Company registration number 09834972 (England and Wales)
FAWKES & REECE GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
FAWKES & REECE GROUP LIMITED
COMPANY INFORMATION
Directors
Mr R G Connolly
Mr J Morgan
Company number
09834972
Registered office
68 Cornhill
London
EC3V 3QX
Auditor
KLSA LLP
Kalamu House
11 Coldbath Square
London
EC1R 5HL
FAWKES & REECE GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 33
FAWKES & REECE GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -

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

Review of the business

Fawkes & Reece Group is a national recruitment and staffing firm specialising in the Construction and Built Environment sectors, operating from seven regional offices following the acquisition of Venture Contracts Ltd (Northampton) in September 2024. In another economically challenging year, performance remained strong across all regional divisions, particularly within Temporary/Contract recruitment and Permanent placements at intermediate to senior levels, driven by continued industry demand despite similar economic headwinds. The Group continued to maintain all levels of investment in its headcount and people programme through its Apprenticeships, training and our qualification programme as well as the planned recruitment of new employees across all regions of the business. The Group enters FY2026 from a solid position, with a tightened risk profile and continued national expansion strategy.

Principal risks and uncertainties

The management of the business and the execution of the group's strategy are subject to a number of risks. Risks are reviewed by the directors and appropriate processes are put in place to monitor and mitigate them. The key business risks affecting the group are set out below:-​ The business continued in its approach and strategy to credit risk, which resulted in a dramatic reduction in bad debts for the financial year, yet still increasing its sales, but with the appropriate levels of credit insurance in place across all clients Economic challenges and both inflation and interest rates continued to be a notable topic within the industry and wider economy. Demand for new homes continues to remain high, although there was a significant reduction in the commencement of new sites/​projects. Increased interest rates continued to provide challenges for the House Building sector and the cost of funding new projects across other construction sectors. The house building sector continued to face complications around Planning bureaucracy.

Key performance indicators

The key financial indicators for the performance of the group are gross profit margin and turnover.

Turnover of the group was £66 million (2024: £60 million), increased 10% on prior year, producing gross profit of £13 million (2024: £11 million), increased 18% on prior year.

As shown in the group's profit and loss account set out on page 9, the group made a profit before taxation of £0.87million (2024: loss £0.97k).

The group's balance sheet on page 10 shows that its financial position remained extremely strong with net assets valued at £2.3 million (2024: £2.4 million).

The key non-financial performance indicators are client service and satisfaction and stakeholder relationships.

FAWKES & REECE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -
Other information

Employee Engagement

The group is proud to be at the forefront in the way it trains and develops its staff. During the year a further 7 members of staff were supported to become REC Qualified and over 84% of the company’s senior personnel are now qualified.

Our commitment to Apprentices resulted in the continuation of the 5% club, where we have 5% of our workforce in earn-​and-​learn positions including apprentices over the next five years. There are currently 9 apprentices across the group.

Our “Proud to be a number” programme provided the opportunity to roll out a new Buddy Initiative and new starter incentives which was implement successful along with increased levels of staff training, team building initiatives and activities. Also encouraging increased levels of collaboration and communication across the group through meetings and engagement and personal career plans.

Growth and Expansion

The acquisition of Northampton-based Venture Contracts Ltd (VCL) was completed in September 2024. This strategic addition has been integrated into Fawkes & Reece Midlands, strengthening our delivery capability across the region and establishing the Group’s seventh regional office. With VCL’s proven expertise, strong local presence, and established team, our core customers have already benefited from enhanced levels of support, which in turn has contributed to the success of several recent contract wins across the Group.

Our business continues to expand through a combination of organic growth and targeted strategic acquisitions. We have recently announced our expansion into the West, specifically Cardiff. Whist our existing network of seven offices enables us to support customers from the North to the South of the UK, delivering our high-quality service sustainably into the West presents challenges when operating solely from our current bases. Through our focused acquisition strategy, we aim to address this and are working towards achieving a £100m turnover — an ambition that will perfectly align with the celebrations of our 25th anniversary

Green Initiatives

Recycling

Each office has designated recycling bins for paper, plastic, cans and general waste. This gives our staff the opportunity to be involved in the company’s environmental processes. Staff members appreciate the chance to contribute to our overall environmental impact reduction.

Energy Conservation

In each of our offices we have installed low-​energy lighting systems and office equipment, ensuring all PCs automatically shut down at 7pm each night. We have also implemented printers that automatically delete unprinted documents after four hours and are defaulted to double sided printing – this has resulted in a drop in paper usage in all offices. We also have login systems for printer and copier usage to give personal responsibility to our people for their energy consumption.

Transport

During the year, we continued our policy of purchasing only electric vehicles for new company cars. Additionally, we encourage our staff to carpool or use public transport where possible.

Waste Electrical & Electronic Equipment (WEEE)

We try to ensure that every part of WEEE is recycled with an auditable trail of destruction to the greatest practical extent.

FAWKES & REECE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -

On behalf of the board

Mr R G Connolly
Director
3 December 2025
FAWKES & REECE GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 4 -

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

Principal activities

The principal activity of the company and group is that of holding company and recruitment and employment consultants in the Construction Industry and Built Environment.

Results and dividends

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

Ordinary dividends were paid during the year. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr R G Connolly
Mr J Morgan
Auditor

The auditor, KLSA LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

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.

On behalf of the board
Mr R G Connolly
Director
3 December 2025
FAWKES & REECE GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
- 5 -

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 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.

FAWKES & REECE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FAWKES & REECE GROUP LIMITED
- 6 -
Opinion

We have audited the financial statements of Fawkes & Reece Group 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, the company 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' r eport 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.

FAWKES & REECE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FAWKES & REECE GROUP LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 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.

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, 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.

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner 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 sector; and

- 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 data protection, anti-bribery, employment, environmental and health and safety legislation.

We also considered potential fraud drivers: including financial or other pressures, opportunity, override of controls and personal or corporate motivations. We considered the programmes and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included testing journals, evaluating the business rationale of significant transactions outside the normal course of business and validating the appropriateness of internal controls and significant accounting estimations based on our fraud risk criteria;

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, 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.

FAWKES & REECE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FAWKES & REECE GROUP LIMITED
- 8 -

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;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

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;

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

We obtained understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those related to the financial reporting framework, tax regulations in the jurisdictions in which the company operates.

Based on this understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved: making enquiries of management, those responsible for legal and compliance procedures and reviewing other correspondence.

We communicated identified fraud risks and non-compliance with laws and regulations with those charged with governance, throughout the audit team and remained alert to any indications throughout the audit.

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the 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.

Harsheel Dodhia (Senior Statutory Auditor)
For and on behalf of KLSA LLP
3 December 2025
Chartered Accountants
Statutory Auditor
Kalamu House
11 Coldbath Square
London
EC1R 5HL
FAWKES & REECE GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
- 9 -
2025
2024
Notes
£
£
Turnover
3
65,676,376
59,827,266
Cost of sales
(52,901,056)
(48,388,701)
Gross profit
12,775,320
11,438,565
Administrative expenses
(11,168,826)
(10,544,883)
Other operating income
1,007
-
0
Operating profit
4
1,607,501
893,682
Interest receivable and similar income
8
17,675
20,090
Interest payable and similar expenses
9
(570,263)
(731,513)
Amounts written off investments
(189,208)
-
Profit before taxation
865,705
182,259
Tax on profit
10
(406,286)
(192,000)
Profit/(loss) for the financial year
459,419
(9,741)
Profit/(loss) for the financial year is attributable to:
- Owners of the parent company
375,271
(11,024)
- Non-controlling interests
84,148
1,283
459,419
(9,741)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

FAWKES & REECE GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2025
31 March 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Goodwill
13
308,272
728,199
Tangible assets
14
188,233
206,237
496,505
934,436
Current assets
Debtors
17
13,959,094
12,275,757
Cash at bank and in hand
390,564
178,208
14,349,658
12,453,965
Creditors: amounts falling due within one year
18
(12,414,523)
(10,292,583)
Net current assets
1,935,135
2,161,382
Total assets less current liabilities
2,431,640
3,095,818
Creditors: amounts falling due after more than one year
19
(130,989)
(679,215)
Provisions for liabilities
Deferred tax liability
21
1,521
6,143
(1,521)
(6,143)
Net assets
2,299,130
2,410,460
Capital and reserves
Called up share capital
24
35,000
35,000
Share premium account
2,439
2,439
Profit and loss reserves
1,973,894
2,159,438
Equity attributable to owners of the parent company
2,011,333
2,196,877
Non-controlling interests
287,797
213,583
2,299,130
2,410,460
The financial statements were approved by the board of directors and authorised for issue on 3 December 2025 and are signed on its behalf by:
03 December 2025
Mr R G Connolly
Director
Company registration number 09834972 (England and Wales)
FAWKES & REECE GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2025
31 March 2025
- 11 -
2025
2024
Notes
£
£
£
£
Fixed assets
Investments
15
6,198,909
6,198,909
Current assets
Debtors
17
999
999
Cash at bank and in hand
100
100
1,099
1,099
Creditors: amounts falling due within one year
18
(6,346,777)
(6,157,569)
Net current liabilities
(6,345,678)
(6,156,470)
Net (liabilities)/assets
(146,769)
42,439
Capital and reserves
Called up share capital
24
35,000
35,000
Share premium account
2,439
2,439
Profit and loss reserves
(184,208)
5,000
Total equity
(146,769)
42,439

As permitted by s408 Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s profit for the year was £371,607 (2024 - £511,115 profit).

The financial statements were approved by the board of directors and authorised for issue on 3 December 2025 and are signed on its behalf by:
03 December 2025
Mr R G Connolly
Director
Company registration number 09834972 (England and Wales)
FAWKES & REECE GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 April 2023
35,000
2,439
2,681,577
2,719,016
212,300
2,931,316
Year ended 31 March 2024:
Loss and total comprehensive income
-
-
(11,024)
(11,024)
1,283
(9,741)
Dividends
11
-
-
(511,115)
(511,115)
-
(511,115)
Balance at 31 March 2024
35,000
2,439
2,159,438
2,196,877
213,583
2,410,460
Year ended 31 March 2025:
Profit and total comprehensive income
-
-
375,271
375,271
84,148
459,419
Dividends
11
-
-
(560,815)
(560,815)
(9,934)
(570,749)
Balance at 31 March 2025
35,000
2,439
1,973,894
2,011,333
287,797
2,299,130
FAWKES & REECE GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2023
35,000
2,439
5,000
42,439
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
511,115
511,115
Dividends
11
-
-
(511,115)
(511,115)
Balance at 31 March 2024
35,000
2,439
5,000
42,439
Year ended 31 March 2025:
Profit and total comprehensive income
-
-
371,607
371,607
Dividends
11
-
-
(560,815)
(560,815)
Balance at 31 March 2025
35,000
2,439
(184,208)
(146,769)
FAWKES & REECE GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
- 14 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
2,549,742
2,402,083
Interest paid
(570,263)
(731,513)
Income taxes paid
(183,979)
(497,441)
Net cash inflow from operating activities
1,795,500
1,173,129
Investing activities
Purchase of intangible assets
35,735
-
Purchase of tangible fixed assets
(64,418)
(58,815)
Proceeds from disposal of tangible fixed assets
183
-
Proceeds from disposal of investments
(189,208)
-
Repayment of loans
(130,771)
(144,128)
Interest received
17,675
20,090
Net cash used in investing activities
(330,804)
(182,853)
Financing activities
Repayment of borrowings
(681,691)
(773,718)
Repayment of bank loans
13,954
-
Payment of finance leases obligations
(13,854)
(13,018)
Dividends paid to equity shareholders
(560,815)
(511,115)
Dividends paid to non-controlling interests
(9,934)
-
0
Net cash used in financing activities
(1,252,340)
(1,297,851)
Net increase/(decrease) in cash and cash equivalents
212,356
(307,575)
Cash and cash equivalents at beginning of year
178,208
485,783
Cash and cash equivalents at end of year
390,564
178,208
FAWKES & REECE GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
- 15 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Investing activities
Proceeds on disposal of fixed asset investments
(189,208)
-
0
Dividends received
560,815
511,115
Net cash generated from investing activities
371,607
511,115
Financing activities
Net increase in borrowings
189,208
-
Dividends paid to equity shareholders
(560,815)
(511,115)
Net cash used in financing activities
(371,607)
(511,115)
Net increase in cash and cash equivalents
-
0
-
0
Cash and cash equivalents at beginning of year
100
100
Cash and cash equivalents at end of year
100
100
FAWKES & REECE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 16 -
1
Accounting policies
Company information

Fawkes & Reece Group Limited (“the company”) is a limited company domiciled and incorporated in England and Wales. The registered office is 68 Cornhill, London, EC3V 3QX.

The group consists of Fawkes & Reece Group Limited and all of its subsidiaries.

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 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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Fawkes & Reece Group Limited and all of its subsidiaries (ie entities that the g roup controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

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 g roup.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

1.3
Going concern

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.

1.4
Turnover

Turnover represents amounts receivable for recruitment services rendered net of VAT and trade discounts.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

FAWKES & REECE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 17 -
1.5
Intangible fixed assets - goodwill

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 5 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.

1.6
Tangible fixed assets

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

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:

Leasehold improvements
10 years lease period
Fixtures and fittings
Straight line basis over 5 years
Computers
Straight line basis over 5 years
Motor vehicles
Straight line basis over 4 years

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.

1.7
Fixed asset investments

Equity in vest ments 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.

I n the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities 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.

FAWKES & REECE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 18 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the g roup’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

In the parent c ompany financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of fixed assets

At each reporting period end 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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Cash at bank and in hand

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.

FAWKES & REECE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 19 -
1.10
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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 m ethod 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

FAWKES & REECE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 20 -

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future 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. 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

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 group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

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.

1.12
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current 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.

FAWKES & REECE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 21 -
Deferred tax

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.

1.14
Employee benefits

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.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

FAWKES & REECE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 22 -
2
Judgements and key sources of estimation uncertainty

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.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2025
2024
£
£
Turnover analysed by class of business
Sales - Recruitment services
65,676,376
59,827,266
2025
2024
£
£
Other revenue
Interest income
17,675
20,090

All turnover arose within the United Kingdom.

4
Operating profit
2025
2024
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
82,251
80,530
Profit on disposal of tangible fixed assets
(12)
-
Amortisation of intangible assets
384,192
531,136
Operating lease charges
541,356
471,132
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 group and company
-
-
Audit of the financial statements of the company's subsidiaries
40,681
31,999

The audit fees for the a udit of the financial statements of the group and company are borne by the company's subsidia ries.

FAWKES & REECE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 23 -
6
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Sales and administrative
119
115
-
-
Finance
13
9
-
-
Total
132
124
0
0

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
6,621,538
5,799,319
-
0
-
0
Social security costs
759,994
656,904
-
-
Pension costs
290,155
165,300
-
0
-
0
7,671,687
6,621,523
-
0
-
0
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
212,845
170,586
Company pension contributions to defined contribution schemes
20,193
7,847
233,038
178,433
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
130,872
137,206
Company pension contributions to defined contribution schemes
12,505
7,386
FAWKES & REECE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 24 -
8
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
14,610
20,090
Other interest income
3,065
-
Total income
17,675
20,090
2025
2024
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
14,610
20,090
9
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
82,651
140,079
Interest on invoice finance arrangements
482,805
586,242
565,456
726,321
Other finance costs:
Interest on finance leases and hire purchase contracts
4,356
5,192
Other interest
451
-
Total finance costs
570,263
731,513
10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
410,908
198,431
Deferred tax
Origination and reversal of timing differences
(4,622)
(6,431)
Total tax charge
406,286
192,000
FAWKES & REECE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
10
Taxation
(Continued)
- 25 -

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:

2025
2024
£
£
Profit before taxation
865,705
182,259
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
216,426
45,565
Tax effect of expenses that are not deductible in determining taxable profit
39,249
14,982
Unutilised tax losses carried forward
5,076
-
0
Permanent capital allowances in excess of depreciation
8,649
6,038
Amortisation on assets not qualifying for tax allowances
104,982
132,784
Deferred tax on capital allowances
(4,622)
(7,369)
Other
36,526
-
0
Taxation charge
406,286
192,000
11
Dividends
2025
2024
Recognised as distributions to equity holders:
£
£
Final paid
560,815
511,115
12
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2025
2024
Notes
£
£
In respect of:
Fixed asset investments
15
189,208
-
Recognised in:
Amounts written off investments
189,208
-

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

FAWKES & REECE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 26 -
13
Intangible fixed assets
Group
Goodwill
Negative goodwill
Total
£
£
£
Cost
At 1 April 2024
2,834,867
-
0
2,834,867
Additions
-
0
(35,735)
(35,735)
At 31 March 2025
2,834,867
(35,735)
2,799,132
Amortisation and impairment
At 1 April 2024
2,106,668
-
0
2,106,668
Amortisation charged for the year
419,927
(35,735)
384,192
At 31 March 2025
2,526,595
(35,735)
2,490,860
Carrying amount
At 31 March 2025
308,272
-
0
308,272
At 31 March 2024
728,199
-
0
728,199
The company had no intangible fixed assets at 31 March 2025 or 31 March 2024.
14
Tangible fixed assets
Group
Leasehold improvements
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2024
171,665
189,932
99,588
117,016
578,201
Additions
11,437
11,092
25,778
-
0
48,307
Business combinations
-
0
6,223
9,888
-
0
16,111
Disposals
-
0
(183)
-
0
-
0
(183)
At 31 March 2025
183,102
207,064
135,254
117,016
642,436
Depreciation and impairment
At 1 April 2024
121,509
136,111
56,967
57,377
371,964
Depreciation charged in the year
13,625
10,025
28,782
29,819
82,251
Eliminated in respect of disposals
-
0
(12)
-
0
-
0
(12)
At 31 March 2025
135,134
146,124
85,749
87,196
454,203
Carrying amount
At 31 March 2025
47,968
60,940
49,505
29,820
188,233
At 31 March 2024
50,156
53,821
42,621
59,639
206,237
FAWKES & REECE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
14
Tangible fixed assets
(Continued)
- 27 -
The company had no tangible fixed assets at 31 March 2025 or 31 March 2024.
15
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
6,198,909
6,198,909
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2024
6,198,909
Additions
189,208
Investments written off
(189,208)
At 31 March 2025
6,198,909
Carrying amount
At 31 March 2025
6,198,909
At 31 March 2024
6,198,909
16
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Fawkes and Reece Limited
England and Wales
Ordinary
100.00
Fawkes and Reece South Limited
England and Wales
Ordinary
100.00
Venture Contracts Recruitment Ltd (Previously known as Alltrade Contracts Limited)
England and Wales
Ordinary
100.00
Alltek Global Ltd
England and Wales
Ordinary
100.00
Fawkes & Reece North Limited
England and Wales
Ordinary
80.00
Venture Contracts Limited*
England and Wales
Ordinary
100.00

*Venture Contracts Limited was acquired on 1 October 2024. Subsequent to the year end, the company has been placed in liquidation.

FAWKES & REECE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 28 -
17
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
11,015,634
10,161,139
-
0
-
0
Corporation tax recoverable
191,636
147,501
-
0
-
0
Other debtors
2,290,447
1,526,964
999
999
Prepayments and accrued income
461,377
440,153
-
0
-
0
13,959,094
12,275,757
999
999
18
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans
20
13,954
-
0
-
0
-
0
Obligations under finance leases
18,210
18,210
-
0
-
0
Other borrowings
20
529,051
676,370
6,346,777
6,157,569
Trade creditors
355,846
548,194
-
0
-
0
Corporation tax payable
373,488
102,424
-
0
-
0
Other taxation and social security
1,048,869
731,836
-
-
Other creditors
8,775,657
7,360,189
-
0
-
0
Accruals and deferred income
1,299,448
855,360
-
0
-
0
12,414,523
10,292,583
6,346,777
6,157,569

At the balance sheet date, included in other creditors and other borrowings is an amount payable to Close Invoice Finance Limited of £7,140,929 (2024: £6,394,543). This amount is secured by an all asset debenture and a floating charge over the assets of the company. Included in other borrowings is a Coronavirus Business Interruption Loan of £195,727 (2024: £343,046). This amount is secured by an all asset debenture and a floating charge over the assets of the company. Included in other borrowings is a term loan of £333,324 (2024: £333,324). This amount is secured by an all asset debenture and a floating charge over the assets of the company.

19
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Obligations under finance leases
44,586
58,440
-
0
-
0
Other borrowings
20
86,403
620,775
-
0
-
0
130,989
679,215
-
-

Included in other borrowings is a Coronavirus Business Interruption Loan of £Nil (2024: £198,169). This amount is secured by an all asset debenture and a floating charge over the assets of the company. Included in other borrowings is a term loan of £86,403 (2024: £422,606). This amount is secured by an all asset debenture and a floating charge over the assets of the company.

FAWKES & REECE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 29 -
20
Loans and overdrafts
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank loans
13,954
-
0
-
0
-
0
Loans from group undertakings
-
0
-
0
6,346,777
6,157,569
Other loans
615,454
1,297,145
-
0
-
0
629,408
1,297,145
6,346,777
6,157,569
Payable within one year
543,005
676,370
6,346,777
6,157,569
Payable after one year
86,403
620,775
-
0
-
0

21
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2025
2024
Group
£
£
ACAs
1,521
6,143
The company has no deferred tax assets or liabilities.
Group
Company
2025
2025
Movements in the year:
£
£
Liability at 1 April 2024
6,143
-
Credit to profit or loss
(4,622)
-
Liability at 31 March 2025
1,521
-

22
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
290,155
165,300
FAWKES & REECE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
22
Retirement benefit schemes
(Continued)
- 30 -

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.

23
Share-based payment transactions

During the period ended 31 March 2025, the group and company had one share-based payment arrangement which is detailed below:

Group
Number of share options
Weighted average exercise price
2025
2024
2025
2024
Number
Number
£
£
Outstanding at 1 April 2024
252,500
233,500
-
1.05
Granted
-
34,500
-
1.05
Forfeited
-
(15,500)
-
1.05
Outstanding at 31 March 2025
252,500
252,500
-
1.05
Exercisable at 31 March 2025
-
-
-
-
Company
Number of share options
Weighted average exercise price
2025
2024
2025
2024
Number
Number
£
£
Outstanding at 1 April 2024
252,000
233,500
1.05
1.05
Granted
-
34,500
1.05
1.05
Forfeited
-
(15,500)
1.05
1.05
Outstanding at 31 March 2025
252,000
252,500
1.05
1.05
Exercisable at 31 March 2025
-
-
-
-

Liabilities and expenses

The options shall be exercised either immediately prior to any sale or flotation or as determined by the Board. The options shall lapse upon the earlier of the tenth anniversary of the date of grant, if the option holder ceases to be an employee or if any options are not exercised prior to any sale or flotation. There are no performance conditions attached to these shares.

The estimate d fair value of each share granted in the executive share plan is £1.05, on the assumption that the company will not be sold/floated in the forseeable future after which the options will lapse as per the conditions attached on the options issued.

FAWKES & REECE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 31 -
24
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
3,500,000
3,500,000
35,000
35,000
25
Operating lease commitments
Lessee

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:

Group
Company
2025
2024
2025
2024
£
£
£
£
Within one year
371,643
381,328
-
-
Between two and five years
876,317
998,582
-
-
In over five years
173,990
-
-
-
1,421,950
1,379,910
-
-
26
Related party transactions
Transactions with related parties

The company has taken advantage of the exemption available in FRS 102 (s33 "Related Party Disclosure"), whereby it has not disclosed transactions with any wholly owned subsidiary undertaking of the group.

At the balance sheet date, the balance due from the director, amounted to £574,408 (2024: £442,638). The balance is interest free, unsecured and repayable on demand.

The company paid a dividend of £560,815 (2024: £511,115) to the shareholder of the company.

At the balance sheet date the balance due from a connected company, amounted to £197,895 (2024: £185,441). The companies are connected by virtue of common control and director.

27
Controlling party

The ultimate controlling party is Mr R G Connolly.

FAWKES & REECE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 32 -
28
Cash generated from group operations
2025
2024
£
£
Profit/(loss) for the year after tax
459,419
(9,741)
Adjustments for:
Taxation charged
406,286
192,000
Finance costs
570,263
731,513
Investment income
(17,675)
(20,090)
Gain on disposal of tangible fixed assets
(12)
-
Amortisation and impairment of intangible assets
384,192
531,136
Depreciation and impairment of tangible fixed assets
82,251
80,530
Other gains and losses
189,208
-
Movements in working capital:
(Increase)/decrease in debtors
(1,508,431)
1,828,033
Increase/(decrease) in creditors
1,984,241
(931,298)
Cash generated from operations
2,549,742
2,402,083
29
Cash absorbed by operations - company
2025
2024
£
£
Profit for the year after tax
371,607
511,115
Adjustments for:
Investment income
(560,815)
(511,115)
Other gains and losses
189,208
-
Cash absorbed by operations
-
-
30
Analysis of changes in net debt - group
1 April 2024
Cash flows
31 March 2025
£
£
£
Cash at bank and in hand
178,208
212,356
390,564
Borrowings excluding overdrafts
(1,297,145)
667,737
(629,408)
Obligations under finance leases
(76,650)
13,854
(62,796)
(1,195,587)
893,947
(301,640)
FAWKES & REECE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 33 -
31
Analysis of changes in net debt - company
1 April 2024
Cash flows
31 March 2025
£
£
£
Cash at bank and in hand
100
-
100
Borrowings excluding overdrafts
(6,157,569)
(189,208)
(6,346,777)
(6,157,469)
(189,208)
(6,346,677)
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