REGISTERED NUMBER: 07850609 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2024

for

Avensure Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

7

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

C Garner

A Hennessy

J M Davenport FCA

J Gateley

REGISTERED OFFICE:

4th Floor

St John's House

2-10 Queen Street

Manchester

M2 5JB

REGISTERED NUMBER:

07850609 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

Riverside House

Kings Reach Businss Park

Yew Street

Stockport

Cheshire

SK4 2HD

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

REVIEW OF BUSINESS

As reported in the profit and loss account, the Company achieved turnover of £16,935,415 (2023: £13,930,256) and recorded profit before taxation of £4,467,354 (2023: £4,039,816 ). The Company achieved earnings before depreciation, interest and tax of £4,960,129 (2023 £4,420,544) a return of 29% on turnover, down from 32% the previous year. This is a good achievement despite the slight fall on the return on turnover and shows continued success in it's operating methods, management's actions and responses to the challenging environment which continues due to the economic climate.

The Company continues to grow steadily with increases in new and renewal clients whilst maintaining excellent

standards of service and high levels of client satisfaction. The directors are confident that the company will continue to grow in the coming year. The Company maintains its commitment to the ongoing investment in staff, operational improvements, technology and software development.

PRINCIPAL RISKS AND UNCERTAINTIES

To maintain its planned levels of growth the Company must continue to both attract new business as well as renew the contracts of its existing client base. The directors remain confident that its client retention rates and new sales performance will maintain this growth moving forward.

To service the Company's growing client base requires continued recruitment and development of qualified advisors and consultants. The Company are dedicated to remaining an outstanding employer and continuing to attract high quality staff.

The Company is confident of meeting the challenges of attracting new business because of the size of the market, the ever increasing regulatory burden on small and medium sized businesses, the ongoing development of new routes to market, and the development of its service. New staff will continue to be recruited to match the growth of the business, and to deliver the excellent standards of service the Company aspires to as demonstrated by its ISO accreditation through The British Assessment Bureau.

Legislative changes continue to have a significant impact on the Company, requiring updates to client information and the need to ensure that all company staff maintain their comprehensive knowledge of the regulations that could affect clients.

The Board reviews the Company's liquidity risks annually and on an ad hoc basis as required. The Board considers short term requirement against available sources of funding taking into account forecast cash flow and manages liquidity risk by maintaining access to a number of sources of funding which are sufficient to meet anticipated funding requirements.

Credit risk is managed through rigorous credit control processes and ongoing monitoring of trade debtors to identify any bad debt and minimise the impact of such exposures. Risk is further mitigated by the high level of customers paying by direct debit or standing order.

The trade debtors presented in the balance sheet are stated net of provision for doubtful debts. Provision is made where the directors consider there to be a risk that the full amount of the outstanding receivable balance will not be recoverable.

KEY PERFORMANCE INDICATORS

Key performance indicators are monitored on a regular basis and these include turnover, gross profit, earnings before interest, tax and depreciation, new and renewed business, and customer service.

The Company achieved turnover of £16,935,415 (2023:£13,930,256), an increase of 22%, and recorded profit before taxation of £4,467,354 (2023: £4,039,8164), an increase of 10%, due to an increase in turnover and cost savings in the year. The Company achieved earnings before depreciation, interest and tax of £4,960,129 (2023 £4,420,544) a return of 29% on turnover, down from 32% the previous year.

The Company has net assets of £9,086,811 (2023: £8,106,284) and the cash balances have increased over the year to £3,267,746 (2023: £2,638,888).

OUR PEOPLE

The Company maintains the belief that its people are key to the long term success of the business. The Company has continued to invest in training and development in order to grow and improve the business.

ON BEHALF OF THE BOARD:

C Garner - Director

29 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the provision of HR/Employment Law and Health and Safety Services.

DIVIDENDS

Interim dividends were paid during the year ended 31 December 2024 of £500,000.

The total distribution of dividends for the year ended 31 December 2024 will be £500,000 (2023 £Nil).

RESEARCH AND DEVELOPMENT

During the year the Company invested in various research and development projects including the development of bespoke software to improve the management of the service provided to clients. The Company also reviewed its research and development activities in order to submit a claim to HMRC for Research & Development tax relief (Part 13, CTA 2009).

FUTURE DEVELOPMENTS

The Company is continuing with its strategy of responsible growth, expanding the routes to market, maintaining its high levels of customer service, recruitment of high quality staff and developing the IT software and platforms used by the Company and its clients and partners.

DIRECTORS

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

C Garner

A Hennessy

Other changes in directors holding office are as follows:

D Garner FCA - resigned 27 June 2024

J M Davenport FCA - appointed 25 September 2024

J Gateley - appointed 25 September 2024

FINANCIAL INSTRUMENTS

The Company does not actively use financial instruments as part of its financial risk management.

POLITICAL DONATIONS AND EXPENDITURE

The Company made no political contributions during the year (2023 £Nil).

UNRECOGNISED BALANCES ON CONTRACTS

At the balance sheet date the value to the Company of the unrecognised element of the long term contracts written by the Company was £28,668,796 (2023 £22,706,273). In line with recognised accounting policies this value has not been reflected in the financial statements.

GOING CONCERN

The Company's business activities, together with the factors likely to affect its future development and position are set out above in the Strategic Report.

The Company closely monitors its funding position throughout the year, including monitoring its performance against its covenants and its facilities against its operational funding requirement.

Budgets are produced annually and flexed budgets are prepared as required during the year to allow management of any business risks including liquidity risks. Using this information the Board are satisfied that they have a reasonable basis upon which to conclude that the Company is able to continue as a going concern for at least 12 months from the date of the financial statements.

Based on their assessment of the Company's financial position, the Board believe that the Company will be able to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing the financial statements.

DISABLED EMPLOYEES

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

CORPORATE SOCIAL RESPONSIBILITY

The Company is committed to taking its corporate social responsibly seriously, and its Corporate Social Responsibility Committee meets regularly and implements initiatives that benefit the local community.The Company has achieved the Carbon Saver Gold for reducing its carbon emissions which shows its commitment to the environment. As the Company grows it is constantly looking for way to improve efficiencies. The Company continues to maintain the ISO9001 standards from The British Assessment Bureau, to ensure a high level of customer and stakeholder satisfaction and the ISO27001 standards, to ensure a high level of cyber and information security.

EMPLOYEE INVOLVEMENT

Staff at all levels are kept fully informed of matters that affect the progress of the Company and which are of interest to them as employees, subject to the constraints of commercial confidentiality. The Company is proud of its Investor in People Accreditation; Gold, which it has held for five years running.The Company undertakes regular employee engagement including questionnaires and forums.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 company'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 company's auditors are aware of that information.

AUDITORS

The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C Garner - Director

29 September 2025

Opinion

We have audited the financial statements of Avensure Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and 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 company's affairs as at 31 December 2024 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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:

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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the HR and Health and Safety advisory sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Nichola Coles (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Riverside House

Kings Reach Businss Park

Yew Street

Stockport

Cheshire

SK4 2HD

29 September 2025

TURNOVER

4

16,935,415

13,930,256

Cost of sales

8,355,016

6,773,041

GROSS PROFIT

8,580,399

7,157,215

Administrative expenses

4,219,118

3,133,188

4,361,281

4,024,027

Other operating income

96,939

89,606

OPERATING PROFIT

6

4,458,220

4,113,633

Interest receivable and similar income

109,849

33,608

4,568,069

4,147,241

Interest payable and similar expenses

7

100,715

107,425

PROFIT BEFORE TAXATION

4,467,354

4,039,816

Tax on profit

8

986,827

763,179

PROFIT FOR THE FINANCIAL YEAR

3,480,527

3,276,637

OTHER COMPREHENSIVE INCOME

Share buy back

(1,982,100

)

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(1,982,100

)

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,498,427

3,276,637

FIXED ASSETS

Intangible assets

10

878,166

768,953

Tangible assets

11

295,889

195,321

1,174,055

964,274

CURRENT ASSETS

Debtors

12

8,440,950

7,805,555

Cash at bank and in hand

3,267,746

2,638,888

11,708,696

10,444,443

CREDITORS

Amounts falling due within one year

13

2,887,031

3,257,358

NET CURRENT ASSETS

8,821,665

7,187,085

TOTAL ASSETS LESS CURRENT LIABILITIES

9,995,720

8,151,359

CREDITORS

Amounts falling due after more than one year

14

(887,442

)

(30,568

)

PROVISIONS FOR LIABILITIES

18

(21,467

)

(14,507

)

NET ASSETS

9,086,811

8,106,284

CAPITAL AND RESERVES

Called up share capital

19

23,530

41,430

Capital redemption reserve

1,790,000

1,772,100

Retained earnings

7,273,281

6,292,754

SHAREHOLDERS' FUNDS

9,086,811

8,106,284

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

C Garner - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

41,430

3,016,117

1,772,100

4,829,647

Changes in equity

Profit for the year

-

3,276,637

-

3,276,637

Total comprehensive income

-

3,276,637

-

3,276,637

Balance at 31 December 2023

41,430

6,292,754

1,772,100

8,106,284

Changes in equity

Profit for the year

-

3,480,527

-

3,480,527

Other comprehensive income

-

(2,000,000

)

17,900

(1,982,100

)

Total comprehensive income

-

1,480,527

17,900

1,498,427

Dividends

-

(500,000

)

-

(500,000

)

Issue of share capital

(17,900

)

-

-

(17,900

)

Balance at 31 December 2024

23,530

7,273,281

1,790,000

9,086,811

Cash flows from operating activities

Cash generated from operations

23

4,534,050

3,794,340

Interest paid

(78,415

)

(579,821

)

Interest element of hire purchase and finance lease rental payments paid

(22,204

)

(9,618

)

Tax paid

(1,097,152

)

(423,118

)

Net cash from operating activities

3,336,279

2,781,783

Cash flows from investing activities

Purchase of intangible fixed assets

(359,975

)

(416,544

)

Purchase of tangible fixed assets

(73,109

)

(39,334

)

Interest received

109,849

33,608

Net cash from investing activities

(323,235

)

(422,270

)

Cash flows from financing activities

New loans in year

1,075,000

-

Loan repayments in year

(877,190

)

(107,659

)

Capital repayments in year

(86,795

)

(71,089

)

Amount introduced by directors

5,000

-

Amount withdrawn by directors

(201

)

(863,148

)

Share buyback

(2,000,000

)

-

Equity dividends paid

(500,000

)

(40,540

)

Net cash from financing activities

(2,384,186

)

(1,082,436

)

Increase in cash and cash equivalents

628,858

1,277,077

Cash and cash equivalents at beginning of year

24

2,638,888

1,361,811

Cash and cash equivalents at end of year

24

3,267,746

2,638,888

1.	STATUTORY INFORMATION

Avensure Limited is a private company, limited by shares, registered in England and Wales, registration number 07850609. The address of the registered office and principal place of business is 4th Floor, St John's House, 2 - 10 Queen Street, Manchester, M2 5JB.

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.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Revenue recognition

The company provides a range of products and services.

For contractual agreements with terms of multiple years the revenue arising from the provision of services is measured by reference to the contract term and the expected phasing of the time spent in the provision of the component services within these contracts. Provision is made for losses.

For any ad-hoc or non-contractual revenue this is recognised at the point the products or services are to the provided to the customer.

Revenue is stated excluding value added tax.

To the extent that invoices are raised to a different pattern than the revenue recognition based on service delivery as described above, appropriate adjustment are made through accrued and deferred income to account for this. On this basis the accrued income is classified as 'Amounts Recognised on Contracts' in the balance sheet.

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Software development costs - These are amounts capitalised in relation to the development of online platforms and are amortised through the profit and loss account over the Directors estimate of its useful economic life, which is 5 years.

Website development costs - These are costs incurred in the development of the company's websites which have been capitalised and are amortised through the profit and loss account over the Directors estimate of its useful economic life, which is 3 years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to leasehold property

-

20% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

20% on cost

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment.

At each reporting date, the Company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that any items of property, plant and equipment have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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.

Research and development

Expenditure on research and development is either written off in the year in which it is incurred or capitalised as an intangible asset depending on the nature of the cost incurred..

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised for the development phase and of a project if and only if certain specific criteria are met to demonstrate the asset will generate probable future economic benefits and that its costs can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives.

If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

Hire purchase and leasing commitments

Assets that are held by the Company under leases which transfer to the Company substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the company are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statements of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability, finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's policy on borrowing costs . Contingent rentals are recognised as expenses in the periods in which they are incurred.

Operating lease payments are recognised as an expense on straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company's accounting policies below, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

Intangible & tangible fixed assets

Intangible fixed assets are amortised and tangible fixed assets are depreciated over their useful economic lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Revenue recognition

Revenue arises from the provision of services under contractual agreements typically ranging from one to five years, and services provided on an ad-hoc basis. The company accounts for revenue with reference to the duration of the contracts and the expected phasing of time spent in the provision of the component services within these contracts. In deciding on the expected phasing of time spent in the provision of the component services, the Directors make judgements, estimates and assumptions based on experience and other factors annually.

Accrued income arises where revenue is recognised ahead of the invoicing profile, which in the majority of case occurs evenly over the contractual term.

Amounts recognised under contracts

This represents the difference between invoiced sales and work carried out for which revenue must be recognised in line with FRS 102 revenue recognition rules. The balance includes a provision to the extent that customers fail to meet their contractual obligations. The estimate used in the calculation for the provision for contract cancellation is an area where significant judgement has been made.

Bad debt provision

An area where a significant judgement has been made is the bad debt provision which amounts to £1,435,740 (2023 £793,884) in the year.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.12.24

31.12.23

£

£

HR/Health & Safety Services

15,242,116

13,027,151

Other Services

1,693,299

903,105

16,935,415

13,930,256

An analysis of turnover by geographical market is given below:

31.12.24

31.12.23

£

£

United Kingdom

16,935,415

13,930,256

16,935,415

13,930,256

5.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

6,749,664

5,420,416

Social security costs

801,288

640,982

Other pension costs

98,764

80,371

7,649,716

6,141,769

The average number of employees during the year was as follows:

31.12.24

31.12.23

Sales

52

41

Administration

34

27

Consultants

53

47

139

115

31.12.24

31.12.23

£

£

Directors' remuneration

1,030,763

804,551

Directors' pension contributions to money purchase schemes

2,201

1,321

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

1

Information regarding the highest paid director is as follows:

31.12.24

31.12.23

£

£

Emoluments etc

543,319

447,750

6.	OPERATING PROFIT

The operating profit is stated after charging:

31.12.24

31.12.23

£

£

Other operating leases

282,341

227,940

Depreciation - owned assets

36,230

28,437

Depreciation - assets on hire purchase contracts and finance leases

102,609

67,452

Loss on disposal of fixed assets

2,459

-

Software development costs amortisation

248,136

176,484

Website development costs amortisation

2,626

929

Auditors' remuneration

15,949

15,927