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Registered number: 09264497










CARNALL FARRAR LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

 
CARNALL FARRAR LIMITED
 
 
COMPANY INFORMATION


Directors
H Farrar 
B Richardson 




Registered number
09264497



Registered office
1 Lyric Square

London

W6 0NB




Independent auditors
HaysMac LLP

10 Queen Street Place

London

EC4R 1AG





 
CARNALL FARRAR LIMITED
 

CONTENTS



Page
Strategic Report
 
 
1 - 3
Directors' Report
 
 
4 - 5
Independent Auditors' Report
 
 
6 - 9
Statement of Comprehensive Income
 
 
10 - 11
Statement of Financial Position
 
 
11
Statement of Changes in Equity
 
 
12
Statement of Cash Flows
 
 
13
Analysis of Net Debt
 
 
14
Notes to the Financial Statements
 
 
15 - 26


 
CARNALL FARRAR LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025

Principal activities and review of the business
 
Carnall Farrar (CF) are a leading consultancy with a purpose to make an enduring impact on health and healthcare. We work with leaders and frontline teams to improve health, transform healthcare, drive adoption of innovation and create value through investment.
Our consultancy serves the entire healthcare sector, from payors and providers of care, to life science companies, health tech and sector suppliers. We provide end-to-end services, spanning strategy to implementation, accelerated by data, digital and AI. We shape opinion through evidence-based thought leadership on the key issues affecting health. With unmatched ability to access health data, our consultants are a driving force for delivering positive and meaningful change.
Consulting excellence
We are committed to building an exceptional company that delivers consulting excellence to our clients. We are active members of the Management Consultancies Association (MCA), the representative body for the UK’s leading management consulting firms. In 2024/25 we maintained our Chartered Management Consultant (ChMC) Accreditation for our training and development programme, alongside individual accreditations achieved by the CF senior leadership team. We provide the opportunity for individual members of CF to become accredited during their tenure.
Recognising the quality of our work, and talented individuals in CF in 2024/25, we were awarded the following industry awards: 
• Ranked as a top consultancy by the Financial times with a Gold in Healthcare and Life Sciences
• Ranked as a top consultancy by Consultancy UK in both the UK and Middle East for 2024/25
• Shortlisted for 4 MCA awards and highly commended in 2; Best use of Thought Leadership and Social    value. 
• Won the 2024 HealthInvestor Award for Strategic Consultants of the year and a finalist for the 2025    awards. 
2024/25 highlights
We supported over 50 clients across over 100 projects including:
• Launching the Federated Data Platform (FDP) consortium, supporting trusts to standardise data and    adopt the latest innovations to improve patient care across NHS
• Partnering with national and regional healthcare organisations to drive strategic transformation and    deliver financial improvement, inform the NHS 10-Year Plan, and help regions restructure their operating  models for effective delivery
• Delivering transformative projects for leading life science and pharmaceutical companies, establishing    our expertise in health equity, data, and digital transformation, and building deep capabilities in bridging    scientific innovation with real-world implementation
• Extending our impact into the charitable sector, partnering with organisations to publish critical reports to  help shape national policy
• Building momentum in our newly established health investing practice, with a leading private sector    player partnering with us on a variety of projects, including commercial due diligence, baseline impact    assessment and reconfiguration of sites
We grew our team and strengthened our capabilities:
• Appointed Catherine Skilton, Managing Partner for Health Systems, to support growth and innovation    across Financial and Performance Improvement service lines
• Appointed Dr Joud Abduljawad, as Partner and Chief Medical Officer for the Middle East
• Appointed Vernon Baxter as Associate Partner for Health Investing, deepening our expertise in the    private healthcare market to complement our growth ambitions 
• Launched our subsidiary company in the Middle East, to achieve our ambition on supporting healthcare    on a global scale
• Invested in our corporate capabilities and infrastructure to prepare us for growth, including strengthening  of our People, Commercial and Business Development functions.
Page 1

 
CARNALL FARRAR LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025


Financial review

Overall turnover for the year was £11.3m (2024 - £15.1m). The company achieved a gross profit margin of 29.9% (2024 - 17.5%). The company reported a pre-tax profit of £234,531 (2024 - £213,811). The tax on profit on ordinary activities was £60,055 (2024 – £18,101), which resulted in a profit after taxation for the year of £174,476 (2024 - £195,710).

Key performance indicators
 
The company is managed with focus using a variety of KPls and core management information to monitor overall business performance. These include turnover, gross profit margin and operating profit margin.
Turnover: £11.3m (2024 - £15.1m)
Gross Profit Margin: 29.9% (2024 - 17.5%)
Operating Profit Margin:
 2.49% (2024 - 2%)
Cash: £701,618 overdraft (2024 - £393,774)
Net Assets: £985,363 (2024 - £1,280,887)
Headline turnover has declined since 2024 as part of a deliberate strategy to prioritise revenue generation through our own workforce rather than subcontractors. This approach has driven an improvement in gross profit margin and continues to be executed throughout 2025/26.

Risk management

The company has an established, structured approach to risk management. CF is exposed to commercial, operational and financial risks which the company seeks to mitigate through its management policies in a cost effective manner.
Commercial risk
CF has focused on diversification into new sectors of the health market, and new geographies, to reduce our exposure to a single market, however it is also recognised that building new business lines is in itself a risk to the company, particularly in the early years of investments.
Financial risk
The company aims to hold, as a minimum, 2 months working capital at any one time to reduce the liquidity risk of the company not meeting its liabilities and obligations. Cash flow and debtors are reviewed frequently.
Operational risk
The company outsources the provision of all IT systems to cloud-based, established, reputable providers such that operations can continue from any location with an internet connection.
Political risk
A significant proportion of revenue is generated from the provision of services to the public sector, which is subject to political influence, therefore, the company has successfully focused on diversification and securing more revenues from other markets. This trend will continue in line with the company strategy. Within the public sector, services are adapted to focus on areas of key demand.

Page 2

 
CARNALL FARRAR LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025

Environmental Impact
 
CF is a certified carbon neutral organisation and has worked with Carbon Neutral Britain to reduce emissions from sources within our control and to offset any remaining footprint. Staff are supported to reduce their own personal footprints by collectively building knowledge and promoting initiatives which support sustainable lifestyles. Through client services opportunities to reduce environmental impact are continuously considered and innovative approaches are adopted.


This report was approved by the board on 22 December 2025 and signed on its behalf.


H Farrar
Director

Page 3

 
CARNALL FARRAR 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 judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £174,476 (2024 - £195,710).

Dividends totalling £420,00 were declared and paid during the year (2024 - £405,436).

Directors

H Farrar 
B Richardson 
B Evans (resigned 30 June 2024)

Future developments

The strategy moving forward is to keep diversifying, and we expect in future years for the private sector to contribute at least 30% of our gross margin, and to source a proportion of our revenues from international clients.

Page 4

 
CARNALL FARRAR LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025

Disclosure of information to auditors

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 auditors are 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 auditors are aware of that information.

Post balance sheet events

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

Auditors

The auditorsHaysMac LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 22 December 2025 and signed on its behalf.
 





................................................
H Farrar
Director

Page 5

 
CARNALL FARRAR LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARNALL FARRAR LIMITED
 

Opinion


We have audited the financial statements of Carnall Farrar Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the notes to the financial statements, including a summary of significant accounting policiesThe 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 Auditors' 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 6

 
CARNALL FARRAR LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARNALL FARRAR LIMITED (CONTINUED)


Other information


The directors are responsible for the other information. The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. 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 4, 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 7

 
CARNALL FARRAR LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARNALL FARRAR LIMITED (CONTINUED)


Auditors' 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 Auditors' 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:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to regulatory requirements for the consultancy business, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, corporation tax, payroll tax and sales tax.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls),and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:
• Discussions with management including consideration of known or suspected instances of non-compliance  with laws and regulation and fraud;
•  Evaluating management’s controls designed to prevent and detect irregularities; 
• Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
• Challenging assumptions and judgements made by management in their critical accounting estimates


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 Auditors' Report.


Page 8

 
CARNALL FARRAR LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARNALL FARRAR 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 2006Our 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 Auditors' 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.




David Cox (Senior Statutory Auditor)
  
for and on behalf of
HaysMac LLP
 
Statutory Auditors
  
10 Queen Street Place
London
EC4R 1AG

22 December 2025
Page 9

 
CARNALL FARRAR LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025

2025
2024
Note
£
£

  

Turnover
 4 
11,277,196
15,076,463

Cost of sales
  
(7,905,755)
(12,432,743)

Gross profit
  
3,371,441
2,643,720

Administrative expenses
  
(3,090,964)
(2,381,906)

Operating profit
 5 
280,477
261,814

Interest receivable and similar income
  
5,350
22,566

Interest payable and similar expenses
  
(51,296)
(70,569)

Profit before tax
  
234,531
213,811

Tax on profit
 9 
(60,055)
(18,101)

Profit for the financial year
  
174,476
195,710

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 15 to 26 form part of these financial statements.

Page 10

 
CARNALL FARRAR LIMITED
 

STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025

2025
2024
Note
£
£

Fixed assets
  

Intangible assets
 11 
325,262
482,833

Tangible assets
 12 
85,250
55,523

Current assets
  

Debtors: amounts falling due within one year
 13 
3,370,065
4,474,450

Cash at bank and in hand
 14 
134
393,774

  
3,370,199
4,868,224

Creditors: amounts falling due within one year
 15 
(2,566,393)
(3,733,572)

Net current assets
  
 
 
803,806
 
 
1,134,652

Total assets less current liabilities
  
1,214,318
1,673,008

Creditors: amounts falling due after more than one year
 16 
(211,748)
(379,048)

Provisions for liabilities
  

Deferred tax
 18 
(17,207)
(13,073)

  
 
 
(17,207)
 
 
(13,073)

Net assets
  
985,363
1,280,887


Capital and reserves
  

Called up share capital 
 19 
2
2

Share premium account
 20 
24,975
24,975

Capital redemption reserve
 20 
1
1

Profit and loss account
 20 
960,385
1,255,909

  
985,363
1,280,887


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 December 2025.



H Farrar
Director

The notes on pages 15 to 26 form part of these financial statements.

Page 11

 
CARNALL FARRAR LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025


Share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 April 2023
2
24,975
1
1,465,635
1,490,613



Profit for the year
-
-
-
195,710
195,710

Dividends
-
-
-
(405,436)
(405,436)



At 1 April 2024
2
24,975
1
1,255,909
1,280,887



Profit for the year
-
-
-
174,476
174,476

Dividends
-
-
-
(420,000)
(420,000)

Purchase of own shares
-
-
-
(50,000)
(50,000)


At 31 March 2025
2
24,975
1
960,385
985,363


The notes on pages 15 to 26 form part of these financial statements.

Page 12

 
CARNALL FARRAR LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025

2025
2024
£
£

Cash flows from operating activities

Profit for the financial year
174,476
195,710

Adjustments for:

Amortisation of intangible assets
157,571
108,395

Depreciation of tangible assets
52,118
55,869

Interest paid
51,296
70,569

Interest received
(5,350)
(22,566)

Taxation charge
60,055
18,101

Decrease/(increase) in debtors
802,451
(2,782,142)

Decrease in creditors
(1,878,970)
(3,469,624)

Corporation tax received/(paid)
-
(142,496)

Net cash used in operating activities

(586,353)
(5,968,184)


Cash flows used in investing activities

Purchase of intangible fixed assets
-
(591,228)

Purchase of tangible fixed assets
(81,844)
(26,859)

Interest received
5,350
22,566

Net cash used in investing activities

(76,494)
(595,521)

Cash flows from financing activities

Repayment of other loans
(157,262)
(141,443)

Dividends paid
(173,987)
(405,436)

Purchase of own shares
(50,000)
-

Interest paid
(51,296)
(70,569)

Net cash used in financing activities
(432,545)
(617,448)

Net decrease in cash and cash equivalents
(1,095,392)
(7,181,153)

Cash and cash equivalents at beginning of year
393,774
7,574,927

Cash and cash equivalents at the end of year
(701,618)
393,774


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
134
393,774

Bank overdrafts
(701,752)
-

(701,618)
393,774


Page 13

 
CARNALL FARRAR LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2025




At 1 April 2024
Cash flows
At 31 March 2025
£

£

£

Cash at bank and in hand

393,774

(393,640)

134

Bank overdrafts

-

(701,752)

(701,752)

Debt due after 1 year

(379,048)

167,300

(211,748)

Debt due within 1 year

(198,367)

(10,651)

(209,018)


(183,641)
(938,743)
(1,122,384)

The notes on pages 15 to 26 form part of these financial statements.

Page 14

 
CARNALL FARRAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

1.


General information

Carnall Farrar Limited is a private company limited by shares and registered in England and Wales. The company registration number is 09264497 and registered office is 1 Lyric Square, London, W6 ONB.
The principal activity of the company is that of consultancy services.
The financial statements are presented in Sterling (£).

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 judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors have prepared financial projections for the period to December 2026.
Based on what is known at this time and based upon the forecast information available, the Directors believe it appropriate to prepare the financial statements on a going concern basis.

 
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.

Page 15

 
CARNALL FARRAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Government grants

Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
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 Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
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 reporting 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 reporting 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 reporting date.


Page 16

 
CARNALL FARRAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.8

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.9

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.

The estimated useful lives range as follows:

Office equipment
-
3 - 4 years

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.

  
2.10

Research and development

Research and development expenditure is written off to the profit and loss account in the year in which it is incurred.

 
2.11

Debtors

Short term debtors are measured at transaction price, less any impairment.

 
2.12

Cash

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

 
2.13

Creditors

Short term creditors are measured at the transaction price.

Page 17

 
CARNALL FARRAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.14

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.

 
2.15

Financial instruments

Financial instruments are recognised in the Company's Statement of Financial Position 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.

 
2.16

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.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

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. Although these estimates are based on management's best knowledge of the amount, events or actions, actual results ultimately may differ from those estimates. The directors do not consider there to be critical estimates and judgement applicable to the financial statements.

Page 18

 
CARNALL FARRAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

4.


Turnover

An analysis of turnover by class of business is as follows:


2025
2024
£
£

Income
11,277,196
15,076,463


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2025
2024
£
£

Other operating lease rentals
416,488
357,199


6.


Auditors' remuneration

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


2025
2024
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
24,500
22,750

7.


Employees

2025
2024
£
£

Wages and salaries
5,862,419
5,638,073

Social security costs
522,547
713,300

Cost of defined contribution scheme
140,066
367,077

6,525,032
6,718,450


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


        2025
        2024
            No.
            No.







Employees
67
78

Page 19

 
CARNALL FARRAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

8.


Directors' remuneration

2025
2024
£
£

Directors' emoluments
1,089,115
1,296,424

Company contributions to defined contribution pension schemes
22,500
38,667

1,111,615
1,335,091


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 £474,925 (2024 - £457,280).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £10,000 (2024 - £10,000).

The directors are considered to be the key management personnel of the company and their remuneration totals £1,111,615 (2024: £1,335,091).


9.


Taxation


2025
2024
£
£

Corporation tax


Current tax on profits for the year
55,921
51,704

Adjustments in respect of previous periods
-
(34,446)


Total current tax
55,921
17,258

Deferred tax


Origination and reversal of timing differences
4,134
843


Taxation on profit on ordinary activities
60,055
18,101
Page 20

 
CARNALL FARRAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the same as (2024 - higher than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:

2025
2024
£
£


Profit on ordinary activities before tax
234,531
213,811


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
58,632
53,453

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
659
6,347

Capital allowances for year in excess of depreciation
(2,998)
(7,253)

Adjustments to tax charge in respect of prior periods
-
(34,446)

Deferred tax charge
4,134
-

Marginal relief
(372)
-

Total tax charge for the year
60,055
18,101


10.


Dividends

2025
2024
£
£

Ordinary Shares


Dividends
420,000
405,436

Page 21

 
CARNALL FARRAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

11.


Intangible assets




Computer software

£



Cost


At 1 April 2024
770,026



At 31 March 2025

770,026



Amortisation


At 1 April 2024
287,193


Charge for the year on owned assets
157,571



At 31 March 2025

444,764



Net book value



At 31 March 2025
325,262



At 31 March 2024
482,833



Page 22

 
CARNALL FARRAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

12.


Tangible fixed assets





Office equipment

£



Cost or valuation


At 1 April 2024
439,192


Additions
81,844



At 31 March 2025

521,036



Depreciation


At 1 April 2024
383,669


Charge for the year on owned assets
52,117



At 31 March 2025

435,786



Net book value



At 31 March 2025
85,250



At 31 March 2024
55,523


13.


Debtors

2025
2024
£
£


Trade debtors
1,573,185
3,447,391

Other debtors
160,082
385,489

Prepayments and accrued income
1,636,798
641,570

3,370,065
4,474,450


Included within other debtors due within one year are loans to directors totalling £nil (2024: £244,177).


14.


Cash

2025
2024
£
£



Cash at bank and in hand
134
393,774

Page 23

 
CARNALL FARRAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

15.


Creditors: amounts falling due within one year

2025
2024
£
£

Bank overdrafts
701,752
-

Trade creditors
458,553
722,913

Other taxation and social security
842,925
613,199

Other creditors
53,751
264,074

Other loans
208,405
198,367

Accruals and deferred income
301,007
1,935,019

2,566,393
3,733,572



16.


Creditors: amounts falling due after more than one year

2025
2024
£
£

Other loans
211,748
379,048


All loans in issue are government backed loans, and therefore do not have any security or covenants attached to them.  Two loans carry an interest rate per annum of 9.40%, one has a rate of 9.05% and the fourth loan has interest charged at 12.45%.

Page 24

 
CARNALL FARRAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

17.


Loans


Analysis of the maturity of loans is given below:


2025
2024
£
£

Amounts falling due within one year

Other loans
208,405
198,367

Amounts falling due 1-2 years

Other loans
211,748
198,366

Amounts falling due 2-5 years

Other loans
-
180,682

420,153
577,415



18.


Deferred taxation




2025
2024


£

£






At beginning of year
(13,073)
(12,230)


Charged to profit or loss
(4,134)
(843)



At end of year
(17,207)
(13,073)

The provision for deferred taxation is made up as follows:

2025
2024
£
£


Fixed asset timing differences
(17,207)
(13,073)


19.


Share capital

2025
2024
£
£
Allotted, called up and fully paid



2 (2024 - 2) Ordinary Shares shares of £1.00 each
2
2


Page 25

 
CARNALL FARRAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

20.


Reserves

Share premium account

The share premium account is made up of capital injected in the company by shareholders in excess of the nominal value of shares.

Capital redemption reserve

The reserve is the balance of shares bought back by the company.

Profit and loss account

The profit and loss account is the cumulative results for the company generated over the years less any dividends paid.


21.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £410,753 (2024 - £367,077). Contributions totalling £38,210 (2024 - £42,354) were payable to the fund at the reporting date and are included in creditors.


22.


Commitments under operating leases

At 31 March 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2025
2024
£
£


Not later than 1 year
479,474
343,560

Later than 1 year and not later than 5 years
198,353
57,260

677,827
400,820


23.


Post balance sheet events

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


24.


Controlling party

The company does not consider there to be one overall controlling party.
Page 26