The directors present the strategic report for the year ended 31 December 2024.
The FCDO Cross-Border Conflict Evidence, Policy and Trends (XCEPT) research programme (2020-27, following a recent extension) seeks to better understand conflict-affected borderlands, how conflicts connect across borders, and the factors that shape violent and peaceful behaviour. These insights help inform effective policy and programme responses. Conflicts in the Middle East, Africa and Asia intersect through flows of people, weapons and resources, creating intricate cross-border conflict systems. XCEPT melds mixed-methods research and field data collection with satellite data and open-source investigations to deepen insight on hard-to-access areas. The programme includes the XCEPT Research Fund to enable responsive research on emerging conflicts and to build evidence on what works to stabilise, resolve, and prevent conflict.
Principal risks and uncertainties
Chemonics is committed to effective risk management, which plays a crucial role in shaping programme delivery and business decisions. This approach allows for more efficient use of valuable resources, enhances both strategic and business planning; and strengthens contingency planning. Chemonics consistently identifies, evaluates and analyses risk, supported by a robust reporting system integrated across all its operations and programmes. Starting at Board level and cascading throughout Chemonics, it strives to embed a positive risk culture which encourages openness and discusses pressing business issues in a realistic manner. Risks and mitigation strategies are actively tracked.
Over the last year, Chemonics has faced considerable financial risk from the uncertainty created by the UK’s Foreign, Commonwealth and Development Office (FCDO) announcement that it will be reducing Overseas Development Assistance (ODA) to 0.3% of Gross National Income by 2027. Chemonics has a strong and longstanding strategic relationship with the FCDO. However, the UK government’s decision to reduce ODA funding and the ongoing changes related to the restructure within the Foreign and Commonwealth Office has created uncertainty around continued funding for Chemonics programmes.
At the end of 2024 Chemonics secured the follow-on programme for two key FCDO programmes giving Chemonics comfort over its short-term income streams. However, due to the uncertainty around the new business pipeline, and the delay in any awards whilst FCDO reshapes its programmes, meant that Chemonics reduced discretionary spending in the first half of 2025 and completed a staffing restructure in the latter half of 2025.
In preparing its budgets and considering its Going Concern, Chemonics has ensured that it is structured in such a way that it will be able to respond to funding cuts which may arise over the rest of 2025 and beyond. Chemonics also has a number of contingencies in place to reduce costs further in 2026, if required, without limiting our ability to capitalise on future opportunities.
There are also opportunities including adapting our global portfolio of work to secure contracts with new clients. Parent company Chemonics International Inc's acquisition of two European companies in 2024/2025 has opened access for Chemonics UK staff to work in the European donor market including the European Union, the Deutsche Gesellschaft fur Internationale Zusammenarbeit in Germany and the Agence Francaise de Developpement in France.
Chemonics' long-term strategy has been to create a more flexible operating model and ensure its operating culture allows it to respond and adapt quickly. Chemonics International's European acquisitions were a part of that strategy. Nevertheless, given the potential scale of the changes, Chemonics must continue to adapt and manage resources carefully to ensure it is able to continue to deliver its objectives.
Chemonics has undertaken scenario planning to better understand the potential impact of any further cuts. Those scenarios have been updated on an ongoing basis to reflect the pace of changes the organisation has faced and there are further plans to mitigate the risk to the organisation.
The Senior Leadership Team (SLT) meets weekly and follow a standing agenda that prioritises safeguarding and delivery risks, whilst other risks are covered throughout the rest of the meeting. Risks are collated from each department and reported to the Chemonics and CII Board of Directors. Frequency of Board meetings varies according to risk profile. In Q1 and Q2 of 2025, the Board met weekly in response to increased cash flow risks caused by the change of US Government administration.
Chemonics is continuously examining and improving its approach to risk. This is essential in order to deliver high-profile projects effectively and efficiently in some of the world’s most complex and high-risk environments.
Chemonics monitors risks under eight main categories:
(i) Security
Chemonics is constantly alert to the risk that team members are placed in physical danger or that their wellbeing is affected leading to loss of life, physical and psychological injury, or time out of work.
Each programme has defined security procedures and emergency action plans owned by the team leader. These are reviewed regularly by the UK Head of Security and updated in response to new threats and changes in the security environment. They contain guidance including contextual and threat analysis, an overview of safety and security teams’ crisis management mechanisms and training, for example Hostile Environment Awareness Training. Chemonics’ security-related standard operating procedures are based on the ISO31000 Risk Management process.
All team members have a full Health & Safety induction as part of their onboarding programme, and Safety & Security and Health & Safety policies are available to all team members. All Health & Safety incidents are reported to HR and reviewed for lessons learned.
(ii) Safeguarding
Chemonics treats its safeguarding responsibilities with utmost seriousness and follows the UN definitions of Sexual Exploitation, Abuse, and Harassment. Chemonics has a full-time Safeguarding Manager with responsibility for safeguarding oversight across its portfolio. The role also provides support for programme staff acting as safeguarding ‘focal points’, tasked with maintaining safeguarding processes and plans, as well as connecting to sector-wide best practice in safeguarding approaches. The Safeguarding Manager also works closely with the Board’s Safeguarding Lead, who is one of its Non-Executive Directors.
Chemonics has clear policies and procedures to identify and report safeguarding incidents anonymously and promptly through various media channels. Where programme context necessitates, Chemonics works with the communities it serves to co-develop community-based reporting mechanisms. We escalate investigations to our clients according to established processes.
(iii) Cybersecurity
Cybersecurity risk covers loss or reputational damage caused by cyber-attacks from actors ranging from lone hackers to nation states.
Chemonics invests significantly at CII group level to monitor risks, protect its data and raise levels of cyber-vigilance among all its staff. At group level a Chief Information Security Officer leads a team of three that supports Chemonics’ global data security operations, maintaining cybersecurity defence procedures, responding to threats, and scaling up where programme context requires it.
Chemonics has implemented a robust, layered approach with a mix of monitoring, protection and end-user training aligned with the National Institute of Standards and Technology (NIST) Cyber Security Framework.
Chemonics is Cyber Essentials Plus certified and familiar with UK Government cybersecurity and data security and GDPR regulations.
(iv) Liquidity
Chemonics recognises that the nature of its UK Government contracts means that it often faces significant cash outflows before reimbursement. Chemonics manages its liquidity risk through rigorous weekly cashflow forecasting, credit control and management of aged debtor balances.
Chemonics works collaboratively with FCDO on managing cash flow across its portfolio of contracts. Chemonics is supported by its parent company, CII, removing the need for external funding sources.
(v) Income Pipeline
To ensure revenue growth, Chemonics must secure new income as existing projects come to their end. Chemonics monitors the UK Government aid-funded pipeline on a daily basis and attends supplier market events to ensure it is aware of opportunities and trends in the sector. We have a place on key HMG frameworks including Lots 1 and 2 of the FCDO Integrated Security Fund and Lots 1-7 of the FCDO Global Development Delivery Framework. Every month Chemonics reviews opportunities to assess future prospects.
Chemonics has a proven track record in delivering projects in over 100 countries and expertise in several technical areas, recognising its gold standard offering to the UK Government departments and other clients. With the November 2024 acquisition of Berlin-based Luvent Consulting GmbH, Chemonics has access to the European Union and German development agency (GIZ) pipeline of contracts worth a total £1.35Bn, mitigating concentration risk.
(vi) Reputation
Chemonics is proud of its heritage and manages its reputation carefully. Chemonics defines reputational risk as a risk of underperformance in delivery, resulting in a loss of confidence and trust. Chemonics’ primary focus is quality in delivery across its whole portfolio, recognising that this is the key driver of a positive market perception. Frequent thought leadership interventions and external events help share its expertise with the international development sector and wider audiences. Many Chemonics staff members are also active on charity boards and technical working groups. Additionally, Chemonics monitors national and sector-specific media outlets, government strategies, and have nominated client relationship managers at various levels of the company.
(vii) Recruitment and Resourcing
This is the risk that the correct complement of skills and bandwidth is not available to the company, nor is it able to recruit them successfully. Staff retention and morale are standing agenda items at SLT meetings to ensure the company is best placed to mitigate this risk. Chemonics assesses morale through regular staff surveys, appraisals and interviews and has also convened a group of staff members drawn from across the company who collaborate on issues impacting staff to collate a collegiate staff input from across the business. Regular benchmarking is undertaken, and benefits kept under regular review to ensure staff are being adequately rewarded.
(viii) Finance systems
Throughout 2024 Chemonics finished implementing a new ERP system. This ensures all project time and materials are captured at a granular level for each project to provide prompt and accurate billing to its clients. During 2025 a suite of informative management information will be developed.
Overview of performance
The company's key performance for the period ended 31 December 2024 were as follows:
The results for the year included central overhead recharges and transfer pricing fees paid to CII. Chemonics is undertaking a restructure to enable profitability in the coming years.
Growth strategy
Chemonics is committed to a growth strategy serviced by both organic growth through extensions and uplifts to current programmes as well as winning new awards from existing clients. Alongside this Chemonics is actively winning business from new clients.
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 11.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Crowe UK LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of Chemonics Group UK Limited (the “parent company”) and its subsidiary (the “group”) for the year ended 31 December 2024 which comprise the Group Income Statement, Group Statement of Comprehensive Income, Group Statement of Financial Position and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 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 contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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.
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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the group and of the parent company, 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.
As explained more fully in the directors’ responsibilities statement set out on page 6, 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 group’s and of 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.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the group and the parent company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, including financial reporting legislation and tax regulations. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
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 might be necessary to the group’s ability to operate or to avoid a material penalty. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any.
We also considered the opportunities and incentives that may exist within the group for fraud. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of contract income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Directors about their own identification and assessment of the risks of irregularities, sample testing on the recognition of contract income, sample testing on the posting of journals, reviewing accounting estimates for biases, and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.
In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilies. This description forms part our auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The income statement has been prepared on the basis that all operations are continuing operations.
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
Chemonics Group UK Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1 Benjamin Street, London, UK, EC1M 5QL.
The group consists of Chemonics Group UK Ltd and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Chemonics Group UK Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
The company has elected not to present its individual income statement as permitted by FRS 102. The results of the company are included within the consolidated financial statements.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
We have set out in this report a review of Chemonics' financial performance along with the principal risks and uncertainties. Chemonics also has a letter of support from its parent company, Chemonics International Inc.
In light of the ongoing reduction in ODA funding, Chemonics continues to undertake regular scenario planning exercises. Those include projections of income and planned expenditure, including cashflow, to forecast how various outcomes might affect Chemonics' operations in 2025 and going forward, taking into account the risk of decreased income from various sources. The results of the scenario planning have been used during the year to re-align Chemonics’ cost base to the new level of activities and as a basis from which to formulate a model for strategic planning.
Chemonics is demonstrating that it can adapt to the changing marketplace, nevertheless it remains alert to ongoing uncertainties and risks. Chemonics will continue to monitor the situation and manage its finances accordingly.
The results of the most recent scenario planning, along with the continued support of its parent, indicates that Chemonics has sufficient resources to continue in operational existence for the foreseeable future.
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, being at least twelve months from the date of approval of these financial statements, and are not aware of any other material uncertainties which may adversely affect the organisation. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
The 10-year useful life has been determined based on management’s assessment of the period over which the software is expected to provide the greatest economic benefit to the company. This reflects the anticipated longevity, continued relevance, and sustained utility of the software in supporting business operations.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Contract Revenue
Contracts are reviewed at the end of the period to confirm that milestones have been met and that it is appropriate to recognise revenue in the relevant period.
Bad Debt Provision
Outstanding debts have been reviewed and the company has determined that a bad debt provision is not required. Bad debts are aged and kept under constant review.
Income is generated through the provision of services. Turnover is reported based on the country in which the work is delivered.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
Redundancy payments in the year include £30,000 (2023: £2,893) paid to one (2023: one) member of staff.
The actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 1).
Director’s remuneration includes work performed for the wider Chemonics International Group.
Details of the company's subsidiaries at 31 December 2024 are as follows:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Lease commitments relate to the lease of the companies premises.
During the year the group entered into the following transactions with related parties:
All transactions were undertaken at an arm length basis.
The following amounts were outstanding at the reporting end date:
The following amounts were outstanding at the reporting end date:
Chemonics Group UK Limited is 100% owned by Chemonics International Inc. an entity incorporated in the USA whose registered office is 1275 New Jersey Avenue SE Ste 200, Washington, DC 20003, USA. The parent company is 100% owned by an employee share trust and there are no shareholders that exceed 5% ownership of the ultimate parent company.