KENECT RECRUITMENT LTD


Directors	SMITH, Julien Richard
	WHITTENHAM, Jason Richard


Registered Address	Units 8, Lancaster Park Newborough Road
	Needwood
	Burton-On-Trent
	DE13 9PD


Registered Number	08072550 (England and Wales)

Notes to the Financial Statements
for the year ended 30 September 2025

1.	Accounting policies

	Statutory information
	Kenect Recruitment Limited is a private company, limited by shares, registered in England and Wales, registration number 08072550. The registered office is Kenect House, 4 Hawkins Lane, Burton-on-Trent, Staffordshire, DE14 1PT, England.

	Statement of compliance
	The accounts have been prepared in accordance with the provisions of FRS 102 Section 1A Small Entities. There were no material departures from that standard.

	Basis of preparation
	The accounts have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets.

	Functional and presentation currency
	The accounts are presented in £ sterling.

	Turnover policy
	Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover from the sale of goods is recognised when goods have been delivered to customers such that risks and rewards of ownership have transferred to them. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

Turnover policy

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover from the sale of goods is recognised when goods have been delivered to customers such that risks and rewards of ownership have transferred to them. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

	Revenue from rendering of services
	Revenue from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

	Employee benefits
	Short-term employee benefits are measured at the undiscounted amount expected to be paid in exchange for the employee's services to the company. Where employees have accrued short-term benefits which the entity has not paid by the balance sheet date, an accrual is recognised within creditors: amounts falling due within one year together with an associated expense in profit or loss. The liabilities are classified as current obligations in the statement of financial position because they are expected to be settled wholly within twelve months after the end of the period.

Employee benefits

Short-term employee benefits are measured at the undiscounted amount expected to be paid in exchange for the employee's services to the company. Where employees have accrued short-term benefits which the entity has not paid by the balance sheet date, an accrual is recognised within creditors: amounts falling due within one year together with an associated expense in profit or loss. The liabilities are classified as current obligations in the statement of financial position because they are expected to be settled wholly within twelve months after the end of the period.

	Finance costs
	Finance costs charged to the profit or loss include interest expense calculated using the effective interest method from FRS 102:11, finance charges on finance leases, and exchange differences on foreign currency borrowings where these are treated as an adjustment to interest costs.

	Current taxation
	Current tax is recognised in profit or loss, except for taxes related to revaluations of land and buildings which are recognised in other comprehensive income. Current tax represents the amount of tax payable (receivable) in respect of taxable profit (loss) for the current, or past, reporting periods. Current tax is measured at the amount expected to be paid (recovered) using the tax rates and laws which have been enacted, or substantively enacted, by the balance sheet date. Where payments to HM Revenue and Customs exceed liabilities owed, an asset is recognised to the extent of the amount of tax recoverable.

Current taxation

Current tax is recognised in profit or loss, except for taxes related to revaluations of land and buildings which are recognised in other comprehensive income.

Current tax represents the amount of tax payable (receivable) in respect of taxable profit (loss) for the current, or past, reporting periods. Current tax is measured at the amount expected to be paid (recovered) using the tax rates and laws which have been enacted, or substantively enacted, by the balance sheet date. Where payments to HM Revenue and Customs exceed liabilities owed, an asset is recognised to the extent of the amount of tax recoverable.

	Intangible assets
	Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired. Amortisation is included in 'administrative expenses' in the profit and loss account.

	Goodwill
	Goodwill arising on an acquisition of a business is carried at cost less accumulated impairment losses, if any. Goodwill is amortised over its expected useful life which is estimated to be ten years. Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the income statement. No reversals of impairment are recognised.

	Tangible fixed assets and depreciation
	Tangible assets are included at cost less depreciation and impairment. Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives:

	Investments
	Investments in shares are included at fair value.

	Finance leases and hire purchase contracts
	Assets held under finance leases which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the balance sheet. They are depreciated over the shorter of their useful lives or the term of the lease.

	Trade and other debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

Trade and other debtors

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

	Trade and other creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

2.	Average number of employees


		2025		2024
	Average number of employees during the year	44		44

3.	Intangible assets

	Goodwill	Total
	£	£
Cost or valuation
At 01 October 24	140,000	140,000
At 30 September 25	140,000	140,000
Amortisation and impairment
At 01 October 24	9,481	9,481
Charge for year	14,000	14,000
At 30 September 25	23,481	23,481
Net book value
At 30 September 25	116,519	116,519
At 30 September 24	130,519	130,519

4.	Tangible fixed assets

	Land & buildings	Vehicles	Office Equipment	Total
	£	£	£	£
Cost or valuation
At 01 October 24	558,440	5,000	179,136	742,576
Additions	-	-	44,753	44,753
At 30 September 25	558,440	5,000	223,889	787,329
Depreciation and impairment
At 01 October 24	8,591	3,956	99,307	111,854
Charge for year	11,169	345	34,241	45,755
At 30 September 25	19,760	4,301	133,548	157,609
Net book value
At 30 September 25	538,680	699	90,341	629,720
At 30 September 24	549,849	1,044	79,829	630,722

5.	Fixed asset investments

	Investments in groups¹	Total
	£	£
Cost or valuation
At 01 October 24	152,110	152,110
Additions	99,760	99,760
At 30 September 25	251,870	251,870
Net book value
At 30 September 25	251,870	251,870
At 30 September 24	152,110	152,110

	Notes
	¹Investments in group undertakings and participating interests

6.	Creditors: amounts due within one year

	2025	2024
	£	£
Trade creditors / trade payables	617,732	17,908
Bank borrowings and overdrafts	2,165,633	1,771,313
Taxation and social security	52,275	127,242
Finance lease and HP contracts	28,341	25,089
Other creditors	25,511	-
Total	2,889,492	1,941,552

7.	Creditors: amounts due after one year

	2025	2024
	£	£
Other creditors	293,395	322,191
Total	293,395	322,191

8.	Obligations under finance leases

		2025		2024
		£		£
	Finance lease and HP contracts	321,735		347,280

9.	Contingent liabilities
	On 23 May 2025 the entire issued share capital of the company was acquired by Kenect Recruitment EOT Limited, the corporate trustee of the Kenect Recruitment Employee Ownership Trust. Part of the consideration payable by the trustee to the former shareholders takes the form of deferred consideration of £8,520,000, repayable by quarterly instalments over eight years together with interest at 7.25% per annum. The company has guaranteed the trustee's obligations in respect of this deferred consideration and the related interest, and has granted a debenture incorporating fixed and floating charges over its assets by way of security. At 30 September 2025 the guaranteed obligation outstanding amounted to £8,386,875 of principal together with accrued interest of £222,227 (2024: £nil). No provision has been made as the directors expect the trustee to meet its obligations as they fall due, funded by contributions from the company.

Contingent liabilities

On 23 May 2025 the entire issued share capital of the company was acquired by Kenect Recruitment EOT Limited, the corporate trustee of the Kenect Recruitment Employee Ownership Trust. Part of the consideration payable by the trustee to the former shareholders takes the form of deferred consideration of £8,520,000, repayable by quarterly instalments over eight years together with interest at 7.25% per annum. The company has guaranteed the trustee's obligations in respect of this deferred consideration and the related interest, and has granted a debenture incorporating fixed and floating charges over its assets by way of security. At 30 September 2025 the guaranteed obligation outstanding amounted to £8,386,875 of principal together with accrued interest of £222,227 (2024: £nil). No provision has been made as the directors expect the trustee to meet its obligations as they fall due, funded by contributions from the company.

10.	Related party transactions
	On 23 May 2025 the former shareholders, Anne Smith, Julien Smith and Jason Whittenham, sold the entire issued share capital of the company to Kenect Recruitment EOT Limited, trustee of the Kenect Recruitment Employee Ownership Trust, for a total consideration of £8,770,000 (£250,000 payable on completion and £8,520,000 as deferred consideration). During the year the company paid £383,125 to the former shareholders on behalf of the trustee, being the completion payment and the first quarterly instalment, and contributed the equivalent amount to the trust to fund those payments. The company has guaranteed the trustee's obligations in respect of the deferred consideration (see contingent liabilities note). Amounts owed by group undertakings: At the year end the company was owed £39,050 by Kenect Recruitment Group Limited, £12,500 by Kenect Professional Limited and £100 by Kenect Recruitment (Resourcing) Limited. These balances are interest-free and repayable on demand.

10.

Related party transactions

On 23 May 2025 the former shareholders, Anne Smith, Julien Smith and Jason Whittenham, sold the entire issued share capital of the company to Kenect Recruitment EOT Limited, trustee of the Kenect Recruitment Employee Ownership Trust, for a total consideration of £8,770,000 (£250,000 payable on completion and £8,520,000 as deferred consideration). During the year the company paid £383,125 to the former shareholders on behalf of the trustee, being the completion payment and the first quarterly instalment, and contributed the equivalent amount to the trust to fund those payments. The company has guaranteed the trustee's obligations in respect of the deferred consideration (see contingent liabilities note).
Amounts owed by group undertakings: At the year end the company was owed £39,050 by Kenect Recruitment Group Limited, £12,500 by Kenect Professional Limited and £100 by Kenect Recruitment (Resourcing) Limited. These balances are interest-free and repayable on demand.

11.	Controlling party
	Since 23 May 2025 the company has been controlled by Kenect Recruitment EOT Limited in its capacity as trustee of the Kenect Recruitment Employee Ownership Trust, which holds the entire issued share capital of the company on trust for the benefit of the eligible employees. Prior to that date the company was controlled by its individual shareholders.

	Notes	2025		2024
		£	£	£	£
Fixed assets
Intangible assets	3		116,519		130,519
Tangible assets	4		629,720		630,722
Investments	5		251,870		152,110
			998,109		913,351
Current assets
Debtors		3,366,088		2,825,005
Cash at bank and on hand		16,412		30,752
		3,382,500		2,855,757
Creditors amounts falling due within one year	6	(2,889,492)		(1,941,552)
Net current assets (liabilities)			493,008		914,205
Total assets less current liabilities			1,491,117		1,827,556
Creditors amounts falling due after one year	7		(293,395)		(322,191)
Accruals and deferred income			(234,696)		(196,330)
Net assets			963,026		1,309,035
Capital and reserves
Called up share capital			115		115
Profit and loss account			962,911		1,308,920
Shareholders' funds			963,026		1,309,035