REGISTERED NUMBER: 02634355 (England and Wales)

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 December 2024

for

MAJOR PLAYERS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

J Lucy

J W Parsons

REGISTERED OFFICE:

81 Rivington Street

London

EC2A 3AY

REGISTERED NUMBER:

02634355 (England and Wales)

AUDITORS:

Thorne Lancaster Parker

Chartered Accountants &

Statutory Auditors

5th Floor

Palladium House

1-4 Argyll Street

London

W1F 7TA

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

PERFORMANCE AND FINANCIAL POSITION

Turnover in the year to 31 December 2024 was £13.6m and gross profit of £3.8m was delivered at a gross profit margin of 28.1%.

Operating losses were approximately £132k and EBITDA was £82k.

The Group continues to enjoy an excellent relationship with the Royal bank of Scotland who have provided the Group with a confidential invoice discounting facility of £6m which gives the Group sufficient working and investment capital to allow the Group to meet its growth ambitions for the foreseeable future.

The Company had net liabilities of approximately £108,069 at 31 December 2024 which the Board consider to be an adequate financial position given the support provided by the Group.

The key performance indicators in the year were:

KPI

31/12/2024

31/12/2023

Gross Profit %

28.1%

29.57%

Operating Ratio %

(6.2%)

(13.4%)

EBITDA

(£82,882)

(368,188)

Gross Profit per Employee

£100,813

£81,510

REVIEW OF BUSINESS

2024 was the second full year of operation of Majar Group which was formed through the combination of Arrows Group and Major Players-two leading recruitment and consultancy businesses operating in synergistic markets. Major Players is a leading UK recruitment agency for digital, creative, and design talent, while Arrows Group operates in technology consulting and recruitment, with offices in the UK, Germany, and the Netherlands.

The Board are pleased to say that progress has been made on the key drivers behind the formation of the Group, namely:

- Drive sales synergies, as digital transformation projects require both technical and creative talent.

- Achieve cost synergies through shared back-office functions (finance, marketing, HR, property, infrastructure).

- Provide Major Players a platform for growth in Germany and the Netherlands, leveraging Arrows Group's infrastructure and expertise.

- Share and utilise expertise for the benefit of the enlarged group.

Resulting in improved performance of the company - with operating losses reduced from £525,443 in 2023 to £132,560 in 2024

However, despite progress on these objectives, the Company continued to face challenging market conditions throughout 2024. High inflation, rising interest rates, global conflicts, industrial action, and political uncertainty persisted, leading to cautious investment and reduced demand for recruitment services, especially permanent hiring. The Board maintained a disciplined approach to cost management, continuing the cost reduction programme initiated in 2023 and delivered further cost savings by offshoring back office functions to South Africa and India and building out a lower cost resourcing centre in South Africa.

Strategic investment in marketing capability , the offshore resourcing centre in South Africa and the introduction of automated processes in all processes of the Company have started to take effect in 2024 with the full effect expected from H2 in 2025.

PRINCIPAL RISKS AND UNCERTAINTIES

Market and economy risk

The recruitment and talent management industries are considered cyclical sectors prone to downturns in certain sectors or geographies. The Group's market expertise across a broad range of expertise and geographies achieved through the combination of Major Players and Arrows Group allows for a better balanced portfolio of dependencies which minimises such risk. In addition businesses throughout the UK and Europe continue to digitise their offerings to reach more markets and embrace cost saving and disruptive technologies to deliver better services, which can now be served by the group through its Build Circle brand.

Brexit

With an established operation in Amsterdam and Berlin able to serve all of the EU if required - the Group is adequately protected from a 'hard' Brexit. At present most of the London offices' revenues are delivered to end clients in the UK and all of the Amsterdam's and Berlin's office revenues are derived from continental European clients.

Credit Risk

The Group is exposed to the risk of payment default by its customers. The Group undertakes standard activities to minimise this risk including credit checking, regular reviews of outstanding balances and routine reviews with our clients.

Liquidity Risk

The Group finances its operations through retained earnings and a £6m confidential invoice discounting facility. Cashflow headroom is monitored on a weekly basis and forecast out for a rolling 3 months on a detailed basis and 12 months on a summary basis, allowing Management to plan for investment activities based on the forecast headroom and take corrective action in plenty of time should it be required.

Currency Risk

The Group employs natural hedging wherever possible by matching its revenues to costs in the same currency. Group currently operates in 2 currencies, GBP and Euros and the Group's financing facilities are provided in both these currencies. The Board regularly review the requirement for transfers between its 2 trading entities and if required are prepared to hedge such transfers to protect against currency risk.

GOING CONCERN

The financial statements have been prepared on a going concern basis, supported by detailed cash flow forecasts through to 31 December 2027. The Group's rolling £6m invoice discounting facility provides sufficient headroom for at least the next 12 months. Management has performed scenario testing (reduced gross profit, increased debtor days) and remains confident in the Group's ability to continue as a going concern. In addition the Group have the ability to scale back costs quickly through its offshored operations should the need arise to reduce costs further in response to deteriorating market conditions.

STRATEGIC OUTLOOK

The Board believes that the cost reduction programme and the continued growth of the company's Creative division sets up the Company for profitable operations in 2025 and beyond. While market conditions remain volatile, Majar Group's diversified offering, disciplined financial management, and strategic investments provide a robust foundation for future growth.

ON BEHALF OF THE BOARD:

J W Parsons - Director

23 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of recruitment consultancy.

DIVIDENDS

Particulars of dividends paid and proposed are detailed in the notes to the financial statements.

DIRECTORS

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

J Lucy

J W Parsons

FINANCIAL INSTRUMENTS

The company's principal financial instruments comprise of bank balances, bank overdrafts, trade creditors, and trade debtors. The main purpose of these instruments is to raise funds for the company's operations and to finance the company's operations.

Due to the nature of the financial instruments used by the company, there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet the amounts due.

GOING CONCERN

As described in the financial statements the company has net current liabilities of £179,124 and net liabilities of £108,069. The company is dependent upon continued support of its parent and fellow subsidiaries in order to meet its day to day working capital requirements.

The company's parent undertaking has indicated that it will continue to support the company for a period of at least 12 months from the approval date of the financial statements.

The financial statements have been prepared on a going concern basis, supported by detailed cash flow forecasts through to 31 December 2027. The Group's rolling £6m invoice discounting facility provides sufficient headroom for at least the next 12 months. Management has performed scenario testing (reduced gross profit, increased debtor days) and remains confident in the Group's ability to continue as a going concern. In addition the Group have the ability to scale back costs quickly through its offshore operations should the need arise to reduce costs further in response to deteriorating market conditions.

Based on the above and taking into account the improved group trading post year end, the directors consider it appropriate to prepare the financial statements on a going concern basis. If the company were unable to continue in operational existence for the foreseeable future, adjustments would have to be made to reduce the balance sheet values of assets to their recoverable amounts, to provide for further liabilities that might arise and to reclassify any fixed assets and long-term liabilities as current assets and liabilities.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

J W Parsons - Director

23 September 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

Emphasis of matter

We draw attention to the disclosures made in note 3 in the financial statements and the directors report concerning the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

Our approach was as follows:

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006) and compliance with the relevant direct and indirect tax regulation in the United Kingdom. In addition, the Company has to comply with laws and regulations relating to its operations, including UK employment laws, health and safety, and GDPR.

- We understood how Major Players Limited is complying with those frameworks by making enquires with management and those charged with governance to understand how the Company maintains and communicates policies and procedures in these areas. We understood any controls put in place by management to reduce the opportunities of fraudulent transactions.

- We assessed the susceptibility of the company's financial statements to material misstatements including how fraud might occur through internal team conversations and inquiry of management and those charged with governance. Through these procedures we determined there to be a risk of management override associated with revenue and a fraud risk around transactions at the year end. We have performed tests of detail, including understanding of the nature of the transactions, verifying that the margin is appropriate, and verifying the clerical accuracy of the revenue recognised. In relation to management override, we selected a sample from the entire population of journals, including manual journals, identifying specific transactions which did not meet our expectations, in order to investigate, understand and agree to source documentation. We selected a sample of revenue transactions recorded before the year end and obtain documentation to verify that revenue adjustments had been recorded in the appropriate period.

- Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved verifying that material transactions are recorded in compliance with FRS102 and where appropriate Companies Act 2006. Compliance with other operational laws and regulations were covered through our inquiry with no indication of non-compliance identified.

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

Use of our report

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

Neil Usher BA(Hons) FCA (Senior Statutory Auditor)

for and on behalf of Thorne Lancaster Parker

Chartered Accountants &

Statutory Auditors

5th Floor

Palladium House

1-4 Argyll Street

London

W1F 7TA

23 September 2025

TURNOVER

13,623,797

16,015,820

Cost of sales

(9,792,903

)

(11,288,194

)

GROSS PROFIT

3,830,894

4,727,626

Administrative expenses

(4,129,204

)

(5,439,119

)

(298,310

)

(711,493

)

Other operating income

165,750

186,050

OPERATING LOSS

(132,560

)

(525,443

)

Interest payable and similar expenses

5

(151,230

)

(107,407

)

LOSS BEFORE TAXATION

6

(283,790

)

(632,850

)

Tax on loss

7

2,175

132,559

LOSS FOR THE FINANCIAL YEAR

(281,615

)

(500,291

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(281,615

)

(500,291

)

FIXED ASSETS

Intangible assets

8

27,099

6,563

Tangible assets

9

43,956

80,426

71,055

86,989

CURRENT ASSETS

Debtors

10

3,780,640

3,518,824

Cash at bank and in hand

-

4,376

3,780,640

3,523,200

CREDITORS

Amounts falling due within one year

11

(3,959,764

)

(3,368,935

)

NET CURRENT (LIABILITIES)/ASSETS

(179,124

)

154,265

TOTAL ASSETS LESS CURRENT LIABILITIES

(108,069

)

241,254

CREDITORS

Amounts falling due after more than one year

12

-

(67,708

)

NET (LIABILITIES)/ASSETS

(108,069

)

173,546

CAPITAL AND RESERVES

Called up share capital

16

109,091

109,091

Share premium

17

180,000

180,000

Retained earnings

17

(397,160

)

(115,545

)

SHAREHOLDERS' FUNDS

(108,069

)

173,546

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2025 and were signed on its behalf by:

J W Parsons - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

109,091

384,746

180,000

673,837

Changes in equity

Total comprehensive income

-

(500,291

)

-

(500,291

)

Balance at 31 December 2023

109,091

(115,545

)

180,000

173,546

Changes in equity

Total comprehensive income

-

(281,615

)

-

(281,615

)

Balance at 31 December 2024

109,091

(397,160

)

180,000

(108,069

)

1.	STATUTORY INFORMATION

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

2.	STATEMENT OF COMPLIANCE

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

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Revenue

Revenue from temporary placements is recognised when the service is provided. Revenue from permanent placements is recognised when the candidate commences employment. Revenue excludes value added tax and provisions are made for refunds that may be due on this revenue.

Tangible fixed assets

Property, plant and equipment are initially measured at cost (or deemed cost) and are subsequently measured at cost or valuation, net of depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration initially recorded at cost.

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

Improvements to property

Over the term of the lease

Plant and machinery

At varying rates on cost

Fixtures and fittings

20% on cost

Motor Vehicles

20% on cost

The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Taxation

Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or directly in equity respectively.

Current or deferred taxation assets and liabilities are not discounted.

a) Current tax

Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

b) Deferred tax

Deferred tax is recognised in respect of all timing differences which are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that the directors consider that it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme, where the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and the contributions actually paid are shown as either accruals or prepayments.

Financial instruments

The company has chosen to adopt Section 11 of FRS 102 in respect of financial instruments as it has only basic financial instruments.

a) Basic financial assets

Trade and other debtors, loans to fellow group companies, loans to related companies, other debtors and bank balances, which are due within one year are initially recognised at transaction price and subsequently carried at amortised cost being the transaction price less any amounts settled and any impairment losses.

At the end of each reporting period basic 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.

If there is 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.

A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, 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.

b) Basic financial liabilities and equity

Financial liabilities are classified as liabilities and equity instruments 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.

Trade creditors, other creditors and loans from fellow group and related companies are initially recognised at transaction price and subsequently carried at amortised cost, being transaction price less any amounts settled.

Other loans are initially recognised at the transaction price, including transaction costs and subsequently measured at amortised cost using the effective interest method. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and other similar charges.

Basic financial liabilities are derecognised when the contractual obligation is discharged, cancelled or expired.

c) Equity instruments

The ordinary share capital of the company is classified as equity and recorded at fair value of the cash or other resources received or receivable, net of direct costs of issuing the equity instruments.

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short term deposits with an original maturity date of three months or less.

Going concern

As described in the financial statements the company has net current liabilities of £179,124 and net liabilities of £108,069. The company is dependent upon continued support of its parent and fellow subsidiaries in order to meet its day to day working capital requirements.

The company's parent undertaking has indicated that it will continue to support the company for a period of at least 12 months from the approval date of the financial statements.

The financial statements have been prepared on a going concern basis, supported by detailed cash flow forecasts through to 31 December 2027. The Group's rolling £6m invoice discounting facility provides sufficient headroom for at least the next 12 months. Management has performed scenario testing (reduced gross profit, increased debtor days) and remains confident in the Group's ability to continue as a going concern. In addition the Group have the ability to scale back costs quickly through its offshore operations should the need arise to reduce costs further in response to deteriorating market conditions.

Based on the above and taking into account the improved group trading post year end, the directors consider it appropriate to prepare the financial statements on a going concern basis. If the company were unable to continue in operational existence for the foreseeable future, adjustments would have to be made to reduce the balance sheet values of assets to their recoverable amounts, to provide for further liabilities that might arise and to reclassify any fixed assets and long-term liabilities as current assets and liabilities.

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

2,513,868

3,302,736

Social security costs

292,249

391,555

Other pension costs

106,302

167,812

2,912,419

3,862,103

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

2024

2023

Sales

28

40

Administration

10

17

38

57

2024

2023

£

£

Directors' remuneration

156,724

144,922

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Other interest

44,465

-

Sales finance charges

106,765

107,407

151,230

107,407

6.	LOSS BEFORE TAXATION

The loss is stated after charging:

2024

2023

£

£

Depreciation - owned assets

43,843

151,423

Loss on disposal of fixed assets

15,476

-

Computer software amortisation

5,834

5,833

Auditors' remuneration

29,000

16,000

Foreign exchange differences

1,058

3,086

7.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

(95,914

)

-

Deferred tax

93,739

(132,559

)

Tax on loss

(2,175

)

(132,559

)

Reconciliation of total tax credit included in profit and loss

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

2024

2023

£

£

Loss before tax

(283,790

)

(632,850

)

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

(70,948

)

(158,213

)

Effects of:

Expenses not deductible for tax purposes

5,458

2,388

Capital allowances in excess of depreciation

(2,852

)

-

Depreciation in excess of capital allowances

-

28,575

Utilisation of tax losses

(27,127

)

-

Adjustments to tax charge in respect of previous periods

(445

)

50,250

Deferred tax adjustment on capital allowances

93,739

(55,559

)

Total tax credit

(2,175

)

(132,559

)

8.	INTANGIBLE FIXED ASSETS

Intangible

fixed

Computer

asset

software

Totals

£

£

£

COST

At 1 January 2024

147,702

17,500

165,202

Additions

-

26,370

26,370

At 31 December 2024

147,702

43,870

191,572

AMORTISATION

At 1 January 2024

147,702

10,937

158,639

Amortisation for year

-

5,834

5,834

At 31 December 2024

147,702

16,771

164,473

NET BOOK VALUE

At 31 December 2024

-

27,099

27,099

At 31 December 2023

-

6,563

6,563

9.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 January 2024

404,496

648,969

156,963

83,050

1,293,478

Additions

3,000

24,849

-

-

27,849

Disposals

(407,496

)

-

(156,963

)

(83,050

)

(647,509

)

At 31 December 2024

-

673,818

-

-

673,818

DEPRECIATION

At 1 January 2024

399,305

593,394

137,303

83,050

1,213,052

Charge for year

7,311

36,468

64

-

43,843

Eliminated on disposal

(406,616

)

-

(137,367

)

(83,050

)

(627,033

)

At 31 December 2024

-

629,862

-

-

629,862

NET BOOK VALUE

At 31 December 2024

-

43,956

-

-

43,956

At 31 December 2023

5,191

55,575

19,660

-

80,426