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Registered number: 07805942
















SMITHCORP LIMITED




ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024


































img325d.png


SMITHCORP LIMITED

 
COMPANY INFORMATION


DIRECTORS
Mr J A H Blackiston 
Mr A M Dodge 
Mr J A Hodkinson 
Mr A J Smith 
Mr D N Smith 
Mr D R Smith 




COMPANY SECRETARY
Mr A M Dodge



REGISTERED NUMBER
07805942



REGISTERED OFFICE
Bristol North Baths
Gloucester Road

Bishopston

Bristol

BS7 8BN




INDEPENDENT AUDITORS
Bishop Fleming LLP
Chartered Accountants & Statutory Auditors

Chy Nyverow

Newham Road

Truro

Cornwall

TR1 2DP






SMITHCORP LIMITED


CONTENTS



Page
Group strategic report
 
1 - 3
Directors' report
 
4 - 5
Directors' responsibilities statement
 
6
Independent auditors' report
 
7 - 10
Consolidated statement of comprehensive income
 
11
Consolidated statement of financial position
 
12
Company statement of financial position
 
13
Consolidated statement of changes in equity
 
14
Company statement of changes in equity
 
15
Consolidated statement of cash flows
 
16
Consolidated analysis of net debt
 
17
Notes to the financial statements
 
18 - 35



SMITHCORP LIMITED

 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

BUSINESS REVIEW
 
SmithCorp Limited is a holding company for a group of specialist recruitment businesses. We are leading UK providers of temporary, contract and permanent staff to the education sector, providing teaching and support staff across the Further and Compulsory Education sectors and supplying a wide portfolio of commercial training companies. We have offices in Bristol, Truro, Exeter, Middlesborough and London.
The results for the group show a pre-tax profit of £1,228,661 (2023: £1,326,223) for the year and sales of £39,281,324 (2023: £36,492,005).

Page 1


SMITHCORP LIMITED


GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

PRINCIPAL RISKS AND UNCERTAINTIES
 
Management of the business and execution of the group's strategy are always subject to some risks. The Board reviews these and processes are put in place to mitigate them:
Inflation
Whilst the average UK inflation rate (CPI) during 2024 was a modest 2.5%, UK services inflation remained stubbornly high at 5.7% (CPIH all services index) which continued feeding into our cost base. Increasing costs are budgeted for, monitored and reviewed regularly. 
Interest Rates
The group is exposed to interest rate risk in respect of its invoice discounting facility. Rates peaked in the first half of 2024. Since August 2024, there have been three rate cuts, with the expected trend being for further cuts throughout 2025. The Board considers exposure to interest rate fluctuations an acceptable risk, we have budgeted for it and haven’t sought to fix or hedge interest on our facility.
Liquidity
The group actively forecasts, manages, and reports on its working capital requirements to ensure it always has sufficient operational funds. 

Skills Shortages
Demand for skilled teachers and support staff remains robust and we don’t foresee demand easing in the medium term. We are an established player in the market with a strong candidate network. We continue to invest to enhance our candidate sourcing capabilities, thus ensuring we are well placed to capitalise on these shortages.
Competition
The UK is a highly competitive market for recruitment and the education recruitment sector has become more crowded in recent years. Despite this the regulated nature of the sector remains a barrier to entry for non-specialists.
Industrial Action
There were four days of industrial action in the state education sector in 2024, primarily focussed on teacher pay. The unions are unhappy with the government’s offer of a 2.8% pay rise for teachers in 2025/26 and have threatened industrial action if further funding for schools isn’t found. Negotiations continue. Any action would likely affect some of the group’s temporary workers and thus revenue. 
Regulatory and Legislative
We closely monitor all legislative and regulatory changes and are well equipped to deal with them. 

Page 2


SMITHCORP LIMITED


GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

KEY PERFORMANCE INDICATORS
 
Given the straightforward nature of the business, The Board don’t believe detailed analysis using KPIs is necessary to understand performance. However, the following are all monitored and influence management decisions:
 
Turnover
Gross Margin 
Contract Margins
Contract / Permanent income mix
Productivity per fee earner
Headcount / employee retention

BUSINESS DEVELOPMENT
We remain committed to delivering a high-quality, high-speed service to our candidates and clients. We offer online client feedback. 

CHARITY
SmithCorp and its employees remain committed to supporting the SmithCorp Charitable Trust (SCCT). During the summer of 2024, the charity funded the build of a new school classroom in Nepal and sent a team of SmithCorp volunteers to complete the work. 
Late in 2024, SCCT hosted its annual Black-Tie Ball, and with pledges made at that event along with donations from SmithCorp, will fund another school building project in the winter of 2025, this time in Peru.



This report was approved by the board on 18 August 2025 and signed on its behalf.



Mr J A Hodkinson
Director

Page 3

1
SMITHCORP LIMITED

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

PRINCIPAL ACTIVITY

The principal activity of the Company during the year was that of a holding company. The principal activity of the Group during the year was that of a recruitment company.

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £890,797 (2023:£973,171).

No further amounts are recommended to be paid by way of dividends in respect of this financial period.

DIRECTORS

The directors who served during the year were:

Mr J A H Blackiston 
Mr A M Dodge 
Mr J A Hodkinson 
Mr A J Smith 
Mr D N Smith 
Mr D R Smith 

FUTURE DEVELOPMENTS

Having stagnated in the first half of the 2024, the UK economy returned to modest growth from Q4 and into 2025. Growth is predicted to be around 1% of GDP for 2025 with a slight increase in unemployment. The geopolitical landscape remains very uncertain with the recent imposition of US trade tariffs causing significant economic instability and uncertainty worldwide.
In the UK, the Labour government have introduced VAT for private school fees, squeezing spending within the sector. The money raised from this tax was promised to fund growth within the state education sector, meanwhile wider economic conditions look likely to constrain significant additional spending. Increased employers NI rates from April 2025, whilst budgeted for will increase costs and reduce profits in 2025.
Secondary Education pupil numbers will plateau in 2024/25 before dropping back in future years, but the picture remains varied across the country with some areas growing and others contracting. Despite this, we expect staffing needs/opportunities in the sector to remain relatively strong into 2025/26. Meanwhile, student numbers within Further Education are predicted to grow through to 2030. T-Level course uptake continues to steadily grow, and with the additional contact hours these qualifications demand, staffing vacancies across the FE sector are expected to remain high.
In summary, despite uncertainties, we expect the education recruitment sector to remain strong. SmithCorp will continue investing in its people, its training and its systems. We are an established, national recruitment specialist and are well placed to continue our growth. 

MATTERS COVERED IN THE STRATEGIC REPORT

Items required under Schedule 7 above to be disclosed in the directors' report are set out in the strategic report in accordance with s.414C(11) CA 2006.

Page 4


SMITHCORP LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

POST BALANCE SHEET EVENTS

There have been no significant events affecting the Group since the year end.

AUDITORS

The auditorsBishop Fleming LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 






Mr J A Hodkinson
Director

Date: 18 August 2025

Bristol North Baths
Gloucester Road
Bishopston
Bristol
BS7 8BN

Page 5


SMITHCORP LIMITED

 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Group's financial statements and then apply them consistently;

make judgments 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 6


SMITHCORP LIMITED

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SMITHCORP LIMITED
OPINION


We have audited the financial statements of SmithCorp Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of changes in equity, the Company statement of changes in equity, the Consolidated statement of cash flows, the Consolidated analysis of net debt and the related notes, including a summary of significant accounting policiesThe 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's 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 United Kingdom, including the Financial Reporting Council'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 or 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 Audit Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Audit ReportOur 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.


Page 7


SMITHCORP LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SMITHCORP LIMITED (CONTINUED)

OPINION 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 Group 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 Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


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 Group 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 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.


RESPONSIBILITIES OF DIRECTORS
 

As explained more fully in the Directors' responsibilities statement set out on page 6, 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 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.


Page 8


SMITHCORP LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SMITHCORP LIMITED (CONTINUED)

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 an Auditors' 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have considered the nature of the sector, control environment and financial performance;
We have considered the results of enquiries with management and directors in relation to their own identification and assessment of the risk of irregularities within the entity;
We have reviewed the documentation of key processes and controls and performed walkthroughs of transactions to confirm that the systems are operating in line with documentation;
Any matters identified having obtained and reviewed the Group’s documentation of their policies and procedures relating to:
°Identifying, evaluation and complying with laws and regulations and whether they were aware of any instances of non-compliance;
°Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
°The internal controls established to mitigate risks of fraud or noncompliance with laws and regulations;
We have considered the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to income recognition, with a particular risk in relation to year-end cut off. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.
We have also obtained understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, FRS 102 and UK tax legislation.
In addition, we considered the provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group’s ability to operate or avoid a material penalty. These include, data protection regulations, health and safety regulations, employment legislation, money laundering legislation and aspects of the Children’s Act and Education Act relating to the recruitment industry.
Our procedures to respond to risks identified included the following:
 
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
Performing analytical procedures to identify unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
Reviewing board meeting minutes;
Enquiring of management in relation to actual and potential claims or litigations;
Performing detailed transactional testing in relation to the recognition of income, with a particular focus around year-end cut off; and
In addressing the risk of fraud through management override of controls, testing the appropriateness of
Page 9


SMITHCORP LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SMITHCORP LIMITED (CONTINUED)

journal entries and other adjustments; assessing whether the judgments made in accounting estimates are indicative of potential bias; and evaluating the business rationale of significant transactions that are unusual or outside the normal course of business.

We have performed the above procedrues for the parent company and the subsidiaries. We also communicated identified laws and regulations and potential fraud risks to all members of the engagement team and remained alert to possible indicators of fraud or non-compliance with laws and regulations throughout the audit.
As a result of the inherent limitations of an audit, there is a risk that not all irregularities, including a material misstatement in financial statements or non-compliance with regulation, will be detected by us. The risk increases the further removed compliance with a law and regulation is from the events and transactions reflected in the financial statements, given we will be less likely to be aware of it, or should the irregularity occur as a result of fraud rather than a one-off error, as this may involve intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' 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 2006Our 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 Auditors' 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.






Alison Oliver FCA (Senior statutory auditor)
for and on behalf of
Bishop Fleming LLP
Chartered Accountants
Statutory Auditors
Chy Nyverow
Newham Road
Truro
Cornwall
TR1 2DP

20 August 2025
Page 10


SMITHCORP LIMITED

 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
39,281,324
36,492,005

Cost of sales
  
(32,906,559)
(30,140,012)

Gross profit
  
6,374,765
6,351,993

Administrative expenses
  
(5,024,496)
(4,920,051)

Operating profit
 5 
1,350,269
1,431,942

Interest receivable and similar income
  
110
348

Interest payable and similar expenses
 9 
(121,718)
(106,067)

Profit before taxation
  
1,228,661
1,326,223

Tax on profit
 10 
(337,864)
(353,052)

Profit for the financial year
  
890,797
973,171

  

Total comprehensive income for the year
  
890,797
973,171

Profit for the year attributable to:
  

Owners of the parent Company
  
890,797
973,171

  
890,797
973,171

The notes on pages 18 to 35 form part of these financial statements.

Page 11


SMITHCORP LIMITED
REGISTERED NUMBER:07805942

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 13 
2,263,982
2,575,544

Tangible assets
 14 
135,310
177,606

  
2,399,292
2,753,150

Current assets
  

Debtors: amounts falling due within one year
 16 
5,418,828
6,168,171

Cash at bank and in hand
 17 
1,353,930
428,162

  
6,772,758
6,596,333

Creditors: amounts falling due within one year
 18 
(6,128,913)
(5,838,447)

Net current assets
  
 
 
643,845
 
 
757,886

Total assets less current liabilities
  
3,043,137
3,511,036

Provisions for liabilities
  

Deferred taxation
 19 
(7,421)
(15,509)

Net assets
  
3,035,716
3,495,527


Capital and reserves
  

Called up share capital 
 20 
6,544,200
6,544,200

Profit and loss account
  
(3,508,484)
(3,048,673)

Equity attributable to owners of the parent Company
  
3,035,716
3,495,527


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 





Mr J A Hodkinson
Director

Date: 18 August 2025

The notes on pages 18 to 35 form part of these financial statements.

Page 12


SMITHCORP LIMITED
REGISTERED NUMBER:07805942

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 15 
6,391,128
6,391,128

  
6,391,128
6,391,128

Current assets
  

Debtors: amounts falling due within one year
 16 
242,574
242,574

  
242,574
242,574

Creditors: amounts falling due within one year
 18 
(3,310)
(3,310)

  

  

Net assets
  
6,630,392
6,630,392


Capital and reserves
  

Called up share capital 
 20 
6,544,200
6,544,200

Profit and loss account brought forward
  
86,192
86,192

Profit for the year
  
1,350,608
861,463

Dividends paid

  

(1,350,608)
(861,463)

Profit and loss account carried forward
  
86,192
86,192

  
6,630,392
6,630,392


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 





Mr J A Hodkinson
Director

Date: 18 August 2025

The notes on pages 18 to 35 form part of these financial statements.

Page 13


SMITHCORP LIMITED


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2023
6,544,200
(3,160,381)
3,383,819


Comprehensive income for the year

Profit for the year
-
973,171
973,171

Dividends: Equity capital
-
(861,463)
(861,463)



At 1 January 2024
6,544,200
(3,048,673)
3,495,527


Comprehensive income for the year

Profit for the year
-
890,797
890,797

Dividends: Equity capital
-
(1,350,608)
(1,350,608)


At 31 December 2024
6,544,200
(3,508,484)
3,035,716


The notes on pages 18 to 35 form part of these financial statements.

Page 14


SMITHCORP LIMITED


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2023
6,544,200
86,192
6,630,392


Comprehensive income for the year

Profit for the year
-
861,463
861,463

Dividends: Equity capital
-
(861,463)
(861,463)



At 1 January 2024
6,544,200
86,192
6,630,392


Comprehensive income for the year

Profit for the year
-
1,350,608
1,350,608

Dividends: Equity capital
-
(1,350,608)
(1,350,608)


At 31 December 2024
6,544,200
86,192
6,630,392


The notes on pages 18 to 35 form part of these financial statements.

Page 15


SMITHCORP LIMITED


CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
890,797
973,171

Adjustments for:

Amortisation of intangible assets
311,562
311,562

Depreciation of tangible assets
91,327
113,043

Interest paid
121,718
106,067

Taxation charge
337,864
353,052

Decrease/(increase) in debtors
779,587
(2,201,908)

(Decrease)/increase in creditors
(2,143,314)
2,594,602

Corporation tax received/(paid)
-
(168,271)

Net cash generated from operating activities

389,541
2,081,318


Cash flows from investing activities

Purchase of tangible fixed assets
(49,031)
(47,855)

Net cash from investing activities

(49,031)
(47,855)

Cash flows from financing activities

Movements on invoice discounting
2,057,584
(838,099)

Dividends paid
(1,350,608)
(861,463)

Interest paid
(121,718)
(106,067)

Net cash used in financing activities
585,258
(1,805,629)

Net increase in cash and cash equivalents
925,768
227,834

Cash and cash equivalents at beginning of year
428,162
200,328

Cash and cash equivalents at the end of year
1,353,930
428,162


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,353,930
428,162


The notes on pages 18 to 35 form part of these financial statements.

Page 16


SMITHCORP LIMITED


CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024




At 1 January 2024
Cash flows
At 31 December 2024
£

£

£

Cash at bank and in hand

428,162

925,768

1,353,930

Debt due within 1 year

(921,174)

(2,057,585)

(2,978,759)



(493,012)
(1,131,817)
(1,624,829)

The notes on pages 18 to 35 form part of these financial statements.

Page 17


SMITHCORP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.ACCOUNTING POLICIES

 
1.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The financial statements use British Pounds Sterling as the presentation currency, and are rounded to the nearest £1 throughout.

The following principal accounting policies have been applied:

 
1.2

BASIS OF CONSOLIDATION

The consolidated financial statements present the results of the Company and its own subsidiaries (together, "the Group") as they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
1.3

GOING CONCERN

The Group remains in a positive position into 2025, despite difficult trading conditions. Overheads and direct salary costs have risen significantly in line with the wider UK economy. Client budgets have been somewhat restricted, leading to reduced job vacancies. As such, first half of the year turnover is 9% down in 2025 vs 2024. We have made sensible decisions to best manage our cost base, whilst continuing to develop our infrastructure and retain our established talent. We expect Economic conditions to remain challenging into 2026, presenting ongoing risks in the sector. The directors have considered these risks and revue them regularly. SmithCorp will continue operating within its available resources, whilst working hard to increase market share. The Group can tolerate these ongoing pressures for a period of at least 12 months from the date of these financial statements, which have been prepared on a going concern basis.

Page 18


SMITHCORP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.ACCOUNTING POLICIES (CONTINUED)

 
1.4

REVENUE

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
1.5

OPERATING LEASES: THE GROUP AS LESSEE

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
1.6

INTEREST INCOME

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

 
1.7

FINANCE COSTS

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

 
1.8

BORROWING COSTS

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
1.9

PENSIONS

DEFINED CONTRIBUTION PENSION PLAN

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

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

Page 19


SMITHCORP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.ACCOUNTING POLICIES (CONTINUED)

 
1.10

CURRENT AND DEFERRED TAXATION

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity 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 in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


 
1.11

INTANGIBLE ASSETS

GOODWILL
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Income statement over its useful economic life.

 Amortisation is provided on the following bases:

Goodwill
-
5%
on cost

 
1.12

TANGIBLE FIXED ASSETS

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

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

Page 20


SMITHCORP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.ACCOUNTING POLICIES (CONTINUED)


1.12
TANGIBLE FIXED ASSETS (CONTINUED)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line and reducing balance methods..

Depreciation is provided on the following basis:

Plant and machinery
-
25%
reducing balance and 33% straight line
Leasehold property improvements
-
33%
straight line

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

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
1.13

VALUATION OF INVESTMENTS

Investments in subsidiaries are measured at cost less accumulated impairment.

 
1.14

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
1.15

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
1.16

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
1.17

HOLIDAY PAY ACCRUAL

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.

Page 21


SMITHCORP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.ACCOUNTING POLICIES (CONTINUED)

 
1.18

PROVISIONS FOR LIABILITIES

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
1.19

FINANCIAL INSTRUMENTS

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic financial liabilities

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

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Page 22


SMITHCORP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.ACCOUNTING POLICIES (CONTINUED)


1.19
FINANCIAL INSTRUMENTS (CONTINUED)


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

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

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

 
1.20

DIVIDENDS

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 23


SMITHCORP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.


COMPANY INFORMATION

SmithCorp Limited is a private company limited by shares registered in England and Wales in the United Kingdom, registered number 07805942. The registered office is Bristol North Baths, Gloucester Road, Bishopston, Bristol, BS7 8BN.


3.



JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Preparation of the financial statements requires management to make significant judgments and estimates. These items in the financial statements where these judgmental and estimates have been made include:
Goodwill and intangible assets
Positive goodwill acquired on each business combination is capitalised, classified as an asset on the statement of financial position and amortised on a straight line basis over its useful life.
The Group establishes a reliable estimate of the useful life of goodwill and intangible assets arising on business combinations. This estimate is based on a variety of factors such as the expected use of the acquired business, the expected useful life of the cash generating units to which the asset is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses.
Tangible fixed assets and depreciation
Tangible fixed assets are capitalised, classified as assets on the statement of financial position and depreciated over their useful lives in accordance with the policies above.
The Group establishes a reliable estimate of the useful life of tangible fixed assets based on a variety of factors such as the expected use of the acquired assets, and the expected date that replacement will be required.


4.


TURNOVER

The whole of the turnover is attributable to the Group's recruitment services activities.

All turnover arose within the United Kingdom.


5.


OPERATING PROFIT

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
91,327
113,043

Amortisation of intangible assets, including goodwill
311,562
311,562

Other operating lease rentals
622,067
560,016

Page 24


SMITHCORP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

6.


AUDITORS' REMUNERATION

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
10,900
10,500

Fees payable to the Company's auditors in respect of:

The auditing of accounts of associates of the Company
48,025
46,200

Taxation compliance services
9,625
9,250


7.


EMPLOYEES

Staff costs, including directors' remuneration, were as follows:


Group
Group
2024
2023
£
£


Wages and salaries
7,364,600
7,145,677

Social security costs
866,888
846,345

Cost of defined contribution scheme
103,974
103,322

8,335,462
8,095,344


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Directors
6
6



Administrative
26
18



IT
3
3



Recruitment consultants and managers
103
93

138
120

Page 25


SMITHCORP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

8.


DIRECTORS' REMUNERATION

2024
2023
£
£

Directors' emoluments
1,243,476
1,115,336

Group contributions to defined contribution pension schemes
5,283
5,283

1,248,759
1,120,619


During the year retirement benefits were accruing to 6 directors (2023:6) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £308,767 (2023:£260,017).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,321 (2023:£1,321).


9.


INTEREST PAYABLE AND SIMILAR EXPENSES

2024
2023
£
£


Bank interest payable
121,489
105,817

Other interest payable
229
250

121,718
106,067


10.


TAXATION


2024
2023
£
£

CORPORATION TAX


Current tax on profits for the year
395,524
364,864

Adjustments in respect of previous periods
(49,572)
-


TOTAL CURRENT TAX
345,952
364,864

DEFERRED TAX


Origination and reversal of timing differences
(8,088)
(15,012)

Adjustments in respect of prior periods
-
3,200

TOTAL DEFERRED TAX
(8,088)
(11,812)


TAXATION ON PROFIT ON ORDINARY ACTIVITIES
337,864
353,052
Page 26


SMITHCORP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
10.TAXATION (CONTINUED)


FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is higher than (2023:higher than) the standard rate of corporation tax in the UK of 25% (2023:23.52%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,228,661
1,326,223


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023:23.52%)
307,165
311,928

EFFECTS OF:


Expenses not deductible for tax purposes
575
1,302

Capital allowances for year in excess of depreciation
-
422

Adjustments to tax charge in respect of previous periods
(49,572)
(56,074)

Adjustments to tax charge in respect of previous periods - deferred tax
282
3,200

Remeasurement of deferred tax for changes in tax rates
1,524
(888)

Other differences leading to an increase (decrease) in the tax charge
77,890
93,162

TOTAL TAX CHARGE FOR THE YEAR
337,864
353,052


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges.


11.


DIVIDENDS

2024
2023
£
£


Dividends paid on equity capital
1,350,608
861,463


12.


PARENT COMPANY PROFIT FOR THE YEAR

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £1,350,608 (2023:£861,463).

Page 27


SMITHCORP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

13.


INTANGIBLE ASSETS

Group





Goodwill

£



COST


At 1 January 2024
6,231,230



At 31 December 2024
6,231,230



AMORTISATION


At 1 January 2024
3,655,686


Charge for the year on owned assets
311,562



At 31 December 2024

3,967,248



NET BOOK VALUE



At 31 December 2024
2,263,982



At 31 December 2023
2,575,544



Page 28


SMITHCORP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


TANGIBLE FIXED ASSETS

Group






Plant and machinery
Leasehold property improvem'ts
Total

£
£
£



COST


At 1 January 2024
1,260,422
530,081
1,790,503


Additions
49,031
-
49,031



At 31 December 2024
1,309,453
530,081
1,839,534



DEPRECIATION



At 1 January 2024
1,091,073
521,824
1,612,897


Charge for the year on owned assets
87,912
3,415
91,327



At 31 December 2024
1,178,985
525,239
1,704,224



NET BOOK VALUE




At 31 December 2024
130,468
4,842
135,310



At 31 December 2023
169,349
8,257
177,606

Page 29


SMITHCORP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

15.


FIXED ASSET INVESTMENTS

Company





Investments in subsidiary companies

£



COST



At 1 January 2024
6,391,128



At 31 December 2024
6,391,128





SUBSIDIARY UNDERTAKINGS


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

jjFOX Limited
Bristol North Baths, 
Gloucester Road, Bishopston, Bristol, BS7 8BN
Ordinary
100%
Boston Rose Limited
Bristol North Baths, 
Gloucester Road, Bishopston, Bristol, BS7 8BN
Ordinary
100%
Edgware Associates Limited
Elizabeth House, Castle Street, Truro, Cornwall, TR1 3AP
Ordinary
100%
Teaching Professionals Limited
Bristol North Baths, 
Gloucester Road, Bishopston, Bristol, BS7 8BN
Ordinary
100%
Education Staffbank Limited
Bristol North Baths, 
Gloucester Road, Bishopston, Bristol, BS7 8BN
Ordinary
100%
Omnia People Limited
Bristol North Baths, 
Gloucester Road, Bishopston, Bristol, BS7 8BN
Ordinary
100%
Ironbridge Partners Limited
Bristol North Baths, 
Gloucester Road, Bishopston, Bristol, BS7 8BN
Ordinary
100%

Page 30


SMITHCORP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
SUBSIDIARY UNDERTAKINGS (CONTINUED)

The aggregate of the share capital and reserves as at 31 December 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

jjFOX Limited
1,087,185
221,786

Boston Rose Limited
37,817
72,523

Edgware Associates Limited
599,100
701,651

Teaching Professionals Limited
7,283
57,581

Education Staffbank Limited
88,831
203,709

Omnia People Limited
(1,015,326)
(50,589)

Ironbridge Partners Limited
(207,456)
(4,303)


16.


DEBTORS

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
4,309,981
3,031,885
-
-

Amounts owed by group undertakings
-
-
148,026
148,026

Other debtors
544,484
2,045,412
94,548
94,548

Prepayments and accrued income
564,363
1,090,874
-
-

5,418,828
6,168,171
242,574
242,574



17.


CASH AND CASH EQUIVALENTS

Group
Group
2024
2023
£
£

Cash at bank and in hand
1,353,930
428,162

1,353,930
428,162


Page 31


SMITHCORP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

18.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Other loans
2,977,650
920,066
-
-

Trade creditors
293,852
137,856
-
-

Amounts owed to group undertakings
-
-
2,250
2,250

Corporation tax
262,890
395,483
-
-

Other taxation and social security
1,577,194
3,013,409
-
-

Other creditors
61,362
126,471
1,060
1,060

Accruals and deferred income
955,965
1,245,162
-
-

6,128,913
5,838,447
3,310
3,310


Included in other loans are liabilities of £2,977,650 (2023: £920,066) in respect of invoice discounting arrangements that are secured over the Company's trade debtors.


19.


DEFERRED TAXATION


Group



2024


£






At beginning of year
(15,509)


Charged to profit or loss
8,088



AT END OF YEAR
(7,421)

Page 32


SMITHCORP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
19.DEFERRED TAXATION (CONTINUED)

Company


2024






AT END OF YEAR
-
Group
Group
2024
2023
£
£

Fixed asset timing differences
(9,939)
(18,610)

Tax losses carried forward
2,518
3,101

(7,421)
(15,509)

Page 33


SMITHCORP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

20.


SHARE CAPITAL

2024
2023
£
£
ALLOTTED, CALLED UP AND FULLY PAID



6,544,200 (2023:6,544,200) A ordinary shares of £1.00 each
6,544,200
6,544,200



21.


SHARE-BASED PAYMENTS

On 26 August 2016, the Company granted share options of 348,796 ordinary £1 shares to employees under an EMI option scheme at a price of £0.72 per ordinary share. The value of the equity instruments granted was determined by a third party professional on an EBITDA multiple basis.
These equity settled options are for a maximum of 10 years from the date of grant, and are contingent on certain conditions being met. During the year, no share options were exercised.


22.


PENSION COMMITMENTS

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £177,252 (2023: £103,322). There were outstanding contributions at the balance sheet date of £32,403 (2023: £21,485).


23.


COMMITMENTS UNDER OPERATING LEASES

At 31 December 2024 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Land and Buildings

Not later than 1 year
185,965
445,299

Later than 1 year and not later than 5 years
102,375
93,299

288,340
538,598

Group
Group
2024
2023
£
£

IT Equipment

Not later than 1 year
440,131
241,584

Later than 1 year and not later than 5 years
141,208
16,854

581,339
258,438






Page 34


SMITHCORP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

24.


RELATED PARTY TRANSACTIONS

At the year end, the group was owed £Nil (2023: £94,320) by SmithCorp Investments Limited. SmithCorp Investments Limited is a company under common control.
At the year end, the group was owed £Nil (2023: £4,163) by T15 International Limited. T15 International Limited is a company under common control.
At the year end, the group was owed £6,743 (2023: £3,102) by SCI Jersey Limited. SCI Jersey Limited is a company under common control.
At the year end, the group was owed £1,821 (2023: owed £62) by SmithCorp Charitable Trust. SmithCorp Charitable Trust is a company under common control.
At the year end, the group owed £1,903 (2023: £1,903) to TEMP-PAYE Limited. TEMP-PAYE Limited is a company under common control.
At the year end, the group was owed £31,516 (2023: £76) by Mr A J Smith, was owed £31,516 (2023: £76) by  , and was owed £31,516 (2023: £76) by Mr D R Smith, the directors. The accounts are interest free. During the year, the group paid dividends of £427,092 (2023: £272,412) each to Mr A J Smith, Mr D N Smith, and Mr D R Smith.
During the year, the group paid dividends of £69,340 (2023: £44,227) to Mr J Hodkinson, a director. At the year end, the group was owed £150 by Mr J Hodkinson (2023: £150).
All directors and certain senior employees who have authority and responsibility for planning, directing and controlling the activities of the group are considered to be key management personnel. Total compensation (including remuneration and social security contributions) in respect of these individuals is £1,328,272 (2023: £1,205,494).

 
Page 35