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

Corporate information

Project Group UK Limited (the ‘Company') is the holding company of Project FF&E Limited, Project Interiors Limited, Project Studio Limited, Project Furniture Residential Limited and Project Furniture Limited which together form the Project Group (the ‘Group').

Principal activities

The principal activity of the Company is that of a holding company.

The principal activity of the trading subsidiary, Project FF&E Limited, continues to be the supplier and installer of furniture, fittings and equipment to the student accommodation, commercial, residential, healthcare and educational sectors.

The principal activity of the trading subsidiary, Project Interiors Limited, is the provision of full interior fit out and refurbishment solutions for the student accommodation, residential and commercial sectors.

The principal activity of the trading subsidiary, Project Studio Limited, is the delivery of interior design work to a range of clients across the build-to-rent, private rented sector, co-living, co-working, hotel and student accommodation sectors.

The principal activity of the trading subsidiary, Project Furniture Residential Limited, is that of the design, supply, delivery and installation of loose furniture to the residential industry.

The principal activity of the trading subsidiary, Project Furniture Limited, is that of the design, supply, delivery and installation of loose furniture to the residential, commercial, leisure and retail industries and to a wide range of public sector bodies.

Since the business commenced trading as Project FF&E Limited in 2010, the Group has become an established leading provider of furniture, fittings and equipment fit-out, internal fit-out and refurbishment and interior design services to the student accommodation, residential, co-living, hotel, office and education sectors of the construction and development markets. Projects delivered by the Group have covered all aspects of the market.

2024 was another year of growth for the Group, with strong turnover growth achieved as it was able to continue to leverage strong customer relationships across the sectors in which it operates. The Group reported £55.3m turnover for the year which represented growth of 13.0% compared to the £42.4m turnover achieved in 2023.

In 2024 gross profit was £11.7m, a gross margin of 21.1%, compared to £7.2m or 17.1% gross margin in 2023. This considerable improvement was achieved through robust bid and tendering processes, coupled with the continued refinement of the Group’s operational delivery model, with all aspects from commercial governance, procurement, contract management and installation adjusted to optimise client satisfaction and operational performance. This also enabled the Group to better navigate the challenging macroeconomic environment and the supply chain uncertainty from global geopolitical conflicts.

The FF&E business (Project FF&E Limited) returned to growth in 2024, following a year of consolidation in the prior year, achieving turnover of £31.3m in 2024, 12.2% higher than the £27.9m delivered in 2023. Whilst this level of growth was significant, operational control remained robust. Project FF&E also reported a 22% increase in gross profit margin, achieving 15.9% in 2024, compared to 13.0% in 2023 as a result of ongoing focus on all aspects of its operational delivery model.

The Interiors business (Project Interiors Limited) delivered another strong year, continuing to develop excellent customer relationships particularly in the student accommodation sector and expects to continue to leverage these relationships to further develop the sales pipeline into 2026 and beyond.

The Residential Furniture business (Project Furniture Residential Limited) grew at a significant pace in 2024 as it developed key client relationships, gained market share in the furniture packs space and broadened its loose furniture project offering into aftercare. Strong investment in people and operational structure has truly set this business up for future growth through 2025 and beyond.

The Interior Design business (Project Studio Limited) continued to undertake a diverse range of work across the build-to-rent, private-rented, co-living, co-working, and student accommodation sectors, across all stages governed by the Royal Institute of British Architects (RIBA).

On 10 October 2024, Project Group UK Limited acquired Project Furniture Limited, with 80% of the share capital acquired in a share-for-share exchange. Project Furniture Limited is engaged in the design, supply, delivery and installation of loose furniture to the residential, commercial, leisure and retail industries, and to a wide range of public sector bodies. Project Furniture Limited contributed £1.7m turnover to the Group’s 2024 financial year at a gross profit margin of 24.1% and contributed £0.1m of profit before tax.

The outlook for the Group is strong with virtually all the 2025 budgeted turnover either secured or very close to being secured and a considerable amount of turnover for 2026 secured too. The Directors are confident the success already achieved from the commercial and operational improvements made in 2023 will continue to produce further profit growth in 2025 and beyond.

Over the next five years the plan is for the Group to enjoy further growth in its markets, expanding cautiously, but profitably to capitalise on the opportunities its strong client relationships offer. The Group will continue to invest in people and business processes to support this growth and has continued to develop its Integrated Management Systems and strengthen its base of industry accreditations, which includes being FSC (Forest Stewardship Council) accredited.

The Group continues to focus on cash flow management and was able to maintain significant headroom against its credit facilities through 2024, providing assurance to the Directors during a challenging period for the UK economy. To mitigate the company’s risk to bad debts the Group carries out rigorous diligence on project cash flows and client financial strength before committing to contract works. The Group also maintains a credit insurance policy through which a significant proportion of customer debt is insured.

Ethos

The Group is passionate about delivering the very best service and sees every project as an opportunity to build and strengthen relationships, to deliver best-in-class quality and design and to set a benchmark for value. This approach is underpinned by a dedication to detail, whether it’s at the design creative stage, in the production, during the project planning or the installation phase, every detail matters.

The Project Group ESG journey is built on a foundation of responsibility, integrity, and transparency. The Group has operated with a commitment to sustainability from the very beginning - not just in the services it delivers but in the way it does business. Every decision made by the Group reflects its dedication to its people, partners, and the communities it serves.

Upholding the highest ESG standards is fundamental to the Group’s long-term success. The Group enforces stringent environmental policies, champions charitable initiatives, and creates opportunities for its diverse workforce. This ESG commitment reaches all corners of the Group’s operations- engaging stakeholders, suppliers, employees, customers, and the wider community to ensure a meaningful and lasting impact. In recognition of these efforts the Group was proud to be selected as a finalist for the ESG Impact Award at the 2024 Yorkshire Excellence in HR Awards - a reflection of the dedication shown across its teams, and a strong foundation to be built upon through 2025 and beyond.

Other ESG achievements in 2024 included:

• Supporting 29 separate charities, raising over £35,000.

• Obtained Silver Investors in People accreditation.

• Signed the Armed Forces Covenant.

• 400+ hours volunteered in local communities.

• 28 Mental Health First Aiders were trained.

• Adopted the United Nations Global Sustainable Development Goals and committed to achieve carbon net zero by 2040.

Corporate and social responsibility is not just an obligation; it’s the essence of how the Group thrives. With impact, purpose, and accountability, the Group continues to push the boundaries of what’s possible, driving meaningful change for a better, more sustainable future.

Principal risks and uncertainties

The growth of the Group needs to be steady and controlled. The Directors are confident that the senior operations team structures, financial processes, and the continued commitment to process and management improvement, will ensure that growth continues in a controlled manner.

The Group imports considerable quantities of product from overseas, the cost of which is dependent on the legislation surrounding overseas trade agreements as well as levels of inflation for building materials and furniture goods. Therefore, focus is place on developing manufacturing and production partnerships with UK suppliers and distributors, which coupled with the diversity of its international supply chain and international account managers, helps the Group to control this risk.

(1) Turnover increased by a notable 13.0% in 2024, as the Group benefitted from a growing client base as well as opportunities arising from established relationships with key contractors and developers in the student and private-rented accommodation sector.

(2) Gross profit margin increased by 24% in the year and was 21.1% in 2024 compared to 17.1% in 2023, following the improvement of operational processes coupled with a focus on proactive management of labour resource requirements and product and material cost control.

(3) Net Assets increased by 62.6% to £5,821,143 as a result of the strong trading performance in the year. The Directors continue to place focus on Balance Sheet strength by retaining profit and cash flow in the Group.

On behalf of the board

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

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £503,193. The directors do not recommend payment of a further dividend.

The group has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are mainly conducted in sterling.

The group continually designs and develops its products to diversify into new markets and obtain new customers.

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom 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 group and company, 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 group and company will continue in business.

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

We have audited the financial statements of Project Group UK Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and 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 Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our 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 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 our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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.

As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

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

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

• Enquiries with management, about any known or suspected instances of non-compliance with laws and regulations and fraud;

• Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to contract accruals, debtor and retention recoverability and future performance in light of the impact of the current economic uncertainty;

• Reviewing board minutes and legal and professional expenditure to identify any evidence of ongoing litigation or enquiries;

• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business; and

• Auditing the risk of fraud in revenue, including through the testing of a sample of contracts to ensure revenue is complete in the financial statements and recognised in the correct accounting period.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non- compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

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

The profit and loss account has been prepared on the basis that all operations are continuing operations.

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 £674,475 (2023 - £398,110 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Project Group UK Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Dalton House, 17 Harrison Road, Halifax, HX1 2AF.

The group consists of Project Group UK Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The consolidated financial statements incorporate those of Project Group UK Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

All financial statements are made up to 31 December 2024.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated with reference to certified works. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Goodwill arising on business combinations is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

Negative goodwill has been treated in accordance with FRS102, and as such has been shown on the balance sheet and then amortised through the profit and loss. Amortisation has been calculated based on upon the average life of the assets acquired as part of any acquisition as follows:

Cash and short term working capital     0.25 years

Separately acquired intangible assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives.

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

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.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss.

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

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

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

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

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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

Basic financial liabilities, including creditors and loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

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

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of work in progress.

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.

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 pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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 as follows.

At each balance sheet date, management review each contract individually based on the total contract value, the amounts invoiced up to the year end, the costs incurred up to the year end and the expected post year end costs to complete the contract.

Based upon the above information, management will estimate the expected profit on a contract and will include an element of profit on the contract at the year end by reference to the stage of completion of each contract at the balance sheet date.

Amortisation of negative goodwill

Where negative goodwill arises on acquisition, the directors assess the useful life of the assets purchased as part of the acquisition and use this to determine the period over which negative goodwill is to be amortised. Where assets acquired relate to cash and short term working capital the directors determine a period of 0.25 years over which this should be amortised in line with the working capital cycle of the business.

All of the group's turnover is derived from the principal activities as outlined on page 1.

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 5).

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:

During the year and as part of a group restructure, Project Group UK Limited acquired Project Furniture Limited which resulted in the recognition of negative goodwill. The negative goodwill has been fully amortised during the year in line with the estimated useful economic life of the assets and liabilities acquired, which were predominantly cash and short-term working capital.

During the year and as part of a group restructure, Project Group UK Limited acquired Project Furniture Limited which resulted in the current year additions noted.

Details of the company's subsidiaries at 31 December 2024 are as follows:

The registered office for all subsidiaries is Dalton House, 17 Harrison Road, Halifax, HX1 2AF.

Project Studio Limited (company registration number 13677381) and Project Group Investments Limited (company registration number 15710021) have taken the exemption in Section 479A of the Companies Act 2006 ("the Act") from the requirements in the Act for their individual accounts to be audited for the period ended 31 December 2024 . The guarantee given by the company under Section 479A of the Act is disclosed in Note 23.

Group bank loans and overdrafts of £341,964 (2023: £155,434) comprise of two external loans from Mercia Asset Management and a commercial mortgage. One of the loans is repayable over a 3 year period and incurs a fixed interest rate of 7% per annum; the other is repayable over a 5 year period and incurs a fixed interest rate of 10.05% per annum. The commercial mortgage is repayable over a 15 year period and incurs interest charged at base rate + 2.35% per annum. The mortgage is secured by way of a legal charge over the property to which it relates.

Group bank loans and overdrafts of £1,738,455 (2023: £192,742) comprise of two external loans from Mercia Asset Management and a commercial mortgage. One of the loans is repayable over a 3 year period and incurs a fixed interest rate of 7% per annum; the other is repayable over a 5 year period and incurs a fixed interest rate of 10.05% per annum. The commercial mortgage is repayable over a 15 year period and incurs interest charged at base rate + 2.35% per annum. The mortgage is secured by way of a legal charge over the property to which it relates.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

A detailed analysis of the rights attaching to each is detailed in the company's most recent Statement of Capital, as filed at Companies House.

On 10 October 2024 the group acquired 100% of the issued capital of Project Furniture Limited.

In the opinion of the directors there was no difference between the book value and the fair value of the net assets acquired.

Group

The group has guaranteed borrowings with a fixed and floating charge. The borrowings at 31 December 2024 amounted to £2,080,419 (2023: £348,176).

Subsidiary audit exemption

In order for the company's subsidiaries, Project Studio Limited and Project Group Investments Limited, to take the audit exemption in Section 479A of the Companies Act 2006, the company has guaranteed all outstanding liabilities of Project Studio Limited and Project Group Investments Limited at 31 December 2024 until those liabilities are satisfied in full.

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:

During the year the group entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

Dividends totalling £503,193 (2023 - £398,110) were paid in the year in respect of shares held by the company's directors and connected persons.

From 10 October 2024 and following a group restructure, the company's ultimate parent company is Project Group UK Holdings Limited. The consolidated financial statements are available from the registered office, Dalton House, 17 Harrison Road, Halifax, HX1 2AF.