Company registration number 03634112 (England and Wales)
LEXINGTON COMMUNICATIONS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2025
6th Floor Kings House
9-10 Haymarket
London
United Kingdom
SW1Y 4BP
LEXINGTON COMMUNICATIONS LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Income statement
10
Statement of comprehensive income
11
Statement of financial position
12
Statement of changes in equity
13
Notes to the financial statements
14 - 25
LEXINGTON COMMUNICATIONS LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr M Craven
E S Cook
Mr M Derr
Mr B Terrett
Lord D Stevenson
Company number
03634112
Registered office
6th Floor Kings House
9-10 Haymarket
London
United Kingdom
SW1Y 4BP
Auditor
TC Group
6th Floor Kings House
9-10 Haymarket
London
United Kingdom
SW1Y 4BP
LEXINGTON COMMUNICATIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -

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

Fair review of the business

Overview Lexington had a good year in 2025, achieving stable growth as a group and delivering a strong margin. The operating environment remained challenging, shaped by ongoing macro economic uncertainty, geopolitical instability, and continued pressure on both public and private sector budgets. Clients also remained highly focused on value for money, impact, and measurable outcomes from consultancy support, with decision making cycles in some sectors remaining slow. At the same time, demand increased for senior strategic counsel in areas including political risk, regulatory change, crisis preparedness, healthcare policy, and corporate reputation, reflecting heightened scrutiny from governments, regulators, media and stakeholders. Lexington grew its foothold in core areas with a number of global clients and also increased its work in the US.

Principal risks and uncertainties

Lexington continues to operate in a complex and evolving risk environment. Key risks include:

• Macroeconomic volatility: Ongoing economic uncertainty in the UK and globally continues to impact client budgets and investment decisions.

• Geopolitical instability: International developments, particularly in the United States, Middle East and other key markets, may influence global economic confidence and policy direction.

• Client spending pressures: Both public and private sector clients are increasingly focused on cost efficiency, leading to tighter budgets and extended procurement cycles.

• Talent acquisition and retention: Competition for experienced professionals, particularly in specialist roles, remains a challenge.

Development and performance

Despite a difficult operating environment, Lexington achieved growth in key practice areas during 2025, particularly in public affairs, reputation and crisis work. Strategic changes to the senior leadership team were implemented during the year to better align the business with future growth opportunities. These changes are expected to support improved performance across the company in 2026 and we maintain a very big focus on maintaining a strong and collaborative company culture.

Lexington also continued its international expansion strategy, including ongoing investment in the Middle East and expansion of its US footprint through a strategic partnership established in 2024. These initiatives are designed to diversify revenue streams and reduce reliance solely on the UK market.

Key performance indicators

The company’s performance in 2025 is reflected in the following key metrics:

- Revenue: £11,764,314

- Profit (before tax and dividend): £2,363,506

- Headcount: 88

The flat headcount reflects a combination of efficiency measures introduced in response to market conditions, including a new resourcing tracking system as well as the introduction of an AI strategy and implementation programme across the whole company.

LEXINGTON COMMUNICATIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -

Outlook and Prospects

Looking ahead, Lexington is cautiously optimistic about market conditions in 2026. We believe Lexington is well-positioned to navigate ongoing uncertainties while capitalising on emerging opportunities, supporting sustainable growth in the year ahead.

While some economic and geopolitical uncertainties remain, the business expects increased demand for strategic advisory and reputation services across all its practices. The company remains committed to investing in its people, expanding its international presence – working more closely with sister companies within the kyu Collective and also within parent company, Hakuhodo - and delivering high-quality, impactful campaigns for its clients.

On behalf of the board

Mr M Craven
Director
17 April 2026
LEXINGTON COMMUNICATIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 4 -

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

Principal activities
The principal activity of the company continued to be that of business consultants.
Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £2,000,000. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr M Craven
E S Cook
Mr M Derr
Mr B Terrett
Lord D Stevenson
Mr A Hughes
(Resigned 31 March 2026)
Auditor

The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

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.

On behalf of the board
Mr M Craven
Director
17 April 2026
LEXINGTON COMMUNICATIONS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 5 -

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;

- 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.

LEXINGTON COMMUNICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LEXINGTON COMMUNICATIONS LIMITED
- 6 -
Opinion

We have audited the financial statements of Lexington Communications Limited (the 'company') for the year ended 31 December 2025 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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.

LEXINGTON COMMUNICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LEXINGTON COMMUNICATIONS LIMITED
- 7 -

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' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

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

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, 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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

LEXINGTON COMMUNICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LEXINGTON COMMUNICATIONS LIMITED
- 8 -

Our approach was as follows:

- We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;

- We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;

- We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;

- We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;

- We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities .This description forms part of our auditor’s report.

LEXINGTON COMMUNICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LEXINGTON COMMUNICATIONS LIMITED
- 9 -

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.

Philip Clark FCCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
28 April 2026
Office: London
LEXINGTON COMMUNICATIONS LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 10 -
2025
2024
Notes
£
£
Revenue
3
11,764,314
11,622,191
Cost of sales
(656,873)
(879,987)
Gross profit
11,107,441
10,742,204
Administrative expenses
(9,211,417)
(9,130,980)
Other operating income
280,596
202,636
Operating profit
5
2,176,620
1,813,860
Investment income
8
186,886
243,041
Profit before taxation
2,363,506
2,056,901
Tax on profit
9
(170,682)
193,298
Profit for the financial year
2,192,824
2,250,199

The income statement has been prepared on the basis that all operations are continuing operations.

LEXINGTON COMMUNICATIONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
- 11 -
2025
2024
£
£
Profit for the year
2,192,824
2,250,199
Other comprehensive income
-
-
Total comprehensive income for the year
2,192,824
2,250,199
LEXINGTON COMMUNICATIONS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2025
31 December 2025
- 12 -
2025
2024
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
11
171,926
210,303
Investments
12
25,502
25,502
197,428
235,805
Current assets
Trade and other receivables
14
5,947,703
4,891,750
Cash and cash equivalents
1,851,708
2,997,667
7,799,411
7,889,417
Current liabilities
15
(2,018,147)
(2,339,354)
Net current assets
5,781,264
5,550,063
Total assets less current liabilities
5,978,692
5,785,868
Provisions for liabilities
Deferred tax liability
16
40,666
40,666
(40,666)
(40,666)
Net assets
5,938,026
5,745,202
Equity
Called up share capital
18
270
270
Share premium account
372,921
372,921
Capital redemption reserve
120
120
Retained earnings
5,564,715
5,371,891
Total equity
5,938,026
5,745,202

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

The financial statements were approved by the board of directors and authorised for issue on 17 April 2026 and are signed on its behalf by:
Mr M Craven
Director
Company registration number 03634112 (England and Wales)
LEXINGTON COMMUNICATIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 13 -
Share capital
Share premium account
Capital redemption reserve
Retained earnings
Total
Notes
£
£
£
£
£
Balance at 1 January 2024
270
372,921
120
4,121,692
4,495,003
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
-
2,250,199
2,250,199
Dividends
10
-
-
-
(1,000,000)
(1,000,000)
Balance at 31 December 2024
270
372,921
120
5,371,891
5,745,202
Year ended 31 December 2025:
Profit and total comprehensive income
-
-
-
2,192,824
2,192,824
Dividends
10
-
-
-
(2,000,000)
(2,000,000)
Balance at 31 December 2025
270
372,921
120
5,564,715
5,938,026
LEXINGTON COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 14 -
1
Accounting policies
Company information

Lexington Communications Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor Kings House, 9-10 Haymarket, London, United Kingdom, SW1Y 4BP.

1.1
Accounting convention

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 a mounts 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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. T he company has therefore taken advantage of e xemptions from the following disclosure requirements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Kyu Investment (UK) Limited. These consolidated financial statements are available from its registered office, 6th Floor, Herbal House, 8 Back Hill, London, England, EC1R 5EN.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Lexington Communications Limited is a wholly owned subsidiary of Kyu Investment (UK) Limited and the results of Lexington Communications Limited are included in the consolidated financial statements of Kyu Investment (UK).

LEXINGTON COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 15 -
1.2
Going concern

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

1.3
Revenue

Revenue is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the provision of consultancy is recognised in the period to which that consultancy was provided.

1.4
Property, plant and equipment

Property, plant and equipment 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:

Leasehold improvements
Over term of lease
Fixtures, fittings & equipment
20% on cost
1.5
Non-current investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.6
Impairment of non-current assets

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).

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks.

LEXINGTON COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 16 -
1.8
Financial instruments

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

Financial instruments are recognised in the company's statement of financial position 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

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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.

Derecognition of financial assets

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.

LEXINGTON COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 17 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, 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 paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.9
Equity instruments

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.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

LEXINGTON COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 18 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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

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.

1.11
Employee benefits

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 non-current 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.

1.12
Retirement benefits

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

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income 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 lease asset are consumed.

1.14
Foreign exchange

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.

LEXINGTON COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 19 -
2
Judgements and key sources of estimation uncertainty

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.

In the opinion of the directors there are no significant judgements or areas of estimation uncertainty.

3
Revenue
2025
2024
£
£
Revenue analysed by class of business
Business consultancy
11,764,314
11,622,191
2025
2024
£
£
Revenue analysed by geographical market
United Kingdom
11,764,314
11,622,191
2025
2024
£
£
Other revenue
Interest income
36,886
43,041
Dividends received
150,000
200,000
4
Exceptional item

During the previous year, the company incurred exceptional costs of £335,827 relating to one-off staff costs. This has been included within administrative expenses. No similar costs were incurred in the current year.

LEXINGTON COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 20 -
5
Operating profit
2025
2024
Operating profit for the year is stated after charging:
£
£
Exchange losses
9,346
27,138
Fees payable to the company's auditor for the audit of the company's financial statements
11,000
11,000
Depreciation of owned property, plant and equipment
69,211
74,559
Operating lease charges
508,840
534,639
6
Employees

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

2025
2024
Number
Number
Consultants
80
67
Administration
8
7
Total
88
74

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
6,710,265
6,430,217
Social security costs
920,960
782,403
Pension costs
166,843
163,584
7,798,068
7,376,204
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
756,700
603,966
Company pension contributions to defined contribution schemes
5,000
-
761,700
603,966
LEXINGTON COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
7
Directors' remuneration
(Continued)
- 21 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
380,000
322,750
8
Investment income
2025
2024
£
£
Interest income
Interest on bank deposits
36,886
43,041
Income from fixed asset investments
Income from shares in group undertakings
150,000
200,000
Total income
186,886
243,041
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
573,869
403,187
Adjustments in respect of prior periods
(403,187)
(602,956)
Total current tax
170,682
(199,769)
Deferred tax
Origination and reversal of timing differences
-
0
6,471
Total tax charge/(credit)
170,682
(193,298)
LEXINGTON COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
9
Taxation
(Continued)
- 22 -

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

2025
2024
£
£
Profit before taxation
2,363,506
2,056,901
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
590,877
514,225
Tax effect of expenses that are not deductible in determining taxable profit
7,018
5,023
Tax effect of income not taxable in determining taxable profit
(37,500)
(50,000)
Adjustments in respect of prior years
(403,187)
(602,956)
Group relief
-
0
(68,041)
Effect of timing differences
13,474
1,980
Deferred tax movement
-
0
6,471
Taxation charge/(credit) for the year
170,682
(193,298)
10
Dividends
2025
2024
£
£
Interim paid
2,000,000
1,000,000
LEXINGTON COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 23 -
11
Property, plant and equipment
Leasehold improvements
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 January 2025
246,841
668,426
915,267
Additions
-
0
33,926
33,926
Disposals
-
0
(9,944)
(9,944)
At 31 December 2025
246,841
692,408
939,249
Depreciation and impairment
At 1 January 2025
185,786
519,178
704,964
Depreciation charged in the year
11,994
57,217
69,211
Eliminated in respect of disposals
-
0
(6,852)
(6,852)
At 31 December 2025
197,780
569,543
767,323
Carrying amount
At 31 December 2025
49,061
122,865
171,926
At 31 December 2024
61,055
149,248
210,303
12
Fixed asset investments
2025
2024
Notes
£
£
Investments in subsidiaries
13
25,502
25,502
13
Subsidiaries

Details of the company's subsidiaries at 31 December 2025 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Lexington North Limited
England and Wales
Ordinary shares
100.00
LEXINGTON COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 24 -
14
Trade and other receivables
2025
2024
Amounts falling due within one year:
£
£
Trade receivables
3,745,673
2,895,596
Corporation tax recoverable
131,600
766,927
Amounts owed by group undertakings
13,128
-
0
Other receivables
277,090
125,841
Prepayments and accrued income
1,780,212
1,103,386
5,947,703
4,891,750
15
Current liabilities
2025
2024
£
£
Trade payables
99,567
511,765
Taxation and social security
837,111
762,218
Other payables
100,973
109,414
Accruals and deferred income
980,496
955,957
2,018,147
2,339,354
16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
40,666
40,666
There were no deferred tax movements in the year.
LEXINGTON COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 25 -
17
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
166,843
163,584

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.

18
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.1p each
180,120
180,120
180
180
A Ordinary shares of 0.1p each
45,939
45,939
46
46
B Ordinary shares of 0.1p each
44,188
44,188
44
44
270,247
270,247
270
270
19
Operating lease commitments
Lessee

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:

2025
2024
£
£
Within one year
300,000
300,000
Between two and five years
125,000
425,000
425,000
725,000
20
Ultimate controlling party

The company's immediate parent company is Kyu Investment Limited, a company registered in the UK. The company's ultimate controlling parent is Hakuhodo DY Holdings, a company registered in Japan.

2025-12-31 2025-01-01 false false false CCH Software CCH Accounts Production 2026.100 Mr M Craven E S Cook Mr M Derr Mr B Terrett Lord D Stevenson Mr A Hughes 03634112 2025-01-01 2025-12-31 03634112 bus:Director1 2025-01-01 2025-12-31 03634112 bus:Director2 2025-01-01 2025-12-31 03634112 bus:Director3 2025-01-01 2025-12-31 03634112 bus:Director4 2025-01-01 2025-12-31 03634112 bus:Director5 2025-01-01 2025-12-31 03634112 bus:Director6 2025-01-01 2025-12-31 03634112 bus:RegisteredOffice 2025-01-01 2025-12-31 03634112 2025-12-31 03634112 2024-01-01 2024-12-31 03634112 core:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 03634112 core:RetainedEarningsAccumulatedLosses 2025-01-01 2025-12-31 03634112 2024-12-31 03634112 core:LeaseholdImprovements 2025-12-31 03634112 core:FurnitureFittings 2025-12-31 03634112 core:LeaseholdImprovements 2024-12-31 03634112 core:FurnitureFittings 2024-12-31 03634112 core:CurrentFinancialInstruments core:WithinOneYear 2025-12-31 03634112 core:CurrentFinancialInstruments core:WithinOneYear 2024-12-31 03634112 core:ShareCapital 2025-12-31 03634112 core:ShareCapital 2024-12-31 03634112 core:SharePremium 2025-12-31 03634112 core:SharePremium 2024-12-31 03634112 core:CapitalRedemptionReserve 2025-12-31 03634112 core:CapitalRedemptionReserve 2024-12-31 03634112 core:RetainedEarningsAccumulatedLosses 2025-12-31 03634112 core:RetainedEarningsAccumulatedLosses 2024-12-31 03634112 core:ShareCapital 2023-12-31 03634112 core:SharePremium 2023-12-31 03634112 core:CapitalRedemptionReserve 2023-12-31 03634112 core:RetainedEarningsAccumulatedLosses 2023-12-31 03634112 core:ShareCapitalOrdinaryShareClass1 2025-12-31 03634112 core:ShareCapitalOrdinaryShareClass1 2024-12-31 03634112 core:ShareCapitalOrdinaryShareClass2 2025-12-31 03634112 core:ShareCapitalOrdinaryShareClass2 2024-12-31 03634112 core:ShareCapitalOrdinaryShareClass3 2025-12-31 03634112 core:ShareCapitalOrdinaryShareClass3 2024-12-31 03634112 core:ShareCapitalOrdinaryShares 2025-12-31 03634112 core:ShareCapitalOrdinaryShares 2024-12-31 03634112 core:LeaseholdImprovements 2025-01-01 2025-12-31 03634112 core:FurnitureFittings 2025-01-01 2025-12-31 03634112 core:UKTax 2025-01-01 2025-12-31 03634112 core:UKTax 2024-01-01 2024-12-31 03634112 1 2025-01-01 2025-12-31 03634112 1 2024-01-01 2024-12-31 03634112 2 2025-01-01 2025-12-31 03634112 2 2024-01-01 2024-12-31 03634112 core:LeaseholdImprovements 2024-12-31 03634112 core:FurnitureFittings 2024-12-31 03634112 2024-12-31 03634112 core:Non-currentFinancialInstruments 2025-12-31 03634112 core:Non-currentFinancialInstruments 2024-12-31 03634112 core:Subsidiary1 2025-01-01 2025-12-31 03634112 core:Subsidiary1 1 2025-01-01 2025-12-31 03634112 core:CurrentFinancialInstruments 2025-12-31 03634112 core:CurrentFinancialInstruments 2024-12-31 03634112 bus:OrdinaryShareClass1 2025-01-01 2025-12-31 03634112 bus:OrdinaryShareClass2 2025-01-01 2025-12-31 03634112 bus:OrdinaryShareClass3 2025-01-01 2025-12-31 03634112 bus:OrdinaryShareClass1 2025-12-31 03634112 bus:OrdinaryShareClass1 2024-12-31 03634112 bus:OrdinaryShareClass2 2025-12-31 03634112 bus:OrdinaryShareClass2 2024-12-31 03634112 bus:OrdinaryShareClass3 2025-12-31 03634112 bus:OrdinaryShareClass3 2024-12-31 03634112 bus:AllOrdinaryShares 2025-12-31 03634112 bus:AllOrdinaryShares 2024-12-31 03634112 core:WithinOneYear 2025-12-31 03634112 core:WithinOneYear 2024-12-31 03634112 core:BetweenTwoFiveYears 2025-12-31 03634112 core:BetweenTwoFiveYears 2024-12-31 03634112 bus:PrivateLimitedCompanyLtd 2025-01-01 2025-12-31 03634112 bus:FRS102 2025-01-01 2025-12-31 03634112 bus:Audited 2025-01-01 2025-12-31 03634112 bus:FullAccounts 2025-01-01 2025-12-31 xbrli:pure xbrli:shares iso4217:GBP