REGISTERED NUMBER: 05532481 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

IMPOWER HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

Q Baer - Chairman

S Skinner

B A Hakin

G Davies

N D Evans

S P Hanson

M R Lloyd

REGISTERED OFFICE:

4th Floor Tuition House

27-37 St George's Road

Wimbledon

London

SW19 4EU

REGISTERED NUMBER:

05532481 (England and Wales)

AUDITORS:

Hartley Fowler LLP

Statutory Auditors

Chartered Accountants

4th Floor Tuition House

27-37 St George's Road

Wimbledon

London

SW19 4EU

The directors present their strategic report of the company and the group for the year ended 31 March 2025.

WHO WE ARE

IMPOWER is the UK's leading independent consultancy firm deeply invested in the transformation of the public sector. Our mission is to enhance outcomes and drive savings for public services. With a keen focus on innovation and collaboration, we strive to make a lasting difference in the communities we serve.

IMPOWER holds a profound belief in the innate value of public services. We exist because public services can be - and should be - improved. For us, improving public services is fundamentally about improving the lives in our neighbourhoods and communities.

Everyone who works for us is deeply committed to enhancing the pivotal role that public services play in our society.

WHAT WE DO

We help public service leaders produce lasting, positive change in complex systems.

Our approach enables organisations to make the required mindset shift towards a focus on outcomes and working across organisational and system boundaries.

We provide the tools that make this easier. We start with the recognition that the problems we want to tackle are complex problems. By this we mean that the challenges are not easily contained and necessitate working with diverse populations with conflicting agendas.

We firmly believe that our approach to positive change has applicability across the breadth of public services, whether provided to individual services such as health or social care, or across a whole system or place.

HOW WE WORK

At the heart of our work is respect for the users of public services and the staff who work in them, and a belief in the importance of unlocking their contributions to positive change.

Collaboration is at the heart of everything we do. Our approach is hands-on, empathetic, and always in tune with the people we're aiming to support.

Our dedicated teams have decades of delivery experience that equips us to tackle high-stakes, complex challenges for public sector organisations through a mix of applied analytics, behavioural science, and primed performance.

Borne from this understanding, and twenty-five years serving the public sector, we developed EDGEWORK®, our unique transformational approach, enabling organisations to deliver results at scale.

OUR IMPACT

The impact of our work is tangible and transformative. Our case studies showcase these successes, highlighting the strategic decision-making and dedicated support that go into our programmes. Examples of our case studies may be found at https://www.impower.co.uk/case-studies/.

Across all sectors, the significance of co-production, evidence-based decision-making, and the integration of lived experiences in designing and implementing change is clear.

This has led to improved outcomes and cost savings. Our work also emphasises the importance of considering children and young people's culture and life stories when assessing their needs, leading to better communication and understanding.

OUR STRATEGIC GOALS FOR 2024/25

In 2024/25, we set out to:

- Grow the organisation in terms of projects and turnover by a factor of 5-15%

- Increase our average contract value and/or duration

- Encourage recognition that our approach to change and transformation has applicability across whole systems and places

- Decrease our reliance on framework opportunities and increase our success rates with competitive tenders

- Develop a coherent and sustained approach to the design and implementation of applied analytics and our supporting toolsets

- Develop company and employer value propositions that build on our high rates of engagement and retention

- Contribute significantly to social value in the communities that we work in, reinforcing our commitment to diversity, equity and inclusion

- Contribute significantly to our clients' environment and sustainability goals, including a commitment to companywide carbon literacy

Our results for the year demonstrate significant progress and success in meeting these strategic goals.

REVIEW OF PERFORMANCE

The company continued to see growth in the year to 31st March 2025, with double digit top-line growth, for the sixth consecutive year.

Turnover increased to £16.1m (2024: £15.3m) and profit before taxation decreased to £1.4m (2024: £2.5m) following one off investments in additional staff costs through the year.

- Turnover grew by 4.9%

- Profit before taxation decreased by 44.2%

- Our average contract length was 5.5 months

- Our digital tools and products were deployed in 38% of our commissions across the year

- Our staff engagement rate at the end of the year was 75%

- 50% of our staff completed Carbon Literacy Training

LOOKING AHEAD

We want to continue the good progress that we have made in recent years, and expect to grow by an excess of 10%, in terms of turnover, profit, projects and employee numbers.

In 2026 we will continue to invest in and grow our capabilities, including investments in applied analytics and our digital toolsets.

We will continue to diversify our offer, to cover a broader range of services, and to invest in new (for IMPOWER) capabilities.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risk facing the business continues to be what the impact the macro environment will have on our clients, their end users and our staff. The risks of cost-of-living pressures, public spending restrictions (including caps on spending with public sector consultancies), the impact of the new government and the continued wars in Ukraine and Gaza, makes the future uncertain for all.

Turnover at IMPOWER could be impacted positively or negatively by these risks, as our clients grapple to manage their limited budgets in challenging times. The business must ensure we are best placed to help our current and future clients to maximise their scarce resources and engage IMPOWER to help them to achieve that goal.

Attracting and retaining the right talent in the business remains a risk. The employment market remains buoyant, and the Directors are committed to ensuring our staff are challenged and able to progress within IMPOWER.

SECTION 172(1) STATEMENT

In performing our duty under Section 172 of the Companies Act 2006, the Board believes that acting in good faith to promote the success of the Company requires us to balance the long term interests of our stakeholders, with reference to the following guiding principles:

1. Long Term Consequences

Our unique EDGEWORK® methodology and Theory of Change approach (used in programmes like Valuing Home) are designed for sustainable, population-level impact, ensuring our decisions support long-term improvement in public service delivery and societal benefit

2. Employees

We invest in our people through professional development, behavioural frameworks, clear leadership, and flexible working, fostering a culture of growth and inclusion.

3. Suppliers, Clients & Partners

We cultivate strong, values-based relationships with clients, local authorities, NHS trusts, and external service providers.

Our governance arrangements ensured resilience and responsiveness during demand shocks, working closely with councils and elected members

4. Community & Environment

We use our consulting expertise to improve system-level outcomes as evidenced by impacting over 30,000 lives via health and social care projects, reflecting our commitment to social value and public service transformation

5. Reputation & Standards of Conduct

As a member of the Management Consultancies Association (MCA), we adhere to the Consulting Excellence standards: ethical behaviour, responsibility, and quality-reinforcing high reputational standards. IMPOWER continues its commitment to the MCA's Chartered Management Consultant (ChMC) employer status

6. Fairness Between Members

We maintain transparent governance and engagement, with professional development and benefit schemes made available equitably across the organisation.

ON BEHALF OF THE BOARD:

S P Hanson - Director

18 September 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of providing management consultancy.

DIVIDENDS

An interim dividend of £1,500,000 was paid on 31 May 2024, and £500,000 paid on 1 November 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2025 was £2,000,000 (2024 £850,000).

DIRECTORS

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

Q Baer - Chairman

S Skinner

B A Hakin

G Davies

N D Evans

S P Hanson

M R Lloyd

Other changes in directors holding office are as follows:

M Cresswell - resigned 31 December 2024

A Lury - resigned 31 December 2024

V L Mickel - resigned 1 August 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Hartley Fowler LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S P Hanson - Director

18 September 2025

Opinion

We have audited the financial statements of Impower Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2025 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

-	adequate accounting records have not been kept 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.

Responsibilities of directors

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

In preparing the financial statements, the directors are responsible for assessing the group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance;

- results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures;

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.

In addition we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

As a result of performing the above, we did not identify any key matters related to the potential risk of fraud or non-compliance with laws and regulations.

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provision of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- reviewing minutes of meetings of those charged with governance, reviewing internal reports and reviewing correspondence with HMRC; and

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale for any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indication of fraud or non-compliance with laws and regulations throughout the audit.

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

Use of our report

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

Jonathan Askew (Senior Statutory Auditor)

for and on behalf of Hartley Fowler LLP

Statutory Auditors

Chartered Accountants

4th Floor Tuition House

27-37 St George's Road

Wimbledon

London

SW19 4EU

19 September 2025

TURNOVER

16,079,691

15,323,103

Administrative expenses

14,793,790

12,881,650

OPERATING PROFIT

4

1,285,901

2,441,453

Interest receivable and similar income

73,764

69,272

PROFIT BEFORE TAXATION

1,359,665

2,510,725

Tax on profit

5

394,228

612,314

PROFIT FOR THE FINANCIAL YEAR

965,437

1,898,411

OTHER COMPREHENSIVE INCOME

Share option reserve

-

(33,428

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(33,428

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

965,437

1,864,983

Profit attributable to:

Owners of the parent

965,437

1,898,411

Total comprehensive income attributable to:

Owners of the parent

965,437

1,864,983

FIXED ASSETS

Intangible assets

8

239,456

159,537

Tangible assets

9

58,656

60,738

Investments

10

-

-

298,112

220,275

CURRENT ASSETS

Debtors

11

3,778,882

3,395,104

Cash at bank

1,865,253

4,309,815

5,644,135

7,704,919

CREDITORS

Amounts falling due within one year

12

2,626,335

3,601,071

NET CURRENT ASSETS

3,017,800

4,103,848

TOTAL ASSETS LESS CURRENT LIABILITIES

3,315,912

4,324,123

PROVISIONS FOR LIABILITIES

14

80,008

53,656

NET ASSETS

3,235,904

4,270,467

CAPITAL AND RESERVES

Called up share capital

15

862

862

Share option reserve

16

89,508

89,508

Retained earnings

16

3,145,534

4,180,097

3,235,904

4,270,467

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2025 and were signed on its behalf by:

S P Hanson - Director

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

-

-

Investments

10

825,002

825,002

825,002

825,002

CURRENT ASSETS

Debtors

11

600

600

Cash at bank

1,013,760

3,023,438

1,014,360

3,024,038

CREDITORS

Amounts falling due within one year

12

1,748,975

3,721,565

NET CURRENT LIABILITIES

(734,615

)

(697,527

)

TOTAL ASSETS LESS CURRENT LIABILITIES

90,387

127,475

CAPITAL AND RESERVES

Called up share capital

15

862

862

Retained earnings

89,525

126,613

90,387

127,475

Company's profit for the financial year

1,962,912

867,247

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2025 and were signed on its behalf by:

S P Hanson - Director

Called up

Share

share

Retained

option

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

800

3,131,686

122,936

3,255,422

Changes in equity

Issue of share capital

62

-

-

62

Total comprehensive income

-

1,898,411

(33,428

)

1,864,983

Dividends

-

(850,000

)

-

(850,000

)

Balance at 31 March 2024

862

4,180,097

89,508

4,270,467

Changes in equity

Total comprehensive income

-

965,437

-

965,437

Dividends

-

(2,000,000

)

-

(2,000,000

)

Balance at 31 March 2025

862

3,145,534

89,508

3,235,904

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

800

109,366

110,166

Changes in equity

Issue of share capital

62

-

62

Total comprehensive income

-

867,247

867,247

Dividends

-

(850,000

)

(850,000

)

Balance at 31 March 2024

862

126,613

127,475

Changes in equity

Total comprehensive income

-

1,962,912

1,962,912

Dividends

-

(2,000,000

)

(2,000,000

)

Balance at 31 March 2025

862

89,525

90,387

Cash flows from operating activities

Cash generated from operations

1

827,062

2,818,123

Tax paid

(1,140,634

)

(256,121

)

Net cash from operating activities

(313,572

)

2,562,002

Cash flows from investing activities

Purchase of intangible fixed assets

(172,376

)

(28,100

)

Purchase of tangible fixed assets

(32,378

)

(41,641

)

Sale of tangible fixed assets

-

765

Interest received

73,764

69,272

Net cash from investing activities

(130,990

)

296

Cash flows from financing activities

Share issue

-

62

Equity dividends paid

(2,000,000

)

(850,000

)

Net cash from financing activities

(2,000,000

)

(849,938

)

(Decrease)/increase in cash and cash equivalents

(2,444,562

)

1,712,360

Cash and cash equivalents at beginning of year

2

4,309,815

2,597,455

Cash and cash equivalents at end of year

2

1,865,253

4,309,815

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

2025

2024

£

£

Profit before taxation

1,359,665

2,510,725

Depreciation charges

126,206

119,295

Loss on disposal of fixed assets

711

1,200

Share option reserve movement

-

(33,428

)

Finance income

(73,764

)

(69,272

)

1,412,818

2,528,520

Increase in trade and other debtors

(226,791

)

(726,737

)

(Decrease)/increase in trade and other creditors

(358,965

)

1,016,340

Cash generated from operations

827,062

2,818,123

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 March 2025

31/3/25

1/4/24

£

£

Cash and cash equivalents

1,865,253

4,309,815

Year ended 31 March 2024

31/3/24

1/4/23

£

£

Cash and cash equivalents

4,309,815

2,597,455

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/24

Cash flow

At 31/3/25

£

£

£

Net cash

Cash at bank

4,309,815

(2,444,562

)

1,865,253

4,309,815

(2,444,562

)

1,865,253

Total

4,309,815

(2,444,562

)

1,865,253

1.	STATUTORY INFORMATION

Impower Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Going concern

The directors have, at the time of approving the financial statements, a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus they have continued to adopt the going concern basis of accounting in preparing the financial statements.

Basis of consolidation

The group consolidated financial statements include the financial statements of the company and its subsidiary undertakings made up to the balance sheet date. The accounts are adjusted, where appropriate, to conform to group accounting policies. Any intra-group sales and profit are eliminated fully on consolidation.

In the parent company financial statements investments in subsidiaries are accounted for at cost less impairment.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates

The directors have made a number of estimates and assumptions regarding the future, and made some significant judgements in applying the accounting policies. These are shown below:

(i) Accrued income

The directors use their judgement in estimating amounts of work done at the balance sheet date but not invoiced.

(ii) Deferred income

The directors use their judgement in estimating amounts invoiced at the balance sheet date in respect of work to be undertaken in future accounting periods.

Turnover

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

Revenue earned under contracts to provide professional services is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for its performance under these contracts, measured at the fair value of the right to consideration. Revenue is recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations as an accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is included in debtors and payments on account in excess of the relevant amount of revenue are included in creditors.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2004, is being amortised evenly over its estimated useful life of ten years.

Goodwill was fully amortised in 2014.

Intangible assets

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

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

Tangible fixed assets

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

Plant and machinery

-

33% on cost, 25% on cost and 20% on cost

Basic financial instruments

Cash in hand is measured at transaction price.

Debtors: Trade, other debtors and amounts owed by participating interests are measured at transaction price. Trade debtors are amounts due from customers for goods or services performed in the ordinary course of business less any impairment provision. These are recognised as current assets as collection is due within one year or less.

Creditors: Amounts falling due within one year are measured at transaction price. Trade Creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business. These are classified as current liabilities as payment is due within one year or less.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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