Frontline Consultancy and Business Services Limited 31/12/2025 iXBRL

Company registration number: 02643915

Frontline Consultancy and Business Services Limited

Financial statements

31 December 2025

Frontline Consultancy and Business Services Limited

Contents

Directors and other information

Strategic report

Directors report

Independent auditor's report to the members

Statement of comprehensive income

Statement of financial position

Statement of changes in equity

Statement of cash flows

Notes to the financial statements

Frontline Consultancy and Business Services Limited

Directors and other information


	Directors	Mr W Milligan
		Mrs G Milligan
		Mr A L Hilton
		Mr B M McEvilly
		Mr C J Glithero
		Mrs A E Hibbert
		Mr L Jones


	Secretary	Mrs A E Hibbert


	Company number	02643915


	Registered office	Frontline House
		Epsom Avenue
		Handforth
		Cheshire
		SK9 3PW


	Business address	Frontline House
		Epsom Avenue
		Handforth
		Cheshire
		SK9 3PW


	Auditor	Downham Morris & Co
		45-49 Greek Street
		Stockport
		Cheshire
		SK3 8AX




	Bankers	Barclays Bank Plc
		51 Mosley Street
		Manchester
		M60 2AU

Frontline Consultancy and Business Services Limited

Strategic report

Year ended 31 December 2025

Introduction

The directors present the Strategic Report for the year ended 31 December 2025.

Business review

The company is a Managed Services Provider (Microsoft 365, hosting, service desk, cyber security products and IBM i) and a SAP Business One Gold Partner. In addition to installing SAP Business One on-premises, we also host it either in Microsoft's public cloud or in our data centres.

During 2025, the business continued to scale its data centre offering, expanding across multiple sites in the UK and Europe. All locations are built to a minimum Tier 3 design, ensuring resilience, service quality, and competitive pricing. In addition, the business enhanced its ERP portfolio by introducing Microsoft Dynamics 365 Business Central as an alternative ERP solution.

Financial key performance indicators

In 2025, the business focused on stabilisation and cost management alongside the investment in Microsoft Dynamics 365 Business Central as an alternative ERP solution. Revenue increased compared with 2024 and gross profit margin also improved from 35.4% to 38.6% in line with expectations.

Overheads have continued to be carefully managed, with consistency maintained compared with 2024.

The Statement of Financial Position shows net assets of £5.1m, an increase on the 2024 position.

Principal risks and uncertainties

The Board recognises its responsibility to manage the risks faced by the business. Risk management is reviewed regularly and improvements are implemented in a timely manner.

Frontline is a software reseller for SAP and Microsoft. If either of these suppliers were to experience financial difficulties, this could have an adverse impact on the financial performance of the business. This risk is mitigated through diversification, including a broad range of services supported by our bespoke development division and our Managed Services division.

Going concern

The company has a diverse customer and supplier base across a range of geographies and industries. The directors consider that the company has sufficient liquid reserves and a significant asset base that could be utilised to support funding requirements and maintain solvency during periods of turbulence. As a consequence, the directors believe the company is well placed to manage its business risks successfully despite the uncertain economic outlook.

The directors' assessment of going concern is based on the latest available financial and non-financial information, together with relevant government guidance. Stress testing has been performed and reviewed, taking into account potential business disruption and the possible impact on revenue arising from future economic uncertainty.

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the annual report and accounts.

Financial risk

The company's objective of financial risk management is to reduce the impact of price fluctuations and other factors of uncertainty in financial markets on earnings, cash flows and balance sheet, as well as to ensure sufficient liquidity.

Liquidity risk

The company manages liquidity risk by having sufficient amounts of cash available and by having a balanced maturity profile of long-term debt.

Fraud

The company has a strong control framework in respect of potential fraud or other dishonest behaviour which is regularly reviewed by the directors.

Research and development

The company continues to conduct research and development activities into innovative new products and services.

This report was approved by the board of directors on 24 April 2026 and signed on behalf of the board by:

..............................

Mrs A E Hibbert

Director

Frontline Consultancy and Business Services Limited

Directors report

Year ended 31 December 2025

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

Directors

The directors who served the company during the year were as follows:

Mr W Milligan

Mrs G Milligan

Mr A L Hilton

Mr B M McEvilly

Mr C J Glithero

Mrs A E Hibbert

Mr L Jones

Dividends

The directors do not recommend the payment of a dividend.

Future developments

We continue to improve our existing solutions as well as introduce new product and service offerings as part of both our Managed Services and Software divisions. In a constantly developing market, it is important that the company remains ahead of this.

Financial instruments

Financial instruments that are debt instruments measured at amortised cost comprise of trade debtors, intercompany loans, directors' loans and cash at bank and in hand.

Financial liabilities measured at amortised cost consist of trade creditors, obligations under finance leases, intercompany loans and share capital.

The main risks arising from these financial instruments are credit risk, interest rate risk and liquidity risk. The risks facing the company are assessed on an ongoing basis by the directors and appropriate timely action taken to mitigate them.

Events after the end of the reporting period

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

Disclosure of information in the strategic report.

The company's business activities, together with factors likely to affect its future development, financial position, financial risk management objectives and exposures to risk are described in the strategic report on pages 2 - 3. The company has disclosed an indication of its activities in the field of research and development and this can be found in the strategic report. The directors' assessment of going concern can be found in the strategic report.

Directors responsibilities statement

The directors are responsible for preparing the strategic report, 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 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 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 judgments 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.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

This report was approved by the board of directors on 24 April 2026 and signed on behalf of the board by:

..............................

Mrs A E Hibbert

Director

Frontline Consultancy and Business Services Limited

Independent auditor's report to the members of

Frontline Consultancy and Business Services Limited

Year ended 31 December 2025

Opinion

We have audited the financial statements of Frontline Consultancy and Business Services Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 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 has 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 where 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 the 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, 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.

Auditor's 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 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. 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: Based on our understanding and accumulated knowledge of the company and the sector in which it operates, we considered the risk of acts by the company which were contrary to applicable laws and regulations, including fraud and whether such actions or non-compliance might have a material effect on the financial statements. These included but were not limited to those that relate to the form and content of the financial statements, such as the company accounting policies, the financial reporting framework and the UK Companies Act 2006. All team members were briefed to ensure they were aware of any relevant regulations in relation to their work.We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates as well as inappropriate revenue cut-off. Our audit procedures included, but were not limited to:- Agreement of the financial statement disclosures to underlying supporting documentation;- Identifying and testing journal entries, with a focus on journals indicating large or unusual transactions based on our understanding of the business;- Discussions with management, including consideration of known or suspected instances of non- compliance with laws and regulation and fraud; - Obtaining an understanding of the control environment in monitoring compliance with laws and regulations.Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.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. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - 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. 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. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 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.

..............................

Ian Gwynfor Morris (Senior Statutory Auditor)

For and on behalf of

Downham Morris & Co

Chartered certified accountant and statutory auditor

45-49 Greek Street

Stockport

Cheshire

SK3 8AX

24 April 2026

Frontline Consultancy and Business Services Limited

Statement of comprehensive income

Year ended 31 December 2025

		2025	2024
	Note	£	£


Turnover	5	9,393,091	9,161,263
Cost of sales		( 5,770,926)	( 5,916,338)
		_______	_______
Gross profit		3,622,165	3,244,925

Administrative expenses		( 2,873,586)	( 2,839,641)
Other operating income	6	43,752	7,054
		_______	_______
Operating profit	7	792,331	412,338

Other interest receivable and similar income	10	11,749	20,120
Interest payable and similar expenses	11	( 65,977)	( 87,734)
		_______	_______
Profit before taxation		738,103	344,724

Tax on profit	12	( 58,384)	( 110,176)
		_______	_______
Profit for the financial year and total comprehensive income		679,719	234,548
		_______	_______

All the activities of the company are from continuing operations.

Frontline Consultancy and Business Services Limited

Statement of financial position

31 December 2025

		2025		2024
	Note	£	£	£	£

Fixed assets
Intangible assets	13	-		-
Tangible assets	14	1,083,407		1,090,204
		_______		_______
			1,083,407		1,090,204

Current assets
Debtors	15	7,314,951		6,986,881
Cash at bank and in hand		1,610,742		1,084,064
		_______		_______
		8,925,693		8,070,945
Creditors: amounts falling due
within one year	17	( 4,303,819)		( 3,990,816)
		_______		_______
Net current assets			4,621,874		4,080,129
			_______		_______
Total assets less current liabilities			5,705,281		5,170,333

Creditors: amounts falling due
after more than one year	18		( 392,833)		( 556,331)

Provisions for liabilities	20		( 183,064)		( 164,337)

			_______		_______
Net assets			5,129,384		4,449,665
			_______		_______

Capital and reserves
Called up share capital	23		1,107		1,107
Share premium account	24		108,040		108,040
Capital redemption reserve	24		783		783
Profit and loss account	24		5,019,454		4,339,735
			_______		_______
Shareholders funds			5,129,384		4,449,665
			_______		_______

These financial statements were approved by the board of directors and authorised for issue on 24 April 2026 , and are signed on behalf of the board by:

..............................

Mrs A E Hibbert

Director

Company registration number: 02643915

Frontline Consultancy and Business Services Limited

Statement of changes in equity

Year ended 31 December 2025

	Called up share capital	Share premium account	Capital redemption reserve	Profit and loss account	Total
	£	£	£	£	£


At 1 January 2024	1,107	108,040	783	4,105,187	4,215,117

Profit for the year				234,548	234,548
	_______	_______	_______	_______	_______
Total comprehensive income for the year	-	-	-	234,548	234,548

	_______	_______	_______	_______	_______
At 31 December 2024 and 1 January 2025	1,107	108,040	783	4,339,735	4,449,665

Profit for the year				679,719	679,719
	_______	_______	_______	_______	_______
Total comprehensive income for the year	-	-	-	679,719	679,719

	_______	_______	_______	_______	_______
At 31 December 2025	1,107	108,040	783	5,019,454	5,129,384
	_______	_______	_______	_______	_______

Frontline Consultancy and Business Services Limited

Statement of cash flows

Year ended 31 December 2025

		2025	2024
	Note	£	£

Cash flows from operating activities
Profit for the financial year		679,719	234,548

Adjustments for:
Depreciation of tangible assets		390,869	524,201
Amortisation of intangible assets		-	11,655
Other interest receivable and similar income		( 11,749)	( 20,120)
Interest payable and similar expenses		65,977	87,734
Gain/(loss) on disposal of tangible assets		-	( 16,157)
Tax on profit		168,251	191,850
Accrued expenses/(income)		( 20,932)	( 5,391)

Changes in:
Trade and other debtors		( 202,498)	( 178,359)
Trade and other creditors		75,178	( 171,518)
		_______	_______
Cash generated from operations		1,144,815	658,443

Interest paid		( 65,977)	( 87,734)
Interest received		11,749	20,120
Tax paid		( 79,132)	( 348,110)
		_______	_______
Net cash from operating activities		1,011,455	242,719
		_______	_______

Cash flows from investing activities
Purchase of tangible assets		( 384,072)	( 332,515)
Proceeds from sale of tangible assets		-	18,415
		_______	_______
Net cash used in investing activities		( 384,072)	( 314,100)
		_______	_______

Cash flows from financing activities
Repayments of borrowings		( 175,000)	( 325,000)
Payment of finance lease liabilities		74,295	46,817
		_______	_______
Net cash used in financing activities		( 100,705)	( 278,183)
		_______	_______

Net increase/(decrease) in cash and cash equivalents		526,678	( 349,564)
Cash and cash equivalents at beginning of year	16	1,084,064	1,433,628
		_______	_______
Cash and cash equivalents at end of year	16	1,610,742	1,084,064
		_______	_______

Frontline Consultancy and Business Services Limited

Notes to the financial statements

Year ended 31 December 2025

1. General information

Frontline Consultancy and Business Services Limited is a private company limited by shares, registered in England & Wales. The address of the registered office and principal place of business is Frontline House, Epsom Avenue, Handforth, Cheshire, SK9 3PW. The nature of the company's operations and its principal trading activity is the provision of IT consultancy, hardware and software services.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Turnover

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts, rebates, value added tax and other sales taxes.Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.When the outcome of a transaction involving the rendering of services can be reliably estimated, revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period.When the outcome of a transaction involving the rendering of services cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.Managed service contract income is recognised on a time incurred basis.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to profit or loss.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at a revalued amount, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:


Deferred development expenditure	-	Fully amortised

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:


Fittings fixtures and equipment	-	10-15 years straight line
Motor vehicles	-	5 years straight line
Computer equipment	-	3-5 years straight line

If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Hire purchase and finance leases

Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other operating expenses.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4. Critical accounting policies

In the application of the company's accounting policies, which are described in note 3, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgements in applying the company's accounting policies

The directors do not consider that the amounts recognised in the current or prior financial period's financial statements have been significantly affected by any critical judgements made in the process of applying the company's accounting policies.

Key sources of estimation uncertainty

Revenue recognition

The company's revenue recognition policies are central to how the company values the work carried out in each financial year. These policies require calculation of project completion, which require assessments on judgements to be made. At 31 December 2025, amounts recoverable in work in progress totalled £140,686 (2024: £217,516). Amounts of work in progress deferred at the year end date totalled £439,664 (2024: £533,982).

Provision against impairment loss on trade receivables and accrued income

The company exercises judgement in providing for impairment loss on trade receivables and accrued income and a review of these areas is carried out on a line-by-line basis at each financial period end. At the year end, the company has a provision for impairment loss of £27,307 (2024: £88,649).

Other estimates and judgements

The company exercises significant judgement in estimating the useful life of its intangible and tangible asset base. At the year end, the company holds intangible assets at a carrying value of £nil (2024: £nil) and tangible fixed assets at a carrying value of £1,083,407 (2024: £1,090,204). An amortisation charge of £nil (2024: £11,655) and a depreciation charge of £390,869 (2024: £524,200) was recognised through the profit and loss account.

Should these estimates vary, the profit or loss and statement of financial position of subsequent years could be impacted.

5. Turnover

Turnover arises from:

	2025	2024
	£	£
Consultancy, hardware & software services	9,393,091	9,161,263
	_______	_______

The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	2025	2024
	£	£
United Kingdom	9,279,318	9,021,916
Europe	49,785	30,615
Rest of World	63,988	108,732
	_______	_______
	9,393,091	9,161,263
	_______	_______

6. Other operating income

	2025	2024
	£	£
Rental income	36,300	-
Commission receivable	7,452	7,054
	_______	_______
	43,752	7,054
	_______	_______

7. Operating profit

Operating profit is stated after charging/(crediting):

	2025	2024
	£	£
Amortisation of intangible assets	-	11,655
Depreciation of tangible assets	390,869	524,201
(Gain)/loss on disposal of tangible assets	-	( 16,157)
Impairment of trade debtors	(5,890)	20,187
Foreign exchange differences	4,793	4,033
Fees payable for the audit of the financial statements	15,000	15,000
	_______	_______

8. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2025	2024
Administrative staff	13	7
Customer service & support	43	55
Sales & marketing	7	7
	_______	_______
	63	69
	_______	_______

The aggregate payroll costs incurred during the year were:

	2025	2024
	£	£
Wages and salaries	3,921,576	3,887,613
Social security costs	490,832	451,830
Other pension costs	67,134	68,999
	_______	_______
	4,479,542	4,408,442
	_______	_______

9. Directors remuneration

The directors aggregate remuneration in respect of qualifying services was:

	2025	2024
	£	£
Remuneration	699,023	721,545
Company contributions to pension schemes in respect of qualifying services	6,691	6,510
	_______	_______
	705,714	728,055
	_______	_______

The number of directors who accrued benefits under company pension plans was as follows:

	2025	2024
	Number	Number
Defined contribution plans	7	7
	_______	_______

Remuneration of the highest paid directors in respect of qualifying services:

	2025	2024
	£	£
Aggregate remuneration	150,789	210,896
Company contributions to pension plans in respect of qualifying services	1,321	1,321
	_______	_______
	152,110	212,217
	_______	_______

10. Other interest receivable and similar income

	2025	2024
	£	£
Bank deposits	10,135	20,120
Other interest receivable and similar income	1,614	-
	_______	_______
	11,749	20,120
	_______	_______

11. Interest payable and similar expenses

		2025	2024
		£	£
Bank loans and overdrafts		32,651	60,742
Other loans made to the company:
	Finance leases and hire purchase contracts	33,272	26,849
	Other interest on other loans made to the company	54	143
		_______	_______
		65,977	87,734
		_______	_______

12. Tax on profit

Major components of tax expense

	2025	2024
	£	£
Current tax:
UK current tax expense	171,220	128,977
Adjustments in respect of previous periods	( 131,563)	71
	_______	_______
Total current tax	39,657	129,048

Deferred tax:
Origination and reversal of timing differences	18,727	( 18,872)
	_______	_______
Tax on profit	58,384	110,176
	_______	_______

Reconciliation of tax expense

The tax assessed on the profit for the year is lower than (2024: higher than) the standard rate of corporation tax in the UK of 25.00 % (2024: 25.00%).

	2025	2024
	£	£
Profit before taxation	738,103	344,724
	_______	_______

Profit multiplied by rate of tax	184,526	86,181
Adjustments in respect of prior periods	( 131,563)	71
Effect of expenses not deductible for tax purposes	1,085	11,506
Effect of capital allowances and depreciation	( 14,391)	31,290
Deferred taxation	18,727	( 18,872)
	_______	_______
Tax on profit	58,384	110,176
	_______	_______

Factors affecting future tax expense
There were no factors that may affect future tax charges.

13. Intangible assets

	Deferred development expenditure	Total
	£	£
Cost
At 1 January 2025 and 31 December 2025	231,652	231,652
	_______	_______
Amortisation
At 1 January 2025 and 31 December 2025	231,652	231,652
	_______	_______
Carrying amount
At 31 December 2025	-	-
	_______	_______
At 31 December 2024	-	-
	_______	_______

Deferred development expenditure relates to an application that has been developed by the company for resale. The net proceeds from future sales are reasonable expected to exceed total costs of developing the application. The asset is fully amortised by virtue of the directors' estimation of the product's life cycle.

14. Tangible assets

	Fixtures, fittings and equipment	Motor vehicles	Computer equipment	Total
	£	£	£	£
Cost
At 1 January 2025	404,099	151,574	4,338,205	4,893,878
Additions	( 1,400)	-	385,472	384,072
	_______	_______	_______	_______
At 31 December 2025	402,699	151,574	4,723,677	5,277,950
	_______	_______	_______	_______
Depreciation
At 1 January 2025	124,437	68,415	3,610,823	3,803,675
Charge for the year	49,655	30,379	310,834	390,868
	_______	_______	_______	_______
At 31 December 2025	174,092	98,794	3,921,657	4,194,543
	_______	_______	_______	_______
Carrying amount
At 31 December 2025	228,607	52,780	802,020	1,083,407
	_______	_______	_______	_______
At 31 December 2024	279,662	83,159	727,382	1,090,203
	_______	_______	_______	_______

Obligations under finance leases

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:


		Computer equipment
		£
	At 31 December 2025	668,728
		_______
	At 31 December 2024	516,614
		_______

15. Debtors

	2025	2024
	£	£
Trade debtors	1,487,952	1,530,963
Prepayments and accrued income	764,436	839,903
Other debtors	5,062,563	4,616,015
	_______	_______
	7,314,951	6,986,881
	_______	_______

Provision for the impairment of trade debtors as at 31 December 2025 was £27,307 (2024: £88,649).

16. Cash and cash equivalents

	2025	2024
	£	£
Cash at bank and in hand	1,610,742	1,084,064
	_______	_______

17. Creditors: amounts falling due within one year

	2025	2024
	£	£
Bank loans and overdrafts	100,000	175,000
Trade creditors	495,613	379,438
Accruals and deferred income	2,518,797	2,470,087
Corporation tax	281,044	210,652
Social security and other taxes	523,849	481,922
Obligations under finance leases	296,583	158,790
Other creditors	87,933	114,927
	_______	_______
	4,303,819	3,990,816
	_______	_______

Net obligations under hire purchase contracts are secured against the assets to which they relate.Bank loans are secured by fixed and floating charges over company assets.The company entered into a loan agreement in respect of a loan totalling £900,000 with Barclays Bank Plc in April 2020. Interest is charged on a floating rate basis not lower than 2.79% per annum. The lending facility was supported by the Coronavirus Business Interruption Loan Scheme. The loan was repaid in full on 25 April 2025.The company entered into a loan agreement in respect of a loan totalling £500,000 with Barclays Bank Plc which was drawn down in August 2023. Interest is charged on a floating rate basis not lower than 5.65% per annum.

18. Creditors: amounts falling due after more than one year

	2025	2024
	£	£
Bank loans and overdrafts	166,667	266,667
Obligations under finance leases	226,166	289,664
	_______	_______
	392,833	556,331
	_______	_______

Net obligations under hire purchase contracts are secured against the assets to which they relate.Bank loans are secured by fixed and floating charges over company assets.The company entered into a loan agreement in respect of a loan totalling £900,000 with Barclays Bank Plc in April 2020. Interest is charged on a floating rate basis not lower than 2.79% per annum. The lending facility was supported by the Coronavirus Business Interruption Loan Scheme. The loan was repaid in full on 25 April 2025.The company entered into a loan agreement in respect of a loan totalling £500,000 with Barclays Bank Plc which was drawn down in August 2023. Interest is charged on a floating rate basis not lower than 5.65% per annum.

19. Obligations under finance leases

Company lessee

The total future minimum lease payments under finance lease agreements are as follows:

	2025	2024
	£	£
Not later than 1 year	307,396	165,724
Later than 1 year and not later than 5 years	245,335	325,848
	_______	_______
	552,731	491,572
	_______	_______
Present value of minimum lease payments	552,731	491,572
	_______	_______

20. Provisions

	Deferred tax (note 21)	Total
	£	£
At 1 January 2025	164,337	164,337
Charges against provisions	18,727	18,727
	_______	_______
At 31 December 2025	183,064	183,064
	_______	_______

21. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2025	2024
	£	£
Included in provisions (note 20)	183,064	164,337
	_______	_______

The deferred tax account consists of the tax effect of timing differences in respect of:

	2025	2024
	£	£
Accelerated capital allowances	192,194	177,803
Other timing differences	( 9,130)	( 13,466)
	_______	_______
	183,064	164,337
	_______	_______

22. Employee benefits

Defined contribution plans

The amount recognised in profit or loss in relation to defined contribution plans was £ 67,134 (2024: £ 68,999 ).

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of a company in an independently administered fund. The pension cost represents contributions payable by the company to the fund and amounted to £67,134 (2024: £68,999). Contributions totalling £36,519 (2024: £53,864) were payable to the fund at the balance sheet date and are included in other creditors.

23. Called up share capital

Issued, called up and fully paid

	2025		2024
	No	£	No	£
Ordinary shares of £ 1.00 each	1,107	1,107	1,107	1,107
	_______	_______	_______	_______

24. Reserves

The share premium reserve includes the value of premiums paid on the issue of share capital.The capital redemption reserve includes the nominal value of own shares purchased by the company.The profit and loss account includes all current and prior period retained profits and losses.

25. Analysis of changes in net debt

	At 1 January 2025	Cash flows	At 31 December 2025
	£	£	£
Cash and cash equivalents	1,084,064	526,678	1,610,742
Debt due within one year	(333,790)	(62,793)	(396,583)
Debt due after one year	(556,331)	163,498	(392,833)
	_______	_______	_______
	193,943	627,383	821,326
	_______	_______	_______

26. Operating leases

The company as lessee

The total future minimum lease payments under non-cancellable operating leases are as follows:


	£	£

Not later than 1 year	355,486	303,370
Later than 1 year and not later than 5 years	379,903	651,976
	_______	_______
	735,389	955,346
	_______	_______

27. Directors advances, credits and guarantees

	During the year the directors entered into the following advances and credits with the company:

2025
		Balance brought forward	Advances /(credits) to the directors	Balance o/standing
		£	£	£
	Mr W Milligan	1,653,796	165,750	1,819,546
	Mrs G Milligan	1,588,942	159,250	1,748,192
		_______	_______	_______
		3,242,738	325,000	3,567,738
		_______	_______	_______

2024
		Balance brought forward	Advances /(credits) to the directors	Balance o/standing
		£	£	£
	Mr W Milligan	1,530,376	123,420	1,653,796
	Mrs G Milligan	1,470,362	118,580	1,588,942
		_______	_______	_______
		3,000,738	242,000	3,242,738
		_______	_______	_______

The amount owed to the company by its directors at the year end was £3,567,738 (2024: £3,242,738) and is included within other debtors. No interest is charged on loans due to and from the directors and loans are repayable on demand.

28. Related party transactions

At the year end, an amount totalling £275,000 (2024: £275,000) was due from a company under common control and is included within other debtors. No interest is being charged on the balance and the amount due is repayable on demand.

29. Controlling party

The company is under the control of its director , Mr W Milligan , by virtue of his majority shareholding.