The directors present the strategic report for the year ended 31 December 2024.
This strategic report presents an overview of the consolidated performance and strategic direction of “the Group”, being Harcus Parker Limited and its two subsidiaries:
Harcus Sinclair UK Limited
Harcus Sinclair Company Limited.
The Group experienced a year of significant operational progress in 2024, with turnover increasing by 26% to £9.64 million (2023: £7.77 million). This growth was driven by increased activity in its largest funded matters. The operating loss narrowed to £2.06 million (2023: £2.77 million), reflecting improved cost control and revenue growth.
Despite the improvement in operating performance, the Group reported a net loss of £11.52 million (2023: £9.07 million), primarily due to high finance costs of £9.5 million and a goodwill impairment of £0.56 million. The Group’s net liabilities increased to £42.78 million (2023: £31.26 million), although cash at bank improved to £3.39 million (2023: £1.55 million), supported by improved fee collections and financing activities.
The Group continues to focus on realising contingent fees through successful litigation outcomes. These contingent assets, while not recognised on the balance sheet, are expected to be significant and exceed the Group’s net liabilities.
The Group remains confident in its long-term strategy. It expects continued growth through the launch of new cases, expansion of its client base, and successful resolution of ongoing matters. The directors believe that the value of contingent assets will be realised over time, supporting the Group’s financial sustainability
The Group actively monitors and manages the following key risks:
Case Risk
As a litigation-focused firm, the Group's revenue is contingent on successful case outcomes. This is mitigated through careful case selection, diversification, and employing experienced legal professionals.
Reputational Risk
The Group is regulated by the Solicitors Regulation Authority and maintains high standards of client service and compliance.
Liquidity Risk
The Group manages liquidity through active cash flow forecasting and a financing facility with a specialist legal sector lender.
Key Personnel Risk
The Group's success depends on attracting and retaining top legal talent. Investment in training, development, and competitive remuneration supports this objective.
| 2024 | 2023 | Change |
Turnover | £9.64m | £7.77m | 24% |
Operating Loss | £2.06m | £2.77m | -26% |
Net Loss | £11.52m | £9.07m | 27% |
Cash at Bank | £3.39m | £1.55m | 119% |
Net Liabilities | £42.78m | £31.26m | 37% |
Employees | 60 | 52 | 15% |
Going concern
The financial statements have been prepared on a going concern basis, which assumes that the Group will continue in operational existence for the foreseeable future and will be able to meet its liabilities as they fall due.
As at 31 December 2024, the Group reported net liabilities of £42.78 million (2023: £31.26 million) and an operating loss of £2.06 million (2023: £2.77 million). A significant portion of the Group’s liabilities relates to a long-term financing facility provided by a specialist lender to the legal sector. The Group has funding in place until 20 December 2026 with the option to extend until 20 December 2029.
The directors have prepared detailed cash flow forecasts and projections for a period of at least 12 months from the date of approval of these financial statements. These forecasts include assumptions regarding the duration and funding of existing matters, as well as the continued availability of financing facilities.
The directors are confident in the Group’s ability to generate sufficient cash flows from its portfolio of funded legal cases and to manage its working capital requirements. Cash flow forecasts do not include assumptions of significant contingent fee income from the successful resolution of these matters, which represent upside to these forecasts.
After considering the Group’s case pipeline, funding arrangements, and cost management strategies, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
We have audited the financial statements of Harcus Parker Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
We obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation and landlord and tenant regulations.
We enquired of the director, reviewed correspondence with HMRC and reviewed director meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the director has in place to ensure compliance.
We gained an understanding of the controls that the director has in place to prevent and detect fraud. We enquired of the director about any incidences of fraud that had taken place during the accounting period.
The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: revenue recognition, related parties outside normal course of business, management override and compliance with debt covenants.
We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above.
We enquired of the director about actual and potential litigation and claims.
We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.
In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.
Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Other matters which we are required to address
The comparative figures are unaudited.
Use of our report
This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £11,519,521 (2023 - £9,881,764 loss).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
Harcus Parker Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 80 Strand, London, UK, WC2R 0DT.
The group consists of Harcus Parker Limited and all of its subsidiaries.
The financial statements have been prepared on a going concern basis, which assumes that the Group will continue in operational existence for the foreseeable future and will be able to meet its liabilities as they fall due.
As at 31 December 2024, the Group reported net liabilities of £42.78 million (2023: £31.26 million) and an operating loss of £2.06 million (2023: £2.77 million). A significant portion of the Group’s liabilities relates to a long-term financing facility provided by a specialist lender to the legal sector. The Group has funding in place until 20 December 2026. Subsequent to the balance sheet date the agreement with the specialist lender has been extended to 20 December 2027 with an option to extend until 20 December 2029. The new agreement also reflects a lower rate of interest on the loan.
The directors have prepared detailed cash flow forecasts and projections for a period of at least 12 months from the date of approval of these financial statements. These forecasts include assumptions regarding the duration and funding of existing matters, as well as the continued availability of financing facilities.
The directors are confident in the Group’s ability to generate sufficient cash flows from its portfolio of funded legal cases and to manage its working capital requirements. Cash flow forecasts do not include assumptions of significant contingent fee income from the successful resolution of these matters, which represent upside to these forecasts.
After considering the Group’s case pipeline, funding arrangements, and cost management strategies, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for a period of at least 12 months from the date of the approval of these financial statements. Accordingly, the financial statements have been prepared on a going concern basis.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary 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.
The consolidated group financial statements consist of the financial statements of the parent company Harcus Parker Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
Turnover is recognised at the fair value of the consideration received or receivable for goods and 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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Turnover represents the amounts recoverable for the legal services provided to clients, excluding value added tax, under contractual obligations which are performed gradually over time.
Damages Based Agreements (DBAs)
A large proportion of the legal services provided are group litigation and other commercial litigation services operated under a “No Win, No Fee” arrangement, whereby fees are earned only in the event of a successful claim outcome. Contracts with clients comprise a single distinct performance obligation, being the provision of services in pursuit of the successful settlement of a client's claim. Upon successful settlement, the performance obligations in the contract are satisfied. Unless partially funded (per below), turnover is only recognised when the claim has been successfully settled.
Some of these DBA matters are undertaken on a partially funded basis. The funded portion of the fees is recognised in line with the payment schedule and is not contingent on the successful outcome of the litigation.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
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.
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 leased asset are consumed.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The company determines the useful economic lives and residual values of tangible fixed assets based on historical experience, expected usage, and anticipated technological developments. These estimates are reviewed annually and adjusted if necessary. Changes in these assumptions could affect the depreciation charge for the year and the carrying amount of the assets.
Goodwill is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired, in accordance with FRS 102 Section 27. The impairment review requires management to estimate the recoverable amount of the cash-generating unit (CGU) to which goodwill is allocated. This involves forecasting future cash flows, selecting appropriate discount rates, and estimating long-term growth rates. These assumptions are inherently uncertain and could result in changes to the carrying value of goodwill.
Work-in-progress (WIP) represents unbilled legal services provided up to the reporting date. The valuation of WIP involves significant estimation, particularly in assessing the stage of completion of ongoing matters, the probability of successful recovery, and the expected billing value. These estimates are based on historical recovery rates, the nature of the legal matter, and discussions with fee earners. Given the bespoke nature of legal services and the potential for client disputes or billing adjustments, actual recoveries may differ from those estimated.
Revenue from long-term legal engagements is recognised in accordance with the stage of completion at the reporting date, as permitted under FRS 102 Section 23. This requires management to estimate the proportion of work completed and the expected total contract revenue.
The estimation of revenue involves significant uncertainty, particularly in cases where:
The outcome of the legal matter is contingent on future events (e.g. litigation or regulatory approval),
The scope of work is subject to change,
The timing and amount of recoverable fees are uncertain.
Management estimates the stage of completion based on time incurred, milestones achieved, or expert assessment of progress. These estimates are reviewed regularly and adjusted where necessary. However, due to the bespoke nature of legal services and the potential for client disputes or changes in scope, actual revenue recognised may differ materially from initial estimates.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 7 (2023 - 7).
On 1 April 2023 the applicable corporation tax rate increased from 19% to 25%. The prior year corporation tax rate was therefore pro-rated and was equal to 23.52%. The current period corporation tax rate is 25%.
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
At the balance sheet date there were approximately £23,281,407 (2023: £9,807,230) of unused tax losses for the group.
Note 18 provides further details of the potential deferred tax asset in respect of these losses.
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
The impairment losses in respect of financial assets are recognised in administrative expenses in the profit and loss account.
During the year ended 31 December 2024, the Group recognised an impairment charge of £559,284 (2023: £544,708) against goodwill. This impairment was the result of the conclusion of the legal matters that originally gave rise to the goodwill upon acquisition.
These matters, which formed the basis for the expected future economic benefits associated with the acquired business, have now been fully resolved. As no further income is anticipated to be generated from these concluded cases, the associated goodwill no longer holds recoverable value.
In accordance with FRS 102 Section 27, the Group assessed the carrying value of goodwill and determined that it should be fully written down. As a result, the carrying amount of goodwill at 31 December 2024 is £nil (2023: £559,284).
More information on impairment movements in the year is given in note 11.
On 20 December 2023, the Company entered into a facility agreement with a specialist legal sector lender to provide a term loan facility to fund working capital. The facility accrues interest at rates varying from 22.5% - 40% per annum. The repayment date of the loan is 20 December 2026 with the option to extend repayment until 20 December 2029.
Security and Guarantees
The facility is secured by a first-ranking fixed and floating charge over all assets of the Group.
Guarantees are provided by group undertakings.
Additional security includes assignments of litigation proceeds and rights under damages-based agreements.
The company has not recognised any deferred tax assets or liabilities in respect of tax losses carried forward or other temporary differences. This is due to the uncertainty surrounding the company’s ability to generate sufficient future taxable profits against which these losses could be utilised.
Given the company’s current financial position, which includes significant ongoing losses and a net liabilities position, the directors consider that it is not appropriate to recognise a deferred tax asset at this time. The recognition criteria under FRS 102 Section 29 Income Tax require that it must be probable that taxable profits will be available in the future against which the deductible temporary differences can be utilised. In the absence of such probability, no deferred tax asset has been recognised.
The position will be reviewed periodically and adjusted as appropriate should the company’s financial outlook improve.
Unrecognised deferred tax assets/(liabilities) at the year end were as follows:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Details of the company's subsidiaries at 31 December 2024 are as follows:
All subsidiaries are included in the consolidated accounts.
In accordance with the exemption permitted by FRS 102, Section 33.7A, the company has not disclosed the compensation of key management personnel separately, on the basis that the key management personnel are the directors of the company. The remuneration of directors is disclosed in Note 7 to these financial statements.
Company
At the reporting date, the company had the following balances with related parties:
Amounts payable to entities controlled by the company: £nil (2023: £551,081).
Amounts receivable from entities controlled by the company: £85,666 (2023: £nil).
Amounts receivable from directors in respect of advances: £50,000 (2023: £50,000).
All amounts are unsecured, interest-free, repayable on demand, and are expected to be settled in cash.
Group
At the reporting date, the group had an amount of £50,000 (2023: £50,000) receivable from directors in respect of advances. This balance is unsecured, interest-free, and repayable on demand.
At the balance sheet date, the company held a total of £514,902 (2023: £558,624) for the benefit of certain clients in a general client bank account. The corresponding liability, equal to the client account balance, has been netted off with the associated cash at bank in the balance sheet.