The directors present the strategic report for the year ended 31 August 2025.
Nature of the Group
MMR Holdings Limited (company number 03477965, incorporated in England and Wales) is the ultimate parent of a privately owned group of companies headquartered at Llanelli Gate Business Park, Dafen, Llanelli, Wales. The group operates across two principal and complementary areas of activity: the provision of workforce services and specialist contract services to commercial customers across the United Kingdom, and the acquisition, development and management of a commercial and residential investment property portfolio in Wales.
Trading Subsidiaries
The group's trading activities are conducted through three operating subsidiaries. Databail Limited, providing workforce and specialist cleaning services, Securicall UK Limited, providing security guarding, commercial cleaning and facilities services, and CSA Site Services Limited providing plant, vehicle and equipment hire.
Property Investment and Development
MMR Holdings directly owns and manages a portfolio of investment properties. The portfolio comprises commercial property — principally industrial estates, trade counter units, office accommodation and open yard space available for commercial let — together with a portfolio of residential properties located in Wales.
Group Strategy
The group's overarching strategy is to build long-term, sustainable value for shareholders through two reinforcing activities: growing a profitable, compliant and well-regarded workforce services and contract services business in Wales and the wider UK, and compounding the group's capital base through disciplined property acquisition and development.
The directors do not seek rapid growth at the expense of quality, compliance or financial discipline. The group grows where it has demonstrable competitive advantage and invests in property where it can add value through active development rather than passive holding.
Mission and Values
Our mission
Our mission across the Group is to create safe, hygienic spaces in which we place people first.
This mission drives our approach to building a profitable and diversified group of businesses — one that supports our customers, our people and our partners at every point of engagement.
Our mission resonates across every aspect of what we do: whether supporting a client with front-line production colleagues, or providing a growing business with its first commercial space. The common thread is a commitment to enabling the people and organisations we work with to thrive.
We build long-term business partnerships. Our purpose is to allow our customers to focus on what they do best, while we take care of the surrounding requirements — labour supply, security, facilities services and property — with the same rigour and professionalism we apply to our own business.
In doing so, we aim to create a genuinely circular group: one where our customers are well served, our divisions support one another, and the strength of each part of the business reinforces the whole.
Our Values
The group's activities are guided by four core values that define how it operates and how it engages with clients, workers, partners and communities:
Communication — open, honest and timely communication with all stakeholders, underpinning trust and effective working relationships.
Professionalism — maintaining the highest standards of conduct, compliance and service quality across every division and every client interaction.
Thoughtfulness — considered decision-making that recognises the impact of the group's activities on its workers, clients, communities and the wider environment.
Delivery — a consistent focus on doing what we say we will do, meeting our commitments to clients and creating the conditions for long-term partnership.
The year ended 31 August 2025 was a year of continued growth and capital value creation for the group. Consolidated revenues grew strongly year on year, and the investment property portfolio increased in value in-line with expectations. The results reflect both the operational performance of the trading subsidiaries and the continued execution of the group's property development strategy.
The directors monitor the group's performance against a number of financial key performance indicators. The principal measures used are set out below.
| FY2025 | FY2024 | FY2023 |
Turnover | £18,977,822 | £16,275,624 | £11,620,998 |
Gross profit | £3,063,940 | £2,886,181 | £2,505,264 |
Gross profit % | 16.14% | 17.73% | 21.56% |
Profit before tax | £2,721,866 | £1,672,717 | £1,742,860 |
Profit before tax % | 14.34% | 10.28% | 15.00% |
Net assets | £12,400,574 | £10,606,197 | £9,695,378 |
The directors have identified the following principal risks and uncertainties that could affect the group's ability to execute its strategy or achieve its financial objectives. The group manages these risks through a combination of operational controls, contractual protections, regulatory compliance and financial management.
Employment Cost and Statutory Wage Inflation
The group's workforce services businesses are highly sensitive to changes in statutory minimum wage rates and associated employment costs. Annual increases to the National Living Wage, employer National Insurance contributions, and changes introduced by the Employment Rights Act 2025 create ongoing upward pressure on the cost of service delivery. The group mitigates this risk through proactive contract pricing reviews and operational efficiency improvements. Failure to pass through cost increases in a timely manner has a direct and material impact on gross margins.
Property Market and Valuation Risk
Changes in commercial property market conditions, including changes in yield rates, tenant demand, and general economic conditions in Wales, could result in revaluation decreases in future periods. The group mitigates this risk through portfolio diversification across property types and tenants, active asset management, and a conservative approach to debt financing.
Interest Rate and Financing Risk
The group's property portfolio is financed in part by bank borrowings, and changes in interest rates affect the cost of servicing these facilities. The group monitors its financing costs and maintains close relationships with its banking counterparties.
Client Concentration and Contract Risk
The workforce services divisions serve a range of customers across various sectors. The loss of one or more significant contracts could have a material impact on revenue and profitability. The group manages this risk through diversification of its client base, investment in service quality, and the development of long-term contractual relationships with key clients.
The directors of MMR Holdings Limited are required by section 172 of the Companies Act 2006 to act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, having regard to the matters set out in that section. The principal matters to which the directors have had regard in discharging this duty during the year are set out below.
Long-Term Consequences of Decisions
The directors' approach to both the trading and property activities of the group is deliberately long-term. Investment decisions in the property portfolio — particularly the acquisition and development of underutilised commercial sites — are evaluated over multi-year horizons and are intended to create durable capital value rather than short-term returns. The directors have maintained this long-term orientation throughout the year, including accepting that development projects in progress carry value that will only be reflected in the accounts upon completion and letting.
Workers and Engagement
During the year, the group engaged over 1,700 workers across all trading entities, reflecting the significant scale of its workforce operations and its role as a major engager of labour across the regions in which it operates. This figure encompasses directly engaged staff, temporary agency workers placed with clients, and short-term assignments, and reflects the breadth and flexibility of the group's workforce services model. The directors recognise that the group's people are central to its ability to deliver quality services to customers and to maintain its regulatory standing. The group is committed to fair working practices, compliance with all applicable employment and agency worker legislation, and the provision of a safe and respectful working environment. During the year the group invested in staff training and recruitment infrastructure to support its growth.
Disabled Persons
The group's policy is to recruit disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once engaged, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining workers who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.
Relationships with Suppliers and Customers
The group maintains positive long-term relationships with its key customers and suppliers. The directors are mindful that the group's reputation for reliability, compliance and service quality is a principal competitive asset in regulated sectors such as food industry labour supply and security guarding. Commercial decisions, including pricing reviews and contract negotiations, are conducted with due regard for the long-term health of these relationships.
Impact on the Community and Environment
The directors are conscious of the group's role as a significant local employer and its impact on the communities in which it operates. The group actively supports grassroots sport and community life in the region, providing sponsorship to a number of local clubs. The directors regard this community investment as an integral part of the group's identity and values.
The group also participates in social value initiatives, recognising the importance of measurable community benefit in its commercial and procurement activities. Where relevant, the group supports clients and contracting authorities in meeting their social value objectives through its recruitment and employment practices, including the provision of employment opportunities to individuals facing barriers to work.
The group's property development activities have a particular community dimension: the redevelopment of disused and dilapidated industrial sites into productive, let commercial estates contributes to the regeneration of the local economy and the improvement of the built environment in Wales. The group is committed to operating responsibly and to considering the broader impact of its activities on the communities it serves.
Maintaining a Reputation for High Standards
The directors place significant value on the group's regulatory accreditations and its reputation for operating to high standards of compliance and governance. The GLAA licence and SIA ACS status held by the trading subsidiaries require ongoing adherence to exacting regulatory standards, and the directors regard the maintenance of these accreditations as a core responsibility.
Environmental Matters
The group is committed to conducting its operations in an environmentally responsible manner and maintains a formal environmental policy which applies across its activities. The group complies with all applicable environmental legislation and regulation, including all legally required environmental assessments in connection with its property development and acquisition activities. The group monitors its energy consumption and waste management practices across its operational sites and seeks to minimise its environmental impact where practicable.
On behalf of the board
The directors present their annual report and the audited consolidated financial statements for the year ended 31 August 2025.
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £251,858. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
In accordance with the company's articles, a resolution proposing that Harris Bassett Limited be reappointed as auditor of the group will be put at a General Meeting.
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of MMR Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2025 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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 and non-compliance with laws and regulations, are set out below.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
Results of our enquiries of management about their own identification and assessment of the risks of irregularities;
The nature of the industry and sector, control environment and business performance;
Any matters we identified having obtained and reviewed the group’s policies and procedures relating to:
Identifying, evaluation and complying with laws and regulations and whether they were aware of any instances of noncompliance;
Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
The matters discussed among the audit engagement team including component audit teams regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation.
Audit response to risks identified
Our procedures to respond to risks identified included the following:
Enquiry of management around potential litigation and claims.
Enquiry of entity staff to identify any instances of non-compliance with laws and regulations.
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness; and assessing whether the judgements made in making accounting estimates are indicative of a potential bias.
Our audit testing typically involves selecting a limited number of items for testing, rather than testing complete populations. We will often seek to target particular items for testing based on their size or risk characteristics. In other cases, we will use audit sampling to enable us to draw a conclusion about the population from which the sample is selected.
We also communicated relevant laws and regulations and potential fraud risks to all engagement team members and component audit teams, and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The income statement has been prepared on the basis that all operations are continuing operations.
As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £1,620,578 (2024 - £746,978 profit).
MMR Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Llanelli Gate Business Park, Dafen, Llanelli, Carmarthenshire, SA14 8LQ.
The group consists of MMR Holdings Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
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’ – Carrying amounts, 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 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The consolidated financial statements incorporate those of MMR Holdings Limited and all of its material subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 31 August 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Revenue is recognised at the fair value of the consideration received or receivable for goods and 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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include 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.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or 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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
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.
An analysis of the group's revenue is as follows:
All revenue was generated within the United Kingdom during the reporting period.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Investment property comprises residential property formerly occupied by employees within the group and more recently commercial land acquired for rental or development purposes. The fair value of the investment property has been arrived at on the basis of valuations carried out periodically since May 2016 by Lambert Smith Hampton Chartered Surveyors, and in May 2025 by Savilles Chartered Surveyors, neither of whom are connected with the company. The valuations were made on an open market value basis by reference to market evidence of transaction prices for similar properties. The director considers that the valuations reflect fair value at the year end.
Details of the company's subsidiaries at 31 August 2025 are as follows:
The registered office of the subsidiaries is Llanelli Gate Business Park, Dafen, Llanelli SA14 8LQ.
NewEuropeanstaff.com Limited is excluded from the consolidated accounts as it is dormant and immaterial.
The gross trade receivables under the debt factoring arrangement amount to £1,181,282 (2024: £876,996) within the group and nil within the company.
The amounts received under the debt factoring arrangements are included in current liabilities.
The invoice discounting facility for the group is secured on the book debts of Databail Limited and Securicall (UK) Limited.
The long-term loans are secured by fixed charges over the investment properties owned by the group. Interest rates on the loans are a combination of both fixed and variable rates.
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
The deferred tax asset set out above is expected to reverse within 24 months and relates to decelerated capital allowances. The deferred tax liability set out above relates in part to accelerated capital allowances that are expected to reverse within the short term and provision for tax on property gains should those properties be disposed of.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Called up share capital - represents the nominal value of shares that have been issued.
Other reserves - represents the revaluation surplus arising on the reclassification of the group/company's properties as Investment Properties and is a non-distributable reserve.
Retained earnings - represents the accumulated profits, losses and distributions of the group/company.
The group rents its premises from the MMR Holdings Limited Retirement Benefits Scheme. Rent for the group amounted to £44,000 (company £6,000). There is no formal lease agreement in place.
At the year end, a creditor of £210,275 (2024: £2,270 debtor) was owed to MMR Holdings Ltd RBS, a related entity.
At the year end, a debtor of £103,445 (2024: £103,445) was owed by Swihart-Rees Limited, a company connected by virtue of family relationship to the group director.
At the year end, a debtor of £989,035 (2024: £1,095,273) was owed by Rees Building & Development Ltd, a company controlled by the group director.
At the year end, a debtor of £9,734 (2024: £9,734) was owed by Farmer Rees, a company controlled by the group director.
At the year end, a debtor of £2,985 (2024: £2,985) was owed by Labourforce, a company controlled by the group director.
At the year end, a debtor of £587,981 (2024: £183,366 creditor) was owed by Blackhorse Marketing Limited, a company controlled by the group director.
At the year end, the director owed the company £772,638 (2024: £669,519) these loans are interest-free, unsecured and repayable on demand.