The directors present the strategic report for the year ended 31 December 2024.
Analysis of performance:
The Group continues to operate in a highly competitive environment, compounded by a constrained labour market and an escalating cost base. These pressures have adversely affected margins, particularly within its core temporary blue- and white-collar operations, with the Stafforce brand most notably impacted. As a result, significant investments in Nicholas Associates Group Limited initiated in early to mid-2024 were curtailed and, in some cases, reversed during the final quarter.
Brands focused on permanent recruitment also experienced headwinds due to challenging macroeconomic conditions. Similar investment strategies were scaled back in the latter part of the year as the group pivoted towards a Consolidation Strategy.
Despite these challenges, the group remains committed to its long-term strategy of delivering sustainable shareholder value through its ‘Apprentice to Boardroom’ offering. In parallel, it continues to diversify beyond the recruitment sector via its Olano brand, which is primarily focused on e-learning and digital education solutions.
Current trading:
The Group has not been immune to the broader macroeconomic challenges that affected both the global and UK economies throughout 2024. Geopolitical uncertainty—including the formation of a new UK Government—combined with persistently high inflation and only marginal reductions in interest rates, contributed to subdued market conditions, particularly within the permanent placement sector.
Initial investment aimed at expanding the UK Stafforce business was reversed in the second half of 2024, as it became clear that: (i) the anticipated economic recovery in the UK would not materialise, and (ii) the new Government’s proposed policies, including increased costs for UK businesses, were likely to result in stagnation or even recession.
Commercial Risks
As with many businesses, our cash flow and income are subject to fluctuations driven by external factors beyond our control. To mitigate this risk, we operate across a diverse range of sectors and serve a broad client base. The Group continues to strengthen key relationships by delivering value-added services across all markets and brands.
In late 2024, a strategic shift was made to move away from acquiring high-volume, low-margin clients. Instead, the focus was redirected towards our Branch and Ports-based operations, where significantly higher margins are achievable.
The permanent recruitment business remains constrained by two key factors: (i) Candidate indecision, driven by the tension between the need to increase earnings due to rising living costs and the desire for job security in an uncertain economic climate—resulting in prolonged recruitment cycles; and (ii) Economic uncertainty, which has led to a general decline in job availability, as widely reported across industry and mainstream media. The REC noted a consistent fall in permanent placements throughout 2024.
The presence of competitors operating at unsustainable margins in pursuit of short-term market share continues to pose a challenge. We address this by championing service excellence and delivering consistent value to all stakeholders.
Economic risk
The Group's funding is primarily supported through an invoice finance facility with variable interest rates, making profitability sensitive to fluctuations in base rates. Unfortunately, the anticipated decline in interest rates has not materialised, partly due to weak employment data and stagnating economic growth.
Throughout the year, margin pressure from competitors has been felt across all markets. While the barriers to entry in many sectors remain relatively low, increasing regulatory requirements and evolving market expectations—particularly around compliance—present opportunities for the group to differentiate itself and deliver added value.
Credit and Liquidity risk
The Groups principal financial assets consist of cash and trade receivables. To ensure adequate liquidity for foreseeable cash requirements, the Group conducts regular scenario-based forecasting.
Credit risk is actively managed through strict adherence to credit limits, ongoing review of customer payment histories, targeted debt collection efforts, and the use of credit insurance facilities.
Operational risk
The Group remains firmly committed to the training, development, and welfare of its staff, recognising their critical role in driving the continued success of all its brands.
Technology continues to play a vital role in the group’s operations. To mitigate associated risks, the business regularly reviews and updates its disaster recovery plans, with particular focus on resilience against the potential loss of key systems through attack from external actors.
In the short to medium term, the Group also relies on the leadership and strategic direction provided by senior board members and the senior management teams within the Group. Their focus remains on strengthening key client relationships through the delivery of value-added services and cross-brand collaboration.
Future Developments
The Group has continued to enhance its management information systems to drive operational efficiency and uphold the highest standards of compliance. As part of its strategic shift towards higher-margin business, restructuring efforts have commenced within the key areas of Sales and Operations to support sustainable profitability for both the group and its clients.
In addition, the Group has invested in a forward-looking IT strategy, positioning itself as an early adopter of emerging technologies, including artificial intelligence. A clear roadmap is in place to transition towards more sustainable and scalable IT solutions across all brands.
2024 2023
Gross Profit Percentage 14.46% 15.09%
Current Ratio 0.99 1.17
Operating EBITDA £985,970 £5,420,620
The Directors consider that they have acted in a way which is in good faith, most likely to promote the success of the Group and its continuing reputation for high standards of business conduct, and for the benefit of all of its stakeholders, having regard to the stakeholders and matters set out in Section 172 of the UK Companies Act 2006
Our Business Relationships
Honesty, integrity and professionalism are the core principles which drive our culture & are key to maintaining our reputation as a trusted business partner.
Our Stakeholders
Nicholas Associates Holdings Limited demonstrates ongoing commitment to corporate and social responsibility through group company compliance policies and we recognise that meaningful engagement with our key stakeholders is integral to the Group’s continued success
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £15,000. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group'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.
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information of 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 group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Employees are kept aware of developments within the Group through an Annual Seminar and regular briefings which include quarterly Teams Meetings where the directors update the staff on historic performance and future plans. Employee involvement is further encouraged through the Staff Forum which has a direct line of communication to the Chief Executive.
In January 2025 the group acquired Smart Temporary Solutions Limited, a recruitment agency based in Hull.
In accordance with the company's articles, a resolution proposing that Xeinadin Audit Ltd be reappointed as auditor of the group will be put at a General Meeting.
The information below represents the energy use and greenhouse gas (GHG) emissions from electricity and fuel in the UK, for Nicholas Associates Group Limited.
The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per square meter, the recommended ratio for the sector.
The following energy efficiency actions have been taken over the course of the last year:
Decision taken to close Rotherham office. Support staff working from this location were already hybrid working and it is not cost effective to maintain occupancy of the building.
Continuation of Electric Vehicle scheme (Octopus) with additional staff choosing to join the scheme.
ISO 14001 secured in October 2024.
New RM introduced and rolled out in April 2024 for improved remote working.
Partnered with Green the UK to plant 8,000 trees between 2022 and 2024 for carbon offset purposes - figures achieved.
Improved monitoring procedures and auditing across the organisation.
We have audited the financial statements of Nicholas Associates Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
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 group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
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 group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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.
As explained more fully in the directors' responsibilities statement, 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 parent 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 parent 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context relating to the reporting framework (The Companies Act 2006) and relevant taxation compliance regulations.
In addition, we also concluded that there are certain significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements, being those laws relating to environmental and occupational health and safety regulations and also data protection and GDPR guidelines. Due to the nature of the sectors that the group operates in, one of its subsidiary companies is required to register with, and follow guidelines set by the Gangmasters and Labour Abuse Authority, who are the body set up to protect vulnerable and exploited workers.
We understood how the company is complying with these frameworks and regulations by making enquiries of management and those responsible for compliance and corroborated these enquiries with reviews of board minutes and any available correspondence with legal advisors.
We assessed that there were risks of material impact on the financial statements from irregularities, including fraud from the overide of controls by management, timing and recognising of income and in the manipulation of the company's key performance indicators to meet targets.
We carried out procedures to respond to these risks, including enquiries of management about their systems and controls to identify these risks of irregularities, testwork to review a sample of journal entries made during the year, reviewing and testing assumptions made on accounting estimates for management biases and testing the timing and recognition of revenue.
Our audit procedures were designed to respond to risks of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve more sophisticated acts, including concealment, collusion or deliberately failing to record transactions through intentional misrepresentation.
There are inherent limitations within an audit, even though it has been properly planned and carried out in accordance with auditing standards and we cannot be responsible for preventing non-compliance and cannot be expected to detect non compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the 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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £36,703 (2023 - £2,090,236 profit).
Nicholas Associates Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 8 Europa View, Sheffield Business Park, Sheffield, South Yorkshire, S9 1XH.
The group consists of Nicholas Associates Holdings Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Nicholas Associates Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The whole of the group's turnover for the current and comparative years was derived from recruitment services. In the opinion of the directors, none of the turnover of the group is attributable to the geographical markets outside the UK in either the current or comparative year.
Turnover represents net invoiced sales of services, excluding value added tax. Turnover is recognised upon the raising of a weekly invoice following the receipt of employee timesheets.
Goodwill, being the amount paid in connection with the acquisition of a business in 2015, is being amortised evenly over its estimated useful life of seven years.
Goodwill, being the amount paid in connection with the acquisition of a business in 2019, is being amortised evenly over its estimated useful life of five years.
Goodwill, being the amount paid in connection with the acquisition of a business in 2021, is being amortised evenly over its estimated useful life of five years.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors 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.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group 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 group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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 leased 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.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
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 group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
The basis of valuation is shown in the accounting policies.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 1)
Of the charge to current tax in relation to discontinued operations, £0 relates to tax on profits and £0 arose on disposal.
The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
More information on impairment movements in the year is given in note 14.
Details of the company's subsidiaries at 31 December 2024 are as follows:
Amounts due on factored debts at 31 December 2024 relate to one of the group companies. A debenture was created in December 2023 to secure all monies due on factored debts to RBS Finance (UK) Ltd, including a fixed and floating charge over all of the company's undertakings and assets.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
On 4 October 2024 the group disposed of its 100% holding in JMC Aviation Limited. Included in these financial statements are losses of £5,197,914 arising from the company's interests in JMC Aviation Limited up to the date of its disposal.
The net assets above represent those of JMC Aviation Limited together with its wholly owned Canadian subsidiary company, JMC Recruitment Solutions.
The remuneration of key management personnel is as follows.
Mr N Cragg
During the year, director Mr N Cragg and his wife lent Nicholas Associates Holdings Limited£1,065,000. The company repaid £249,900 during the year, leaving a balance owed at the year end of £821,661 (2023: £7,204).
Mr Cragg also had a loan account with one of the group companies. The company owed him £280,592 as at 31 December 2023. During the year he loaned the company a further £375,000 and was repaid £594,402 to leave a balance outstanding at the year end of £61,193. This amount is included within other creditors.
Mr B J Allen
At the year end Mr Allen was owed £87,248 (2023: £1,961) by one of the group companies. This amount is included within other creditors.
Mrs M Cragg
During the previous year, Mrs M Cragg, wife of director Mr N Cragg made a loan to one of the group companies of £800,000. During the year much of this was repaid, leaving a balance at the year end of £11,955 (2023: £780,210) owed by the company. This amount is included within other creditors.