The directors present the strategic report for the year ended 31 December 2025.
Castlefield Group Limited is the parent company of two trading subsidiaries, owning 100% of Castlefield Recruitment Limited and 75% of Ogden Scott Limited with offices in Manchester and Leeds.
Castlefield Recruitment is a human capital business, operating in the UK, in the Public, Private and Professional Services sectors and providing specialist recruitment services on a permanent, contract and interim basis.
The company is passionate about ensuring that all employees understand the balance of matching its customers’ needs to a simple and cost-effective resourcing solution.
The key to this service is proactive search methodology. This ensures thorough knowledge of the talent pool, excellence in delivery and long-term value – all part of the commitment to building lasting relationships.
Castlefield Recruitment constantly seeks to deliver a professional, honest and straightforward approach that not only offers the highest level of service, but also strives to stay at the forefront of an ever-changing market place.
Ogden Scott is a bespoke recruitment company specialising in permanent, contract and interim actuarial recruitment.
Credit risk
As its clients are diverse and predominantly in the public sector, the credit risk is relatively low compared to other recruiters. Castlefield Group has a robust credit control function and processes, and a prudent approach to declaring dividends.
Interest risk
Castlefield Group is financed using an invoice finance facility at manageable interest rates and has no other external finance.
Key Personnel
The number of directors of the company was increased on 1st January 2022 with Jack Barnes joining the board. There is no reliance on one individual as the board of directors is supported by an experienced management team, with individuals specialising in the various market sectors.
Economic risk
As an established brand, with a diverse portfolio of clients and sectors predominantly across the public sector, Castlefield Group has mitigated its exposure to economic risk. Castlefield Recruitment trades under a number of public sector framework agreements, having successfully re-tendered for the contracts over the last few years, and it continues to further diversify the income streams through new sectors and new geographical locations.
Castlefield Group has had a positive year of financial performance whilst facing recruitment sector wide challenges resulting from the current political, economic and global climate. In particular, the recruitment sector has a whole has been adversely affected by rising salary costs since April 2025 due to increases to national minimum wage, the employer national insurance percentage and the national insurance threshold.
The company has continued to successfully implement the strategy of diversifying the client base with new customers and geographical locations, along with focusing on cost reducing efficiencies across the business. Continued strengthening and building of the relationships with the company’s original public sector clients in the North West and Yorkshire has contributed to the positive result for 2025 and we have seen growth in the new sectors introduced into the company by the recruitment of key talent in 2024 and early 2025.
Ogden Scott Ltd has had a difficult period of trading resulting in an operating loss before exceptional items of £63k (2024 - £11k loss). The decision was taken to cease trading in October 2025 and to strike off and dissolve Ogden Scott in February 2026. This has resulted in a £243k write off of intercompany debt owed to Castlefield Recruitment by Ogden Scott. This is accounted for as an exceptional item in the subsidiary accounts.
Overall a good level of performance has been maintained this year with turnover of £13.0m (2024 - £14.8m) and gross profit of £3.7m (2024 - £3.8m). Although turnover has reduced, gross profit has remained consistently high due to a change in the sales mix to more permanent placements and higher margin temporary contracts.
The underperformance of Ogden Scott has resulted in a net loss before tax for the group of £44k (2024 - £127k loss). However, due to the actions of the directors to close down Ogden Scott and the positive trends showing in Castlefield Recruitment, the performance of the group is expected to grow in 2026. The group maintains a strong £0.8m net assets position on the balance sheet (2024 - £0.9m).
The application to strike off and dissolve the Castlefield Group subsidiary Ogden Scott Limited was made in February 2026.
The business continues to pursue its policy of organic growth.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2025.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
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;
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 Castlefield Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, 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.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the group and parent company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent company by discussions with directors and by updating our understanding of the sector in which the group and parent company operates.
Laws and regulations of direct significance in the context of the group and parent company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified:
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of group and parent company financial statement disclosures. We reviewed the parent company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
As group auditors, our assessment of matters relating to non-compliance with laws or regulations and fraud differed at group and component level according to their particular circumstances. Our communications included a request to identify instances of non-compliance with laws and regulations and fraud that could give rise to a material misstatement of the group financial statements in addition to our risk assessment.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, 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 by, for example, forgery or intentional misrepresentations, or through collusion.
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 £2,573 (2024 - £3,227 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
Castlefield Group Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is 14 King Street, Leeds, England, LS1 2HL.
The group consists of Castlefield 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 company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Castlefield 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 December 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.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group incurred a loss during the year due to the performance of Ogden Scott Limited which led to the directors decision to apply for voluntarily strike off of the company at Companies House on 3 February 2026. Management has prepared detailed cash flow forecasts covering a period of at least 12 months from the date of approval of these financial statements. These forecasts indicate that the company and group will be able to meet its liabilities as they fall due.
Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover from temporary placements, representing fees billed for the services of temporary staff including their costs, is recognised when the service has been provided to the customer. Turnover from permanent placements is recognised on the invoice date which are raised around the candidate start date.
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 income statement.
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.
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 statement of financial position 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 trade and other debtors, 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 trade 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.
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 income statement 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 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.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The group operates an Enterprise Management Incentive Scheme Share Option Plan for the benefit of certain
employees as is approved by Her Majesty’s Revenue & Customs. In determining whether a share-based payment charge should be recognised, management is required to assess the probability of the vesting conditions being met. Based on current performance indicators and the specific vesting criteria attached to the options, management has judged that the likelihood of the options vesting as being remote at this time. As a result, the cost of the share-based payment expense has been disregarded in the preparation of these financial statements. This judgement involves consideration of both internal and external factors and will be reassessed at each reporting date should circumstances change.
Also, a management estimate has been made to write off the intercompany debtor balance between Castlefield Recruitment Limited and Ogden Scott Limited as part of the decision by the directors to cease trading in Ogden Scott Limited in October 2025 and the subsequent application to voluntarily strike off the company via Companies House on 3 February 2026. There is no effect on the consolidated accounts as these balances net off.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
Sums paid to third parties in respect of directors' services include £nil (2024 - £9,000). The directors represent the key management personnel of the Group.
The above exceptional item represents an amount owing to a director in Ogden Scott Limited. Subsequently, this has been written off in the current year as part of the decision to cease trading in October 2025 and voluntarily strike off the company on the 3 February 2026.
The actual charge/(credit) for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
In October 2025, Ogden Scott Limited ceased trading and the directors decided to apply for voluntarily strike off of the company at Companies House on 3 February 2026. As a result the revenue, costs and profit on disposal of this company have been separately disclosed within the profit and loss account in relation to this discontinued operation. The comparative profit and loss account has also been updated to reflect this discontinued operation.
During the year, the company recognised an impairment charge in respect of its investment in Ogden Scott Limited following its cessation of trade in October 2025 and subsequent application to strike off via Companies House on 3 February 2026.
Details of the company's subsidiaries at 31 December 2025 are as follows:
The following subsidiary is exempt from audit under the requirements of s479A of the Companies Act 2006. Castlefield Group Limited guarantees the company under s479C of the Companies Act 2006 in respect of the year ended 31 December 2025.
Ogden Scott Limited - Company No. 12088855
HSBC Bank PLC has a fixed, floating charge over all the assets and a legal assignment of contract monies.
HSBC Invoice Finance (UK) Ltd holds a security over all monies due or to become due from the company to the charge on any account whatsoever under the terms of the aforementioned instrument creating or evidencing the charge.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
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 ordinary shares, B ordinary shares and C ordinary shares carry the same rights, preferences and restrictions. Each share carries the right to vote at general meetings, entitled to receive dividends and is entitled to participate in the assets available for distribution on the winding up of the company.
Called-up share capital - represents the nominal value of shares that have been issued.
Share premium is the amount paid for shares issued in excess of the nominal value.
Profit and loss account - includes all current and prior period retained profits and losses.
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:
Following the year end, the directors have decided to apply for voluntarily strike off of Ogden Scott Limited (Castlefield Group Limited is a 75% shareholder of Ogden Scott Limited) at Companies House on 3 February 2026.
Included within debtors at 31 December 2025 is a loan to Ogden Scott Limited (Castlefield Group Limited is a 75% shareholder of Ogden Scott Limited) which was written off in the current year to £nil (2024 - £158,264).
Included within creditors at 31 December 2025 is a balance of £10,000 (2024 - £7,841) owed to Castlefield Group Limited.
Additionally, Ogden Scott Limited had a director's loan to Mrs C E Ogden amounting to £nil (2024 - £8,891).
The company rented out office space in the year ended 31 December 2025 to Ogden Scott Limited for the sum of £5,000 (2024 - £6,000).
The non controlling interest represents Mrs C E Ogden's 25% holding in Ogden Scott Limited. The company has ceased trading in October 2025 which has led to the decision for the directors to voluntarily strike off Ogden Scott Limited in February 2026.