REGISTERED NUMBER: 06681810 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

ARC (NORWICH) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

7

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

C Ford

M P Noake

A M Miller

A Ross

J Tingle

D J Miller

SECRETARY:

M P Noake

REGISTERED OFFICE:

Nedeham House

22 St Stephens Road

Norwich

Norfolk

NR1 3QU

REGISTERED NUMBER:

06681810 (England and Wales)

AUDITORS:

Sexty & Co

Chartered Certified Accountants

& Statutory Auditor

124 Thorpe Road

Norwich

Norfolk

NR1 1RS

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

REVIEW OF BUSINESS

The company recorded a decrease in turnover during the year but an increase in profits which is testament to the strategies put in place during the year to combat the reduced profits in the prior year. The management team was reorganised and implemented in Q1 2024 addressing significant weakness and underperformance which was identified and is progressing very well. There was also a major restructuring of shareholdings during the year which resulted in the company no longer being a subsidiary of Able HR Ltd which occurred on 23 July 2024.

Financial KPIs

Unit

2024

2023

Turnover

£'000

32,211

30,995

Gross Profit

£'000

3,614

3,354

Profit/(Loss) after tax

£'000

338

240

Shareholder Funds

£'000

331

403

Current assets as a % of liabilities 103.41 (2023 - 104.93)

Average number of employees 165 (2023 - 146)

PRINCIPAL RISKS AND UNCERTAINTIES

Management have identified below a summary of the main risks that could potentially impact the business’

operating and financial performance.

Macro economic environment

The recruitment sector is particularly susceptible to changes in the economic environment, management seek to manage this risk by continuing to diversify in the recruitment activities which assist in cushioning the impact of economic cycles and sector demand. The temporary recruitment market continues to reflect pressure, both top line revenue and margin, as customers seek to amend requirements while reducing price. Pressure on margins continues as recruitment suppliers and vendor management providers seek to maintain customer accounts and gain market share in the increasingly competitive environment. Labour shortages across all sectors increased and caused significant impacts with wages levels among the pool of temporary workers. The war in Ukraine has been the major factor affecting a lot of sectors with it increasing the cost of living crisis in the UK. The strategy to spread risk across different industries is also still being applied.

Competition

Given the low barriers to entry into the recruitment market, the UK is a highly competitive and fragmented market for recruitment suppliers to enter. Our competitors range from large multinationals to small privately owned businesses and, therefore, it is imperative for the business that it builds and retains strong client relationships and key contacts.

Technology

IT plays a pivotal role in the business’ operations and, therefore, the growing dependency on IT makes the potential impact of disruptions even greater. Key IT-related risks include failure of IT infrastructure, leading to loss of service or a leakage of confidential business information.The business continues to review and improve its IT project risk management, including monitoring, security and compliance. The company is reliant on a number of technology systems and suppliers in providing its services to clients and disaster recovery solutions, which are periodically reviewed and enhanced by management. The company is not only using technology for efficiencies internally, but also to help with its offering to clients. Investments in technology over the next couple of years will hopefully help in the diversification plan. Part of our plans was the implementation of upgraded software systems in the final quarter of 2021 to improve productivity. This has been ongoing and will provide some efficiency benefits in the coming years.

Regulatory environment

In common with many other sectors, the recruitment industry is now governed by increasing levels of regulation, bringing with them both opportunities and risks. In addition, clients now require more complex levels of compliance in their contractual arrangements with the business. Management takes its responsibilities seriously, it is committed to meeting all of its regulatory responsibilities and continues to maintain its internal controls and processes to ensure compliance with respect of legal and contractual obligations.

ON BEHALF OF THE BOARD:

C Ford - Director

25 September 2025

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

DIVIDENDS

Interim dividends of £410,484 were paid in the year.

DIRECTORS

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

C Ford

M P Noake

A M Miller

Other changes in directors holding office are as follows:

A Ross - appointed 23 July 2024

J Tingle - appointed 23 July 2024

D J Miller - appointed 23 July 2024

OBJECTIVES AND POLICIES

The market will remain challenging across the UK staffing industry in 2025. The biggest challenge over the next 12 months will continue to be the wage pressures due to the shortage of staff, cost of living and the current energy crisis.

The directors will continue to spend a lot of time selecting good industries to diversify into in order to spread any risk to further improve and maintain the company’s healthy position and overcome any uncertainty. Training provision using the driving simulator is something that will help in the battle with the lack of staffing There will remain a focus on quality, productivity of staff and management of operating costs.

The directors are not aware, at the date of this report, of any likely major changes in the company’s activities in the next year .

PRICE RISK, CREDIT RISK, LIQUIDITY RISK AND CASH FLOW RISK

Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Company policies are aimed at minimising such losses and rigorous credit checking are in place prior to the commencement of trade with a customer and at every anniversary thereafter. Details of the company’s debtors are shown in the notes to the financial statements.

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The company aims to mitigate liquidity risks by managing cash generation by its operations and applying cash collection targets across the client base.

Cash flow risks is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability such as future interest payments on a variable rate debt. The company does not have any external financial assets or liabilities with significant exposure to interest rate risk.

Employment of disabled persons

The company continues to give fair consideration to applications for employment by disabled persons, bearing in mind their abilities. In the event of an employee becoming disabled while working for the Company, every effort will be made to ensure continued employment and retraining will be provided where practicable.

Employee involvement

Internal development and opportunities for existing employees is actively encouraged because we know that it promotes morale in the team. Employees are actively encouraged to present their suggestions and views on the company’s performance and allowed to offer new ideas.

Directors' liabilities

The company has granted an indemnity to one or more of its directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third party indemnity provision remains in force as at the date of approving the Directors’ report.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Sexty & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C Ford - Director

25 September 2025

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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 have made enquiries with management regarding their procedures for complying with laws and regulations along with detecting and preventing fraud. We also review minutes of meetings and any published news articles to identify any instances of non-compliance with laws and regulations.

- Evidence has been obtained where applicable. Written representation has been obtained to confirm there have been no breaches of laws and regulations.

- The audit procedures are designed so that with reasonable assurance, material misstatements can be detected, including those relating to fraud. Specifically, areas which involve provisions or estimations have been tested where material.

- We consider our approach to be reasonable for this entity.

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

Use of our report

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

I A Barlow (Senior Statutory Auditor)

for and on behalf of Sexty & Co

Chartered Certified Accountants

& Statutory Auditor

124 Thorpe Road

Norwich

Norfolk

NR1 1RS

25 September 2025

TURNOVER

32,210,879

30,994,627

Cost of sales

28,596,499

27,640,527

GROSS PROFIT

3,614,380

3,354,100

Administrative expenses

2,944,364

2,829,121

OPERATING PROFIT

4

670,016

524,979

Interest receivable and similar income

-

1,081

670,016

526,060

Interest payable and similar expenses

6

216,763

183,410

PROFIT BEFORE TAXATION

453,253

342,650

Tax on profit

7

115,058

102,382

PROFIT FOR THE FINANCIAL YEAR

338,195

240,268

PROFIT FOR THE YEAR

338,195

240,268

OTHER COMPREHENSIVE INCOME

Purchase of own shares

100

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

100

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

338,295

240,268

FIXED ASSETS

Intangible assets

9

28,554

32,374

Tangible assets

10

155,698

181,071

184,252

213,445

CURRENT ASSETS

Debtors

11

4,456,856

4,708,681

Cash at bank

565,404

27,432

5,022,260

4,736,113

CREDITORS

Amounts falling due within one year

12

4,850,325

4,498,891

NET CURRENT ASSETS

171,935

237,222

TOTAL ASSETS LESS CURRENT LIABILITIES

356,187

450,667

CREDITORS

Amounts falling due after more than one year

13

(6,323

)

(14,572

)

PROVISIONS FOR LIABILITIES

15

(18,600

)

(32,542

)

NET ASSETS

331,264

403,553

CAPITAL AND RESERVES

Called up share capital

16

1,060

1,160

Capital redemption reserve

17

419

319

Retained earnings

17

329,785

402,074

SHAREHOLDERS' FUNDS

331,264

403,553

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2025 and were signed on its behalf by:

C Ford - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

911

363,249

319

364,479

Changes in equity

Issue of share capital

249

-

-

249

Dividends

-

(201,443

)

-

(201,443

)

Total comprehensive income

-

240,268

-

240,268

Balance at 31 December 2023

1,160

402,074

319

403,553

Changes in equity

Purchase of own share capital

(100

)

-

-

(100

)

Dividends

-

(410,484

)

-

(410,484

)

Total comprehensive income

-

338,195

100

338,295

Balance at 31 December 2024

1,060

329,785

419

331,264

Cash flows from operating activities

Cash generated from operations

1

1,406,320

455,144

Interest paid

(216,763

)

(183,410

)

Tax paid

(229,530

)

(65,964

)

Net cash from operating activities

960,027

205,770

Cash flows from investing activities

Purchase of tangible fixed assets

(27,371

)

(44,300

)

Sale of tangible fixed assets

15,900

15,000

Interest received

-

1,081

Net cash from investing activities

(11,471

)

(28,219

)

Cash flows from financing activities

Share issue

(100

)

249

Equity dividends paid

(410,484

)

(201,443

)

Net cash from financing activities

(410,584

)

(201,194

)

Increase/(decrease) in cash and cash equivalents

537,972

(23,643

)

Cash and cash equivalents at beginning of year

2

27,432

51,075

Cash and cash equivalents at end of year

2

565,404

27,432

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit before taxation

453,253

342,650

Depreciation charges

41,147

57,621

Profit on disposal of fixed assets

(481

)

(1,848

)

Finance costs

216,763

183,410

Finance income

-

(1,081

)

710,682

580,752

Decrease/(increase) in trade and other debtors

251,825

(41,075

)

Increase/(decrease) in trade and other creditors

443,813

(84,533

)

Cash generated from operations

1,406,320

455,144

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

565,404

27,432

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

27,432

51,075

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

27,432

537,972

565,404

27,432

537,972

565,404

Debt

Debts falling due within 1 year

(3,272,253

)

(198,675

)

(3,470,928

)

Debts falling due after 1 year

(14,572

)

8,249

(6,323

)

(3,286,825

)

(190,426

)

(3,477,251

)

Total

(3,259,393

)

347,546

(2,911,847

)

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets

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

Computer software is being amortised evenly over its estimated useful life of nil years.

Tangible fixed assets

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

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on reducing balance

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

3.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

1,174,685

1,227,716

Social security costs

120,816

133,145

Other pension costs

19,007

19,957

1,314,508

1,380,818

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

2024

2023

Temporary staff

123

101

Permanent staff

42

46

165

147

2024

2023

£

£

Directors' remuneration

39,250

22,157

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024

2023

£

£

Hire of plant and machinery

29,573

30,830

Other operating leases

123,403

119,692

Depreciation - owned assets

37,325

53,801

Profit on disposal of fixed assets

(481

)

(1,848

)

Computer software amortisation

3,820

3,820

5.	AUDITORS' REMUNERATION

2024

2023

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

8,700

8,430

Auditors remuneration during the year in relation to non-audit services was £13,963 (2023 - nil)

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank interest

216,149

182,700

Bank loan interest

475

710

HMRC interest

139

-

216,763

183,410

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

129,000

100,530

Deferred tax

(13,942

)

1,852

Tax on profit

115,058

102,382

UK corporation tax has been charged at 25% .

Reconciliation of total tax charge included in profit and loss

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

2024

2023

£

£

Profit before tax

453,253

342,650

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

113,313

85,663

Effects of:

Expenses not deductible for tax purposes

9,607

13,352

Income not taxable for tax purposes

(120

)

(462

)

Depreciation in excess of capital allowances

5,920

7,441

Deferred tax

(13,942

)

1,852

Rounding provision

280

-

Adjustment relating to blended corporation tax rate

-

(5,464

)

Total tax charge

115,058

102,382

Tax effects relating to effects of other comprehensive income

2024

Gross

Tax

Net

£

£

£

Purchase of own shares

100

-

100

8.

DIVIDENDS

2024

2023

£

£

Ordinary shares of £0.01 each

Interim

187,551

18,059

C Class shares of £1 each

Interim

222,933

183,384

410,484

201,443