Company No:
Contents
| DIRECTORS | Hayley Zena Charles |
| Michelle Clare Church | |
| Gemma Grima-Brown | |
| Zowie Melville | |
| Joseph William Martin Neilson | |
| Denis John William Simpson | |
| Michael Swaby | |
| Anthony Webster |
| SECRETARY | Michael Swaby |
| REGISTERED OFFICE | 10-12 Alie Street |
| London | |
| E1 8DE | |
| United Kingdom |
| COMPANY NUMBER | 02477115 (England and Wales) |
| AUDITOR | Praxis |
| Statutory Auditor | |
| 1 Fore Street Avenue | |
| London | |
| EC2Y 9DT | |
| United Kingdom |
The directors present their Strategic Report for the financial year ended 30 September 2025.
REVIEW OF THE BUSINESS
Career Legal delivered a resilient financial performance in the year, with profitability and margin quality improving against a backdrop of continued strategic investment. The Company recorded a pre-tax profit of £471,675 (2024: £524,174) and revenues of £12,212,543 (2024: £12,753,328). Whilst total revenues reflect a modest reduction year-on-year, this is attributable in part to a deliberate shift in mix as the business invests in building its higher-margin permanent placement capability, most notably through the establishment of our new US operation, rather than maximising short-term volume in lower-margin temporary staffing. Gross profit increased to £4,818,383 (2024: £4,670,434), with the gross profit margin expanding meaningfully to 40% (2024: 36%). This improvement in margin quality directly reflects the Company’s strategic priorities and demonstrates the underlying strength of the business.
The most significant development of the financial year has been the successful launch of our US operations, with a dedicated office now established in New York. This represents a transformative step for Career Legal, extending our reach into one of the world’s largest and most dynamic legal markets. The US business is currently focused on permanent placement services, an intentional and prudent approach that allows us to build client relationships and market presence whilst managing operational complexity. The payrolling of temporary and contract workers in the US, where employment legislation is materially more complex, will be handled in partnership with a specialist provider, ensuring full compliance across federal and state requirements without the need to build that infrastructure in-house at this stage. Early trading from the New York office has been encouraging, and we anticipate it making an increasingly meaningful contribution to Group revenues in the 2026 financial year.
International revenues from the UK entity also grew strongly, with turnover outside the United Kingdom increasing to £287,857 (2024: £90,819), reflecting the growing global demand for Career Legal’s specialist legal recruitment expertise and the broadening reach of our client relationships across North America, the Middle East, Asia, and beyond.
KEY PERFORMANCE INDICATORS ('KPIS')
Given the straightforward nature of the business, the Company’s Directors consider the use of additional KPIs unnecessary for understanding the business's performance or position. The directors consider gross profit margin, pre-tax profit, and net cash position to be the primary measures of financial health, all of which improved or remained stable during the year.
PRINCIPAL RISKS AND UNCERTAINTIES
The Company has identified the following principal risks and corresponding mitigation strategies:
1. Economic Uncertainty
Risk: Fluctuations in the UK and US economies may impact the legal sector’s recruitment needs, particularly in markets where we have recently established a presence.
Mitigation: Diversification of client base across various legal specialties and geographical regions, including our new US operations and growing international client base, reduces dependency on any single market segment.
2. International Expansion Risk
Risk: Establishing and scaling new US operations in New York introduces execution risks including regulatory compliance, local employment law, and cultural differences in recruitment practice.
Mitigation: In the initial phase, the US business operates on a permanent placement-only model, materially reducing regulatory exposure. Temporary worker payrolling is outsourced to a specialist partner. The Board maintains close oversight of the New York operation and will evaluate the appropriate timing for bringing additional service lines in-house as the business scales.
3. Competitive Pressure
Risk: Increased competition in the legal recruitment sector both in the UK and in international markets, including well-established US-based competitors.
Mitigation: Continued investment in staff training, technology, and specialist expertise to maintain our competitive advantage, leveraging our established UK reputation in new markets.
4. Regulatory Changes
Risk: Changes to employment legislation affecting the recruitment sector across multiple jurisdictions, particularly in the US where federal and state-level requirements differ significantly from UK regulation.
Mitigation: Regular staff training, engagement with legal experts in each jurisdiction, and ongoing monitoring of regulatory developments to ensure compliance across all markets.
5. Talent Acquisition and Retention
Risk: Challenges in attracting and retaining skilled recruitment consultants, particularly as we build our New York team in a competitive US labour market.
Mitigation: Comprehensive employee development programmes and competitive remuneration packages tailored to each market, supported by a strong company culture and clear career progression frameworks.
6. Foreign Currency Exposure
Risk: With revenues now being generated in US Dollars and other currencies, the Company is increasingly exposed to foreign exchange movements which could impact reported Sterling results.
Mitigation: Regular review of currency exposures and, where appropriate, use of natural hedging and treasury management practices to mitigate the impact of exchange rate fluctuations.
DEVELOPMENT AND PERFORMANCE
The Company has performed strongly during the 2025 financial year. Profitability was maintained and margin quality improved, reflecting the success of our focus on higher-value permanent placement activity and the continued strength of our core legal support staffing capability. Our dedicated teams have deepened relationships with existing clients whilst actively developing new business across both domestic and international markets.
The establishment of our New York office during the financial year represents the most significant operational milestone in Career Legal’s recent history. The US market offers substantial long-term opportunity, and our early positioning — focused on permanent placements with the flexibility to broaden the service offering in due course — has been well-received. Initial client and candidate engagement has been positive, and the foundations laid during this financial year provide a strong platform for growth in FY2026 and beyond.
Beyond North America, the UK entity has seen substantial growth in international mandates, as global law firms increasingly look to Career Legal to support cross-border hiring requirements. This trend is expected to continue, underpinned by our established reputation and the broader global demand for specialist legal recruitment expertise.
During the financial year, we continued to invest in our technological infrastructure to improve efficiency in candidate matching and client service delivery across all geographies. These investments are expected to yield further operational improvements in the upcoming financial year.
FUTURE DEVELOPMENTS
Looking ahead to the 2026 financial year, the Company has identified several strategic initiatives:
1. US Operations Growth
Consolidation and scaling of the New York permanent placement business, including investment in local talent, brand development, and deepening client relationships with US-based law firms and in-house legal teams. As the business matures, the Company will evaluate the appropriate timing to expand its US service offering, including the potential internalisation of temporary worker payrolling currently managed through our specialist partner.
2. International Expansion
Continued evaluation of further international market opportunities, with particular focus on Dubai, Singapore, Hong Kong, and Australia, to capitalise on growing global demand for legal recruitment services and to support clients’ international operations.
3. Service Diversification
Development of new service offerings including qualified lawyer recruitment and specialised cyber security staffing solutions to complement our existing expertise.
4. Technology Investment
Continued enhancement of our digital platforms to improve candidate sourcing and client engagement across all markets.
The directors are confident that these initiatives, combined with our established market position, growing international profile, and experienced team, will support continued growth in the 2026 financial year despite the competitive landscape.
CORPORATE SOCIAL RESPONSIBILITY
The Company remains committed to ethical business practices, diversity in recruitment, and supporting the legal community through participation in industry events and educational initiatives. As we expand internationally, we are committed to upholding these values consistently across all markets in which we operate.
CONCLUSION
Career Legal enters the 2026 financial year in a position of confidence. Pre-tax profit held firm at £471,765 (2024: £524,174) and gross profit margin expanded to 40%, the highest in the Company’s recent history, demonstrating that the business is not only resilient but improving in quality. The establishment of our US operations marks a transformative step, and the growth in international revenues from the UK entity underlines the depth and global reach of our reputation. Our strategic focus on service excellence, team development, and disciplined international expansion provides a strong foundation for sustainable performance in the years ahead.
Approved by the Board of Directors and signed on its behalf by:
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Denis John William Simpson
Director |
The directors present their annual report on the affairs of the Company, together with the financial statements and auditors’ report, for the financial year ended 30 September 2025.
PRINCIPAL ACTIVITIES
GOING CONCERN
REVIEW OF THE BUSINESS
Turnover for the financial year amounted to £12,212,543 (2024: £12,753,328). The Company earned a profit after taxation totalling £381,013 (2024: £377,215).
The net current asset position of the Company as at the financial year end amounted to £2,039,820 (2024: net current asset £1,973,146).
The net asset position of the Company as at the financial year end amounted to £2,098,416 (2024: net asset £2,037,403).
DIVIDENDS
The directors paid a dividend of £320,000 in the current financial year (2024: £150,000).
DIRECTORS
The directors, who served during the financial year and to the date of this report except as noted, were as follows:
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FINANCIAL INSTRUMENTS
The company’s financial instruments primarily comprise cash and cash equivalents and trade receivables and payables. The main purpose of these instruments is to manage the working capital requirements and fund operational activities. The company does not trade in financial instruments, nor does it enter into speculative derivative transactions.
AUDITOR
Each of the persons who is a director at the date of approval of this report confirms that:
* So far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware; and
* The director has taken all the steps that they ought to have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
Praxis have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditors in the absence of an Annual General Meeting.
Approved by the Board of Directors and signed on its behalf by:
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Denis John William Simpson
Director |
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), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that financial 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;
* State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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. The directors 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.
Report on the audit of the financial statements
In our opinion the financial statements of Career Legal Limited (the 'Company'):
* Give a true and fair view of the state of the Company's affairs as at 30 September 2025 and of its profit for the financial year then ended;
* Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and
* Have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
* The Statement of Income and Retained Earnings;
* The Balance Sheet;
* The Statement of Cash Flows; and
* The related notes 1 to 21.
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
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 Financial Reporting Council's (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.
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.
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.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, 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.
We considered the nature of the Company’s industry and its control environment, and reviewed the Company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework(s) that the Company operates in, and identified the key laws and regulations that:
* had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act, pensions legislation, tax legislation; and
* do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
* reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
* performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
* enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
* reading minutes of meetings of those charged with governance.
Report on other legal and regulatory requirements
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 have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified any material misstatements in the Strategic Report or the Directors' Report.
Under the Companies Act 2006 we are required to report in respect of the following matters 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.
We have nothing to report in relation to this.
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.
For and on behalf of
Statutory Auditor
London
EC2Y 9DT
United Kingdom
| Note | 2025 | 2024 | ||
| £ | £ | |||
| Turnover | 3 |
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| Cost of sales | (
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| Gross profit |
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| Administrative expenses | (
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| Other operating income | 4 |
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| Operating profit |
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| Interest receivable and similar income | 5 |
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| Interest payable and similar expenses | 5 | (
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| Profit before taxation | 6 |
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| Tax on profit | 10 | (
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| Profit for the financial year |
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| Retained earnings at the beginning of financial year |
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| Profit for the financial year |
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| Dividends declared and paid | (
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| Retained earnings at the end of financial year |
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There were no items of other comprehensive income or losses for the current or prior year other than those included in the Statement of Income and Retained Earnings, accordingly no Statement of Comprehensive Income is presented.
| Note | 2025 | 2024 | ||
| £ | £ | |||
| Fixed assets | ||||
| Intangible assets | 11 |
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| Tangible assets | 12 |
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| Investments | 13 |
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| 58,596 | 64,257 | |||
| Current assets | ||||
| Debtors | ||||
| - due within one year | 14 |
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| - due after more than one year | 14 |
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| Cash at bank and in hand |
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| 3,356,249 | 3,226,511 | |||
| Creditors: amounts falling due within one year | 15 | (
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| Net current assets | 2,039,820 | 1,973,146 | ||
| Total assets less current liabilities | 2,098,416 | 2,037,403 | ||
| Net assets | 2,098,416 | 2,037,403 | ||
| Capital and reserves | 17 | |||
| Called-up share capital |
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| Profit and loss account |
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| Total shareholders' funds | 2,098,416 | 2,037,403 |
The financial statements of Career Legal Limited (registered number:
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Denis John William Simpson
Director |
| 2025 | 2024 | ||
| £ | £ | ||
| Net cash flows from operating activities (note 19) |
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| Cash flows from investing activities | |||
| Purchase of fixed assets | (19,988) | (25,587) | |
| Payments/repayments for loans to staff | 22,518 | (45,000) | |
| Net cash flows from investing activities |
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| Cash flows from financing activities | |||
| Dividend payments | (320,000) | (150,000) | |
| Finance lease payments | (3,388) | (3,388) | |
| Net cash flows from financing activities | (
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| Net increase/(decrease) in cash and cash equivalents |
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| Cash and cash equivalents at beginning of year |
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| Cash and cash equivalents at end of year |
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| Reconciliation to cash at bank and in hand: | |||
| Cash at bank and in hand at end of year |
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The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Career Legal Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is 10-12 Alie Street, London, E1 8DE, England, United Kingdom.
The principal activities are set out in the Directors' Report.
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Financial Reporting Standard 102 (FRS 102) applicable in the UK and Republic of Ireland issued by the Financial Reporting Council and the requirements of the Companies Act 2006.
The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.
The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
The Company's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company is now profitable in the current period and can operate within the level of its current invoice finance facility. Therefore, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Defined contribution schemes
For defined contribution schemes the amounts charged to the Statement of Income and Retained Earnings in respect of pension costs and other post-retirement benefits are the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are shown as either accruals or prepayments in the Balance Sheet.
Other long-term employee benefits are measured at the present value of the benefit obligation at the reporting date.
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
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| Fixtures and fittings |
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The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
The Company as lessee
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.
Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Income and Retained Earnings as described below.
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
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.
Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, or the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the financial year in which the estimate is revised if the revision affects only that financial year, or in the financial year of the revision and future financial years if the revision affects both current and future financial years.
The directors do not consider that any critical judgements have been made in the application of the Company's accounting policies and no key sources of estimation uncertainty have been identified that have a significant risk of causing a material misstatement to the carrying amount of assets and liabilities within the financial year.
Breakdown by geographical market:
An analysis of the Company's turnover by geographical market is set out below.
| 2025 | 2024 | ||
| £ | £ | ||
| United Kingdom | 11,924,686 | 12,662,509 | |
| North America | 171,538 | 47,855 | |
| Rest of World | 116,319 | 42,964 | |
| 12,212,543 | 12,753,328 |
| 2025 | 2024 | ||
| £ | £ | ||
| Sundry income |
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| 2025 | 2024 | ||
| £ | £ | ||
| Interest receivable and similar income |
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| Interest payable and similar expenses | (
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| 19,521 | 1,325 |
Profit before taxation is stated after charging/(crediting):
| 2025 | 2024 | ||
| £ | £ | ||
| Depreciation of tangible fixed assets (note 12) |
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| Amortisation of intangible assets (note 11) |
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| Operating lease rentals |
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An analysis of the auditor's remuneration is as follows:
| 2025 | 2024 | ||
| £ | £ | ||
| Fees payable to the Company’s auditor and its associates for the audit of the Company's annual financial statements: | 18,000 | 17,000 | |
| Total audit fees |
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No services were provided pursuant to contingent fee arrangements.
| 2025 | 2024 | ||
| Number | Number | ||
| The average monthly number of employees (including directors) was: | |||
| Management |
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| Administration |
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| Sales |
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| Contractors |
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Their aggregate remuneration comprised:
| 2025 | 2024 | ||
| £ | £ | ||
| Wages and salaries |
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| Social security costs |
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| Other retirement benefit costs |
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| 2,563,557 | 2,462,343 |
| 2025 | 2024 | ||
| £ | £ | ||
| Directors' emoluments |
|
|
|
| Company contributions to money purchase pension schemes |
|
|
|
| 800,596 | 740,269 |
Remuneration of the highest paid director
| 2025 | 2024 | ||
| £ | £ | ||
| Director's emoluments | 180,894 | 169,904 | |
| Company contributions to money purchase schemes | 1,321 | 1,321 | |
| 182,214 | 171,225 |
The highest paid director did not exercise any share options in the year and had no shares receivable under long-term incentive schemes.
| 2025 | 2024 | ||
| £ | £ | ||
| Current tax on profit | |||
| UK corporation tax |
|
|
|
| Total current tax |
|
|
|
| Deferred tax | |||
| Origination and reversal of timing differences |
|
|
|
| Total deferred tax |
|
|
|
| Total tax on profit |
|
|
The tax assessed for the year is higher than (2024: higher than) the standard rate of corporation tax in the UK:
| 2025 | 2024 | ||
| £ | £ | ||
| Profit before taxation | 528,348 | 524,174 | |
| Tax on profit at standard UK corporation tax rate of 25% (2024: 25%) |
|
|
|
| Effects of: | |||
| Expenses not deductible for tax purposes |
|
|
|
| Change in unrecognised deferred tax assets |
|
(
|
|
| Adjustments in respect of prior years | (
|
(
|
|
| - Effect of marginal rate - Rate of 25% effective 1 April 2023 | 0 | 0 | |
| Capital allowances in excess of depreciation | 0 | 1,280 | |
| Other deductions and reliefs | (1,969) | 0 | |
| Total tax charge for year | 147,335 | 146,959 |
| Computer software | Total | ||
| £ | £ | ||
| Cost | |||
| At 01 October 2024 |
|
|
|
| Additions |
|
|
|
| At 30 September 2025 |
|
|
|
| Accumulated amortisation | |||
| At 01 October 2024 |
|
|
|
| Charge for the financial year |
|
|
|
| At 30 September 2025 |
|
|
|
| Net book value | |||
| At 30 September 2025 |
|
|
|
| At 30 September 2024 |
|
|
| Leasehold improve- ments |
Fixtures and fittings | Computer equipment | Total | ||||
| £ | £ | £ | £ | ||||
| Cost | |||||||
| At 01 October 2024 |
|
|
|
|
|||
| Additions |
|
|
|
|
|||
| At 30 September 2025 |
|
|
|
|
|||
| Accumulated depreciation | |||||||
| At 01 October 2024 |
|
|
|
|
|||
| Charge for the financial year |
|
|
|
|
|||
| At 30 September 2025 |
|
|
|
|
|||
| Net book value | |||||||
| At 30 September 2025 | 0 | 21,747 | 29,840 | 51,587 | |||
| At 30 September 2024 | 0 | 23,678 | 34,041 | 57,719 |
| 2025 | 2024 | ||
| £ | £ | ||
| Subsidiary undertakings |
|
|
Investments in subsidiaries
| 2025 | |
| £ | |
| Cost | |
| At 01 October 2024 |
|
| Additions |
|
| At 30 September 2025 |
|
| Carrying value at 30 September 2025 |
|
| Carrying value at 30 September 2024 |
|
Investments in shares
| Name of entity | Registered office | Principal activity | Class of shares |
Ownership 30.09.2025 |
Held |
|
|
244 Fifth Avenue, Suite 1424 New York, NY, 10001 | Recruitment consultancy |
|
|
Direct |
| 2025 | 2024 | ||
| £ | £ | ||
| Debtors: amounts falling due within one year | |||
| Trade debtors |
|
|
|
| Other debtors |
|
|
|
| Prepayments and accrued income |
|
|
|
| Amounts owed by directors |
|
|
|
|
|
|
||
| Debtors: amounts falling due after more than one year | |||
| Other debtors |
|
|
|
| Amounts owed by directors |
|
|
|
| Deferred tax asset |
|
|
|
|
|
|
The remaining amounts owed to directors bear no interest and are repayable on demand.
There is a fixed and floating charge with Barclays Bank PLC over Trade Debtors in respect of debt factoring services.
| 2025 | 2024 | ||
| £ | £ | ||
| Obligations under finance leases and hire purchase contracts |
|
|
|
| Directors loans |
|
|
|
| Trade creditors |
|
|
|
| Amounts owed to own subsidiaries |
|
|
|
| Payroll taxes payable |
|
|
|
| Taxation and social security |
|
|
|
| VAT |
|
|
|
| Accruals |
|
|
|
| Other creditors |
|
|
|
|
|
|
Amounts owed to Directors bear no interest and are repayable on demand.
| 2025 | 2024 | ||
| £ | £ | ||
| At the beginning of financial year |
|
|
|
| Charged to the Statement of Income and Retained Earnings | (
|
(
|
|
| At the end of financial year |
|
|
| 2025 | 2024 | ||
| £ | £ | ||
| Allotted, called-up and fully-paid | |||
|
|
|
|
|
| Presented as follows: | |||
| Called-up share capital presented as equity | 200 | 200 |
The profit and loss reserve represents cumulative profits or losses, net of dividends paid and other adjustments.
Commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
| 2025 | 2024 | ||
| £ | £ | ||
| within one year |
|
|
|
| between one and five years |
|
|
|
| Total future minimum lease payments under non-cancellable operating leases |
|
|
Pensions
The Company operates a defined contribution pension scheme for the directors and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.
| 2025 | 2024 | ||
| £ | £ | ||
| Unpaid contributions due to the fund (inc. in other creditors) |
|
|
| 2025 | 2024 | ||
| £ | £ | ||
| Operating profit |
|
|
|
| Adjustment for: | |||
| Depreciation and amortisation |
|
|
|
| Operating cash flows before movement in working capital |
|
|
|
| Decrease/(increase) in debtors |
|
(
|
|
| Increase/(decrease) in creditors |
|
(
|
|
| Cash generated by operations |
|
|
|
| Income taxes paid | (
|
(
|
|
| Interest received |
|
|
|
| Net cash flows from operating activities |
|
(
|
Net debt reconciliation
| Balance at 01 October 2024 | Cash flows | Acquisitions and disposals | Balance at 30 September 2025 | ||||
| £ | £ | £ | £ | ||||
| Cash at bank and in hand | 905,836 | 292,842 | 0 | 1,198,678 | |||
| Cash equivalents | 354,596 | ( 139,096) | 0 | 215,500 | |||
| 1,260,432 | 153,746 | 0 | 1,414,178 | ||||
| Finance leases | ( 3,088) | 3,388 | ( 300) | 0 | |||
| ( 3,088) | 3,388 | ( 300) | 0 | ||||
| Net debt |
|
157,134 | ( 300) |
|
The controlling party is M Swaby by virtue of his shareholding.