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Registered number: 08484761


 
 
 
 
 
 
 
 
 
 
ELEVATE LEGAL SERVICES UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

 
ELEVATE LEGAL SERVICES UK LIMITED
 

COMPANY INFORMATION


Directors
S. Harmon 
L. J. M. Brown 
J. P. K. Croft 




Company secretary
S. Harmon



Registered number
08484761



Registered office
One Central Parkway
Newcastle Upon Tyne

England

NE1 3BZ




Independent auditors
Wilder Coe Ltd

Chartered Accountants and Statutory Auditors

1st Floor Sackville House

143-149 Fenchurch Street

London

EC3M 6BL





 
ELEVATE LEGAL SERVICES UK LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 3
Directors' Report
 
4 - 5
Independent Auditors' Report
 
6 - 9
Statement of Comprehensive Income
 
10
Balance Sheet
 
11
Statement of Changes in Equity
 
12
Notes to the Financial Statements
 
13 - 22


 
ELEVATE LEGAL SERVICES UK LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Business review
 
Directors review of the business for the year ended 31 December 2024: 
Elevate Legal Services UK Limited (“ELSUK”), company number: 08484761, with its registered office and principal place of business at One Central Parkway, Newcastle Upon Tyne, NE1 3BZ, is a private limited company incorporated in England and Wales. The Company provides consulting, technology, and services to law departments and law firms offering practical ways to improve efficiency, quality, and business outcomes. 
The Elevate group of companies (“Elevate” or “the Company”) values relationships with like-minded people throughout the legal community and find deep satisfaction in seeing its ideas, innovations, and plain hard work result in real improvements in the careers and lives of its fellow professionals and results for the customers that it serves. Elevate operates as an Alternative Legal Services Provider (“ALSP”), offering a mix of legal support, consulting, and technology services. Elevate focuses on routine legal matters, leveraging advanced technologies like AI to enhance efficiency and reduce costs. Elevate provides flexible legal resourcing, allowing customers access experienced lawyers on a temporary basis. Additionally, Elevate operates with an Alternative Business Structure (“ABS”) license for its ElevateNext UK, Ltd entity, enabling non-lawyer ownership and investment.
The results for the period are set out in the profit and loss account and the position of the company is detailed in the Balance Sheet. 
The 2024 operations were negatively impacted by the intercompany transactions resulting in a operating loss. Despite the loss, the Directors remain confident in the underlying strength of the business. The Directors will continue to monitor the intercompany transactions with the aim to ensure future profitability and sustained growth.
The profit for the year, after taxation, amounted to £9,314,375
 (2023 - loss of £1,959,909).

Position of the business at the year end
As a business, Elevate has seen sustained customer demand across services from the UK this year. The Company was able to grow its revenue by £297,415 or 2%. 
Excluding intercompany transactions, the Company’s gross margin was 2% in 2024 compared to 23% in 2023.
While ELSUK has incurred net operating losses in the past two years, Elevate as a group measures performance based on the success of our business units rather than individual subsidiaries. Business units are broader segments that include multiple subsidiaries. While subsidiaries may incur intercompany expenses, these costs are essential for the overall synergy and operation of the business units. Although these expenses might reduce the profit at the subsidiary level, they do not affect the profitability of the business unit as a whole, which has grown significantly from 2022. 
This approach is particularly aligned with Elevate’s business model, where work is outsourced to various locations depending on customer needs. By focusing on business units, Elevate as a group better manages and optimizes the resources and operations across different locations. This ensures that we meet customer demands efficiently and maintain high service quality.  Elevate’s has a track record of strong performance in a fluctuating consulting market, and  is confident that the Company will continue to operate successfully in the future. 
 
Page 1

 
ELEVATE LEGAL SERVICES UK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Position of the business at the year end (continued)
Elevate has a very clear organic growth strategy aimed to ensure ongoing stakeholder value and all significant business decisions consider both their short and long-term impact on this strategy. Fundamental to delivering this strategy is to continue recruiting and retaining high-calibre lawyers and legal professionals who deliver work of the highest quality and standards to our customers. Central to the success of the business is the development and maintenance of its open, welcoming, and collegiate culture and we invest significant time and resources to ensure that these facets are maintained and developed for the benefit of all those involved with the Company.

Principal risks and uncertainties
 
The principal risks faced by the group are those of general market and economic risks in common with other businesses in the current economic climate. The directors aim to manage these risks in order to maintain and improve on the current level of performance.
The Directors believe the principal risks and uncertainties facing the business are:
 
Economic downturn
A significant downturn in the economy impacting the demand for legal services.
 
Litigation, professional liability, and uninsured risks
Due to the nature of a legal firm and its role in providing legal services, the Company is susceptible to potential liability for negligence, breach of contract, and other customer claims. Any potential claim may be expensive to defend and divert the time and focus of management away from the Company’s operations. Also, this may result in the Company having to pay substantial monetary amounts, could impact on the reputation of the Company, and result in a material adverse effect on Elevate’s business and overall financial condition.
 
Regulatory and compliance risks
The Company operates within the industry which is subject to a range of regulations. Significant implications ranging from reputational damage to criminal prosecution and sentencing could happen if there’s a failure to comply with regulatory and compliance rules. 
 
Personnel
Just like any business, personnel are a prominent asset heavily contributing to its strength andattractiveness. The Company is reliant on its professionals to attract new customers and maintainrelationships with existing ones.
 
Direct competitors
Elevate competes with other ALSP’s in which quality of advice, service, reputation, and value operate as highly competitive factors to distinguish the Company. Despite this, there remains a risk that competitor companies or a newly established company will acquire market share. Competition remains a core risk as any loss of market share could reduce revenue, reduce margins, reduce the ability to recruit new legal professionals and reduce the retention rates of current personnel, any of which could materially adversely affect the business operations and overall financial condition.
 
Information systmes and system security breaches
IT forms an integral part of the business’s operating model and, as such, any breakdown of the information technology system could be significant. Also, as Elevate processes sensitive personal data, it is possible that a security breach could result in some of this data becoming public. Were this to occur, the Company could face liability under data protection laws and could lose the goodwill of any customers affected by such a breach. It could also create reputational damage.

Page 2

 
ELEVATE LEGAL SERVICES UK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Financial key performance indicators
 
Performance measures evaluated monthly include revenue growth, cash flow metrics, as well as performance measures specific to each line of business and trends are compared to prior periods and projections.
The profit for the year, after taxation, amounted to £9,314,375 (
2023 - loss of £1,959,909).
Not including the gain recognised on the gain on release of intercompany debts, the loss for the year, after taxation, amounted to £399,194 (
2023 - £1,959,909).
 
Excluding the intercompany write off gain, the key financial performance indicators are as follows:
 
Revenue growth: £297,415 or 2% favourable (2024 - £16,061,485 vs 2023 - £15,764,070)
 
Loss before tax growth: £1,560,713 or 80% favourable (2024 - £399,196 vs 2023 - £1,959,909)
 
Operating Loss margin in 2024 is 2% compared to 12% in 2023.
 
Profit before taxes excluding intercompany expenses, before interest and taxes is £2,991,296 in 2024
compared to £3,522,696 in 2023.
 
The directors consider the above ratios to be at acceptable levels for the year ended 31 December 2024.
 


This report was approved by the board on 26 September 2025 and signed on its behalf.



S. Harmon
Director

Page 3

 
ELEVATE LEGAL SERVICES UK LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report and the audited financial statements for the year ended 31 December 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent; and

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 2006They 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.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Results and dividends

The profit for the year, after taxation, amounted to £9,314,375 (2023 - loss £1,959,909).

There were no dividends declared in the year.

Directors

The directors who served during the year were:

S. Harmon 
L. J. M. Brown 
J. P. K. Croft 

Future developments

Thare are currenctly no significant plans for future developments.

Page 4

 
ELEVATE LEGAL SERVICES UK LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsWilder Coe Ltdwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 26 September 2025 and signed on its behalf. 
 





S. Harmon
Director

Page 5

 
ELEVATE LEGAL SERVICES UK LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ELEVATE LEGAL SERVICES UK LIMITED
 

Opinion


We have audited the financial statements of Elevate Legal Services UK Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 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.


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 other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 6

 
ELEVATE LEGAL SERVICES UK LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ELEVATE LEGAL SERVICES UK LIMITED (CONTINUED)


Opinion 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 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.


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 Directors' Report.


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


adequate accounting records have not been kept, 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 Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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.


Page 7

 
ELEVATE LEGAL SERVICES UK LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ELEVATE LEGAL SERVICES UK LIMITED (CONTINUED)


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 an Auditors' 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:

Discussions with and enquires of management and those charged with governance were held with a view to  identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. 
The following laws and regulations were identified as being significant to the entity:
 
Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, company law, tax and pensions legislation; and
Those laws and regulations for which non-compliance may be fundamenal to the operating aspects of the business and therefore may have a material effect on the financial statements include health and safety legislation, and various licensing regulations.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprise of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigations or claims; inspection of relevant legal correspondence; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result in fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).


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 Auditors' Report.


Page 8

 
ELEVATE LEGAL SERVICES UK LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ELEVATE LEGAL SERVICES UK LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





Robert Bradman BA CA (Senior Statutory Auditor)
for and on behalf of
 
 
 
 
Wilder Coe Ltd
Chartered Accountants and Statutory Auditors
1st Floor Sackville House
143-149 Fenchurch Street
London
EC3M 6BL

 
Date: 
29 September 2025
Page 9

 
ELEVATE LEGAL SERVICES UK LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
16,061,485
15,764,070

Administrative expenses
  
(16,498,560)
(17,725,774)

Operating loss
  
(437,075)
(1,961,704)

Gain on release of intercompany debt
  
9,713,571
-

Interest receivable and similar income
 7 
37,879
1,795

Profit/(loss) on ordinary activities before taxation
  
9,314,375
(1,959,909)

Taxation on profit/(loss) on ordinary activities
 8 
-
-

Profit/(loss) for the year
  
9,314,375
(1,959,909)

Other comprehensive income for the year
  
-
-

Total comprehensive income for the year
  
9,314,375
(1,959,909)

The notes on pages 13 to 22 form part of these financial statements.

Page 10

 
ELEVATE LEGAL SERVICES UK LIMITED
REGISTERED NUMBER: 08484761

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 9 
66,349
62,453

Current assets
  

Debtors
 10 
3,239,009
5,421,199

Cash at bank and in hand
 11 
1,807,561
437,417

  
5,046,570
5,858,616

Creditors: amounts falling due within one year
 12 
(9,749,162)
(19,871,687)

Net current liabilities
  
 
 
(4,702,592)
 
 
(14,013,071)

Net liabilities
  
(4,636,243)
(13,950,618)


Capital and reserves
  

Allotted, called up and fully paid share capital
  
100
100

Profit and loss account
  
(4,636,343)
(13,950,718)

Equity shareholders' deficit
  
(4,636,243)
(13,950,618)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on  26 September 2025.




S. Harmon
Director

The notes on pages 13 to 22 form part of these financial statements.

Page 11

 
ELEVATE LEGAL SERVICES UK LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2023
100
(11,990,809)
(11,990,709)


Comprehensive income for the year

Loss for the year
-
(1,959,909)
(1,959,909)



At 31 December 2023 and 1 January 2024
100
(13,950,718)
(13,950,618)


Comprehensive income for the year

Profit for the year
-
9,314,375
9,314,375


At 31 December 2024
100
(4,636,343)
(4,636,243)


The notes on pages 13 to 22 form part of these financial statements.

Page 12

 
ELEVATE LEGAL SERVICES UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Elevate Legal Services UK Limited (company number: 08484761), having its registered office and principal place of business at One Central Parkway, Newcastle Upon Tyne, NE1 3BZ, is a private limited company incorporated in England and Wales.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

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).

This information is included in the consolidated financial statements of Elevate Services, Inc as at 31 December 2024 and these financial statements may be obtained from National Registered Agents, Inc. 1209 Orange Street, Wilmington, DE 19801, USA.

 
2.3

Going concern

At 31 December 2024, the Company had net liabilities of £4,636,243 (2023: £13,950,618). However, the directors have prepared the financial statements on the going concern basis because the ultimate parent company has given written assurance it will provide any necessary funding to ensure the company can meet its liabilities as they fall due.
In 2024, Elevate Services, Inc. waived an element of the loan receivable and has continued to maintain sufficient resources to support the Group.
The ultimate parent company's assurance remains in place until the earlier of the following two events: (1) the Company has adequate resources to meet its liabilities as they fall due, or (2) one year from the date the financial statements are approved by the Directors.

Page 13

 
ELEVATE LEGAL SERVICES UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is British Pound Sterling GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'.

 
2.5

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.6

Operating leases: the Company as lessee

Rentals payable under operating leases, including any lease incentives received, are charged to the Statement of Comprehensive Income on a straight line basis over the term of the relevant lease, except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

 
2.7

Interest income

Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.

Page 14

 
ELEVATE LEGAL SERVICES UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

  
2.9

Employee benefits

Short term benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
Termination benefits are recognised immediately as an expense when the group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Bonus and commission plan
The Company operates a bonus and commission plan for employees. An expense is recognised in the Statement of Comprehensive Income when the Company has a legal or constructive obligation to make payments under the plan as a result of past events and a reliable estimate of the obligation can be made.

 
2.10

Taxation

Tax is recognised in the Statement of Comprehensive Income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date.


Page 15

 
ELEVATE LEGAL SERVICES UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Leasehold improvements
-
over the term of the lease
Other fixed assets
-
2.5 years straight-line

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 the Statement of Comprehensive Income.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

 
2.14

Creditors

Short-term creditors are measured at the transaction price.

 
2.15

Financial instruments

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 and loans to related parties.
Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the Balance Sheet date. The impairment loss is recognised in the Statement of Comprehensive Income.
Basic financial liabilities, including creditors, bank overdrafts and loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
 
Page 16

 
ELEVATE LEGAL SERVICES UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.15
Financial instruments (continued)

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be elevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Management are of the opinion that there are no estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities as at year end.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Legal Services
14,813,897
14,093,718

Consulting Services
835,358
1,015,701

Software Services
84,110
314,193

Intercompany Sales
328,120
340,458

16,061,485
15,764,070


2024
2023
£
£

Analysis of turnover by country of destination


United Kingdom
12,212,535
11,982,853

Rest of Europe
2,032,036
2,229,867

Rest of World
1,816,914
1,551,350

16,061,485
15,764,070

Page 17

 
ELEVATE LEGAL SERVICES UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

5.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
19,950
19,000

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


6.


Employees

2024
2023
£
£

Wages and salaries
9,504,318
9,019,883

Cost of defined contribution scheme
210,811
201,913

9,715,129
9,221,796


The average monthly number of employees, including directors, during the year was 127 (2023 - 147).


Directors' remuneration

2024
2023
£
£

Directors' emoluments
870,196
639,114


During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.

The highest paid Director received total remuneration of £870,196 (2023 - £639,114).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £14,400 (2023 - £9,750).


7.


Interest receivable

2024
2023
£
£


Other interest receivable
37,879
1,795

Page 18

 
ELEVATE LEGAL SERVICES UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

8.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profit/(loss) for the year
-
-


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
9,314,375
(1,959,909)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)
2,328,594
(460,981)

Effects of:


Capital allowances for year in excess of depreciation
(974)
(20)

Expenses not deductible for tax purposes
7,972
17,399

Losses surrendered to the group
-
20,075

Movement in deferred tax not recognised
92,801
423,527

Non-taxable gain
(2,428,393)
-

Total tax charge for the year
-
-


Factors that may affect future tax charges

At the Balance Sheet date, the Company has trading losses carried forward of £12,530,178 (2023: £12,158,976) to offset against future profits.
The company has an unrecognised deferred tax asset of £3,132,545 
(2023: £3,039,744) in respect of unutilised tax losses. The directors have concluded that there is insufficient certainty of future taxable profit to allow this to be recognised.

Page 19

 
ELEVATE LEGAL SERVICES UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

9.


Tangible fixed assets





Leasehold improvement
Other fixed assets
Total

£
£
£



Cost


At 1 January 2024
7,414
281,154
288,568


Additions
-
56,370
56,370



At 31 December 2024

7,414
337,524
344,938



Depreciation


At 1 January 2024
7,414
218,701
226,115


Charge for the year on owned assets
-
52,474
52,474



At 31 December 2024

7,414
271,175
278,589



Net book value



At 31 December 2024
-
66,349
66,349



At 31 December 2023
-
62,453
62,453


10.


Debtors

2024
2023
£
£

Due within one year

Trade debtors
2,309,331
3,644,599

Amounts owed by group undertakings
-
184,506

Other debtors
116,931
135,599

Prepayments and accrued income
812,747
1,456,495

3,239,009
5,421,199


Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.


11.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,807,561
437,417


Page 20

 
ELEVATE LEGAL SERVICES UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

12.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
23,870
16,336

Amounts owed to group undertakings
8,892,945
18,560,793

Other taxation and social security
363,217
634,229

Other creditors
77,155
76,270

Accruals and deferred income
391,975
584,059

9,749,162
19,871,687


Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.


13.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to fund and amounted to £210,811 (2023: £201,913). Contributions totalling £77,431 (2023: £71,618) were payable to the fund at the Balance Sheet date and included in creditors.


14.


Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
62,707
118,436

Later than 1 year and not later than 5 years
-
29,636

62,707
148,072


15.


Controlling party

As at 31 December 2024 and 31 December 2023 Elevate Services International B.V., a company incorporated in the Netherlands, was the immediate parent of Elevate Legal Services UK Limited.
As at 31 December 2024 and 31 December 2023 Elevate Services, Inc., a company incorporated in the United States of America, was the ultimate parent of Elevate Legal Services UK Limited.
The ultimate parent company prepares consolidated financial statements, which can be obtained from their registered address at Elevate Services, Inc, National Registered Agents, Inc. 1209 Orange Street, Wilmington, DE 19801, USA.

Page 21

 
ELEVATE LEGAL SERVICES UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

16.


Related party transactions

Remuneration of key management personnel
The only key management personnel are the directors, whose remuneration have been disclosed in note 6.

Transactions with related parties
Included within other debtors is amounts due from a company director of £74,905 (2023: £74,905). Interest is being charged at the HMRC official rate of interest.
Included within debtors is amounts due from fellow subsidiaries of £Nil 
(2023: £184,506).
Included within creditors is amounts due to the ultimate parent of £7,373,285 
(2023: £16,145,283).
Included within creditors is amounts due to the immediate parent of £Nil 
(2023: £6,754).
Included within creditors is amounts due to fellow subsidiaries (excluding the immediate parent) of £1,519,659 
(2023: £2,408,756).
During the year, intercompany sales from the ultimate parent were recognised of £328,120
 (2023: £339,458).
During the year, intercompany sales from fellow subsidiaries were recognised of £Nil (2023: £1,000).
During the year, intercompany management charges from the ultimate parent were recognised of £2,242,074 
(2023: £6,634.285).
During the year, intercompany management charges from fellow subsidiaries were recognised of £1,148,418 
(2023: £815,270).


Page 22