REGISTERED NUMBER: 07837203 (England and Wales)

Financial Statements for the Year Ended 31 December 2024

for

ARROWS GROUP PROFESSIONAL LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

J W Parsons

SECRETARY:

Ms S J Parsons

REGISTERED OFFICE:

81 Rivington street

London

EC2A 3AY

REGISTERED NUMBER:

07837203 (England and Wales)

AUDITORS:

Thorne Lancaster Parker

Chartered Accountants &

Statutory Auditors

5th Floor

Palladium House

1-4 Argyll Street

London

W1F 7TA

FIXED ASSETS

Intangible assets

5

38,446

73,693

Property, plant and equipment

6

9,535

24,418

47,981

98,111

CURRENT ASSETS

Debtors

7

4,896,484

4,146,086

Cash at bank

48,011

1,502

4,944,495

4,147,588

CREDITORS

Amounts falling due within one year

8

(5,770,658

)

(5,100,978

)

NET CURRENT LIABILITIES

(826,163

)

(953,390

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(778,182

)

(855,279

)

CAPITAL AND RESERVES

Called up share capital

11

1

1

Retained earnings

12

(778,183

)

(855,280

)

SHAREHOLDERS' FUNDS

(778,182

)

(855,279

)

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 23 September 2025 and were signed by:

J W Parsons - Director

1.	STATUTORY INFORMATION

Arrows Group Professional Limited is a private company limited by shares, incorporated in the United Kingdom under the Companies Act 2006, registered in England and Wales. The company's registered office and principal place of business is 81 Rivington Street, London, England, EC2A 3AY.

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" including the provisions of Section 1A "Small Entities" 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.

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.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The directors do not consider there to be any judgements or estimation uncertainty which materially impact these financial statements.

Going concern

As described in the financial statements the company has net current liabilities of £826,163 and net liabilities of £778,182. 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.

Revenue

Turnover comprises the fair value of the consideration received or receivable for the provision of service provided in the ordinary course of the Company’s activities. Turnover is shown net of value added tax and other sales-related taxes, returns, rebates and discounts and after elimination of sales within the Company.

Contract turnover for the supply of professional services, which is mainly based on the number of hours/days worked by a contractor, is recognised when the service has been provided. Turnover earned but not invoiced at year end is accrued and included in ‘Accrued income’.

Turnover from permanent placements is recognised at the time the individual starts employment and a provision is made for possible cancellation of placement shortly after the start date.

Revenue from retained assignments is recognised on completion of certain pre-agreed stages of the service.Fees received for the service are non-refundable. Where non-refundable set up or commitment fees are receivable, these are recognised at the commencement of the project.

Intangible assets

Intangible assets are initially recognised at costs. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Property, plant and equipment

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.

Long-term leasehold property 20% on cost

Fixtures and fittings 25% on cost

Computer equipment 33% 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.

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

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.

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are changed as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are changed to the provision carried in the Statement of financial position.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 22 (2023 - 35 ) .

5.	INTANGIBLE FIXED ASSETS

Computer

software

£

COST

At 1 January 2024

127,827

Additions

9,692

Disposals

(10,900

)

At 31 December 2024

126,619

AMORTISATION

At 1 January 2024

54,134

Amortisation for year

44,939

Eliminated on disposal

(10,900

)

At 31 December 2024

88,173

NET BOOK VALUE

At 31 December 2024

38,446

At 31 December 2023

73,693

6.	PROPERTY, PLANT AND EQUIPMENT

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 January 2024

5,999

57,994

63,993

Additions

-

6,132

6,132

Disposals

(5,999

)

(23,081

)

(29,080

)

At 31 December 2024

-

41,045

41,045

DEPRECIATION

At 1 January 2024

3,322

36,253

39,575

Charge for year

1,401

18,338

19,739

Eliminated on disposal

(4,723

)

(23,081

)

(27,804

)

At 31 December 2024

-

31,510

31,510

NET BOOK VALUE

At 31 December 2024

-

9,535

9,535

At 31 December 2023

2,677

21,741

24,418

7.

DEBTORS

2024

2023

£

£

Amounts falling due within one year:

Trade debtors

2,422,491

2,302,111

Amounts owed by group undertakings

670,376

569,993

Other debtors

78,034

330

Directors' loan accounts

7

7,968

Deferred tax asset

75,379

108,516

Prepayments and accrued income

100,435

102,919

3,346,722

3,091,837

Amounts falling due after more than one year:

Amounts owed by group undertakings

1,549,762

1,054,249

Aggregate amounts

4,896,484

4,146,086

Amounts owed by group undertaking are unsecured, interest free and repayable on demand.

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Bank loans and overdrafts (see note 9)

2,036,997

1,975,052

Trade creditors

1,242,454

1,489,342

Amounts owed to group undertakings

2,069,257

1,217,283

Tax

1,277

1,277

Social security and other taxes

162,090

161,661

Other creditors

66,752

37,952

Accruals and deferred income

191,831

218,411

5,770,658

5,100,978

Amounts owed to group undertaking are unsecured, interest free and repayable on demand.

Invoice discounting facilities are secured against the underlying trade receivables

9.

LOANS

An analysis of the maturity of loans is given below:

2024

2023

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

2,036,997

1,975,052

Bank overdraft consists of the invoice discounting facility which is secured by an all assets debenture incorporating a fixed and floating charge over all the assets, present and future, of the company.

10.	SECURED DEBTS

The following secured debts are included within creditors:

2024

2023

£

£

Invoice discounting facility

2,036,997

1,975,052

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

£

1

Ordinary

£1

1

1

12.

RESERVES

Retained

earnings

£

At 1 January 2024

(855,280

)

Profit for the year

77,097

At 31 December 2024

(778,183

)

13.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

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

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

for and on behalf of Thorne Lancaster Parker

14.	PENSION COMMITMENTS

The pension cost charge represents contributions payable to the defined contributions scheme operated by the group. The charge amounted to £70,028 (2023: £36,394) and there was £4,502 (2023: £2,250) outstanding at the year end.

15.	ULTIMATE PARENT UNDERTAKING

The Directors consider the ultimate parent undertaking of the company to be Majar Holdco Limited, a company incorporated in England and Wales, whose registered office is 81 Rivington Street, London, England, EC2A 3AY.

The largest and smallest group of undertakings for which the group accounts have been drawn up is that headed by Majar Holdco Limited. The consolidated accounts of the parent company are available to the public and may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.