The market conditions that the business, and all peers, continue to operate in have settled in the financial year. There remains the expectation that the total addressable market will gradually continue to decline in the long term for reasons stated above, but material changes are not expected in the medium term.

The size of the addressable market remains considerable. There are notable opportunities for organic and inorganic growth and conditions remain favourable for the business to play a major role in consolidating the market.

There have been several successful new major contract wins, in a competitive process, from existing and new Partners in the target insurance sector and the firm’s profile and reputation as a quality supplier of customer services delivered in a commercial and pragmatic manner continues to strengthen in this core market segment.

The performance of the business in responding with agility to the prior year’s reduction in claim volumes and returning to profitability and with a strong FY25 exit rate, is highly pleasing to see.

The Board has invested considerable time in the year developing a long-term value creation plan and has established a mature framework which shapes every decision made in the business and provides the Board with confidence that there is material growth ahead for FY26, FY27 and beyond if the value creation plan is well-executed.

The four strategic initiatives which underpin the value creation plan are:

• Market – Demonstrate the positive market conditions for organic & inorganic growth

• Financial - Delivery of strong financial performance, outperforming the market with a compelling growth opportunity to deliver

• Operational - A scalable and efficient model empowered by technology, to support the delivery of positive customer outcomes

• Strategic - A high-performance and growth orientated leadership team, with a demonstrable positive culture

Principal risks

The principal risks of the business continue to actively be overseen by the Board and managed across seven key risk areas, namely: conduct, financial, operational, people, regulatory, strategic and technology risk.

The risks of primary focus during FY25 remains on monitoring the risks emanating from the reducing addressable market in the long term and the impact the national economic and geo-political environment can have on the sector.

Governance

The internal control framework is well-embedded, with the primary focus of all key decision making within the regular Board and Executive meetings.

The Board has developed the long-term value creation plan which it oversees and is a regular focus with the Executive team who has been empowered to deliver the plan and supporting suite of key deliverables.

The Board are collectively accountable for maintaining a continuous focus on the long-term best interests of the company, its key stakeholders, and the environment. In FY25 this approach has been amplified by the creation of the value creation plan.

The Board however, remains responsible for ensuring the business maintains the right balance between addressing its short-term priorities, while operating within a framework guiding effective long-term decisions in the best interest of the company and its key stakeholders.

The Board is currently reviewing the vision for the company, so it aligns with the value creation plan and articulates the positive benefits intended to be delivered for all key stakeholders in the long term.

The Board has continued to ensure the s.172 duties are considered by using the company’s clearly defined and embedded purpose, culture, values, and business principles, which all underpin the strategy, as an objective framework for all decisions to be made against. The commitment remains to ensure the company is a good business but also a business doing good.

The FY25/FY26 corporate objectives consider the needs of the key stakeholders, namely to:

• Be a cash generative profitable and sustainable business.

• Be a business doing good for all stakeholders.

• Employ the best and engaged people.

• Deliver the best possible customer experience.

• Intelligently and efficiently help our customers.

• Work in collaboration with the best partners

The key stakeholders are engaged in a variety of different manners, according to their own unique needs, including the:

Workforce

An engaged workforce remains the foundation of success for the business, whether the colleagues are based in Wilmslow, Halifax or the growing presence in Cape Town.

The business remains accredited with Gold standard from Investors in People and continued to deliver very strong results, including:

• The average response rate to internal workforce surveys was 95%.

• The average workforce engagement score was an impressive 85%.

Customers

Several KPIs are used to allow the Board to monitor and manage customer service levels including complaints, net promoter score, service level agreement adherence and customer satisfaction.

The creation of an enhanced Customer Outcome Dashboard as well as a Key Client SLA Dashboard has provided even greater levels of visibility and confidence on how customer service standards remain very positive.

Community and environment

The business has always had a very strong genuine commitment to its local community, and this remains a core aspect of the culture of workforce proposition.

The commitment to the environment has continued to play a greater feature in the day-to-day operation of the business and the business has committed to attain its first external accreditation to provide greater confidence and objectivity that the business is protecting the environment through its actions of the business and those of its key suppliers.

Business Partners

The business Partners who introduce their customers to the company are made aware of the culture, purpose, vision, and values at the inception of a relationship and through the regular key account review meetings. In FY26 the key Partners will be engaged in the value creation plan and how this will further enhance the quality of outcomes delivered for them and their customers.Suppliers

The importance of key suppliers to the business and the delivery of positive customer outcomes considering the business model remains critical and a new Dashboard has been created to enhance the monitoring of their performance and to also drive improved standards of operating in a sustainable manner.

Suppliers

The importance of key suppliers to the business and the delivery of positive customer outcomes considering the business model remains critical and a new Dashboard has been created to enhance the monitoring of their performance and to also drive improved standards of operating in a sustainable manner.

Regulators

All FCA communications continue to be promptly assessed, analysed and reported to the Board, Executive and workforce as appropriate.

Industry bodies

There remains ongoing regular engagement at the most senior level with a variety of trade bodies across the motor claims, hire & repair, and civil justice sector. This affords the company the opportunity to gain the necessary insights into the current and long-term trends, as well as contributing to the discussions on the appropriate customer-centric regulatory and policy-making processes.

Following the decision to increase the focus on participating in industry bodies and events, the business has secured several additional roles which have provided further positive profile and to ensure deeper levels of market insights are gained to support the growth strategy, identify and manage key risks and deliver positive customer outcomes.

Auditors and bank

The auditors and bank are always actively and transparently engaged on a regular basis, and their external and independent scrutiny continues to be welcomed to ensure key-decisions are subjected to debate and challenge, to improve the integrity of those decisions in the long-term best interests of the company.

The directors present the strategic report for the year ended 31 December 2025.

The UK motor claims market continues to experience structural declines in claims frequency, driven by improved vehicle safety technology, enhanced road safety measures and changing vehicle ownership patterns. The Group mitigates this risk through diversification of service lines, increased penetration of existing client relationships, disciplined cost management and a scalable operating model designed to remain resilient under lower‑volume scenarios. Declining claims frequency represents the single most significant structural headwind to the sector and the drivers of this trend, as outlined in the 2024 Strategic Report, continue to persist and are expected to influence market dynamics for the foreseeable future.

1. The impact of higher cost of living.

2. Increased vehicle safety features such as AEB & ADAS.

3. Increased road safety measures.

4. Changing dynamics in the new vehicle sales.

Despite these headwinds, the business delivered a material financial turnaround during the period, achieving a greater than £1 million improvement in profitability compared with the prior year. This improvement was principally driven by disciplined margin management by customer, targeted overhead control, and productivity gains delivered through operational efficiencies and offshore expansion. These actions more than offset the impact of lower overall claims volumes.

The Directors will continue to execute and accelerate this turnaround strategy during 2026 and into 2027 and remain confident that the business is well positioned to deliver further improvements in financial performance, notwithstanding ongoing market pressure on volumes.

The strategy is to deliver sustainable profitability in the UK motor claims market through a scalable, digitally enabled service model, disciplined margin management, and operational efficiency. The Directors believe that the strategy, business model, and governance framework provide appropriate mitigation against these principal risks and enable the business to respond dynamically to ongoing market uncertainty.

• New Sales Initiatives: During the period under review, the business successfully onboarded three new insurer clients, reflecting continued confidence in its service proposition and delivery capability. In addition, material growth was delivered across two existing client relationships, driven by service expansion and strengthened operational performance. The business enters 2026 with strong commercial momentum and forecasts further growth from two additional existing relationships supported by a high level of engagement with key insurer partners. Alongside this, the business maintains a robust and diversified pipeline of new business opportunities with confidence in the sustainability of future revenue growth.

• Margin: The competitive nature of the insurance services market continues to place pressure on pricing and margins. The business actively manages this risk through regular margin review at customer level, disciplined pricing methodologies, alignment of service delivery with commercial returns, and ongoing operational efficiency initiatives.

• Overhead: The Cape Town operation in South Africa continues to deliver meaningful cost arbitrage benefits while maintaining service quality and operational resilience. This offshore capability is now an embedded and strategically important element of the operating model. In addition, the business commenced a structured exploration of AI‑enabled productivity initiatives during the year, focusing on claims handling and administrative processes. These initiatives are expected to support margin resilience and scalability as investment and implementation accelerate during 2026.

The business continues to operate in the motor insurance claims environment with a mix of customers ranging from insurers, MGA’s and brokers. The business operates a blended model comprising:

– Insurance Services, which generate contracted and predictable revenue streams; and

– Credit Services, which represent a smaller, tightly controlled, and risk‑based portfolio.

Our Insurance Services digitally serviced product suite includes: First Notification of Loss, Repair Triage, Repair Management, Desktop Engineering, Total Loss & Salvage Management, Third Party Capture, Third Party Property Defence, Subrogation, and Uninsured Loss Recovery.

The business has, and will, continue to invest where appropriately in both our people and technology. Our multi-site footprint (Wilmslow, Halifax, and Cape Town) offers a mix of office based, hybrid, and remote working patterns to assist in the recruitment of the best talent. We have maintained our Investors in People Gold accreditation throughout the year.

Our proprietary “Future Pathways” development programme saw the second cohort graduate and the programme’s framework has been adopted by other industry stakeholders with our people providing implementation support.

Our commitment to the local community and good causes continued with £91,367 raised by our people for good causes during the year.

The business completed and embedded its Net Zero Action Plan during the year, enabling the tracking of progress and delivery of measurable outcomes. In addition, the business achieved ISO 14001 environmental management certification.

Environmental responsibility remains an integral element of business operations, supporting client procurement requirements, regulatory expectations, and long‑term operational sustainability.

The business continues to invest in technology to support productivity, service quality, and security. The business remains ISO 27001 certified, reflecting its ongoing commitment to robust information security frameworks which are critical to insurer and broker partnerships.

These accounts report the 12-month trading period (as opposed to a 16-month period in 2024). The improvement in EBITDA and operating profit reflects the successful execution of the turnaround strategy, cost control measures, and operational efficiency initiatives during the period.

On behalf of the board

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

The principal activity of the company continued to be that of the provision of accident management services.

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £180,000. 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 auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent; and

• 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They 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.

We have audited the financial statements of S & G Response Limited (the 'company') for the year ended 31 December 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 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 Auditor's 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 UK, including the FRC’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.

Other information

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

We have nothing to report in this regard.

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.

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.

As explained more fully in the directors' responsibilities statement, 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.

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 auditor's 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.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

S & G Response Limited is a private company limited by shares incorporated in England and Wales. The registered office is St Anns House, Parsonage Green, Wilmslow, Cheshire, United Kingdom, SK9 1HG.

In the prior period the accounting period was extended to end on 31 December 2024. Therefore, the comparative figures in the financial statements represent a 16 month period, compared to a 12 month period in the current financial year.

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.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

The company recognises revenue from the following major sources:

• Provision of third-party claims handling services

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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 credited or charged to profit or loss.

At each reporting period end date, the company 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.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, 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.

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 company 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 company 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.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company 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 company.

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 company’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 when the company has 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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

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 leases asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

An element of turnover is fully recognised on recovery rather than on invoice. The business includes a WIP balance in the accounts to recognise the timing difference.

The estimates and associated assumptions are based on historical experience and any other factors that are considered relevant.

Actual results may differ from these estimates however given the estimates and underlying assumptions are reviewed on an ongoing basis any risk should be minimised.

Estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

An analysis of the company's turnover is as follows:

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:

Included within other creditors is a balance of £2,285,228 (2024: £3,469,667) owed to an invoice financing facility which is secured by a fixed and floating charge over the company's assets.

Bank loans and overdraft are secured on the assets of the company and a personal guarantee from the directors.

Finance lease payments represent rentals payable by the company for motor vehicles. Leases include purchase options at the end of the lease period, restrictions are in place regarding maximum mileage on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

Deferred income relates to payments on account made by customers that the entity is not yet entitled to.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Included within other debtors is an amount of £40,462 (2024: £20,000) due from The Rehabilitation Company Ltd. These are companies in which directors A Whatmough, N Stone and N Griffiths are also directors.

Included in directors remuneration are fees of £40,000 (2024: £86,833) charged by Charles Layfield Limited for the services provided by Charles Layfield who is also a non-executive director of the company.

Dividends totalling £180,000 (2024 - £90,000) were paid in the year (2024 - period) in respect of shares held by the company's directors.