The directors present the strategic report for the year ended 30 June 2025.
The principal activity of the group and company continued to be that of IT consultancy and services.
Northdoor is a leading consultancy and managed services company delivering innovative solutions that help our clients gain value from technology.
This year has seen an increase in turnover and an increase in profit. The increase in turnover has primarily been driven by improved enterprise infrastructure projects, and growth in the managed services business unit. This has resulted in improved profitability supported by consistent consultancy led engagements and resource utilisation.
During the year, investment continued in the design, development and testing of the Alternate product to support the Lloyd’s Blueprint 2 initiative and is now in production with early-adopter customers. No further investment is anticipated during the next financial year, however we remain ready to react to changes in Lloyd’s delivery timescale, the wider market and customer opportunities for Alternate.
Profit after tax of £833k showed an increase of 25% against the prior year of £665k. Turnover was 8.9% higher at £17m reflecting an increase in product and managed services sales.
The group operates an active risk register which is reviewed on a quarterly basis to assess adequacy of internal controls. The principal risks identified in the period were:
Fraud – In the year additional systems and processes have been introduced to identify and prevent fraudulent activity. We continually assess ways to protect ourselves against fraud and client payment default as new risk are identified.
Artificial Intelligence – the rapid evolution of artificial intelligence presents both risk and opportunity to the business. We actively assess ways of utilising artificial intelligence to remain competitive and deliver value to our customers and remain vigilant to the advanced threat posed through the technology being used maliciously.
Financial – Insolvencies rate remain high and risk of financial deterioration of creditors. The company operates a strict credit control policy and actively credit checks both new and existing customers.
Competitive – the environment for IT consultancy and services is highly competitive. Increased competition might have an adverse impact on the company’s revenue and profitability in the future. A blend of full time employed, contract and outsourced services allows us to remain flexible whilst remaining price competitive and delivering high quality services demanded.
Operational – There are skill shortages in some technology areas and retaining key personnel is important. Attracting and retaining staff is actively reviewed on a regular basis, and efforts are taken to ensure staff receive ongoing professional development.
Treasury – The company has no borrowing facility. The groups surplus funds are held primarily in short term fixed bank treasury deposits. All deposits are with reputable UK banks. The company’s operations are largely UK based and therefore there is no material exposure to foreign currency exchange rate fluctuations.
Security and Compliance – We have an active program to ensure all our employees remain vigilant to the exposure of security breaches, alongside the use of best practices IT preventative measures. We continually monitor and improve our processes in compliance with GDPR and any other new regulations as they are introduced.
The following non-financial KPI’s are some of the measures used by management to monitor the performance of the business
Customer satisfaction
Employee retention rate
Service level
The following KPI’s are some of the measures used by management to monitor the operating performance of the business:
Performance Indicator | 2025 | 2024 | % Change |
Turnover | £16,898,775 | £15,615,263 | +8.2% |
Profit before tax | £1,114,994 | £888,303 | +25.5% |
Profit after tax | £832,613 | £664,687 | +25.2% |
The company ended the year with cash at bank of £4.81 million (2024: £5.09 million).
By order of the board
The directors present their annual report and financial statements for the year ended 30 June 2025.
The results for the year are set out on page 10.
Subsequent to the year end a dividend was proposed and approved by the board of directors of £1,008,540.
Particulars of dividends paid are set out in note 11 in the financial statements.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group makes little use of financial instruments other than an operational bank account and therefore its exposure to price risk, credit risk, liquidity risk and cash flow risk is not material for the assessment of the assets, liabilities, financial position and profit or loss of the group.
No significant events have occurred between 30 June 2025 and the date of authorisation of these financial statements.
During the year the company continued investment in the development of Alternate, a platform that allows insurance market participants to adopt the Blueprint Two strategy from Lloyd’s with reduced risk and systems changes. Alternate is now in production with early adoption customers, and is ready for general market acceptance, and for the launch of Blueprint Two which is expected in 2025/2026.
In accordance with the company's articles, the appointment of the auditor of the group and company will be put to a general meeting.
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of Northdoor PLC (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2025 which comprise the group income statement, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the group and parent company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent company by discussions with directors and by updating our understanding of the sector in which the group and parent company operates.
Laws and regulations of direct significance in the context of the group and parent company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of group and parent company financial statement disclosures. We reviewed the parent company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the parent 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 parent 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 parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.
The income statement has been prepared on the basis that all operations are continuing operations.
The notes on pages 15 to 30 form part of these financial statements.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £832,613 (2024 - £326,498 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
Northdoor PLC (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, Bentima House, 168-172 Old Street, London, EC1V 9BP.
The group consists of Northdoor PLC and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
Reduced disclosures
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 4 'Statement of Financial Position': Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The company is consolidated in these financial statements.
The consolidated group financial statements consist of the financial statements of the parent company Northdoor PLC together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 June 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
The directors have at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
The main external threats to the business are from the Ukraine/Russia wars, the conflict in the Middle East and a general downturn in the economy. The business has very little direct exposure to these regions but is not immune to associated impacts from political instability.
The last 12 months continued a decline in demand for enterprise infrastructure and IT hardware upgrades. These circumstances have impacted revenue generation, however, this impact has been softened by continued strong consultancy, managed services and project sales. In response to these conditions, we continue to consider opportunities to reduce overheads, however, management still consider that strategies developed in previous years are viable and are expected to continue to make profits in the future. The company also has significant cash reserves which if required could be used to cover the costs of fixed overheads for the 12 months following the date of the signing of these accounts with little revenue generation. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.
During this year we intend to continue the investment in Alternate, our new offering for the London Insurance Market which is expected to have limited impact on revenue for the year but shows very good potential in the longer term.
Turnover represents amounts invoiced in respect of services and products provided in the year, as adjusted for amounts deferred, where invoice amounts are in advance of services being delivered and for amounts accrued, where services are delivered in advance of invoices being issued, stated net of value added tax.
Turnover is recognised as follows:
Third party hardware, software and maintenance - on point of sale when invoiced and irrevocably contracted for or delivered. Bill and hold sales revenue will be recognised when the buyer takes title, provided, it is probable that delivery will be made, the usual payment terms apply and delivery is deferred on the buyer instructions.
Services - on point of delivery.
Support maintenance - recognised over the period of maintenance contract.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Basic financial assets, which include cash at bank, trade and other debtors and accrued income, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Other financial assets classified as fair value through profit or loss are measured at fair value.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities including trade, group, other creditors and accruals are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. The assets of the schemes are held separately from those of the company. The annual contributions payable is charged to the profit and loss account.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions in currencies other than the functional currency (foreign currency) are initially recorded at the exchange rate prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. All translation differences are taken to profit or loss.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
In categorising leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the company as lessee, or the lessee, whether the company is a lessor.
The assessment of the useful economic lives, residual values and the method of amortising intangible fixed assets and depreciating tangible fixed assets requires judgement. Amortisation and depreciation are charged to the income statement based on the useful economic life selected, which requires an estimation of the period and profile over which the company expects to consume the future economic benefits embodied in the assets. Useful economic lives and residual values are re-assessed, and amended as necessary, when changes in their circumstances are identified.
Debtors are stated at recoverable amounts, after appropriate provision for bad and doubtful debts. Calculation of the bad debt provision requires judgment from the management team, based on the creditworthiness of the debtor, the agency profile of the debtor, and the historical experience.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024 - 3).
The number of directors who received emoluments during the year was 6 (2024:6)
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 30 June 2025 are as follows:
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax liability set out above is expected to reverse within 12 months and relates to the accelerated of capital allowances that are expected to mature within the same period.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Ordinary share rights
The company's ordinary shares, which carry no right to fixed income, each carry the right to one vote at general meetings of the company.
Profit and loss reserve
Cumulative profit and loss net of distributions to owners.
Share Premium account
Consideration received for shares issued above their nominal value, net of transaction costs.
Capital redemption reserve
The nominal value of shares repurchased and still held at the end of the reporting period.
Operating lease payments represent rentals payable by the group and company for certain of its properties and motor vehicles. Property leases are negotiated for an average term of 10 years and rentals are fixed for an average of 5 years with an option to extend for a further 5 years at the prevailing market rate.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The remuneration of key management personnel is as follows.
Dividends totalling £718,703 (2024: £772,367) were paid in the year in respect of shares held by the company's directors.