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

The board are pleased with the results for the financial year.

The results for the year are set out on page 10.

The company is a cost plus company serving the wider group.

The turnover for the year 2024 has been calculated on a cost-plus arrangement of 0% on professional placement employee costs and 10% on operational, finance & administration costs using the Berry Ratio method.

The company is financially secure and in a good position to take advantage of any opportunities which may arise in the future.

The directors aim to maintain the management policies which have resulted in the company's performance and growth over the years.

The key business risks and uncertainties affecting the business are considered to relate to competition, suppliers, the economic environment, exchange differences and staff retention. Most notably, the business currently arises from companies in the United States of America requiring local business activity in the United Kingdom. Such business activity may fluctuate, or alter due to regulatory, economic, or other external factors. However, even a reduced business volume would still provide for adequate cost recovery, and the past and current speed of growth indicates that these uncertainties do not constitute a material concern.

Fluctuations in currency markets can impact both the top and bottom line in the Profit and Loss Account; most notably the US Dollar against Pound Sterling. Ability to collect on related party receivable balances is linked to the ability of the wider group to continue to generate sufficient cashflows.

The company continued to grow and expand during 2024. The company is a cost plus entity serving the wider group. The company hires staff in various jurisdictions to work for customers belonging to the wider group. As such payroll related costs are the largest expense and key generator of revenue growth.

Professional placement headcount increased by 17% to 993 employees at the reporting date (2023: 847).

As a result of the change in cost plus calculation in the period the company has reported a post tax profit of £976,663 (2023: £881,810). At the balance sheet date the company had current assets of £29,751,795 (2023: £27,061,917), current liabilities of £21,769,758 (2023: £20,056,543) and net assets of £7,982,037 (2023: £7,005,374).

The company evaluates its progress throughout the year in relation to key elements of its strategy. The board monitors the progress of the company by reference to the following financial key performance indicators: remuneration costs and turnover per professional placement employee.

2024         2023

Professional placement employee remuneration    £144,619,714     £124,188,686

Turnover per professional placement employee £162,575     £166,614

The board monitors the progress of the company by reference to the following non-financial key performance indicators: professional placement employee count, customer satisfaction and employee retention. The most important metric is employee count.

2024        2023

Professional Placement Employee Count     993      847    

The directors acknowledge their duty under s.172 of the Companies Act 2006 and consider that they have, both individually and together, acted in the way that, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole. In doing so, they have had regard to:

• the likely consequences of any decision in the long term: decisions taken during the year are made in the context of the long-term strategy for the group to which the company belongs.

• the interests of the company’s employees: Our employees are fundamental to us achieving our long-term strategic objectives. Our people are critical to the success of our business and the directors have ultimate responsibility for ensuring the company's decisions consider their interests.

• the need to foster the company’s business relationships with suppliers (the company's only customers are fellow group companies). The company maintains good working relationships with its suppliers, ensuring effective communication and payments are made in line with payment terms.

• the impact of the company’s operations on the community and the environment The company operates honestly and transparently. We consider the impact on the environment on our day-to-day operations and how we can minimise this.

• the desirability of the company maintaining a reputation for high standards of business conduct. Our intention is to behave in a responsible manner, operating within the high standard of business conduct and good corporate governance.

• the need to act fairly between members of the company: Our intention is to behave responsibly towards the shareholders of the ultimate controlling party in the group and treat them fairly and equally, so that they too may benefit from the successful delivery of our strategic objectives.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2024.

The principal activity of the company continued to be that of the provision of sales representative services to the parent company which act as a global employer of record assisting its customers to expand into UK market using its full-service integrated employment platform.

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The company maintains insurance policies on behalf of all the directors against liability arising from negligence, breach of duty and breach of trust in relation to the company.

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

The company's current policy concerning the payment of trade creditors is to:

• settle the terms of payment with suppliers when agreeing the terms of each transaction;

• ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and

• pay in accordance with the company's contractual and other legal obligations.

Trade creditors of the company at the year end were equivalent to 30 day's purchases, based on the average daily amount invoiced by suppliers during the year.

The company operates a treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the company’s activities.

The company’s principal financial instruments include intercompany debt, the main purpose of which is to raise finance for the company’s operations. In addition, the company has various other financial assets and liabilities such as intercompany debtors and trade creditors arising directly from its operations.

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities.

The company's approach to managing liquidity is to ensure that it will have sufficient cash at bank and in hand available on demand to meet its liabilities when they are due. The company manages liquidity risk through detailed ongoing reviews of expenditures and cashflow forecasts, in light of current and anticipated operational activities and cashflows.

Cash at bank and in hand are held in bank accounts on demand in order to ensure sufficient liquidity is available to meet operational requirements.

The company has no interest-bearing borrowings and does not currently earn interest on its cash and cash equivalents placed on deposit. As such the company's exposure to interest rate risk is considered to be minimal.

Foreign exchange risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The company manages foreign exchange risk by monitoring its operating cashflow requirements in order to ensure that it has sufficient foreign currency reserves available to meet its local currency cashflow requirements in the territories from where it currently incurs supplies. The company maintains local currency bank accounts in many of the countries from which it incurs supplies in order to meet its short term cashflow requirements.

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the company.

The company is a cost plus company serving the wider group and as such credit risk is limited to group performance.

The company operates bank accounts in many of the jurisdictions in which it incurs supplies in order to diversify the credit risk arising on its deposits. Cash at bank and in hand are available on demand and the company monitors the credit risks of the banks with which it places deposits.

The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. The company does not hold any collateral.

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company's policy is to consult and discuss with employees, through staff councils and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

There is no specific employee share scheme in place at present, but the UK entity does facilitate our customers to award equity in their own businesses to their G-P professionals.

The company maintains good working relationships with its suppliers, ensuring effective communication and payments are made in line with payment terms.

There have been no significant events after the reporting date that may significantly affect the company operations at the balance sheet date or the company's state of affairs in future years.

The directors aim to maintain the management policies which have resulted in the company's performance and growth over the years. Through careful consideration of the risks and uncertainties highlighted in the Strategic Report, the directors believe that the company will continue to grow despite the challenges arising from them. Expansion of the customer base to include Asian and European customers over the next 12 to 24 months will further diversify and grow the revenue base.

Benee Consulting Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

A financial review of the results, forecasts and cash flows are performed on a periodic basis between the management team and the Board. As a consequence the directors believe that the company is able to manage its business and cash flow requirements successfully.

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements. Accordingly they continue to adopt the going concern basis in preparing the Strategic report, Directors' report and financial statements.

The Globalization Partners Group plans to continue running the business on a going concern basis as the volume of employees on payroll, the most important metric of the entities’ operations, continues to increase and has surpassed the levels of the previous financial year.   We do not foresee any adverse external forces which would hamper the current growth rate of the companies operations as we continue to experience a steady increase in our revenue each quarter. Since 2019 we have expanded our customer base from the US to EMEA and APAC and continue to experience growth from all three regions for our UK operations.

The directors are responsible for preparing the annual report 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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• 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.

We have audited the financial statements of Globalization Partners Ltd (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are 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. 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 our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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 and the directors' report.

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; or

• the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report.

As explained more fully in the directors' responsibilities statement, set out on page 3, 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 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 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.

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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Reviewing minutes of meetings of those charged with governance;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.  

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company's member 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 member 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 member for our audit work, for this report, or for the opinions we have formed.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Globalization Partners Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2 Minton Place, Victoria Road, Bicester, OX26 6QB. The trading address is Eagle Star House, 5-7 Upper Queen Street, Belfast, Northern Ireland. BT1 6FB.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

A financial review of the results, forecasts and cash flows are performed on a periodic basis between the management team and the Board. As a consequence the directors believe that the company is able to manage its business and cash flow requirements successfully.true

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements. Accordingly they continue to adopt the going concern basis in preparing the Strategic report, Directors' report and financial statements.

The Globalization Partners group plans to continue running the business on a going concern basis as the volume of professional placement employees on payroll, the most important metric of the entities’ operations, continues to increase and has surpassed the levels of the previous financial year.   We do not foresee any adverse external forces which would hamper the current growth rate of the companies operations as we continue to experience a steady increase in our revenue each quarter. Since 2019 we have expanded our customer base from the US to EMEA and APAC and continue to experience growth from all three regions for our UK operations.

The UK entity derives its revenue primarily from the provision of professional workforce services on behalf of the Parent Group’s billing hubs.

The turnover for the 2024 year for the UK entity has been calculated on a cost-plus arrangement method in accordance with intercompany service agreements with the Parent group’s billing hub entities. The entity applies a transfer pricing mark-up the costs incurred in the UK business. The Berry Ratio method is applied whereby the professional placement employee costs, which are considered to be passed on to the end-customer, are recharged at cost plus 0% mark-up and operational, finance & administration costs are recharged at cost plus 10%.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet 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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payroll liabilities associated with the exercise of options which are provided to the company's professional placement employees by the Group's customers, are recognised as an expense at the point of exercise.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

An analysis of the company's turnover is as follows:

On 1 January 2023, in line with a change in Group transfer pricing, there was an amendment to the intercompany service agreement to provide for a change in cost-plus methodology. The Berry Ratio method is applied whereby the professional placement employee costs, which are considered to be passed on to the end-customer, are recharged at cost plus 0% mark-up and operational, finance & administration costs are recharged at cost plus 10%.

Research and development tax credits include tax grants receivable from the UK government in respect of qualifying research and development expenditure incurred.

In August 2022, the company and its parent company entered into a grant agreement with Invest Northern Ireland.

The grant is awarded based on the number of employed workers based in Northern Ireland, up to a maximum of 75 workers by 30 June 2024. The company must also commit to continue to increase its headcount in Northern Ireland further.

The grant award is £8,000 per worker. During the reporting the period the company received £64,000 (2023: £200,000) based on headcount achieved and audited of 8 (2023: 25).

Research and development tax credits include tax grants receivable from the UK government in respect of qualifying research and development expenditure incurred.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration expensed to Profit and Loss comprised:

Professional placement employees are those who are placed to work for the customers of the wider group.

Finance and admin employees are those who work in the company's internal support team.

The company directors are also the directors of other group companies. As such, director's services to the company are incidental to duties as a director of other group companies. Therefore, there is no director's remuneration to be disclosed for the current and comparative years in these financial statements. The portion of directors' time spent on services to the company is not considered significant.

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

The inter-group balances carry no right to interest and are repayable on demand.

The inter-group balances carry no right to interest and are repayable on demand.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The deferred tax asset set out above is expected to reverse within 12 months and relates to retirement benefit obligations.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

As at the balance sheet date, the company had an unpaid pension creditor of £958,424 (2023: £943,834).

The company has one class of ordinary shares which carry no right to fixed income.

The company does not offer its employees share based payment awards over the equity of the company or the equity of fellow group companies.

However, certain professional placement employees of the company are provided options over the stock belonging to the Group's customers and their fellow Group companies. Upon an option exercise the company ensures that payroll taxes are applied in accordance with the requirements of the relevant jurisdiction. The employee taxes are recognised in profit and loss and are reimbursed to the company by its parent company. The company incurs employers' social security which is reimbursed by its parent company.

Accounting for share based payments under Section 26 is not applicable on the basis that the equity issued is not equity belonging to the Group.

An accrual for share related pay is also not applicable on the basis that there is no applicable cost to the company.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

There have been no significant events after the reporting date that may significantly affect the company operations at the balance sheet date or the company's state of affairs in future years.

The company has taken advantage of the exemption available per paragraph 33.1A of FRS 102 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.

During the year, the immediate parent company was Globalization Partners International Holdings LLC, a company registered in the United States of America.

The company is included in the consolidated accounts of Globalization Partners International Holdings LLC, these are not publicly available consolidated accounts.

The ultimate controlling party throughout the year was Ms Nicole M Sahin.