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Registered number:
For the Year Ended
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Kinetic Recruitment Services Limited
Company Information
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Kinetic Recruitment Services Limited
Contents
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Kinetic Recruitment Services Limited
Strategic Report
For the Year Ended 31 March 2026
Kinetic Recruitment Services Limited provides human resource and staffing services to the manufacturing, engineering and technical markets. We operate across the UK, working with a diverse range of clients from SMEs to large corporates.
The company is well diversified in a number of core segments, principally within engineering and manufacturing.
The company's growth strategy will continue with further diversification into industrial and engineering markets with our contract and permanent offerings within the UK as well as enhancing the human resource and staffing services offerings within its other brands. The key financial and other performance indicators during the year were as follows:
Turnover increased by over 4% amount delivering a slightly better result to the prior year and gross profit increased by 7.5% mainly attributable to increases in permanent revenue in the year. The business continues to be affected by effects of increased cost of employment and inflation across most suppliers but has made a saving some savings on rationalising various overhead costs. The overall result was an increase in administrative expenses of £167k (9.2% decrease), £59k of this was attributable to bad debts realised In the year. A marginal drop in interest rates have resulted in an decrease in interest payable of £18k on the prior year.
The number of employees remains consistent in comparison to 2025. There are plans to only increase the employee numbers to the more profitable divisions in 2026 to enable further growth within the business. Looking ahead, the directors intend to focus on:
∙Expanding sales and marketing efforts to increase client acquisition.
∙Strengthening long-term client relationships through tailored service offerings.
∙Exploring further opportunities in profitable markets and sectors.
∙Ongoing investment in technology upgrades to streamline IT infrastructure.
We remain committed to innovation and maintaining high standards of service to adapt to a dynamic recruitment environment.
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Kinetic Recruitment Services Limited
Strategic Report (continued)
For the Year Ended 31 March 2026
Commercial risks to the core business continue to be challenging external market forces and further planned employment related legislation costs. There is still a shortage of skilled personnel in the UK due to continuing relatively high levels of employment. Such risks we have mitigated with further investment in other platforms and tools to attract suitable candidates alongside our well established in house database.
Challenges within the current economic climate with the higher bad debt risks we continue to face alongside general increases in operating costs are having to be managed very carefully in an attempt to control overhead costs. As mentioned bad debts have become a more significant risk and we have strengthened systems and processes in place in an attempt to mitigate such risks. We perform detailed credit checks on all potential clients and have credit insurance and monitoring in place for our key customers that are reviewed monthly for exposure.
Operational KPI’s: Numbers of timesheets on a weekly basis alongside the number of trading clients on a monthly basis. Full forecasts of the following two months permanent recruitment pipeline are tracked to actual results on a monthly basis. Scheduled interviews, candidates placed, number of calls made, and number of client visits are all measured and reported real time via monitors set up in each of the offices.
Key financial indicators are measured at an office level to compare actual results against budgets and the prior year on a monthly basis. These are all reported on a monthly basis via the monthly management accounts along with the profit and loss accounts for each of the businesses in the group.
The Company is proud to operate as an employee-owned business, with the shares held in an Employee Ownership Trust for the benefit of its employees. The Directors believe that employee ownership creates a stronger, more engaged workforce by fostering a culture of shared responsibility, collaboration and long-term commitment. This structure empowers employees to contribute to the continued success of the business, encourages innovation and exceptional customer service, and aligns the interests of the workforce with the sustainable growth and prosperity of the Company. The Directors remain committed to preserving and developing this ownership model as a key part of the Company's long-term strategy.
This report was approved by the board and signed on its behalf.
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Kinetic Recruitment Services Limited
Directors' Report
For the Year Ended 31 March 2026
The directors present their report and the financial statements for the year ended 31 March 2026.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
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 judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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 2006. They 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.
The loss for the year, after taxation, amounted to £264,794 (2025 - loss £157,696).
Dividends of £nil were paid in the year (2025: £nil). The directors do not recommend payment of final dividend.
The directors who served during the year were:
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Kinetic Recruitment Services Limited
Directors' Report (continued)
For the Year Ended 31 March 2026
The company makes little use of financial instruments other than trade debtors, trade creditors, cash at bank and an invoice discounting facility. The objective is to ensure that there is a continuity of funding, that cash levels are sufficient to meet the ongoing needs of the business, and that there is flexibility to deal with unforeseen events. The policy is to smooth cash management and to arrange funding ahead of requirements, should it be needed.
Credit risk The objective is to reduce the risk of loss arising from default by customers. The policy is to ensure customer debt and credit ratings are routinely monitored, as well as the use of a credit insurance policy. Interest risk The objective is to limit the company's exposure to interest rate fluctuations. At present, the company only has secured bank borrowings in the form of an invoice discounting facility and maintains a policy of interest rate management.
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Kinetic Recruitment Services Limited
Independent Auditors' Report to the Members of Kinetic Recruitment Services Limited
We have audited the financial statements of Kinetic Recruitment Services Limited (the 'Company') for the year ended 31 March 2026, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of 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).
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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Kinetic Recruitment Services Limited
Independent Auditors' Report to the Members of Kinetic Recruitment Services Limited (continued)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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Kinetic Recruitment Services Limited
Independent Auditors' Report to the Members of Kinetic Recruitment Services Limited (continued)
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:
Identifying and assessing potential risks related to irregularities In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.
for and on behalf of
Chartered Accountants and Statutory Auditors
3 Stockport Exchange
SK1 3GG
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Kinetic Recruitment Services Limited
Statement of Comprehensive Income
For the Year Ended 31 March 2026
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Kinetic Recruitment Services Limited
Registered number: 01628477
Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 11 to 25 form part of these financial statements.
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Kinetic Recruitment Services Limited
Statement of Changes in Equity
For the Year Ended 31 March 2026
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Kinetic Recruitment Services Limited
Notes to the Financial Statements
For the Year Ended 31 March 2026
Kinetic Recruitment Services Limited is a private company limited by members capital and incorporated in England and Wales, registered number 01628477. The address of the registered office and principal place of business is Lancastrian Office Centre, Talbot Road, Stretford, Manchester, M32 0FP. The nature of the company's operation and principal activity is human resource management services.
2.Accounting policies
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 judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Kinetic Plc as at 31 March 2026 and these financial statements may be obtained from Companies House.
The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.
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Kinetic Recruitment Services Limited
Notes to the Financial Statements
For the Year Ended 31 March 2026
2.Accounting policies (continued)
The financial statements have been prepared on a going concern basis. The following paragraphs set out the basis of which the directors have reached their conclusion.
Whilst the economic impact within the manufacturing and engineering recruitment markets has been significant, the company is well capitalised with a diversified business model to withstand the current and future climate. The company currently meets its working capital requirements through their cash and bank funding. Based on the company's forecasts and projections, the directors believe they have sufficient facilities to trade through the next 12 months. Therefore, the directors believe it is appropriate to prepare the accounts to 31 March 2026 on a going concern basis and that there will be no adverse effect on solvency for more than 12 months after the date of approval of the financial statements.
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Kinetic Recruitment Services Limited
Notes to the Financial Statements
For the Year Ended 31 March 2026
2.Accounting policies (continued)
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of that year.
Intangible assets comprise website development costs and are amortised on a straight-line basis over their estimated useful economic life at a rate of 20% per annum.
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Kinetic Recruitment Services Limited
Notes to the Financial Statements
For the Year Ended 31 March 2026
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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.
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Kinetic Recruitment Services Limited
Notes to the Financial Statements
For the Year Ended 31 March 2026
2.Accounting policies (continued)
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable.
Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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. The directors believe that judgements, estimates, and assumptions do not have a significant risk of causing a material difference to the carrying amounts of the net assets and liabilities within the next financial year.
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Kinetic Recruitment Services Limited
Notes to the Financial Statements
For the Year Ended 31 March 2026
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Kinetic Recruitment Services Limited
Notes to the Financial Statements
For the Year Ended 31 March 2026
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Kinetic Recruitment Services Limited
Notes to the Financial Statements
For the Year Ended 31 March 2026
There were no factors that may affect future tax charges.
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Kinetic Recruitment Services Limited
Notes to the Financial Statements
For the Year Ended 31 March 2026
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Kinetic Recruitment Services Limited
Notes to the Financial Statements
For the Year Ended 31 March 2026
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Kinetic Recruitment Services Limited
Notes to the Financial Statements
For the Year Ended 31 March 2026
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Kinetic Recruitment Services Limited
Notes to the Financial Statements
For the Year Ended 31 March 2026
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Kinetic Recruitment Services Limited
Notes to the Financial Statements
For the Year Ended 31 March 2026
Profit & loss account
The profit and loss account includes all current and prior period retained profits and losses.
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Kinetic Recruitment Services Limited
Notes to the Financial Statements
For the Year Ended 31 March 2026
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £102,194 (2025: £82,071). Contributions totalling £46,199 (2025: £35,121) were payable to the fund at the balance sheet date.
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Kinetic Recruitment Services Limited
Notes to the Financial Statements
For the Year Ended 31 March 2026
The company is exempt from the obligation to prepare and deliver group accounts. The company is a subsidiary undertaking of Kinetic PLC which is the ultimate parent company, incorporated in England and Wales, registered number 06545585. The company is under the ultimate control of the Kinetic Employee Ownership Trust by virtue of its 94.91% interest in the voting share capital of Kinetic PLC.
The largest group in which the results of the company are consolidated is that headed by Kinetic PLC. The consolidated financial statements of this group are available to the public and may be obtained from the Registrar of Companies, Companies House, Crown Way, Maindy, Cardiff, CF4 3UZ. No other group accounts include the results of the company.
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