REGISTERED NUMBER: 04359421 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

SMARTSOURCING LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTORS:

A R Martin

J M Hall

L J Boulton-Brown

J E Grossick

J Hemmings

REGISTERED OFFICE:

Tanglewood

90-92 Vicarage Hill

South Benfleet

Essex

SS7 1PE

REGISTERED NUMBER:

04359421 (England and Wales)

AUDITORS:

Goldwyns Limited

Statutory Auditors and Chartered Accountants

Rutland House

90-92 Baxter Avenue

Southend on Sea

Essex

SS2 6HZ

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

REVIEW OF BUSINESS

The results for the year and financial position of the company are shown in the annexed financial statements.

- Turnover increased in the year by 10% to £26.6m

- Operating profit increased in the year by 129% to £0.5m

- Shareholders' funds increased to £3.9m

The UK experienced a continuation of economic downturn during 2024 impacting both public and private sector. While the UK gained political stability there was a period of low activity within the public sector as projects and budgets went under scrutiny. Private sector lacked business confidence with many making operational changes to control or reduce spend. The Autumn budget did not increase business confidence and particularly impacted private sector with changes to employers' NI and increased minimum wage levels reducing profitability and stifling growth. All of these challenges have hit the recruitment sector across permanent and contract areas and there is a growing number of contractors on the market unable to secure their next engagement due to low demand.

SmartSourcing, however, while impacted by the above, benefitted from their strong position on public sector frameworks with a small number of these clients continuing to increase headcount on critical projects. SmartSourcing 's successful recruitment operation adjusted to ensure a higher level of success on fewer roles which lead to our return to growth during 2024.

SmartSourcing also reviewed our operational costs and reduced overheads during 2024 to ensure we remained in a good position to withstand the turbulence of the market.

SmartSourcing heavily invested in training in 2024 to build internal confidence and capability.

Consultancy demand has also been lower during 2024 but all managed solutions have been successfully delivered or continue to meet client service requests, increasing our case studies and further evidencing credible consultancy solutions as an alternative to contingent labour options.

Our strategy is to continue to expand our client base and look to grow both agency and consultancy business when the market returns to growth. Compared to our competitors our reputation in the market remains strong. We take a consultative approach and aim to excel in our service levels whilst supplying high quality contract and permanent resource in both the public and private sectors.

Additionally, we continue to look to technology to build our operational capability.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the successful execution of the company's strategy are subject to a number of key risks:

- economic downturn;

- budget cuts and reduced spend in the public sector;

- political changes increasing financial pressure on businesses;

- high interest rates; and

- IR35.

SECTION 172(1) STATEMENT

SmartSourcing Limited: Stakeholder engagement

As the board of directors at SmartSourcing Limited we have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider in good faith to promote the company's success for the benefit of its members as a whole and to have regard to the long-term effect of our decisions on the company and its stakeholders. This statement addresses the ways in which we as a board support this responsibility.

Promoting the company's success for its members

SmartSourcing Limited, founded in 2002, set up as a dynamic and innovative recruitment agency specialising in the provision of freelance contractors, independent consultants, fixed term and permanent resource across ICT, digital, project and programme management and functional business disciplines. In 2018 we expanded into consultancy services provision and since have successfully delivered many managed service projects.

Our industry knowledge and inhouse IT capability enabled our investment in our own bespoke technology which uniquely supports our operation increasing productivity. We are building a new look recruitment system using the latest technologies for greater functionality and to futureproof our inhouse capability, remaining leading edge.

SmartSourcing operate in both the public and private sector supporting our clients all over the UK from our Midlands based national recruitment centre. We are proud to support the Social Value Act providing employment in an area of high unemployment.

In 2021 we have established our Carbon Neutral plan which is now visible on our website and in October 2024 were awarded the Silver accreditation by Positive Planet. The goal is to achieve net-zero by 2035.

The directors run the business with considerable professionalism, honesty and integrity and our staff are all highly experienced and supportive of our service lead approach. It is notable that unlike others in our market we experience an exceptionally low rate of attrition.

The board at SmartSourcing continue to make decisions based on long term objectives and our enviable reputation in the market shows that we have become a trusted supplier synonymous with professionalism, honesty and integrity.

ENGAGEMENT WITH EMPLOYEES

SmartSourcing benefit from a highly skilled recruitment and business development team with significant years of working in our industry. We also have our own inhouse IT capability which enables us to further develop our own recruitment system as needs evolve. Our highly skilled accounts team are highly commended for our fast and efficient payment services to all our contractors. Recruitment and retention of staff is therefore a critical business activity. We help to engage with team members by:

-

good levels of remuneration, job security, and rewarding performance with bonuses at all levels;

-

providing training and career development support;

-

issuing (parent) EMI options to all existing staff members; and

-

ensuring that staff from each department are present and involved in all management meetings and are consulted for significant decisions.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

Our customers and suppliers

We pride ourselves on our exceptional knowledge of the market, our delivery capability and our focus on the highest levels of customer service. The SmartSourcing team build strong supportive relationships with our contractors, consultants and clients and much of our business has evolved from recommendations. We aim to be different, more service lead in our approach and our reputation in the market for our excellent customer service, honesty and integrity shows that this is recognised.

Our community

SmartSourcing are proud to be an SME who takes care of our staff offering job security, a supportive environment, a rewarding career and remuneration package. We are committed to the Social Value Act offering employment in an area of high unemployment and as a company taking part in supporting both local and national charities such as donations to the local hospice, crisis supporting the homeless, dementia, MS and many more.

Our planet

Smartsourcing have been awarded ISO 14001 and are proud to consider the environment in all that we do. Our aim is to store our records electronically and to only print if essential. Our paper is recycled and our waste is securely shredded and disposed of by suppliers who also carry the environmental accreditation. Meetings wherever possible are carried out through video conferencing in order to lower our carbon footprint. We are also proud to have in place a Carbon Neutral Plan, partnering with Positive Planet to meet our ongoing obligations.

RESEARCH AND DEVELOPMENT

SmartSourcing continues to invest in our bespoke, E-resourcing technologies and systems to increase our capabilities and market edge and underpin accreditation to ISO 9001 (Quality), ISO 14001 (Environmental) and ISO 27001 (Information Security Management). We have also increased our Cyber Essentials status to Cyber Essentials Plus.

ON BEHALF OF THE BOARD:

J M Hall - Director

15 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a specialist recruitment and consultancy organisation.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

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

A R Martin

J M Hall

L J Boulton-Brown

J E Grossick

J Hemmings

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company 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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Goldwyns Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J M Hall - Director

15 September 2025

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its 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 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 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

In order to address the risks of misstatements in respect of irregularities, including fraud, we have:

-

obtained an understanding of the key laws and regulations applicable to the company, including the Companies Act 2006 and applicable taxation legislation;

-

assessed the company's own internal controls and systems for the prevention and detection of irregularities and particularly the control environment within which they operate;

-

determined a materiality level and audit approach sufficient to identify most irregularities, including fraud, that may occur;

-

considered our own involvement in the preparation of the company's statutory financial statements and taxation returns;

-

conducted audit verification work, on a sample basis, on the key audit areas and risks we have identified; and

-

reflected on the outcome of our work, and the likelihood that conclusions drawn may be indicative of other areas of potential irregularity.

We therefore consider our audit approach has been sufficient to detect material irregularities, including fraud.

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

Use of our report

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

S T Blundell FCA (Senior Statutory Auditor)

for and on behalf of Goldwyns Limited

Statutory Auditors and Chartered Accountants

Rutland House

90-92 Baxter Avenue

Southend on Sea

Essex

SS2 6HZ

15 September 2025

TURNOVER

3

26,597,341

24,080,364

Cost of sales

24,425,256

22,125,979

GROSS PROFIT

2,172,085

1,954,385

Administrative expenses

1,702,499

1,749,098

OPERATING PROFIT

5

469,586

205,287

Interest receivable and similar income

-

152

469,586

205,439

Interest payable and similar expenses

6

16,579

24,198

PROFIT BEFORE TAXATION

453,007

181,241

Tax on profit

7

111,317

41,144

PROFIT FOR THE FINANCIAL YEAR

341,690

140,097

PROFIT FOR THE YEAR

341,690

140,097

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

341,690

140,097

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

3,788

7,111

Investments

10

-

-

3,788

7,111

CURRENT ASSETS

Debtors

11

5,637,190

5,248,383

Cash at bank and in hand

222,610

159,456

5,859,800

5,407,839

CREDITORS

Amounts falling due within one year

12

1,933,171

1,826,223

NET CURRENT ASSETS

3,926,629

3,581,616

TOTAL ASSETS LESS CURRENT LIABILITIES

3,930,417

3,588,727

CAPITAL AND RESERVES

Called up share capital

15

156,250

156,250

Share premium

16

43,750

43,750

Retained earnings

16

3,730,417

3,388,727

SHAREHOLDERS' FUNDS

3,930,417

3,588,727

The financial statements were approved by the Board of Directors and authorised for issue on 15 September 2025 and were signed on its behalf by:

J M Hall - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

156,250

3,248,630

43,750

3,448,630

Changes in equity

Total comprehensive income

-

140,097

-

140,097

Balance at 31 December 2023

156,250

3,388,727

43,750

3,588,727

Changes in equity

Total comprehensive income

-

341,690

-

341,690

Balance at 31 December 2024

156,250

3,730,417

43,750

3,930,417

1.	STATUTORY INFORMATION

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

The place of business differs to the registered office address. The company's place of business is in Newcastle-under-Lyme.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

Exemption has been taken from preparing a cash flow statement on the grounds that the parent company includes the subsidiary in its published financial statements.

Turnover

Turnover represents the value of services provided to the extent that there is a right to consideration and is recorded at the value of the consideration due. Partially completed services are recognised on a proportion of the total expected consideration at completion.

Intangible assets

Acquired intellectual property rights are recognised on the balance sheet as intangible assets at cost, and are amortised evenly over their estimated useful life of five years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Office equipment

-

33.33% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less any provision for impairment.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024

2023

£

£

Contract fees

26,416,865

23,878,467

Permanent placement fees

180,476

201,897

26,597,341

24,080,364

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

1,212,654

1,261,247

Social security costs

136,211

144,293

Other pension costs

50,848

55,466

1,399,713

1,461,006

The average number of employees during the year was as follows:

2024

2023

Directors

5

5

Administration

20

22

25

27

2024

2023

£

£

Directors' remuneration

388,900

370,920

Directors' pension contributions to money purchase schemes

16,372

16,494

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

4

4

Information regarding the highest paid director is as follows:

2024

2023

£

£

Emoluments etc

117,071

107,614

Pension contributions to money purchase schemes

5,367

5,346

5.	OPERATING PROFIT

The operating profit is stated after charging:

2024

2023

£

£

Other operating leases

17,236

16,332

Depreciation - owned assets

4,043

3,975

Auditors' remuneration - audit fees

5,750

5,500

Auditors' remuneration - tax compliance services

1,209

1,530

Auditors' remuneration - other non-audit services

1,200

1,000

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Discounting interest

16,579

24,198

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

111,317

41,144

Tax on profit

111,317

41,144

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

£

Profit before tax

453,007

181,241

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 25%)

113,252

45,310

Effects of:

Expenses not deductible for tax purposes

299

(841

)

Capital allowances in excess of depreciation

-

(6

)

Depreciation in excess of capital allowances

729

-

Group relief

(2,963

)

(733

)

Effects of small company rates

-

(2,586

)

Total tax charge

111,317

41,144

8.	INTANGIBLE FIXED ASSETS

Patents

and

licences

£

COST

At 1 January 2024

and 31 December 2024

125,000

AMORTISATION

At 1 January 2024

and 31 December 2024

125,000

NET BOOK VALUE

At 31 December 2024

-

At 31 December 2023

-

9.	TANGIBLE FIXED ASSETS

Office

equipment

£

COST

At 1 January 2024

88,196

Additions

720

At 31 December 2024

88,916

DEPRECIATION

At 1 January 2024

81,085

Charge for year

4,043

At 31 December 2024

85,128

NET BOOK VALUE

At 31 December 2024

3,788

At 31 December 2023

7,111

10.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2024

and 31 December 2024

100

PROVISIONS

At 1 January 2024

and 31 December 2024

100

NET BOOK VALUE

At 31 December 2024

-

At 31 December 2023

-

The company's investments at the Balance Sheet date in the share capital of companies include the following:

E-Smartsourcing Limited

Registered office: United Kingdom

Nature of business: Dormant

%

Class of shares:

holding

Ordinary

100.00

2024

2023

£

£

Aggregate capital and reserves

100

100

Due to the immaterial nature of its subsidiaries, the company is exempt from preparing consolidated accounts under Section 405 of the Companies Act 2006.

11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

2,789,973

2,620,840

Amounts owed by group undertakings

2,835,730

2,507,501

Other debtors

445

3,336

VAT

-

72,604

Prepayments

11,042

44,102

5,637,190

5,248,383

At 31 December 2024 £1,157,811 (2023 - £1,267,582) of the trade debtor balance was subject to financing agreements by HSBC Invoice Finance (UK) Limited. Although there was no usage of the facility at the year, cash advances made against these agreements are included separately under creditors.

Although there are no formal terms deferring repayment, the majority of the balance owed by group undertakings is unlikely to be recovered within the next twelve months.

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade creditors

1,464,433

1,716,624

Tax

111,318

38,911

Social security and other taxes

53,691

43,363

VAT

265,199

-

Other creditors

7,354

159

Accrued expenses

31,176

27,166

1,933,171

1,826,223

13.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2024

2023

£

£

Within one year

8,500

-

Between one and five years

34,000

-

42,500

-

14.	SECURED DEBTS

The following secured debts are included within creditors:

2024

2023

£

£

The company has granted a fixed charge and a floating charge to HSBC Invoice Finance (UK) Limited and HSBC UK Bank plc. The company has also assigned its rights under its contract with HSBC Invoice Finance (UK) Limited to HSBC Bank plc as security for all of its debts and liabilities owed to HSBC UK Bank plc.

As there was no use of this facility at the year end (2023 - £nil), there was also no current debt secured by those charges.