IRIS Accounts Production v25.1.3.33 13896909 Board of Directors 31.12.24 1.1.24 31.12.24 31.12.24 The principal activity of the company in the period under review was that of on an investment holding company. The principal activity of its subsidiary companies in the period under review was that of financial compensation claims and processing services. true false true true false false false true false Ordinary 0 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh138969092023-12-31138969092024-12-31138969092024-01-012024-12-31138969092022-12-31138969092023-01-012023-12-31138969092023-12-3113896909ns15:EnglandWales2024-01-012024-12-3113896909ns14:PoundSterling2024-01-012024-12-3113896909ns10:Director12024-01-012024-12-3113896909ns10:Consolidated2024-12-3113896909ns10:ConsolidatedGroupCompanyAccounts2024-01-012024-12-3113896909ns10:PrivateLimitedCompanyLtd2024-01-012024-12-3113896909ns10:Consolidatedns10:SmallEntities2024-01-012024-12-3113896909ns10:Consolidatedns10:Audited2024-01-012024-12-3113896909ns10:SmallCompaniesRegimeForDirectorsReport2024-01-012024-12-3113896909ns10:SmallCompaniesRegimeForAccounts2024-01-012024-12-3113896909ns10:Consolidatedns10:SmallCompaniesRegimeForDirectorsReport2024-01-012024-12-3113896909ns10:Consolidatedns10:SmallCompaniesRegimeForAccounts2024-01-012024-12-3113896909ns10:FullAccounts2024-01-012024-12-311389690912024-01-012024-12-3113896909ns10:OrdinaryShareClass12024-01-012024-12-3113896909ns10:Consolidated2024-01-012024-12-3113896909ns10:Director22024-01-012024-12-3113896909ns10:Director32024-01-012024-12-3113896909ns10:Director42024-01-012024-12-3113896909ns10:RegisteredOffice2024-01-012024-12-3113896909ns10:Consolidated2023-01-012023-12-3113896909ns5:CurrentFinancialInstruments2024-12-3113896909ns5:CurrentFinancialInstruments2023-12-3113896909ns5:ShareCapital2024-12-3113896909ns5:ShareCapital2023-12-3113896909ns5:RetainedEarningsAccumulatedLosses2024-12-3113896909ns5:RetainedEarningsAccumulatedLosses2023-12-3113896909ns5:ShareCapital2022-12-3113896909ns5:RetainedEarningsAccumulatedLosses2022-12-3113896909ns5:RetainedEarningsAccumulatedLosses2023-01-012023-12-3113896909ns5:RetainedEarningsAccumulatedLosses2024-01-012024-12-3113896909ns5:IntangibleAssetsOtherThanGoodwill2024-01-012024-12-3113896909ns5:ComputerSoftware2024-01-012024-12-3113896909ns5:CostValuation2023-12-3113896909ns5:WithinOneYearns5:CurrentFinancialInstruments2024-12-3113896909ns5:WithinOneYearns5:CurrentFinancialInstruments2023-12-3113896909ns5:DeferredTaxation2024-01-012024-12-3113896909ns5:DeferredTaxation2024-12-3113896909ns10:OrdinaryShareClass12024-12-31
REGISTERED NUMBER: 13896909 (England and Wales)











Rothley Group Limited

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2024






Rothley Group Limited (Registered number: 13896909)

Contents of the Consolidated Financial Statements
for the Year Ended 31 December 2024










Page

Company Information 1

Report of the Directors 2

Report of the Independent Auditors 4

Consolidated Income Statement 7

Consolidated Other Comprehensive Income 8

Consolidated Balance Sheet 9

Company Balance Sheet 10

Consolidated Statement of Changes in Equity 11

Company Statement of Changes in Equity 12

Notes to the Consolidated Financial Statements 13


Rothley Group Limited

Company Information
for the Year Ended 31 December 2024







DIRECTORS: R Ladak
S Boyd
M S Khadr
C Rutherford





REGISTERED OFFICE: 22 High View Close
Vantage Park
Leicester
Leicestershire
LE4 9LJ





REGISTERED NUMBER: 13896909 (England and Wales)





AUDITORS: TC Group
Statutory Auditor
Sterling House
97 Lichfield Street
Tamworth
Staffordshire
B79 7QF

Rothley Group Limited (Registered number: 13896909)

Report of the Directors
for the Year Ended 31 December 2024


The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS
The directors present their annual report for the year ended 31 December 2024. This report outlines the principal activities, strategic developments, and financial performance of Rothley Group.

Ultimate holding company

Rothley Group Limited (RGL) is the ultimate owner of our group which consists of a penultimate holding vehicle Rothley Holdings Limited (RHL) and its three professional services trading subsidiaries.

Subsidiary trading

Money Redress Limited (MRL) was set up on 17th November 2016 and is a Financial Conduct Authority (FCA) regulated Claims Management Company. MRL's case completions depend on outcomes at the Financial Ombudsman Service, Financial Services Compensation Scheme, and The Pension Ombudsman. These bodies have historically had significant delays in processing cases due to undercapacity, which has in the last year begun to normalise, thus increasing the income realised in MRL to £4,619,141 during the year.

Our success rate on submitted cases remains high at over 85% so we are confident that the number of cases awaiting processing at these bodies, with total cases representing £19,054,962 at fair value in accordance with FRS 102, will generate significant revenue in the years ahead.

Rothley Law Limited (RLL) was set up on 22nd December 2022 and is a Private Client Advisory firm and regulated by the Solicitors Regulation Authority (SRA). Following an acquisition of the Midlands based regional mid-sized Private Client business from Shoosmiths in June 2023, the division has grown from a team of 41 employees including 3 partners to 65 employees including 7 partners. The headcount growth is spread across the divisions of Private Wealth Advisory, Disputed Wills and Trusts and Court of Protection.

RLL traded a full year ending 31 December 2024, and generated income of £5,399,099 with a closing pipeline WIP valuation of £ 3,537,291.

Processing Power Limited (PPL) provides bespoke outsourced claims and administration processing services, on a B2B basis, for other FCA and SRA regulated entities. This business is not a core group activity, but operated on a steady state, profitable basis across the year.

Group results for the year ended 31 December 2024

Our group revenue achieved a record high of £10,345,367 and an operating profit of £2,796,251 for the year ended 31 December 2024 which compares to £4,796,399 revenue and an operating profit of £517,150 for the prior year.

As a result of the Groups funding structure and high cost of borrowing this led to a consolidated profit before tax of £346,501 which compares to a loss of £3,312,252 for the prior year, and a closing net asset position of £4,124,326

Looking ahead

Since the year end the group has continued to expand its regulated claims workstreams through the introduction of new regulated compensation products, and has made further investment into regional expansion, development and growth of the RLL teams, and their client base. Against this backdrop our year end group pipeline of £24,219,608, is reasonably expected to convert into substantial and profitable cash flows in the near to medium term.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

R Ladak
S Boyd
M S Khadr
C Rutherford


Rothley Group Limited (Registered number: 13896909)

Report of the Directors
for the Year Ended 31 December 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:





C Rutherford - Director


5 August 2025

Report of the Independent Auditors to the Members of
Rothley Group Limited


Opinion
We have audited the financial statements of Rothley Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2024 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Directors has been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Rothley Group Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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; or
- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Group Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our
procedures are capable of detecting irregularities, including fraud, is detailed below.

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

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

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the Group and its management.

Report of the Independent Auditors to the Members of
Rothley Group Limited


Our approach was as follows:

- we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
- we considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;
- we considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;
- we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit, also all areas where fraud might occur in the financial statements and how;
- we considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors these programmes and controls;
- we considered how the directors and management respond to risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- we performed detailed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Darren Barlow FCCA (Senior Statutory Auditor)
for and on behalf of TC Group
Statutory Auditor
Sterling House
97 Lichfield Street
Tamworth
Staffordshire
B79 7QF

5 August 2025

Rothley Group Limited (Registered number: 13896909)

Consolidated Income Statement
for the Year Ended 31 December 2024

2024 2023
Notes £    £   

TURNOVER 10,345,367 4,796,399

Cost of sales 3,922,469 2,082,595
GROSS PROFIT 6,422,898 2,713,804

Administrative expenses 3,626,646 2,196,654
OPERATING PROFIT 4 2,796,252 517,150

Financial restructuring and acquisition costs 5 - 671,772
2,796,252 (154,622 )

Interest receivable and similar income 690,240 183,206
3,486,492 28,584

Interest payable and similar expenses 3,139,990 3,340,836
PROFIT/(LOSS) BEFORE TAXATION 346,502 (3,312,252 )

Tax on profit/(loss) (72,642 ) (530,168 )
PROFIT/(LOSS) FOR THE FINANCIAL YEAR 419,144 (2,782,084 )
Profit/(loss) attributable to:
Owners of the parent 419,557 (2,780,638 )
Non-controlling interests (413 ) (1,446 )
419,144 (2,782,084 )

Rothley Group Limited (Registered number: 13896909)

Consolidated Other Comprehensive Income
for the Year Ended 31 December 2024

2024 2023
Notes £    £   

PROFIT/(LOSS) FOR THE YEAR 419,144 (2,782,084 )


OTHER COMPREHENSIVE INCOME
Changes in fair value of accrued income (1,731,256 ) 1,437,532
Income tax relating to other comprehensive
income

458,555

(424,948

)
OTHER COMPREHENSIVE INCOME FOR THE
YEAR, NET OF INCOME TAX

(1,272,701

)

1,012,584
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

(853,557

)

(1,769,500

)

Total comprehensive income attributable to:
Owners of the parent (853,144 ) (1,768,054 )
Non-controlling interests (413 ) (1,446 )
(853,557 ) (1,769,500 )

Rothley Group Limited (Registered number: 13896909)

Consolidated Balance Sheet
31 December 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Intangible assets 7 12,280 5,500
Tangible assets 8 86,100 95,747
Investments 9 - -
98,380 101,247

CURRENT ASSETS
Debtors 10 24,712,460 25,244,120
Cash at bank 1,550,572 2,452,384
26,263,032 27,696,504
CREDITORS
Amounts falling due within one year 11 6,298,934 3,646,131
NET CURRENT ASSETS 19,964,098 24,050,373
TOTAL ASSETS LESS CURRENT
LIABILITIES

20,062,478

24,151,620

CREDITORS
Amounts falling due after more than one year 12 (11,558,165 ) (14,308,702 )

PROVISIONS FOR LIABILITIES 13 (4,379,986 ) (4,865,032 )
NET ASSETS 4,124,327 4,977,886

CAPITAL AND RESERVES
Called up share capital 14 1,000 1,000
Retained earnings 4,120,291 4,973,435
SHAREHOLDERS' FUNDS 4,121,291 4,974,435

NON-CONTROLLING INTERESTS 15 3,036 3,451
TOTAL EQUITY 4,124,327 4,977,886

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

The financial statements were approved by the Board of Directors and authorised for issue on 5 August 2025 and were signed on its behalf by:





C Rutherford - Director


Rothley Group Limited (Registered number: 13896909)

Company Balance Sheet
31 December 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Intangible assets 7 - -
Tangible assets 8 - -
Investments 9 79,168 79,168
79,168 79,168

CURRENT ASSETS
Debtors 10 140,941 142,655

CREDITORS
Amounts falling due within one year 11 69,480 44,291
NET CURRENT ASSETS 71,461 98,364
TOTAL ASSETS LESS CURRENT
LIABILITIES

150,629

177,532

CAPITAL AND RESERVES
Called up share capital 14 1,000 1,000
Retained earnings 149,629 176,532
SHAREHOLDERS' FUNDS 150,629 177,532

Company's (loss)/profit for the financial year (26,903 ) 121,608

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

The financial statements were approved by the Board of Directors and authorised for issue on 5 August 2025 and were signed on its behalf by:





C Rutherford - Director


Rothley Group Limited (Registered number: 13896909)

Consolidated Statement of Changes in Equity
for the Year Ended 31 December 2024

Called up
share Retained Non-controlling Total
capital earnings Total interests equity
£    £    £    £    £   
Balance at 1 January 2023 1,000 6,741,489 6,742,489 4,897 6,747,386

Changes in equity
Total comprehensive income - (1,768,054 ) (1,768,054 ) (1,446 ) (1,769,500 )
Balance at 31 December 2023 1,000 4,973,435 4,974,435 3,451 4,977,886

Changes in equity
Total comprehensive income - (853,144 ) (853,144 ) (413 ) (853,557 )
Balance at 31 December 2024 1,000 4,120,291 4,121,291 3,038 4,124,329

Rothley Group Limited (Registered number: 13896909)

Company Statement of Changes in Equity
for the Year Ended 31 December 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2023 1,000 54,924 55,924

Changes in equity
Total comprehensive income - 121,608 121,608
Balance at 31 December 2023 1,000 176,532 177,532

Changes in equity
Total comprehensive income - (26,903 ) (26,903 )
Balance at 31 December 2024 1,000 149,629 150,629

Rothley Group Limited (Registered number: 13896909)

Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2024


1. STATUTORY INFORMATION

Rothley Group Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets
Tangible fixed 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.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is credited or charged to profit or loss.

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

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.

Depreciation is charged to write off the cost of assets over their estimated useful lives, as follows:

Office equipment3 years (straight line)
Furniture & fixtures3 years (straight line)
Computer equipment3 years (straight line)

Residual values, estimated useful lives and depreciation rates and methods are reviewed, and adjusted prospectively if required, if there is an indication of a significant change since the last reporting date.

Rothley Group Limited (Registered number: 13896909)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024


2. ACCOUNTING POLICIES - continued

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

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

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

Financial assets
Financial assets are recognised when the company becomes party to the contracts that gives rise to them and are classified as loans or borrowings, receivable, payables, financial instruments fair valued through profit and loss or available for sale financial assets as appropriate. The company determines the classification of its financial assets and liabilities at initial recognition and, where allowed and appropriate, re-evaluate this designation at each financial year end.

Receivables relating to future fee income are classified as Available for Sale. Such receivables are carried at fair value, and the company has elected to recognise changes in the fair value recognised through Other
Comprehensive Income as allowed under FRS 102 and will recycle gains to the P&L when they become realised. The associated commission and fees will be classed as Other Financial Liabilities (financial liability) and are carried at amortised cost with movements being recognised through the Profit and Loss account.


The fair value of receivables for future fee income and the related payables is calculated using a discounted cash flow model. A risk adjusted interest rate relevant to the risk profile of the company is utilised for discounting. The cash flows for the model are estimated considering the following key assumptions:

- expected fee per claim,
- number of active claims,
- expected claim success rate, and
- expected timing of receipt.

Financial liabilities
Financial liabilities are recognised when the company becomes party to the contracts that give rise to them and are classified as loans or borrowings, receivables, payables, financial instruments fair valued through profit and loss or available for sale financial asset as appropriate. The company determines the classification of its financial assets and liabilities at initial recognition and, where allowed and appropriate, re-evaluate this designation at each financial year end.

When financial liabilities are recognised initially, they are measured at fair value, being the transaction price plus and directly attributable transaction costs.

Borrowings
Interest-bearing borrowings are initially recorded at fair value and subsequently measured at amortised cost.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.


Rothley Group Limited (Registered number: 13896909)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024


2. ACCOUNTING POLICIES - continued
Taxation
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit or loss, unless the charge is attributable to an item of income or expense recognised as other comprehensive income or to an item recognised directly in equity, in which case the tax is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is relaised or the liability is settles based on tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax liabilities are recognised in respect of all timing differences that exist at the reporting date. Timing differences are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in different periods from their recognition n the financial statements.

Deferred tax assets are recognised only to the extent that it is probable that they will be recovered by the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
In preparing the financial statements of the Group, transactions in currencies other than the functional currency of sterling are recognised at the spot rate at the dates of the transactions, or at an average rate where this rate approximates the actual rate at the date of the transaction.

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

Pension costs and other post-retirement benefits
Contributions to the Group's defined contribution pension scheme are charged to profit or loss in the year in which they become payable. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

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

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.

Operating leases and lease incentives
Leases where substantially all risks and rewards incidental to ownership are retained by the lessors are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessors) are recognised in profit or loss on a straight-line basis over the period of the lease.

Incentives received to enter into an operating lease are credited to the profit and loss account, to reduce the lease expense, on a straight-line basis over the period of the lease.

Rothley Group Limited (Registered number: 13896909)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024


3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 85 (2023 - 50 ) .

The average number of employees by undertakings that were proportionately consolidated during the year was NIL (2023 - NIL).

4. OPERATING PROFIT

The operating profit is stated after charging:

2024 2023
£    £   
Depreciation - owned assets 55,376 39,970
Computer software amortisation 1,116 -

5. EXCEPTIONAL ITEMS
2024 2023
£    £   
Financial restructuring and acquisition costs - (671,772 )

6. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


7. INTANGIBLE FIXED ASSETS

Group
Other
intangible
assets
£   
COST
At 1 January 2024 5,500
Additions 7,896
At 31 December 2024 13,396
AMORTISATION
Charge for year 1,116
At 31 December 2024 1,116
NET BOOK VALUE
At 31 December 2024 12,280
At 31 December 2023 5,500

Rothley Group Limited (Registered number: 13896909)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024


8. TANGIBLE FIXED ASSETS

Group
Plant and
machinery
etc
£   
COST
At 1 January 2024 158,132
Additions 45,729
At 31 December 2024 203,861
DEPRECIATION
At 1 January 2024 62,385
Charge for year 55,376
At 31 December 2024 117,761
NET BOOK VALUE
At 31 December 2024 86,100
At 31 December 2023 95,747

9. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2024
and 31 December 2024 79,168
NET BOOK VALUE
At 31 December 2024 79,168
At 31 December 2023 79,168


The Company directly owns 99.95% of the ordinary share capital of Rothley Holdings Limited, a company registered in England and Wales with the registered office of Vantage Park, 22 High View Close, Leicester, LE4 9LJ. The principal activity of Rothley Holdings limited is that of an investment holding company with its subsidiaries carrying out financial compensation claims and processing services.

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Trade debtors 2,464,132 1,155,570 - -
Amounts owed by group undertakings - - 113,703 132,539
Other debtors 22,248,328 24,088,550 27,238 10,116
24,712,460 25,244,120 140,941 142,655

Rothley Group Limited (Registered number: 13896909)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024


11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Bank loans and overdrafts 4,868,562 2,619,225 - -
Trade creditors 286,446 264,422 - 409
Amounts owed to group undertakings - - 50,558 38,882
Taxation and social security 775,235 323,901 - -
Other creditors 368,691 438,583 18,922 5,000
6,298,934 3,646,131 69,480 44,291

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group
2024 2023
£    £   
Bank loans 11,558,163 14,308,700
Other creditors 2 2
11,558,165 14,308,702

13. PROVISIONS FOR LIABILITIES

Group
2024 2023
£    £   
Deferred tax 4,379,986 4,865,032

Group
Deferred
tax
£   
Balance at 1 January 2024 4,865,032
Credit to Income Statement during year (26,492 )
Other comprehensive income (458,554 )
Balance at 31 December 2024 4,379,986

Company
Deferred
tax
£   
Credit to Income Statement during year (8,968 )
Balance at 31 December 2024 (8,968 )

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
1,000 Ordinary £1 1,000 1,000

Rothley Group Limited (Registered number: 13896909)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024


15. NON-CONTROLLING INTERESTS

On 31 March 2022 the Company acquired control of Rothley Holdings Limited through the purchase of 99.95% of the share capital. The non-controlling interest values disclosed in the financial statements relate to the remaining 0.05%.