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Registered number: 07174215









HR FACILITIES LTD









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

 
HR FACILITIES LTD
 
 
COMPANY INFORMATION


Directors
L Bainbridge 
A Wilkin 
P Harman (resigned 25 October 2024)
B Harman (resigned 25 October 2024)




Registered number
07174215



Registered office
Unit 201 Portsoken House
155-157 Minories

London

EC2N 1LJ




Independent auditors
Barnes Roffe Audit Limited
Chartered Accountants & Statutory Auditor

Charles Lake House

Claire Causeway

Crossways Business Park

Dartford

Kent

DA2 6QA





 
HR FACILITIES LTD
 

CONTENTS



Page
Strategic report
 
1 - 3
Directors' report
 
4 - 5
Independent auditors' report
 
6 - 9
Statement of comprehensive income
 
10
Balance sheet
 
11
Statement of changes in equity
 
12
Notes to the financial statements
 
13 - 27


 
HR FACILITIES LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025

Introduction
 
Smart Managed Solutions, a trading name of HR Facilities Ltd, is a leading provider of data led facilities management services. This strategic report outlines the company's performance, strategic direction, key financial outcomes, and future plans for the year ending March 31, 2025.

Business review
 
Smart Managed Solutions specialises in providing comprehensive services, including maintenance, energy and project management. Our mission is to deliver exceptional service, ensuring client satisfaction and operational excellence.

Strategic Objectives

For the year March 2025, our strategic objectives were centred around four key pillars:

1. Operational Efficiency - Streamlining processes to reduce costs and enhance service delivery through
 comprehensive data management. 
2. Client Satisfaction - Maintaining high levels of customer service and expanding our client base.
3. Sustainable Growth - Implementing sustainable practices to promote environmental responsibility and
 achieve long-term growth.
4. Innovation - Leveraging technology to improve service efficiency and introduce new service offerings with
 particular focus on data and energy management. 

Financial Performance

During the year Smart Managed Solutions increased turnover to £78.4 million, 25% higher than the prior year. Profit after tax was £5.2million for the period, up from £2.6million in the prior year. Smart Managed Solutions has continued this strong momentum into the new financial year, securing new business and reacting swiftly to take advantage of opportunities in the market. The company has focused on optimising working capital during the period and this is reflected in the cash balance of £11.5m as at 31 March 2025.

Future Plans

By maintaining its focus on operational efficiency, client satisfaction, sustainable growth, and innovation, Smart Managed Solutions has once again delivered a strong financial performance with increases in both turnover and net profit. The business is well positioned to achieve continued success in the coming years and remains committed to delivering exceptional facilities management services and creating long-term value for our stakeholders.

Page 1

 
HR FACILITIES LTD
 

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

Principal risks and uncertainties
 
Smart Managed Solutions recognises the importance of managing risks to ensure business continuity and long-term success. Key risks identified include:

Economic Downturn: Diversifying our client base and service offerings to mitigate the impact of economic fluctuations.

Regulatory Changes: Staying abreast of regulatory developments and ensuring compliance through regular audits and staff training.

Technological Disruption: Continually investing in technology to stay ahead of industry advancements and maintain a competitive edge.

Credit risk

The exposure to bad debts and credit risk is proactively managed, monitoring of debts on a daily basis.

Financial key performance indicators
 
Given the straightforward nature of the business, the company's directors are of the opinion that analysis using KPI's is not necessary for an understanding of the development, performance or position of the business.

Page 2

 
HR FACILITIES LTD
 

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

Directors' statement of compliance with duty to promote the success of the company
 
The directors of the company, as those of all UK companies, must act in accordance with a set of general duties.
These duties are detailed in section 172 of the UK Companies Act 2006 which is summarised below:

A director of a company must act in the way he/she considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:
1. The likely consequences of any decision in the long term
2. The interests of the company's employees
3. The need to foster the company's business relationships with suppliers, customers and others
4. The impact of the company's operations on the community and the environment
5. The desirability of the company maintaining a reputation for high standards of business conduct, and
6. The need to act fairly as between members of the company.

Each director of the company is aware of their obligations on the above and can seek professional advice from an independent advisor as necessary. As a company with a significant workforce the company’s directors delegate day to day decision making to employees of the company. 

In discharging these duties, the directors have regard for other factors including the interests and views of stakeholders in any decision-making process and aim to ensure that decisions support the company and stakeholders’ purpose, vision and values as well as promoting the success of the wider group.

The Board uses its regular meetings as a mechanism to address and meet its obligations under Section 172 of the Companies Act 2006 at which point the stakeholders of the group are discussed. In the directors' opinion the employees and the customer base represent the key stakeholders and the means of engagement have been detailed below:

Employees - The company as noted in the directors' report has a number of policies on its engagement with employees but also prides itself on its recruitment policies to ensure equal opportunities and safe recruitment.

Customers – Our employees and managers are onsite on a daily basis and interact with our customers to fulfil our customers' requirements. All of our staff uphold our key values as noted on our website.

The company also operates a zero-tolerance approach to modern slavery and human trafficking. The company is committed to acting ethically and with integrity in all of our business relations. We work closely with our business partners, suppliers and supply chains to ensure there is no place for modern slavery and human trafficking.


This report was approved by the board on 30 December 2025 and signed on its behalf.



A Wilkin
Director

Page 3

 
HR FACILITIES LTD
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the company's financial statements and then apply them consistently;

make 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £5,247,871 (2024 - £2,598,571).

Dividends voted during the year amounted to £5,846,343 (2024 - £840,022).

Directors

The directors who served during the year were:

L Bainbridge 
A Wilkin 
P Harman (resigned 25 October 2024)
B Harman (resigned 25 October 2024)

Future developments

The company is budgeted to continue to trade profitably and to pursue opportunities to improve its financial performance and financial position in the year to 31 March 2026.

Page 4

 
HR FACILITIES LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025

Engagement with employees

The company takes employee involvement and engagement seriously and continues to hold regular meetings whereby chosen worker representatives meet with the management team to discuss concerns that they have.

The company’s policy is to recruit disabled workers for those vacancies it is able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for development exist. Arrangements are made wherever possible for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

Engagement with suppliers, customers and others

Smart Managed Solutions places a priority on maintaining high levels of customer service and employees and managers are onsite on a daily basis to interact with our customers and also to manage and engage with key suppliers that help us to fulfil our customers' requirements.

Smart Managed Solutions has an active program of outreach and support to the local community including contributing time and resources to voluntary projects and engagement in programs that promote employment opportunities for disadvantaged groups. 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Post balance sheet events

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

Auditors

After the year end Barnes Roffe LLP resigned as auditors due to the transfer of its audit business and its successor Barnes Roffe Audit Limited was appointed by the directors under s485 Companies Act 2006. 

This report was approved by the board on 30 December 2025 and signed on its behalf.
 





A Wilkin
Director

Page 5

 
HR FACILITIES LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HR FACILITIES LTD
 

Opinion


We have audited the financial statements of HR Facilities Ltd (the 'company') for the year ended 31 March 2025, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 6

 
HR FACILITIES LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HR FACILITIES LTD (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
HR FACILITIES LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HR FACILITIES LTD (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 • The engagement partner ensured that the engagement team collectively had the appropriate     competence, capabilities and skills to identify or recognise non-compliance with applicable laws and    regulations;
 • We identified the laws and regulations applicable to the company through discussion with directors and   other management, and from our commercial knowledge and experience of the sector that the company   operates in;
 • We focused on specific laws and regulations which we considered may have a direct material effect on   the financial statements or the operations of the company, including the Companies Act 2006, ISO    accreditations specifically 9001, 14001 and 45001,  and the company’s membership with the Electrical    Contractors' Association and NICEIC;
 • We assessed the extent of compliance with the laws and regulations identified above through making    enquiries of management, reviewing board minutes, relevant correspondence and certificates held; and
 • Laws and regulations were communicated within the audit team at the planning meeting, and during the   audit as any further laws and regulation were identified. The audit team remained alert to instances of    non-compliance throughout the audit. 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur by: 

 • Making enquires of management and the board as to where they consider there was susceptibility to    fraud along with their knowledge of actual, suspected and alleged fraud; 
 • Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and    regulations; and
 • Our review of financial statements and testing the disclosures against supporting documentation. 

To address the risk of fraud through management bias and override of controls we:

 • Performed analytical procedures to identify any unusual or unexpected trends or anomalies;
 • Inspected and tested journal entries to identify unusual or unexpected transactions;
 • Assessed whether judgement and assumptions made in determining significant accounting estimates,    including stock provisions and the useful economic life of tangible fixed assets, were indicative of     management bias; and
 • Investigated the rationale behind significant transactions, or transactions that are unusual or outside the   company’s usual course of business. 
 
Page 8

 
HR FACILITIES LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HR FACILITIES LTD (CONTINUED)




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.


Use of our report
 

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Jamie Hall (Senior statutory auditor)
for and on behalf of
Barnes Roffe Audit Limited
Chartered Accountants
Statutory Auditor
Charles Lake House
Claire Causeway
Crossways Business Park
Dartford
Kent
DA2 6QA

 
Date: 
31 December 2025
Page 9

 
HR FACILITIES LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025

2025
2024
Note
£
£

  

Turnover
 4 
78,441,549
62,976,610

Cost of sales
  
(68,296,500)
(56,477,591)

Gross profit
  
10,145,049
6,499,019

Administrative expenses
  
(2,227,413)
(2,380,305)

Exceptional administrative expenses
  
(866,081)
(569,219)

Operating profit
 5 
7,051,555
3,549,495

Interest receivable and similar income
 9 
308,063
32,470

Interest payable and similar expenses
 10 
-
(1,001)

Profit before tax
  
7,359,618
3,580,964

Tax on profit
 11 
(2,111,747)
(982,393)

Profit for the financial year
  
5,247,871
2,598,571

There were no recognised gains and losses for 2025 or 2024 other than those included in the statement of comprehensive income.

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

The notes on pages 13 to 27 form part of these financial statements.

Page 10

 
HR FACILITIES LTD
REGISTERED NUMBER: 07174215

BALANCE SHEET
AS AT 31 MARCH 2025

2025
2024
Note
£
£

Fixed assets
  

Intangible assets
 14 
173,082
-

Tangible assets
 15 
309,253
156,258

  
482,335
156,258

Current assets
  

Debtors: amounts falling due within one year
 16 
12,292,423
13,719,711

Cash at bank and in hand
 17 
11,486,536
7,531,232

  
23,778,959
21,250,943

Creditors: amounts falling due within one year
 18 
(20,396,787)
(16,983,405)

Net current assets
  
 
 
3,382,172
 
 
4,267,538

Total assets less current liabilities
  
3,864,507
4,423,796

Provisions for liabilities
  

Deferred tax
 19 
(71,713)
(32,530)

Net assets
  
3,792,794
4,391,266


Capital and reserves
  

Called up share capital 
 20 
100
100

Capital redemption reserve
  
100
100

Profit and loss account
  
3,792,594
4,391,066

  
3,792,794
4,391,266


The financial statements were approved and authorised for issue by the board and were signed on its behalf: 




A Wilkin
L Bainbridge
Director
Director


Date: 30 December 2025

The notes on pages 13 to 27 form part of these financial statements.

Page 11

 
HR FACILITIES LTD
 

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


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 April 2024
100
100
4,391,066
4,391,266



Profit for the year
-
-
5,247,871
5,247,871

Dividends: Equity capital
-
-
(5,846,343)
(5,846,343)


At 31 March 2025
100
100
3,792,594
3,792,794



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 April 2023
100
100
2,632,517
2,632,717



Profit for the year
-
-
2,598,571
2,598,571

Dividends: Equity capital
-
-
(840,022)
(840,022)


At 31 March 2024
100
100
4,391,066
4,391,266


The notes on pages 13 to 27 form part of these financial statements.

Page 12

 
HR FACILITIES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

1.


General information

HR Facilities Ltd is a private company limited by shares and incorporated in England and Wales. The registered office is Unit 201 Portsoken House, 155-157 Minories, London, United Kingdom, EC2N 1LJ. The principal activity of the company is that of office maintenance services.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Smart Managed Solutions Group Limited as at 31 March 2025 and these financial statements may be obtained from Unit 201 Portsoken House, 155-157 Minories, London, EC3N 1LJ.

Page 13

 
HR FACILITIES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

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.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.



 
2.5

Operating leases: the company as lessee

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

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

Page 14

 
HR FACILITIES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.6

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.

If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Page 15

 
HR FACILITIES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.11

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the company but are presented separately due to their size or incidence.

 
2.12

Intangible assets

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

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. Intangible assets are not amortised until they are brought into use.

 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 16

 
HR FACILITIES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)


2.13
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following bases:


Motor vehicles
-
25%
Reducing balance
Office equipment
-
20%
Reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 17

 
HR FACILITIES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.17

Financial instruments

The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's Balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

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.

 
2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 18

 
HR FACILITIES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The company has made key assumptions regarding open purchase order accruals, and estimates ongoing work that has not been invoiced but where it is appropriate revenue should be recognised. The provision for this at year end is £5,151,325 (2024: £3,774,136). Revenue is recognised in accordance with note 2.4 and costs are recognised in accordance with note 2.15.


4.


Turnover

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


2025
2024
£
£

Maintenance work
44,711,683
35,897,415

Project work
7,844,155
6,927,236

Extra work
25,885,711
20,151,959

78,441,549
62,976,610


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2025
2024
£
£

Depreciation
71,089
7,799

Exchange differences
-
(48)

Other operating lease rentals
233,010
140,771


6.


Auditors' remuneration

2025
2024
£
£

Fees payable to the company's auditors and their associates for the audit of the company's financial statements
28,150
23,975

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.

Page 19

 
HR FACILITIES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2025
2024
£
£

Wages and salaries
22,371,582
17,811,948

Social security costs
2,577,093
2,039,527

Cost of defined contribution scheme
376,903
268,261

25,325,578
20,119,736


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


        2025
        2024
            No.
            No.







Directors
3
4



Staff
395
286

398
290


8.


Directors' remuneration

2025
2024
£
£

Directors' emoluments
313,871
2,215,546

Company contributions to defined contribution pension schemes
-
22

313,871
2,215,568


During the year retirement benefits were accruing to no directors (2024 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £154,619 (2024 - £782,240).


9.


Interest receivable

2025
2024
£
£


Interest receivable
308,063
32,470

308,063
32,470

Page 20

 
HR FACILITIES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

10.


Interest payable and similar expenses

2025
2024
£
£


Other loan interest payable
-
1,001

-
1,001


11.


Taxation


2025
2024
£
£

Corporation tax


Current tax on profits for the year
2,072,573
972,968

Adjustments in respect of previous periods
(9)
-


Total current tax
2,072,564
972,968

Deferred tax


Origination and reversal of timing differences
39,183
9,425


2,111,747
982,393
Page 21

 
HR FACILITIES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
 
11.Taxation (continued)


Factors affecting tax charge for the year

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

2025
2024
£
£


Profit on ordinary activities before tax
7,359,618
3,580,964


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
1,839,905
895,241

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
272,009
50,393

Capital allowances for year in excess of depreciation
(39,183)
(9,275)

Deferred tax movement
39,183
9,425

Adjustments to corporation tax in respect of prior periods
(9)
-

Other tax charge (relief) on exceptional items
-
36,609

Group relief
(158)
-

Total tax charge for the year
2,111,747
982,393


Factors that may affect future tax charges

There were no factor that may affect future tax charges.


12.


Dividends

2025
2024
£
£


Dividends paid
5,846,343
840,022

5,846,343
840,022

Page 22

 
HR FACILITIES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

13.


Exceptional items

2025
2024
£
£


Professional fees
418,633
100,000

Interest charges
-
146,434

Employers NI and Apprenticeship levy cost
(2,552)
322,785

Exceptional bonus
450,000
-

866,081
569,219


14.


Intangible assets




Software Development

£



Cost


Additions
173,082



At 31 March 2025

173,082






Net book value



At 31 March 2025
173,082



At 31 March 2024
-



Page 23

 
HR FACILITIES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

15.


Tangible fixed assets





Motor vehicles
Office equipment
Total

£
£
£



Cost or valuation


At 1 April 2024
175,543
17,006
192,549


Additions
176,660
47,424
224,084



At 31 March 2025

352,203
64,430
416,633



Depreciation


At 1 April 2024
22,172
14,119
36,291


Charge for the year on owned assets
68,472
2,617
71,089



At 31 March 2025

90,644
16,736
107,380



Net book value



At 31 March 2025
261,559
47,694
309,253



At 31 March 2024
153,371
2,887
156,258

Page 24

 
HR FACILITIES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

16.


Debtors

2025
2024
£
£


Trade debtors
11,490,019
10,677,575

Amounts owed by group undertakings
280,050
237,998

Other debtors
257,841
2,003,832

Prepayments and accrued income
264,513
800,306

12,292,423
13,719,711



17.


Cash and cash equivalents

2025
2024
£
£

Cash at bank and in hand
11,486,536
7,531,232

11,486,536
7,531,232



18.


Creditors: Amounts falling due within one year

2025
2024
£
£

Trade creditors
8,102,662
7,404,135

Amounts owed to group companies
858,422
-

Corporation tax
1,059,169
65,309

Other taxation and social security
2,781,219
4,073,027

Other creditors
519,754
698,310

Accruals and deferred income
7,075,561
4,742,624

20,396,787
16,983,405


Page 25

 
HR FACILITIES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

19.


Deferred taxation




2025
2024


£

£






At beginning of year
(32,530)
(23,105)


Charged to profit or loss
(39,183)
(9,425)



At end of year
(71,713)
(32,530)

The provision for deferred taxation is made up as follows:

2025
2024
£
£


Accelerated capital allowances
(71,713)
(32,530)

(71,713)
(32,530)


20.


Share capital

2025
2024
£
£
Allotted, called up and fully paid



1,000 (2024 - 1,000) Ordinary Shares shares of £0.10 each
100
100



21.


Pension commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held seperately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the funds and amounted to £376,903 (2024: £268,261). Contributions totalling £166,864 (2024: £54,460) were payable to the fund at the balance sheet date and are included in creditors.

Page 26

 
HR FACILITIES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

22.


Commitments under operating leases

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

2025
2024
£
£



Not later than 1 year
212,426
132,875

Later than 1 year and not later than 5 years
474,419
-

686,845
132,875


23.


Related party transactions

The company is a wholly owned member of the group headed by Smart Managed Solutions Group Limited, the consolidated accounts of which are publicly available. Accordingly, the company has taken advantage of the exemption in FRS 102 Section 33.1A from disclosing transactions with members of the Smart Managed Solutions Group Limited group.

At the year end, the company owed £690,545 
(2024 - £489,504) to companies with common directors which is included within creditors.

During the year the company made purchases of £57,095 
(2024 - £381,907) from companies with common directors.


24.


Controlling party

At the year end the company's immediate parent undertaking is Smart Managed Solutions Holdings Limited.

There is no one ultimate controlling party.

 
Page 27