Acuity Law Limited

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 30 November 2025

DIRECTORS:

S R Berry

R L Sellek

H Hitchcock

G J Baker

A Carter

G George

R Heaton

C Knowles

SECRETARY:

Acuity Secretaries Limited

REGISTERED OFFICE:

3 Assembly Square

Britannia Quay

Cardiff Bay

Cardiff

CF10 4PL

REGISTERED NUMBER:

07545730 (England and Wales)

AUDITORS:

BPU Limited

Chartered Accountants

Statutory Auditor

Radnor House

Greenwood Close

Cardiff Gate Business Park

Cardiff

CF23 8AA

The directors present their strategic report for the year ended 30 November 2025.

PRINCIPAL ACTIVITY

The principal activity of the business is the provision of legal services to commercial clients, which includes supplying legal advice and technology led products to facilitate legal and business processes.

REVIEW OF BUSINESS

We enjoyed a year of strong performance in the 2024/2025 financial year with a focus on the recruitment and retention of employed lawyers and consultant (self-employed) partners and building our infrastructure to support future growth over the coming years.

Our "hybrid" model of an employed division and self-employed (consultant) division within a single business continues to distinguish us from our competitors and is one that we believe is well suited for a modern professional services firm. It allows us to attract experienced talent and to support our senior lawyers through technology and the efficient use of junior lawyers.

We are benefitting from the rapid growth of AI backed solutions for the legal sector. We are investing to support our lawyers to drive efficiencies and to improve both margin and the quality and range of client services. Our investment in technology aligns with our scale-up plans and we see an opportunity to rapidly increase market share over the next few years.

Key Performance Indicators (KPIs)

During the 2024/25 financial year we achieved the following KPIs which are relative to the 2023/24 financial year:

-

Turnover increased by 14.8% despite a slight reduction in the average number of employees during the year, demonstrating the Company's ability to generate higher revenue through efficiency gains, smarter pricing and the delivery of high-quality, value-added services to our clients.

-

Overhead costs as a percentage of sales decreased by 2% during the year, reflecting the Company's continued investment in the automation of back-office support functions and the effective adoption of technology to improve operational efficiency.

-

In headline numbers, our profit before tax has increased by 64%, maintaining a healthy gross profit margin of over 40%. This reflects the Company's continued focus on managing overhead costs effectively and directing expenditure towards value-adding activities.

-

Revenue generated through consultants increased by 32% during the year, accounting for 27% of the Company's total turnover and reflecting the continued expansion of this delivery model.

PRINCIPAL RISKS AND UNCERTAINTIES

Over the course of the 2024/25 financial year we saw and increase in the level of insolvencies and restructurings within our client base than in the previous years. This brings additional work opportunities for us, but also focus on the requirement to manage lock-up.

We are seeing more clients making use of available AI tools and this is impacting on the nature of our instructions. To date, we have not seen any decrease in work levels, but are seeing a requirement for less process heavy advice and a stronger demand for strategic and tactical legal advice which aligns well with our partner led model.

FUTURE DEVELOPMENTS

We have enjoyed strong growth in various industry sectors including health and social care and energy. We see an opportunity to increase our sector footprint and to use the new technology available to us to support this growth.

We continue to build strategic alliances though our professional network and are seeing the benefits of a collaborative approach with an increase in the referral of new clients.

As our client base expands with the recruitment of new partners, our opportunity for cross-selling increases and we continue to see a huge opportunity in making better use of our client data and relationships. Where a client is instructing us in one or a limited number of areas, there is scope for us to broaden our services and make use if the client goodwill that already exists.

THIS REPORT WAS APPROVED BY THE BOARD:

R L Sellek - Director

27 August 2026

The directors present their report with the financial statements of the company for the year ended 30 November 2025.

DIVIDENDS

The total distribution of dividends for the year ended 30 November 2025 was £1,567,749 (2024 -

£978,306).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 December 2024 to the date of this report.

S R Berry

R L Sellek

H Hitchcock

Other changes in directors holding office are as follows:

G J Baker , A Carter , G George , R Heaton and C Knowles were appointed as directors after 30 November 2025 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

THIS REPORT WAS APPROVED BY THE BOARD:

R L Sellek - Director

27 August 2026

Opinion

We have audited the financial statements of Acuity Law Limited (the 'company') for the year ended 30 November 2025 which comprise the Profit & Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, 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 our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 November 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risks of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment.

The laws and regulations that we determined were most significant to the company were the Companies Act, UK Corporate Tax Laws, Employment Laws, the Data Protection Act, SRA Regulations and Money Laundering Regulations.

We obtained an understanding of how the company is complying with those laws and regulations by making enquiries of the management and those charged with governance, and corroborated these enquiries through our review of board minutes and review of legal and professional spend for the year.

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. We addressed the risk of management override of internal controls and assessed the effectiveness of the controls that management has in place to prevent and detect fraud, including testing of manual journals and evaluating the assumptions and judgements made by management in its significant accounting estimates.

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 Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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 a Report of the Auditors 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.

Nicholas Matthew Toye FCA (Senior Statutory Auditor)

for and on behalf of BPU Limited

Chartered Accountants

Statutory Auditor

27 August 2026

TURNOVER

18,626,783

16,227,079

Cost of sales

(10,946,581

)

(9,514,173

)

GROSS PROFIT

7,680,202

6,712,906

Administrative expenses

(5,082,617

)

(4,745,235

)

2,597,585

1,967,671

Other operating income

40,000

40,000

OPERATING PROFIT

3

2,637,585

2,007,671

Impairment of investment

4

-

(388,357

)

2,637,585

1,619,314

Interest receivable & similar income

269,567

204,396

2,907,152

1,823,710

Interest payable and similar expenses

5

(91,150

)

(111,547

)

PROFIT BEFORE TAXATION

2,816,002

1,712,163

Tax on profit

6

(754,916

)

(445,613

)

PROFIT FOR THE FINANCIAL YEAR

2,061,086

1,266,550

PROFIT FOR THE YEAR

2,061,086

1,266,550

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,061,086

1,266,550

FIXED ASSETS

Intangible assets

8

639,926

793,162

Tangible assets

9

188,431

243,922

Investments

10

255,000

255,000

1,083,357

1,292,084

CURRENT ASSETS

Work in progress

11

3,378,094

2,701,100

Debtors

12

6,611,185

7,236,236

Cash at bank

1,816,382

558,002

11,805,661

10,495,338

CREDITORS

Amounts falling due within one year

13

4,405,138

3,315,036

NET CURRENT ASSETS

7,400,523

7,180,302

TOTAL ASSETS LESS CURRENT LIABILITIES

8,483,880

8,472,386

CREDITORS

Amounts falling due after more than one year

14

(142,131

)

(611,974

)

PROVISIONS FOR LIABILITIES

17

(48,000

)

(60,000

)

NET ASSETS

8,293,749

7,800,412

CAPITAL AND RESERVES

Called up share capital

18

2,926

2,926

Retained earnings

19

8,290,823

7,797,486

SHAREHOLDERS' FUNDS

8,293,749

7,800,412

The financial statements were approved by the Board of Directors and authorised for issue on 27 August 2026 and were signed on its behalf by:

R L Sellek - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 December 2023

2,926

7,509,242

7,512,168

Changes in equity

Dividends

-

(978,306

)

(978,306

)

Total comprehensive income

-

1,266,550

1,266,550

Balance at 30 November 2024

2,926

7,797,486

7,800,412

Changes in equity

Dividends

-

(1,567,749

)

(1,567,749

)

Total comprehensive income

-

2,061,086

2,061,086

Balance at 30 November 2025

2,926

8,290,823

8,293,749

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

This is on the basis that this will be included within the consolidated accounts of Acuity Law Holdings Limited, the ultimate controlling parent.

Turnover

Turnover is measured at the fair value of the consideration receivable or received excluding discounts, rebates and value added tax in relation to the provision of legal and associated consultancy services.

Goodwill

Goodwill being the amount paid in connection with the acquisition of two businesses in 2018, is being amortised evenly over the estimated useful life of five years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Furniture & fittings

-

10% straight line

Computer equipment

-

33% straight line

Work in progress

Income due in respect of contracts for uninvoiced ongoing services is recognised by reference to the stage of completion at the year end. The amount of uninvoiced services is shown in the balance sheet as work in progress. Where work is undertaken on a no win no fee basis (also known as conditional fee arrangements) and the outcome is uncertain at the balance sheet date no income is recognised.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Investments in subsidiaries and associates

Investments are measured at cost less any impairment.

2.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

7,473,925

6,769,966

Social security costs

899,945

804,316

Other pension costs

298,457

299,205

8,672,327

7,873,487

The average number of employees during the year was as follows:

2025

2024

Employees

114

118

2025

2024

£

£

Directors' remuneration

434,985

601,677

Directors' pension contributions to money purchase schemes

21,642

23,561

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

176,104

278,344

Pension contributions to money purchase schemes

8,750

8,750

3.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Depreciation - owned assets

89,021

95,033

Loss on disposal of fixed assets

7,701

4,398

Goodwill amortisation

153,236

-

Audit fees

31,000

24,500

Auditors' fees non audit work

50,894

63,393

Operating Leases - Land and buildings

511,140

565,261

Operating Leases - Equipment Hire

30,885

32,444

4.	EXCEPTIONAL ITEMS

2025

2024

£

£

Impairment of investment

-

(388,357

)

The company purchased the share capital of Goodman Grant Holdings Limited (now Acuity Project Solutions Limited) in 2022. The trade and assets of Goodman Grant Solicitors Limited, the trading subsidiary of this group were transferred into Acuity Law Limited. The Directors have re assessed the value at which this investment was being carried and made an appropriate impairment to reflect its fair value. The Directors have also considered the presentation of this investment and it has been reclassified as goodwill which more appropriately reflects its nature. Although the investment no longer has a value as that company has no trade or assets, there is still value in the underlying trade which continues in Acuity Law Limited.

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

69,134

87,941

Other interest

22,016

23,606

91,150

111,547

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

766,916

450,613

Deferred tax

(12,000

)

(5,000

)

Tax on profit

754,916

445,613

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

2,816,002

1,712,163

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

704,001

428,041

Effects of:

Expenses not deductible for tax purposes

55,506

124,145

Depreciation in excess of capital allowances

11,699

11,901

Adjustments to tax charge in respect of previous periods

(4,290

)

(113,474

)

Deferred Tax movement

(12,000

)

(5,000

)

Total tax charge

754,916

445,613

7.

DIVIDENDS

2025

2024

£

£

Ordinary shares of £1 each

Paid

1,567,749

978,306

8.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 December 2024

and 30 November 2025

793,162

AMORTISATION

Amortisation for year

153,236

At 30 November 2025

153,236

NET BOOK VALUE

At 30 November 2025

639,926

At 30 November 2024

793,162

The Directors have considered the presentation of the investment in Goodman Grant Holdings Limited (now Acuity Project Solutions Limited) and it has been reclassified as goodwill which more appropriately reflects its nature. Although the investment no longer has a value as that company has no trade or assets, there is still value in the underlying trade which continues in Acuity Law Limited.

9.	TANGIBLE FIXED ASSETS

Furniture &

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 December 2024

395,546

486,640

882,186

Additions

120

41,111

41,231

Disposals

(14,050

)

-

(14,050

)

At 30 November 2025

381,616

527,751

909,367

DEPRECIATION

At 1 December 2024

243,357

394,907

638,264

Charge for year

27,725

61,296

89,021

Eliminated on disposal

(6,349

)

-

(6,349

)

At 30 November 2025

264,733

456,203

720,936

NET BOOK VALUE

At 30 November 2025

116,883

71,548

188,431

At 30 November 2024

152,189

91,733

243,922

10.	FIXED ASSET INVESTMENTS

Unlisted

investments

£

COST

At 1 December 2024

and 30 November 2025

255,000

NET BOOK VALUE

At 30 November 2025

255,000

At 30 November 2024

255,000

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Adam Street Group Limited

Registered office: 3 Assembly Square, Britannia Quay, Cardiff, Wales, CF10 4PL

Nature of business: Dormant

%

Class of shares:

holding

£1 Ordinary shares

100.00

2025

2024

£

£

Aggregate capital and reserves

1

1

Maple & Black Law Limited

Registered office: 3 Assembly Square, Britannia Quay, Cardiff, Wales, CF10 4PL

Nature of business: Dormant

%

Class of shares:

holding

£1 Ordinary shares

100.00

2025

2024

£

£

Aggregate capital and reserves

2

2

New LL Limited

Registered office: 3 Assembly Square, Britannia Quay, Cardiff, Wales, CF10 4PL

Nature of business: Dormant

%

Class of shares:

holding

£1 Ordinary shares

100.00

2025

2024

£

£

Aggregate capital and reserves

1

1