The directors present the strategic report for the year ended 31 December 2025.

The Group continued to provide specialist recruitment and workforce solutions across the energy, engineering and infrastructure sectors during 2025.

Market conditions remained challenging across parts of the recruitment sector, with softer hiring activity and delays to some client investment and project decisions affecting demand.

Against this backdrop, Group turnover was £136m and gross profit was £5.9m.

The Group remained profitable and continued to manage its operating cost base while maintaining investment in the people, systems and capabilities required to support future growth.

Our broad client and sector base remains an important strength, with activities spanning contract and permanent recruitment, workforce solutions, compliance and payroll services across the UK and international markets.

Performance in 2025

Performance during the year reflected the more challenging recruitment environment, with lower turnover and gross profit compared with 2024.

Management maintained a strong focus on operating efficiency and cost control throughout the year, helping to mitigate some of the impact of lower recruitment activity.

The Group continued to support a broad range of established clients while developing opportunities across markets where significant long-term investment is expected, particularly energy, nuclear, power and infrastructure.

The group has maintained a net asset position at year-end, illustrating strong financial stability.

Group performance remains influenced by wider economic conditions, client investment decisions and the timing of major projects.

The Group's contract recruitment activities require significant working capital. Financing costs, debtor exposure and cash management therefore remain important areas of focus.

The Group operates across regulated recruitment, employment, payroll and international markets and continues to maintain appropriate compliance and operational controls.

International development provides opportunities for growth but also creates additional financial, regulatory and operational risks. Investment in new markets is therefore aligned to identifiable client demand and project opportunities.

Attracting, developing and retaining effective people remains important to improving recruitment productivity and supporting future growth.

The main risk areas are:

Internal control risk

Our leadership team regularly review the system of internal financial and non-financial controls in operation and these include controls designed to ensure that our assets are safeguarded and accurate accounting records are maintained. Continual improvements to our internal systems and processes ensure compliance, efficiency and integrity within a seemingly constant flow of legislative and regulatory changes, related to the hiring and engagement of permanent and contingent workers.

Currency risk

Fluctuations in exchange rates over the year have a minor impact on our results because of the relatively low level of overseas trade. We continue to minimise this risk in our commercial arrangements with customers and suppliers.

Financial risk

We will take quick and appropriate actions to mitigate any risks and uncertainties arising from sudden and unexpected reductions in the demand from our customers to measure, review and manage the impact of these risks regularly, together with the now very significant risk of inflationary pressures that could result in interest rate changes and increased banking costs.

Interest rates

We continually monitor and forecast likely interest rate changes to mitigate any serious impact upon our business overheads and cash flow.

General

We have a wide customer base across a range of market sectors. We’re also anticipating continued demand for our specialist services, for high demand, skilled and experienced engineers and technical personnel on a permanent and contingent basis. Our leadership team remain focussed on continually undertaking regular and robust reviews of the future risks and opportunities that exist within our market sectors.

Our leadership team continues to measure and manage the group performance against our detailed annual goals, budgets and forecasts.

The performance of the group during the year didn’t meet our budget forecasts, however we are confident that our operational plans and focus on increasing our investment in our core expertise and specialist recruitment staff will contribute to our strong history of profitable and cash-generative results.

Gross profit margins have been squeezed due to the inflationary pressures within the UK economy. Rising costs across all aspects of our operations have had an impact on our results. Increased competition for experienced specialist recruitment staff has also been a challenge, however effective cost controls and focus on efficiency by the management team has enabled the group to achieve significant results and profits. The group continues to maintain a significant net assets position, illustrating the strong and stable financial position of the group.

Non-financial key performance indicators

Group - People

Employee engagement remained positive during 2025, with 89% of employees responding to our wellbeing and EDI survey agreeing or strongly agreeing that they felt they belonged at First Recruitment Group. We continued to invest in the development, wellbeing and engagement of our people throughout the year.

Group - Health & Safety/ Compliance

Health & safety and compliance remained important measures across the Group throughout 2025, supported by our established management systems and internal controls. Our business proves its high standards for compliance continuously through successful external audits with clients and accreditation bodies, always with positive observations on how we operate and go above and beyond to ensure high service levels. We regularly supported clients with sector relevant legislation, such as IR35, the upcoming changes to employment legislation, and umbrella reforms, to ensure best practise across the supply chain.

Group - Systems / Back Office

Our recruitment and back office systems continued to support the operational requirements of the Group during 2025.

Group - ESG

We continued to monitor our environmental and ESG performance throughout 2025. Our ISO 14001 environmental management system was independently assessed during the year, with positive feedback received through the annual surveillance audit. We also continued our activity across energy management, recycling, employee awareness and environmental reporting.

Group - Looking Ahead

Going into 2026, the Group is increasing its focus on quality over quantity across recruitment delivery. This includes better qualification of roles and candidates, improving conversion and fill rates and focusing on higher value placements rather than simply increasing activity. We expect this approach, together with continued investment in our systems, people and management information, to drive improvement across our key recruitment and operational KPIs during 2026.

Outlook

The Group entered 2026 with a clear focus on improving underlying recruitment performance while continuing to invest selectively for future growth.

Investment in technology is a key part of this strategy, including the implementation of a new CRM platform designed to improve recruitment productivity, data quality, management information and operational efficiency.

International development also remains an important area of focus. The Group is investing in Poland to position the business to support major energy and infrastructure projects as workforce requirements develop.

Across the wider Group, activity within nuclear, power, energy and infrastructure provides a number of opportunities. Many of these projects are long-term programmes where recruitment demand is expected to develop through 2026 and into 2027.

The Group will continue to focus on improving recruitment performance, increasing contractor headcount, maintaining cost discipline and developing opportunities across its core UK and international markets.

Section 172(1) of the Companies Act 2006 imposes a general duty on every group director to act, in good faith, in the way they consider would be most likely to promote the success of the group for the benefit of its shareholders, while taking into account how the group’s activities and Board decisions will affect its stakeholders. This statement explains how the Board complies with its obligations under s172.

The group recognises the importance of its stakeholders’ views and actively engages with them, proactively considering their interests in the decisions it makes.

Our purposes, strategy and core values

We are committed to supporting our local and the wider community. Our culture is driven by our commitment to our mission, vision and values which ensures that we succeed in the current rapidly changing political and economic economy.

We remain positive and determined to continue to focus on investment in staff development and our business systems to minimise risk and maximise opportunities.

Recent investments have demonstrated our commitment to be a quality, honest and trustworthy group with efficient and reliable recruitment and workforce management solutions. We remain committed to safeguarding and maintaining our compliance and that of our clients and candidates within the highly regulated contingent workforce market sector.

Employees

We have regular social events, celebrations, gifts for births, birthdays, weddings etc. and regular group meetings to explain our operational and financial results, present employee awards and provide updates of our charity and social support initiatives.

•    We’re fully invested in our employees’ development.

•    We support each of them, in every possible way.

•    We involve them in significant decisions.

•    We’re there for them when they have personal or family issues.

•    We all pull together to minimise the negatives and maximise the positives.

•    We’re delighted that our staff are central in defining the mission and values of our group.

All staff are kept up to date with our bi-weekly newsletter, highlighting personal achievements, positive clients focused news, new employees, legislative, system, QHSE updates and more.

We celebrate successes on a daily basis and our staff are rewarded based on their agreed goals, service delivery and openly shared performance results.

We remain committed to all our staff being paid at least the “real” Living Wage.

Our approach is based upon the values of the original founders of the group, who created a unique business model, based on a strong commitment to maintaining regular contact and good understanding of our experienced engineering and technical sector candidates. The foundations of this approach continue to change and evolve to satisfy the needs and desired work aspirations of our candidates and our clients’ workforce requirements.

We provide additional value through regular contact, open dialogue and by sharing with our customers our knowledge and expertise via news insights, blogs and recruitment legislation guidance. Alongside this we maintain strong relationships with our key suppliers with an emphasis on fair and ethical trading, open and honest dialogue.

Environmental/ social responsibility

We believe in supporting charitable organisations that align with our two main desired outcomes;

1.    To be effective, whilst not having to spend vital donations on employing lots of highly paid staff and;

2.    To provide sustainable support and development to poor and/or vulnerable people.

We’re a Disability Confident Employer (Level 2) and we approach diversity and inclusion (D&I) by actively engaging with EVENBREAK to further develop our knowledge and capabilities of disability in the workplace. We strongly believe our organisation can benefit through tapping into this broader range of talent both for ourselves and for our clients and this is central to us achieving a diverse, inclusive and vibrant organisation.

We are committed to full compliance with GDPR. Our GDPR processes and policy are regularly reviewed to ensure all risks are addressed and compliantly managed. We also take cyber security very seriously therefore our systems and customer data are well protected, tested and verified.

The senior management team will continue to focus on delivering world class recruitment solutions to our existing clients whilst developing new relationships with clients within our chosen sectors. We’re pleased to report that our investments into “neutral vendor” workforce management services and a new fully compliant payroll and billing solution are now well established. The senior management team expect these solutions to continue to grow in line with the expectations of our clients and contractors and with the continual increases in legislative compliance requirements. Our broad range of service offerings, engagement with our contractors, our clients and the wider contingent workforce will also help to promote our brand and enhance our reputation as a provider of excellent, fully compliant recruitment solutions.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2025.

The principal activity of the company and group continued to be that of outsourcing and placement of permanent and contract personnel, primarily in the technical and engineering industries.

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £1,796,200. The directors do not recommend payment of a further 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 attaches particular importance to the needs of disabled people. Under the terms of the group's Corporate Social Responsibility policy, managers are required to:

• Make reasonable adjustment to maintain the services of an employee who becomes disabled, for example, training, provision of special equipment, reduced working hours.

• Include disabled people in training/development programmes.

• Give full and proper consideration to disabled people who apply for jobs, having regard to making reasonable adjustments for their particular aptitudes and abilities to allow them to be able to do the job.

It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

To further support the needs of disabled people, the following measures have been implemented as part of the group's Diversity and Inclusion policy:

• Communicating why we are targeting disabled employees and candidates, together with the benefits.

• Establishing long-term relationships with agencies, organisations and schemes such as Disability Confident.

• Making our website fully accessible to disabled candidates.

• Include job boards in our preferred supplier list that specifically target disabled candidates along with other diverse websites.

• Ensuring that it is known that our facilities are fully accessible, and we are prepared to offer a reasonable alternative.

• Making sure all our employees are aware of our strategy and obligations and how they can support these.

The group's policy is to consult and discuss with employees, matters likely to affect employees' interests.

Information about matters of concern to employees is communicated through channels such as our Weekly Voice internal newsletter, social media and our intranet and these seek to achieve a common awareness on the part of all employees of the factors affecting the group's performance.

As part of the group's Diversity and Inclusion policy, the following areas have been identified to further promote employee involvement throughout the group:

• Educating employees so they are aware of the group's strategy and obligations, how they can support these and keeping them updated on the group's progress.

• Developing the group's understanding of where it is and identifying what more it needs to do through interaction with employees and candidates.

The auditor, Sumer Auditco Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The group presents its emissions and energy consumption below:

The directors report the Group's emissions with reference to the UK Government Environmental Reporting Guidelines. The 2025 UK Government GHG Conversion Factors for company reporting published by the UK Departments for Energy Security and Net Zero and Environmental, Food and Rural Affairs (DEFRA) are used to convert energy used in the company operations to emissions of CO2. Data sources include bills from energy suppliers, maintenance reports (air-conditioning) plus internal fuel use from our annual employee transport and commute survey.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £1,000,000 turnover, the recommended ratio for the sector.

The following measures have been taken to reduce the groups CO2 emissions:

• ISO14001 Environmental Management System certification achieved in Q1 2026;

• 'Zero Carbon Certificate' (valid to December 2026) confirming 100% of electricity supplied to Parry House by British Gas generated via mix of renewables energy guarantees of origin and nuclear declarations;

• Energy Savings Opportunities Scheme (ESOS) Action Plan implemented;

• Our Green / Sustainability Team continues to identify and promote emissions reduction opportunities alongside other sustainability initiatives eg:

• Phasing out the use and purchase of single-use plastics;

• Purchase of recycled and EU Ecolabel copier paper only;

• Adoption of 'Agile Working' reducing commuter miles;

• Establishment of remote candidate interviewing and client liaison encouraged via video-conferencing;

• Annual transport / commute survey conducted for FY 2025 and results and areas for improvement analysed;

• 'Bike-to-Work' salary sacrifice scheme in place;

• EV salary sacrifice scheme in place;

• Multipoint EV charging points installed for employees;

• 'Simpler Recycling' zone installed including used small battery recycle station.

• Training and awareness:

• Sustainability / energy awareness training embedded in the induction process;

• New sustainability modules added to employee awareness refresher schedule;

• Sustainability Awareness presentation added to Lunchtime Learning library;

• Updated Employee Business Travel and Expenses Policy launched;

• New EV Salary Sacrifice Policy launched.

Management review:

• Sustainability / energy efficiency progress reported at the periodic Management Review.

Building Energy Performance Certificate (EPC) Grade

Parry House, the main office of the group is 'Rating C' with the EPC Certificate valid until 4th March 2031.

EPC Certificate no: 2100-3987-4090-9200-9101

The directors are responsible for preparing the Annual Report 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 group and 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 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 group and 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments, business relationships, principal risks and uncertainties.

We have audited the financial statements of First Technical Recruitment 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 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).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2025 and of the group's 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 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

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

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.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

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

• the parent company 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.

As explained more fully in the directors' responsibilities statement, 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 is 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

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 auditor's 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.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: laws related to employment, off-payroll working, health & safety and data protection.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.

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. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:

• Matters are discussed amongst the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud

• Identifying and assessing the design and effectiveness of controls that management have in place to prevent and detect fraud

• Detecting and responding to the risks of fraud following discussions with management and enquiring as to whether management have knowledge of any actual, suspected or alleged fraud;

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 £1,178,963 (2024 - £2,557,958 profit).

First Technical Recruitment Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Parry House, Birchwood Boulevard, Birchwood, Warrington, Cheshire, WA3 7QU.

The group consists of First Technical Recruitment 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 33 ‘Related Party Disclosures’: Compensation for key management personnel.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company First Technical Recruitment 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.

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.

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.

At the balance sheet date, the company is in a net current liabilities position of £116,752, although the group is in a net current asset position. At the balance sheet date, the company owes £1,037,049 (2024: £1,209,120) to its trading subsidiary, Talascend Limited. This balance is included in creditors: amounts falling due within one year on the basis that there is no formal loan agreement between the companies, and therefore the balance is deemed to be repayable on demand. However, continued group support has been confirmed by the subsidiary company that repayment will not be sought until cash flow permits.

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.

Revenue constitutes the value of services undertaken by the company from its principal activities, which are recruitment consultancy and other ancillary services. These consist of:

• Revenue from temporary placements, which represents amounts billed for services of temporary staff, including the salary cost of these staff. This is recognised when the service has been provided.

• Revenue from permanent placements is typically based on a percentage of the candidate's remuneration package. Income is recognised at the candidate's start date.

• Revenue from amounts billed to clients for expenses incurred on their behalf is recognised when the expense is incurred.

• Revenue from accounting and bookkeeping services is recognised as the services are provided.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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 and associates 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 accounted for at cost less impairment.

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.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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.

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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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.

Dividend income

Dividend income receivable from subsidiary companies is recognised in the period they are voted.

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 estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The directors make estimates regarding the cost of sales accruals required at year-end. The estimate is based on the level of corresponding accrued income less an appropriate gross margin. At the year-end, the directors have included cost of sale accruals of £2,251,106 (2024: £3,058,542). Refer to note 18 for the accruals balances which are impacted by this key accounting estimate.

During the year, the £807,436 decrease (2024: £496,435 decrease) in this accrual estimate has been recognised within cost of sales.

The realisation of the deferred tax asset is dependent upon projections of future trading coming to fruition, and therefore by its very nature there is a level of estimation uncertainty. At the year-end, the directors have included a deferred tax asset of £1,215,267 (2024: £1,554,640) based on the estimated utilisation of tax losses in future years. Refer to note 19 for the carrying value of deferred tax asset at the balance sheet date.

During the year, the utilisation of tax losses resulted in the release of £339,373 (2024: £329,864) as outlined in note 10.

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).

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 December 2025 are as follows:

Registered office addresses (all UK unless otherwise indicated):

Whilst the company owns 90% of the issued share capital of Operam Managed Solutions Limited, it has retained 100% voting control as the B Ordinary shares issued in Operam Managed Solutions Limited hold no voting rights.

Primis Accounting Services Limited is exempt from audit under the provisions of s479a of the Companies Act 2006. The company has provided a guarantee for the liabilities of this subsidiary in connection with the year ended 31 December 2025.

Details of associates at 31 December 2025 are as follows:

Registered office addresses (all UK unless otherwise indicated):

1 F676/1, Angola Road, Kuku Hill Accra, P.O Box 0854 Ghana

Group

Included in other creditors are balances of £10,021,683 (2024: £10,631,324) in respect of invoice discounting facilities which are secured by a fixed and floating charge over the group's assets.

Company

Included in other creditors is a balance of £6,647,618 (2024: £7,622,564) in respect of an invoice discounting facility which is secured by a fixed and floating charge over the company's assets.

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

The deferred tax asset set out above is the net of tax relief timing differences. Pension contributions will attract tax relief in the year paid. Accelerated capital allowances are expected to mature over the associated fixed assets useful economic life. Tax losses will be utilised against expected profits in future periods.

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.

As at the year-end, contributions due to the schemes in respect of the current reporting year were £253,712 (2024: £240,207).

All shares carry no fixed right to income and rank pari passu in every respect.

Other reserves relates to a merger relief reserve that arose as a result of the acquisition of Lema Holdings Limited.

The share premium account represents consideration paid or payable in excess of the par value of the share capital.

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:

The company has taken advantage of the exemption provided in Financial Reporting Standard 102 Section 33 from disclosing related party transactions with wholly owned members of the group.

Company

At the year end, the company owed £266,582 (2024: £133,292) to the Trustees of the First Technical Recruitment Limited Pension Fund. Rent of £222,151 (2024: £222,154) was charged in the year.

During the year, the company received management service fees of £73,564 (2024: £72,055) from a company under significant influence.

At the year end, the company was owed £Nil (2024: £Nil) from a company under common control. During the year, repayments totalling £Nil (2024: £28,458) were received from this company.

At the year end, the company was owed £504,746 (2024: £514,449) from a 90% owned subsidiary company. Payroll processing fees of £8,869 (2024: £41,625) and subcontractor fees of £519,916 (2024: £676,462) were charged to the subsidiary company during the year.

During the current and prior year, the company has employed a number of close family members of the directors. During the year, the company has paid gross wages of £102,662 (2024: £69,374), employers NIC of £10,209 (2024: £5,805) and employers pension contributions of £1,036 (2024: £1,284) in respect of these employees.

Balances outstanding at the year-end are unsecured, non-interest bearing and repayable on demand.

Group

During the year, the group charged subcontractor fees of £6,857,739 (2024: £10,492,553) to a company that is under significant influence of the group. At the year end, the group was owed £1,327,026 (2024: £1,048,048) from this company.

Balances outstanding at the year-end are unsecured, non-interest bearing and repayable on demand.

Dividends totalling £1,796,200 (2024 - £2,130,500) were paid in the year in respect of shares held by the company's directors.