ACCOUNTS - Final Accounts

Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:

17 months ended 31 March 2024

Registered number: 09820383

FLEX LEGAL LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FLEX LEGAL LIMITED

COMPANY INFORMATION

Directors	M Bonsor
	N Eisenberg
	K Gaskell
	M J Hotson
	J E Moore
	N J West


Registered number	09820383


Registered office	Weston House
	242-246 High Holborn
	London
	WC1V 7EX


Independent auditor	MHA
	Statutory Auditor
	Building 4
	Foundation Park
	Roxborough Way
	Maidenhead
	SL6 3UD

FLEX LEGAL LIMITED

CONTENTS

	Page
Strategic report	1
Directors' report	2 - 3
Independent auditor's report	4 - 7
Statement of comprehensive income	8
Balance sheet	9
Statement of changes in equity	10
Notes to the financial statements	11 - 22

FLEX LEGAL LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2025

Company overview

The Company is a recruitment business that operates in the legal sector, focusing on the short-term placement of paralegals and lawyers in both in-house legal teams and law firms. The company also provides longer term legal trainees who are studying to qualify as lawyers via the Solicitors Qualifying Examination (SQE) route.
The directors consider the Company’s performance and year-end financial position to be satisfactory, given the challenging market and economic conditions.

Business review

This financial year saw a decrease in revenue, which was driven by the comparative year being a 17-month period, due to a change in financial year end. During the financial year, the Company continued to focus on expanding its client base and increasing placements in both the in house and private practice segments.
The Company’s social mobility trainee scheme continued to be an attractive proposition for clients who are passionate about creating a more diverse legal industry.
Despite the ongoing economic challenges, including market uncertainty, the Company has maintained a strong market presence.

Principal risks and uncertainties

As a recruitment business operating in the legal sector, the company faces several risks and uncertainties:

∙Economic Downturn: A decline in economic activity could reduce demand for temporary legal staffing as companies reduce costs by downsizing legal teams or handling more legal matters internally.

∙Regulatory Changes: Changes in employment law or regulation of the legal profession could impact the demand for temporary or contract-based legal professionals.

∙Competition: The legal recruitment sector is highly competitive, with many new entrants vying for market share.

∙Talent Supply: Ensuring a consistent pipeline of high-quality candidates is crucial to maintaining the Company’s competitive edge.

The Company has adopted various strategies to mitigate these risks and the directors consider that the present level of revenue can be sustained for the foreseeable future.

Key financial metrics for the year

∙Revenue: £10,517,971

∙Gross Profit: £4,328,205

∙Profit before tax: £106,132

∙Profit after tax: £83,973

This report was approved by the board and signed on its behalf.

................................................

M Bonsor

Director

Date: 5 November 2025

Page 1

FLEX LEGAL LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 MARCH 2025

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Company's financial statements and then apply them consistently;

∙make judgments 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 Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the Company is the provision of paralegal and lawyers to legal teams, on both short term on-demand and longer-term training placements.

Going concern

The directors are confident that the Company has adequate resources and will continue to trade for a period of at least twelve months from the date of approval of these financial statements. The directors are therefore adopting the going concern basis of accounting in preparing the financial statements.

Financial risk management

The Strategic Report outlines the key risks faced by the Company. The directors believe there are suitable strategies in place within the Company to ensure these risks are mitigated.

Results and dividends

The profit for the year, after taxation, amounted to £83,973 (2024 - £429,968).

A dividend of £1,075,204 was declared and paid during the year (2024 - £nil).

Directors

Page 2

FLEX LEGAL LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

The directors who served during the year were:

M Bonsor

N Eisenberg

K Gaskell

M J Hotson

J E Moore

N J West

Future developments

The Company will continue to focus on growing all offerings and expanding its reach via marketing, sales and account management. The directors believe this will lead to continued growth for the Company.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.
MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

................................................

M Bonsor

Director

Date: 5 November 2025

Page 3

FLEX LEGAL LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FLEX LEGAL LIMITED

Opinion

We have audited the financial statements of Flex Legal Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Company's affairs as at 31 March 2025 and of its 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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 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.

Page 4

FLEX LEGAL LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FLEX LEGAL LIMITED (CONTINUED)

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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its 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, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Page 5

FLEX LEGAL LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FLEX LEGAL LIMITED (CONTINUED)

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:

∙enquiry of management and those charged with governance around actual and potential litigation and claims;

∙performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;

∙reviewing minutes of meetings of those charged with governance; and

∙reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

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 for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.

Page 6

FLEX LEGAL LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FLEX LEGAL LIMITED (CONTINUED)

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.

Katharine Arnott Bsc FCA (Senior statutory auditor)

for and on behalf of

MHA

Statutory Auditor

Maidenhead, United Kingdom

11 November 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).

Page 7

FLEX LEGAL LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2025

	2025	17 months ended 31 March 2024
Note	£	£


Turnover		10,517,971	16,797,749
Cost of sales		(6,189,766)	(10,988,190)
Gross profit		4,328,205	5,809,559
Administrative expenses		(4,199,254)	(5,282,991)
Operating profit		128,951	526,568
Interest receivable and similar income	7	3,145	4,036
Interest payable and similar expenses	8	(25,964)	(73,642)
Profit before tax		106,132	456,962
Tax on profit	9	(22,159)	(26,994)
Profit for the financial year		83,973	429,968

Other comprehensive income for the year
Share based payment	-	151,752
Total comprehensive income for the year	83,973	581,720

The notes on pages 11 to 22 form part of these financial statements.

Page 8

FLEX LEGAL LIMITED

REGISTERED NUMBER: 09820383

BALANCE SHEET

AS AT 31 MARCH 2025

		2025		2024
Note		£		£

Fixed assets
Tangible assets	10		13,405		14,177
			13,405		14,177
Current assets
Debtors	11	1,964,178		1,802,158
Cash at bank and in hand	12	343,405		1,482,840
		2,307,583		3,284,998
Creditors: amounts falling due within one year	13	(1,095,219)		(1,078,640)
Net current assets			1,212,364		2,206,358
Total assets less current liabilities			1,225,769		2,220,535
Provisions for liabilities
Deferred tax	14	(9)		(3,544)
			(9)		(3,544)
Net assets			1,225,760		2,216,991

Capital and reserves
Called up share capital	15	3	3
Share premium account		840,280	840,280
Capital redemption reserve		1	1
Profit and loss account		385,476	1,376,707
		1,225,760	2,216,991

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

................................................

M Bonsor

Director

Date: 5 November 2025

The notes on pages 11 to 22 form part of these financial statements.

Page 9


		FLEX LEGAL LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2025

	Called up share capital	Share premium account	Capital redemption reserve	Other reserves	Profit and loss account	Total equity
	£	£	£	£	£	£
At 1 November 2022	3	816,883	1	50,908	744,079	1,611,874

Profit for the period	-	-	-	-	429,968	429,968
Share based payment	-	-	-	151,752	-	151,752
Shares issued during the period	-	23,397	-	-	-	23,397
Cancellation of share based payments	-	-	-	(202,660)	202,660	-

At 1 April 2024	3	840,280	1	-	1,376,707	2,216,991

Profit for the year	-	-	-	-	83,973	83,973
Dividends	-	-	-	-	(1,075,204)	(1,075,204)
At 31 March 2025	3	840,280	1	-	385,476	1,225,760

The notes on pages 11 to 22 form part of these financial statements.

Page 10

FLEX LEGAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

1.	General information

Flex Legal Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.
The Company has changed its year end from 31 October 2023 to 31 March in 2024 which resulted in the 17-months in comparative figures. The different periods presented in these financials are therefore not comparable.
The principal place of business is Weston House, 242-246 High Holborn, London, WC1V 7EX.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;

∙the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Mishcon de Reya LLP as at 31 March 2025 and these financial statements may be obtained from Companies House.

Page 11

FLEX LEGAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.4

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 12

FLEX LEGAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.7

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

				Fixtures and fittings	-	25%
				Computer equipment	-	33%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 13

FLEX LEGAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.9

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.12

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.13

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

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

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

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Page 14

FLEX LEGAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.13

Financial instruments (continued)

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

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 Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 15

FLEX LEGAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions which impact on the reported amount of assets and liabilities. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical judgements in applying accounting policies - There are no judgements (apart from those involving estimates) that have a significant effect on the amounts recognised in the Financial Statements.
Key accounting estimates and assumptions:
Allowance for doubtful debts
An allowance for doubtful debts is maintained for potential losses based on management's assessment of expected recoverability. The allowance for doubtful debts is reviewed periodically to assess the adequacy of the allowance.
Useful lives of fixed assets
Useful economic lives used by the Company in respect of tangible fixed assets are set out in the accounting policies. These estimates are the best estimate based on past experience and expected performance and are regularly reviewed to ensure they remain appropriate.

Fees payable to the Company's auditor for the audit of the Company's financial statements

13,000

18,000

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 16

FLEX LEGAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Wages and salaries	8,401,837	13,621,004
Social security costs	450,773	549,195
Cost of defined contribution scheme	64,237	118,479
	8,916,847	14,288,678

The average monthly number of employees, including the directors, during the year was as follows:

	2025	17 months ended 31 March 2024
	No.	No.

Administration	39	29
Trainees and consultants	57	37

	96	66

6.	Directors' remuneration
		2025	17 months ended 31 March 2024
		£	£

Directors' emoluments	313,170	248,540
Company contributions to defined contribution pension schemes	2,642	2,201
	315,812	250,741

	During the year retirement benefits were accruing to 2 directors (2024 - 3) in respect of defined contribution pension schemes.
	The highest paid director received remuneration of £223,289 (2024 - £143,036).
	The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,321 (2024 - £1,871).

Page 17

FLEX LEGAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

7.	Interest receivable
		2025	17 months ended 31 March 2024
		£	£

Other interest receivable

3,145

4,036

8.	Interest payable and similar expenses
		2025	17 months ended 31 March 2024
		£	£

Other loan interest payable	6,284	2,286
Other interest payable	19,680	71,356
	25,964	73,642

Corporation tax
Current tax on profits for the year	26,568	13,243
Adjustments in respect of previous periods	(874)	-
	25,694	13,243

	Deferred tax
	Origination and reversal of timing differences	(3,535)	13,751


	Tax on profit	22,159	26,994

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FLEX LEGAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

9.Taxation (continued)

Profit on ordinary activities before tax

106,132

456,962

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	26,533	114,241
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	2,408	59,435
Adjustments to tax charge in respect of prior periods	(874)	126
Enhanced costs claimable under capital allowances	-	(98)
Research and Development enhancement of expenditure	-	(108,596)
Due to changes in tax rates - deferred tax	(5,908)	(3,223)
Profits chargeable to tax at the lower rate	-	(171)
RDEC claim	-	(34,720)
Total tax charge for the year/period	22,159	26,994

Page 19

FLEX LEGAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

10.	Tangible fixed assets

	Fixtures and fittings	Computer equipment	Total
	£	£	£
Cost
At 1 April 2024	5,570	71,095	76,665
Additions	-	10,479	10,479
At 31 March 2025	5,570	81,574	87,144
Depreciation
At 1 April 2024	2,901	59,587	62,488
Charge for the year	1,393	9,858	11,251
At 31 March 2025	4,294	69,445	73,739
Net book value
At 31 March 2025	1,276	12,129	13,405
At 31 March 2024	2,669	11,508	14,177

11.

Debtors

					2025	2024
					£	£



Trade debtors	1,735,715	1,527,551
Amounts owed by group undertakings	19,622	19,622
Other debtors	2,160	28,160
Prepayments and accrued income	206,681	226,825
	1,964,178	1,802,158

12.	Cash and cash equivalents
		2025	2024
		£	£

	Cash at bank and in hand	343,405	1,482,840

Page 20

FLEX LEGAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

13.	Creditors: Amounts falling due within one year
		2025	2024
		£	£

Trade creditors	174,325	42,228
Corporation tax	26,447	13,117
Other taxation and social security	677,720	651,188
Other creditors	24,824	25,077
Accruals and deferred income	191,903	347,030
	1,095,219	1,078,640

14.	Deferred taxation

		2025
		£

	At beginning of year	(3,544)
	Charged to profit or loss	3,535
	At end of year	(9)

The provision for deferred taxation is made up as follows:
	2025	2024
	£	£

Accelerated capital allowances

(9)

(3,544)

15.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

41,571 (2024 - 41,571) Ordinary shares of £0.000069 each	3	3

Page 21

FLEX LEGAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

16.	Pension commitments

The Company operates a defined pension contribution scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents the contributions payable by the Company to the fund and amounted to £64,237 (2024: £103,901). The contributions payable at the period end amounted to £24,824 (2024 - £25,077) comprising both employer and employee contributions.

17.

Related party transactions

The Company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
During the period the Company provided services to Production Ready AI Ltd, a Company in which J E Moore (Director) has a majority shareholding and exercises significant influence. The sales made during the period, net of VAT, amounted to £161,904 (2024 - £171,934). At 31 March 2025 Production Ready AI Ltd owed the Company £15,658, inclusive of VAT, (2024 - £46,020) which was paid subsequent to the period end.
The Company considers the key management personnel to be the management team and the directors. The total benefits, including pension contributions and employer's national insurances of Key Management Personnel were £356,353 (2024 - £284,320).

18.	Controlling party

The largest and smallest group of undertakings for which group accounts have been drawn up is headed by Mishcon de Reya LLP. Copies of the group accounts can be obtained from Companies House or at the company's registered office; Africa House, 70 Kingsway, London, WC2B 6AH.
Mishcon de Reya LLP is controlled by its Members and therefore there is no single controlling party.

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