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

The company’s principal activity continued to be that of offering a range of management consultancy services to public organisations and their partners in the sectors of corporate transformation, regeneration, construction, education, social care, and health.

The results for the year are set out on page 4.

We are a 21st-century consultancy for 21st-century challenges, aiming to deliver strong public services and thriving places so everyone can live a good life. The big missions of local government and its partners are our purpose. We work tirelessly to support public sector leaders to unlock a better future, so the future is better for all. We do this by working together to deliver prosperous places for good lives, moving the public sector from crisis to prevention, and raising the bar for transformation in public services.

In 2025, we experienced our fourth consecutive year of double-digit growth, with revenues up 36% from previous year – significantly ahead of our 3-year CAGR of 25%. Operating profit rose to £1.2m, demonstrating our investment strategy deployed in the prior year to accelerate future growth was successful. This is strong performance in a market facing headwinds from rising interest rates, inflation, budget pressures and ultimately expecting single-digital growth. We also continued to invest in our growth by expanding our leadership team and market reach, delivering over 119 projects for 55 different clients.

We continue cementing our reputation as the go-to Trusted Advisor in the sector by being active members of several established work-commissioning frameworks, where we know we are highly commended and sought after. We have again been recognised at the prestigious Management Consultancies Association Awards, Planning Awards and the Inside Housing Awards.

Our talent strategy focuses on finding the best, most capable, and diverse people, hiring exceptional individuals, providing contemporary learning and development opportunities for all our staff, and creating outstanding positive internal experiences to fulfil our team members’ personal and professional aspirations.

As part of our growth strategy, we have worked diligently in several strategic activities including:

1. Strengthening market positioning through consolidation of offering with pathways to growth

2. Enhance operational efficiently and resource management, including appointment of Resourcing & Commercials Manager

3. Continuing to invest in people strategy to support delivery at scale

We retained our ISO9001 and ISO14001 accreditations and membership of the United Nations Framework Convention on Climate Change (UNFCCC) Race to Zero and continue to take significant steps towards achieving carbon neutrality by 2030.

Our priorities for the coming year are to continue to grow sustainably, consolidate our position as a trusted transformation partner, strengthen our market offer through integrated services, invest in our people, and enhance business efficiency through improved governance and resource management. There will be a number of priorities for our clients over the next 12 months 36 months such as local government reorganisation so strengthening our market position and sharpening commercial focus will remain key.

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

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

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

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

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

Inner Circle Consulting Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 3 9 Bell Yard Mews, London, United Kingdom, SE1 3UY.

These financial statements have been prepared in accordance with Section 1A of FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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 it is probable will be recovered.

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:

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

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.

The company only has basic financial instruments measured at amortised cost, with no financial instruments classified as other, or basic financial instruments measured at fair value.

Equity instruments issued by the company 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 company.

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

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

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

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

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

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

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

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

The fair value of equity-settled share based payments to employees is determined at the date of grant and is expensed on a straight-line basis over the vesting period based on the company's estimate of shares or options which will eventually vest.

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 leases asset are consumed.

Restatement

During the year, the company reviewed the presentation of its expenses within the Statement of Income and Retained Earnings. As a result, certain administrative expenses have been reclassified to cost of sales, and the comparative figures have been adjusted accordingly. These changes affected presentation only and had no impact on the prior year’s profit or net assets.

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

The assets of the company are subject to fixed and floating charges registered to HSBC as security for borrowings.

The options outstanding at 31 March 2025 had an exercise price of £15.52 and a remaining contractual life of 4-5 years.

Included within other debtors is an amount of £87,891 (2024: £67,719 in other debtors) due from directors of the company.

During the year, the company made purchases of £182,081 (2024: £221,823) from companies in which close family relatives have an interest. At the year end balances owing to those companies were £5,160 (2024: £6,006). All transactions were at arms length.