Company registration number: 04091619
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
Headquartered in the UK, with subsidiaries in France, Germany, Switzerland, The Netherlands, USA, Brazil, India and Poland, Next Ventures is an IT consultancy and recruitment specialist offering the very best consulting services across niche areas of technology focussing on the large enterprise market globally.
Our customers include well known global brands across all vertical markets, as well as consultancies and systems integrators supplying the large enterprise sector. We focus our activity in five technology practice areas; SAP, Business Applications, Cloud and Infrastructure, Data and Development and Integration. We have a significant focus on software manufacturers such as Oracle, SAP, Microsoft, Salesforce, Tibco and IBM.
Next Ventures has achieved strong organic growth over the last six years, with turnover increasing from £48.4m in 2019, to £89.7m in 2024. The turnover in 2024 is 7.8% lower than the historic record set in 2023 but is still seen as a strong result given the market conditions. Our focus on technology niches and 360 degree recruitment model allows our team to outperform the market by providing the highest quality service to our clients. Our Trainee Academy investment continued in 2024 with intakes in January, April and September. This investment in new talent is supplemented by our continued strategy to hire experienced consultants. We ended 2024 with similar headcount to the start of the year, reflective of the challenging market conditions. The team and culture remains very strong despite market challenges.
During 2024 we continued our investment in our New York office. Our headcount increased to 7 experienced recruiters and the team generated $1m of turnover in the year. We have continued our progress in New York and closed H1 2025 with turnover up more than 18% YoY.
In a very challenging Recruitment market, with continued global economic instability and slower client decision making, we have seen turnover reductions in both our Contract and Perm businesses in 2024. However we have continued to invest in talent for the future whilst maintaining a stable cost base. During 2024 we also suffered from a one-off debt provision of £0.5m due to two clients going into administration. Due to the size of this provision it has been reported as an exceptional item. The reduction in Turnover coupled with the exceptional debt provision has resulted in the Operating profit reducing from £6.9m in 2023 to £4.9m this year. Without the impact of the exceptional item this would have been a 29% reduction.
Next Ventures is significantly diversified across Technology Niche, Geographies, Clients and Recruiters and teams. We supply more than 300 clients across 47 countries and supply consultants from over 50 countries. This, in addition to our strong Net Asset position, means we are in an exceptional position. Overall net fees decreased slightly from £24.9 million in 2023 to £22.3 million in 2024, with a majority of the decline being in contract NFI. Perm fees were also lower than 2023 but only accounts for 5.7% of our Group NFI. Trading is spread well geographically, securing us from regional and national slow-downs. Turnover is derived, 68% (2023 – 69%) across Mainland Europe, 12% (2023 – 13%) in the UK and 20% (2023 – 18%) Rest of World, meaning we are nicely diversified across Geography. Additionally, we are diversified across Vertical Markets and also Technologies. The business model is sound, enabling us to focus on providing high value services whilst being highly responsive to market demands.
As a result of the strong organic growth achieved, we have strengthened further our net asset position from £26.3m to £22.3m . Having such a strong net asset position has meant that the company has been well placed to deal with the risks referred to below, particularly the impacts seen as a result of the ongoing global economic downturn.
Our customers include well known global brands across all vertical markets, as well as consultancies and systems integrators supplying the large enterprise sector. We focus our activity in five technology practice areas; SAP, Business Applications, Cloud and Infrastructure, Data and Development and Integration. We have a significant focus on software manufacturers such as Oracle, SAP, Microsoft, Salesforce, Tibco and IBM.
Next Ventures has achieved strong organic growth over the last six years, with turnover increasing from £48.4m in 2019, to £89.7m in 2024. The turnover in 2024 is 7.8% lower than the historic record set in 2023 but is still seen as a strong result given the market conditions. Our focus on technology niches and 360 degree recruitment model allows our team to outperform the market by providing the highest quality service to our clients. Our Trainee Academy investment continued in 2024 with intakes in January, April and September. This investment in new talent is supplemented by our continued strategy to hire experienced consultants. We ended 2024 with similar headcount to the start of the year, reflective of the challenging market conditions. The team and culture remains very strong despite market challenges.
During 2024 we continued our investment in our New York office. Our headcount increased to 7 experienced recruiters and the team generated $1m of turnover in the year. We have continued our progress in New York and closed H1 2025 with turnover up more than 18% YoY.
In a very challenging Recruitment market, with continued global economic instability and slower client decision making, we have seen turnover reductions in both our Contract and Perm businesses in 2024. However we have continued to invest in talent for the future whilst maintaining a stable cost base. During 2024 we also suffered from a one-off debt provision of £0.5m due to two clients going into administration. Due to the size of this provision it has been reported as an exceptional item. The reduction in Turnover coupled with the exceptional debt provision has resulted in the Operating profit reducing from £6.9m in 2023 to £4.9m this year. Without the impact of the exceptional item this would have been a 29% reduction.
Next Ventures is significantly diversified across Technology Niche, Geographies, Clients and Recruiters and teams. We supply more than 300 clients across 47 countries and supply consultants from over 50 countries. This, in addition to our strong Net Asset position, means we are in an exceptional position. Overall net fees decreased slightly from £24.9 million in 2023 to £22.3 million in 2024, with a majority of the decline being in contract NFI. Perm fees were also lower than 2023 but only accounts for 5.7% of our Group NFI. Trading is spread well geographically, securing us from regional and national slow-downs. Turnover is derived, 68% (2023 – 69%) across Mainland Europe, 12% (2023 – 13%) in the UK and 20% (2023 – 18%) Rest of World, meaning we are nicely diversified across Geography. Additionally, we are diversified across Vertical Markets and also Technologies. The business model is sound, enabling us to focus on providing high value services whilst being highly responsive to market demands.
As a result of the strong organic growth achieved, we have strengthened further our net asset position from £26.3m to £22.3m . Having such a strong net asset position has meant that the company has been well placed to deal with the risks referred to below, particularly the impacts seen as a result of the ongoing global economic downturn.
Management considers profit per head and average contract deal margin % to be barometers of the companies trading performance. During 2024, average contract deal margin % has again increased, albeit marginally, to 20.3%. Operating profit per head has decreased from 2023 given the investment made in the US operation and in operational management and the Next Step academies in the UK.
Non-financial KPIs are not produced here because, given the nature of the business, the company's directors are of the opinion that analysis using such KPIs is not necessary for an understanding of the development, performance or position of the entity.
Non-financial KPIs are not produced here because, given the nature of the business, the company's directors are of the opinion that analysis using such KPIs is not necessary for an understanding of the development, performance or position of the entity.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
We will make further investment in our operation in the USA in the coming years, ensuring that our successful Next Ventures business proposition and methodologies are embedded within teams in the USA office. We anticipate that our presence in the USA can provide significant potential for growth to enhance the strong position we already have from our London based office.
We will continue to hire talented and experienced consultants, provide excellent training and development opportunities to existing consultants and build the next generation of new talent through our "Next Step" academy to sustain continued growth over the coming years.
We will continue to hire talented and experienced consultants, provide excellent training and development opportunities to existing consultants and build the next generation of new talent through our "Next Step" academy to sustain continued growth over the coming years.
The significant risks to our business at this time are that the political situation in the world remains unclear with the effect of the global economic downturn further weakening the worldwide economy. The company took appropriate measures in recent years to continue to trade successfully throughout the pandemic and global lockdowns, and along with a strong net asset position, the Company are well placed to deal with the ongoing situation and expect the Company to achieve strategic organisational and subsidiary growth. As a result of continued Economic uncertainty, we anticipate 2025 NFI to be similar to that of 2024.
Section 172 of the Companies Act 2006 requires Directors to take into consideration the interest of stakeholders and other matters in their decision making. The Board of Directors consider that the decisions they have made during the financial year and the way they have acted have promoted the success of the Company for the benefit of its members as a whole, having regard for the stakeholders and matters set out in s172 (1) (a-f) of the Act.
The Board of Directors act in a way they consider, in good faith, to be most likely to promote the success of the Company for the benefit of its members as a whole. The Company's key stakeholders are its internal staff, candidates, clients and suppliers. At the core of the Board's decision-making process is a desire to make decisions that are for the long-term strategic benefit of the Company and its stakeholders as a whole. This is demonstrated through our many long-standing client and candidate relationships built on a high-quality service and providing a good working environment and to our internal staff.
The Board of Directors act in a way they consider, in good faith, to be most likely to promote the success of the Company for the benefit of its members as a whole. The Company's key stakeholders are its internal staff, candidates, clients and suppliers. At the core of the Board's decision-making process is a desire to make decisions that are for the long-term strategic benefit of the Company and its stakeholders as a whole. This is demonstrated through our many long-standing client and candidate relationships built on a high-quality service and providing a good working environment and to our internal staff.
The Company engages with its employees, customers and suppliers through a variety of means, including:
∙Employees - Internal updates on the Company's development through company-wide email and importantly through face-to-face contact with the owners and leadership team.
∙Customers - Providing support and advice to help to build a strong long-term relationship.
∙Suppliers and candidates - Constant communication and updates on contracts to develop a long-term relationship
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors who served during the year were:
The principal activity of the company during the year was the provision of recruitment services, including the sourcing and placement of candidates in both permanent and contract roles.
The profit for the year, after taxation, amounted to £3,936,762 (2023 - £5,117,466).
The Directors have not recommended a dividend for the year.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙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 to 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.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
In accordance with the requirements of The Company's (Directors’ Report) and Limited Liability Partnerships Energy and Carbon Report Regulations 2018, the Directors would like to disclose the following information for the year ended 31 December 2024.
During the year the Company has used 94,580KWH (2023: 94,700 KWH) or 19 tonnes (2023: 20 tonnes) CO2e of electricity.
During the year the Company has used 94,580KWH (2023: 94,700 KWH) or 19 tonnes (2023: 20 tonnes) CO2e of electricity.
The Company has used the actual KWH data from the utility provider and the applied the “Government conversion factors for the Company reporting” to calculate the CO2e content.
The Company has taken the following action regarding energy efficiency during the year.
• Replacing old equipment with more energy efficient models; and
• Switching off computers and monitors when not in use
• Replacing old equipment with more energy efficient models; and
• Switching off computers and monitors when not in use
The Company has chosen in accordance with Section 414C(11) of the Company Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the Company's Strategic Report the Company's Strategic Report Information Required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEXT VENTURES LIMITED
We have audited the financial statements of Next Ventures Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 United Kingdom, including the Financial Reporting Council'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.
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.
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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEXT VENTURES LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the 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 or the Directors' Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEXT VENTURES LIMITED (CONTINUED)
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations are the most significant including:
∙The Companies Act 2006;
∙Financial Reporting Standard 102;
∙General Data Protection Regulations;
∙UK employment legislation;
∙UK health and safety regulations; and
∙UK tax legislation.
We assessed the extent of compliance with this and other relevant laws and regulations as part of our procedures on the related financial statements items.
We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
∙Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
∙Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
∙Challenging assumptions and judgements made by management in its significant accounting estimates; and
∙Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisationfor faud and identified the greatest potential for fraud in the following areas:
∙Posting of journals to the accounting software which are of a non-routine nature in terms of timing and amount; and
∙Timing of revenue recognition, and the non-inclusion of clawback provisions.
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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEXT VENTURES LIMITED (CONTINUED)
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.
for and on behalf of
Chartered Accountants
Statutory Auditor
2nd Floor, Midas House
62 Goldsworth Road
Surrey
GU21 6LQ
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STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
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STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 11 to 23 form part of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Next Ventures Limited is a private company limited by shares, incorporated in the United Kingdom under the Companies Act 2006, registered in England and Wales. The address of the registered office and principal place of business is given on the company information page of these financial statements.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Next Ventures Group Limited as at 31 December 2024 and these financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.
The Company has taken advantage of the exemption from preparing consolidated financial statements contained in section 401 of the Companies Act 2006.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Revenue arising from temporary placements is recognised once the services has been provided, with the amount billed including the salary cost of those staff who provide the service.
Permanent placement
Revenue arising from permanent placements is recognised based on a percentage of the successful candidate's remuneration package, with revenue recognised either on the offer being accepted by the candidate or once the candidate has started their employment, depending on the agreement in place with the
customer.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Amounts due in respect to invoice discounting are shown as a short term liabilities. The Company can use the facility to draw down 90% of the value of sales invoices excluding VAT. The discount margin is 1.4%.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Judgements:
There were no significant judgements made requiring disclosure.
Estimates:
a) Bad debt provision
Management estimate the recoverability of trade debtors, including a provision on those which are deemed unlikely to be recovered. When assessing the requirement for such a provision, management consider factors including the current credit rating of the customer, the ageing profile of the debt and previous experience.
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
11.Taxation (continued)
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