Company registration number 05742297 (England and Wales)
MTREC LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2025
MTREC LIMITED
COMPANY INFORMATION
Director
D Musgrave
Company number
05742297
Registered office
MTrec House
8 Market Lane
Newcastle upon Tyne
NE1 6QQ
Auditor
Ryecroft Glenton
32 Portland Terrace
Newcastle upon Tyne
NE2 1QP
Solicitors
Swinburne Maddison LLP
Venture House
Aykley Heads Business Centre
Durham
DH1 5TS
MTREC LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 8
Income statement
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
MTREC LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 MARCH 2025
- 1 -
Principal activities

The principal activity of the company continued to be that of a recruitment agency.

The Director presents the Strategic Report for the period from 1 st April 2024 to 30 th March 2025.

Review of the business

MTrec Recruitment has delivered on all aspects of its business plan for FY25 and has successfully delivered on all finance obligations to Open Up Group. The business, despite a challenging year of trading, particularly due to the tight labour market, has continued to perform well in all of its key sectors and markets.

The notable highlights of this year include the following:

- The successful achievement of the business plan for FY25.

- Ensuring all financial obligations to OPG were met for the year.

- The continued supply, beyond the initial one-year term of a highly prestigious automotive recruitment contract.

- The award of a sole supplier contract with a new multi-national manufacturing client with an expanding North-East based strategic location.

- The retention of key and long-term MTrec clients.

- Recruiting a number of permanent recruitment consultants for all key divisions in the business.

- The continued market-place development for the permanent recruitment divisions, as well as the acquisition of clients on a national basis.

- The continued and successful retention of long-serving key staff members.

The Industrial division within MTrec was awarded a very long-term recruitment contract with a brand new multi-national manufacturing client, which has significant growth and investment plans for its well-resourced North-East facility.

The MTrec sales team continued to support all areas of the business, with a key highlight being the retention and development of experienced sales consultants and their abilities to acquire new clients locally and on a national basis.

The success of both the Permanent Technical and Commercial Division continued into 2024-2025, with further new graduate recruitment consultants added to the strong and established team structure, which provided further symbiotic benefits with the sales team and their new client opportunities.

Key strengths within the business include the following:

- The results for the company show a profit on ordinary activities before taxation of £757,753 (2023-2024: £998,601) and turnover of £26,319,612 (2023-2024: £27,239,108).

- The company has net assets of £2,735,285 (2023-2024: £2,555,325).

- An Experienced Senior Team - The senior team remains unchanged, which is highly experienced and completely dedicated to the success of MTrec.

- Financial/Budgetary Planning - This process is firmly embedded in the business and continues to be a key strength.

- Staff Loyalty and Flexibility - The MTrec staff and service records remain a key strength, with minimal leavers and a very strong retention record.

- A Strong and Loyal Customer Base - The business continued to retain the majority of its customers throughout 2024-2025, through strong account management practices.

- Credit Control Management - The business continues to operate a strong and robust credit control and checking system. There were no bad debt cases this year.

- Investment and Integration of New Technology - MTrec continues to invest in all areas that provides its clients, business contacts, candidate, and internal staff with the best-in-class recruitment technology solutions.

- Business and Industry Accreditations - MTrec have clear strengths and systems in place, having the Silver Accreditation with Investors in People.

- Pricing Policy - The consistent review and flexibility of client pricing does provide a highly responsive and agile approach to any changes in the market.

MTREC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2025
- 2 -
Principal Risks and Uncertainties

To summarise, MTrec has performed well in this business period, and achieved its financial goals and objectives. The business also retained all of its key staff, with very minimal attrition, and recruited new staff members in most operational departments.

The business has retained most of its long-term and high volume industrial clients, with industry-leading account management services firmly embedded in all levels of the organisation

Principal risks and uncertainties:

- The labour market remained challenging through FY25, with difficulty recruting staff in most sectors, particularly in temporary manufacturing. There have been small improvements in the abailiability of candidates looking for work, through once again, the tight labour market persists.

- There is a continued trend of clients taking temporary workers on a temporary to permanent basis quicker and more consistently than in previous years, due to the labour market and the retaining of key talent.

- The expected increase in employment costs and slowing wage growth due to legislative changes has led to dampened hiring within most engineering and technical sectors.

Future Development

- The business will continue to develop all of its services to retain the long-term client base.

- There will be continued development and investment in new recruitment technology solutions.

- MTrec will continue to invest in all internal staff, to provide market leading rewards, training and career progression.

- The business will continue to invest in all of its sales and marketing resources, to ensure all new business opportunities are fully maximised.

Key Performance Indicators

Giving the straightforward nature of the business and the information shown in the following financial statements, the director is of the opinion that further analysis using the KPI's is not necessary for an understanding of the development performance or position of the business.

On behalf of the board

D Musgrave
Director
23 October 2025
MTREC LIMITED
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 30 MARCH 2025
- 3 -

The director presents his annual report and financial statments for the period from 1st April to 30th March 2025.

Results and dividends

The results for the period are set out on page 9.

The director does not recommend the payment of a final dividend in respect of the period ended 30th March 2025.

Director

The director who held office during the period was as follows:

D Musgrave

Financial risk management

Objectives and policies

The company has an established, structured approach to risk management. The company's activities expose it to a variety of financial risks, including the effects of credit, liquidity and interest rate risks. The company has adopted risk management policies that seek to mitigate these risks in a cost-effective manner. Financial assets that expose the company to financial risk consist primarily of trade debtors and cash. Financial liabilities that expose the company to financial risk consist of principally of trade creditors.

Credit risk, liquidity risk and interest rate risk

Credit risk is the risk of loss in the value of financial assets due to the counterparties failing to meet all or part of their obligations. The company performs ongoing credit evaluation of its customer's financial condition.

Liquidity risk is the risk that the company does not have sufficient liquid assets to meet its obligations as they fall due. Liquidity is maintained at a prudent level and the company ensures there is an adequate liquidity buffer to cover contingencies.

Interest rate risk with regards to unfavourable movements in interest rates is not perceived as being material to the accounts due to the borrowing agreements in place.

Going concern

The company meets its day to day working capital requirements through cash generated from operations.

Having considered the current cash forecasts of the company, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for a period of a least twelve months from the date of signing these financial statements. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Reappointment of auditor

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Ryecroft Glenton as auditors of the company is to be proposed at the forthcoming Annual General Meeting

MTREC LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2025
- 4 -
Statement of director's responsibilities

The director is responsible for preparing the annual report 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 of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

- Select suitable accounting policies and then apply then consistently;

- Make judgements and accounting estimated that are reasonable and prudent;

- State whether applicable UK accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

- 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the sate of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
D Musgrave
Director
23 October 2025
MTREC LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MTREC LIMITED
- 5 -
Opinion

We have audited the financial statements of MTrec Limited (the 'company') for the period ended 30 March 2025 which comprise the income statement, the statement of financial position, the statement of changes in equity, the 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).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 30 March 2025 and of its 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the F inancial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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 S trategic R eport and the Director's R eport for the financial period are prepared is consistent with the financial statements; and

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

MTREC LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MTREC LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the Strategic Report or the Directors' R eport.

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

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

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

- certain disclosures of 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 director's r esponsibilities s tatement, 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 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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.

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.

MTREC LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MTREC LIMITED
- 7 -

The extent to which the audit was considered capable of detecting irregularities, including fraud

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:

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

- we identified the laws and regulations applicable to the Company through discussions with directors and other management, and from our commercial knowledge and experience of the recruitment sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, taxation legislation and employment legislation;

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

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

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

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

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

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

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

- tested journal entries to identify unusual transactions: and

- assess whether judgements and assumptions made in determining the accounting estimates set out in the notes to the financial statements were indicative of potential bias.

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

- agreeing financial statement disclosures to underlying supporting documentation; and

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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.

Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial

Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

MTREC LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MTREC LIMITED
- 8 -

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Michael Parry (Senior Statutory Auditor)
23 October 2025
For and on behalf of
Ryecroft Glenton
Chartered Accountants
Statutory Auditor
32 Portland Terrace
Newcastle upon Tyne
NE2 1QP
MTREC LIMITED
INCOME STATEMENT
FOR THE PERIOD ENDED 30 MARCH 2025
- 9 -
30 March
31 March
2025
2024
Notes
£
£
Turnover
3
26,319,612
27,239,108
Cost of sales
(21,676,141)
(22,478,084)
Gross profit
4,643,471
4,761,024
Administrative expenses
(3,829,563)
(3,695,715)
Operating profit
4
813,908
1,065,309
Interest receivable and similar income
8
29,569
23,336
Interest payable and similar expenses
9
(85,724)
(90,044)
Profit before taxation
757,753
998,601
Tax on profit
10
(227,793)
(281,882)
Profit for the financial period
529,960
716,719

The income statement has been prepared on the basis that all operations are continuing operations.

The company has no recognised gains or losses for the period other than the results above.

MTREC LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 MARCH 2025
30 March 2025
- 10 -
30 March 2025
31 March 2024
Notes
£
£
£
£
Fixed assets
Tangible assets
12
637,831
645,980
Current assets
Debtors
13
4,610,599
4,679,860
Cash at bank and in hand
1,414,936
1,880,565
6,025,535
6,560,425
Creditors: amounts falling due within one year
14
(2,498,271)
(4,392,885)
Net current assets
3,527,264
2,167,540
Total assets less current liabilities
4,165,095
2,813,520
Creditors: amounts falling due after more than one year
15
(1,428,083)
(258,195)
Provisions for liabilities
Deferred tax liability
17
1,727
-
0
(1,727)
-
Net assets
2,735,285
2,555,325
Capital and reserves
Called up share capital
19
133
168
Profit and loss reserves
2,735,152
2,555,157
Total equity
2,735,285
2,555,325
The financial statements were approved and signed by the director and authorised for issue on 23 October 2025
D Musgrave
Director
Company Registration No. 05742297
MTREC LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 MARCH 2025
- 11 -
Share capital
Other reserves
Profit and loss reserves
Total
£
£
£
£
Balance at 27 March 2023
-
0
(2,184,587)
2,475,669
291,082
Period ended 31 March 2024:
Profit and total comprehensive income for the period
-
-
716,719
716,719
Dividends
11
-
-
(130,793)
(130,793)
Other movements
168
2,184,587
(506,438)
1,678,317
Balance at 31 March 2024
168
-
2,555,157
2,555,325
Period ended 30 March 2025:
Profit and total comprehensive income for the period
-
-
529,960
529,960
Redemption of shares
19
(35)
-
(349,965)
(350,000)
Balance at 30 March 2025
133
-
2,735,152
2,735,285
The movement in the share capital balance relates to the redemption of 350,000 preference shares of £0.0001 each at a total cost of £350,000 on 29th April 2024.
MTREC LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 MARCH 2025
- 12 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
766,886
509,200
Income taxes paid
(237,223)
(240,496)
Net cash inflow from operating activities
529,663
268,704
Investing activities
Purchase of tangible fixed assets
(133,880)
(9,924)
Proceeds from disposal of tangible fixed assets
78,380
-
0
Interest received
29,569
5,249
Dividends received
-
0
18,087
Net cash (used in)/generated from investing activities
(25,931)
13,412
Financing activities
Issue of preference shares
-
0
(51)
Repayment of preference shares
(350,000)
(506,435)
Repayment of borrowings
(533,637)
(477,800)
Interest paid
(85,724)
(90,044)
Dividends paid
-
0
(130,793)
Net cash used in financing activities
(969,361)
(1,205,123)
Net decrease in cash and cash equivalents
(465,629)
(923,007)
Cash and cash equivalents at beginning of period
1,880,565
2,803,572
Cash and cash equivalents at end of period
1,414,936
1,880,565
MTREC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2025
- 13 -
1
Accounting policies
Company information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is MTrec House, 8 Market Lane, Newcastle upon Tyne, NE1 6QQ.

1.1
Accounting convention

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 principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.

1.2
Going concern

The financial statements have been prepared on a going concern basis.true
The company meets its day to day working capital requirements through cash generated from operations.
The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance.
Based on the factors set out above the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.

1.3
Turnover

Turnover comprises the fair value of the consideration received or receivable for services rendered in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.

MTREC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2025
1
Accounting policies
(Continued)
- 14 -
1.4
Tangible fixed assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings
2% straight line
Fixtures and fittings
33% straight line
Motor vehicles
20% reducing balance

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 credited or charged to profit or loss.

1.5
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.6
Financial instruments

The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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

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. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

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.

MTREC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2025
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans 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 paymen ts 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. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Other financial liabilities

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.7
Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

1.8
Taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Current tax

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

Deferred tax

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

MTREC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2025
1
Accounting policies
(Continued)
- 16 -
1.9
Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

1.10

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

2
Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
There are considered to be no significant judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies which effect the amounts recognised in the financial statements.
Assessing indicators of impairment - In assessing whether there have been indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

Useful economic lives of tangible assets - The annual depreciation charge is sensitive to changes in the estimated useful lives of the assets. The useful economic lives are re-assessed annually. They are amended when necessary to reflect current estimates, future investments and economic utilisation.

Impairment of debtors - The company makes an estimate of the recoverable value of the 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 debtors and historical experience.

MTREC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2025
- 17 -
3
Turnover and other revenue
2025
2024
£
£
Interest income
29,569
5,249
Dividends received
-
18,087
Rendering of services
26,319,612
27,239,108
4
Operating profit
2025
2024
Operating profit for the period is stated after charging:
£
£
Depreciation of owned tangible fixed assets
25,538
19,522
Loss on disposal of tangible fixed assets
38,111
-
Operating lease charges
37,642
34,862
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
34,225
31,407
6
Employees

The average monthly number of persons (including directors) employed by the company during the period was:

2025
2024
Number
Number
Administrative staff
29
32
Direct staff
84
96
Management
5
6
Total
118
134

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
4,624,638
4,605,478
Social security costs
491,955
517,619
Pension costs
66,348
70,357
5,182,941
5,193,454
MTREC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2025
- 18 -
7
Director's remuneration
2025
2024
£
£
Remuneration for qualifying services
574,341
537,579
Company pension contributions to defined contribution schemes
10,000
10,000
584,341
547,579

During the period the number of directors accruing benefits under money purchase pension scheme was 1 (2024: 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
574,341
537,579
Company pension contributions to defined contribution schemes
10,000
10,000
8
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest received from HMRC
-
0
5,249
Other interest income
29,569
-
0
Total interest revenue
29,569
5,249
Other income from investments
Dividends received
-
0
18,087
Total income
29,569
23,336
9
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
72,162
89,903
Other finance costs:
Other interest
13,562
141
85,724
90,044
MTREC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2025
- 19 -
10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
219,247
283,939
Adjustments in respect of prior periods
(4,522)
-
0
Total current tax
214,725
283,939
Deferred tax
Origination and reversal of timing differences
3,059
(2,057)
Adjustment in respect of prior periods
10,009
-
0
Total deferred tax
13,068
(2,057)
Total tax charge
227,793
281,882

The tax on profit before tax for the period is higher than the standard rate of corporation tax in the UK of 25%.

2025
2024
£
£
Profit before taxation
757,753
998,601
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
189,438
249,650
Tax effect of expenses that are not deductible in determining taxable profit
30,250
27,846
Gains not taxable
-
0
4,496
Adjustments in respect of prior years
5,487
-
0
Permanent capital allowances in excess of depreciation
-
0
1,718
Other tax effects for reconciliation between accounting profit and tax expenses
-
0
229
Short term timing differences leading do a decrease in taxation
-
0
(2,057)
Fixed asset differences
2,618
-
0
Taxation charge for the period
227,793
281,882
11
Dividends
2025
2024
£
£
Final paid
-
0
130,793
MTREC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2025
- 20 -
12
Tangible fixed assets
Land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2024
996,588
866,926
13,000
1,876,514
Additions
-
0
7,531
126,349
133,880
Disposals
-
0
-
0
(126,349)
(126,349)
At 30 March 2025
996,588
874,457
13,000
1,884,045
Depreciation and impairment
At 1 April 2024
361,625
855,909
13,000
1,230,534
Depreciation charged in the period
10,471
5,209
9,858
25,538
Eliminated in respect of disposals
-
0
-
0
(9,858)
(9,858)
At 30 March 2025
372,096
861,118
13,000
1,246,214
Carrying amount
At 30 March 2025
624,492
13,339
-
0
637,831
At 31 March 2024
634,963
11,017
-
0
645,980
13
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
4,090,565
4,111,489
Corporation tax recoverable
104,118
105,496
Other debtors
347,458
397,725
Prepayments and accrued income
68,458
53,809
4,610,599
4,668,519
Deferred tax asset (note 17)
-
0
11,341
4,610,599
4,679,860
14
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Other borrowings
16
191,413
1,894,938
Trade creditors
107,354
413,679
Corporation tax
110,063
133,939
Other taxation and social security
659,210
656,303
Other creditors
59,955
54,613
Accruals and deferred income
1,370,276
1,239,413
2,498,271
4,392,885
MTREC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2025
- 21 -
15
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Other borrowings
16
1,428,083
258,195
16
Loans and overdrafts
2025
2024
£
£
Other loans
1,619,496
2,153,133
Payable within one year
191,413
1,894,938
Payable after one year
1,428,083
258,195

Other borrowings are secured in favour of Open Up Group Inc (formerly Be-Next Group) by way of a fixed and floating charge over the assets of the company.

Other borrowings represent two loan facilities with Open Group Inc, the Tranche A loan and the Tranche B loan.

At the year end the balance of the Tranche A loan including accrued interest was £259,371 which is repayable by quarterly instalments with the final instalment due in July 2026. Interest is charged on this loan at a rate of 3% per annum.

At the year end the balance of Tranche B loan including accrued interest was £1,360,125. Interest is paid on a quarterly basis and the remaining capital balance of £1,350,000 is due for repayment on 30 July 2026. Interest is charged on this loan at a rate of 3% to 30 July 2023 and at a rate of 4.5% from 31 July 2023.

17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
Assets
Assets
2025
2024
2025
2024
Balances:
£
£
£
£
Fixed asset timing differences
3,335
-
-
9,837
Short term timing differences - trading
(1,608)
-
-
1,504
1,727
-
-
11,341
MTREC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2025
17
Deferred taxation
(Continued)
- 22 -
2025
Movements in the period:
£
Asset at 1 April 2024
(11,341)
Charge to profit or loss
13,068
Liability at 30 March 2025
1,727
18
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
66,348
70,357

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions totalling £14,698 (2024: £13,695) were payable to the scheme at the end of the period and are included in creditors.

19
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 0.000001p each
10,000
10,000
(35)
-
0
Ordinary B shares of 0.000001p each
3,334
3,334
-
0
-
0
2025
2024
2025
2024
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of 0.01p each
1,328,321
1,678,321
133
168
Preference shares classified as equity
168
168
Total equity share capital
133
168

In the prior period the terms of the preference shares of £0.0001 were modified. The preference shares are now only redeemable at the discretion of the company and the fixed preference dividend was also removed. As a result the preference shares are now classified as equity rather than a liability in the financial statements.

The preference shares of £0.0001 each remain redeemable at their original subscription price of £1 each.

The movement in the share capital balance in the year relates to the redemption of 350,000 preference shares of £0.001 each at a total cost of £350,000 on 29th April 2024.

MTREC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2025
- 23 -
20
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2025
2024
£
£
Within one year
9,253
11,006
Between two and five years
15,435
14,340
24,688
25,346
21
Capital commitments

Amounts contracted for but not provided in the financial statements:

2025
2024
£
£
Acquisition of tangible fixed assets
113,499
-
22
Related party transactions

The company has taken advantage of the exemption available under paragraph 33.1A of FRS 102 and does not disclose related party transactions with members that are wholly owned.

23
Directors' transactions

The loan to the director is interest free and repayable on demand.

Description
Opening balance
Amounts repaid
Closing balance
£
£
£
D. Musgrave
397,105
(49,997)
347,108
397,105
(49,997)
347,108
24
Ultimate controlling party

The ultimate controlling party is D Musgrave by virtue of being the majority shareholder.

MTREC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2025
- 24 -
25
Cash generated from operations
2025
2024
£
£
Profit for the period after tax
529,960
716,719
Adjustments for:
Taxation charged
227,793
281,882
Finance costs
85,724
90,044
Investment income
(29,569)
(23,336)
Loss on disposal of tangible fixed assets
38,111
-
Depreciation and impairment of tangible fixed assets
25,538
19,521
Decrease in provisions
-
0
(881,168)
Movements in working capital:
Decrease in debtors
56,542
410,127
Decrease in creditors
(167,213)
(104,589)
Cash generated from operations
766,886
509,200
26
Analysis of changes in net debt
2025
£
Opening net funds/(debt)
Cash at bank and in hand
1,880,565
Borrowings excluding overdrafts
(2,153,133)
(272,568)
Changes in net debt arising from:
Cash flows of the entity
68,008
Closing net funds/(debt) as analysed below
(204,560)
Closing net funds/(debt)
Cash at bank and in hand
1,414,936
Borrowings excluding overdrafts
(1,619,496)
(204,560)
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