The directors present the strategic report for the year ended 31 December 2024.
Based in London, the group operates globally having clients in the UK, Europe, USA, Canada, China, South Korea and Japan.
Our mission is to make the future more human: inclusive, meaningful, beautiful and sustainable. We weave strategy, brand, and design to transform the companies who shape our world. Our ambition is to become the world's most influential creative studio.
The reorganisation, as noted below, resulted in the group being brought under a holding company structure, with the trading subsidiaries comprising Forpeople Limited (London) and Forpeople BV (Amsterdam).
Through both companies, we operate in many industry sectors, most notably:
Health, Performance Apparel, Beauty
Automotive, Rail, Aviation, Personal Mobility
FMCG, Future Food, Financial Services, Material Technology, Sustainable Energy
Consumer Electronics, Home Appliances, Furniture
Retail, Hospitality, Placemaking
The main work types are strategic visioning, brand creation / development and the detailed design and specification of all aspects of the future physical and digital customer experience.
Fee-for-service remains the predominant revenue type and the USA remains our most significant market.
Trading, London
We had limited success in adding new clients in London. This was below expectations given the investment to date and is an urgent area to address in 2025.
That said, Hospitality sector work, for existing clients, more than doubled. We also had a significant increase in instructions from clients in the Finance and Banking sector.
Our FMCG sector clients were doing incredibly well and we increased sector revenue by 12% in 2024.
We enjoyed increased success in our ‘Body’ Mission to develop clients in the Personal Care, Apparel and Sports Performance sectors adding four new clients.
Towards the end of the year we noticed an increase in enquiries from the Automotive sector. This was encouraging as the sector has been a particularly strong one for the company over the last decade.
Forpeople Ltd also continued work with Amble SA, an exciting Portuguese based EV start-up.
We also saw revenue from our joint venture projects with Furniture manufacturers in North America, Europe and Asia.
Trading, Amsterdam
There was a run of misfortune in Amsterdam. Two important pillar clients reduced spending due to market uncertainty and their global reorganisations, we had to make a change to our Creative Leadership and our landlord went into administration.
All of these factors caused headaches and had a commercial impact. Fortunately there were some key new business wins in the Hospitality, Finance and FMCG sectors and a surplus of work in London which, combined with some internal planning process innovation, was able to offer some relief.
Despite this, 2024 saw negative growth in Amsterdam and some employment contracts were not renewed. This had the effect of streamlining the business and there has been a significant improvement in utilisation since.
Fortunately in Q3 the new premises we had been waiting for more than 12 months to become available finally was, allowing us to significantly enhance the quantity and quality of studio space for only a small uplift.
With client recovery in progress, a streamlined team and an amazing new space the 2025 outlook is positive.
People
We rebooted our people initiatives in 2024, adding a senior hire to lead the team.
We maintained our high staff engagement score and established the areas staff wanted to see most action on. These were made key internal objectives and we expect to see the results in 2025.
Globally, 20 people joined and 22 people left.
Leadership
To oversee operations we created a Global Leadership Team by expanding our current Senior Leadership team to formally include Global Creative Oversight, Amsterdam Commercial and Global Finance Functions.
Reputation
Reputation development efforts continued in 2024 and saw increased outreach and media coverage.
Two members of the senior team represented us at SXSW 2024 events in Austin, TX. We also secured two further opportunities for SXSW 2025 in Austin, TX as well as planned participation in SXSW 2025 in London.
For qualitative and tactical reasons we decided to change our PR partner from a US generalist to a UK specialist.
Forgood
The employee-led Forgood initiative has a broad and engaged leadership committee. They have conceived and managed many initiatives and report on these on a quarterly basis.
Our educational outreach and engagement continued to be outstanding (we were able to provide 19 meaningful student work experiences and 5 high-quality internships). Several of our staff have undertaken coaching and mentoring qualifications to support this.
We also put in place The Kay Knights Bursary to assist young people, entering the field of human resources, with professional development sponsorship.
Regular donations were made to several other charities.
Pro bono
It was our pleasure to undertake pro bono work for Amplify Goods, a social enterprise which enables those often excluded from work opportunities to produce cleaning and personal care products for retail and other institutions, including the NHS.
We also secured a strategic brand engagement with Tree Aid to be undertaken in 2025.
B-Corp
Work continued in 2024 to improve our B-Corp score. This substantially increased after October when the company started to implement carbon and air quality monitoring, SBTi carbon reduction targets as well as significantly enhanced inclusivity and transparency measures.
We also invested in developing further sustainability insight, understanding and capability, and we ensure this is shared, applied to our deliverables and makes a difference to our people, clients and their end users.
Re Org
In 2024, the shares of Forpeople Ltd were exchanged for shares in Forpeople Group (Holdings) Ltd, and the shares of Forpeople BV were transferred to Holdco. As a result, both Forpeople Ltd and Forpeople BV became direct subsidiaries of the new Holdco.
Following the reorganisation, the directors of Forpeople Ltd resigned from its board and joined the Holdco board. They were replaced on the Forpeople Ltd board by two local senior managers.
At the same time Forpeople Ltd sold its founding shareholding in Amble SA to Forpeople Ventures Ltd, a
company not in the Group.
Company Milestone
Last year we noted that we would do some special things for our 20th Anniversary.
First, we held the For20 Event – for the entire team to celebrate the milestone; the Ecosystem Event - for our clients past and present to celebrate our mutually productive relationships and finally, we created the Forpeople Trust – to resolve the Group’s long term-ownership and therefore ensure all Forpeople employees will share in our future success.
Shareholders
In order to ensure the Group could maintain its independent status, and deliver an effective succession plan, the Group Board decided to sell 90% of the company to the Employee Ownership Trust. This transaction was completed in October 2024.
William Amberg and Brian Compton-Carr sold all 100% of their shares and stepped down from the Group Board. Those in the Group’s EMI scheme exercised their options and participated in the transaction. David Summerfield and Michael Tropper retained <5% equity each but remained on the Group Board along with the CEO and Chair. A new Non-exec also joined.
The Board of Trustees consists of an independent Chair, two Employee Trustees, a Non-exec and three Founders.
Conclusion
London’s revenue grew by 4% (8% growth prior year) but Amsterdam faced some revenue challenges and this reduced by 20% (10% growth prior year). This year's margins were 11% profit in London (17% prior year) however we faced a £275k loss in Amsterdam (-0.5% last year).
At Group level this resulted in -2% revenue decrease but overall margin of 8% profit.
Across the Group the volume of business was not dramatically changed from the prior year, however the sectors from which this came were significantly different, although the work type was not.
Group profits were reduced by the significant costs of restructure, additional senior hires, staff bonuses, additional investments in reputation development, pitching costs, the Amsterdam Studio relocation and, finally, the transition to employee ownership.
The foundation of the future of the business has been secured but some initiatives put in place to move the commercial needle have taken too long. This will be corrected in 2025.
With structure and ownership changed significantly, 2025 will be the first year where the Founders play a supporting role and the Global Leadership Team have the opportunity to carry things forward with fresh energy. Towards the end of the year it was encouraging that significant business for Q1 2025 had already been secured.
Key Performance Indicators
We carefully monitor a variety of key performance indicators from rate of inbound enquiries to pitch success; from sales pipeline quality to conversion rate; from consultant utilisation to profit per head; from recovery rate to client profitability as well as other useful metrics such as staff cost to revenue ratio, monthly overheads covered.
Pitch success rate needs improvement as we didn't meet our internal success rate of 33%, so this will be a key aim of 2025
Average conversion rate for current clients was stable with a 1% increase, indicating strong relationships
Improving consultant utilisation rate is still a key aim as levels remained the same this year - we make continuing efforts to develop an adaptable team and a future pipeline of diverse and productive business opportunities
Profit per head decreased this year by almost 40% - principally due to the increase in leadership and operational headcount
Recovery rate was healthy at 86% - achieved through accurate proposals and professional project management
Principal Risks and Uncertainties
New ways of working, AI, raised social consciousness, new consumer habits and preferences have all driven enormous industry change.
Economic pressure, geopolitics, Donald Trump winning re-election and other global events have led to market uncertainty.
Remaining buoyant and adaptable in the face of this context is critical.
In addition, the following elements must be actively managed, by leadership, to reduce risk:
Revenue growth
Margin improvement
Conversion rate consistency
Pipeline expansion
Finally, several digital challenges remain:
Software monopolies forming leading to increased cost
Software companies now selling creative solutions not creative tools
Clients carelessly adopting AI
Future developments
Our ambition is to become the world's most influential creative studio. It is therefore incumbent on us to:
Redefine the role of creativity
Elevate our levels of quality
Establish our unique voice
Grow trusted relationships
In 2024 we had limited success in adding new clients in London and maintaining a sufficient quantity of clients in Amsterdam. This was disappointing and an urgent area to address in 2025 by:
Continue investment in PR
Focus on business development missions
Improving our outreach & working with advocates
Improving our messaging, website & credentials
Fortunately, Forpeople continues to have an expert and flexible cohort as well as being diversified by work type, sector and client geography. In addition, and probably similar to many businesses in our sector, we will continue to prioritise:
Revenue growth - optimised through continued investment in reputation building and improvements in conversion rate
Margin improvement - optimised through further improvements in recovery rate and focus on productive work types
Conversion rate consistency - optimised through initiatives to improve pitch outcomes and relationship building, although we can see geopolitical factors, beyond our control, dramatically affect this too
Pipeline expansion - optimised through strategic reputation building, networking and client selection
2024 was the 20th Anniversary and 2025 will become a new era for the company. The Board has faith that making the company more inclusive and ensuring all employees will share in its future success will motivate continued growth.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Ordinary dividends were paid amounting to £5,814,136 (2023: £544,752). The directors do not recommend payment of a further dividend.
In accordance with section 485 of the Companies Act 2006, the directors have appointed Moore Kingston Smith LLP as auditor of the company.
We have audited the financial statements of Forpeople Group (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Explanation as to what extent the audit was considered capable of detecting irregularities, including
fraud
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.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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.
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 for no purpose other than to draw to the attention of the company’s members those matters we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party 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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £5,827,410 (2023 - £0 profit).
Forpeople Group (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1 Pickle Mews, London, SW9 0FJ.
The group consists of Forpeople Group (Holdings) Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention.
Forpeople Group (Holdings) Limited acquired Forpeople Limited on 4 June 2024 through a share-for-share exchange. As the ultimate owners of the group remained the same, this reconstruction was accounted for using the merger accounting principles set out in FRS102. The results of the reconstructed group are therefore presented as though the new structure had always been in existence and the comparatives for the year ended 31 December 2023 have been re-presented accordingly.
The consolidated financial statements incorporate those of Forpeople Group (Holdings) Limited and all of its subsidiaries (i.e. entities that the Group controls through its power to govern the financial and operating policies so as to obtain economic benefits).
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
The company is a qualifying entity as defined within FRS 102 and has taken advantage of the disclosure exemptions available to it in accordance with FRS 102 paragraphs 1.11 and 1.12, on the basis that the consolidated financial statements are prepared for public use and include the results of all subsidiaries.
As a qualifying entity, the company has taken advantage of the following exemptions:
It has not presented a statement of cash flows for the parent company;
It has not disclosed related party transactions with wholly owned subsidiaries within the group;
It has not presented a parent company profit and loss account as permitted by section 408 of the Companies Act 2006 (if applicable)
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the balance sheet date, the group had made a profit for the year of £662,729 (2023: £1,889,559) and had net assets of £4,266,026 (2023: £9,056,064).
At the time of approving the financial statements, the directors have considered forecasts covering a period of at least 12 months from the date of approval, including profit and loss and cash flow projections. These forecasts reflect actual results to July 2025 and reasonable assumptions for the remainder of the forecast period. Based on this assessment, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Fee income represents revenue earned under a wide variety of contracts to provide professional services. Revenue is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including expenses and disbursements but excluding value added tax.
Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is included in debtors and payments on account in excess of the relevant amount of revenue are included in creditors.
Fee income that is contingent on events outside the control of the firm is recognised when the contingent event occurs.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Revenue from contracts is assessed on an individual basis with revenue earned being ascertained based on the stage of completion of the contract which is estimated using a combination of contract phases and the time spent to date compared to the total time expected to be required to undertake the contract. Estimates of the total time required to undertake the contracts are made on a regular basis and subject to management review. These estimates may differ from the actual results due to a variety of factors such as efficiency of working, accuracy of assessment of progress to date and client decision making.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
Investment income includes the following:
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 31 December 2024 are as follows:
On the 3rd September 2024, Forpeople Limited disposed of its entire interest in Amble, S.A, an associate in which it held a 32% shareholding, to Forpeople Ventures Limited, a related party by common ownership.
The provision relates to dilapidations of the leased property at 1 Pickle Mews, London, SW9 0FJ.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
During the year, Forpeople Limited transferred its obligations under the existing Enterprise Management Incentive (EMI) share option scheme to its parent company, Forpeople Group (Holdings) Limited.
As a result of this transfer, Forpeople Limited no longer holds any obligation or liability in respect of the EMI scheme as at the reporting date. All outstanding options under the scheme are now settled by the parent company, and the parent is responsible for any future accounting and disclosures relating to the share-based payments.
Prior to the transfer, the company recognised a share-based payment credit of £1,172, in accordance with the requirements of Section 26 of FRS 102. Following the transfer, no further expense or liability is recognised by the company in relation to the scheme.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The group has taken the exemption available under FRS102 section 33.1A and not disclosed transactions with 100% group companies.
During the year, the group paid £nil (2023: £544,752) to its directors in respect of dividends.
During the year, the group paid £254,468 (2023: £32,165) to Charles Russell Speechlys LLP, a related party. There were no outstanding creditors at the year end.
During the year, the group made sales of £313,047 (2023: £146,686) to Amble, S.A. an associate investment. There was £246,386 (2023: £140,037) of debtors owed at year end. Of the debtors owed at year end, £167,382 (2023: £nil) has been provided for in the form of bad debt.
During the year, the group its investment in associate, Amble S.A. for £80,759 to Forpeople Ventures Limited, a related party by virtue of common directorship.