REGISTERED NUMBER: 12195761 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

SMARTSOURCING GROUP LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

7

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

18

DIRECTORS:

A R Martin

Ms J M Hall

REGISTERED OFFICE:

Tanglewood

90-92 Vicarage Hill

South Benfleet

Essex

SS7 1PE

REGISTERED NUMBER:

12195761 (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.

SmartSourcing Group Limited was incorporated as a holding company to enable the existing SmartSourcing management team to buy out the shareholders not actively involved in the business. The directors believe that this will enable the business to further motivate and retain its key personnel to build on the historic success.

On 6 March 2020 the company acquired the entire share capital of SmartSourcing Limited in exchange for a consideration comprising ordinary shares to the remaining shareholders, and cash and redeemable preference shares to the outgoing shareholders.

The redeemable preference shares comprised 2,839,898 non-voting shares of £1 each with a fixed 1% dividend coupon. They are capable of earlier redemptions at the Chairman's (A R Martin) discretion but no later than 6 March 2030. They also could not be redeemed until the company's loan facility with HSBC Plc had been paid in full.

During the year ended 31 December 2024, the company has continued its preference share obligations with four further quarterly repayments during the period, with a view to early redemption.

The group enjoys very strong relationships with its clients and service providers. It intends to continue to manage its affairs on a prudent basis and to preserve a strong asset base.

REVIEW OF BUSINESS

The company is a pure holding company that does not trade on its own account. It has a single trading subsidiary, SmartSourcing Limited, and hence these comments reflect the trading activities of SmartSourcing Limited.

For accounting purposes, these accounts include consolidated accounts for the group. These reflect various accounting adjustments that are required by accounting standards that do not impact on the cash that is generated by the business.

In summary, the group results for the year are as follows:

Turnover

£26,597,341

Subsidiary's profit

£453,008

Parent company costs

(£136,922

)

Goodwill amortisation

(£284,661

)

Consolidated loss before tax

(£31,425

)

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.

SHARE CAPITAL AND SHAREHOLDERS' FUNDS

As explained above, the management buyout was largely financed by issuing preference shares to the outgoing shareholders. Whilst the company anticipates that it will be in a position to redeem the preference shares over the next few years, it has limited obligations to do so.

As can be seen from the balance sheet on page 12, Shareholders' funds are reported at a figure of £1,297,521, whilst the preference shares have to be included within creditors for accounting purposes. When the preference shares and resultant reserves are taken into account, the total funds available to the ordinary and preference shareholders aggregate to £2,571,033.

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 Group Limited: Stakeholder engagement

As the board of directors at SmartSourcing Group 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 group'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 group 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 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:

Ms J M Hall - Director

15 September 2025

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

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

Ms J M Hall

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

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

ON BEHALF OF THE BOARD:

Ms J M Hall - Director

15 September 2025

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2024 and of the group's loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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

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

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. 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

2,025,009

1,964,990

OPERATING PROFIT/(LOSS)

5

147,076

(10,605

)

Interest receivable and similar income

-

152

147,076

(10,453

)

Interest payable and similar expenses

6

115,651

173,258

PROFIT/(LOSS) BEFORE TAXATION

31,425

(183,711

)

Tax on profit/(loss)

7

104,817

59,074

LOSS FOR THE FINANCIAL YEAR

(73,392

)

(242,785

)

Loss attributable to:

Owners of the parent

(73,392

)

(242,785

)

LOSS FOR THE YEAR

(73,392

)

(242,785

)

OTHER COMPREHENSIVE INCOME

Share option costs recognised

26,000

(71,700

)

Income tax relating to other comprehensive income

(6,500

)

17,930

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

19,500

(53,770

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(53,892

)

(296,555

)

Total comprehensive income attributable to:

Owners of the parent

(53,892

)

(296,555

)

FIXED ASSETS

Intangible assets

9

1,473,861

1,758,522

Tangible assets

10

3,788

7,111

Investments

11

-

-

1,477,649

1,765,633

CURRENT ASSETS

Debtors

12

2,801,460

2,740,882

Cash at bank and in hand

222,716

159,562

3,024,176

2,900,444

CREDITORS

Amounts falling due within one year

13

2,295,832

2,497,058

NET CURRENT ASSETS

728,344

403,386

TOTAL ASSETS LESS CURRENT LIABILITIES

2,205,993

2,169,019

CREDITORS

Amounts falling due after more than one year

14

908,472

817,606

CAPITAL AND RESERVES

Called up share capital

18

101,797

101,797

Other reserves

19

64,396

143,419

Share option reserve

19

39,900

20,400

Retained earnings

19

1,091,428

1,085,797

SHAREHOLDERS' FUNDS

1,297,521

1,351,413

2,205,993

2,169,019

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:

Ms J M Hall - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

4,705,485

4,705,485

4,705,485

4,705,485

CURRENT ASSETS

Cash at bank

106

106

CREDITORS

Amounts falling due within one year

13

3,198,391

3,178,335

NET CURRENT LIABILITIES

(3,198,285

)

(3,178,229

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,507,200

1,527,256

CREDITORS

Amounts falling due after more than one year

14

908,472

817,606

CAPITAL AND RESERVES

Called up share capital

18

101,797

101,797

Other reserves

19

64,396

143,419

Share option reserve

19

39,900

20,400

Retained earnings

19

392,635

444,034

SHAREHOLDERS' FUNDS

598,728

709,650

1,507,200

1,527,256

Company's loss for the financial year

(130,422

)

(98,220

)

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:

Ms J M Hall - Director

Called up

Share

share

Retained

Other

option

Total

capital

earnings

reserves

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

101,797

1,180,705

291,296

74,170

1,647,968

Changes in equity

Total comprehensive income

-

(94,908

)

(147,877

)

(53,770

)

(296,555

)

Balance at 31 December 2023

101,797

1,085,797

143,419

20,400

1,351,413

Changes in equity

Total comprehensive income

-

5,631

(79,023

)

19,500

(53,892

)

Balance at 31 December 2024

101,797

1,091,428

64,396

39,900

1,297,521

Called up

Share

share

Retained

Other

option

Total

capital

earnings

reserves

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

101,797

394,377

291,296

74,170

861,640

Changes in equity

Total comprehensive income

-

49,657

(147,877

)

(53,770

)

(151,990

)

Balance at 31 December 2023

101,797

444,034

143,419

20,400

709,650

Changes in equity

Total comprehensive income

-

(51,399

)

(79,023

)

19,500

(110,922

)

Balance at 31 December 2024

101,797

392,635

64,396

39,900

598,728

Cash flows from operating activities

Cash generated from operations

1

435,743

665,007

Interest paid

(16,579

)

(24,198

)

Tax paid

(38,910

)

(121,483

)

Net cash from operating activities

380,254

519,326

Cash flows from investing activities

Purchase of tangible fixed assets

(720

)

(3,566

)

Interest received

-

152

Net cash from investing activities

(720

)

(3,414

)

Cash flows from financing activities

Preference shares redeemed

(316,380

)

(420,397

)

Net cash from financing activities

(316,380

)

(420,397

)

Increase in cash and cash equivalents

63,154

95,515

Cash and cash equivalents at beginning of year

2

159,562

64,047

Cash and cash equivalents at end of year

2

222,716

159,562

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit/(loss) before taxation

31,425

(183,711

)

Depreciation charges

288,703

288,636

Non-cash costs

26,000

(71,700

)

Finance costs

115,651

173,258

Finance income

-

(152

)

461,779

206,331

(Increase)/decrease in trade and other debtors

(60,578

)

252,686

Increase in trade and other creditors

34,542

205,990

Cash generated from operations

435,743

665,007

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

222,716

159,562

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

159,562

64,047

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank and in hand

159,562

63,154

222,716

159,562

63,154

222,716

Debt

Debts falling due within 1 year

(519,274

)

258,186

(261,088

)

Debts falling due after 1 year

(817,606

)

(90,866

)

(908,472

)

(1,336,880

)

167,320

(1,169,560

)

Total

(1,177,318

)

230,474

(946,844

)

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Basis of consolidation

The group accounts consolidate the affairs of SmartSourcing Limited since acquisition on 6 March 2020. The subsidiary accounts have been included in the group figures under the acquisition method of accounting.

SmartSourcing Limited own 100% of E-SmartSourcing Limited (company number: 05622845), but due to the immaterial nature of E-SmartSourcing Limited, the financial figures are not included within the group accounts.

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.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2020, is being amortised evenly over its estimated useful life of ten years.

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

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.

Preference shares

On 6 March 2020 the company issued 1% preference shares with annual redemption instalments and a 10-year maximum life. In accordance with FRS 102, these have been recognised as a financial liability and interest cost in the company's accounts, based on a comparable 5% amortised cost profile. The initial discount on creation was recognised as a capital contribution reserve, which is being unwound over the life of the liability.

Share option reserve

The company operates an approved enterprise management incentive scheme - further details of which can be found in the notes.

The fair value of that scheme is calculated based upon the underlying subsidiary's most recent trading results, the parent company's outstanding finance liabilities and an updated view on the timescale, and likely quantum, of exercise of those options.

The value of those options has been recognised as a separate Share option reserve, net of estimated tax reliefs arising upon exercise.

3.

TURNOVER

The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the group.

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

1,238,653

1,189,547

Social security costs

136,211

144,293

Other pension costs

50,848

55,466

1,425,712

1,389,306

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

139,871

124,751

Directors' pension contributions to money purchase schemes

5,368

5,346

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

Money purchase schemes

1

1