Board and Executive performance

As stated in the prior year Strategic Report, the expectation was that the market conditions the business, and all peers, would face in the relevant period for FY24 were going to be harder than even the period affected by the Covid pandemic and the immediate aftermath.

This prediction was proven to be correct, although the extent of the sharp decline in the motor claims addressable market was starker than any operator in the market was forecasting. As highlighted above, the extent of the number of UK consumers submitting claims for support arising from a motor vehicle collision was both significant and immediate.

It has taken some considerable time for the market to analyse and understand the numerous macro market factors which combined at a point in time to create these conditions.

All organisations in the UK motor claims sector in which the business operates have been materially impacted. While the results of the business for the period were disappointing, a challenging year was expected. In the context of the market conditions the performance has been stronger than most of the peer group.

The major external factors which impacted the market conditions are expected to stabilise for the FY25 period, and considering the successful implementation of the Board strategy to respond to the sudden reduction on the addressable market and the positive and profitable FY24 exit run rate, the expectation is for a solid and profitable FY25.

Principal risks

The principal risks of the business continue to actively be overseen by the Board and managed across seven key risk areas, namely: conduct, financial, operational, people, regulatory, strategic and technology risk.

The risks of primary focus during FY24 were the risks emanating from the reduced addressable market and the high inflationary environment.

Governance

The internal control framework is well-embedded, with the primary focus of all key decision making within the regular Board and Executive meetings. The focus has been on further empowering the Executive team and with the business moving beyond the challenging period the Board has been able to devote more time to longer-term strategic opportunities.

s.172 report, including key stakeholders and ESG

The Board are collectively accountable for maintaining a continuous focus on the long-term best interests of the company, its key stakeholders, and the environment.

The Board are responsible for ensuring the business maintains the right balance between addressing its short-term priorities, while operating within a framework guiding effective long-term decisions in the best interest of the company and its key stakeholders.

The Board has continued to do this by using its strategy and vision for the company, as the guiding principles when making decisions and ensuring key stakeholder interests are continually considered when making decisions.

The Board has ensured the s.172 duties are continually considered by using the company’s clearly defined and embedded purpose, culture, values, and business principles, which all underpin the strategy, as an objective framework for all decisions to be made against.

There has been a tangible and significant commitment to the key stakeholder groups and the development of the strategic framework, which ensures the company is a good business but also a business doing good. The Board are responsible for the identification of all strategic matters; the principal risks and opportunities and applying the s.172 obligations to these matters.

There are several stakeholders key to the future success of the business, whose interests are assessed across a balanced score of objectives and measures. Meeting the interests of the key stakeholders and the corporate objectives is necessary to ensure the successful delivery of the execution plan which supports the strategy.

The balanced mix of objectives are aligned with the purpose, vision, and values of the business and it is the culture of the organisation which is the key enabler of future success.

All the strategic objectives consider the needs of the key stakeholders, namely to:

• Be a cash generative profitable and sustainable business.

• Be a business doing good for all stakeholders.

• Employ the best and engaged people.

• Deliver the best possible customer experience.

• Intelligently and efficiently help our customers.

• Work in collaboration with the best partners

The stakeholders are engaged in a variety of different manners, according to their own unique needs, including the:

Workforce

An engaged workforce remains the foundation of success for the business. Through a range of continuous informal and formal engagement channels, the workforce is regularly engaged in two-way dialogue so that their interests are always considered.

The business remains accredited with Gold standard from Investors in People and it is extremely pleasing to report the following results on KPIs:

• The average response rate to internal workforce surveys was 92%.

• The average workforce engagement score was an impressive 84%.

Customers

Several KPIs are used to allow the Board to monitor and manage customer service levels including complaints, net promoter score, service level agreement adherence and customer satisfaction.

The business has embraced and embedded all of the FCAs Consumer Duty requirements, which has driven even greater attention and reporting on the delivery of positive consumer outcomes.

The Consumer Duty dashboard has evolved and is now a single source of truth for measuring, managing, analysing and reporting on customer outcomes. Discrete attention continues to be given to the needs of our vulnerable customers.

Community and environment

The business has always had a very strong genuine commitment to its local community, and this remains a core aspect of the culture of workforce proposition. Despite the challenging trading conditions, having CSR-related measures as part of the business’s corporate objectives, such as the total funds raised, and the number of volunteering days committed, is the way in which these initiatives have the ongoing focus the Board desires.

The commitment to the environment has continued to play a greater feature in the day-to-day operation of the business, with the first bespoke environmental policy and supporting statement now embedded.

Business Partners

The business partners who introduce their customers to the company, are made aware of the culture, purpose, vision, and values at the inception of a relationship and through the regular key account review meetings.

The business partners were all actively and openly engaged as the business traded its way through the challenging market conditions and the turnaround strategy implemented.

Suppliers

The importance of key suppliers to the business and the delivery of positive customer outcomes has been amplified during the challenging market conditions and further resources have been committed to the supply chain management team, to continue to increase the focus on, and standards of, supply chain performance.

Regulators

The FCA’s regulatory responsibilities are taken seriously and adhering to both the letter and spirit of the regulatory regime is essential to how good governance and positive customer outcomes are consistently delivered.

All FCA communications continue to be promptly assessed, analysed and reported to the Board, Executive and workforce as appropriate.

Industry bodies

There remains ongoing regular engagement at the most senior level with a variety of trade bodies across the motor claims, hire & repair, and civil justice sector. This affords the company the opportunity to gain the necessary insights on the current and long-term trends, as well as contributing to the discussions on the appropriate customer-centric regulatory and policy-making processes.

A conscious decision was made to increase the focus on participating in industry bodies and events, to ensure the business continues to have a positive profile and to ensure a deeper level of market insights are gained to support the growth strategy, identify and manage key risks and deliver positive customer outcomes.

The Chairman continues to be an active participant in a wide variety of senior industry engagements via ACSO and in his own right.

Auditors and bank

Both the auditors and bank are actively and transparently engaged on a regular basis and their external and independent scrutiny is welcomed to ensure key-decisions ae subjected to debate and challenge, to improve the integrity of those decisions in the long-term best interests of the company.

Given the notable challenges created by the market conditions for the period and the impact on performance, that further time was invested by the CEO and FD in regularly updating the stakeholders on performance and the successful implementation of the turnaround strategy.

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

As has been widely reported in the press and media, the UK motor claims market experienced declining claims frequencies throughout 2023 and 2024. This is due to a combination of factors including (but not limited to):

1. the impact of higher cost of living (people opting for higher policy excesses to reduce premium and not claiming for minor damage);

2. increased vehicle safety features such as AEB (Autonomous Emergency Braking) and ADAS (Advanced Driver Assistance Systems);

3. increased Government sponsored road safety measures such as 20mph driving zones and increased road calming and speed cameras;

4. changing dynamics in the new vehicle sales market and the corresponding impact on the UK car parc mix.

As a consequence of this market wide issue, the business saw declining claim referral volumes through Q4 2023 and Q1 of 2024 (with a particularly pronounced reduction in March 2024) equating to a 22% decline from the run-rates experienced at the previous year end. Consequently, we reported monthly trading losses for the six months from March through to August 2024.

The directors identified a turnaround strategy which was implemented from April 2024 onwards based on the three pillars of Sales, Margin & Overhead.

• New Sales Initiatives: with the majority of business partners experiencing reduced run-rates, accelerating the onboarding of new clients became a priority. With the benefit of previous years investment in IT and integrations, the business was able to apply additional resource to deliver this result.

• Margin Review: a full review of profitability by business partner was undertaken.

• Overhead Review: the cost-base of the business was reviewed line-by-line, and all non-value-adding items were removed. This also resulted in the decision to open an office in Cape Town, South Africa in July 2024 which has delivered good arbitrage benefits during the phase 1 implementation. Phase 2 will continue to develop during the course of 2025

Due to these actions the business returned to a breakeven position by the end of September and traded with modest profitability through Q4 of 2024.

Throughout this period, all key business partners and stakeholders (including our bankers) were kept updated as to performance and the impact of the turnaround plan.

The business continues to operate in the motor insurance claims environment with a mix of customers ranging from insurers, MGA’s and brokers. The blended business model offers a mix of contractual certainty of payment within our Insurance Services division and a much smaller, risk-based portfolio, from the activities with our Credit Services operation.

Our Insurance Services digitally serviced product suite includes: First Notification of Loss, Repair Triage, Repair Management, Desktop Engineering, Total Loss & Salvage Management, Third Party Capture, Third Party Property Defence, Subrogation, and Uninsured Loss Recovery.

Despite the ongoing challenges of the year, we have continued to invest where appropriately in both our people and technology. We now operate from three locations (Wilmslow, Halifax, and Cape Town) offering a mix of office based, hybrid, and remote working patterns. A team from the UK spent two weeks in Cape Town during the establishment of that location to ensure our people there were aligned with our Vison, Values and Business Principles. That location has been seamlessly incorporated into our operating model during the year.

We continued with the development of our people with the introduction of our proprietary “Future Pathways” development programme designed to augment the skills and abilities of our future leaders. Our first intake saw 19 people choose to partake in the programme which covers modules including Self Awareness; Resilience & Prioritisation; Communication; Change & Project Management; and Data Manipulation, Interpretation, and Presentation. From this initial cohort, we have made eight promotions during the year with the second class working through the programme during 2025.

Our commitment to the local community and good causes continued with £93,175 raised by our people for charity during the year.

We have continued to consolidate and enhance our office-based environmental performance through sustained efforts in energy and water efficiency, as well as reductions in plastic and paper usage. Recognising the potential for significant impact within our supply chain, we focused on our repair network, introducing the ‘Network Sustainability Audit’. This initiative evaluates and rewards repairers who demonstrate strong environmental practices. Additionally, we incentivised the adoption of PAS 2060 and maintained close engagement with industry experts to explore suitable accreditation alternatives following its withdrawal.

To drive meaningful change, we identified the need for more robust data collection and quantitative performance metrics. In response, we have committed to achieving ISO 14001 accreditation in 2025, are actively participating in various insurer sustainability programmes, and are finalising our carbon baseline. These efforts will underpin the development of our Net Zero Action Plan, enabling us to track progress and deliver measurable outcomes.

The business continues to invest where appropriately and established a working party to evaluate the new and emerging AI solutions. The business was also successful in achieving the ISO27001 information security standard during the year.

The company can report the following results using established key performance indicators:

1.Revenue – sales are up 66% to £45m (2023 – £27.1m)

2. Margin rate – reduces 8.6% to £9.6m (2023– £8.1m)

3. For the reasons outlined, an operating loss of (£194,837) has been recorded (2023 - £294,231)

4. EBITDA of (£81,555) (2023 - £402, 254)

The business has consistently traded profitably throughout 2025 and absorbed the increased costs announced by the Labour Government which will add circa £250k to the cost base during FY2025.

As at the date of the signing of these accounts, we forecast an outturn for the year as at 31st December 2025 in the range of EBITDA £700-£800k.

On behalf of the board

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

The principal activity of the company continued to be that of the provision of accident management services.

The results for the Period are set out on page 12.

Ordinary dividends were paid amounting to £90,000. The directors do not recommend payment of a further dividend.

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

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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

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

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

• select suitable accounting policies and then apply them consistently;

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

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

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

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

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss for the Period then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

In the light of the knowledge and understanding of the 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.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

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

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

Extent to which 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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we 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.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk 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.

Use of our report

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

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

S & G Response Limited is a private company limited by shares incorporated in England and Wales. The registered office is St Anns House, Parsonage Green, Wilmslow, Cheshire, United Kingdom, SK9 1HG.

The accounting period has been extended to end on 31 December 2024. Subsequent periods will end on the same day and month in future years. Therefore, the financial statements represent a 16 month period, compared to a 12 month period in the previous financial year.

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

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

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

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

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

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

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

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

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

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company 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 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, 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 company 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 company 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.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company 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 company.

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 company’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 when the company has 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.

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 leases 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 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 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.

An element of turnover is fully recognised on recovery rather than on invoice. The business includes a WIP balance in the accounts to recognise the timing difference.

The estimates and associated assumptions are based on historical experience and any other factors that are considered relevant.

Actual results may differ from these estimates however given the estimates and underlying assumptions are reviewed on an ongoing basis any risk should be minimised.

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.

An analysis of the company's turnover is as follows:

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

Their aggregate remuneration comprised:

The actual (credit)/charge for the Period can be reconciled to the expected (credit)/charge for the Period based on the profit or loss and the standard rate of tax as follows:

Included within other creditors is a balance of £3,469,667 (2023: £3,334,600) owed to an invoice financing facility which is secured by a fixed and floating charge over the company's assets.

Bank loans and overdraft are secured on the assets of the company and a personal guarantee from the directors.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

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 administered fund.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Included within other debtors is an amount of £20,000 (2023: £nil) due from The Rehabilitation Company Ltd, £nil (2023: £20,000) due from Physio2me Limited and £nil (2023: £7,299) due from Edge of Play Limited. Included within other creditors is an amount of £nil (2023: £70,317 due to The Rehabilitation Company Limited and £nil (2023: £2,695) due to WSG Investments Limited. These are companies in which directors A Whatmough, N Stone and N Griffiths are also directors.

Included in directors remuneration are fees of £86,833 (2023: £82,711) charged by Charles Layfield Limited for the services provided by Charles Layfield who is also a non-executive director of the company.

Dividends totalling £90,000 (2023 - £nil) were paid in the Period in respect of shares held by the company's directors.