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Registered number: 04740661









XCEDE LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
XCEDE LIMITED
 
 
COMPANY INFORMATION


Directors
A Blaney 
A Goodman 
A Marsh 
S Smith 




Registered number
04740661



Registered office
24 Eversholt Street

London

NW1 1AD




Independent auditors
Harris & Trotter LLP
Chartered Accountants

101 New Cavendish Street

1st Floor South

London

United Kingdom

W1W 6XH





 
XCEDE LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Balance Sheet
10
Statement of Changes in Equity
11
Analysis of Net Debt
12
Notes to the Financial Statements
13 - 29


 
XCEDE LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The Company is a global recruitment specialist operating globally. The Company operates under  the brand of Xcede, specialising in temporary and permanent employment agency activities.

Business review
 
The results of the Company for the year, as set out on page 9 show a profit on ordinary activities before tax of £539,872 (2023: loss of £1,751,602)
 

Business environment
 
The Company is well positioned to deliver talent inside UK market and via the Group's global reach on the international market. Demand for talent across the areas the business supports remains strong, and the Group is confident that it is properly positioned to continue growth.

Financial key performance indicators
 
The Company has continued to make progress towards its strategic objectives.  The Board monitors progress by reference to these key KPI’s (£000) amongst others:
Revenue - £34,600 (2023: £38,639)
Permanent NFI - £4,410 (2023: £5,476)
Contract NFI - £4,930 (2023: £4,841)
Gross Profit - £9,340 (2023: £10,317)
Administration Expenses - £11,253 (2023: £13,574)
Gross Profit %  - 27.0% (2023: 26.7%)
 

Strategy
 
The Company's focus is continued growth in its core brands, with a growth in permanent and contract revenues. The Company has the capability to service multiple areas of demand within large clients and supporting these clients will allow strong revenue and profit growth through depth of relationship within such customers.

Page 1

 
XCEDE LIMITED
 

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

Going concern
 
To asses the reasonableness of the going concern basis of preparation, the Directors have prepared forecasts for the period to December 2027 for the group which the company is part of. These forecasts have been prepared considering the sectors that the group operates, the continued growth the group is experiencing and the potential uncertainty due to global geopolitical events. Throughout the going concern review period as determined by the Directors, the Group meets its financial covenants and is forecast to meet its liabilities as they fall due. The Directors continue to closely monitor the Group funding requirements and are working closely with their significant shareholder and fund providers to ensure that the Group is appropriately funded over the next 12 to 18 months.
The company's management have on a Group level prepared detailed forecasts and cash flow projections for a period of at least 12 months from the date of approval of these financial statements. These forecasts  incorporate expected trading performance and demonstrate a continued increase in headroom of approximately
£700k by the end of 2025, excluding any potential recovery from Northvolt AB. The company has a proven track record of effective working capital management and continues to implement robust controls to monitor and maintain liquidity. The overall debtor days average at 53.5 days, with non-notified debt dropping to 7% of total  by the end of 2025. The overall potential performance of the company in the following year is positive, with EBITDA projecting to increase to £2m, a rise of £328k (19.1%) driven by a reduction in direct costs of 18% and overheads of 11%. Despite the overall drop in sales, the sharper reduction in costs explains the EBITDA increase.
After reviewing the forecasts, considering available financing facilities, and assessing key sensitivities, the directors believe the Group has adequate resources to continue operating for the foreseeable future. Based on this assessment, they have concluded that it is appropriate to prepare the financial statements on a going concern basis. The directors have also considered the limitations of any financial covenants, and conclude that the group is not at risk of breaching any financial covenants and expects to remain in compliance for the foreseeable future. 
On this basis, the Directors have a reasonable expectation that the Group will have sufficient cash flow and available resources to continue operating for at least the next 12 months from the approval date of these financial statements. Accordingly, the Group and Company continue to adopt the going concern basis in preparing the financial statements.


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



S Smith
Director

Date: 8 August 2025

Page 2

 
XCEDE LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £539,873 (2023 - loss £1,751,601).

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who served during the year were:

A Blaney 
A Goodman 
A Marsh 
S Smith 

Page 3

 
XCEDE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditors

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

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

Auditors

The auditorsHarris & Trotter LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





S Smith
Director

Date: 8 August 2025

Page 4

 
XCEDE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF XCEDE LIMITED
 

Opinion


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


In our opinion the financial statements:


give a true and fair view of the state of the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.


Page 5

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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the 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.


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 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, 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 Directors' Responsibilities Statement set out on page 3, 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 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.


Page 6

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


Auditors' responsibilities for the audit of the financial statements
 

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


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

Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.
 
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.
 
Audit response to risks identified:
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
 
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
 
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.


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


Page 7

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


Use of our report
 

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





Daniel Walters (Senior Statutory Auditor)
  
for and on behalf of
Harris & Trotter LLP
 
Chartered Accountants
  
101 New Cavendish Street
1st Floor South
London
United Kingdom
W1W 6XH

8 August 2025
Page 8

 
XCEDE LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
34,600,395
38,638,531

Cost of sales
  
(25,259,821)
(28,321,726)

Gross profit
  
9,340,574
10,316,805

Administrative expenses
  
(11,253,100)
(13,574,025)

Exceptional administrative expenses
 12 
1,868,665
(265,591)

Other operating income
 5 
1,061,440
2,244,367

Operating profit/(loss)
 6 
1,017,579
(1,278,444)

Interest payable and similar expenses
 10 
(477,706)
(473,157)

Profit/(loss) before tax
  
539,873
(1,751,601)

Profit/(loss) for the financial year
  
539,873
(1,751,601)

Other comprehensive income for the year
  

Total comprehensive income for the year
  
539,873
(1,751,601)

The notes on pages 13 to 29 form part of these financial statements.

Page 9

 
XCEDE LIMITED
REGISTERED NUMBER: 04740661

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
  
131,102
-

Tangible assets
 14 
36,865
78,794

  
167,967
78,794

Current assets
  

Debtors: amounts falling due within one year
 15 
10,070,976
15,388,950

Cash at bank and in hand
 16 
277,748
60,328

  
10,348,724
15,449,278

Creditors: amounts falling due within one year
 17 
(23,065,302)
(28,616,556)

Net current liabilities
  
 
 
(12,716,578)
 
 
(13,167,278)

Total assets less current liabilities
  
(12,548,611)
(13,088,484)

Provisions for liabilities
  

Deferred tax
 19 
(42,000)
(42,000)

  
 
 
(42,000)
 
 
(42,000)

Net liabilities
  
(12,590,611)
(13,130,484)


Capital and reserves
  

Called up share capital 
 20 
213
213

Share premium account
  
15,002
15,002

Profit and loss account
  
(12,605,826)
(13,145,699)

  
(12,590,611)
(13,130,484)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 8 August 2025.




S Smith
Director

The notes on pages 13 to 29 form part of these financial statements.

Page 10

 
XCEDE LIMITED
 

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


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 January 2023
213
15,002
(11,394,098)
(11,378,883)


Comprehensive income for the year

Loss for the year
-
-
(1,751,601)
(1,751,601)
Total comprehensive income for the year
-
-
(1,751,601)
(1,751,601)



At 1 January 2024
213
15,002
(13,145,699)
(13,130,484)


Comprehensive income for the year

Profit for the year
-
-
539,873
539,873
Total comprehensive income for the year
-
-
539,873
539,873


At 31 December 2024
213
15,002
(12,605,826)
(12,590,611)


The notes on pages 13 to 29 form part of these financial statements.

Page 11

 
XCEDE LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024




At 1 January 2024
Cash flows
At 31 December 2024
£

£

£

Cash at bank and in hand

60,328

217,419

277,747


60,328
217,419
277,747

The notes on pages 13 to 29 form part of these financial statements.

Page 12

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

1.


General information

Xcede Limited is a private company limited by shares incorporated in England and Wales. The registered office is 24 Eversholt Street, London, NW1 1AD.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Exemption from preparing consolidated financial statements

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:
• Section 7 'Statement of Cash Flows': Presentation of a statement of cash flow and related notes and disclosures:
• Section 33 'Related Party Disclosures': Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Xcede Global Holdings Limited (Company number 11996176). These consolidated financial statements are available from its registered office, 24 Eversholt Street, London, England, NW1 1AD.

Page 13

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

2.Accounting policies (continued)

 
2.3

Going concern

To assess the reasonableness of the going concern basis of preparation, the Directors  have  prepared forecasts for the period to December 2027 for the group which the company is part of. These forecasts have been prepared considering the sectors that the group operates, the continued growth the group is experiencing and the potential uncertainty due to global geopolitical events. Throughout the going concern review period as determined by the Directors, the Group meets its financial covenants and is forecast to meet its liabilities as the fall due. The Directors continue to closely monitor the-group funding requirements and are working closely with their significant shareholder and fund providers to ensure that the Group is appropriately funded  over the next 12 to 18 months.
On this basis, the Directors have a reasonable expectation that the Group will have sufficient cash flow and available resources to continue operating for at least 12 months from the approval date of these financial statements. Accordingly, the Group and the Company continues to adopt the going concern basis in preparing its financial statements.
The ultimate shareholders have provided assurances that they will continue to support the company going forward for a period of not less than 12 months from the signing of these financial statements through not seeking repayment of their loans during this period. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 14

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

2.Accounting policies (continued)

 
2.5

Revenue

Revenue is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue arising from the placement of permanent candidates is recognised when the company has fulfilled its contractual obligations in accordance with the underlying contracts. Depending on the terms and conditions agreed with the hiring client. this is either on the start date of a candidate's employment, or when a candidate accepts an offer of employment  and a start date has been determined.
Revenue arising from temporary placements is recognised over the period that temporary staff are provided. Provision is made for the expected cost of meeting obligations where temporary workers have submitted approved timesheets for the specified contractual period.

 
2.6

Finance costs

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

 
2.7

Borrowing costs

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

 
2.8

Pensions

Defined contribution pension plan

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

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

Page 15

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

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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


 
2.10

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.11

Tangible fixed assets

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

Page 16

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

2.Accounting policies (continued)


2.11
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives. .

Depreciation is provided on the following basis:

Long-term leasehold property
-
Over lifetime of the lease
Plant and machinery
-
2 years straight line method
Fixtures and fittings
-
25% reducing balance method
Computer equipment
-
3 years straight line method

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

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

 
2.12

Debtors

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

 
2.13

Cash and cash equivalents

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

 
2.14

Creditors

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

 
2.15

Provisions for liabilities

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

Page 17

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

2.Accounting policies (continued)

 
2.16

Financial instruments

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

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

 

Page 18

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

2.Accounting policies (continued)


2.16
Financial instruments (continued)

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

Basic financial liabilities

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

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

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

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

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

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

Page 19

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

2.Accounting policies (continued)


2.16
Financial instruments (continued)

Derecognition of financial liabilities

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


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company'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 affect both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Intercompany Recoverability 
The recoverability of the amounts owed from group entities has been based on the review of the trading activities and forecasts for the next 12 months for the wider group and entities the debt relates to in order to ensure the group lending will be continued and no issues in the ability of the groups liquidity and going concern as a whole.
Creditor note provisioning
Credit note provisions in relation to permanent placements that are recognised on acceptance date and are included at the year end have been based on the value of credit notes raised in 2025 for invoices recognised in 2024.
 

Page 20

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

4.


Turnover

2024
2023
£
£

Contract sales
30,190,298
33,345,758

Permanent sales
4,409,524
5,290,843

Other sales
573
1,930

34,600,395
38,638,531


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
29,241,320
33,533,662

Rest of Europe
4,806,498
4,781,187

Rest of the world
552,577
323,682

34,600,395
38,638,531



5.


Other operating income

2024
2023
£
£

Other operating income
1,061,440
2,244,367

1,061,440
2,244,367



6.


Operating profit/(loss)

The operating profit/(loss) is stated after charging:

2024
2023
£
£

Depreciation
76,795
188,578

Exchange differences
557,375
(24,804)

Operating lease charges
554,943
566,254

Provision against amounts owed by subsidiary undertakings
-
1,909,364

Page 21

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

7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the financial statements of the Company and its fellow subsidiaries
50,000
50,000

Fees payable to the Company's auditors for the financial statements of the Company's subsidiaries

The auditing of accounts of associates of the Company
-
4,950

All non-audit services not included above
10,000
-


8.


Employees

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


2024
2023
£
£

Wages and salaries
6,357,488
7,277,240

Social security costs
797,067
857,868

Cost of defined contribution scheme
255,400
231,170

7,409,955
8,366,278


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


        2024
        2023
            No.
            No.







Employees
81
92



Directors
4
2

85
94

Page 22

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

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
427,845
766,598

Company contributions to defined contribution pension schemes
100,464
63,950

528,309
830,548


During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £202,123 (2023 - £253,597).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £11,550 (2023 - £NIL).


10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
81,159
34,083

Interest on invoice finance arrangements
396,547
439,074

477,706
473,157


11.


Taxation


2024
2023
£
£



Total current tax
-
-

Deferred tax

Total deferred tax
-
-


-
-
Page 23

 
XCEDE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the same as (2023 - the same as) the standard rate of corporation tax in the UK of 25% (2023 - 25%) as set out below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
539,873
(1,751,602)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
134,969
(411,626)

Effects of:


Expenses not deductible for tax purposes
32,561
558,177

Capital allowances for year in excess of depreciation
(3,820)
32,420

Timing difference on provisions
-
(30,186)

Non-taxable income
(507,925)
-

Unutilised tax losses carried forward
344,215
(148,785)

Total tax charge for the year
-
-


Factors that may affect future tax charges

There were no factors that may affect future tax charges.




12.


Exceptional items

2024
2023
£
£


Write off of intercompany loan accounts
(2,031,701)
-

Other exceptional expenses
163,036
265,591

(1,868,665)
265,591

Other exceptional items are mainly comprised of dilapidation charges and redundancy costs.

Page 24

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

13.


Intangible assets




Computer software

£



Cost


Additions - internal
140,969



At 31 December 2024

140,969



Amortisation


Charge for the year on owned assets
9,867



At 31 December 2024

9,867



Net book value



At 31 December 2024
131,102



At 31 December 2023
-



Page 25

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

14.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2024
111,689
115,061
74,722
515,688
817,160


Additions
19,450
-
-
15,280
34,730


Disposals
(23,520)
-
(14,534)
-
(38,054)



At 31 December 2024

107,619
115,061
60,188
530,968
813,836



Depreciation


At 1 January 2024
99,750
115,061
69,895
453,661
738,367


Charge for the year on owned assets
7,033
-
2,486
57,409
66,928


Disposals
(16,131)
-
(12,193)
-
(28,324)



At 31 December 2024

90,652
115,061
60,188
511,070
776,971



Net book value



At 31 December 2024
16,967
-
-
19,898
36,865



At 31 December 2023
11,940
-
4,828
62,026
78,794


15.


Debtors

2024
2023
£
£


Trade debtors
5,110,771
6,150,129

Amounts owed by group undertakings
2,779,305
5,347,987

Other debtors
80,318
701,927

Prepayments and accrued income
2,100,582
3,188,907

10,070,976
15,388,950


Page 26

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

16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
277,748
60,328

277,748
60,328



17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
369,544
496,407

Amounts owed to group undertakings
15,643,515
18,009,371

Other taxation and social security
465,724
1,380,456

Invoice discounting
4,589,562
5,797,890

Other creditors
182,339
322,868

Accruals and deferred income
1,814,618
2,609,564

23,065,302
28,616,556


The advance received through means of an invoice discounting facility, is a financing agreement  provided by Investec Bank PLC, which is secured against the assets of Xcede Global Holdings Limited Group.

Page 27

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

18.


Financial instruments

2024
2023
£
£

Financial assets


Financial assets measured at fair value through profit or loss
278,281
60,328

Financial assets that are debt instruments measured at amortised cost
7,950,871
12,200,044

8,229,152
12,260,372


Financial Liabilities


Financial liabilities measured at amortised cost
21,250,684
26,006,992


Financial assets measured at fair value through profit or loss comprise of cash at bank.


Financial assets that are debt instruments measured at amortised cost comprise of trade debtors, amounts owed from group undertakings and other debtors.


Financial liabilities measured at amortised cost comprise of trade creditors, other creditors, bank loans and overdrafts and amounts owed to group undertakings.


19.


Deferred taxation




2024


£






At beginning of year
(42,000)



At end of year
(42,000)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Tax losses carried forward
(42,000)
(42,000)

(42,000)
(42,000)

Page 28

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

20.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



21,300 (2023 - 21,300) Ordinary A shares of £0.01 each
213
213



21.


Pension commitments

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administrative fund.
The charge to profit or loss in respect of defined contribution schemes amounted to £255,400 (2023: £231,170)


22.


Commitments under operating leases

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

2024
2023
£
£


Not later than 1 year
301,074
227,459

Later than 1 year and not later than 5 years
4,096
-

305,170
227,459


23.


Controlling party

The immediate parent or the company is Xcede Group Limited (Company number 12361140) whose registered office is 24 Eversholt Street, London, England, NW1 1AD. The parent of the smallest and largest group into which Xcede Limited is consolidated is Xcede Global Holdings Limited (Company number 11996176).
In the opinion of the directors, there is no ultimate controlling party.

 
Page 29