Company registration number: 10267288
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
Principal Activity
The principal activity of the company during the year continued to be that of the provision of specialist labour services to a variety of sectors. NWM Contracting Ltd is an operating company.
Annual results
Turnover has increased by 0.9% (2024: 47.8% increase) which is due to a change in the Sales Mix. The gross profit of £892k and gross margin of 1.9% (2024: £923k profit, and profit margin 2.0%) has decreased slightly. Administrative expenses are recharged based on the number of contractors paid.
Legislative Effects and Compliance
Compliance is a key focus of our business and that focus is relied upon by our clients who face the very difficult challenge of differentiating between the varying attitudes to this subject that are presented in the marketplace. The legislation changes initially marginalised CIS (self-employed) as a pay option, however CIS volumes have increased this year and we expect to continue to develop CIS sales opportunities. The umbrella model is the preferred option. The effect on sales volumes since the restriction on expenses claims from April 2016 for the umbrella model have been limited.
Clients continue producing Approved and Preferred Supplier Lists and require in-depth auditing of systems and processes to ensure compliance, this is a welcome development within an increasingly demanding market.
NWM continue to hold member status of the Freelancer and Contractor Services Association (FCSA). The FCSA is the UK’s leading membership body dedicated to raising standards and promoting supply chain compliance for the temporary labour market. To achieve this, we have passed a thorough audit of our procedures and processes to reinforce our compliance standards. We will be looking to continue the assessment process with the FCSA each year ensuring we achieve the highest compliance standards.
Sales and Marketing
To secure our position in the market we are constantly reviewing our marketing and sales profile. Our website is key and supports our current portfolio of products as it remains at the forefront of our marketing strategy. We have rebranded and launched a new web site which is more interactive, providing the workers with a more efficient level of service.
The web site is vital to the successful roll out and development of our products. We have an NWM employee benefit programme, to differentiate our product offering. This enables us to enhance both contractor on boarding and retention.
The website has to communicate with two communities our clients and our contractors. We have enhanced the contractor portal to support the Umbrella contractors. The objective being to make us easy to deal with.
Our overall strategy is to strengthen our profile within the digital world. Market sector diversification remains a key objective for the company; the diversification is supported by the additional product offering and the development of the company's digital foot print. Acquisition and retention of contractors will always remain at the heart of our corporate objectives and we will continue to survey our contractors and review our service offering to ensure that we meet our contractors' requirements.
Our Regionalised Sales team continue to strengthen current relationships and build new ones with a growing number of customers. Our contractors continue to take us to new clients as a result of the service they have received. The internal sales team focus on new client acquisitions and ensure that any new opportunities are maximised.
They are supported by an extremely responsive and proactive, office based, team, focussed on identifying and communicating opportunity.
We analyse and report results based upon regional and individual achievement ensuring a regular assessment of business profitability.
The principal activity of the company during the year continued to be that of the provision of specialist labour services to a variety of sectors. NWM Contracting Ltd is an operating company.
Annual results
Turnover has increased by 0.9% (2024: 47.8% increase) which is due to a change in the Sales Mix. The gross profit of £892k and gross margin of 1.9% (2024: £923k profit, and profit margin 2.0%) has decreased slightly. Administrative expenses are recharged based on the number of contractors paid.
Legislative Effects and Compliance
Compliance is a key focus of our business and that focus is relied upon by our clients who face the very difficult challenge of differentiating between the varying attitudes to this subject that are presented in the marketplace. The legislation changes initially marginalised CIS (self-employed) as a pay option, however CIS volumes have increased this year and we expect to continue to develop CIS sales opportunities. The umbrella model is the preferred option. The effect on sales volumes since the restriction on expenses claims from April 2016 for the umbrella model have been limited.
Clients continue producing Approved and Preferred Supplier Lists and require in-depth auditing of systems and processes to ensure compliance, this is a welcome development within an increasingly demanding market.
NWM continue to hold member status of the Freelancer and Contractor Services Association (FCSA). The FCSA is the UK’s leading membership body dedicated to raising standards and promoting supply chain compliance for the temporary labour market. To achieve this, we have passed a thorough audit of our procedures and processes to reinforce our compliance standards. We will be looking to continue the assessment process with the FCSA each year ensuring we achieve the highest compliance standards.
Sales and Marketing
To secure our position in the market we are constantly reviewing our marketing and sales profile. Our website is key and supports our current portfolio of products as it remains at the forefront of our marketing strategy. We have rebranded and launched a new web site which is more interactive, providing the workers with a more efficient level of service.
The web site is vital to the successful roll out and development of our products. We have an NWM employee benefit programme, to differentiate our product offering. This enables us to enhance both contractor on boarding and retention.
The website has to communicate with two communities our clients and our contractors. We have enhanced the contractor portal to support the Umbrella contractors. The objective being to make us easy to deal with.
Our overall strategy is to strengthen our profile within the digital world. Market sector diversification remains a key objective for the company; the diversification is supported by the additional product offering and the development of the company's digital foot print. Acquisition and retention of contractors will always remain at the heart of our corporate objectives and we will continue to survey our contractors and review our service offering to ensure that we meet our contractors' requirements.
Our Regionalised Sales team continue to strengthen current relationships and build new ones with a growing number of customers. Our contractors continue to take us to new clients as a result of the service they have received. The internal sales team focus on new client acquisitions and ensure that any new opportunities are maximised.
They are supported by an extremely responsive and proactive, office based, team, focussed on identifying and communicating opportunity.
We analyse and report results based upon regional and individual achievement ensuring a regular assessment of business profitability.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Staff
Our staff are a key component of our success at NWM.
NWM provides a working environment that employees enjoy working within, inspiring a hardworking attitude and a real feeling of involvement in producing improved results, along with reaping the rewards that come with those results.
We recognise that the delivery of the NWM service is entirely down to the dedication and loyalty of our staff. One of the keys to the continuing development of the service and to the growth of the company is investment in the training and development of the current staff along with a methodical and meticulous approach when selecting additional members of the team.
We have committed to providing on-going training, specific to the roles that individuals carry out, along with an encouragement to gain external professional qualifications consistent with individuals' aspirations and the business requirements.
Our staff are a key component of our success at NWM.
NWM provides a working environment that employees enjoy working within, inspiring a hardworking attitude and a real feeling of involvement in producing improved results, along with reaping the rewards that come with those results.
We recognise that the delivery of the NWM service is entirely down to the dedication and loyalty of our staff. One of the keys to the continuing development of the service and to the growth of the company is investment in the training and development of the current staff along with a methodical and meticulous approach when selecting additional members of the team.
We have committed to providing on-going training, specific to the roles that individuals carry out, along with an encouragement to gain external professional qualifications consistent with individuals' aspirations and the business requirements.
New Government legislation due to come in April 2026 will provide challenges, with NWM taking steps to minimise the effects of these changes by improving production efficiency and reviewing alternative pay models.
The financial KPI’s show an increase in turnover of 0.9% vs. last year (47.8% increase). Gross Margin decreased to 1.9% which is comparable to the prior year at 2.0%. Operating profit margin declined to 0.17% (2024: 0.43%).
Cash balance at 31 March 2025 is £182,830 (2024: £118,016). The Company shows net assets of £24,343 at 31 March 2025 (2024: £116,523).
We will focus our efforts in growing the business. Whilst we are focused on growth and new products we will maintain and improve our service levels. We will continue to monitor and analyse the service afforded to our contractors. This includes response time to answering incoming calls and making timely payments to our contractors. Referrals and contractors paid are monitored weekly and compared to prior week, prior year and budget. Customer service levels are monitored and constantly challenged to improve service delivery and contractor retention.
Cash balance at 31 March 2025 is £182,830 (2024: £118,016). The Company shows net assets of £24,343 at 31 March 2025 (2024: £116,523).
We will focus our efforts in growing the business. Whilst we are focused on growth and new products we will maintain and improve our service levels. We will continue to monitor and analyse the service afforded to our contractors. This includes response time to answering incoming calls and making timely payments to our contractors. Referrals and contractors paid are monitored weekly and compared to prior week, prior year and budget. Customer service levels are monitored and constantly challenged to improve service delivery and contractor retention.
The statement by the board of Directors describes how the responsibilities under S172 of the companies act 2006 have been approached. The Directors believe they have acted in good faith to promote the success of the group of the stakeholders in relation to matters set out in S172 of the act.
The stakeholders of the business include the employees, clients, and suppliers of the business.
All of our stakeholders are critical to the success of the business and so it is recognised that engagement with the stakeholders is an important aspect. In respect of Temporary workers, we regularly review the feedback provided by the individuals whether this be by phone and recorded for future developments or by our google reviews. We currently have a 4.7 google rating and this is monitored daily. In respect of the operational staff, we have regular meetings with the staff where the views and opinions are recorded, and we also adopt a similar approach with our clients where we get regular feedback.
The stakeholders of the business include the employees, clients, and suppliers of the business.
All of our stakeholders are critical to the success of the business and so it is recognised that engagement with the stakeholders is an important aspect. In respect of Temporary workers, we regularly review the feedback provided by the individuals whether this be by phone and recorded for future developments or by our google reviews. We currently have a 4.7 google rating and this is monitored daily. In respect of the operational staff, we have regular meetings with the staff where the views and opinions are recorded, and we also adopt a similar approach with our clients where we get regular feedback.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Our continued aim is to diversify into different market sectors, but to take with us our reactive service delivery that this sector requires.
This report was approved by the board and signed on its behalf.
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DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The director presents his report and the financial statements for the year ended 31 March 2025.
The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.
The profit for the year, after taxation, amounted to £57,820 (2024 - £149,973).
Particulars of dividends paid are detailed in note 9 of the accounts.
The director who served during the year was:
Please refer to strategic report.
The company actively monitors its financial risk and does not consider it necessary to hedge forecasted transactions
Please refer to strategic report.
Please refer to strategic report.
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DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the
company's policy wherever practicable to provide continuing employment under normal terms and conditions and to
provide training and career development and promotion to disabled employees wherever appropriate
The Company has assessed its greenhouse gas (GHG) emissions in accordance with Streamlined Energy and Carbon Reporting (SECR) framework disclosure rules. Based on this assessment, Scope 1 and Scope 2 emissions are not material to our business, financial condition, or results of operations with energy usage being less than 40,000kWH. Accordingly, disclosure of these emissions is not required under the SECR’s Final Rule on Climate-Related Disclosures. We will continue to monitor provide disclosure in future filings if circumstances change.
The company has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and
Directors' Report) Regulations 2013 to set out within the company's Strategic Report the Company's Strategic Report
Information Required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports)
Regulation 2008. This includes information that would have been included in the business review and details of the
principal risks and uncertainties.
The directors are aware of the matters set out in section 172(1)(a) to (f) (duty to promote the success of the company)
when performing their duties and do so appropriately
Directors' Report) Regulations 2013 to set out within the company's Strategic Report the Company's Strategic Report
Information Required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports)
Regulation 2008. This includes information that would have been included in the business review and details of the
principal risks and uncertainties.
The directors are aware of the matters set out in section 172(1)(a) to (f) (duty to promote the success of the company)
when performing their duties and do so appropriately
There have been no significant events affecting the Company since the year end.
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NWM CONTRACTING LTD
We have audited the financial statements of NWM Contracting Ltd (the 'Company') for the year ended 31 March 2025, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Cash Flows 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).
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.
In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The director is 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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NWM CONTRACTING LTD (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.
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 Director's Report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NWM CONTRACTING LTD (CONTINUED)
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:
∙The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation, and general regulations such as health and safety. There are no industry specific laws and regulations which would be deemed to have a significant impact on the financial statements. We assessed the extent of compliance with the appropriate laws and regulations as part of our procedures on the related financial statement items.
∙We understood how the Company is complying with the legal and regulatory frameworks by, making inquiries to management and those responsible for legal and compliance procedures.
∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations. The assessment did not identify any issues in this area.
∙We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
°Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
°Challenging assumptions and judgments made by management in its significant accounting estimates; and
°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
°Posting of unusual journals and complex transactions.
°Misappropriation of funds through fraudulent purchase ledger and payroll activity.
°Manipulation of amounts subject to significant judgment or estimate.
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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NWM CONTRACTING LTD (CONTINUED)
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 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
3000a Parkway
Hampshire
PO15 7FX
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STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2025
Page 10
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 22 form part of these financial statements.
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STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
Page 12
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
NWM Contracting Ltd is a private company limited by shares, registered in England and Wales. The address of its
registered office is disclosed on the company information page. This is also the trading address of the company
registered office is disclosed on the company information page. This is also the trading address of the company
2.Accounting policies
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:
The Director continually reviews cash and finances. Finances remain sufficient and having taken that into
consideration along with the expected performance over the foreseeable future, the Director considers that the
Company has sufficient resources to continue in operational existence for that time.
For this reason, the Director continues to adopt the going concern basis of accounting in preparing these
annual financial statements.
consideration along with the expected performance over the foreseeable future, the Director considers that the
Company has sufficient resources to continue in operational existence for that time.
For this reason, the Director continues to adopt the going concern basis of accounting in preparing these
annual financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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.
Basic 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.
that affect the amounts reported. These estimates and judgements are continually reviewed and are based on
experience and other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
In order for there to be a liability a worker has to complete a twelve week qualifying period. The director assumes
that all workers will qualify so takes the most prudent position.
that all workers will qualify so takes the most prudent position.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 17
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 18
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 19
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 20
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 21
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Profit and loss account
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independent administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £140,247 (2024 - £104,375). Contributions totalling £34,484 (2024 - £29,164) were payable to the fund at the reporting date and are included in creditors.
The ultimate controlling party is Mr G D Williams, the director.
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