The directors present the Strategic report for the year ended 31 March 2025.

Introduction

This strategic report is prepared in accordance with the Companies Act 2006, section 414C. It provides a fair, balanced, and comprehensive analysis of the development, performance, and position of Basis Research Group Holdings Limited (hereafter “the Group”) and its subsidiaries. The report outlines the Group’s strategy, operational performance, risks, and future outlook for the year ended 31 March 2025.

Basis Research Group Holdings Limited is a full-service market research group specializing in delivering data driven insights that empower businesses to make informed, strategic decisions. By integrating traditional qualitative and quantitative research methodologies with the latest advancements in Big Data analytics and Artificial Intelligence (AI), the Group provides a comprehensive understanding of market trends, consumer behaviour and competitive dynamics.

The Group operates through two primary hubs globally in UK and US, serving clients across multiple sectors including retail, healthcare, financial services, and technology.

Revenue is generated through a mixture of bespoke, ad-hoc research projects and tracking studies. The Group operates with a hybrid delivery model, combining human expertise with advanced technology, delivering actionable and accurate insights at speed and scale.

Turnover has increased by 27% during the financial year ended March 2025 to £37.7m (2024: £29.7m), this is primarily due to continued focus on delivering excellent customer service, resulting in strong account growth from our long-standing, existing client base in addition to growth in new client acquisition.

During the year, the Group continued to effectively monitor and manage costs which has resulted in strong translation to operating profits of £5.6m realised (2024: £2.5m).

Group Strategy

The Group continues to explore expansion of its global presence and market share with continued investment in its US entities. This continues to facilitate organic growth and new business acquisition for the Group in addition to creating opportunities of cross-sell for the Company. A specific area of focus for investment continues to be in building and using AI solutions in a bid to disrupt the insights industry in addition to streamlining our mainstream operations. The Group continues to strive to be at the forefront of the technological advancement for our industry in this exciting space.

The Group has exciting plans to accelerate future growth with further investment in marketing activities committed to continue to cement the Basis brand as a leading choice for market research services globally.

The Group is multi award winning – in addition to being named Quirk’s 2024 Marketing Research Supplier of the Year, Basis Global’s success was recognised with a record 8 nominations at the 2025 MRS Awards — more than any other insight consultancy — and 5 wins, including:

•    Business Impact of the Year – Global (with EuroMillions)

•    Healthcare Research (with UKHSA)

•    New Consumer Insight (with Which?)

•    B2B Research (with Sage)

•    Social Impact (Liz Nelson Award with UKHSA)

These awards reflect the ambition of our clients, the strength of our team, and the impact we’re able to deliver. These ongoing, regular achievements are expected to continue to generate interest from prospective clients and talent alike.

Training and Development

As a culture first business, the Group is heavily committed to investment in ongoing talent acquisition, training and retention as a firm method of ensuring consistent and optimal client delivery, this allows the business to maintain its excellent insight standards. Remuneration packages are regularly benchmarked to enable the business to continue to attract the very best calibre of talent.

The market research sector is predominantly ad-hoc and is always expected to remain uncertain however, the Group is very well established with a long standing, repeat client base. The commitment to delivering excellent customer experience along with the strategy of the Group detailed above is key to ongoing future proofing of the business and ensuring the Group can continue to withstand any arising economic challenges that are faced by the industry.

The Group has a highly diversified client base with the majority of business relating to short-term projects as opposed to long-term retained contracts and so there is minimal reliance on individual clients.

The Group operates in a complex global environment that presents a range of strategic, operational and financial risks. A proactive risk management framework is in place to identify, monitor and mitigate key threats to business continuity and performance:

Based on the excellent growth the Group has realised during the last financial year along with the near-term uncertainties, we believe the Group is in a strong position at the year-end.

The directors monitor the performance of the Group through a range of financial KPI’s. The two most critical metrics continue to be Gross Profit and Operating Profit which are set out as below along with prior year comparatives:

                                2025            2024

Gross Profit (£000’s)                     25,952         18,973

Operating Profit (£000’s)                 5,570         2,538

Operating Profit %                      21%         13%

Despite ongoing macroeconomic uncertainty, the Group remains well-positioned to continue its growth trajectory, supported by:

• Increased demand for real-time data insights;

• Strategic investments in AI and automation; and

• A robust pipeline of existing and new business in both the UK and US markets.

The Group continues to uphold its excellent reputation by achieving outstanding levels of client satisfaction, cementing Basis Research Group Holdings Limited as a leading choice for the provision of market research services.

The Board remains confident in the Group’s ability to deliver sustainable, long-term value for shareholders and stakeholders alike.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2025.

The principal activity of the company is that of a holding company for a trading group, while the principal activity of the Group continued to be that of market research.

The results for the year are set out on pages 9 to 10.

Ordinary dividends were paid amounting to £393,373 (2024: £380,000). 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:

After the year end, the company's subsidiary Basis US Inc. partially sold its ownership in the following subsidiary companies:

- Basis Ideas LLC, resulting in the company's indirect ownership reducing from 73% to 56%; and

- Basic New York LLC, resulting in the company's indirect ownership reducing from 79% to 51%.

The auditor, Shaw Gibbs (Audit) Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The directors are responsible for preparing the Annual 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 group and company, and of the profit or loss of the group and company for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates 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 group and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company 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 auditor of the company is aware of that information.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's Strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the Directors' report. It has done so in respect of future developments and financial risk management.

We have audited the financial statements of Basis Research Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, 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).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2025 and of the group's profit for the year 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 group and parent 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 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

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 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 strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

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

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

• certain disclosures of directors' remuneration specified by law are not made; or

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

As explained more fully in the directors' responsibilities statement, 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We 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.

1. At the planning stage of the audit, we gain an understanding of the laws and regulations which apply to the company and how the management seek to comply with those laws and regulations. This helps us to plan appropriate risk assessments.

2. During the audit, we focus on relevant risk areas and review the compliance with the laws and regulations by making relevant enquiries and undertaking corroboration, for example by reviewing Board Minutes and other documentation.

    

3. We assess the risk of material misstatement in the financial statements including as a result of fraud and undertook procedures including:

   1. Reviewing the controls set in place by management;

   2. Making enquiries of management as to whether they consider fraud or other irregularity may have taken place, or where such opportunity might exist;

   3. Challenging management assumptions with regard to accounting estimates such as stage of completion the projects; and

   4. Identifying and testing journal entries, particularly those which appear to be unusual by size or nature.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

The notes on pages 18 to 36 form an integral part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The notes on pages 18 to 36 form an integral part of these financial statements.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £344,893 (2024: £1,763 profit).

For the financial year ended 31 March 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The notes on pages 18 to 36 form an integral part of these financial statements.

The notes on pages 18 to 36 form an integral part of these financial statements.

The notes on pages 18 to 36 form an integral part of these financial statements.

Basis Research Group Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 264 Banbury Road, Oxford, OX2 7DY.

The group consists of Basis Research Group Holdings Limited and all of its subsidiaries.

The nature of operations and principal activities of the group and company are disclosed in the Directors' report.

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 Group (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 £1.

The financial statements have been prepared under the historical cost convention, modified to include certain fixed asset investments at fair value. The principal accounting policies adopted are set out below.

The group companies have taken advantage of the exemptions provided by FRS 102 Section 33.1A, not to disclose transactions and outstanding balances with Basis Research Group Holdings Limited and entities that form part of the Basis Research Group Holdings Limited group where they are, directly or indirectly, wholly owned by Basis Research Group Holdings Limited.

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:

• 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 each category of financial instrument; 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 33 ‘Related Party Disclosures’: Compensation for key management personnel.

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. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Basis Research Group Holdings Limited together with all entities controlled by the parent company (its subsidiaries).

All financial statements are made up to 31 March 2025. 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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover represents the value of the work undertaken during the year, net of VAT or local taxes on sales. Where amounts have been invoiced but work not yet undertaken, these amounts are carried forward to future accounting periods. Where work has been undertaken but not invoiced, the value of this work has been accrued.

Other income

Interest income is recognised using the effective interest rate method.

Long term contracts

Amounts recoverable on long term contracts, which are included in accrued income, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in current liabilities as deferred income.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

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

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

The group and company have 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 and company's balance sheet when the group/company 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 trade and other debtors, amounts owed by group undertakings and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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/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.

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/company after deducting all of its liabilities.

Basic financial liabilities, including trade and other creditors, amounts owed to group undertakings and other borrowings, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

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 tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Differences between contributions payable in the year and contributions paid are shown as other creditors.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting date, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing on the reporting date. 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.

Assets and liabilities of overseas subsidiaries are translated into the group's presentation currency at the rate ruling at the reporting date. Income and expenses of overseas subsidiaries are translated at the average rate for the year as the directors consider this to be a reasonable approximation to the rate at the date of the transaction. Translation differences are recognised in other comprehensive income and accumulated in equity.

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 following judgement (apart from those involving estimates) has had the most significant effect on amounts recognised in the financial statements:

Management carry out a review of indicators of impairment in relation of investments in subsidiaries on an annual basis. In performing this review, management are required to make judgements as to whether the information considered (for example, recent results of the subsidiary) represents an indicator of impairment. Should indicators of impairment be noted, management then perform a detailed review of the value of the investments held in order to assess whether an impairment is required.

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 group has a number of customer contracts that span over two or more accounting periods.

Amounts recoverable on long term contracts, which are included in prepayments and accrued income, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in current liabilities as deferred income. Prepayments and accrued income are included within note 18, and deferred income is included within note 19.

The key estimate in this area is the percentage that each project is complete at the year end date. This is determined by reference to the progress achieved against the milestones stipulated in the underlying contracts.

The useful economic life of goodwill has been derived from the judgement of the directors, using their best estimate of the write-down period. Goodwill is included in note 14.

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

Their aggregate remuneration comprised:

Further information regarding the loss on disposal of subsidiary is included within note 12.

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

On 30 March 2025, the subsidiary company Basis Social Limited ("BSL") was sold to external parties for total contingent consideration of £612,010. The disposal resulted in the group recognising a loss on disposal of £123,158. The contingent asset is set out further in note 27.

Also as a result of this disposal, BSL's trade has been included within discontinued operations for both the current and comparative year. At the reporting date, BSL had brought forward retained losses of £5,446, which have been disposed of separately via the group statement of changes in equity.

Amortisation is included within Administrative expenses in the group statement of comprehensive income.

Details of the company's subsidiaries at 31 March 2025 are as follows:

Registered office addresses:

The group sold its 70% indirect shareholding in Basis Social Limited, a former subsidiary, as set out further in note 12.

On 1 July 2024, Basis Health London Limited issued an additional 35,136 Ordinary 0.1p shares at par, which were purchased by non-controlling interests. This resulted in the group's indirect shareholding decreasing down to 74% (2024: 100%).

Also within the year, the indirect shareholding in the following overseas companies changed accordingly:

Basis Research LA LLC increased up to 100% (2024: 90%); Basis Chicago decreased down to 60% (2024: 83%) and Basis Ideas LLC increased up to 73% (2024: 65%). Events after the reporting date are included in note 28.

*Audit exemption - disclosed via note 31.

Amounts owed to group undertakings are unsecured, do not bear interest and are repayable on demand.

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

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

The B Ordinary shares carry full voting, dividend and capital distribution rights, including on winding up. They confer no right to redemption.

The F, G and H Ordinary shares carry full dividend and capital distribution rights, including on winding up. The company may declare dividends of differing amounts and at different times in respect of different classes of shares. They confer no right to redemption or voting rights.

Represents cumulative profits or losses, net of distributions to owners.

Non-controlling interests

Represents cumulative profits or losses owed to minority parties, net of any distributions.

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:

As part of the disposal of Basis Social Limited on 30 March 2025, the group is entitled to deferred consideration of up to £612,010 from the purchaser.

The amount is payable in instalments from July 2026 onwards, subject to the availability of distributable profits in the acquired company, or earlier in the event of an exit or by the long-stop date. Interest will accrue on any outstanding balance from 1 July 2026 at a rate of 2% above Barclays Bank base rate.

Receipt of the deferred consideration is dependent on the future performance and cash flows of the acquired business, which are uncertain. Accordingly, at the reporting date, no asset has been recognised in the consolidated financial statements. The group will recognise income in future periods upon receipt of funds.

After the year end, the company's subsidiary Basis US Inc. partially sold its ownership in the following subsidiary companies:

- Basis Ideas LLC, resulting in the company's indirect ownership reducing from 73% to 56%; and

- Basic New York LLC, resulting in the company's indirect ownership reducing from 79% to 51%.

The company has taken advantage of the exemption in FRS 102 Section 33.1A and has not disclosed transactions and outstanding balances with entities which form part of the group, where they are 100% owned (directly or indirectly) by Basis Research Group Holdings Limited.

At the reporting date, Basis New York LLC was owed the following amounts from its shareholders:

• Randy Guzman     £nil (2024: £18,078)

• Paul Eccles     £nil (2024: £25,191)

• Amy Moss     £nil (2024: £nil)

• Nicole Citron     £nil (2024: £nil)

Dividends totalling £393,373 (2024: £380,000) were paid in the year in respect of shares held by the company's directors.

The following subsidiary has taken the audit exemption under Section 479A of the Companies Act 2006:

• Basis Health London Limited         - Company Registration No. 11844768

In order for the above subsidiary to take the audit exemption under Section 479A, the company has guaranteed all outstanding liabilities of that subsidiary company at the reporting date, until those liabilities are satisfied in full (under Section 479C of the Companies Act 2006).

These consolidated financial statements are the smallest and largest group to include the results of the company.

The ultimate controlling party is considered to be Mr R Mortensen, due to his majority shareholding.