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Registered number: 10384626










BrightLocal Ltd










Annual report and financial statements

For the year ended 31 December 2024

 
BrightLocal Ltd
 

Company Information


Directors
M Anderson 
E Eliot 




Registered number
10384626



Registered office
First Floor Huntingdon House,
20-25 North Street,

Brighton

East Sussex

United Kingdom

BN1 1EB




Independent auditors
Kreston Reeves Audit LLP
Statutory Auditor

Nile House

Nile Street

Brighton

East Sussex

BN1 1HW





 
BrightLocal Ltd
 

Contents



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Profit and loss account
9
Balance sheet
10
Statement of changes in equity
11 - 12
Notes to the financial statements
13 - 25


 
BrightLocal Ltd
 

Strategic report
For the year ended 31 December 2024

Fair review of the business
 
BrightLocal Ltd provides local SEO software and related services to small and medium-sized businesses and agencies. Operations are headquartered in the UK, with distributed teams supporting customers primarily in North America, the UK, and Europe.

Performance (summary):
 
Turnover: £12.82m (2023: £11.48m) – see Profit & Loss Account.
Operating profit: £0.44m (2023: £1.19m).
Profit after tax: £0.32m (2023: £0.86m).
Net assets: £1.51m (2023: £2.03m) – see Balance Sheet.
Cash at bank: £3.52m (2023: £3.45m) – see Balance Sheet.

Revenue growth was driven by expansion of subscription services and Citation Builder campaigns, though profitability was impacted by:

Higher administrative costs (+33% year-on-year) from team expansion (average headcount up from 59 to 69).
Technical restructuring and platform investment, particularly in engineering, UX, and AI development.

The business remains cash-generative, supporting continued investment.
 

Principal risks and uncertainties
 
The Directors consider the following to be the Company’s principal risks:
 
Market and technology change: Ongoing changes in how search platforms operate, including increasing use of AI, may affect demand patterns. The Company monitors developments and adapts products and services where appropriate.
Competition: The sector is competitive, with established providers and new entrants. Pricing and feature pressure are monitored.
Operational delivery: The Company operates distributed teams, including staff in Ukraine. Geopolitical instability in that region creates a risk of disruption to operations. The Company monitors the situation and maintains contingency measures.
Foreign exchange: A significant proportion of revenue is denominated in US dollars. Exchange rate fluctuations may affect reported sterling results. Exposure is overseen through routine treasury processes.
Working capital: As with many businesses, there is a risk of late payments or customer churn affecting cash flow. This is managed through established credit control procedures.

Key Performance Indicators (financial only)
 
Revenue: £12.82m (2023: £11.48m).
Operating margin % (Operating profit ÷ Turnover): 3.4% (2023: 10.4%).
Cash at bank: £3.52m (2023: £3.45m).
Revenue per FTE: ~£186k (2023: ~£195k).
 
These are considered the most relevant financial indicators for the size and complexity of the business. All amounts cross-refer to the Profit & Loss Account or Balance Sheet.

Page 1

 
BrightLocal Ltd
 

Strategic report (continued)
For the year ended 31 December 2024

Other Matters of Strategic Importance
 
The Company operates in a sector experiencing ongoing technological change, including the wider adoption of AI. The Board keeps these developments under review. No further disclosures are considered necessary.

Approval
 

This report was approved by the board and signed on its behalf.



................................................
M Anderson
Director

Date: 22 May 2026

Page 2

 
BrightLocal Ltd
 

 
Directors' report
For the year ended 31 December 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

Principal activity

The Company’s principal activity is the provision of software and services for local search engine optimisation (SEO).

Directors

The directors who served during the year were:

M Anderson 
E Eliot 

Results and dividends

The profit for the year, after taxation, amounted to £323,687 (2023 - £861,176). Dividends of £847,158 (2023: £801,135) were paid in the year. No further dividend is recommended.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 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 period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Political contributions

The Company made no political donations or incurred political expenditure during the year (2023: £nil).

Future developments

The Company intends to focus on organic growth within its existing markets while continuing to improve operational efficiency. Management is investing in technology, including automation and artificial intelligence, where this can improve customer value and cost efficiency. The Directors remain mindful of potential challenges, including changes in economic conditions, and will continue to monitor these as part of the ongoing management of the business.

Page 3

 
BrightLocal Ltd
 

 
Directors' report (continued)
For the year ended 31 December 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The audit registration of Kreston Reeves LLP was transferred to Kreston Reeves Audit LLP on 6 October 2025. Kreston Reeves Audit LLP were formally appointed as auditor to the company on 6 October 2025.

The auditor, Kreston Reeves Audit LLP, will be proposed for reappoinment in accordance with section 485 of the Companies Act 2006.,

This report was approved by the board and signed on its behalf.
 





................................................
M Anderson
Director
Date: 22 May 2026

Page 4

 
BrightLocal Ltd
 

 
Independent auditors' report to the members of BrightLocal Ltd
 

Opinion


We have audited the financial statements of BrightLocal Ltd (the 'Company') for the year ended 31 December 2024, which comprise the Profit and loss account, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5

 
BrightLocal Ltd
 

 
Independent auditors' report to the members of BrightLocal Ltd (continued)


Opinion 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.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, 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.


Page 6

 
BrightLocal Ltd
 

 
Independent auditors' report to the members of BrightLocal Ltd (continued)


Auditors' 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 Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the company and industry, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, management bias in accounting estimates in relation to deferred income, subcontractors unrecognised payroll tax liabilities and related party transactions. Audit procedures performed by the engagement team included:
 
Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud, and review of the reports made by management; and
Assessment of identified fraud risk factors; and
Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud; and
Testing of internal controls procedures relating to expenditure potentially more susceptible to fraud and other irregularities including cash, payroll and credit card expenditure; and
Challenging assumptions and judgements made by management in its significant accounting estimates; and
Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and
Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
Performing analytical procedures with automated data analytics tools to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and
Review of internal controls and physical inspection of tangible assets susceptible to fraud or irregularity; and
Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.
 
Page 7

 
BrightLocal Ltd
 

 
Independent auditors' report to the members of BrightLocal Ltd (continued)




As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


Other matters 
 

The financial statements of the company for the year ending 31 December 2023 were not audited.


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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Wendy Bamford BSc FCA (Senior statutory auditor)
for and on behalf of
Kreston Reeves Audit LLP
Statutory Auditor
Brighton

29 May 2026
Page 8

 
BrightLocal Ltd
 

Profit and loss account
For the year ended 31 December 2024

As restated
2024
2023
£
£

  

Turnover
  
12,815,446
11,477,543

Cost of sales
  
(4,886,890)
(4,638,391)

Gross profit
  
7,928,556
6,839,152

Administrative expenses
  
(7,493,028)
(5,649,657)

Operating profit
  
435,528
1,189,495

Interest receivable and similar income
  
23,451
24,920

Profit before tax
  
458,979
1,214,415

Tax on profit
 5 
(135,292)
(353,239)

Profit for the financial year
  
323,687
861,176

There are no items of other comprehensive income for 2024 or 2023 other than the profit for the yearAs a result, no separate Statement of comprehensive income has been presented.

The notes on pages 13 to 25 form part of these financial statements.

Page 9

 
BrightLocal Ltd
Registered number: 10384626

Balance sheet
As at 31 December 2024

As restated
2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 6 
-
-

Tangible assets
 7 
262,678
14,080

  
262,678
14,080

Current assets
  

Debtors: amounts falling due within one year
 8 
1,143,238
907,386

Cash at bank and in hand
  
3,523,572
3,449,116

  
4,666,810
4,356,502

Creditors: amounts falling due within one year
 9 
(3,383,212)
(2,336,733)

Net current assets
  
 
 
1,283,598
 
 
2,019,769

Total assets less current liabilities
  
1,546,276
2,033,849

Provisions for liabilities
  

Deferred tax
 10 
(35,898)
-

  
 
 
(35,898)
 
 
-

Net assets
  
1,510,378
2,033,849


Capital and reserves
  

Called up share capital 
 11 
1
1

Profit and loss account
  
1,510,377
2,033,848

  
1,510,378
2,033,849


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
M Anderson
Director

Date: 22 May 2026

The notes on pages 13 to 25 form part of these financial statements.

Page 10

 
BrightLocal Ltd
 

Statement of changes in equity
For the year ended 31 December 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2024 (as previously stated)
1
2,427,082
2,427,083

Prior year adjustment - correction of error (note 17)
-
(393,234)
(393,234)

At 1 January 2024 (as restated)
1
2,033,848
2,033,849


Comprehensive income for the year

Profit for the year
-
323,687
323,687
Total comprehensive income for the year
-
323,687
323,687


Contributions by and distributions to owners

Dividends: Equity capital
-
(847,158)
(847,158)


Total transactions with owners
-
(847,158)
(847,158)


At 31 December 2024
1
1,510,377
1,510,378


The notes on pages 13 to 25 form part of these financial statements.

Page 11

 
BrightLocal Ltd
 

Statement of changes in equity
For the year ended 31 December 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2023 (as previously stated)
1
2,172,344
2,172,345

Prior year adjustment - correction of error (note 17)
-
(198,537)
(198,537)

At 1 January 2023 (as restated)
1
1,973,807
1,973,808


Comprehensive income for the year

Profit for the year
-
861,176
861,176
Total comprehensive income for the year
-
861,176
861,176


Contributions by and distributions to owners

Dividends: Equity capital
-
(801,135)
(801,135)


Total transactions with owners
-
(801,135)
(801,135)


At 31 December 2023
1
2,033,848
2,033,849


The notes on pages 13 to 25 form part of these financial statements.

Page 12

 
BrightLocal Ltd
 

 
Notes to the financial statements
For the year ended 31 December 2024

1.


General information

Brightlocal Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 10384626. The registered office is First Floor Huntingdon House, 20-25 North Street, Brighton, East Sussex, United Kingdom, BN1 1EB. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements have been prepared on a going concern basis.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Development costs

Expenditure on research and development is capitalised and amortised over three years.

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 13

 
BrightLocal Ltd
 

 
Notes to the financial statements
For the year ended 31 December 2024

2.Accounting policies (continued)


2.5
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Long-term leasehold property
-
over the term of the lease
Plant and machinery
-
33.3% Straight line
Fixtures and fittings
-
20% Reducing balance
Office equipment
-
20% Reducing balance
Computer equipment
-
33.3% Straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.6

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.7

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

  
2.8

Cash Flow Statement

The entity has taken advantage of the exemption available under FRS 102 Section 1A.7 from preparing a cash flow statement, on the grounds that it is a qualifying entity and the consolidated financial statements of the parent company include a cash flow statement in accordance with FRS 102.

 
2.9

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

 
2.10

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.11

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 14

 
BrightLocal Ltd
 

 
Notes to the financial statements
For the year ended 31 December 2024

2.Accounting policies (continued)

 
2.12

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Profit and loss account within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.13

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.14

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 15

 
BrightLocal Ltd
 

 
Notes to the financial statements
For the year ended 31 December 2024

2.Accounting policies (continued)

 
2.16

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.



3.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
4,053,767
2,414,349

Social security costs
462,173
327,863

Cost of defined contribution scheme
63,460
50,690

4,579,400
2,792,902


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Staff
67
57



Directors
2
2

69
59

Page 16

 
BrightLocal Ltd
 

 
Notes to the financial statements
For the year ended 31 December 2024

4.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
18,764
18,764

Company contributions to defined contribution pension schemes
131
131

18,895
18,895


During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.


5.


Taxation


As restated
2024
2023
£
£

Corporation tax


Current tax on profits for the year
99,394
353,239


99,394
353,239


Total current tax
99,394
353,239

Deferred tax


Origination and reversal of timing differences
35,898
-

Total deferred tax
35,898
-


135,292
353,239
Page 17

 
BrightLocal Ltd
 

 
Notes to the financial statements
For the year ended 31 December 2024
 
5.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:

As restated
2024
2023
£
£


Profit on ordinary activities before tax
458,979
1,214,415


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)
114,745
285,630

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
17,982
7,398

Capital allowances for year in excess of depreciation
3,520
-

Difference on tax charges following prior period adjustment where tax not adjusted
-
45,793

Other differences leading to an increase (decrease) in the tax charge
-
14,418

Group relief
(955)
-

Total tax charge for the year
135,292
353,239

Page 18

 
BrightLocal Ltd
 

 
Notes to the financial statements
For the year ended 31 December 2024

6.


Intangible assets




Development expenditure

£



Cost


At 1 January 2024
320,218



At 31 December 2024

320,218



Amortisation


At 1 January 2024
320,218



At 31 December 2024

320,218



Net book value



At 31 December 2024
-



At 31 December 2023
-



Page 19
 


 
BrightLocal Ltd


 

 
Notes to the financial statements
For the year ended 31 December 2024


7.


Tangible fixed assets






Long-term leasehold property
Plant and machinery
Fixtures and fittings
Office equipment
Computer equipment
Total

£
£
£
£
£
£



Cost or valuation


At 1 January 2024
-
50,552
104,792
-
58,349
213,693


Additions
157,003
35,700
18,907
3,066
81,205
295,881


Disposals
-
-
-
-
(58,349)
(58,349)



At 31 December 2024

157,003
86,252
123,699
3,066
81,205
451,225



Depreciation


At 1 January 2024
-
36,472
104,792
-
58,349
199,613


Charge for the year on owned assets
18,030
13,970
2,455
304
12,524
47,283


Disposals
-
-
-
-
(58,349)
(58,349)



At 31 December 2024

18,030
50,442
107,247
304
12,524
188,547



Net book value



At 31 December 2024
138,973
35,810
16,452
2,762
68,681
262,678



At 31 December 2023
-
14,080
-
-
-
14,080

Page 20
 
BrightLocal Ltd
 

 
Notes to the financial statements
For the year ended 31 December 2024

8.


Debtors

As restated
2024
2023
£
£


Trade debtors
254,445
79,247

Prepayments and accrued income
370,617
424,347

Other debtors
92,713
23,363

VAT repayable
37,135
22,150

Amounts owed by group undertakings
388,328
358,279

1,143,238
907,386



9.


Creditors: Amounts falling due within one year

As restated
2024
2023
£
£

Trade creditors
448,857
81,066

Corporation tax
118,754
13,239

Other taxation and social security
103,581
104,407

Other creditors
82,386
45,683

Accruals and deferred income
1,378,484
841,188

Amounts owed to group undertakings
1,251,150
1,251,150

3,383,212
2,336,733



10.


Deferred taxation




2024


£






Charged to profit or loss
(35,898)



At end of year
(35,898)

The deferred taxation balance is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(35,898)
-

(35,898)
-

Page 21

 
BrightLocal Ltd
 

 
Notes to the financial statements
For the year ended 31 December 2024

11.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1 (2023 - 1) Ordinary share share of £1.00
1
1



12.


Pension commitments

The company operates a defined pension contribution scheme. The assets of the scheme are held
separately from those of the group in an independently administered fund. Pension contributions due at
the year end amounted to £12,921 (2023: £10,991). Total contributions payable by the company for the year totalled £63,460 (2023: £50,690). 


13.


Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
130,800
71,072

Later than 1 year and not later than 5 years
174,400
284,300

Later than 5 years
-
26,418

305,200
381,790

Page 22

 
BrightLocal Ltd
 

 
Notes to the financial statements
For the year ended 31 December 2024

14.


Related party transactions

Brightlocal Poland Ltd

Brightlocal Poland Ltd is fully owned by BrightLocal Services Ltd.

During the year the company provided financial assistance to Brightlocal Poland of £30,049 (2023: £18,011). At the year end Brightlocal Poland Ltd owed the company £51,719 (2023: £21,670).

BrightLocal Services Ltd

The company is owned by BrightLocal Services Ltd

During the year the company paid a dividend to BrightLocal Services Ltd of £847,158 (2023: £801,135) and paid expenses of £NIL (2023: £994) for BrightLocal Services Ltd. At the year end BrightLocal Services Ltd owed the company £336,609 (2023: £336,609).

Bright Little Light Ltd

Bright Little Light Ltd is fully owned by BrightLocal Services Ltd.

During the year the company was provided with an interest free loan by Bright Little Light Ltd. At the year end the company owed Bright Little Light Ltd £1,251,150 (2023: £1,251,150).

Key Management Personnel Compensation

The directors and other members of key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the company, directly or indirectly. This includes the directors (executive and non-executive) and members of the senior management team.

The total compensation paid to key management personnel during the year was £616,195 (2023: £461,779).


15.


Parent Undertaking and Controlling Party

The company's immediate and ultimate parent undertaking is BrightLocal Services Ltd. BrightLocal Services Ltd was incorporated in the United Kingdom. The controlling parties are M Anderson and S Anderson who, together, control 70.1% of the shares of BrightLocal Services Ltd.


16.


Change in accounting estimate

During the year, the depreciation method for Computer equipment changed from 50% Straight Line method to 33.3% Straight Line method. The cause for this change was due to all previous assets depreciated in full under the historic method being disposed of within the year. 

During the year, the depreciation method for Fixtures and fittings changed from 33.3% Straight Line method to 20% Reducing Balance method. The cause for this change was due to all assets being depreciated in full under the historic method and new assets purchased within the year. 

Page 23

 
BrightLocal Ltd
 

 
Notes to the financial statements
For the year ended 31 December 2024

17.


Prior year adjustments

During the year, a prior period restatement was identified arising from the incorrect application of the company’s accruals accounting policies. In particular, the recognition of accrued income, deferred income, prepayments and accruals had not been consistently or correctly applied in prior financial periods. This resulted in income and expenditure being recognised in accounting periods that did not appropriately reflect the underlying transactions.

The error related primarily to the timing of recognition rather than the validity of the underlying balances. Consequently, profits reported in prior years were overstated due to income being recognised prematurely and certain costs not being fully accrued in the appropriate accounting periods.

In accordance with FRS 102 Section 10 Accounting Policies, Estimates and Errors, the prior period misstatement has been corrected. Comparative figures have been restated as if the accounting policies had been correctly applied in the periods concerned. A reconciliation is presented below showing the original position, the prior year adjustment, and the resulting restated position, as follows:

As previously stated
Prior period adjustment
As restated 
        £
        £
        £
31 December 2023

Turnover

11,598,879

(121,336)

11,477,543
 
Cost of sales

(4,549,315)

(89,076)

(4,638,391)
 
Gross profit

7,049,564

(210,412)

6,839,152
 
Administrative expenses

(5,665,372)

15,715

(5,649,657)
 
Operating Profit

1,384,192

(194,697)

1,189,495
 
Profit before tax

1,409,112

(194,697)

1,214,415
 
Profit for the financial year

1,055,873

(194,697)

861,176
 
Debtors

639,877

267,509

907,386
 
Total current assets

4,088,993

267,509

4,356,502
 
Net current assets

2,413,003

(393,234)

2,019,769
 
Creditors

(1,675,990)

(660,743)

(2,336,733)
 
Net assets

2,427,083

(393,234)

2,033,849
 
Profit and loss account

(2,427,082)

393,234

(2,033,848)
 
Total equity

(2,427,083)

393,234

(2,033,849)
 

Page 24

 
BrightLocal Ltd
 

 
Notes to the financial statements
For the year ended 31 December 2024
As previously stated
Prior period adjustment
As restated 
        £
        £
        £
1 January 2023

Profit and loss account

(2,172,344)

198,537

(1,973,807)
 
Debtors

519,851

223,651

743,502
 
Creditors

(1,789,406)

(422,188)

(2,211,594)
 

These amounts represent the net effect of movements in accrued income, deferred income, prepayments and accruals, reflecting the reversal of income recognised prematurely and the recognition of costs not previously accrued.

The net effect of the adjustments has been reflected in the restated comparative figures presented in the financial statements. A corresponding adjustment has been made to opening reserves at 1 January 2023, to ensure retained earnings accurately reflect the results that would have been reported had the accounting policies been correctly applied. This is set out on the statement of changes in equity on pages 12 and 13.


Page 25