The directors present the strategic report for the year ended 31 October 2025.
INTRODUCTION
The principal activity of the Group is the operation of a portfolio of recruitment and staffing services businesses.
The Bluestones Group model has evolved from investing in start-up companies and building brands through a joint venture (JV) approach, where Bluestones takes a majority stake in each JV in return for providing funding and support services; to operating as a multi-service organisation across four core divisions: talent, equity, funding, and support.
There has been significant progress to structure the business around each of these four divisions, with the creation of clear reporting lines, governance, and structure – with each division now known as: Bluestones Talent Partners (core recruitment portfolio), Bluestones Equity Partners (investments and acquisitions), Bluestones Funding Partners (funding services for the recruitment sector), and Bluestones Support Partners (support services for the recruitment sector).
The growth strategy for the Group remains broadly the same with self-funded investments, bolt-ons, and acquisitions; organic growth in established businesses; and improving operational efficiencies, particularly driven by AI and automation.
Bluestones Group provides a full suite of support services centrally to its portfolio of businesses that includes marketing, IT (front, middle and back-office systems), HR, legal, contractor pay and bill, funding, and administration, and the enhanced purchasing power that comes from being part of a large organisation.
FINANCIAL PERFORMANCE
The UK recruitment sector is operating under sustained pressure from economic factors, such as high inflation and political uncertainty, both of which have impacted business confidence.
Despite a challenging trading environment characterised by intense competition, sustained pricing pressure and continued market uncertainty, the Group delivered a resilient financial performance during the year, achieving continued growth in both turnover and gross margin.
A summary of the results for the year is as follows:
| 2025 (£m) | 2024 (£m) |
Turnover | 145.3 | 128.9 |
Gross profit | 26.5 | 24.3 |
Operating profit before goodwill amortisation | 2.6 | 3.6 |
Turnover increased by 13% from £128.9 million to £145.3 million, reflecting the Group's ability to win new business, deepen existing customer relationships and continue expanding its market presence despite difficult trading conditions. Gross margin also increased from £24.3 million to £26.5 million, demonstrating the strength of the Group's underlying trading performance, commercial discipline and continued focus on higher-value activity.
EBITDA reduced from £5.0 million in the prior year to £3.5 million. Whilst this reflects the impact of exceptionally competitive market conditions and sustained pressure on margins, the business remained strongly profitable, delivering an operating profit before goodwill amortisation of £2.6 million. This resilience compares favourably with many larger participants in the sector, several of which reported losses during the same period.
Throughout the year, the Directors maintained a disciplined approach to cost management while continuing to invest in the business, its people and its capabilities. These actions have strengthened the Group's operational resilience and positioned it to take advantage of improving market conditions.
The Group also continues to execute its buy-and-build strategy, which remains a key component of its long-term growth plans. The Directors are pleased to report that, during FY26, the Group has already completed two successful acquisitions: Personnel Selection Associates Limited and Protec Technical Limited. These acquisitions broaden the Group's geographic reach, strengthen the Group's service offering and are expected to deliver further opportunities for growth, operational synergies and long-term shareholder value.
The Directors remain confident in the Group's strategy, the robustness of its business model and the opportunities within its markets. Entering FY26, the business has a strong platform for growth, underpinned by increased turnover, higher gross margin, continued operating profitability and the successful execution of its acquisition strategy. Accordingly, the Directors are confident of delivering strong growth in FY26 as market conditions improve and the benefits of recent strategic initiatives and acquisitions are realised.
OUR CURRENT BUSINESS STRUCTURE
As outlined earlier, the Group’s business structure has evolved into four distinct divisions that collectively focus on ‘all things recruitment’. At the end of this financial year, there was a total of 31 active and continuing brands/businesses.
BLUESTONES TALENT PARTNERS: EDUCATION SECTOR
The Education division within Bluestones Talent Partners has three distinct brands that combine for a full service provision for education settings in England & Wales.
Connex Education Partnership
Connex has delivered supply staffing and tuition services to UK schools since 1999. The business has two distinct service offerings, Connex Supply and Connex Tutors
Connex Supply, saw sustained demand for temporary staff placements across Multi Academy Trusts, Local Authority Maintained, and Independent schools in England and Wales. This growth was underpinned by our market-leading candidate development framework, which includes job-ready training, formal qualification pathways, and upskilling initiatives. The division’s ability to rapidly deploy qualified staff has positioned it as a trusted partner for schools navigating staffing shortages and compliance pressures.
Connex Tutors, operates a “Professional Tutor” programme, mapped against 22 standards for tutoring excellence, saw a marked increase in adoption. This was particularly evident in virtual schools and local authority contracts, where demand for targeted pupil support surged. The programme’s structured approach and measurable outcomes have helped secure repeat engagements and expanded reach.
Academize
Deliver formal qualifications, apprenticeships and online CPD to its own supply staff, subscribing agencies and their supply staff and education settings for their own permanently employed staff. The market is growing for flexible, distance-based training. The online CPD platform experienced unprecedented demand, reflecting both sector-wide recruitment challenges and the appeal of accessible, accredited pathways.
The Classroom Partnership
Delivers Master Vend Solutions as a GCA Lot 2 approved provider. Using our inhouse proprietary technology platform we manage a full supply staffing outsource for Multi Academy Trusts nationwide and has seen significant growth this academic year with greater demand anticipate from September 2027 when PA25 complaint spend is mandated in the Academies Financial Handbook.
Outlook for 2026
Looking ahead, the Education division is poised to deepen its market penetration and diversify its service offerings:
Technology integration: Continued investment in automation and AI-driven candidate matching will enhance operational efficiency and client satisfaction.
Expansion of tutor programmes: Plans are underway to extend the Professional Tutor programme into new regions and specialisms, including SEND and early years.
Master vend evolution: The technology platform will see further enhancements, particularly as we increasingly embed AI and automation in our solution workflows.
The division remains committed to delivering high-impact, scalable solutions that meet the evolving needs of the education sector, while maintaining its reputation for quality, compliance, and innovation.
BLUESTONES TALENT PARTNERS: GENERALIST SECTOR
The Generalist Sector has continued to operate in a challenging market environment, with client volume remaining a persistent pressure point. Throughout the reporting period, gross margins have remained broadly consistent. This stability has been underpinned by proactive and focused cost management. Despite several major pay and employment legislation changes in April 2026, the business has successfully mitigated the risk of margin erosion, preserving profitability in a cost-sensitive climate. Continuing to drive productivity per head, new client generation and maximising the existing customer base continues to be the strategy.
BLUESTONES TALENT PARTNERS: HEALTHCARE SECTOR
The Healthcare Division’s focus on regulated service provision under Ofsted, CIW and CQC continued and has seen sustained growth being achieved within the year and into 2026. The Complex Care business has continued it’s geographical expansion within the Residential Childrens Homes, this along with additional service developments defined as Outreach and Managed Services ensure the business stays aligned with Local Authorities and families and supports them, where possible, to avoid young people moving into a residential care setting.
The education and training business has made great strides forwards and working with the Complex Care business is ensuring that all children within our residential care settings receive education as a priority to support their long term aspirations. A new school setting is going through registration under Estyn to meet the growing SEMH need within the sector, this will support our current Alternative Provision delivered through the HyFlex Academy.
The business is now a main provider for Apprenticeships and as such is able to support both our internal workforce with career development to meet the needs of the sector as well as our external clients.
The recruitment business experienced a challenging year with margin and lower volume pressure being a notable factor within the NHS framework business. This is now a small part of the healthcare division and whilst the business has diversified services into the broader health and social care markets, pressure on profitability has continued.
BLUESTONES TALENT PARTNERS: PROFESSIONAL SECTOR
The Professional Division within Bluestones Talent Partners remains a strategically important part of the Group’s specialist recruitment portfolio, bringing together seven complementary brands: Chad Harrison International, NC Associates, HOME Recruitment, Australasian Recruitment Company, Dynamite Recruitment, Clayton Legal and Personnel Selection. Collectively, these businesses provide specialist recruitment services across executive search, finance and accountancy, legal, commercial, technical, RPO, engineering, international and regional professional markets.
A significant strategic change was implemented in May 2025 through the introduction of a divisional OKR framework, aligned with the Professional Division’s three-year plan. This is now central to how the division is managed, measured and developed. It provides a consistent operating rhythm across the portfolio, ensuring each brand has defined priorities, measurable outcomes and clear accountability, while retaining its own market identity and specialist proposition.
The introduction of OKRs has moved the division beyond a purely financial review model and created a more balanced, forward-looking approach to performance. Each brand now has clearer actions linked to the commercial and operational levers that drive sustainable growth: client retention, disciplined new client generation, productivity, consultant activity, vacancy quality, average invoice value, gross profit per head, pipeline conversion, margin protection, cash discipline and EBITDA improvement. This has strengthened the connection between daily activity, brand strategy and divisional outcomes.
During the year, the division has continued to operate in a challenging recruitment market, with hiring volumes, client confidence and candidate movement varying by sector and geography. Despite these conditions, the portfolio has remained resilient. The OKR framework has supported greater focus, clearer brand-level action plans and a more consistent monthly review cadence. Power BI reporting and data-driven decision-making ensure leadership discussions are grounded in measurable actions, progress and financial outcomes.
The current strategy is focused on protecting and growing existing client relationships, disciplined new business generation, improving productivity, stronger EBITDA conversion and continued integration activity, particularly following the addition of Personnel Selection in January 2026. Operationally, the division has strengthened its platform through improved management information, marketing enablement, tighter cost control, leadership capability, process improvement and the sharing of best practice across brands.
Looking ahead, the priority is to further embed the OKR framework and convert current momentum into stronger, more consistent delivery. The outlook is one of focused, disciplined growth, with selective investment linked to clear commercial opportunity, improved conversion and sustainable profitability.
BLUESTONES SUPPORT PARTNERS
Over the financial year, the recruitment payroll market has continued to undergo significant structural change, driven by legislative developments affecting umbrella companies and contingent workforce supply chains. The introduction of Joint and Several Liability legislation has accelerated market consolidation, with recruitment agencies and Managed Service Providers reducing the number of approved umbrella partners on their preferred supplier lists.
Quest Pay Solutions (QPS) continued to deliver consistent growth over the last 18 months through new client acquisition, service diversification and improved operational efficiency.
Service diversification: QPS continues to evolve beyond traditional payroll services, with investment in recruitment sector accountancy services for agencies and contractors.
International workforce solutions: The business continues to develop services that help recruitment businesses engage workers compliantly across multiple jurisdictions.
Contingent workforce compliance platform: QPS has invested in its own platform to help recruitment businesses manage supply chain compliance, audit activity and workforce governance.
Strategic outlook: QPS will continue to invest in technology, compliance and recurring professional services, reducing reliance on traditional umbrella payroll revenues and creating a broader, more resilient platform for long-term sustainable growth.
Expansion of the support services ecosystem.
In addition to QPS Group, the division includes:
APEX – recruitment marketing services.
Zircon IT – IT support designed for recruitment businesses.
Recruit Ready – a new initiative offering packaged support solutions for agencies.
Bluestones Offshore Partners – offshoring support to improve operational efficiency.
As the Group entered the new financial year in November 2025, these additions reflected a strategic move toward a more integrated, scalable support model for recruitment businesses. The division is now positioned to deliver end-to-end solutions that meet the changing needs of agencies across multiple sectors and geographies.
BLUESTONES FUNDING PARTNERS
Recruitment Funding Solutions (RFS) is the main operating business within the Bluestones Funding Partners division. It supports recruitment businesses with tailored back-office and funding solutions, helping them launch and grow effectively. Its two core services continue to be:
RFS Protect – A funder-principal model providing full back-office support, including payroll, invoicing and collections.
RFS Evolve – A traditional factoring model that gives agencies greater independence while maintaining essential support services.
During the period, RFS has continued to build upon success achieved via its broadened product offering increasing sales in key sectors. The sector-specific solutions for Education and Construction have enabled growth in those sectors via existing client growth and onboarding new clients. The businesses has also continued to grow in other sectors. The permanent funding product has also gained further traction with new agencies onboarded using the service during the period.
Performance and risk management
The business is managed through a series of key performance indicators and regular credit committee reviews. Throughout the period, further layers have been added to the underwriting and risk process and policies, ensuring even greater control over key decision making. The business has responded strategically to the introduction of further industry legislation, ensuring that processes mitigate any potential associated risks. Although economic and political pressures have increased lending and operational costs, growth has been supported by stronger sales activity and a continued focus on higher-quality agency clients. Sector diversification has reduced exposure to seasonal fluctuations, improved debt turn and supported cost control.
The main risk to the business is the non-collection of funded invoices. RFS mitigates this through credit insurance, robust underwriting and onboarding checks and continued refinement of its risk monitoring processes and policies.
Strategic outlook
RFS remains focused on the UK market while assessing international growth opportunities and further sector-specific expansion. It is also progressing a technology-led programme to improve operational efficiency and client experience, embracing developments in AI and new technology, whilst continuing to offer a service led experience for customers. The Board remains confident in the business’s resources and future growth prospects.
BLUESTONES EQUITY PARTNERS
Bluestones Equity Partners (BEP) operates as the Group’s dedicated investment and acquisition division, focused on identifying recruitment and recruitment-adjacent businesses where Bluestones Group can create value through acquisition, integration, operational support and long-term portfolio management.
BEP forms part of the Group’s wider four-division structure: Talent, Equity, Funding and Support. Within this structure, BEP acts as the investment platform for the Group, sourcing suitable opportunities, completing acquisitions, supporting integration and determining the most appropriate long-term structure for each business within the wider portfolio.
The division continues to follow a blended growth strategy, combining targeted acquisitions with selective joint venture and start-up opportunities. The focus is on founder-led and specialist recruitment businesses where the Group can provide a credible succession route, preserve existing goodwill, support management teams and apply the Group’s central infrastructure to improve performance.
A core strength of BEP is its ability to integrate acquired businesses into the Group’s shared services platform. Portfolio companies can access support across finance, HR, IT systems, legal, compliance, marketing, contractor pay and bill, funding and administration. This support provides operational resilience, improves reporting, reduces duplication and allows management teams to concentrate on commercial performance and growth.
BEP’s operating model is centred on applying the Group’s central infrastructure to support portfolio development. This includes clear operational ownership, disciplined integration planning, improved reporting, access to shared services and targeted support to help businesses improve performance while preserving continuity and commercial momentum.
BEP is also developing a more proactive approach to acquisition origination. The division is building a structured pipeline of potential targets, supported by market mapping, company profiling, CRM-led engagement and direct contact with business owners. This approach is intended to improve the quality and consistency of future opportunities and reduce reliance on broker-led or reactive acquisition processes.
The UK recruitment market remains fragmented, with many owner-managed agencies facing succession, funding, operational or technology challenges. This creates continuing opportunities for disciplined consolidation, particularly where businesses have strong client relationships, credible management teams and clear scope to benefit from Group support.
BEP’s immediate priorities are to strengthen its acquisition pipeline, refine its external proposition to founder-led recruitment businesses and maintain a disciplined approach to deal selection, due diligence and post-acquisition management. The division remains well positioned to support the Group’s growth strategy by identifying and developing businesses that can benefit from Bluestones Group’s infrastructure, sector knowledge and long-term investment approach.
CURRENT TRADING CONDITIONS
The recruitment sector experienced several challenges throughout the year to October 2025, significantly influenced by ongoing economic volatility, continued inflationary pressures, and the persistent high cost of living.
Despite these challenges, specific sectors such as healthcare, professional services, and technology have maintained strong demand for talent, driven by persistent skills shortages. This environment has created intense competition for high-quality candidates, pushing salaries and contractor rates upward in many sectors.
Candidate scarcity continued to be a defining characteristic of the recruitment landscape, exacerbated by historically low unemployment rates. This limited pool of available talent has heightened competition among employers, placing greater emphasis on effective attraction, retention, and employer branding strategies.
Throughout the year, inflation levels moderated from previous peaks but remained elevated, influencing hiring patterns with businesses continuing to adopt cautious recruitment strategies. Despite this caution, the latter part of the year saw a stabilisation in vacancy rates, indicating gradual market adjustment and confidence recovery.
Businesses across the Group further strengthened their investment in technology, recognising its critical role in driving efficiency, enhancing client and candidate experiences, and achieving significant operational improvements. Adoption and integration of advanced CRM and ATS platforms, AI-powered technologies, and automated systems remained strategic priorities.
Environmental, Social, and Governance (ESG) initiatives, along with Equality, Diversity, and Inclusion (ED&I) strategies, have continued to mature and expand across the Group. These factors are now broadly integrated into both public and private sector client requirements, making them increasingly essential for competitive positioning and long-term sustainability.
Reflecting on the UK's recruitment market conditions during 2025, several significant factors shaped the industry landscape:
1. Economic stability and recovery: The UK economy experienced modest growth during 2025, with inflation continuing to ease and business confidence gradually improving, although higher employment costs and economic uncertainty remained key challenges. Recruitment activity varied across sectors, with permanent hiring remaining subdued while demand for temporary and specialist workforce solutions proved more resilient, particularly in education and healthcare. These market conditions reinforced the importance of operational efficiency, service diversification and technology investment across the Group.
2. Persistent skills shortages: Talent shortages remained acute across multiple sectors, driven by systemic mismatches between skills availability and market demands. Recruitment companies have adopted innovative strategies, including targeted upskilling programmes, deeper educational partnerships, and international recruitment drives to address these gaps.
3. Evolution of remote and hybrid work models: Flexible and hybrid working arrangements have become normalised, significantly reshaping recruitment practices. Companies now routinely access geographically dispersed talent pools, necessitating advanced digital recruitment capabilities and robust cybersecurity measures.
4. Increasing emphasis on sustainability and diversity: Sustainability and diversity continued to gain prominence as critical recruitment considerations. Organisations prioritised candidates who align with corporate ESG goals and actively fostered diversity initiatives. Recruitment agencies have further refined strategies to proactively identify and engage candidates that meet these evolving criteria.
5. Rapid technological advancements: The recruitment sector continued to benefit from rapid technological progress, notably through AI and automation. These technologies have significantly enhanced recruitment efficiency, improved candidate engagement, and provided deeper analytics-driven insights, thereby delivering competitive advantages to proactive adopters.
6. Regulatory and legislative changes: 2025 saw continued legislative evolution, particularly regarding employment law, data privacy, compliance, and workforce regulations. Recruitment businesses remained vigilant, adapting swiftly to legislative updates to ensure compliance and minimise operational risk.
SECTION 172(1) STATEMENT
Employees
The Group seeks to recruit, train and retain the best possible people for all its positions. Full and fair consideration is given to applications for employment from disabled people.
The Group looks to create a vibrant and exciting work environment where people want to come to work, contribute, develop and succeed. The Group communicates with employees regularly using a combination of group intranet and both video conferencing and face to face meetings.
Customers
The Group seeks to offer its customers the best possible service and customer care.
The directors want the Group to be a strong trading partner of choice by enhancing value for all customers.
Environment
The Group considers the impact its operations may potentially have on the environment and only promotes working practices to meet current environmental and best practice.
Strategy
The Group has adopted strategies to ensure that it is achieving its objectives, and these are reviewed regularly by the directors and senior management team.
The Group maintains a strong industry presence and has built excellent and long-term customer relationships allowing it to develop its commercial activities and service offering.
The Group purposefully seeks to trade with strong business partners who have like-minded values and operate sound health and safety and environmental policies.
RESEARCH AND DEVELOPMENT
Although the Group’s approach to research and development remains focused on customising and refining existing technologies rather than building proprietary platforms, there has been a notable increase in the breadth of application and cross-brand alignment. This has enabled the Group to better leverage economies of scale and deliver enhanced value to its recruitment agency partners.
AI and automation in particular are increasingly being integrated throughout the Group’s business portfolio. And, as we enter into the new financial year (2025/26) the Group has appointed a Fractional CTO, Tom Cooksey, with a view to improving the company’s approach to adopting and utilising technology.
PRINCIPAL RISKS AND UNCERTAINTIES
The company utilises various financial instruments, primarily trade receivables, to fund its operational activities. The senior management team regularly reviews and updates policies designed to mitigate associated financial and operational risks. The key risks facing the Group in 2025 and beyond are outlined below:
Candidate shortages
Candidate availability continues to present challenges, intensified by demographic shifts, evolving job market dynamics, and changing immigration policies. The Group addresses these challenges proactively through refined candidate attraction, retention, and re-engagement strategies, supported by robust data analytics and cross-divisional knowledge sharing.
Cost of living and inflation
Persistent inflationary pressures and a high cost of living remain significant considerations for employee attraction and retention. The Group conducts regular remuneration benchmarking exercises, ensuring competitive and appealing total reward packages. Benefits and remuneration strategies are continually reassessed to align with employee expectations and broader economic conditions.
Credit risk
Credit risk management remains integral to financial strategy. Credit is extended based on rigorous assessments of client payment histories and ongoing debt monitoring processes. The Group maintains comprehensive credit insurance across its debtor portfolio, continuously reviewed to reflect evolving market conditions.
Interest rate risk
The Group’s financial operations are strategically balanced between retained earnings and reputable external factoring arrangements. Interest rate exposure is continually monitored and managed, with an expectation that as Group revenues and net assets expand, relative debt servicing costs will decrease.
Sector and competitor risk
The recruitment sector remains highly competitive with several national and international market players. The Group differentiates itself through equity participation models, ensuring alignment of management and business objectives, thus enhancing service quality and operational effectiveness.
Customer risk
The quality of customer service directly influences customer retention and business sustainability. Strategic divisional restructuring and enhanced cross-selling initiatives across the Bluestones network are central to maintaining superior service levels and customer satisfaction.
Legal and regulatory risk
The recruitment industry continues to experience significant regulatory scrutiny. The Group proactively adapts to legislative changes, particularly relating to HMRC compliance, employment laws, data protection, and evolving labour market regulations. Continuous vigilance ensures ongoing compliance and minimisation of operational disruptions.
Economic uncertainty
Economic volatility, potentially influenced by global market disruptions, political uncertainty, or recessionary pressures, continues to affect recruitment cycles and client commitments. The Group remains agile, regularly reviewing economic indicators and adjusting strategies to mitigate risks and capitalise on emerging opportunities.
IT and cyber risk
Cybersecurity threats continue to evolve in sophistication and frequency. The Group prioritises investment in advanced cybersecurity measures, data protection protocols, and comprehensive disaster recovery systems, ensuring operational resilience and the secure handling of sensitive information.
International conflict and geopolitical risk
The continuing geopolitical tensions, notably the extended Russia-Ukraine conflict and emerging global disruptions, pose ongoing risks to international trade, market stability, and specific sectors in which the Group operates. Monitoring geopolitical developments closely, the Group adjusts operational and strategic plans proactively to manage potential impacts.
Artificial Intelligence (AI) and technological advancements
Rapid advancements in AI and related technologies present significant opportunities and risks. The integration of AI systems is actively pursued to enhance operational efficiency, candidate matching, and client services. However, the Group remains attentive to potential disruptive impacts on employment models, candidate expectations, and the regulatory environment, strategically positioning itself to leverage AI advancements effectively while mitigating associated risks.
Internally the key financial indicators and management information are regarded as very important and are assessed and reviewed company by company and acted upon on a daily, weekly and monthly basis.
There is a high-level three-year plan and a detailed annual budget prepared which is reviewed on a quarterly basis. Key Financial Indicators include:
- Revenue growth
- Revenue per customer
- Trade indemnity / Insurable risk on a customer-by-customer basis
- EBITDA / by division / by brand
- Gross profit achieved
- Gross margin achieved by consultant
- Conversion ratio of gross margin to EBITDA
- Profitability per head - fees per full time equivalent (FTE) employee
- Debtor days
- Creditor days
- Permanent fee per placement
- Number of temporary workers at work
- Forward bookings for temporary workers
During the year ended 31 October 2025, the company reported the following in respect of Group energy use:
These estimates are based on the same methodology as last year, using the GHG Protocol Corporate Reporting Standard and the 2022 emission conversion factors from Defra and BEIS. The financial control approach and dual reporting for Scope 2 emissions remain in place.
The company has taken the decision to implement several measures with the aim of reducing emissions. These include:
increasing virtual meetings and conference calls to reduce travel emissions,
providing employees and management with the option to work from home, where possible, to reduce travel emissions,
reducing the number of paper documents and storing more documents electronically.
CONCLUSION
The Group has continued to demonstrate resilience and adaptability in a challenging economic and recruitment market, supported by its diversified operating model, disciplined financial management and continued investment in technology, compliance and specialist expertise. The breadth of the Group’s activities across Talent, Funding, Support and Equity provides multiple avenues for growth while reducing reliance on any single market or revenue stream.
Throughout the year, the Group has strengthened its position through targeted acquisitions, expansion into complementary service lines and continued investment in proprietary technology, automation and AI-enabled solutions. These initiatives, together with a focus on operational excellence, regulatory compliance and client service, provide a strong platform for sustainable long-term growth.
Looking ahead, the Board remains confident in the Group’s strategy and prospects. Continued investment in people, technology and innovation, alongside a disciplined approach to growth and risk management, will ensure the Group remains well positioned to respond to changing market conditions and capitalise on emerging opportunities. The Group will continue to support its clients, candidates and portfolio businesses by delivering high-quality, scalable solutions while maintaining its commitment to responsible growth, strong governance and long-term value creation for all stakeholders.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 October 2025.
The results for the year are set out on page 16.
Ordinary dividends were paid amounting to £274,193 (2024: £606,324). Further dividends of £1,390,662 (2024: £2,099,721) were paid out of subsidiary companies to minority shareholders. The directors do not recommend payment of a further dividend.
No preference dividends were paid. The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
The auditor, DJH Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Information regarding energy and carbon reporting is included within the strategic report.
United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and parent company, and of the profit or loss of the group for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent company, and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Bluestones Investment Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2025 which comprise the group profit and loss account, 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.
As part of our planning process:
We enquired of management the systems and controls the group has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The group did not inform us of any known, suspected or alleged fraud.
We obtained an understanding of the legal and regulatory frameworks applicable to the group. We determined that the following were most relevant: FRS 102, Companies Act 2006, Health & Safety At Work 1974, Employment Act 2008 and General Data Protection Regulations (GDPR).
We considered the incentives and opportunities that exist in the group, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
Using our knowledge of the group, together with the discussions held with the group at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
Identifying and testing journal entries including consolidation adjustments, in particular those that were significant and unusual.
Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entity's ability to continue in operation.
Testing key revenue lines, in particular cut-off, for evidence of management bias.
Obtaining third-party confirmation of material bank and loan balances.
Documenting and verifying all significant related party balances and transactions.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.
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.
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 profit for the year was £230,247 (2024 - £521,405 profit).
Bluestones Investment Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Chester Business Centre, Union Street, Chester, England, CH1 1QP.
The group consists of Bluestones Investment Group 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 consolidated group financial statements consist of the financial statements of the parent company Bluestones Investment Group 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 October 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.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
The directors report that after making enquiries, they have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. In making this assessment the directors have taken into account available bank and other facilities and financial projections. For this reason they continue to adopt the going concern basis in preparing the financial statements.
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts. rebates, value added tax and other sales taxes. Turnover is recognised when the services have been provided to the customer.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible 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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management's best knowledge of the amount, events or actions, actual results ultimately may differ from those estimates.
The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
The directors use judgement to provide against bad debts using knowledge of customers and experience. The provisions are revisited after the statement of financial position date to ensure they are appropriate.
Determining the useful economic life of goodwill is considered a key judgement in calculating an appropriate amortisation charge. When applying this valuation technique, the group relies on a number of factors, including historical results, business plans, forecasts and market data. Changes in the conditions for these judgments and estimates can significantly affect the assessed value of goodwill.
Substantially all turnover relates to the principal activities 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:
As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 31 October 2025 are as follows:
Registered office addresses (all UK unless otherwise indicated):
* indirect shareholdings
All subsidiaries operate within the recruitment sector.
Liabilities of £13,016,002 (2024: £12,652,590) in respect of invoice discounting facilities are secured by way of fixed and floating charges held by RBS Invoice Finance Limited over the assets of subsidiaries.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
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.
A-E Ordinary shares rank pari passu in all respects.
F Ordinary shares hold no voting rights, and are entitled to dividends at such respective rates (if any) that are determined by the company by way of ordinary resolution.
5,146,057 non-redeemable £1 preference shares were issued as part of the consideration on the purchase of Bluestones Equity Partners Limited and its subsidiaries by Bluestones Investment Group Limited. These shares have rights to a 2% annual dividend on the basis of net cash. These shares do not carry any voting rights.
The capital redemption reserve records the nominal value of the shares repurchased by the parent company.
Profit and loss reserves record all distributable gains/losses not classified elsewhere.
On 19 December 2024 the group acquired 100% of the issued capital of ThinkWorkForce Limited.
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 2 February 2026, the group acquired 100% of the issued share capital of Personnel Selection Associates Limited.
On 2 April 2026, the group acquired 100% of the issued share capital of Protec Technical Limited.
The remuneration of key management personnel is as follows.