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First Advantage Europe Ltd
Registered number: 03422709
Annual report
For the year ended 31 December 2024
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FIRST ADVANTAGE EUROPE LTD
COMPANY INFORMATION
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Chartered Accountants and Statutory Auditor
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FIRST ADVANTAGE EUROPE LTD
CONTENTS
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Independent auditor's report
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Statement of comprehensive income
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Statement of financial position
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Statement of changes in equity
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Notes to the financial statements
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FIRST ADVANTAGE EUROPE LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The director presents the Strategic Report of First Advantage Europe Ltd (the “Company”) for the year end 31 December 2024.
Business review and future developments
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First Advantage Europe Ltd (“our”, “we” or the “Company”) is a wholly owned subsidiary of First Advantage BV in Netherlands. The Company is ultimately owned by First Advantage Corporation, headquartered in the United States of America. It is a provider of pre-employment screening and post-employment background screening services for both domestic and global companies. Service offerings include criminal background checks, prior employment, education and professional licensing verifications and motor vehicle checks, amongst other related services.
Despite the impact of macroeconomic factors affecting the hiring industry and seasonality, the Company’s revenues in 2024 largely remained at previous levels. The decline in profit in 2024 is due to rising costs. With macroeconomic uncertainty prevailing during the year, the Company had proactively initiated cost savings measures that helped in mitigating the profit decline further.
Our 2025 priorities include growing revenues profitably and increasing cash flow further through process improvements, automation and cost reduction measures.
Principal risks and uncertainties
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The Company’s activities expose it to several financial and operational risks as part of the normal course of business to which it has developed and implemented policies and procedures to manage and mitigate.
Exchange rate risk
The Company’s activities expose it primarily to the financial risk of changes in foreign currency exchange rates.
Credit Risk
The Company’s principal financial assets are cash and bank balances, trade and other receivables. The Company’s credit risk is primarily attributable to its trade receivables. The amounts presented in the financial statements are net of allowances for doubtful receivables. An allowance is made by assessing factors including the current credit rating of the debtor, the aging profile of the debtors and historical losses. The Company’s exposure is spread over large number of counterparties and customers.
Liquidity Risk
The Company is part of a global group and engages with other group entities on an ongoing basis to fulfil client needs. These transactions are engaged on an arm’s length basis. The Company has a healthy bank balance which allows the Company to ensure that sufficient funds are available for ongoing operations and future development. The Company has also invested surplus cash in short-term deposits.
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FIRST ADVANTAGE EUROPE LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Principal risks and uncertainties (continued)
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Market Risk
The majority of the Company's revenues are derived from pre-employment screening services and are therefore dependent upon general economic and hiring conditions in the industries the Company serves. To the extent that the economy in general or labor market conditions in particular deteriorate, our existing and potential clients may slow or defer hiring and may be reluctant to increase spending on employee screening. The Company, in order to mitigate this risk, has developed a diverse and global client base, in a wide range of industries.
After making enquiries, the director has reasonable expectation that the Company and the group have adequate resources to continue in operational existence for the foreseeable future (as is set out in more detail in the Director's report). Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.
Financial key performance indicators
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The Company's results are set out in the Statement of Comprehensive Income and Statement of Financial Position on pages 14 to 15. The Company’s Key Performance Indicators are:
Turnover of £38.3 million in 2024 (£38.5 million in 2023)
Gross Margin of 41.1% in 2024 (41.8% in 2023)
Profit before tax of £4.5 million in 2024 (£5.8 million in 2023)
Cash at bank of £10.9 million as on 31 December 2024 (£13.7 million as on 31 December 2023)
The director considers the Company has performed satisfactorily against these indicators.
Director's statement of compliance with duty to promote the success of the Company
In accordance with section 172 of the Companies Act 2006 each of the directors acts in the way that he or she considers, in good faith, would most likely promote the success of the Company for the benefit of its members as a whole.
All board meeting papers are required to address each of the matters noted below, if relevant, and adequate time is provided in board meetings for the directors to discuss these matters and request clarification or further information from management.
∙The probable consequences of any decisions in the long-term
∙The interests of the workforce
∙The need to foster the Company's business relationships with suppliers, customers and other key stakeholders
∙The potential impact of the Company's operations on communities and the environment
∙The need to protect the Company's reputation for high standards of business conduct
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FIRST ADVANTAGE EUROPE LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company takes stakeholder engagement seriously because it appreciates the fundamental need to build a holistic view of its business to promote a strategy which takes account of the broader operating environment. Directors benefit from improved insight into the needs of our stakeholders, provoking discussion of the potential risks and opportunities for our business in satisfying those needs and understanding the potential impact of decisions on affected stakeholders. Better insight and diversity of perspectives leads to more productive and balanced board of directors' discussions on complex issues and, as a result, decisions are wellconsidered.
All board meeting papers relating to a principal decision are required to state whether, and to what extent, any key stakeholder group has an interest in the matter. Adequate time is provided in board meetings for the directors to consider and discuss the interests of stakeholders and request clarification or further information from management.
The Company's board of directors is committed to engaging with stakeholders directly wherever possible. Provided below is an overview of the Company's board engagement with our key stakeholder groups during the year.
People:
First Advantage is proud to have developed its inclusive and multi-cultural approach through a grassroots strategy that taps into the needs of our people, adopting the best practices of our industry in the ways most meaningful to our global workforce. Over time, we have continued to make progress across key identified areas of focus, continually checking back with our team to support alignment, foster inclusion, and promote an ongoing cycle of feedback.
Our approach to diversity and inclusion continues to be guided by our multi-year strategy. We are proud of the advancements we have made and continue to make in strengthening our organizational culture while also making First Advantage a rewarding place to work and a safe environment for all.
Operating with empathy and compassion, First Advantage fosters a global inclusive workforce devoted to the diverse voices that make up our talent. Our team members empower each other to be their authentic selves and treat all with respect, integrity, and fairness.
Suppliers:
The Company is part of the wider First Advantage Group (collectively, First Advantage Corporation and its subsidiaries).
We have worked hard to direct our spends, where practical, towards responsible, diverse suppliers.
∙We leverage a digital management tool to track these initiatives, recording diverse suppliers and spend
∙We define a Diverse Supplier as one that is owned, operated, and controlled by a person or persons who are part of commonly recognized diverse categories
∙Our definition extends to diversity of gender, race / ethnicity, ability, sexual orientation, socioeconomic background, geography, and education
∙We require that the ownership interest be real, substantial and continuing
∙We further ask our suppliers to utilize diverse suppliers
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FIRST ADVANTAGE EUROPE LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Suppliers (continued):
The Company is committed to maintaining the highest standards among our suppliers. It requires all its suppliers to comply with a Code of Business Conduct, which addresses ethical employment practices. In furtherance of this commitment, we subject new suppliers to a comprehensive screening process prior to onboarding. The suppliers must agree to comply with our Code of Business Conduct, requiring:
∙Avoidance of child or forced labor
∙Prohibition of discrimination, harassment, or abuse
∙Implementation of a health and safety management system
∙Compliance with applicable wage and work hours laws
∙Commitment to reduction of environmental impact and regulatory compliance
∙Ethical behavior, including compliance with anti-corruption standards
∙Refraining from unfair business practices / committing to fair dealing
∙Appropriate handling and security of information and data
Community & Environment:
With a multinational presence, our team is inherently diverse. Our goal is to promote an environment that celebrates each individual, provides equality of opportunity, and secures a safe and healthy working environment. FA’s partnership with GMI reinforces its commitment to diversity and inclusion because it gives us the opportunity to give back to the global community. We make express commitments to participate in our communities, respect human rights, prohibit child labor, and work with our vendors to promote this same focus. Through FA Cares program, we believe in continuing to foster our sense of internal community by giving back to the communities in which we live and do business. We encourage and support corporate volunteerism through our FA Cares program. FA Cares allows employees to get involved and participate by using their skills and talents to help causes, projects, and not-for-profit organizations to benefit society.
As a global company, we are keenly aware of the impact that corporate operations can have on the surrounding environment. Our distributed workforce model minimizes our facilities footprint, while optimizing our global reach, and we are systematically seeking ways to manage, reduce, and positively influence our environmental impact. We do not have a vehicle fleet or significant direct fuel consumption, which also mitigates our impact on the environment.
Helping our customers:
Enabled by our proprietary technology, our products help companies protect their brands and provide safer environments for their customers and their most important resources: employees, contractors, contingent workers, tenants, and drivers. We have robust systems in place to mitigate data breaches to protect our customers.
Governments and regulators
The Company recognizes its responsibility as a global corporate citizen to do what’s right, and that requires not only compliance with laws and regulations, but also a commitment to ethical behavior. We memorialize these ethics through a variety of policies with the support and oversight of our Board of Directors and executive leadership. Further, as a processor of information, we employ robust cybersecurity strategies and believe many of our approaches are industry-leading.
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FIRST ADVANTAGE EUROPE LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
This report was approved by the Board of Directors and signed on its behalf by:
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FIRST ADVANTAGE EUROPE LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The director presents his report and the audited financial statements for the year ended 31 December 2024.
The principal activity of First Advantage Europe Ltd (the "Company") during the year continued to be the provision of pre-employment screening services.
The profit for the year, after taxation, amounted to £3,402,552 (2023: £4,292,737).
During the year, the Company paid a dividend of £7,995,780 (2023: £nil).
The director who served during the year and to the date of this report was:
Director's responsibilities statement
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The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The director is 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 to enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.
There were no political contributions made during the year.
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FIRST ADVANTAGE EUROPE LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The director has assessed the Company's ability to continue as a going concern and has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. In doing this, the director has considered the results for the period, expectations of future trading and the availability of continued funding. On the basis of this information the director is satisfied that the Company will continue as a going concern and so the financial statements have been prepared on this basis.
Economic impact of global events
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UK businesses are facing many uncertainties and challenges caused by political, economic, social, technological, legal and environmental factors. These uncertainties have contributed to an environment where there exists a range of issues and risks, including inflation, rising interest rates, labour shortages, disrupted supply chains and new ways of working.
The director has carried out an assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures, and concluded that the greatest impact on the business is expected to be from the economic ripple effect on the global economy. The director has taken account of these potential impacts in their going concern assessment.
The Company continues to work with its partners to minimise any impacts of these events and maximise the realisation of any opportunities they may provide to the business.
Qualifying third party indemnity provisions
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The Company has made qualifying third party indemnity provisions for the benefit of its director which were made during the year and remain in force at the date of this report. No claim or notice of claim in respect of these indemnities has been received in the year.
Branches outside the United Kingdom
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The Company has an overseas branch in the United Arab Emirates.
Matters covered in the Strategic report
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As permitted in paragraph 1A of Schedule 7 to Large and Medium-sized Companies (accounts and reports) Regulations 2008 certain matters which are required to be disclosed in the Director's report have been omitted as they are included in the Strategic report on pages 1 to 5. These matters relate to the review of the principal risks and uncertainties facing the Company in relation to its financial instruments, the Company's engagement with its various stakeholders and future developments.
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FIRST ADVANTAGE EUROPE LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Streamlined Energy and Carbon Reporting ("SECR") Statement
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1. Overview
This report outlines the energy usage and associated greenhouse gas ('GHG') emissions for First Advantage Europe Ltd. (the 'Company' or 'First Advantage') in compliance with the UK Streamlined Energy and Carbon Reporting (SECR) Regulations. The information presented covers the reporting period from 01 January 2024 to 31 December 2024 (the 'Reporting Period').
First Advantage serves its large and growing customer base with tailored background screening solutions through the broad talents and vertical specialization of our global team. Our teams help our customers and their talent navigate the applicant journey with solutions to hire smarter and onboard faster. The Company operates three office locations across the UK with a majority of the Company’s workforce working remotely from home.
Energy Consumption and GHG Emissions
The energy consumption and GHG emissions for the Company have been calculated based on the available data on electricity and gas usage. Selection and data collection were based on primary information sources such as statements and invoices from our utility providers.
Scope 1 (Direct Emissions): For the Reporting Period, Scope 1 direct GHG emissions are emissions from sources that are owned or controlled by the Company. The Scope 1 emissions are primarily associated with the consumption of natural gas for heating purposes across the Company’s office locations.
∙Natural Gas Usage: 88,764 kWh
∙Natural Gas Emissions: 16,234.94 kg CO2e (calculated using the UK Government's Guidance - Greenhouse Gas Conversion Factor of 0.1829 kg CO2 per kWh for 2024.)
Scope 2 (Indirect Emissions from Purchased Energy): For the Reporting Period, Scope 2 indirect GHG emissions encompass emissions from the consumption of purchased electricity. This covers electricity usage across the Company’s office locations.
∙Electricity Usage: 53,535 kWh
∙Electricity Emissions: 11,084.42 kg CO2e (calculated using the UK Government's Guidance - Greenhouse Gas Conversion Factor of 0.20705 kg CO2e per kWh for electricity consumed from the national grid.)
2. Methodology
The emissions have been calculated using the UK Government's published greenhouse gas conversion factors. The Company adheres to best practices in calculating and reporting these figures, ensuring compliance with the guidelines set out by SECR Regulations. The Company tracks energy and emissions profiles and we have implemented a software platform to measure our carbon emissions.
3. Intensity Ratio
The Company has chosen kWh per employee as its intensity metric due to the dispersed nature of its workforce.
∙Total Energy Consumption: 142,299 kWh kWh (88,764 kWh (gas) + 53,535 kWh (electricity))
∙Total Number of Employees: 143 (Average Employee headcount in UK in 2024)
∙Intensity Ratio: 995.10 kWh per employee
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FIRST ADVANTAGE EUROPE LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
4. Energy Efficiency
During the Reporting Period, the Company has implemented several measures to improve its energy efficiency, including the following:
i.We are implementing remote working policies - encouraging employees to work remotely has significantly reduced energy consumption at office locations.
ii.We encourage staff and client meetings through web / online mode to reduce travel-related emissions.
iii.We use energy-efficient equipment and airflow management and optimised cooling systems. We seek renewable energy use in our third-party operated data centres, and the global headquarters of the Company is in a LEED Silver and Energy Star certified building.
5. Commitment
The Company is committed to monitoring and reducing its environmental impact through ongoing energy efficiency and sustainability initiatives.
This SECR statement reflects the Company's dedication to transparent reporting and its efforts to measure and minimise its carbon emissions. The Company is working to expand strategies around sustainability by developing systems for monitoring emissions data and fostering a company culture to understand climate risks, including developing specific policies aimed at mitigating the impact of those potential risks.
Disclosure of information to auditor
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The director at the time when this Director's report is approved has confirmed that:
∙so far as he is aware, there is no relevant audit information of which the Company's auditor is unaware; and
∙he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Post balance sheet events
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There have been no significant events affecting the Company since the year end.
The auditor, Forvis Mazars, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf by:
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FIRST ADVANTAGE EUROPE LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FIRST ADVANTAGE EUROPE LTD
Opinion
We have audited the financial statements of First Advantage Europe Ltd (the "Company") for the year ended 31 December 2024 which comprise the Statement of comprehensive income, the Statement of financial position, the 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 FRS 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 profit 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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FIRST ADVANTAGE EUROPE LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FIRST ADVANTAGE EUROPE LTD
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In 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 Director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of director's remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
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FIRST ADVANTAGE EUROPE LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FIRST ADVANTAGE EUROPE LTD
Responsibilities of the director
As explained more fully in the Director's responsibilities statement set out on page 6, the director is 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 director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the director is 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 director intends either to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Auditor's 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 an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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 material misstatements in respect of irregularities, including fraud.
Based on our understanding of the Company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and anti-money laundering regulation.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
∙Inquiring of management and, where appropriate, those charged with governance, as to whether the Company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
∙Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
∙Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
∙Considering the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation and the Companies Act 2006.
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FIRST ADVANTAGE EUROPE LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FIRST ADVANTAGE EUROPE LTD
In addition, we evaluated the director's and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition (which we pinpointed to the cut-off assertion), and significant one-off or unusual transactions.
Our audit procedures in relation to fraud included but were not limited to:
∙Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
∙Gaining an understanding of the internal controls established to mitigate risks related to fraud;
∙Discussing amongst the engagement team the risks of fraud; and
∙Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
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 auditor’s report.
Use of the audit report
This report is made solely to the Company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body for our audit work, for this report, or for the opinions we have formed.
Austin Sammon (Senior Statutory Auditor)
For and on behalf of Forvis Mazars
Chartered Accountants and Statutory Auditor
Mayoralty House
Flood Street
Galway
Ireland
H91 P8PR
25 September 2025
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FIRST ADVANTAGE EUROPE LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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Profit on ordinary activities before taxation
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Tax on profit on ordinary activities
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Profit for the financial year
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The Statement of comprehensive income has been prepared on the basis that all operations are ongoing operations.
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The notes on pages 17 to 34 form part of these financial statements.
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*See note 6 for details on the reclassification.
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FIRST ADVANTAGE EUROPE LTD
REGISTERED NUMBER: 03422709
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 34 form part of these financial statements.
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FIRST ADVANTAGE EUROPE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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Comprehensive income for the year
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Total comprehensive income for the year
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Comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Dividends: Equity capital
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The notes on pages 17 to 34 form part of these financial statements.
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FIRST ADVANTAGE EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
First Advantage Europe Ltd ("the Company") is a private company limited by shares incorporated in England and Wales. The Company's registered number is 03422709. The Company's registered address is Standard Court Park Row, Suite 203, Nottingham, United Kingdom, NG1 6GN.
The principal activity of the Company during the year was the provision of pre-employment screening services.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The financial statements have been presented in Pound Sterling as this is the currency of the primary economic environment in which the Company operates and is rounded to the nearest pound.
The following principal accounting policies have been applied:
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FIRST ADVANTAGE EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Financial Reporting Standard 102 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
∙the requirements of Section 29 Income tax paragraphs 29.28(b) and 29.29. This is an exemption from certain disclosures in relation to Pillar Two model rules where an entity is, or expects to be, within the scope of the Pillar Two legislation. The exemption is dependent on equivalent disclosures being made in the consolidated financial statements. It is not an exemption from all Pillar Two model rules and disclosures. Qualifying entities are still required to provide disclosures in accordance with paragraph 29.26 (g) and 29.28(a) if Pillar two model rules are applicable;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of First Advantage Corporation as at 31 December 2024 and these financial statements may be obtained from https://investors.fadv .com/financials-filings /annual-reports.
The director has assessed the Company's ability to continue as a going concern and has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. In doing this, the director has considered the results for the period, expectations of future trading and the availability of continued funding. On the basis of this information the director is satisfied that the Company will continue as a going concern and so the financial statements have been prepared on this basis.
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services. Turnover from the rendering of services is recognised by reference to the point at which the Company's performance obligations are completed and its work becomes billable.
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FIRST ADVANTAGE EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of comprehensive income over its useful economic life.
Other intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Goodwill and computer software have been recognised as intangible assets and are being amortised over their estimated useful economic life of between 3 and 5 years. The customer list has also been recognised as an intangible asset and is being amortised over its estimated useful life of 13 years.
All amortisation is charged to the Statement of comprehensive income within 'administrative expenses'.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
All depreciation is charged to the Statement of comprehensive income within 'administrative expenses'.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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FIRST ADVANTAGE EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Short-term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are measured initially at transaction price including any transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment for bad and doubtful debts.
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price (which is usually the invoice price). Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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Current and deferred taxation
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past
periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover
tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between
the recognition of income and expenses in the financial statements and their inclusion in tax
assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted
or substantively enacted by the reporting date and that are expected to apply to the reversal of the
timing difference, except for revalued land and investment property where the tax rate that applies to
the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
As an exception to the requirements, an entity shall not take into account the effects of Pillar Two legislation when measuring deferred tax assets and deferred tax liabilities.
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FIRST ADVANTAGE EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentation currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot 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 and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
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 Statement of comprehensive income.
All other foreign exchange gains and losses are presented in the Statement of comprehensive income within 'administrative expenses'.
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Interest income is recognised in the Statement of comprehensive income using the effective interest method.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of comprehensive income when they are incurred. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.
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FIRST ADVANTAGE EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Statement of financial position when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
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FIRST ADVANTAGE EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the Statement of comprehensive income. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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FIRST ADVANTAGE EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the Statement of comprehensive income. They are subsequently measured at fair value with changes in the Statement of comprehensive income.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the Statement of comprehensive income. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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FIRST ADVANTAGE EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements in accordance with UK GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Changes in these estimates and assumptions may have a material impact on the financial statements and accompanying notes.
Significant estimates, judgments, and assumptions, include, but are not limited to, goodwill impairment, revenue recognition, capitalised software, assumptions used for purposes of determining share-based compensation, and income tax liabilities and assets. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from these estimates.
3.1 Critical judgements in applying the Company’s accounting policies
Assessing indicators of impairment
In assessing whether there have been any indicators of impairment of assets, the director has considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairments identified during the current financial year.
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An analysis of turnover is as follows:
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By geographical market:
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FIRST ADVANTAGE EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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See note 6 for details on the reclassification.
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Reclassification of prior year results
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The director considers it appropriate to classify amounts received as recharges from group undertakings as other income. In previous years, these amounts were presented within administrative expenses. The results of the prior year have been adjusted to reflect this reclassification.
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The operating profit is stated after charging:
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Depreciation of tangible fixed assets
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Amortisation of intangible assets
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Operating lease rentals - land and buildings
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Auditor's remuneration for audit services
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During the year, the Company obtained the following services from the Company's auditor and its associates:
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Fees payable to the Company's auditor for the audit of the Company's financial statements
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FIRST ADVANTAGE EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Staff costs, including the director's remuneration, were as follows:
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Other employment taxes and levies
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Cost of defined contribution scheme
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Costs previously classified under administrative expenses have been reclassified to employee costs. The total amount has been included in staff costs for the current year. The prior year amount of £897,551 has been reclassified.
This reclassification has had no impact on the net reserve position of the Company.
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The average monthly number of employees, including the director, during the year was as follows:
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Operations and Customer Care
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Selling, General and Administrative
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The highest paid director received remuneration of £nil (2023: £nil).
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The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £nil (2023: £nil).
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The total accrued pension provision of the highest paid director at 31 December 2024 amounted to £nil (2023: £nil).
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The only key management personnel is the director of the Company.
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FIRST ADVANTAGE EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Current tax:
UK corporation tax on profits for the year
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Adjustments in respect of previous periods
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Deferred tax:
Origination and reversal of timing differences
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Tax on profit on ordinary activities
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FIRST ADVANTAGE EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
12.Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is lower than (2023: higher than) the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities before tax multiplied by standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
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Provision for prior year tax
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Expenses not deductible for tax purposes
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Tax effect on interest income
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Stock compensation expenses
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Deferred tax:
Origination and reversal of timing diferences
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Total tax charge for the year
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Factors that may affect future tax charges
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In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% (rather than remaining at 19%, as previously enacted). There has been no change to corporation tax rates for the financial year ended 31 December 2024. For the financial year ended 31 December 2024 the tax rate is 25.00% (31 December 2023 weighted average tax rate was 23.52%). Deferred taxes at the balance sheet data are measured at 25%.
Pillar Two
First Advantage Europe Ltd is within the scope of the OECD Pillar Two model rules. Pillar Two legislation has been enacted in the UK, the jurisdiction in which the entity is incorporated, and is effective in 2024. Under the legislation, the group is liable to pay a top-up tax in the UK for the difference between the GloBE effective tax rate for each jurisdiction and the 15% minimum rate. In addition, top-up taxes are payable locally where qualifying domestic minimum top-up taxes have been legislated and are in effect. The group applies the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to FRS 102 Section 29 issued in Sebtember 2024.
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FIRST ADVANTAGE EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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FIRST ADVANTAGE EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Debtors: Amounts falling due within one year
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Amounts owed by group undertakings and undertakings in which the Company has a participating interest
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Amounts owed by group undertakings and undertakings in which the Company has a participating interest are unsecured, interest-free and payable on demand.
Other debtors include prepayments and rent deposits of £114,886 and £2,050 respectively (2023: £81,655 and £51,550 respectively).
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FIRST ADVANTAGE EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings and undertakings in which the Company has a participating interest
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Other taxes and social security cost
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Accruals and deferred income
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Amounts owed to group undertakings and undertakings in which the Company has a participating interest are interest-free, unsecured and repayable on demand.
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Credited to profit or loss
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The deferred tax asset is made up as follows:
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Accelerated capital allowances
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Temporary differences relating to share-based payments
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FIRST ADVANTAGE EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Allotted, called up and fully paid
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4,502,752 (2023: 4,502,752) Ordinary shares of £1 each
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These Ordinary shares have attached to them full voting, dividend and capital distribution rights.
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Share premium account
Includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.
Profit and loss account
This reserve reflects the accumulated profits and losses of the Company, less any dividends paid.
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Awards issued under the 2020 Equity Plan:
Awards issued under the 2020 Equity Plan consist of options and profit interests and vest based on two criteria:
(1) Time — awards vest over five years at a rate of 20% per year; and
(2) Performance — awards vest based upon a combination of the five-year time vesting, subject to the Company’s investors receiving a targeted money-on-money return. Options issued under the 2020 Equity Plan generally expire ten years after the grant date. These awards were valued using the Black-Scholes option-pricing model.
RSU awards issued under the 2021 Omnibus Incentive Plan:
Restricted stock units (“RSU”) generally vest annually over three to five years and are valued based on the stock price of First Advantage Corporation at the time of the award.
Option awards issued under the 2021 Omnibus Incentive Plan:
Stock options vest annually, generally over four or five years. Stock options generally expire ten years after the grant date. These awards were valued using the Black-Scholes option-pricing model.
All share-based payments are equity-settled.
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The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents net contributions payable by the Company to the fund and amounted to £307,867 (2023: £300,432). Contributions totalling £nil (2023: £19,850) were payable to the fund at the reporting date and are included in other creditors.
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FIRST ADVANTAGE EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Commitments under operating leases
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At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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The Company has taken advantage of the exemption under section 33 of FRS 102 "The Financial Reporting Standard Applicable in the UK and Republic of Ireland" from the requirement to disclose transactions with other wholly owned members of the group.
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Post balance sheet events
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There have been no significant events affecting the Company since the year end.
The Company is wholly owned by FADV B.V., a corporation registered in The Netherlands.
The ultimate controlling party is First Advantage Corporation, a United States corporation.
First Advantage Corporation is the parent of the smallest and largest group for which consolidated financial statements are prepared, in which the results of the Company are included. The address of the registered office of First Advantage Corporation is 1 Concourse Parkway NE, Suite 200, Atlanta, GA 30328. The consolidated financial statements may be obtained at https://investors.fadv .com/financials-filings /annual-reports.
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