The directors present the strategic report for the year ended 31 December 2024.
Overview and Principal Activities
The principal activity of the Group during the year continued to be the provision of staff recruitment services, offering permanent, contract and consulting recruitment solutions.
The Group comprises McGregor Boyall Associates Limited, Dukebridge Partners Limited, McGregor Boyall Associates S.P. z.o.o, and Creative Recruitment Limited (an 80%-owned subsidiary).
In early 2024, we continued to wind down our Asia Pacific operations, completing the closure of the Hong Kong operation.
The Group operates in the United Kingdom and the Middle East and benefits from a small but growing level of activity in Europe and the US. With its head office in London, the Group had additional offices in Manchester, Edinburgh, Glasgow, Warsaw, and Dubai. Some of these offices/locations, namely Manchester, Edinburgh, and Glasgow, were exited or wound down in 2024.
Our principal areas of staffing activity are Information Technology, Change and Transformation, Governance, Risk and Compliance, Marketing, Human Resources, and Creative Design. The Group’s client base principally comprises financial services and professional services organisations, but it also includes other small and large organisations outside these sectors.
2024 overall proved to be a challenging year for the Group, with the first half of 2024 (H1 2024) being particularly difficult and the second half (H2 2024) performing considerably better. The key challenges faced in 2024 were primarily due to the prolonged and weakening global economic conditions we witnessed across much of 2023, both in the UK and globally. These conditions had a direct impact on recruitment confidence and hiring sentiment. Specifically, this saw a significant decline in vacancies across most of our specialist divisions, with the appetite for hiring being heavily subdued, particularly in the Financial Services and Professional Services sectors. With ongoing political and economic uncertainty, hiring and growth in general remained a low priority for our clients in favour of prudent cost management and a cautious ‘wait and see’ approach from the market. Furthermore, candidate supply remained high, meaning client demand for support from the recruitment sector was muted, resulting in either a reduction in vacancy flow or a recruitment freeze from our clients. This was further compounded by the continued downward pressure on our operating margins, with many of our existing clients looking to reduce their recruitment spend and/or renegotiate margins.
Reduced client demand was felt the most abruptly across our Technology recruitment teams in 2024, which have historically been the key pillars of our business in the UK. In addition, our Middle East and US operations also suffered during this period, highlighting the weaker global economic outlook for hiring. By contrast, some of our non-technology specialist divisions (HR and Risk) performed better.
The decline in our overall performance in H1 2024 necessitated several strategic changes, including the winding down and exit of our Scotland and Manchester businesses and a repivoting to diversify our client base underpinned by prudent and disciplined cost management.
As a result of these proactive measures (to rectify performance and manage cost), the second half of 2024 saw a marked improvement in both our sales and profit performance. Some of our specialist divisions continued to show resilience, and we also experienced a significant improvement in our sales performance across both the Technology and non-Technology verticals during this period (particularly across HR, Risk and Change & Transformation in particular). Creative Recruitment Limited also remained relatively robust throughout 2024.
The improved sales performance in H2 2024, particularly in contract hiring (coupled with the reduction in our headcount from exiting Scotland and Manchester, along with some other changes we made across the business), eroded much of the loss from H1 2024. Our H2 2024 performance, therefore, represented an improved turnaround in performance from H1 2024 and a trend we very much hope to continue into 2025.
With a stronger contractor book in H2 2024, our attention turned to managing our margin and securing our contract extension business to protect the consistent income this provides. We also reviewed our commission structure and implemented several key changes, which we expect to have a positive impact as we move into 2025. With years of expertise in contract hiring, we have adapted quickly to a market that seemingly has more appetite for contract hiring. With our ability to react promptly to our clients’ changing recruitment needs, whether through our contingent recruitment services or our consulting and project services business (Dukebridge Partners Limited), we were able to capitalise and execute exceptionally well, resulting in higher conversion rates and an improvement in our contract book during H2 2024.
Furthermore, we continued to invest sensibly in a number of growth areas that would further strengthen our portfolio and product offering. For example, we looked to expand our European footprint, making a number of worthwhile and consistent hires. This investment was run in parallel with our looking at further ways to reduce our cost base and drive efficiency in performance.
We have also invested in marketing and business development activities, including new business development tools and training, to upskill and enhance sales wins, diversify our client base, and ensure our brand remains relevant. We also took a proactive approach to sponsoring key events and looked to introduce and/or expand a number of strategic partnerships and networks.
The work that we had commenced in 2023 on Equality, Diversity, Inclusion, Sustainability and Social Impact also continued well into 2024. These were (and still are) deemed essential criteria for remaining a credible supplier to our existing clients and/or when tendering for new clients. To ensure that we are well-positioned to meet these criteria, we continued to enhance and build on the effort we launched in 2023 by securing our status as a Women-Owned business and a sustainability accreditation via EcoVadis, both of which were approved and secured in 2024.
In brief, 2024, particularly H1 2024, was an extremely challenging year for the firm (and the entire recruitment sector). However, due to the action and changes implemented in H1 2024 and the improvement in sales performance in H2 2024, the business performed considerably better in the second half of the year. With a continued disciplined approach to cost management, focus on productivity, and seeking opportunities for growth and diversification of our client base, we are confident this trend will continue into 2025.
Economic
The most concerning risk for the business is the prolonged economic downturn we are currently experiencing, resulting in slower growth for many regions and, specifically, weaker vacancy flow. With inflation and interest rates rising throughout the year, demand for new headcount and hiring remains weak. Furthermore, an increase in redundancy and redeployment programs has meant a surplus of talent on the market. Although the reduced volume of hiring spending is concerning, as we are a supplier of both contract and permanent recruitment, we are well equipped to see through a sustained period of downturn and see opportunity in expanding our product offering, particularly in offering our clients innovative recruitment solutions such as Embedded Talent Management. Furthermore, our geographical positioning with focused operations in the Middle East, and a growing footprint in Europe and the US, has meant that we can supply talent globally and take advantage of growth opportunities in these markets as and when they arise.
Political Climate
The 2024 elections in the UK, US, and Europe and the increasing trade tensions (especially US-China) and ongoing war in Ukraine and the Middle East, bring further uncertainty and disruption to the markets, driving risk aversion among businesses and investors alike, with less appetite to expand. The overriding risk is that this ‘new norm’ will continue to drive weaker confidence in the recruitment sector, requiring a repivot in strategy and focus on key financial and non-financial metrics to drive performance and survive and thrive in such uncertain times.
Cyber & Data Security
The continued increase in cyber-attacks and the sophistication of the tools being used mean that protecting our data and intellectual property, as well as that of our clients and candidates, is essential. We have robust security systems that are externally audited to reduce our risk. In 2024, we maintained our ISO 27001 Cyber Security accreditation and certifications in Cyber Essentials and Cyber Essentials Plus.
Business Continuity
One of our key internal risks is the loss of experienced recruitment consultants and key senior staff, which could result in leadership gaps, sales revenue loss, and knowledge loss. We review our business continuity process and plans regularly, including succession planning and our approach to talent management and attrition. Our Business Continuity process and plans are also reviewed externally annually; we hold the ISO 9001 Quality accreditation.
Financial Risk
With more challenging market conditions producing fewer recruitment vacancies and sales, controlling costs and taking a prudent approach to managing the balance sheet have become vital. This ensures that we not only remain financially secure but can continue to invest in the right areas of the business, creating strong foundations for when the markets do return and ensuring we have enough of a financial buffer to weather an even more prolonged downturn.
There will always be the risk of late payment and bad debt from suppliers, which can become more pronounced with a downturn in the economy. However, from a credit risk perspective, the Group's client base mainly comprises highly credit-worthy Financial Services and other large blue-chip organisations with whom we have long-standing relationships, which mitigates our risk for late payment considerably.
In addition, the Group continues diversifying its client base and expanding its product offerings to minimise exposure to high levels of portfolio concentration. If the predictions of a sustained economic downturn prevail, a balanced client portfolio and focus on key growth markets will help drive performance and productivity and alleviate financial loss. These drivers will continue to be an essential part of the Group’s strategy in 2025.
Outlook for 2025
The Directors judge that it is appropriate to comment briefly on the Group’s performance in 2025. Despite the sustained economic downturn and recruitment activity remaining subdued across most of our regional and international operations, the firm has continued to build on the momentum we experienced in H2 2024 with a better performance in H1 2025. We have seen an improvement in sales and profit performance (YoY) across most of our divisions, including Technology recruitment in the UK/Europe and geographic locations, particularly in the US and the Middle East. This overall reassuring performance (despite the ongoing economic and political headwinds that we continue to face) is encouraging. It provides further validation that the Group's actions in 2024 are working. Furthermore, the improved sales and profit performance from the majority of our specialist divisions, coupled with a strong focus on driving a number of specific metrics (e.g. Productivity per head per month) as well as the constant review of our operational costs, has meant that we have been able to show some growth in 2025.
Across our specialisms, Technology has been one of the worst affected in 2024 due to many clients over-hiring in 2022’s post-COVID era, resulting in many firms reducing their Technology headcount, particularly with the acceleration of AI being implemented in many organisations. There is still a demand for diverse talent, and with the demand for AI skills on the rise and for organisations to transform and drive efficiency, we see an opportunity for growth in the provision of Data and AI skills, as well as Change and Transformation, where we have strong capability and coverage.
Being awarded certification as a Women-Owned certified business in March 2024, as well as achieving accreditation for our sustainability practices via Ecovadis, has provided access to new client networks on a global basis, enabling us to tender for Preferred Supplier List (PSL) business across a broader range of sectors than would have previously been the case.
At the point of writing, there do not appear to be any significant signs of market recovery in the short term, and vacancy flow remains stubbornly low. The Directors view the current risks as ‘high’ and continue to take measures to review costs, making changes where necessary, and cautiously investing in areas that will support and drive sales in new growth markets/regions.
Overall, the Directors are confident that the company has a strong balance sheet and the right human resource assets to ensure it is positioned to weather the current downturn and continue the positive trend we saw in H2 2024 into 2025.
In summary, 2024 presented a complex period for the global recruitment and staffing industry as a whole, which was constrained by volatile macroeconomic conditions, regulatory uncertainty and political instability in key markets. The most significant impact of these headwinds saw a continued decline in vacancies, particularly regarding permanent hiring. Whilst temporary and contract staffing was somewhat more resilient, there remained a significant reduction in the volume of vacancies in the key sectors we have traditionally been active in, namely Financial & Professional Services, resulting in downward pressure on margins. For the firm as a whole, H1 2024 in particular proved to be an extremely challenging period, explicitly marked by an ongoing decline in vacancy flow and lower conversion rates. This dynamic impacted most of our specialist divisions and locations, and especially across permanent hiring. However, through a vigilant approach to cost management and a marked improvement in sales performance in H2 2024, we recovered well in the second half of 2024 and set the foundations for further growth and momentum in 2025.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 10.
No ordinary dividends were paid (2023: £177,313). The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Chambers & Co LLP resigned as the company's auditor and confirmed to the Company that, in accordance with Section 519 of the Companies Act 2006, there are no circumstances in connection with its resignation which it considers need to be brought to the attention of the Company's members or creditors.
Anova were appointed as auditor to the company on 3 June 2025 and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
We have audited the financial statements of McGregor Boyall Associates Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We identify and assess risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:
the nature of the industry and sector, control environment and business performance;
results of our enquiries of management about their own identification and assessment of the risks of irregularities;
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the company operates in. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.
In addition we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.
As a result of performing the above, we did not identify any key matters related to the potential risk of fraud or noncompliance with laws and regulations.
Our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described as having a direct effect on the financial statements;
enquiring of management concerning actual and potential litigation and claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale for any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indication of fraud or non-compliance with laws and regulations throughout the audit.
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.
Use of our report
This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £789,450 (2023 - £313,216 loss).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The notes on pages 17 to 32 form part of these financial statements.
The notes on pages 17 to 32 form part of these financial statements.
McGregor Boyall Associates Ltd (“the company”) is a private company, limited by shares, domiciled and incorporated in England and Wales. The registered office is Bank House, Southwick Square, Southwick, West Sussex, BN42 4FN.
The group consists of McGregor Boyall Associates Ltd and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company McGregor Boyall Associates Ltd together with all entities controlled by the parent company - its subsidiaries.
Where a subsidiary has different accounting policies to the group, adjustments are made to those subsidiary financial statements to apply the group's accounting policies when preparing the consolidated financial statements.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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 in respect of services supplied, 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.
Revenues earned from temporary services (either gross chargeable value or margin-only) are recognised in the accounting period in which the services are provided.
Revenues earned from permanent placements are recognised on the date that each candidate commences their employment.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors , loans to fellow group companies, and cash and bank balances, are recognised at transaction price. There are no arrangements in respect of these assets which are considered to constitute a financing transaction.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities, including creditors, loans from fellow group companies and loans under its invoice discounting agreements are recognised at transaction price. There are no arrangements in respect of these liabilities which are considered to constitute a financing arrangement.
Basic financial assets and liabilities are measured subsequently at amortised cost less impairment.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The group contributes to a number of defined contribution plans for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations. The contributions are recognised as an expense when they are due. The assets of the plan are held separately from the group in independently administered funds.
McGregor Boyall Associates Limited operates a share option scheme. Under the scheme the fair value of employee services received in exchange for the grant of the options is recognised as an expense in the income statement of the Group with a corresponding adjustment to the share-based payment reserve. The total amount to be expensed over the vesting period is determined as the fair value of the options granted. At each balance sheet date, the estimate of the number of options that are expected to become exercisable is revised. The impact of any revision to the original estimates is recognised by the Group by adjusting both the income statement and the share-based payment reserve over the remaining vesting period.
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions and balances:
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account.
Translation:
The trading results of Group undertakings are translated into sterling at the average exchange rates for the year. The assets and liabilities of overseas undertakings are translated at the exchange rates ruling at the year end. Exchange adjustments arising from the retranslation of opening net investments and from the translation of the profits or losses at average rates are recognised in "Other comprehensive income" and allocated to non-controlling interest as appropriate.
Prior year adjustment - Year ended 2023
In accounting year ended 31 December 2022 other creditors (and contractor costs) in McGregor Boyall Associates Ltd were understated by £634,987.These figures have now been amended and profit before tax for year ended 31 December 2022 has decreased by this amount.
The net effect on the 2023 accounts (after tax) has been to reduce profits brought forward by £514,339. This is shown in the Group Statement of Comprehensive Income for 2023; there is no affect on the 2024 accounts.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements.
The directors regularly assess the recoverability of investments and balances due from other companies within the group. Where it is considered that the future cashflows from these debts are less than their carrying amount then appropriate provisions are made against these investments and balances, to reflect their recoverable value.
The directors review individual debtor balances and make appropriate provisions wherever it is considered that balances are not fully recoverable.
All turnover is in relation to the provision of services.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
Some of the directors are part of the Share Option Plan, see note 19. Total amount of options granted to directors this year was £nil (2023 £nil).
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 31 December 2024 are as follows:
100% of trade debtors are factored and are secured against the debtors to which they relate.
Included in other creditors totalling £2,122 (2023 £2,101) as amounts due under debt factoring.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The Group is unable to directly measure the fair value of employee services receive, instead the fair value of the share options granted is determined using the Black-Scholes Model. The valuation using the Model was last conducted as at 3 November 2022. In the opinion of the Directors' this is still the fair value as at 31 December 2024 (and 31 December 2023).
The total intrinsic value at 31 December 2024 amounted to £100,859 (2023 - £71,661) for the group and £100,859 (2023 - £71,661) for the company.
The charge in the Group for the year was £29,198 (2023 £29,198).
The conditional preference shares have a right to dividends restricted to 10% of the parent company's annual net profits after tax. In respect of distributions on winding-up the preference shares rank equally with the ordinary shares.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The remuneration of key management personnel is as follows.
During the year McGregor Boyall Associates Limited charged Creative Recruitment Limited, its 80% owned subsidiary, £27,189 (2023 - £64,155) for management & support services, and £29,817 (2023 - £nil) for other services. Creative Recruitment Limited charged McGregor Boyall Associates Limited £nil (2023 - £5,057) for contractor services. Creative Recruitment Limited also charged McGregor Boyall Associates Limited loan interest of £86,677 (2023 - £63,902). At the year end the amount owed to Creative Recuitment Limited from McGregor Boyall Associates Limited was £419,642 (2023 £421,221).
The company is exempt from disclosing other related party transactions as other group companies are wholly owned.
Minority interests represent the 20% equity minority interest in Creative Recruitment Limited.
McGregor Boyall Associates Limited has given guarantees under s479c if the Companies Act 2006 in respect to all the outstanding liabilities of its subsidiaries Dukebridge Partners Limited and Fincentria Limited.