The directors present the strategic report for the year ended 31 August 2025.
This financial year has seen the company continue to consolidate its business position in difficult global market conditions and to review the efficiency of business operations in light of the downturn in sales.
The total Group turnover reduced 19% from prior year which was due to a downturn in the Permanent market for both the UK and US markets which declined by 37% and 11% respectively. Due to a year on year growth of 13% in the US, the Contract market showed an overall year on year growth of 1.5% for the Group.
The Group’s NFI (net fee income) margin increased from 10% against 2024 to 22% against 2025, reflecting a significant improvement in operational efficiency and margin performance year-on-year.
Despite the challenging market conditions and the restructuring undertaken during the year, the Group delivered a significant improvement in profitability, moving from a loss before tax of £456k in the prior year to a profit before tax of £535k in 2025. This positive turnaround reflects the effectiveness of management’s strategic actions, including cost realignment and streamlined operations, which enhanced efficiency across the Group. The improvement demonstrates the underlying strength of the business model and provides a solid platform for renewed growth in the forthcoming financial year.
During the year the company has also reviewed staff levels which has resulted in a headcount reduction of 39.2%. This was done to scale down business in some areas in order to ensure that the business remains efficient and profitable.
Turnover decreased by 19%, reflecting weaker Permanent market activity. Gross profit reduced by 23.4%, largely due to market pressures and reduced Permanent placements. The Group’s profitability improved by £991k, moving from a £456k loss to a £535k profit. Net assets increased by 6.2% to £4,112k.
The directors have considered the principal risks and uncertainties that might affect the company. These include any future downturn in the economy caused by the continued Global recession and higher interest rates which might impact on turnover and financing costs.
Financial KPIs | 2025 | 2024 |
Turnover (£) | 34,553k | 42,798k |
Gross Profit Margin (£) | 10,266k | 13,404k |
Profit before Tax (£) | 535k | (456k) |
Net Assets (£) | 4,112k | 3,873k |
The Group’s intention is to remain a ‘practice led business’ where key decisions continue to be made internally. In the year ahead, the Group will continue to grow organically without any significant change to its core values.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 August 2025.
The results for the year are set out on page 9.
No ordinary dividends were proposed or paid (prior year - same).
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
During the year, the group donated £480 to the Manchester 10km Run.
The Group's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the Group’s policies approved by the board of directors, which provide written principles on the use of financial derivatives to manage these risks.
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments. The company has an invoice discounting facility in place to provide short term working capital. The liquidity position of the company is regularly reviewed at Director level to ensure that the company has sufficient funds available. The current facility has sufficient headroom for mid-term growth plans and a good working relationship is in place with the funding provider.
The company is at risk from rate increases on its invoice discounting facility. The cost effectiveness of this facility and the overall flexibility that it provides has been reviewed and the company deems this to be the best and lowest risk solution for the forthcoming year.
The Group’s principal financial assets are bank balances and cash, trade and other receivables, and investments.
The Group’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.
The group has a policy of credit referencing all new and potential clients and utilises an alert system from the credit referencing agent. A robust system of cash collection is in place and outstanding accounts are reviewed consistently at management level
The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
The Group has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Group uses foreign exchange forward contracts and interest rate swap contracts to hedge these exposures.
Interest bearing assets and liabilities are held at fixed rates to ensure certainty of cash flows.
The group did not conduct any research and development projects during the year under review.
Subsequent to the year end, on 1 November 2025, the directors approved dividends totalling £1,000,000 to the shareholders of the parent company.
For the forthcoming year the group will continue to focus on growth within current market sectors and seek organic growth via existing office locations. The group will continue to review overhead levels and adapt to changing economic conditions if necessary.
The auditor, Sedulo Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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 Oscar Associates (UK) 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 balance sheet, the company balance sheet, 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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the recruitment sector;
• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation legislation;
• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
• performed analytical procedures to identify any unusual or unexpected relationships;
• tested journal entries selected on a risk criteria basis to identify unusual transactions; and
• investigated the rationale behind significant or unusual transactions; and
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation;
• reading the minutes of meetings of those charged with governance;
• enquiring of management as to any actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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 parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The notes on pages 15 to 32 form part of these financial statements.
The notes on pages 15 to 32 form part of these financial statements.
The notes on pages 15 to 32 form part of these financial statements.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £444,577 (2024 - £112,695 loss).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The notes on pages 15 to 32 form part of these financial statements.
The notes on pages 15 to 32 form part of these financial statements.
The notes on pages 15 to 32 form part of these financial statements.
Oscar Associates (UK) Limited (“the company”) is a private limited company, limited by shares, domiciled and incorporated in England and Wales. The registered office is Windmill Green, 24 - 25 Mount Street, 3rd Floor, Manchester, United Kingdom, M2 3NX.
The group consists of Oscar Associates (UK) 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 FRS102, being a member of a group where the parent of the 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 cash flow and related notes and disclosures;
Section 33- 'Related Party Disclosures'- Compensation for key management personnel
The consolidated group financial statements consist of the financial statements of the parent company Oscar Associates (UK) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
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.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
The financial statements have been prepared on a going concern basis.
At the balance sheet date, the company had net current liabilities of £501,679 (2024: £79,887) and net liabilities of £500,279 (2024: £55,703). The directors have prepared cash flow forecasts for the company and the wider group for a period of at least 12 months from the date of approval of these financial statements and have considered the expected future trading performance, cash flows and working capital requirements of the group.
In forming their assessment, the directors have considered the financial position and ongoing trading performance of the company’s subsidiary undertaking, which continues to maintain positive net current assets and is expected to generate sufficient cash flows to support the ongoing operations of the group.
Based on the forecasts prepared and the expected performance of the group, the directors have a reasonable expectation that the group and company have adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing these financial statements.
Turnover represents amounts receivable for the provision of candidates to permanent positions and labour on a contract basis. Income is recognised for permanent fee income on the candidate start date and contract fee income is recognised over the period that the contractor works.
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 profit and loss account.
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.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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 balance sheet 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 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.
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.
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 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.
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 subsequently 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 through 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.
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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The 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 profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset 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 fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.
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.
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
Invoice discounting
Amounts due in respect of invoice discounting are separately disclosed as currently liabilities. The company can use these facilities to draw down on a percentage of the value of certain sales invoices. The management and collection of trade debtors remains with the company.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The directors assess the doubtful debt allowance at each reporting date. Key assumptions applied are the estimated debts recovery rates and the future market conditions that could affect recovery.
Other than those disclosed above, there are no other critical judgements and estimates.
The turnover is attributable to the one principal activity of the group.
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/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
At the balance sheet date, the group had unutilised tax losses of £405,303 (2024: £34,859). A deferred tax asset has not been recognised in respect of these losses due to the uncertainty of future taxable profits being available against which the asset can be utilised.
Details of the company's subsidiaries at 31 August 2025 are as follows:
The loans owed by group undertakings bear no interest, are unsecured and have no fixed repayment terms.
The loans owed to group undertakings bear no interest, are unsecured and have no fixed repayment terms.
The loans bear interest at varying rates and repayable in monthly installments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
At the balance sheet date, the group had unutilised tax losses of £405,303 (2024: £34,859). A nett deferred tax asset has not been recognised in respect of these losses due to the uncertainty of future taxable profits being available against which the asset can be utilised.
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.
At 31 August 2025 £7,002 (2024: £8,875) was payable to the defined contribution pension scheme.
All shares issued are non-redeemable and rank equally in terms of voting rights, rights to participate in all approved dividend distributions for that class of share and rights to participate in any capital distribution on winding up.
During the year the 2,000 Ordinary A shares were subdivided into Ordinary B shares.
The company and it's subsdiary have invoice finance in place which is secured by way of a fixed and floating charge over all the property and undertakings of the company.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
On 1 November 2025, the parent company declared dividends totalling £1,000,000 to its shareholders. As the dividends were declared after the reporting date of 31 August 2025, they have not been recognised as a liability in these financial statements.
The remuneration of key management personnel is as follows.
Related party relationships:
Common ownership & management : Searchability (UK) Limited, Senitor Associates Limited
Management fees paid to Searchability (UK) Limited of £36,000 (2024: £21,000).
Management fees paid to Senitor Associates Limited of £175,000 (2024: £210,000).
The following amounts were outstanding at the reporting end date:
Searchability (UK) Limited- £3,600 (2024: £3,600)
Senitor Associates Limited- (£14,846) (2024- £60,000)
Outstanding balances are payable on demand, interest-free and not secured.
No individual shareholder holds a majority of the voting rights. Therefore, there is no parent entity or ultimate controlling party by virtue of shareholdings.
During the year, the directors reviewed the presentation of certain staff costs within the statement of comprehensive income. As a result, certain salaries and wages previously included within direct costs/cost of sales have been reclassified to administrative expenses in the comparative period to better reflect the nature of the expenditure.
This reclassification is presentational only and has no impact on operating profit, profit for the financial year, net assets or cash flows.