The directors present the strategic report of the company and the group for the year ended 31 March 2025.
The Group delivered a strong and resilient financial performance during the year, with turnover increasing by 11%, to £31,767,314 (2024: £28,576,569).
Growth in turnover, reflects the sustained demand across core practice areas, disciplined pricing for private client work and effective management of Work In Progress (WIP).
Operating profit remained robust driven primarily by private client work, despite a challenging environment. This was supported by strong utilisation rates and careful cost control, especially given the internal pressures on rising staff, property, and technology costs.
Cash flow from operating activities remained strong, reflecting improved billing discipline and continued focus on work in progress management.
During the year, the Group made targeted investments in people, training, systems, group office infrastructure and compliance, all aimed at supporting long-term growth, operational resilience and regulatory compliance.
Turnover and Headlines Figures
The group's turnover over the last five years is set out as below:
Financial Year Turnover Profit Before Tax
2021 £24,669,681 £1,486,775
2022 £25,601,706 £1,754,820
2023 £26,757,884 £1,712,657
2024 £28,576,569 £1,793,058
2025 £31,767,314 £2,913,204
Summary of the headline financial figures is as follows:
Turnover Increase of 11% to £31.767m (2024: £28.577m).
Operating profit Increased to £2.694m (2024: £1.752m).
Interest payable £352k (2024: £430k).
Profit after tax £2.159m (2024: £1.326m).
Operational costs increased by 8% to £29.073m (2024: £26.825m).
Capital expenditure increased by 171% to £550k (2024: £202k).
Unbilled Work In Progress (WIP) at the year-end amounted to £16.100m (2024: £16.875m)*.
*The WIP figure excludes WIP on Conditional Fee Arrangement cases.
The group continues to generate significant cash from operations.
The Group has continued to focus on its business objectives by critically reviewing its policies, procedures, cost structure and revenue generation, ensuring sustained service quality, revenue growth and profitability.
Operational Highlights
In summary, the group has focused on the following, during the year ended 31 March 2025:
A Shift To High Value Private Client Legal Work
A core element of the Group’s strategy has been the continued repositioning of its revenue mix away from lower-value matters towards more complex, higher-value private client legal services, including group actions and higher-value litigation.
During the year, the Group enhanced both the quality and volume of private client work, particularly in Clinical Negligence, Family, Inquests, Inquiries, Litigation and Wills and Probate.
Rationalisation Of Operations
The Company undertook a rationalisation of its office portfolio during the year to reduce overhead costs and enhance operational efficiency. This included the decision not to extend the lease of its Dalston office beyond June 2026, alongside the consolidation of operations at its Head Office in the City of London.
To support this strategy, the Company secured an additional floor comprising over one hundred workstations at its Head Office at Sackville House, 143–149 Fenchurch Street, London, EC3M 6BL, enabling improved utilisation of space and more efficient operational management.
Company Borrowing
The Company continued to reduce its borrowings with Clydesdale Bank during the year, reflecting prudent financial management and strong operating cash flows.
Maintaining Quality Marks:
Accreditation
The Company continues to hold a comprehensive portfolio of independently audited accreditations or standards, reflecting the group’s ongoing commitment to excellence in people management, information security, operational resilience, accessibility and regulated legal practice.
People, Culture & Inclusion
Investors in People – Gold: Accredited, recognising high standards in leadership, staff development, engagement and organisational culture.
Disability Confident Employer: Demonstrating an ongoing commitment to inclusive recruitment, retention and workplace practices.
Flower Scheme – Active Member: Supporting individuals with hidden disabilities and reinforcing the firm’s focus on accessibility and client care.
Information Security & Business Resilience
The Company continued to manage IT and information security risks effectively across the group and all subsidiary companies, through adherence to internationally recognised standards. These certifications demonstrate robust controls relating to data protection, confidentiality, cyber security, privacy, governance and business continuity.
Cyber Essentials Plus – Accreditation
ISO 27001:2022 – Information Security Management
ISO 27701:2019 – Privacy Information Management
ISO 22301:2019 – Business Continuity Management
ISO 31000 – Risk Management
ISO 9001 – Quality Management System
Legal Practice Accreditations
Lexcel (Law Society Legal Practice Quality Mark): The Company continues to hold Lexcel accreditation, independently assessed by the Law Society, demonstrating excellence in practice management, client care, risk management and regulatory compliance.
Law Society Practice Area Accreditations
The group continues to hold multiple specialist accreditations, reflecting recognised expertise and quality standards across key practice areas including:
Children Law
Criminal Litigation
Family Law
Family Law (Advanced)
Immigration (Level 2)
Legal 500
The Legal 500 is a leading independent legal directory, relied upon by clients and organisations worldwide for its rigorous, evidence-based assessment of law firms, grounded in peer review and extensive client feedback.
In the Legal 500 UK 2025, Duncan Lewis Solicitors was recommended in 25 practice areas nationwide and secured six Top-Tier (Tier 1) rankings, including Immigration, Family and Childcare, and Social Housing, highlighting its strength in high-impact and publicly important areas of law. The firm is described by The Legal 500 as “a go-to firm”, reflecting its reputation among clients and peers alike.
A particular highlight is the firm’s continued Tier 1 status for Immigration across London, the South East, the West Midlands and Wales. The guide praised the team as “one of the premier immigration firms”, noted for standing “head and shoulders above the competition” on complex human trafficking and human rights matters.
The firm also recorded strong upward momentum, with Criminal Law (South East) progressing from Tier 3 to Tier 2 and Administrative and Public Law rising to Tier 2, recognised for its strategic litigation capability across immigration, public and human rights law.
In addition, the firm achieved “Firm to Watch” status for Clinical Negligence (London) and retained “Firm to Watch” recognition for Family (Manchester) for a second consecutive year.
Overall, 83 lawyers were ranked, achieving a total of 159 individual rankings, including 52 new entries. More than 60 lawyers were referenced by name in the commentary, evidencing the firm’s exceptional depth of talent across its 11 offices nationwide.
Chambers & Partners
Duncan Lewis Solicitors continued to be recognised as one of the UK’s leading law firms in the Chambers & Partners 2025 Guide, with nationwide rankings across seven key practice areas, including Family and Matrimonial, Crime, Administrative and Public Law, Civil Liberties and Human Rights, Immigration: Human Rights, Asylum and Deportation, Social Housing, and Public Law Children.
The firm maintained all existing rankings, demonstrating consistency, resilience and sustained excellence, while also securing new individual entries and departmental progression. Notably, the Social Housing: Tenants (UK-wide) team was promoted to Band 2, reflecting its depth of expertise across the full spectrum of housing matters.
In total, seven departments are recognised, supported by 15 individual rankings shared across 13 lawyers, reinforcing the firm’s strong bench strength. The Crime department retained its Band 1 ranking in the Thames Valley, continuing to be recognised as a leading force in serious and complex criminal work.
Chambers referees consistently praise the firm’s lawyers for their exceptionally high standards of client care, commitment to justice, and ability to handle complex, sensitive matters without losing compassion for clients.
Industry Awards
Further highlights include wins or commendations with:
Lexis Nexis Family Law Awards 2024 - Winner of the Family Law Firm of the Year in London
Law Firm of the Year – Lexis Nexis Awards 2024
Outstanding Case of the Year – Modern Law Awards 2024
Pro-Bono Team of the Year – Modern Law Awards 2024
Immigration & Asylum
immigration (Advanced)
Investment In Talent, Culture and Marketing Capacity
The Group continued to invest in leadership roles, external recruitment and internal promotion, alongside strengthening organisational culture to support client delivery and competitive positioning. The Company also maintained significant investment in staff training, development and Law Society Panel Accreditation.
Business Process Outsourcing (BPO)
To enhance operational efficiency and focus internal resources on core legal service delivery, the Company continued to outsource its administrative function across the Group, including Accounts, Human Resources, IT Support, Software Development, Case Management Assistance, Document Processing, and Billing. These arrangements are aligned with the strategic objective of optimising cost structures and leveraging specialist capabilities.
Additional office space and investment into office infrastructure allowed the group to expand its BPO operations by recruiting and training a team of 30 assistants in drafting legal bills.
All BPO arrangements are governed by formal contracts, service level agreements and data protection controls, and are subject to ongoing performance and risk review.
Legal Casework Assistants
The Company utilises legal caseworker assistants within the Group to support the efficient delivery of legal services and to enable fee earners to focus on higher-value legal work. These activities are limited to workflow/process driven and administrative legal tasks and operate under the supervision of qualified solicitors, in accordance with the regulatory requirements.
These arrangements are governed by formal contracts, service level agreements and data protection controls and are subject to ongoing performance and risk review.
Technology and Process Investment
During the year, the Group made strategic investment in technology consolidation and infrastructure to improve case handling efficiency. This included investment in office space and infrastructure to establish a secure offsite data centre.
The Company also continued to develop its case management, HR, risk and compliance systems, further streamlining operations and improving efficiency. In addition, collaboration with external providers continued to strengthen IT infrastructure and enhance cyber security resilience.
The Board recognises that effective risk management is fundamental to the Group’s ongoing success. The process of risk acceptance and risk management is addressed through a comprehensive framework of processes, procedures and internal controls.
The Group maintains an in-house Risk and Compliance Team led by experienced solicitors. All policies are subject to Board approval and ongoing review by senior management.
The principal risk and uncertainties facing the business include:
Regulatory and Compliance Risk
The Company operates in a highly regulated environment and is subject to oversight by the Solicitors Regulation Authority (SRA). Failure to comply with regulatory requirements could result to in financial penalties, reputational damage or operational restrictions. The risk is mitigated through robust governance arrangements, internal controls, regulatory training and, where appropriate, external compliance support.
Professional Indemnity Risk
Exposure to professional negligence claims is inherit in legal practice. This risk is mitigated through the maintenance of comprehensive professional indemnity insurance, robust quality assurance procedures, regular file reviews and strong culture of professional standards and supervision.
Talent, Attraction and Retention
The ability to recruit and retain high-quality legal and business services professionals remains critical to the Group’s success. The Group seeks to mitigate this risk through competitive remuneration, career development opportunities, flexible working arrangements and the promotion of a strong and inclusive firm culture.
Client Concentration and Market Conditions
Dependence on key clients, or adverse changes in economic, political or legal market conditions, could have an impact on revenue. The group mitigates this risk through diversification of client base, sector focus, and ongoing business development activity.
Technology and Cyber Security
The Group relies on secure and reliable on-site, off-site and cloud-based IT systems to deliver services and protect client data. Cyber security risks are mitigated through investment in IT systems, internal and external staff training, and the use of specialist external security support.
The Group uses a range of key performance indicators (KPIs) to monitor and measure the performance of the business. These include new client instructions, total chargeable hours, turnover per fee earner, chargeable hours per fee earner and unbilled work per fee earner.
During the year, the Group experienced increases across most key performance indicators, reflecting improved operational performance and contributing to higher turnover, increased profitability and strengthened cash resources.
| 2025 |
| 2024 |
| Increase/ (Decrease) |
|
|
|
|
|
|
New client instructions | 12,309 |
| 11,602 |
| 6.09% |
Chargeable hours | 412,012 |
| 409,402 |
| 0.64% |
Turnover/ fee earner | 74,223 |
| 63,586 |
| 16.73% |
Chargeable hours/ fee earner | 963 |
| 916 |
| 5.13% |
Unbilled work/ fee earner | 37,617 |
| 37,793 |
| (0.47)% |
Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would most likely promote the success of The Company for the benefit of its members as a whole. In doing this, section 172 requires a director to have regard, amongst other matters, to the:
likely consequences of any decisions in the long-term:
interests of The Company's employees;
need to foster The Company's business relationships with suppliers, customers and others;
impact of The Company's operations on the community and environment;
desirability of The Company maintaining a reputation for high standards of business conduct; and
need to act fairly as between members of The Company.
In discharging our section 172 duties we have regard to the factors set out above. We also have regard to other factors which we consider relevant to the decision being made. Those factors include the interests and relationships with employees, customers and suppliers. We acknowledge that every decision we make will not necessarily result in a positive outcome for all of our stakeholders.
By considering The Company's purpose, vision and values together with its strategic priorities and having a process in place for decision-making, we do, however, aim to make sure that our decisions are consistent and predictable. The Company delegates authority for day-to-day management of The Company to key management who are responsible for setting, approving and overseeing the execution of the business strategy and related policies.
The Company delegates to key management to review The Company's financial and operational performance, risk and compliance, and health and safety matters.
On behalf of the board
The Directors present their report with the financial statements of The Company and the Group for the year ended 31 March 2025.
The results of the Company and Group for the year are set out on pages 17 - 40.
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:
The group is the first law firm to achieve the IIP Gold Standard, and the group is committed to its employees through continuous investment in training and development. The group involves all employees in the performance and development of its business, its approach to employee development offers continual challenges in the job, learning opportunities and personal development.
The Company remains the largest Civil Legal Aid provider in England & Wales and continues to focus on increasing revenue generation from private client work. The Company is well established in the City of London and across England & Wales.
Despite operating in a challenging business external environment, the Group has identified the following strategic priorities for the future:-
Focus on core legal services – continue to invest in high value complex personal injury, medical negligence, private client work, business services, and group litigation work, while maintaining a strong commitment to Legal Aid work.
Office portfolio rationalisation – continue the consolidation of office space in Greater London into the Group’s main hub in the City of London, Fenchurch Street. The continued use of hybrid working arrangements will support further optimisation of the Group’s office footprint.
Geographical expansion – continue to expand the Group’s presence across England and Wales through the use of virtual office hubs and flexible working models to support service delivery and client access.
International presence - explore opportunities to establish an international presence in the Middle East and the Far East.
Technology and innovation - leverage technology to simplify work processes and improve productivity. The Company will embrace advanced legal technology and digital tools including Generative AI applications to improve operational efficiency and client service delivery.
Talent culture and marketing – investing in leadership capabilities, succession planning, marketing capacity and organisational culture. The Group will focus on strengthening its workforce through targeted external recruitment, internal training and career progression to support service excellence and sustainable growth.
Financial strength - explore additional external investment opportunities to support the expansion of services in regional offices across England and Wales.
Reputation and recognition – maintain the Group’s Legal 500 and Chambers & Partners rankings.
Quality standard - retain existing quality marks and accreditations. Responsible Business and ESG Strategy
Responsible Business Framework
The Group recognises the importance of responsible and sustainable business practices as a core element of its long-term strategy and positioning. During the year, the Group’s key areas of focus included:
Promoting equality, diversity and inclusion across the workforce.
Supporting employee well-being and flexible working arrangements.
Reducing environmental impact through responsible procurement practices and reduced business travel.
Engagement in pro-bono work and community initiatives.
In accordance with section 485 of the Companies Act 2006, Xeinadin Audit Limited will be proposed for reappointment.
The Group’s environmental impacts arise primarily from the use of natural resources, consumption of energy and water, generation of waste, and staff and visitor travel.
The table below shows the breakdown of greenhouse gas emissions for the current and previous year.
2025 2025 2024 2024
MWh CO2/ton MWh CO2/ton
Electricity & Gas 462 91 481 113
Transport, Diesel & Business Mileage 24 6 23 6
Total 486 102 504 119
Emissions intensity CO2e per full time equivalent employee 0.17 0.28
Quantification and reporting methodology
The Group quantifies and reports its organisational greenhouse gas (GHG) emissions in accordance with the Greenhouse Gas Protocol, using the 2023 conversion factors. This methodology ensures consistent and transparent reporting of emissions across all relevant scopes.
Measures taken to improve energy efficiency
The Group has implemented a number of initiatives to enhance energy efficiency across its operations:
Smart Meters: Installed at selected branches, with plans to expand installation to all locations in the future.
Video Conferencing: Adoption of video conferencing for staff meetings and client appointments has significantly reduced travel between sites and minimized the need for clients to travel to offices.
Energy-Efficient Lighting: A new energy-efficient lighting system has been installed at the Head Office in the City of London.
Office Rationalisation: The reduction in floor space at the Dalston branch has contributed to a measurable decrease in electricity consumption.
The Group continues to adopt a proportionate ESG strategy that aligns with its operational scale and business activities, embedding sustainability into decision-making and long-term planning.
We have audited the financial statements of Duncan Lewis Solicitors Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 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 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.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following:
The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud
The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations
Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud
Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance
Any matters we have identified having obtained and reviewed the company's documentation of their policies and procedures relating to
Results of the enquiries of management about their own identification and assessment of the risks of irregularities
The nature of the industry and sector, control environment and business performance including the company's remuneration policies, key drivers for directors remuneration, bonus levels and performance targets
As a result of these 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: valuation of work in progress and revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, environmental laws, employment law, health and safety, pensions legislation, tax legislation and SRA rules relating to solicitors.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.
Audit response to risks identified
Our procedures to respond to risks identified included the following:
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
Enquiring of management concerning actual and potential litigation and claims;
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
Reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC;
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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.
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 profit for the year was £2,052,482 (2024 - £1,296,874 profit).
Duncan Lewis Solicitors Ltd ("the company") is a private limited company domiciled and incorporated in England and Wales. The registered office and principal place of business is 1st Floor Sackville House, 143-149 Fenchurch Street, London, EC3M 6BL.
The group consists of Duncan Lewis Solicitors Ltd and all of its subsidiaries.
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 company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Duncan Lewis Solicitors Ltd 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 March 2025. 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.
The Group meets its day to day working capital requirements through its bank facilities.
After reviewing the Group's forecasts and projections, the directors consider that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its financial statements.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue an 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.
Revenue principally consists of income relating to the provision of legal services to clients for legal aid, certificated and private clients.
The following criteria must also be met before revenue is recognised:
Professional services
Revenue arising from professional services is recognised as the services are provided, assessed at fair value.
Contingent fee arrangements
On matters where the Group provides services on a contingent fee arrangement basis, revenue is recognised only when it is certain that the Group is due to receive the fees.
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.
At each reporting period end date, the group reviews the carrying amounts of its tangible 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 tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within ‘finance income or costs’. All other foreign exchange gains and losses are presented in profit or loss within ‘other operating income’.
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
Tangible fixed assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending upon a number of factors. In re-assessing the assets' lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account.
Impairment of debtors
The Group makes an estimate of the recoverable value of trade debtors and unbilled work. When assessing impairment, management considers factors including the potential for an under recovery on legal cases and also where additional time has been billed to a case which has been concluded.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Details of the company's subsidiaries at 31 March 2025 are as follows:
Registered office addresses (all UK unless otherwise indicated):
Financial assets measured at amortised cost comprise trade debtors and certain other debtors.
Financial liabilities measured at amortised cost comprise bank loans and overdrafts, net obligations under finance leases, trade creditors and certain other creditors.
Trade debtors and unbilled work are stated after provisions for impairment of £1,789,679 (2024: £1,878,120).
The bank loans and overdraft are secured by a debenture creating a fixed and floating charge over the assets of the company and a personal guarantee given by AS Gupta, limited to £1 m.
Amounts due in respect of finance leases and hire purchase contracts are secured on the underlying assets.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
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:
The remuneration of key management personnel is as follows.
During the year, the company was charged fees by a company of which a close family member of one of the directors is a director. Total fees charged in the year amounted to £24,500 (2024: £37,166). Included in creditors is a balance outstanding to this company amounting to £24,500 (2024: £Nil).
During the year, the company was charged fees by a number of companies of which a member of the company's key management personnel is a director. Total fees charged in the year amounted to £1,230,000 (2024: £975,000). Included in creditors is a balance outstanding to these companies amounting to £501,430 (2024: £262,429).
During the year, the company was charged fees by a number of companies of which a close family member of a member of the company's key management personnel is a director. Total fees charged in the year amounted to £2,077,500 (2024: £1,546,750). Included in creditors is a year end balance outstanding to these companies amounting to £992,414 (2024: £228,779).
During the year, the company was charged fees by a number of companies of which a close family member of a member of the company's key management personnel is a director. Total fees charged in the year amounted to £40,375 (2024: £40,400). Included in debtors is a year end balance outstanding from this company amounting to £450 (2024: £4,967).
The bank loans and overdraft are secured, in part, by a charge over life policies in respect of A S Gupta.
At the reporting date, the company owed £695 (2024: £145) to N Joshi, a company director.
At the reporting date, the company was owed £1,034 (2024: £Nil) by S S Gupta the company secretary. This amount represents an interest free loans that is repayable on demand.
At the reporting date, the company was owed £301,322 (2024: £360,774) by A S Gupta, a director of the company. This balance is repayable on demand.
At the reporting date, the company was owed £2,285 (2024: £1,039) by S Ponnada, a director of the company. This amount represents an interest free loans that is repayable on demand.