The directors present the strategic report for the year ended 31 December 2024.
Orbis (‘the group’) is an award-winning recruitment business and the primary activity of the group and company is the provision of specialist recruitment solutions. Founded in 2015, the group works closely with clients that are passionate about tech, diversity, community and change.
Our vision is to give everyone access to life changing opportunities. Our mission is to change lives by providing people with better futures. Together, we’ve created a community to connect the world’s leading brands with exceptional talent. We exist to enable communities to achieve their purpose through long term partnerships, providing talent solutions beyond recruitment.
The group’s results for the year ended 31 December 2024 are derived from Orbis Consultants Limited and its subsidiaries operating in Netherlands and the USA. The group has operations in London, Amsterdam, New York, Austin and Miami and California.
Business and Financial Review
2024 was a pivotal and transformative year for the Group, marked by significant restructuring to adapt to the global economic downturn and wider market uncertainty. These efforts have strengthened our foundations and positioned us for long-term growth and right sizing post challenging market. Key performance indicators:
Turnover for the year was £17.50m (2023: £21.15m)
Gross profit for the year was £5.02m (2023: £7.40m)
Administrative expenses £5.93m (2023: £8.67m)
Operating profit of £0.04m (2023: £1.42m loss).
The reduction in turnover was primarily driven by a decrease in headcount within underperforming teams across the UK and US markets. The restructuring measures implemented also delivered a substantial reduction in administrative expenses, including the removal of surplus office space and the elimination of technical debt, resulting in a significant improvement in the Group’s financial performance. At the year-end, the Group employed 51 staff (2023: 78).
The Board remains confident that the markets selected, and strategies implemented continue to strengthen the Group’s position. Encouragingly, the Group’s sales forecasts and pipeline of opportunities have improved and remain resilient.
Looking forward, the Group will maintain its focus on the US, European, and Middle Eastern markets. The Directors believe that, as a result of the actions taken during the year, the Group is well placed to achieve continued progress and is confident in its ability to deliver a broad range of solutions to clients across its geographic markets.
Credit and Liquidity risk:
The group manages its liquidity risk through an invoice financing facility held by the parent company and an efficient finance system. The group is currently operating in compliance with the terms and covenants of its facilities.
The group aims to mitigate credit risk by monitoring the creditworthiness of its clients through regular credit searches and a robust credit control policy. The directors do not consider that there is no material concentration of risk on any single client.
Economic risk:
The recruitment industry is dependent level of activity in specific sectors and cycles of the wider economy in any given market. The group aims to reduce this risk by expanding its service offerings and presence in a number of geographical markets, whilst retaining a focus on its key function in the technology recruitment market.
Competitive and Commercial risk:
The market in which the group operates is highly competitive and many new competitors are entering the sector.
The group maintains its competitive advantage by providing a high level of customer service and maintains good relationships with existing and potential clients, always seeking to provide appropriate and often innovative solutions to their requirements. Where possible, the group assists its clients with their needs in multiple geographical locations using its numerous local offices.
Whilst the group benefits from close commercial relationships with key clients, the directors do not consider that the group is dependent on any single client.
Foreign exchange risk:
The group is exposed to transaction foreign exchange risk. The group hedges this exposure via holding both currency denominations and borrowings in its bank accounts in GBP, Euro and USD.
Employee risk:
The attraction, training and retention of staff is paramount to maintaining and growing financial performance. The group has a stringent recruitment process and invests heavily in training its employees. The group ensures that employees benefit from competitive remuneration schemes, opportunities for progression, and a professional and flexible working environment. The group introduced an EMI share option scheme subsequent to the reporting date. Key personnel are retained by offering a share of the business under the EMI Option scheme.
The directors use a number of financial and non-financial key performance indicators to monitor the company’s performance.
| 2024 | 2023 |
|
|
|
Placements | 323 | 434 |
Sales | £17.5m | £21.2m |
Sales growth | (17.2%) | (22.6%) |
Turnover by geographical market |
|
|
United Kingdom | £11,527,486 | £13,347,817 |
Europe | £2,453,758 | £2,273,060 |
Rest of the World | £3,522,771 | £5,530,982 |
|
|
|
Sales headcount | 43 | 75 |
Debtor days | 30 | 26 |
The Directors remain confident in the Group’s outlook, with continued growth expected in selected markets. Strategic plans are in place to broaden the range of solutions offered to clients across Europe, the US, and the Middle East.
These initiatives are designed not only to diversify and mitigate risk but also to unlock new opportunities for sustainable future growth.
On behalf of the board
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 10.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Saffery LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, and have expressed their willingness to continue in office.
The directors have prepared the financial statements on a going concern basis as they are confident of the availability of sufficient resources to enable the Group to meet its liabilities as they fall due for at least 12 months from the approval of the financial statements. As recorded in the accounting policies the directors have considered working capital capacity and the directors support.
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 We Are Orbis Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
the information given in the strategic report and the 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.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the group and parent company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent company by discussions with directors and by updating our understanding of the sector in which the group and parent company operates.
Laws and regulations of direct significance in the context of the group and parent company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of group and parent company financial statement disclosures. We reviewed the parent company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
As group auditors, our assessment of matters relating to non-compliance with laws or regulations and fraud differed at group and component level according to their particular circumstances. Our communications included a request to identify instances of non-compliance with laws and regulations and fraud that could give rise to a material misstatement of the group financial statements in addition to our risk assessment.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the parent 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 parent 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 parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £241,944 (2023 - £523,439 loss).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
We Are Orbis Group Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is Wework, 6th Floor, 1 St. Katherine's Way, London, England, E1W 1UN.
The group consists of We Are Orbis Group Limited 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, including the provisions of the Large and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company We Are Orbis Group Limited 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.
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.
The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.
The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably and is adjusted for changes in contingent consideration after the acquisition date.
The Group has incurred a loss after taxation of £110,462 in the year (2023: loss of £1,342,827) and has total net liabilities of £1,026,767 (2023: total net liabilities of £922,104). The directors have undertaken an exercise to review the forecast working capital requirements of the Group for a period of at least 12 months from the date of approval of the financial statements, which indicates a working capital surplus and cash headroom over the period considered. The forecast is based on certain assumptions, the most significant of which are an increase in both contractor and permanent placement revenue in both the UK and US group operations, stable contractor margins and a cost management programme across the group. In the assessment of going concern the directors have considered sensitivities in the revenue forecasts as well as timing of income and expenditure.
In addition, the directors have confirmed that the going concern assessment is based on continued utilisation of the invoice discounting facility, as well the personal financial support of the directors if and when required.
Accordingly the directors have prepared the financial statements on a going concern basis as they are reasonably confident of the availability of sufficient resources to enable the Group to meet its liabilities as they fall due for at least 12 months from the approval of the financial statements.
Turnover represents the amount derived from the provision of services which fall within the company's principal activity, stated net of value added tax. Turnover from rendering of services is recognised when services are rendered, no matter when cash is received. Recruitment income is recognised when the candidate is placed, or over the term of a temporary placement, if such a treatment is considered more appropriate to the terms of the contract.
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 credited or charged to profit or loss.
In the separate accounts of the company, interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
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.
At each reporting period end date, the group reviews the carrying amounts of its tangible 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.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.
Basic financial assets, which include debtors, 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, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Financial liabilities are derecognised when, and only when, the group's contractual obligations are discharged, cancelled, or they expire.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the current tax expense and deferred tax expense. Current tax assets are recognised when tax paid exceeds the tax payable.
Current and deferred tax is charged or credited to profit or loss, except when it related to items charged or credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charged or credited to other comprehensive income, or equity.
Current tax assets and current tax liabilities and deferred tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on the net basis or to realise the asset and settle the liability simultaneously.
Current tax is based on taxable profit for the year. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting date.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates that have been enacted or substantively enacted by the reporting date.
Deferred tax liabilities are recognised in respect of all timing differences that exist at the reporting date. Timing differences are differences between taxable profits and total comprehensive income that arise from the indusion of income and expenses in tax assessments in different periods from their recognition in the financial statements. Deferred tax assets are recognised only to the extent that it is probable that they will be recovered by the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is recognised on income and expenses from subsidiaries, associates, branches and interests in jointly controlled entities, that will be assessed to or allow for tax in a future period except where the group is able to control the reversal of the timing difference and it is probable that the timing difference will not reverse in the foreseeable future.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination and the amounts that can be deducted or assessed for tax. The deferred tax recognised is adjusted against goodwill.
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.
For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 the functional currency (foreign currency) are initially recorded at the exchange rate prevailing on the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction, or, if the asset or liability is measured at fair value, the rate when that fair value was determined.
All translation differences are taken to profit or loss, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income.
In the application of the group’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 relevant. 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.
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.
The useful economic lives and residual values of tangible assets are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancements, future investments, economic utilisation and physical condition of the tangible assets. See note 11 for the carrying amount of the fixed assets and the accounting policies above for the useful lives of each class of asset. The annual depreciation charge for the fixed asset classes are sensitive to changes in the estimated useful economic lives and residual values of the assets. These are recognised within administrative expenses.
The company's policy on recognising an impairment of the trade receivables balances is based on a review of individual debtor balances, their ageing and managements assessment of realisation, including monitoring of the creditworthiness of individual clients. This review and assessment is conducted on a continuing bases and any material change in management's assessment of trade debtors impairment is reflected in the carrying value of the asset.
EMI share options have been granted to employees of the group companies. The company has used the Black-Scholes model to determine the fair value of the options on grant date. Consideration is also taken in relation to vesting conditions and non-market variables which impact the estimated charge.
In assessing the carrying value of intercompany balances the directors have assessed whether provisions need to be recorded to reduce gross balances to recoverable amounts, with reference to review of the ability of group companies to make future repayments from profitable trading activity.
Exceptional expenditure relates to costs incurred in the set up of a branch office of We Are Orbis Group Limited. During the prior year ended 31 December 2023, the directors concluded that this venture was not commercially viable, and all costs incurred were expensed.
In the year, management fees of £948,005 (2023: £165,000) were received in the year for services provided to related entities. In the prior year the management fees of £165,000 were recognised within revenue.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
On 23 April 2024 three subsidiaries of the company, OV Search Ltd, We Are Evolve Ltd and Orbis GLA Limited, were dissolved.
Details of the company's subsidiaries at 31 December 2024 are as follows:
Registered office addresses:
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
Finance lease payments represent rentals payable by the company or group for motor vehicles. Leases include purchase options at the end of the lease period. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The group's obligations under finance leases are secured by the lessor's charge over the leased assets (see note 11).
Included in obligations under finance leases are amounts secured by way of personal guarantees provided by directors. Amounts due within one year are amounts totalling £51,074 (2023: £51,074), amounts due in two to five years include £53,546 (2023: £72,355).
The invoice discounting facilities are secured by fixed charges over the assets of the company, including trade debtors. The invoice discounting facility has a cross guarantee with a fellow group company Orbis Consultants Limited, as well as related party company Coex Global Limited. The directors have a deed of indemnity in respect of obligations under the facility.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. Contributions totalling £nil (2023: £14,026) were payable to the fund at the year end and are included in creditors.
The company set up an Enterprise Management Incentive Share Option plan in January 2023 whereby it grants employees rights to its equity instruments.
Under the plan, share options are granted at the average price of the company's shares at the grant date. The employee is entitled to exercise the share options after a certain period of time (the "vesting period") and once certain conditions have been met or events occurred. If options remain unexercised after a period of 10 years from the date of grant, the options expire. Furthermore, options are forfeited if the employee ceases employment before they become entitled to exercise the share options.
Group and company
A share based payment charge in respect of equity settled transactions above has not been recognised as the amount is not deemed by management to be material to these financial statements.
The nominal value of shares repurchased and still held at the end of the reporting period.
Profit and loss reserves
Cumulative profit and loss net of distributions to owners.
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:
The total remuneration of the directors and employees of the group, who are considered to be the key management personnel, was £611,784 (2023: £386,458), including employer's national insurance of £72,440 (2023: £43,038).
Other related party remuneration
In the year, two parents of the directors performed administrative services for the company and received £16,664 (2023: £50,000) in remuneration. No amounts were outstanding at the year end.
The company has taken advantage of the exemption available in Section 33 of FRS 102 whereby it has not disclosed transactions with its wholly owned members of the group. Amounts outstanding at the year end are disclosed in the Debtors and Creditors notes.
During the year, the group entered into transactions with its related party, Coex Global Limited, comprising sales of services and recharges of costs. The total value of these transactions in 2024 amounted to £948,042 (2023: £704,845).
The following amounts were outstanding at the reporting end date:
Interest bearing loans have been granted by the company and group to the directors. These loans are included within other debtors and the movement on these balances are as follows.