are demonstrating marginal profitability or other indicators of impairment, judgement is required in ascertaining whether or not the future economic benefits from these contracts are sufficient to recover these assets. In performing this impairment assessment, management is required to make an assessment of the costs to complete the contract. The ability to accurately forecast such costs involves estimates around cost savings to be achieved over time, anticipated profitability of the contract, as well as future performance against any contract-specific KPIs that could trigger variable consideration, or service credits. Where a contract is anticipated to make a loss, these judgements are also relevant in determining whether or not an onerous contract provision is required and how this is to be measured.

Finance income and costs policy

Interest payable and similar charges include interest payable in profit or loss using the effective interest method. Other interest receivable and similar income include interest receivable on funds invested. Interest income and interest payable are recognised in profit or loss as they accrue, using the effective interest method.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025 (continued)

2

Accounting policies (continued)

Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Depreciation is charged to the profit and loss account on a straight-line basis over the estimated useful lives of each part of an item of tangible fixed assets. The estimated useful lives are as follows:

Asset class

Depreciation method and rate

Leasehold improvements

Over the term of the lease

Fixtures and fittings

Between 3 - 10 years

Intangible assets

Intangible assets represent the carrying value of computer software. Carrying value is equal to cost less accumulated amortisation and impairment or, in the case of assets acquired through business combinations, fair value at date of acquisition less accumulated amortisation and impairment.

Computer software is defined as having a finite useful life and the costs are amortised on a straight-line basis over the estimated useful lives of each of the assets, considered to be between three to five years. The expense is taken to the income statement through the “depreciation and amortisation” line within administrative expenses.

All intangible assets are also reviewed for impairment whenever there is an indication that the carrying amount may be impaired. Useful lives are also examined on an annual basis and adjustments, where applicable, are made on a prospective basis.

Investments

Fixed asset investments are stated at cost less provisions for impairment. The carrying value of investments are reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025 (continued)

2

Accounting policies (continued)

Trade receivables

Trade receivables, which have various terms, are non-interest-bearing and are recognised and carried at fair value and subsequently measured at amortised cost, being the original invoice amount less an allowance for uncollectible amounts, credit notes and expected credit losses.

The Impellam Group has entered into an agreement to sell certain of their receivables to a third party to accelerate funding for the Group, which includes the receivables of the Company. Judgement has been exercised over the terms of the agreement on whether or not substantially all the risks and rewards related to the receivable have been transferred. The judgement reached was that substantially all of the risks and rewards have retained. As such, the related receivables have not been derecognised as all of the IFRS 9 derecognition criteria have not been met.

The Company applies the IFRS 9 simplified approach to measuring expected credit losses using a lifetime expected credit loss provision for trade receivables and contract assets. To measure expected credit losses on a collective basis, trade receivables and contract assets are grouped based on similar credit risk and ageing. The contract assets have similar risk characteristics to the trade receivables for similar types of contracts.

The expected loss provision is based on the Company’s expectation of future credit losses over the current receivables balance. These expectations are based upon known issues effecting specific debtors as well as general forward-looking information on factors affecting the Company’s customers as a whole as well as an awareness of the economic conditions in the countries where the Company operates. These risk factors are considered both on initial recognition of the receivable and as part of the ongoing assessment. If there has been a significant increase in the credit risk since the initial recognition then an increased loss provision is recognised.

Amounts owed by related parties

Amounts owed by related parties are assessed for impairment based upon the current financial position and expected future performance of the party to which they relate. Loans to overseas entities incur interest at an arms length rate as determined by a transfer pricing study which is currently 6.77%.

The Company applies the IFRS 9 general approach to measuring expected credit losses. This approach requires an assessment at the initiation of the loan as to the risk of default, and a further assessment when the credit risk profile of the loans change. IFRS 9 applies a 3 stage model that is applied when calculating the expected credit losses:
• Stage 1 is defined as having no Significant Increase In Credit Risk (‘SICR’) – a 12 month expected credit loss is recognised at this point.
• Stage 2 is defined as having a SICR – a lifetime expected credit loss is recognised at this point.
• Stage 3 is defined as being credit impaired – a lifetime expected credit loss is recognised at this point.

There is no material impact to these assessments by the interest charged on some loans.

The Company defines the following:
• Definition of a default – A loan is considered to be in default when there is evidence that the borrower is in significant financial difficulty such that it will have insufficient assets to repay the loan on demand.
• SICR assessment – The risk that the borrower will default on an on-demand loan depends on whether the party has sufficient cash or other assets to repay the loan immediately (meaning that the risk of default is very low and the loan is in Stage 1); or does not have sufficient cash or other assets to repay the loan immediately (meaning that the risk of default is higher, and the loan could be in Stage 2 or Stage 3).
• Credit impaired indicators - A loan is considered to be credit impaired if it meets the definition of a defaulted loan.

The Company performs this assessment qualitatively by reference to the borrower’s immediate cash flow and asset position.

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025 (continued)

2

Accounting policies (continued)

Trade payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.

Trade payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) 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.

Provisions are measured at the directors’ best estimate of the expenditure required to settle the obligation at the reporting date and are discounted to present value where the effect is material.

Leases

Definition

All leases are accounted for by recognising a right-of-use asset and a lease liability except for leases of low-value assets and leases with an expected full term of 12 months or less.

Lease liabilities are measured at the present value of the unpaid contractual payments over the expected lease term, with the discount rate determined by reference to the rate inherent in the lease unless (as is typically the case) this is not readily determinable, in which case the Company’s incremental borrowing rate on commencement of the lease is used.

Initial recognition and measurement

On initial recognition, the carrying value of the lease liability also includes amounts expected to be payable under any residual value guarantee; the exercise price of any purchase option granted in favour of the Company if it is reasonably certain to exercise that option; and any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of the termination option being exercised.

Right-of-use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for lease payments made at or before commencement of the lease, initial direct costs incurred and for the amount of any provision recognised where the Company is contractually required to dismantle, remove or restore the leased asset.

Subsequent measurement

Subsequent to initial measurement, lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset if this is judged to be shorter than the lease term.

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025 (continued)

2

Accounting policies (continued)

Lease modifications

When the Company revises its estimate of the term of any lease, it adjusts the carrying amount of the lease liability to reflect the payments to make over the revised term, which are discounted at a revised discount rate that is implicit in the lease for the remainder of the lease term. The carrying value of lease liabilities is similarly revised if any variable element of future lease payments dependent on a rate or index is revised. In both cases, an equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being amortised over the remaining lease term.

When the Company renegotiates the contractual terms of a lease with the lessor, the accounting depends on the nature of the modification. If the renegotiation results in one or more additional assets being leased for an amount similar to the standalone price for the additional rights-of-use obtained, the modification is accounted for as a separate lease in accordance with the above policy. In all other cases where the renegotiation increases the scope of the lease (whether that is an extension to the lease term, or one or more additional assets being leased), the lease liability is remeasured using the discount rate applicable on the modification date, with the right-of-use asset being adjusted by the same amount. If the renegotiation results in a decrease in the scope of the lease, both the carrying amount of the lease liability and right-of-use asset are reduced by the same proportion to reflect the partial or full termination of the lease with any difference recognised in profit or loss. The lease liability is then further adjusted to ensure the carrying amount reflects the amount of the renegotiated payments over the renegotiated term, with the modified lease payments discounted at the rate applicable on the modification date. The right-of use asset is adjusted by the same amount.

Right-of-use assets are reviewed regularly to ensure that the useful economic life of the asset is still appropriate based on the usage of the asset. Where the asset has reduced in value the Company considers the situation on an asset-by-asset basis and either treats the reduction as an acceleration of depreciation or as an impairment under IAS 36 Impairment of Assets. An acceleration of depreciation occurs in those cases where there is no opportunity or intention to utilise the asset before the end of the lease. An impairment is recognised in those few cases where the current value-in-use of the asset is significantly less than the carrying amount and there is no intention or opportunity known of that mitigates this impairment.

For contracts that both convey a right to the Company to use an identified asset and obtain substantially all the economic benefits from the asset and require services to be provided to the Company by the lessor, the Company has elected to account for the entire contract as a lease.

Short term and low value leases

The Company has made an accounting policy election, by class of underlying asset, not to recognise lease assets and lease liabilities for leases with a lease term of 12 months or less (i.e., short-term leases).

The Company has made an accounting policy election on a lease-by-lease basis, not to recognise lease assets on leases for which the underlying asset is less the £5,000 (i.e., low value).

Lease payments on short term and low value leases are accounted for on a straight line basis over the term of the lease or other systematic basis if considered more appropriate. Short term and low value lease payments are included in operating expenses in the income statements.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025 (continued)

2

Accounting policies (continued)

Defined contribution pension obligation

The Company operates a defined contribution pension scheme. Contributions are recognised in the profit and loss account in the period in which they become payable in accordance with the rules of the scheme.

Financial instruments

Initial recognition

Financial assets and financial liabilities comprise all assets and liabilities reflected in the balance sheet, although excluding tangible assets, investments, intangible assets, deferred tax assets and prepayments.

Classification and measurement

Financial instruments are classified at inception into one of the following categories, which then determine the subsequent measurement methodology:

Financial assets are classified into one of the following three categories:
• financial assets at amortised cost;
• financial assets at fair value through other comprehensive income (FVTOCI); or
• financial assets at fair value through the profit or loss (FVTPL).

Financial liabilities are classified into one of the following two categories:
• financial liabilities at amortised cost; or
• financial liabilities at fair value through the profit or loss (FVTPL).

The Company’s accounting policy for each category is as follows:

Financial assets at amortised cost

These assets arise principally from the provision of services to customers (for example trade debtors and accrued income), but also incorporate other types of financial assets where the objective is to hold these assets in order to collect contractual cash flows and the contractual cash flows are solely payments of principal and interest (for example receivables from related parties and other receivables). They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment.

Impairment provisions for current and non-current trade debtors are recognised based on the simplified approach within IFRS 9 using a provision matrix in the determination of the lifetime expected credit losses. During this process the probability of the non-payment of the trade debtors is assessed. This probability is then multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss for the trade debtors. For trade debtors, which are reported net, such provisions are recorded in a separate provision account with the loss being recognised within cost of sales in the statement of comprehensive income. On confirmation that the trade debtor will not be collectable, the gross carrying value of the asset is written off against the associated provision.

Impairment provisions for receivables from related parties and loans to related parties are recognised based on a forward-looking expected credit loss model. The methodology used to determine the amount of the provision is based on whether there has been a significant increase in credit risk since initial recognition of the financial asset. For those where the credit risk has not increased significantly since initial recognition of the financial asset, twelve month expected credit losses along with gross interest income are recognised. For those for which credit risk has increased significantly, lifetime expected credit losses along with the gross interest income are recognised. For those that are determined to be credit impaired, lifetime expected credit losses along with interest income on a net basis are recognised. From time to time, the Company elects to renegotiate the terms of trade debtors due from customers with which it has previously had a good trading history. Such renegotiations will lead to changes in the timing of payments rather than changes to the amounts owed and, in consequence, the new expected cash flows are discounted at the original effective interest rate and any resulting difference to the carrying value is recognised in the statement of comprehensive income (operating profit).

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025 (continued)

2

Accounting policies (continued)

Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI only if it meets both of the following conditions and is not designated as at FVTPL:
• the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
• the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

The Company does not have any such assets nor does it voluntarily classify any financial assets as being at FVTOCI.

Financial assets at fair value through the profit or loss (FVTPL)

The Company does not have any assets held for trading nor does it voluntarily classify any financial assets as being at fair value through profit or loss.

Financial liabilities at amortised cost

The Company classifies its financial liabilities into one of two categories, depending on the purpose for which the liability was acquired. The Company does not have any liabilities held for trading nor does it voluntarily classify any financial liabilities as being at fair value through profit or loss. The Company’s accounting policy for each category is as follows:
• Trade creditors and other short-term monetary liabilities, which are initially recognised at fair value and are subsequently carried at amortised cost using the effective interest method.

Financial liabilities at fair value through the profit or loss

The Company does not have any liabilities held for trading nor does it voluntarily classify any financial liabilities as being at fair value through profit or loss.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously.

3

Critical accounting judgements and key sources of estimation uncertainty

The Company makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions.

The estimates that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Receivables purchase arrangements
The Impellam Group has entered into an agreement to sell certain of their receivables to a third party to accelerate funding for the Group, which includes the receivables of the Company. Judgement has been exercised over the terms of the agreement on whether or not substantially all the risks and rewards related to the receivable have been transferred which could require the de-recognition of the receivables. The judgement reached was that, given the specific facts around the structure of the transaction, that substantially all of the risks and rewards have retained. As such, the related receivables have not been derecognised as all of the IFRS 9 derecognition criteria have not been met.

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025 (continued)

3

Critical accounting judgements and key sources of estimation uncertainty (continued)

Accrued income
Revenue is accrued (known as accrued income) for contracts which are valid in the period, but where no timesheet has been received or approved, and therefore billing and payments to contractors have not taken place. The value of unsubmitted/unapproved timesheets for each individual contractor is system generated and takes into account the number of hours worked by each contractor and their relevant bill rate. The costs related to this income are accrued at the same time.

Deferred revenue
Revenue is deferred for contracts where amounts are invoiced based on an agreed payment plan, but the milestones for recognition of the revenue have not been reached. The key estimation uncertainty arises from determining the progress of the relative milestones and whether they have been achieved in the relevant period. There is also significant uncertainty over the recoverability of deferred income which involves estimation of the complete contract value and whether there has been any changes in this value which could impact the value of deferred income held at the year end.

Ageing of receivables from related parties
The Company has made various judgements on the receivables from Impellam Group Limited and fellow subsidiaries of the Impellam Group. The terms of these balances all state that they are due on demand but the Company has determined that there are some balances which, due either to their size or the lack of liquid assets in the debtor company, are highly unlikely to be repaid within the next twelve months.

4

Turnover

The analysis of the Company's turnover for the period by class of business is as follows:

52 weeks
3 January
2025
£ 000

53 weeks
5 January
2024
£ 000

Temporary placements

118,990

105,157

Permanent placements

1,399

1,797

120,389

106,954

The analysis of the Company's turnover for the period by market is as follows:

52 weeks
3 January
2025
£ 000

53 weeks
5 January
2024
£ 000

UK

119,920

105,664

Europe

362

1,261

Rest of world

107

29

120,389

106,954

5

Other gains and losses

The analysis of the Company's other gains and losses for the period is as follows:

52 weeks
3 January
2025
£ 000

53 weeks
5 January
2024
£ 000

Gain on disposal of right of use assets

-

58

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025 (continued)

6

Operating profit

Arrived at after charging/(crediting)

52 weeks
3 January
2025
£ 000

53 weeks
5 January
2024
£ 000

Depreciation expense

108

129

Depreciation on right of use assets

89

74

Amortisation expense

3

8

Foreign exchange losses

27

12

Operating lease expense - property

16

82

Operating lease expense - plant and machinery

27

2

Profit on disposal of right of use assets

-

(58)

Operating lease expenses above include £16,000 (5 January 2024: £82,000) relating to short term leases and £27,000 (5 January 2024: £2,000) relating to leases of low value items.

7

Auditor's remuneration

52 weeks
3 January
2025
£ 000

53 weeks
5 January
2024
£ 000

Audit of the financial statements

29

30

8

Interest receivable and similar income

52 weeks
3 January
2025
£ 000

53 weeks
5 January
2024
£ 000

Dividend income

458

447

Interest receivable from group undertakings

41

-

Other finance income

-

4

499

451

9

Interest payable and similar expenses

52 weeks
3 January
2025
£ 000

53 weeks
5 January
2024
£ 000

Interest paid to group undertakings

26

-

Other finance costs

9

6

Interest expense on leases

14

5

49

11

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025 (continued)

10

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

52 weeks
3 January
2025
£ 000

53 weeks
5 January
2024
£ 000

Wages and salaries

5,301

5,607

Social security costs

558

596

Pension costs, defined contribution scheme

163

152

Other employee expense

11

10

6,033

6,365

The average number of persons employed by the Company (including directors) during the period, analysed by category was as follows:

52 weeks
3 January
2025
No.

53 weeks
5 January
2024
No.

Administration and support

2

2

Sales

104

103

106

105

11

Directors' remuneration

The emoluments of the directors are paid by Impellam Group Limited. The emoluments attributable to the services in relation to this Company are £15,000 (5 January 2024: £12,000).

12

Income tax

Tax charged in the profit and loss account

52 weeks
3 January
2025
£ 000

53 weeks
5 January
2024
£ 000

Current taxation

UK corporation tax

-

1,864

Group relief payable

2,015

-

UK corporation tax adjustment to prior periods

54

(7)

2,069

1,857

Deferred taxation

Arising from origination and reversal of temporary differences

33

(2)

Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods

(32)

(8)

Total deferred taxation

1

(10)

Tax expense in the profit and loss account

2,070

1,847

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025 (continued)

12

Income tax (continued)

The main rate of corporation tax increased from 19% to 25% with effect from 1 April 2023. As the Company’s prior year accounting period ended 5 January 2024 straddled 1 April 2023, a blended rate of 23.52% was used to calculate the prior year tax charge. The rate of 25% has been used for the current period. The tax on profit for the period is higher than the standard rate of corporation tax in the UK (5 January 2024: higher than the standard rate of corporation tax in the UK) of 25% (5 January 2024: 23.52%).

The differences are reconciled below:

52 weeks
3 January
2025
£ 000

53 weeks
5 January
2024
£ 000

Profit before tax

6,697

6,497

Corporation tax at standard rate

1,674

1,528

Increase/(decrease) in current tax from adjustment for prior periods

54

(7)

Increase from effect of expenses not deductible in determining taxable profit (tax loss)

16

26

Increase from transfer pricing adjustments

472

413

Deferred tax credit from unrecognised temporary difference from a prior period

(32)

(8)

Decrease from effect of dividend income

(114)

(105)

Total tax charge

2,070

1,847


UK legislation requires, in broad terms, that most transactions between connected parties be at an arm's length price for tax purposes (commonly known as 'transfer pricing'). As a result, this Company must make an adjustment for deemed net interest on UK-UK intercompany balances that has not been recognised in the financial statements. The Government’s Corporate Tax Roadmap, published at the 2024 Autumn Budget, confirmed the Government’s commitment to launch, in Spring 2025, a second-round consultation on several reforms related to transfer pricing including the potential removal of UK-UK transfer pricing, which will remove the requirement to make an adjustment for deemed net interest on UK-UK intercompany balances by the Company.

13

Intangible assets

Software
£ 000

Total
£ 000

Cost or valuation

At 6 January 2024

45

45

At 3 January 2025

45

45

Amortisation

At 6 January 2024

42

42

Amortisation charge

3

3

At 3 January 2025

45

45

Carrying amount

At 3 January 2025

-

-

At 5 January 2024

3

3

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025 (continued)

14

Tangible assets

Leasehold improvements
£ 000

Fixtures and fittings
£ 000

Total
£ 000

Cost or valuation

At 6 January 2024

72

279

351

Additions

118

46

164

At 3 January 2025

190

325

515

Depreciation

At 6 January 2024

28

176

204

Charge for the period

35

73

108

At 3 January 2025

63

249

312

Carrying amount

At 3 January 2025

127

76

203

At 5 January 2024

44

103

147

15

Right of use assets

Property
£ 000

Total
£ 000

Cost or valuation

At 6 January 2024

423

423

Additions

445

445

At 3 January 2025

868

868

Depreciation

At 6 January 2024

364

364

Charge for the period

89

89

At 3 January 2025

453

453

Carrying amount

At 3 January 2025

415

415

At 5 January 2024

59

59

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025 (continued)

16

Investments

Subsidiaries

£ 000

Cost or valuation

At 6 January 2024

39

At 3 January 2025

39

Provision

At 6 January 2024

-

At 3 January 2025

-

Carrying amount

At 3 January 2025

39

At 5 January 2024

39

Details of the subsidiaries as at 3 January 2025 are as follows:

Name of subsidiary
 

Principal activity
 

Registered office
 

Holding
 

Proportion of ownership interest and voting rights held
3 January
2025

5 January 2024

Impellam GmbH*

Employment services

Neherstrasse 1
81675 Munich

Germany

Ordinary

100%

100%

Carbon 60 AG*

Employment services

Martin-Disteli-Strasse 9
4600 Olten

Switzerland

Ordinary

100%

100%

* indicates direct investment of the Company

17

Trade and other receivables

Trade and other receivables falling due within one year

3 January
2025
£ 000

5 January
2024
£ 000

Trade receivables

13,275

9,098

Receivables from related parties

2,661

352

Accrued income

3,198

6,529

Prepayments

297

257

Other receivables

291

4

19,722

16,240

Trade and other receivables falling due after more
than one year

3 January
2025
£ 000

5 January
2024
£ 000

Receivables from related parties

59,238

39,249

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025 (continued)

17

Trade and other receivables (continued)

Receivables from related parties are from Impellam Group Limited or fellow subsidiaries in the group and are unsecured and repayable on demand. Within this amount are receivables totalling £642,000 which bear interest at 6.77%. All other receivables from related parties are interest free. Receivables from related parties are also stated after a net of a provision of £631,000 (5 January 2024: £622,000).

Details of non-current trade and other receivables

£59,238,000 (5 January 2024: £39,249,000) of amounts owed by related parties is classified as non-current.

18

Cash at bank and in hand

3 January
2025
£ 000

5 January
2024
£ 000

Cash at bank

1,143

1,479

19

Trade and other payables

3 January
2025
£ 000

5 January
2024
£ 000

Trade payables

4,803

4,323

Accrued expenses

2,555

2,647

Amounts owed to related parties

32,645

15,084

Social security and other taxes

1,342

655

Outstanding defined contribution pension costs

39

33

Other payables

382

410

Current portion of long term lease liabilities

315

34

Deferred income

-

116

42,081

23,302

Amounts owed to related parties are to Impellam Group Limited or fellow subsidiaries in the group and unsecured and repayable on demand. Within this amount are payables totalling £25,000 which bear interest charged at 6.77%. All other payables to related parties are interest free.

20

Leases

During the period the Company accounted for 3 leased properties under IFRS 16 (5 January 2024: 4). Some leases have provisions for early termination (see lease end dates judgments in note 3). The Company also leased 0 vehicle, which have a fixed lease fee over the term (5 January 2024: 1). The weighted average Incremental Borrowing Rate used to calculate the lease liability was 4.35% (5 January 2024: 2.53%).

None of the leases accounted for under IFRS 16 during the period recognised future uplifts in rent.

Leases included in creditors

3 January
2025
£ 000

5 January
2024
£ 000

Current portion of long term lease liabilities

315

34

Long term lease liabilities

65

9

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025 (continued)

20

Leases (continued)

Lease liabilities maturity analysis

A maturity analysis of lease liabilities based on undiscounted gross cash flow is reported in the table below:

3 January
2025
£ 000

5 January
2024
£ 000

Less than one year

103

35

2 years

95

9

3 years

95

-

4 years

95

-

5 years

28

-

Total lease liabilities (undiscounted)

416

44

Within the payments listed above is £36,000 which will be recognised as interest on the lease liability (5 January 2024: £1,000).

Total cash outflows related to leases

Total cash outflows related to leases are presented in the table below:

Payment

3 January
2025
£ 000

5 January
2024
£ 000

Right of use assets

30

62

Interest

10

3

Total cash outflow

40

65

21

Other provisions

Other provisions
£ 000

Total
£ 000

At 6 January 2024

68

68

Additional provisions

77

77

Increase due to passage of time or unwinding of discount

4

4

At 3 January 2025

149

149

Non-current liabilities

149

149

Other provisions relate to property provisions for the full expected cost of dilapidations and have been discounted to a present value using the relevant lease interest rate. Provisions with a carrying value of £38,000 are due within 1 year and provisions with a carrying values of £111,000 are due to be paid within 5 years.

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025 (continued)

22

Deferred tax assets and liabilities

Deferred tax assets and liabilities

3 January 2025

Asset
£ 000

Liability
£ 000

Net deferred tax
£ 000

Accelerated tax depreciation

28

-

28

Other items

28

-

28

56

-

56

Deferred tax movement during the period:

At
6 January 2024
£ 000

Recognised in income
£ 000

At
3 January 2025
£ 000

Accelerated tax depreciation

34

(6)

28

Other items

23

5

28

57

(1)

56

Deferred tax movement during the prior period:

At
31 December 2022
£ 000

Recognised in income
£ 000

At
5 January 2024
£ 000

Accelerated tax depreciation

37

(3)

34

Other items

9

14

23

46

11

57

5 January 2024

Asset
£ 000

Liability
£ 000

Net deferred tax
£ 000

Accelerated tax depreciation

34

-

34

Other items

23

-

23

57

-

57


The directors believe that the deferred tax assets are recoverable against future profits of the Company.

23

Pension and other schemes

The Company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the Company to the scheme and amounted to £163,000 (5 January 2024: £152,000).

Contributions totalling £39,000 (5 January 2024: £33,000) were payable to the scheme at the end of the period and are included in creditors.

 

Carbon60 Limited

Notes to the Financial Statements for the 52 weeks ended 3 January 2025 (continued)

24

Share capital

Allotted, called up and fully paid shares

 

3 January
2025

5 January
2024

 

No. 000

£ 000

No. 000

£ 000

Ordinary of £1 each

17,800

17,800

17,800

17,800

         

25

Reserves

Share Capital
Nominal value of share capital subscribed for.

Profit and loss account
All other net gains and losses and transactions with owners not recognised elsewhere.

26

Related party transactions

The company has taken advantage of the exemptions in FRS 101 Paragraph 8 from disclosing transactions with other wholly owned members of the Group. There are no other related party transactions which are required to be disclosed.

27

Parent and ultimate parent undertaking

The Company's immediate parent is Impellam UK Limited, a company incorporated in England and Wales. The ultimate parent is HeadFirst Global Plc, a company incorporated in England and Wales.At the year end the Company identified IceLake Capital Management BV as the ultimate controlling party by virtue of its role in managing the majority of the shareholdings in the ultimate parent company and having the power to appoint the majority of the Board for the ultimate parent entity.

28

Parent of group in whose consolidated financial statements the Company is consolidated

The name of the parent of the largest group in whose consolidated financial statements the Company's financial statements are consolidated is HeadFirst Global Plc. The name of the parent of the smallest group in whose consolidated financial statements the Company's financial statements are consolidated is Impellam Group Limited. The registered office of Headfirst Global Plc and of Impellam Group Limited is First Floor, Mulberry House, Parkland Square, 750 Capability Green, Luton LU1 3LU, United Kingdom. These financial statements are available upon request from Registrar of Companies, Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.