The directors present their report and the financial statements for the year ended 31 December 2024.
Review of the Business
The directors present the strategic report for the year ended 31 December 2024.
This strategic report provides a review of the business for the financial year and describes how we manage risks. The report outlines the developments and performance of the UK entity and group during the financial year, the position at the end of the year and discusses the main trends and factors that could affect the future.
Key performance indicators are published to show the performance and position of the company.
Clear purpose
Milk & Honey believes in the power of PR to engage, influence and inspire, so that brands move people and change the world. We are motivated to make a difference as our award-winning PR strategies, specialists and services amplify the voice, prove the value and grow purposeful brands.
Shaped by our values and owned by our team, we prove ― across clients, campaigns and communities ― that purpose is now essential to profitability. Today, we champion truly world-changing clients so that they can be seen, be heard and be good.
Our brand positioning gives us permission to develop innovative services in the PR sector and across geographies and audiences. In recent years we have developed a truly hybrid working environment, with team members working across the UK, while we have also expanded into new and larger offices in Clapham’s iconic Arding and Hobbs building. Within the overarching Hive PR Group, we have expanded the Milk & Honey PR brand and model into the lucrative US market, to Munich and most recently into Singapore. This has created commercial growth in multiple directions but also created a career growth path for our talented teams.
We are a proud member of the B Corp community. Meaning we hold ourselves to external scrutiny around our ethics, environmental activity and social and community impact. This commitment is also reflected in our client partners, all of whom have a clear positive purpose. We are currently recertifying to B Corp ― already one of the world’s highest scoring PR agencies in the world ― and anticipate a significant increase in our positive impact score.
Entrepreneurial spirit and working together
Entrepreneurial spirit and limitless ambition continue to drive us. In the past eight years, we have achieved a huge amount:
• Highest scoring B Corp in marcoms in the world, with a current score of 185 (pending recertification, last verified in ‘22 at 154).
• Named best agency to work for, four times.
• Identified as a top 150 global agency by PRWeek.
• Named one of the top 10 London headquartered agencies by PRWeek in the US.
• Recognised in over 200 award programmes for our work and our workplace.
• Expanded to three continents as well as developing strategic partnerships in high value markets such as the Gulf.
• Top tier ranking for multiple sectors - ESG, corporate, tech, health, B2B, consumer.
• Received 1,250 in-bound leads.
• Named by UBS as one of the top 50 fastest growing companies in London.
• Twice recognized by the FT as one of Europe’s fastest growing businesses.
• Named best mid-sized agency in PRWeek’s prestigious People and Places awards.
• In tough trading conditions grown our global client list from 31 to 43.
• Attracted the best talent, boasting six PRWeek ’30 Under 30’ alumni one Campaign ’40 over 40’.
• A 2024 staff retention rate of 92%.
The company’s principal activity continues to be that of a public relations agency.
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Review of the Business - continued
Milk & Honey PR was set up in 2017. At the end of 2021 we converted the business from an LLP; which gave ownership to the few; to an employee-owned business, which saw ownership transition to the people who work here. This meant restructuring legally. Milk & Honey PR LLP (OC415141) became Milk & Honey PR Ltd (13483734) as of 1 Jan 2022. Our entire team and clients have moved across on existing contracts. All our accreditations were realigned to the new entity.
Milk & Honey PR has now published its sixth ‘People, Purpose, Planet’ B-Corp impact report, available on our website www.milkandhoneypr.com.
Financial performance
Whilst 2024 was a difficult year for our industry, Milk & Honey PR continued to perform solidly with our final results for the year ended 31 December 2024 reporting revenue of £1.9m (2023: £2.1m). We remain focused on investing in our people, upskilling with training and development, while complementing our workforce with industry experts to set us apart.
As a people first business, we reduced our operational expenditure to reflect the adverse market conditions, minimise risk and ensure our team stability, so we were able to offset much of the downwards pressure on our revenue with these savings.
We pitched for more new business than ever before. In a volatile political and economic environment, increased time needed to convert potential clients is a defining industry trend, as is a shift from long-term retainers to shorter term projects. This obviously has impacts in terms of the tempo and value of client wins. This is evidenced in the revenue performance, with consequent effects in terms of profitability.
Risks and uncertainties
There are several risks and uncertainties which could impact our performance. We operate a risk management process which identifies, evaluates and prioritises risks and uncertainties and reviews mitigation activity.
As a communications services business, we are dependent on our team. We remain a people first agency, concentrating time and financial resources on recruitment, training and development programmes. We hope to continue to hire and retain the best of the best.
Milk & Honey PR relies heavily on the leadership and operational support from its parent company, Hive PR Group, including marketing, finance, HR, strategy, IT, legal and recruitment support. Any delays or interruptions in these operations could unfavourably affect the performance of the UK business. However, the group has a team of employees who can support the business and employs risk mitigation strategies.
Milk & Honey PR’s principal foreign currency exposures arise from trading with overseas companies. Our group policy permits but does not demand that these exposures may be hedged to fix the cost in sterling.
The PR industry has seen a huge downturn because of the ongoing economic headwinds, and we at Milk & Honey PR are not immune. However, the mix and diversity of our client base help mitigate significant volatility. Our leadership team actively monitors business operations including costs of the business and cash flow impacts to ensure we are operating in a thoughtful and cost-effective manner, supported and informed by external NEDs to oversee governance and compliance.
Key performance indicators
• Turnover reduced 11% to £1.9m (2023: £2.1m) resulting from a few of our clients having to curb PR spend in the current economic environment.
• Net profit decreased to a loss of £83k, action has since been taken with redundancies made in January 2025
• Cash balance sits at £79k, a reduction compared to 2023 given our strategy of investing in the business and our people, combined with the downward pressures on revenue in the current climate.
• Team ownership remains a focus, with over 87% of our people now co-owning 55% of the business.
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• High carbon client revenue remains at 0% in line with our pledge – though we may work with clients seeking a sustainable transition. We are signatories of the Clean Creatives Pledge.
• Volunteering activities reached 621 hours in 2024, highlighting our teams continued focus on our communities
• We continue to be plastic neutral and carbon neutral – growing our forest to over 16,000 trees and avoiding putting 1,186 tonnes of CO2e into the atmosphere.
Section 172 Statement
The directors are aware of and trained on their statutory duty to promote the success of the Company and this duty underpins the Board’s decision-making processes and the Group’s strategic direction, with due consideration given to the long-term impact of its decisions upon on shareholders, employees, customers and wider stakeholders.
The directors’ decision-making process considers both risk and reward in pursuit of delivering long term value for all our stakeholders and protecting their interests. Awareness and understanding of the current and potential risks to the business, including both financial and non-financial risks, are fundamental to how we manage the business. Further information on risks is provided below.
The directors are committed to acting fairly and operating to high standards of business conduct both a company and in the wider context of all of its stakeholders.
• In discharging the duties of their respective positions and in considering the best interests of the Company, the board of directors, committees of the board, and individual directors shall consider the effects of any action or inaction upon:
o the members of the Company;
o the employees and work force of the Company, its group companies, and its suppliers;
o the interests of its customers as beneficiaries of the purpose of the Company to have a positive impact on society and the environment, taken as a whole;
o community and societal factors, including those of each community in which offices or facilities of the Company, its subsidiaries, or its suppliers are located;
o the local and global environment;
o the short-term and long-term interests of the Company, including benefits that may accrue to the Company from its long-term plans and the possibility that these interests may be best served by the continued independence of the Company;
o the ability of the Company to create a positive impact on society and the environment, taken as a whole; and
o such other matters as may be appropriate in the relevant circumstances
• In discharging their duties, and in determining what is in the best interests of the Company, the board of directors, committees of the board, and individual directors can prioritise considerations of the Company’s ability to create a positive impact on society and the environment, taken as a whole.
Signed by Kirsty Leighton-Thatcher, Founder & Group CEO