AA Euro Recruitment UK Limited Company accounts

COMPANY REGISTRATION NUMBER: 06864039

AA EURO RECRUITMENT UK LIMITED

FINANCIAL STATEMENTS

31 December 2024

AA EURO RECRUITMENT UK LIMITED

FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2024

CONTENTS	PAGES

Officers and professional advisers	1

Strategic report	2 to 3

Directors' report	4 to 5

Independent auditor's report to the members	6 to 9

Statement of income and retained earnings	10

Statement of financial position	11

Statement of cash flows	12

Notes to the financial statements	13 to 19

AA EURO RECRUITMENT UK LIMITED

OFFICERS AND PROFESSIONAL ADVISERS

THE BOARD OF DIRECTORS	Mr P P McCarthy
	Mr L R Ryan

REGISTERED OFFICE	501 Boundary House
	Business Centre
	Boston Road
	London
	W7 2QE

AUDITOR	Meadows & Co Limited
	Chartered Accountants & Statutory Auditor
	Headlands House
	1 Kings Court
	Kettering Parkway
	Kettering
	NN15 6WJ

AA EURO RECRUITMENT UK LIMITED

STRATEGIC REPORT

YEAR ENDED 31 DECEMBER 2024

BUSINESS REVIEW

The principal activity of the company is the provision of labour and permanent placements . The pre-tax profit for the year amounted to £38,077 (2023: loss of £5,690). Turnover has increased from the previous year by £5.3m (2024: £17.5m, 2023: £12.2m). This is due to the following: - Securing a contract with Bylor on the Hinkley Point Nuclear Project. - Securing more contracts with clients on the HS2 project. - Staff pushing harder for permanent placements (approximately a £200k increase). - Overall growth of the business. - Investment in staff.

DESCRIPTION OF PRINCIPLE RISKS AND UNCERTAINTIES

The key business risks and uncertainties affecting the company are: - Employment Law legislation and Agency Worker Regulations. - Rising employment costs and inflation. - Shortage of suitably skilled workers in the market. - Compliance and regulatory risks (IR35, CIS, Etc). - The UK Government's appetite for risk on infrastructural projects, and the impact of the change in Government to Labour on these projects. - The overall economic position of the UK. The above risks are mitigated by: - Keeping up to date with any regulatory changes, CICJ updates, or any other items that would impact the compliance of the business. - Monitoring gross profit margins regularly to ensure the costs of the business can be covered within the hourly rates. - Having multiple offices with highly experienced recruitment consultants, who keep in touch with current, former and potential candidates. - Monitoring Construction Online and other construction-based subscriptions to keep up to date with the status of government infrastructure projects. - Keeping on top of current affairs from a political standpoint. - Diversifying the business into Healthcare, Training and Placements in non-construction related business.

ANALYSIS USING KEY PERFORMANCE INDICATORS

The directors of the company monitor its performance by reference to key performance indicators as follows: Turnover: The turnover for the year was £17.5m (2023: £12.2m) representing an increase of £5.3m (43.4%) on the previous year. Placements increased from £130k in 2023, to £330k in 2024. This is largely due to a contract with Bylor whereby the staff came onboard for a few months generating labour revenue, then at the end of the period they were permanently placed with the client, prompting a placement fee for each individual worker. Outside of placements the turnover grew by £5.1m, which is due to the Operations staff pushing on with more workers on existing sites, and pursuing new sites around London and Birmingham. Gross profit: The gross profit for the year was £2.36m (2023: £1.58m) which is an increase of £780k (49.4%) on the previous year. Excluding placements from the margin calculation, gross profit percentage rose by just under 1% as a concentrated effort was made to increase charge rates and subsequently profit margin. This is evident in the rise in gross profit.

CONCLUSION AND FUTURE DEVELOPMENTS

Overall, the management of AA Euro Recruitment UK Limited is content with the progress that was made in 2024 compared to the prior year. Investment has been made in the Healthcare division in the UK with staff. Management expects to push Healthcare further into 2025 and diversify further. The business reputation of AA Euro Recruitment UK Limited has also seen a significant jump as external audits with Balfour Beatty Vinci have shown the company to be the top labour supplier on the Curzon Street site of the HS2 Project in Birmingham. Management expects the business to continue to grow, both in new areas and existing markets, as it has a very strong management team, highly capable staff, and financial support from Allied Irish Bank.

This report was approved by the board of directors on 28 October 2025 and signed on behalf of the board by:

Mr P P McCarthy

Director

Registered office:

501 Boundary House

Business Centre

Boston Road

London

W7 2QE

AA EURO RECRUITMENT UK LIMITED

DIRECTORS' REPORT

YEAR ENDED 31 DECEMBER 2024

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

DIRECTORS

The directors who served the company during the year were as follows:

Mr P P McCarthy
Mr L R Ryan

DIVIDENDS

The directors do not recommend the payment of a dividend.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - state whether applicable United Kingdom Accounting Standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements. - make judgments 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

AUDITOR

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 28 October 2025 and signed on behalf of the board by:

Mr P P McCarthy

Director

Registered office:

501 Boundary House

Business Centre

Boston Road

London

W7 2QE

AA EURO RECRUITMENT UK LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AA EURO RECRUITMENT UK LIMITED

YEAR ENDED 31 DECEMBER 2024

OPINION

We have audited the financial statements of AA Euro Recruitment UK Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 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 accounts, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the accounts 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 accounts are authorised for issue.

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

OTHER INFORMATION

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

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, or returns adequate for our audit have not been received from branches not visited by us; or - the accounts are not in agreement with the accounting records and the returns; or - certain disclosures of directors remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

RESPONSIBILITIES OF DIRECTORS

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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. 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: We have undertaken high level reviews of the results and position of the company for the year in question, and have considered the effects of the industry and wider economy on the company. We have made enquiries of management regarding the company's own risk assessment procedures and any identified irregularities, including fraud, identified in the year. We have used our knowledge and understanding of the company's business, including the remuneration of key management personnel, to assess how and where irregularities, including fraud, might arise and we have planned our testing using a risk based approach. We have considered the potential for irregularities, including fraud, in all our testing but have also carried out specific testing to comply with the ISA (UK) requirements regarding management override of controls. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. USE OF OUR REPORT

This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Douglas Parker FCA

(Senior Statutory Auditor)

For and on behalf of

Meadows & Co Limited

Chartered Accountants & Statutory Auditor

Headlands House

1 Kings Court

Kettering Parkway

Kettering

NN15 6WJ

28 October 2025

AA EURO RECRUITMENT UK LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

YEAR ENDED 31 DECEMBER 2024

		2024	2023
Note		£	£
TURNOVER	4	17,520,336	12,213,874

Cost of sales	15,156,282	10,629,094
	-------------	-------------
GROSS PROFIT	2,364,054	1,584,780

Administrative expenses		2,323,559	1,581,704
		------------	------------
OPERATING PROFIT	5	40,495	3,076

Interest payable and similar expenses	8	2,418	8,766
		------------	------------
PROFIT/(LOSS) BEFORE TAXATION		38,077	( 5,690)

Tax on profit/(loss)	9	9,783	–
		--------	-------
PROFIT/(LOSS) FOR THE FINANCIAL YEAR AND TOTAL COMPREHENSIVE INCOME		28,294	( 5,690)
		--------	-------

RETAINED EARNINGS AT THE START OF THE YEAR	73,408	79,098
	---------	--------
RETAINED EARNINGS AT THE END OF THE YEAR	101,702	73,408
	---------	--------

All the activities of the company are from continuing operations.

AA EURO RECRUITMENT UK LIMITED

STATEMENT OF FINANCIAL POSITION

31 December 2024

	2024		2023
Note	£	£	£	£

FIXED ASSETS

Tangible assets	10		99,492		57,610

CURRENT ASSETS

Debtors	11	8,856,987	4,008,462
Cash at bank and in hand		133,414	117,265
		------------	------------
		8,990,401	4,125,727

CREDITORS: amounts falling due within one year	13	8,953,209		4,098,354
		------------		------------
NET CURRENT ASSETS			37,192		27,373
			---------		--------
TOTAL ASSETS LESS CURRENT LIABILITIES			136,684		84,983

CREDITORS: amounts falling due after more than one year	14	34,882	11,475
		---------	--------
NET ASSETS		101,802	73,508
		---------	--------

CAPITAL AND RESERVES

Called up share capital fully paid	17	100	100
Profit and loss account		101,702	73,408
		---------	--------
SHAREHOLDERS FUNDS		101,802	73,508
		---------	--------

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

These financial statements were approved by the board of directors and authorised for issue on 28 October 2025 , and are signed on behalf of the board by:

Mr P P McCarthy

Director

Company registration number: 06864039

AA EURO RECRUITMENT UK LIMITED

STATEMENT OF CASH FLOWS

YEAR ENDED 31 DECEMBER 2024

	2024	2023
Note	£	£

CASH FLOWS FROM OPERATING ACTIVITIES

Profit/(loss) for the financial year	28,294	( 5,690)

Adjustments for:
Depreciation of tangible assets	14,789	8,567
Interest payable and similar expenses	2,418	8,766
Tax on profit/(loss)	9,783	–
Accrued (income)/expenses	( 187,190)	98,062

Changes in:
Trade and other debtors	( 4,704,359)	( 3,056,176)
Trade and other creditors	4,610,745	560,014
	------------	------------
Cash generated from operations	( 225,520)	( 2,386,457)

Interest paid	( 2,418)	( 8,766)
Tax received	56	–
	---------	------------
Net cash used in operating activities	( 227,882)	( 2,395,223)
	---------	------------

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of tangible assets	( 56,671)	( 36,009)
	---------	------------
Net cash used in investing activities	( 56,671)	( 36,009)
	---------	------------

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from loans from group undertakings	638,150	801,155
Payments of finance lease liabilities	30,584	( 5,438)
	---------	------------
Net cash from financing activities	668,734	795,717
	---------	------------

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS		384,181	( 1,635,515)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		(2,090,880)	(455,365)
		------------	------------
CASH AND CASH EQUIVALENTS AT END OF YEAR	12	( 1,706,699)	( 2,090,880)
		------------	------------

AA EURO RECRUITMENT UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2024

1. GENERAL INFORMATION

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 501 Boundary House Business Centre, Boston Road, London, W7 2QE.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

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.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services rendered, stated net of discounts and of Value Added Tax. In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion. 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 it is probable the expenses recognised will be recovered.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Motor vehicles	-	12% reducing balance
Equipment	-	33% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Financial instruments

Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit and loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit and loss.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. TURNOVER

Turnover arises from:

	2024	2023
	£	£
Provision of labour and permanent placements	17,339,272	12,079,361
Management charges receivable	181,064	134,513
	-------------	-------------
	17,520,336	12,213,874
	-------------	-------------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. OPERATING PROFIT

Operating profit or loss is stated after charging:

	2024	2023
	£	£
Depreciation of tangible assets	14,789	8,567
Impairment of trade debtors	500	–
Foreign exchange differences	30,000	1,000
	--------	-------

6. AUDITOR'S REMUNERATION

	2024	2023
	£	£
Fees payable for the audit of the financial statements	20,000	14,750
	--------	--------

7. STAFF COSTS

The average number of persons employed by the company during the year, including the directors, amounted to:

	2024	2023
	No.	No.
Production staff	100	91
Administrative staff	9	7
	----	----
	109	98
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2024	2023
	£	£
Wages and salaries	8,199,354	7,145,240
Social security costs	898,707	861,169
Other pension costs	94,460	76,213
	------------	------------
	9,192,521	8,082,622
	------------	------------

8. INTEREST PAYABLE AND SIMILAR EXPENSES

	2024	2023
	£	£
Interest on obligations under finance leases and hire purchase contracts	1,783	1,162
Other interest payable and similar charges	635	7,604
	-------	-------
	2,418	8,766
	-------	-------

9. TAX ON PROFIT/(LOSS)

Major components of tax expense

	2024	2023
	£	£

Current tax:

UK current tax expense	9,783	–
	-------	----
Tax on profit/(loss)	9,783	–
	-------	----

Reconciliation of tax expense

The tax assessed on the profit/(loss) on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 19 %).

	2024	2023
	£	£
Profit/(loss) on ordinary activities before taxation	38,077	( 5,690)
	--------	-------
Profit/(loss) on ordinary activities by rate of tax	9,519	( 1,081)
Effect of expenses not deductible for tax purposes	4,192	1,598
Effect of capital allowances and depreciation	2,571	( 5,456)
Utilisation of tax losses	( 6,499)	–
Unused tax losses	–	4,939
	--------	-------
Tax on profit/(loss)	9,783	–
	--------	-------

10. TANGIBLE ASSETS

	Motor vehicles	Equipment	Total
	£	£	£
Cost
At 1 January 2024	69,263	1,339	70,602
Additions	55,944	727	56,671
	---------	-------	---------
At 31 December 2024	125,207	2,066	127,273
	---------	-------	---------
Depreciation
At 1 January 2024	12,388	604	12,992
Charge for the year	14,102	687	14,789
	---------	-------	---------
At 31 December 2024	26,490	1,291	27,781
	---------	-------	---------
Carrying amount
At 31 December 2024	98,717	775	99,492
	---------	-------	---------
At 31 December 2023	56,875	735	57,610
	---------	-------	---------

11. DEBTORS

	2024	2023
	£	£
Trade debtors	2,380,553	2,935,263
Amounts owed by group undertakings	1,674,643	1,058,248
Prepayments and accrued income	151,166	9,599
Corporation tax repayable	–	5,352
Other debtors	4,650,625	–
	------------	------------
	8,856,987	4,008,462
	------------	------------

The company has an ongoing debt financing arrangement whereby it receives a proportion of the value of sales invoices in advance. Advances are disclosed in the balance sheet as current liabilities and the gross amount of the financial debtors is included in trade debtors.

12. CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise the following:

	2024	2023
	£	£
Cash at bank and in hand	133,414	117,265
Bank overdrafts	( 1,840,113)	( 2,208,145)
	------------	------------
	( 1,706,699)	( 2,090,880)
	------------	------------

13. CREDITORS: amounts falling due within one year

	2024	2023
	£	£
Bank loans and overdrafts	1,840,113	2,208,145
Trade creditors	16,050	49,622
Amounts owed to group undertakings	1,624,321	986,171
Accruals and deferred income	77,704	120,728
Corporation tax	9,839	–
Social security and other taxes	5,298,291	591,859
Obligations under finance leases and hire purchase contracts	11,449	4,272
Other creditors	75,442	137,557
	------------	------------
	8,953,209	4,098,354
	------------	------------

Included in bank loans and overdrafts are advances in respect of financial debtors of £1,840,113 (2023: £2,208,145) which are secured against the debtors' ledger.

Hire purchase liabilities are secured against the assets they relate to.

14. CREDITORS: amounts falling due after more than one year

	2024	2023
	£	£
Obligations under finance leases and hire purchase contracts	34,882	11,475
	--------	--------

Hire purchase liabilities are secured against the assets they relate to.

15. FINANCE LEASES AND HIRE PURCHASE CONTRACTS

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	2024	2023
	£	£
Not later than 1 year	11,449	4,272
Later than 1 year and not later than 5 years	34,882	11,475
	--------	--------
	46,331	15,747
	--------	--------

16. EMPLOYEE BENEFITS

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 94,460 (2023: £ 76,213 ).

17. CALLED UP SHARE CAPITAL FULLY PAID

Issued, called up and fully paid

	2024		2023
	No.	£	No.	£
Ordinary shares of £ 1 each	100	100	100	100
	----	----	----	----

18. ANALYSIS OF CHANGES IN NET DEBT

	At 1 Jan 2024	Cash flows	At 31 Dec 2024
	£	£	£
Cash at bank and in hand	117,265	16,149	133,414
Bank overdrafts	(2,208,145)	368,032	(1,840,113)
Debt due within one year	(990,443)	(645,327)	(1,635,770)
Debt due after one year	(11,475)	(23,407)	(34,882)
	------------	---------	------------
	( 3,092,798)	( 284,553)	( 3,377,351)
	------------	---------	------------

19. OPERATING LEASES

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2024	2023
	£	£
Not later than 1 year	31,500	43,605
Later than 1 year and not later than 5 years	–	31,500
	--------	--------
	31,500	75,105
	--------	--------

20. CONTINGENCIES

The company is subject to potential interest and penalty charges arising from tax errors. These errors have been disclosed to the relevant authorities, however at the reporting date it is uncertain whether any liability in respect of interest and penalty charges will materialise, and the timing and amount of any charges therefore cannot be reliably estimated. As such, no provision has been recognised within these financial statements.

21. RELATED PARTY TRANSACTIONS

The company has taken advantage of the provisions available under FRS 102 not to disclose transactions and balances with companies within a 100% owned group. Key management personnel are deemed to be the directors, who are remunerated within the parent company.

22. PARENT COMPANY

The parent company of the smallest group that prepares consolidated accounts which includes the position and results of the company at 31 December 2024 is AA Euro Recruitment Group Limited, whose registered office is 1 Adelphi Quay, Waterford, Ireland.