The directors present the strategic report for the year ended 31 March 2025.
The principal activity of the group of companies is in the UK and Ireland involving the management of Purpose-Built Student Accommodation (“PBSA”) via Homes for Students, with Co-living and Build to Rent ("BTR") via our subsidiary VervLife. The Services we provide include sales and marketing agency, customer experience, hard and soft facilities management, project management, principal contractor, compliance assurance, internet services, resident engagement, property insurance, and energy procurement and management associated with the properties we manage. We are focused on optimizing the performance of the assets under management to maximise returns. The accounts have been prepared for the year ended 31 March 2025.
Homes for Students is now the leading third-party operator in the student accommodation sector with around 55,000 purpose-built student accommodation (Third party “PBSA”) beds under management for 2025 under our “Homes for Students,” “Prestige Student Living,” “Essential Student Living,” “Urban Student Life,” “Universal Student Living” and “EVO Student” brands. In addition under our “UK Student Houses” brand we manage 1,400 beds in houses in multiple occupation (HMO). Under our VervLife brand we have over 4,000 operational units.
We have increased our financial strength in respect of increasing year on year underlying profitability, balance sheet as well as beds under management, as well as a healthy pipeline of beds secured as a result of future developments. Key to success is our ability to invest in the business to maintain our market lead, investment in our systems and technology, our retention of staff and our focus on sales, marketing and occupancy as well as compliance and ESG. We are ISO 9001 (Quality Management), ISO 20000-1 (Information Technology Service Management) and ISO 27001 (Information Security Management) certified and we are preparing for ISO 14001 and ISO 45001.
We are also committed to expanding into Europe across the full living sectors via our Orla-Living brand which we launched in April 2025.
We have reshaped our operational teams to become more client portfolio focused and expanded our team capabilities in the areas of cyber security, legal and utilities. At the start of the year Far East Orchard Limited (FEOR) bought out two of our passive shareholders and now own 49% of the company with a plan to increase their shareholding through to 2030.
Cashflows are positive from operating activities and we have driven the business with scale and leveraged on our supply chain strengths. Our financial strength has also allowed us to invest in diversifying the business further into other living sectors, development advisory and tech offering, and into Europe.
The market has become more competitive, against the backdrop of increased regulation and higher client expectations of having inhouse expertise on the Building Safety Act, Fire Compliance, Data Protection, ESG, IT Security and Utilities and Energy Management. While rental growth is expected to start to level out from 2025/26 academic year to be more in line with inflation, energy costs have stabilised. Demand for student accommodation is expected to remain strong with the UK's 18-year-old demographic growth along with the attractiveness of the UK Higher Education sector to students outside of UK.
The Directors recognise that effective performance management is key to client service. Progress is monitored by review of key financial indicators, including but not limited to:
The PBSA side of the business has a strong pipeline and continues to expand, and we have been successful in securing a number of new large corporate clients. We will be putting significant investment in resources and expertise to support these long term hold clients. This would continue to differentiate us from our competitors.
We have a good pipeline of new-build scheme on site for upcoming academic years' opening and have built up our development support team to ensure we service this important part of the business which adds a significant number of beds under management each year to the company. Our interior project management and engineering team also have a good order book in this increasingly important support area for clients who need support with compliance, ESG and refreshing and enhancing older schemes.
We will continue to provide cashflow support to VervLife albeit it is envisaged VervLife will become financially self-sufficient over the next few years and we will also support Orla-Living as it expands into Europe.
Statement by the Directors in accordance with Section 172(1)(a) to (f) of the Companies Act 2006
The likely consequences of any decision in the long term and desirability to maintain a reputation for high standards of business conduct
The Board meets quarterly to maintain the reputation for high standards of business conduct which is at the very forefront of its decision making and ongoing and future strategies. To formulate future strategies, the Board works closely with the Executive and Senior Leadership Teams to ensure that operational excellence, values, attitudes and behaviours the company works hard to achieve can be maintained and how all decision-making will impact on all stakeholders.
The Board approves the annual and long-term business objectives and monitors the effectiveness of the management teams in delivering these objectives through regular oversight and measurement. All significant decisions, strategies and deployment of capital are decided by the Board.
The interest of our employees
At Homes for Students, we recognise that engaged employees are the foundation of our success. Our engagement strategy is designed to foster a supportive, inclusive, and dynamic work environment where every team member feels valued and heard.
Feedback lies at the heart of our approach. We are committed to gathering, reviewing, and acting on employee input regularly. Clear communication loops ensure employees see the outcomes of their feedback, including updates shared during monthly roundups, Operations ‘Need to Know’ briefings, Central Services Lunch & Learn huddles and quarterly Connect-Live town hall events.
Delivered in partnership by our People & Culture Director and Communications Director and their respective teams, our strategy of offering regular pulse surveys, team building events, an intranet platform, our internal progression programme ‘YOUniversity’, and colleague engagement initiatives ensures we can respond at pace to meet the needs of our evolving workforce, adapting our language and updating processes regularly.
Most recently, in December 2024 HFS’s diversity and inclusion programme ‘Together is Better’ won at the Student Accommodation Awards. The programme also won Diversity Initiative of the Year at the 2023 UK Company Culture Awards.
The need to foster business relationships with our key stakeholders including our customers, University partners and suppliers:
Our Customers
Our property teams, supported by the Central Services teams continue to run a variety of student experience events throughout the year with the aim of nurturing a community within the buildings, adding to the overall university experience for our residents, and helping them enjoy their time living with us, and increasing positive social impact.
We utilise social media daily and our property teams are empowered to manage this locally and provide an authentic and engaging view of life in our buildings. Our award winning KLIQ Resident Experience App continues to be a key tool in interacting and engaging with our student community in line with our strategy, and the feedback we garner from residents via KLIQ has allowed us to continue to bespoke and tailor our student experience and improve our students’ satisfaction and wellbeing.
Our approach to Student Experience is to hold showcase events at key times of the year, and to offer a consistent, daily high level of service and a wider overall offering of events and experience that delight our residents, build community and trust, make residents proud to live with us, and lead to high satisfaction.
Our year-round focus on student experience, student satisfaction, social proof and excellent standards have remained critical aspects, and significant time and energy has been spent on this within the properties to ensure we maintain our excellent track record of retention.
We are continuing to see major benefit and improvement in this regard, and we are seeing record customer satisfaction scores and customer retention rates year on year.
Our focus remains on securing 5-star Google and StudentCrowd ratings. We have successfully retained Investor in Students Gold Accreditation for a fourth year, alongside retaining overall Gold Certification from Global Student Living 2025. Individual property certifications have also increased year on year. We continue to survey huge numbers of residents to gain insight into improving service and ways of working, with over 40,000 survey responses received this academic year so far.
The recent Investor in Students accreditation process has led to a new highest ever Net Promoter Score, increasing further from last year’s record NPS of 45.7 by nearly 5 more points to 50.3.
This consistent and improving service delivery and satisfaction is a long-term strategy that is paying dividends for the business, backed up by sector-leading student retention rates year on year.
University Partners
Our Partnerships Team nurture university relationships, increase partnership working with them, renew nominations and referral arrangements, and seek out new business, and as part of our sector engagement activities each year, work closely with our network of contacts built up over many years of collaboration, and lead and support the wider business at a national and localised level.
We have attended numerous outreach events, supporting universities’ teams to highlight some of the issues around student wellbeing such as loneliness, sexual consent, budgeting advice, positive nutrition, and volunteering in the local community.
Our rich data analysis and market intelligence supports university teams with information about digital behaviour, student decision making trends, benchmarking against national averages, and student survey performance, and we have continued to expand this insight and add even more value to our university contacts and partners, through our proprietary Living Data Lab. We have bolstered the Partnerships team with the addition of key roles in data analysis and insights and in the day to day team.
We prospected, negotiated, arranged, and contracted formal commercial agreements with a multitude of Higher Education institutions over the course of the year and secured multi-year deals in some key markets.
Suppliers
We work with a network of local and national suppliers, across the UK and Ireland. Our Central Procurement team work closely with our property teams to ensure delivery of high-quality service from our supplier network; and where possible, leveraging our scale to ensure standardisation of service across our portfolio. All suppliers must evidence their relevant accreditations, qualifications and/or membership of regulatory or professional bodies. We have robust governance in fair selection of suppliers.
Last year, we implemented Delta e-sourcing; an end-to-end, EU-compliant, web-based platform to manage tenders, suppliers and contracts. The roll out of Delta e-sourcing strengthens our governance and selection process; providing a fully traceable communications audit trail and an enhanced evaluation and selection process.
Our tender process, pro-active ‘supplier call’ campaign, and access to Delta e-sourcing supplier search tool, provides us with the opportunity to identify new suppliers and invite them to potentially join our network.
Our teams, centrally and property-based, forge strong relationships with suppliers and regularly monitor performance against a robust set of KPIs
Our impact on the community and the environment
Environmental, Social and Governance (ESG) issues and measures are a crucial part of the HFS business process.
They affect the way we operate and behave as a business and they also inform our sustainability engagement agenda, which is the list of issues that we target to influence our internal and external stakeholders for the better within the areas we can control, particularly with shaping and influencing our student population awareness and behaviours around living more sustainably, through our “Go Greener with Homes for Students” campaign theme.
Significant progress has been made to date and work continues to ensure that the informed decisions taken by the Board, Executive Team and the Senior Leadership Team are quickly and effectively implemented, and now including our new “Green Team” which has been established as a cross-functional group of stakeholders across the business working towards common sustainability aims.
HFS has a specific ESG Policy and Measures document addressing requirements and goals for our business which is underpinned by BCorp accreditation pending.
The need to act fairly between members of the Company
The Board recognises that acting fairly between members is extremely important to ensure strong governance within the business. The Board meetings are attended by nominated directors of both majority and minority shareholders and all decision making is made on a open and transparent basis. All members have an opportunity to express their opinions and views to determine the best possible decision making and provide confidence to the wider stakeholder population.
We have highlighted some key decisions demonstrating how the Board has taken Section 172 matters into account in decision making:
We have successfully achieved ISO certification for the following areas promoting strong governance:
ISO 9001 (Quality Management).
ISO 14001 (Environmental Standard).
ISO 20000-1 (Information Technology Service Management).
ISO 27001 (Information Security Management).
ISO 45001 (Occupational Health & Safety).
We have invested heavily in the capability of this advisory team over the last few years and including inhouse engineering and interior design to enhance our client service, and we have successfully delivered large scale compliance and asset enhancement project works for our clients.
We have continued investing in our award-winning technologies.
We have partnered with Leicester Fire & Rescue Service as our “Primary Fire Authority” to provide us with consultancy and guidance on fire safety matters.
We have continued to implement matters arising under the Building Safety Act in our capacity as a “Responsible Person” and actively support and consult with our clients in their capacity as the “Principle Accountable Person”.
We have established a new strategic intent function to focus on the concept and delivery of “quality” throughout the business to drive continuous improvement at all levels.
We have enhanced our ESG programme by implementing a "Green Team" to work towards our sustainability aims.
We have enhanced our proprietary data and insights provision, to support our clients and partners as well as to improve the business overall.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 March 2025.
The results for the year are set out on page 14.
Ordinary dividends were paid amounting to £1,000,000. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
We maintain rigorous internal communications across multiple platforms, which we present through a diverse array of mediums to guarantee comprehensive access for all employees to news and business updates. In conjunction a range of employee representative forums afford us a complete 360-degree feedback loop, ensuring the quality of our messaging and the effective reception of employee input.
In the current year, we have implemented a transformative adjustment to our approach for gathering structured employee feedback. We have transitioned from conducting an annual employee engagement survey to administering regular pulse surveys based upon six pillars of engagement; onboarding, reward, people development, connections, DEIB and culture with a focus on improving employee Net Promoter Scores (eNPS). By leveraging eNPS data at both the pillar and overall organisational levels, we can identify strengths, address challenges, and implement meaningful actions to enhance the employee experience.
To further enhance our multi-layer communications approach, we've recently added additional 'off-line' events to encourage harder to reach none-desk based colleagues to engage in company news, updates and community or cultural initiatives. 'Lunch & Learn' are in-person huddles designed to share learning, news, expand understanding and engage our teams based on a themed calendar inspired by our values. Plus, our compulsory monthly 'Need to Know' briefings are tactical operationally focused briefings where we channel updates about new procedures, equipment, tech, legislation and training.
The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.
This section of the report sets out the group's report on emissions, energy consumption and energy efficiency activities.
The group operates from leased offices and does not own any investment property. All managed properties are owned by third parties and energy consumption at these properties is not the responsibility of the group to report on.
For its leased offices, the group does not separately purchase gas or electricity, nor is it separately metered. Management have explored whether this can be reasonably estimated, but in the absence of data from the landlord, it is not considered practical to calculate the energy use. Management are taking steps to obtain this data in future.
Therefore, the following sections are limited to the group's Scope 3 emissions, in respect of business travel.
The group has followed the HM Government’s Environmental Reporting Guidelines (2019 edition) and the GHG Reporting Protocol – Corporate Standard. Emissions and energy data were calculated using the 2024 UK Government’s Conversion Factors for Company Reporting, applying the “average car – unknown fuel type” kWh conversion (net CV) with a multiplier of 1.11314. Business mileage was tracked via employee expense records. Office energy consumption could not be separately measured due to lack of metering control; consequently, no Scope 1 or Scope 2 emissions are reported.
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per average number of employees over the financial year.
During the reporting period, the group undertook a range of energy efficiency initiatives to reduce its environmental impact and improve operational sustainability.
These included the implementation of automated power-down settings for IT equipment, the delivery of employee training focused on energy awareness and climate change, and the continued support of hybrid and remote working arrangements to optimise office energy use. The group further enhanced digital efficiency through the adoption of cloud-based technologies.
In relation to employee travel, a cycle-to-work scheme was made available, and carpooling was encouraged via incentives embedded in mileage reimbursement practices. Virtual meetings were promoted as an alternative to travel where appropriate. For leased office premises, the group engaged with landlords to obtain Energy Performance Certificates (EPCs) and relevant energy consumption data, and collaborated with them on broader sustainability objectives.
We have audited the financial statements of Homes for Students Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:
Enquiries with management about any known or suspect instances of non-compliance with laws and regulations and fraud;
Auditing the risk of fraud in revenue recognition through proof in totals and testing a sample of revenue transactions to supporting contracts;
Challenging assumptions and judgements made by management in their significant accounting estimates;
Auditing the risk of management override of controls, including through journals testing and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
Enquiry of staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;
An evaluation of the company's internal control environment; and
Reviewing board minutes and resolutions.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,567,482 (2024 - £2,697,091 profit).
Homes for Students Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Hornbeam House, Hornbeam Park, Harrogate, HG2 8QT.
The group consists of Homes for Students Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Homes for Students Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates. Where subsidiaries are not wholly owned, the total comprehensive income and equity attributable to the non-controlling interests are presented separately.
All financial statements are made up to 31 March 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
The directors have performed a rigorous assessment of going concern, which has included a review of the current liquidity and financial position, and the updated business plan including cashflow forecasts.
At the year end group's net assets were £9.9m, of which £8.1m represented net current assets, and the cash balance was £8.0m.
Therefore at the time of approving the financial statements, the directors have a reasonable expectation that the group and company has adequate resources to continue in operational existence for the foreseeable future, covering a period of at least the next 12 months from the date of approval of the financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Revenue from annual contracts is recognised on a straight line basis over the period to which they relate. Where the contract includes a management fee, this is calculated and invoiced on a monthly basis. Where the contract includes the recharge of expenditure incurred, revenue is recognised in line with the period the expense is incurred.
Project income is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. Revenue is recognised only to the extent of the expenses recognised that are recoverable or the work has been certified.
Mobilisation, consultancy and other fees are recognised over the period in which the service is provided.
Where there is full or partial entitlement to revenue at the year end, based on the above, but the invoices had not been raised, the relevant portion is recognised as accrued income. Conversely where there is no, or only partial, entitlement to revenue at the year end, but the service has been invoiced in advance, the relevant portion of the revenue is included within deferred income.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Current asset investments
Investments are initially measured at cost and subsequently reviewed for impairment. Interest income is recognised on a straight line basis over the term to which it relates.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
At each balance sheet date, management undertake an assessment of the recoverability of trade debtors and amounts owed by group undertakings, based upon their knowledge of the customers, ageing of the balances outstanding and previous write off history. Where necessary, an impairment is recorded as a doubtful debt. The actual level of debt collected may differ from the estimated level of recovery.
All turnover is derived in the UK from the principal activity as outlined on page 1.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 31 March 2025 are as follows:
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The company has two classes of ordinary shares which carry full voting rights and full rights to receive dividends.
Both classes have full rights to distributions, firstly of the issue price of shares held and the balance pro rata on a return of assets on liquidation, capital reduction or otherwise pari passu with the other share class.
The aggregate remuneration paid to key management personnel (including directors) during the period was £994,995 (2024: £875,548).
During the year the company made sales of £659,898 (2024: £18,553,659) and purchases of £Nil (2024: £1,849) to/from entities with significant influence over the company. In addition the company made sales of £116 (2024: £19,356) and purchases of £23,738 (2024: £24,744) to/from other related parties.
Within trade debtors are £189,767 (2024: £1,676,810) and £Nil (2024: £9,954) due from entities with significant influence over the company and other related parties respectively. Within trade creditors are £Nil (2024: £Nil) and £Nil (2024: £16,030) owed to entities with significant influence over the company and other related parties respectively.
During the year, dividends were paid to directors of £360,000 (2024: £360,000).