REGISTERED NUMBER: 08837446 (England and Wales)

Group Strategic Report, Report of the Director and

Consolidated Financial Statements

for the Period 1 November 2023 to 31 March 2025

for

Orbital Payroll Group Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

6

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

18

DIRECTOR:

J Myatt

REGISTERED OFFICE:

Digital Media Centre

County Way

Barnsley

South Yorkshire

S70 2JW

REGISTERED NUMBER:

08837446 (England and Wales)

AUDITORS:

Paul Howley & Co Ltd

Chartered Certified Accountants

Statutory Auditors

42 Pitt Street

Barnsley

South Yorkshire

S70 1BB

The director presents his strategic report of the company and the group for the period 1 November 2023 to 31 March 2025.

PRINCIPAL ACTIVITIES

The principal activities of the group are to operate as payroll intermediaries offering outsourced self-employed and PAYE pay models to contingent workers who are engaged on temporary assignments through recruitment agencies.

REVIEW OF BUSINESS

The director made the decision to extend the accounting period to 31st March 2025. The basis of this decision was to align our financial year with the tax year end. The period to 31 March 2025 was a transitional period for the business. We experienced a decline in annualised sales which adversely affected Turnover and Gross Margin. Turnover and Gross Margin for the 17 month period ended 31 March 2025 were £209m and £2.1m compared with £175m and £1.6m in the previous financial year. This was due to adverse market conditions which impacted the whole sector. We also experienced a number of large debtors who defaulted on payment plans which resulted in write offs to the Income Statement of £342k. In order to mitigate these, a business review was conducted which resulted in significant cost savings arising from improved processes and efficiency savings. This had no impact on operations or customer service levels.

The recruitment sector has experienced a lengthy stagnant phase which has curtailed demand for temporary workers. Whilst there is an element of caution regarding any potential upturn, the process and efficiency improvements made during the period have put the business in a strong position to endure a prolonged downturn or scale up quickly if the market improves in 2025.

The bad debt write offs in the period relate to debts from previous years where a payment plan had been agreed, however the debtors had subsequently defaulted on the plan. The remaining debt on the sales ledger is now within agreed terms and fully collectable.

From April 2026 agencies clients supplying temporary workers will become legally responsible for ensuring correct PAYE and National Insurance contributions are made. Moreover, there will be joint and several liability between umbrella companies, agencies and end clients for unpaid tax. It is felt that these changes will be a major opportunity as we have invested heavily in compliance and hold numerous accreditations. In particular our Saferec accreditation gives customers assurance that all tax and national insurances have been calculated correctly and also that they have been paid over to HMRC. We are expecting Saferec’s certification to help increase sales through late 2025 and into 2026 due to the expected tightening of Saferec-specific agency PSL’s in line with the joint and several liability legislation.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks still include adhering to HMRC legislation and any sudden changes to how it interprets compliance enforcement for payroll intermediaries.

The business is sensitive to downturns in the construction industry and is seeking to mitigate this by targeting business within other areas such as education and healthcare.

FINANCIAL KEY PERFORMANCE INDICATORS

The directors uses the following key performance indicator to monitor performance of the business:

Gross Margin: 1.0% (2023: 0.9%)

DIRECTOR'S STATEMENT OF COMPLIANCE WITH DUTY TO PROMOTE THE SUCCESS OF THE GROUP

The Director of Orbital Payroll Group Limited has a legal responsibility under section 172 of the Companies Act 2006 in the way he considers, in good faith, would be most likely to promote the company’s success for the benefit of its key stakeholders as a whole. The Director recognises that building strong relationships with business stakeholders will enable the company to deliver on its long-term goals and operate the business in a sustainable way.

The director of the company has acted in accordance with a set of general duties and considerations which are detailed in section 172 of the UK Companies Act 2006. These are summarised below:

- The likely consequences of any decision in the long term

- The interests of the company employees

- The need to foster the company’s business relationships with suppliers, customers and others

- The impact of the company’s operations on the community and environment

- The desire of the company to maintain a reputation for high standards of business conduct

- The need to act fairly between all members of the company

ENGAGING WITH STAKEHOLDERS

Employees

The Group invests in the future of its employees and actively encourages career progression to maximise talent. To support this culture, we offer a diverse range of learning and development opportunities alongside recruitment of talent from the local area.

We recognise the importance of communication with our employees and we actively seek opportunities to engage with our staff. Staff have regular meetings with their direct manager to feedback, agree objectives and seek appropriate support if needed.

Customers

Some of the business’ ongoing objectives are to achieve reputational growth and retain existing business, listen to client feedback and implement solutions. We pride ourselves on our integrity and the professional manner in which we conduct business.

Environment

The company’s approach is to create positive change and believe in being proactive on environmental issues to reduce our impact on the planet. We source materials from sustainable partners and innovate our processes to minimise our environmental impact, ensuring sustainability is maximised.

Risk Management

The business regularly reviews the risk the business is exposed to in terms of compliance, economic, health & safety and business continuity risks and actively looks to mitigate these potential risks.

ON BEHALF OF THE BOARD:

J Myatt - Director

8 October 2025

The director presents his report with the financial statements of the company and the group for the period 1 November 2023 to 31 March 2025.

DIVIDENDS

No dividends will be distributed for the period ended 31 March 2025.

FUTURE DEVELOPMENTS

We are hopeful that 2025-26 will see an upturn in the general economy and the construction sector in particular. We are fully aware of forthcoming legislation to transfer responsibility for the tax and national insurance liability to the recruitment agencies which could be a significant opportunity to gain market share from non Saferec accredited payroll competitors.

DIRECTOR

J Myatt held office during the whole of the period from 1 November 2023 to the date of this report.

DISABLED EMPLOYEES

The Group has given full and fair consideration to applications for employment from disabled persons, having regard to their particular aptitudes and abilities. Wherever possible the Group continues the employment of, and arranges for the appropriate training of, employees who become disabled whilst employed by the Group. The Group’s policy of training, career development and promotion applies equally to all employees whether disabled or not.

GREENHOUSE GAS EMISSIONS, ENERGY CONSUMPTION AND ENERGY EFFICIENCY ACTION

The Group has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as its energy consumption in the United Kingdom for the year is 40,000kWh or lower.

DISCLOSURE IN THE STRATEGIC REPORT

As permitted by S414c(11) of the Companies Act 2006, the directors have elected to disclose information,

required to be in the directors' report by Schedule 7 of the 'Large and Medium-sized Companies and Groups

(Accounts and Reports) Regulations 2008', including the statement of engagement with employees and the

statement on engagement with other stakeholders, in the strategic report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Paul Howley & Co Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J Myatt - Director

8 October 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has 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.

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:

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to 2006 Companies Act, relevant tax legislation, environmental and consumer rights regulation and anti-bribery and corruption legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls), and determined the principal risks. Audit procedures performed by the engagement team included:

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

- Enquiries of the directors and management to identify any instances of non-compliance including consideration of known or suspected instances of fraud;

- Evaluation of management's internal controls designed to prevent and detect irregularities;

- Review of meeting minutes, and where applicable, correspondence with HMRC and other relevant regulatory authorities;

- Performed analytical procedures to identify any unusual or unexpected relationships;

- Investigated the rationale behind significant or unusual transactions;

- Reviewing legal and professional costs to identify any indicators of litigation;

- Reviewing the general ledger entries during the year to identify unusual transactions;

- Detailed testing of journal entries and assumptions made.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected it the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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.

Paul Berry (Senior Statutory Auditor)

for and on behalf of Paul Howley & Co Ltd

Chartered Certified Accountants

Statutory Auditors

42 Pitt Street

Barnsley

South Yorkshire

S70 1BB

8 October 2025

TURNOVER

3

208,677,347

174,951,259

Cost of sales

206,529,125

173,343,200

GROSS PROFIT

2,148,222

1,608,059

Administrative expenses

2,200,155

1,490,705

(51,933

)

117,354

Other operating income

4,998

59,292

OPERATING (LOSS)/PROFIT

5

(46,935

)

176,646

Interest receivable and similar income

7

134,179

1,833

87,244

178,479

Interest payable and similar expenses

8

-

42,512

PROFIT BEFORE TAXATION

87,244

135,967

Tax on profit

9

40,727

46,176

PROFIT FOR THE FINANCIAL PERIOD

46,517

89,791

Profit attributable to:

Owners of the parent

46,517

89,791

PROFIT FOR THE PERIOD

46,517

89,791

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

46,517

89,791

Total comprehensive income attributable to:

Owners of the parent

46,517

89,791

FIXED ASSETS

Intangible assets

12

54,002

-

Tangible assets

13

47,558

7,207

Investments

14

-

-

101,560

7,207

CURRENT ASSETS

Debtors

15

1,345,991

3,727,300

Cash at bank and in hand

5,515,070

4,383,678

6,861,061

8,110,978

CREDITORS

Amounts falling due within one year

16

6,861,661

8,073,862

NET CURRENT (LIABILITIES)/ASSETS

(600

)

37,116

TOTAL ASSETS LESS CURRENT LIABILITIES

100,960

44,323

PROVISIONS FOR LIABILITIES

18

11,481

1,371

NET ASSETS

89,479

42,952

CAPITAL AND RESERVES

Called up share capital

19

7,510

7,500

Capital redemption reserve

20

2,500

2,500

Retained earnings

20

79,469

32,952

SHAREHOLDERS' FUNDS

89,479

42,952

The financial statements were approved by the director and authorised for issue on 8 October 2025 and were signed by:

J Myatt - Director

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

-

-

Investments

14

2,111

2,101

2,111

2,101

CURRENT ASSETS

Debtors

15

258,564

158,013

Cash at bank

2,678

103,351

261,242

261,364

CREDITORS

Amounts falling due within one year

16

229,455

229,455

NET CURRENT ASSETS

31,787

31,909

TOTAL ASSETS LESS CURRENT LIABILITIES

33,898

34,010

CAPITAL AND RESERVES

Called up share capital

19

7,510

7,500

Capital redemption reserve

2,500

2,500

Retained earnings

23,888

24,010

SHAREHOLDERS' FUNDS

33,898

34,010

Company's (loss)/profit for the financial year

(122

)

179,655

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the director and authorised for issue on 8 October 2025 and were signed by:

J Myatt - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 November 2022

7,500

123,161

2,500

133,161

Changes in equity

Dividends

-

(180,000

)

-

(180,000

)

Total comprehensive income

-

89,791

-

89,791

Balance at 31 October 2023

7,500

32,952

2,500

42,952

Changes in equity

Issue of share capital

10

-

-

10

Total comprehensive income

-

46,517

-

46,517

Balance at 31 March 2025

7,510

79,469

2,500

89,479

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 November 2022

7,500

24,355

2,500

34,355

Changes in equity

Dividends

-

(180,000

)

-

(180,000

)

Total comprehensive income

-

179,655

-

179,655

Balance at 31 October 2023

7,500

24,010

2,500

34,010

Changes in equity

Issue of share capital

10

-

-

10

Total comprehensive income

-

(122

)

-

(122

)

Balance at 31 March 2025

7,510

23,888

2,500

33,898

Cash flows from operating activities

Cash generated from operations

1

1,163,243

(138,649

)

Interest paid

-

(42,512

)

Tax paid

(44,061

)

(605

)

Net cash from operating activities

1,119,182

(181,766

)

Cash flows from investing activities

Purchase of intangible fixed assets

(62,308

)

-

Purchase of tangible fixed assets

(48,455

)

(2,145

)

Interest received

124,156

1,833

Net cash from investing activities

13,393

(312

)

Cash flows from financing activities

Amount withdrawn by directors

(1,193

)

(47,995

)

Share issue

10

-

Equity dividends paid

-

(180,000

)

Net cash from financing activities

(1,183

)

(227,995

)

Increase/(decrease) in cash and cash equivalents

1,131,392

(410,073

)

Cash and cash equivalents at beginning of period

2

4,383,678

4,793,751

Cash and cash equivalents at end of period

2

5,515,070

4,383,678

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

Period

1.11.23

to

Year ended

31.3.25

31.10.23

£

£

Profit before taxation

87,244

135,967

Depreciation charges

16,411

4,867

Finance costs

-

42,512

Finance income

(134,179

)

(1,833

)

(30,524

)

181,513

Decrease in trade and other debtors

2,392,524

2,396,140

Decrease in trade and other creditors

(1,198,757

)

(2,716,302

)

Cash generated from operations

1,163,243

(138,649

)

2.	CASH AND CASH EQUIVALENTS

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

Period ended 31 March 2025

31.3.25

1.11.23

£

£

Cash and cash equivalents

5,515,070

4,383,678

Year ended 31 October 2023

31.10.23

1.11.22

£

£

Cash and cash equivalents

4,383,678

4,793,751

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.11.23

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

4,383,678

1,131,392

5,515,070

4,383,678

1,131,392

5,515,070

Total

4,383,678

1,131,392

5,515,070

1.	STATUTORY INFORMATION

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

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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Income and Retained Earnings in these financial statements.

Going concern

The financial statements have been prepared on the going concern basis which assumes that the Group will continue in operational existence for the foreseeable future.

Management have produced detailed forecasts and projections based on current and forecast growth rates. These forecasts have been subject to sensitivity analysis to ensure all likely scenarios have been considered. Management have worked tirelessly to clear the historic trade debtor balances across the Group and have now implemented additional controls whilst also reviewing credit terms with customers to ensure that current trade debtor balances remain recoverable.

It is of the view of management that the future pipeline of work is strong, and with the introduction of SafeRec, of which the Group is a founding member, they are able to provide additional clarity and confidence to both agencies and workers, which is thought to give the Group a competitive advantage.

As a result, the director is confident that the Group will be able to pay its debts as they fall due.

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Income and Retained Earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.

In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 03 November 2014.

Significant judgements and estimates

No significant judgements have had to be made by management in preparing these financial statements.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimate

will, by definition, seldom equal the related actual results. The estimate and assumption that has the

greatest level of uncertainty is addressed below:

(i) Impairment of debtors

The Group makes an estimate of the recoverable value of trade and other debtors. When assessing

impairment of trade and other debtors, management considers factors including the current credit rating of

the debtor, the ageing profile of the debtors and historical experience.

Turnover

Turnover represents the fair value of consideration received or receivable from the sale of consultancy services. Fair value reflects the amount agreed in the form of contractual charges for each type of service. Fee income is stated net of amounts collected on behalf of third parties such as sales taxes, goods and services taxes and value added taxes.

Turnover is recognised to the extent that the Group obtains the right to consideration in exchange for its performance. Right to consideration is based on the Group confirming completion of its contractual obligations in relation to the services provided.

The contractor will complete an assignment for an agency who will then pay the Group the agreed contract rate (after deducting their fee). The Group will then recognise the gross revenue in respect of this assignment and the cost of the contractor. Once the contractor then submits their timesheet, the Group will transfer the remuneration due to the contractor to them after deducting the fee (margin).

This means that there are two elements of revenue recognised; the gross revenue received from the agency which is recognised when the money is received from the agency (which is net nil as it is equal to the cost of the contractors), and the margin recognised when processing timesheets.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2024, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

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

Tangible fixed assets

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

Fixtures and fittings

-

25% on cost

Computer equipment

-

33% on cost

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. 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. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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 period 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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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