The directors present their strategic report for Penta Consulting Limited ("the company") and its subsidiaries ("the group") for the year ended 31 March 2025.
We are proud to report our record breaking best year of trading.
Founded in March 1998, Penta Consulting has delivered bespoke Technology Resource Solutions to the Technology and Telecoms industries, globally, for over 27 years.
Headquartered in the UK and with 11 offices across the globe, Penta has developed long term partnerships with most of the World’s largest Technology brands. It is these special relationships that have taken Penta into the international markets it trades in today.
Penta Consulting’s mission is to be the preferred provider of Specialised Resource Solutions and to deliver compliant and bespoke services by blending technology expertise, transparent partnerships and localised experience to drive success for our clients. We continue to deliver innovative solutions to our clients, focusing on providing excellent customer service and building long-lasting relationships. We are proud to have earned our trustworthy reputation for reliability and excellence in our industry.
Specialising in digital transformation, cloud computing, AI, and more, Penta offers three core services:
Professional Services to address skill gaps,
Managed Solutions for long-term technology support, and
Managed Resource Solutions for global workforce expansion.
Our phenomenal success and meteoric revenue growth in recent years is a testament to the strategy we have developed and deployed, our three focused complementary services enable us to rapidly create bespoke Technology Resource Solutions aligned to our Clients ever- changing needs. Our continual evolution and investment in technology and innovative practices has driven efficiencies by way of automation, rather than simply increasing headcount. While the number of our global offices, revenue, technical resources, and countries we operate in have all expanded significantly, our internal team has remained lean, with around 60 staff. This has allowed us to stay agile, operate efficiently, and scale seamlessly without compromising on quality.
With a focus on compliance and client success, Penta drives innovation and digital transformation worldwide, powering the people behind your technology. The Company’s careful curation of a highly skilled team of over 1,000 technical resources currently deployed on assignments, provides customers with digital expertise across multiple capabilities such as Cybersecurity, Cloud Computing and Software Development.
Our global expansion also continues to accelerate, with Penta now delivering Technology Resource Solutions in 80+ countries. To support our growing international footprint, we have also established new offices in Qatar and Italy, reinforcing our ability to meet client needs on a global scale. Strengthening client relationships has been another major achievement. We have deepened partnerships with existing clients, such as securing a six-year exclusive service agreement renewal with a leading international OEM, while also forging new strategic relationships.
This growth underscores the effectiveness of our technology-driven approach, allowing us to remain nimble while achieving record-breaking success. By leveraging advanced systems, automation, and data-driven decision-making, we have maximized efficiency, enhanced Client and Candidate experiences, and positioned ourselves as a leader in the Staffing industry. Our ability to generate such impressive financial results with a relatively small but highly skilled team is a testament to our commitment to innovation and operational excellence.
Recognising that the industry's reputation plays a crucial role in building trust with clients and candidates alike, Penta is committed to continuously improving and upholding our Quality Assured Standards. Over the past year, we have actively contributed to enhancing this reputation through our ethical practices, innovative solutions, and award-winning excellence.
Award-winning excellence
Penta's commitment to excellence has been recognised through various external accolades, including being honoured with ‘The King’s Award for Enterprise for International Trade 2025’. Having been previously honoured in 2006 and 2014 by Her Majesty Queen Elizabeth II, this makes Penta the only staffing business to ever be honoured three times. We were named one of the Top 100 Fastest Growing UK Tech Companies on the 2024 E2E Tech 100 List by The Independent, selected for our remarkable revenue growth, job creation, innovative solutions, and industry impact.
More recently, we were honoured with two prestigious awards at the London Chamber of Commerce and Industry SME Business Awards 2025: ‘International Business of the Year’ and the 'Overall Winner’ award, further cementing our position as an industry leader. The Sunday Times also listed Penta in the “Hundred” listing as one of the fastest growing privately owned companies in the UK and again in the their “Best Companies to work” listing. Penta Consulting has also been recognised within the Recruitment Industry, being recently named Growth Company of the Year and UK Specialist of the Year as part of the TIARA Awards.
These accolades have enhanced our reputation as a company, driving greater commercial value, press coverage, and industry recognition that positively reflects on the UK staffing industry as a whole. This also extends beyond the UK, promoting the UK staffing industry's reputation and standards to the worldwide stage.
Ethical standards and compliance
Compliance with ethical, environmental, social, and governance targets is paramount for us to support our clients effectively and uphold industry reputations. We extend this commitment to our suppliers through a stringent "Know Your Customer" process, ensuring alignment with ESG objectives. Our supplier criteria mandates adherence to ethical, anti-slavery, anti-bribery, and information security codes, all underpinned by our ISO9001, ISO27001 & ISO27701 certifications and Cyber Essential Plus certification. Our commitment to diversity and inclusion remains at the forefront of our operations.
Client and candidate relations
We believe our exceptional client service plays a key role in strengthening the industry's reputation. In the last year we made a significant investment into an external client satisfaction report, achieving an impressive overall NPS score of +73. Notably, our biggest client awarded Penta an NPS of +80 and anticipates increased spending in the near future. By consistently exceeding client expectations and building lasting partnerships, Penta has strengthened the staffing industry's image as a professional, reliable, and value-driven industry.
People
Our people first approach positively impacts our team morale, engagement and productivity. We prioritise open communication via:
regular town hall meetings to keep our employees up to date with various financial and economic factors affecting the performance of the Group;
an anonymous “Ask the Board” channel offering the opportunity to provide feedback and suggest improvements.
monthly recognition awards, ensuring our global team stays engaged and aligned.
We have been recognised in the Sunday Times Best Places to Work 2025, a distinction driven by a 90% employee engagement score from a confidential staff survey. Our average employee tenure stands at 6 years and we have consistently promoted talent to senior and board level positions. This investment in our people has enabled us to sustain growth, while keeping staff turnover low and moral high.
Innovative practices
The introduction of agile services, like Managed Resource Solutions, has enabled global workforce expansion for our clients without the need for local entities. This innovative offering ensures compliance across diverse regions and distinguishes us from competitors. Leveraging advanced technologies, such as integrated Microsoft systems, has streamlined and automated our operations and enhanced service delivery. Furthermore, our expertise in rapidly emerging technologies like artificial intelligence, cloud computing, and cybersecurity positions Penta Consulting as an industry pioneer in addressing the evolving needs of ICT enterprises worldwide.
Community engagement and social impact
Penta is dedicated to giving back to the local community. We focus on local recruitment, offering early careers opportunities such as paid work experience placements for school students and year-long internships for university students. Additionally, we have partnered with local foodbanks and charities to support those in need, and recently collaborated with the Epsom-based University of Creative Arts to commission a commemorative mural for our office. Penta encourages our employees to take the lead through volunteer work and fundraising activities that support the issues that matter most to them personally. By investing in community engagement, we are enhancing our public image, reflecting positively on the industry as a whole.
This extends beyond the UK and also applies to our international offices. For the third consecutive year, we retained our Level 1 Broad-Based Black Economic Empowerment (B-BBEE) certification in South Africa, demonstrating our leadership in promoting economic transformation and empowerment in developing countries. For our programs in South Africa we are, for the third year running, supporting disadvantaged learners by financing a 12 month drone programme for 6 students, enabling them to become certified and secure full time employment in that field.
Key performance indicators
The board monitors the progress of the group by reference to the following KPls:
2025 2024
Turnover £ million 153.2 70.6
Gross profit £ million 23.4 11.5
Gross margin % 15.3 16.3
EBITDA £ million 12.9 4.0
Debtors days 62 85
Cash £ million 4.9 1.8
Net debt £ million 3.2 6.4
Operating and financial review
The sales strategy has continued to deliver outstanding results with revenue for the year ended 31 March 2025 (FY2025) growing by £82.7m (117%) compared with the FY2024, which in turn grew by 55 % compared with FY2023. Over the last two years revenue has increased by 237%.
This growth has been driven by the sucess across our service lines, but particularly in Managed Resources and Managed Services which have seen revenue growth of over 180% and 122%, respectively, in FY2025. Turnover to international customers in the year amounted to 92% (FY2024: 87%), reflecting the global nature of our client base. The benefit of focussing on the EMEA region is access to growth markets and economies. The high level of international activity maintains the exposure to currency fluctuations, mainly in Euro and US$, the effects of which are mitigated where possible with appropriate hedging structures.
Gross profit increased by £11.9m (104%) to £23.4m (FY2024: £11.5m), however the gross margin reduced from 16.3% to 15.3% in FY2025, reflecting the change in blend of service lines.
Administrative expenses, excluding foreign exchange losses were £9.9m (FY2024 £7.3m), an increase of £2.6m (35%), of which £1.8m relates to higher staff costs as a result of increased headcount, higher variable pay and a 9% increase in UK employment taxes. Foreign exchange losses widened from £0.2m to £0.7m in FY2025, due to strengthening of GBP versus USD and Euro. Operating profit increased to £12.9m in FY2025 (FY2024 - £4.0m).
Interest payable and similar expenses in the year was £0.6m, compared with £0.3m in FY2024, primarily due to the increased funding requirements due to the business growth.
EBITDA (profit before tax, interest, amortisation and depreciation) in FY2025 was £12.9m compared with £4.0m in FY2024. Profit before tax for the year was £12.3m compared with £3.6m in FY2024.
Net cashflow from operating activities was £3.8m compared with an inflow of £2.1m in FY2024, despite an increase in trade debtors of £9.8m during the year. The growth was funded through the existing invoice discounting and overdraft facilities as well as two new export loan facilities. At 31 March 2025 net debt was £3.2m, a decrease of £3.3m and total debt had decreased from £8.3m to £8.0m.
Going Concern
The Directors have assessed the Group's and Company’s ability to adopt a going concern basis of accounting. In coming to their conclusion, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future, being a period of at least 12 months from the date of approval of these financial statements.
The Company has facilities available for the management and maintenance of monthly liquidity levels, which include:
An invoice discounting facility available to the Group to draw down on the majority of the Company’s debtors;
Multi currency export loan facilities totalling £3.5m with maturities ranging from 30 to 90 days; and
An overdraft facility amounting to £1.8m which is on an uncommitted basis and subject to a minimum annual review (October 2026 being the next review date).
Neither of the above facilities are governed by the requirement to prepare or submit financial covenants and therefore compliance with such measures has not needed to be factored into the Directors’ going concern assessment.
As such, the Directors are satisfied that the Group has adequate resources to continue to operate for the foreseeable future. For this reason, they continue to adopt the going concern basis for preparing these financial statements.
Principal risks and uncertainties
Foreign currency risk
The directors are aware of the foreign currency risks associated with transactions in a number of currencies around the world. These risks are monitored on a regular basis and the group looks to put in place natural hedges where ever possible and tries to ensure that sales and cost of sales are contracted in the matching currencies to minimise currency exposure risk. The finance facilities are held in Sterling, Euros and US Dollars.
Liquidity risk
The invoice discounting facility, export finance loans and the multi currency overdraft facility provide a flexible source of finance to manage fluctuations in cash flow. The directors monitor the liquidity and cash flow risk on a daily basis to ensure the group has sufficient liquid resources available to meet the operating requirements of the business and appropriate action would be taken where additional funds are required, for example the invoice discounting facility was recently increased to provide additional working capital to fund the continued growth in turnover.
Credit risk
The group is mainly exposed to credit risk from credit sales. It is group policy to assess the credit risk of new clients and to factor the information from these credit ratings into future dealings with the clients. The group also has credit insurance to minimise this risk. At the balance sheet date there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet.
Interest rate risk
The group has interest bearing assets and liabilities. Interest bearing assets include cash balances that only earn interest at a floating rate. Interest bearing liabilities include, bank overdrafts, and invoice discounting facility arrangements. The company has implemented policies to ensure that interest can be paid by the company when it falls due.
Section 172 of the Companies Act 2006 requires directors to take into consideration the interest of stakeholders and other matters in their decision making. The Board of Directors consider that the decisions they have made during the financial year and the way they have acted have promoted the success of the group for the benefit of its members as a whole, having regard for the stakeholders and matters set out in s172 (1) (a-f) of the Act. The Board of Directors act in a way they consider, in good faith, to be most likely to promote the success of the group for the benefit of its members as a whole. The group's key stakeholders are its internal staff, candidates, clients and suppliers. At the core of the Board's decision-making process is a desire to make decisions that are for the long-term strategic benefit of the group and its stakeholders as a whole. This is demonstrated through our many long-standing client and candidate relationships built on a high-quality service and providing a good working environment and to our internal staff.
The group engages with its employees, clients, suppliers and candidates through a variety of means, including:
Employees – Regular internal updates on the group's performance, strategy and key initiatives, through company-wide email, face to face contact with the leadership team and monthly town hall meetings.
Clients - Providing support and advice to help to build a strong long-term strategic relationship. Client performance surveys provide valuable insight into our service offering.
Suppliers - Ongoing communication with key partners and service companies.
Candidates – Dedicated Candidate Care Team who are responsible for managing relationship with a resource for the duration of their contract, from initial on boarding, through contract life cycle to off boarding on completion of assignment.
Outlook
Looking ahead, the Company's trading outlook is very encouraging, and we anticipate continued growth of revenues and gross profits through the next financial year across our key strategic business verticals. Our focus remains in the EMEA market where we have an established footprint in working with the world’s leading technology companies as a partner of choice.
Over the last three years the company has made significant investment in its people, systems and processes to create a digitally enabled platform for growth and support our ISO 9001,27001 and 27701 accreditations. We are currently in the process of achieving our fourth ISO accreditation, ISO 14001 which is a globally recognised environmental management standard that strengthens compliance, drives sustainability, and enhances competitive advantage for our long-term strategic growth.
This investment strategy has resulted in productivity levels at the highest we have ever seen and significant efficiency improvements.
At Penta, we are committed to providing innovative Technology Resource Solutions that meet the ever-evolving needs of our clients. Our expertise empowers us to anticipate changes in the market and capitalise on opportunities that arise. We are continuously investing in our operations and people, ensuring that we stand at the forefront of our industry.
We take pride in delivering a client-centric approach, and our customers have come to trust the exceptional results we provide. As we enter the next phase of our growth, we are confident that our people-focused approach to Technology Resource Solutions, coupled with our unparalleled expertise, will continue to drive success.
We are delighted to report that we are on an upward trajectory, with continued revenue and profitability growth and the opening of new offices. We are excited about the future and look forward to further success as we pursue our mission to provide the best Technology Resource Solutions that help our clients succeed.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 March 2025.
The results for the year are set out on page 13.
No ordinary dividends were paid. 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's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
There are no post reporting events to report to the date of this report.
In accordance with the company's articles, a resolution proposing that Gravita Audit II Limited be reappointed as auditor of the group will be put at a General Meeting.
In accordance with The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 the following information is disclosed in respect of the year end 31 March 2025. The data covers energy usage across all UK entities in the group. Energy usage by subsidiaries outside of the UK are outside the scope of this report and therefore excluded from the figures below:
The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.
To enhance energy efficiency across our operations, the company has implemented a range of measures, including but not limited to; using modern and energy-efficient hardware, upgrading to LED lighting in all facilities, optimising heating and cooling systems through smart thermostat controls, and installing occupancy sensors to reduce unnecessary energy usage. We have also begun conducting energy audits and have engaged external ESG consultants to help us identify further opportunities for improvement.
The company has branches, as defined in s1046(3) of the Companies Act 2006, in Ethiopia.
We have audited the financial statements of Penta Consulting Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including material accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. The laws and regulations applicable to the company were identified through discussions with directors and other management. Of these laws and regulations, we focused on those that we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, data protection, anti-bribery, anti-money-laundering and employment legislation. The extent of compliance with these laws and regulations identified above was assessed through making enquiries of management and inspecting legal correspondence. The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
understanding the design of the company’s remuneration policies.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators including the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
The notes on pages 20 to 41 form part of these financial statements.
The notes on pages 20 to 41 form part of these financial statements.
The notes on pages 20 to 41 form part of these financial statements.
The notes on pages 20 to 41 form part of these financial statements.
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 £1,215,896 (2024 - £359,409 loss).
The notes on pages 20 to 41 form part of these financial statements.
The notes on pages 20 to 41 form part of these financial statements.
The notes on pages 20 to 41 form part of these financial statements.
Penta Consulting Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Oaks House, 16-22 West Street, Epsom, Surrey, KT18 7RG.
The group consists of Penta Consulting 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 unless otherwise specified within these accounting policies. The material 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; and
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Penta Consulting 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 March 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
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. 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
Income from temporary contracts is recognised in the period in which the services are provided.
Income from permanent placements is recognised at the commencement of the placement when the group's contractual obligations have been fulfilled.
The group provides Managed Services to a number of clients – revenue is recognised in line with the performance of contractual obligations.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
The results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
Finance costs
Finance costs are charged to the Profit and Loss Account over the term of the debt using the effective interest method so the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
In determining whether there are indicators of impairment of the company's receivable balances the factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the customer/group company.
The group exercises judgement to determine the useful lives and residual values of tangible fixed assets. Assets are then depreciated to their residual values over their useful economic lives. Management may from time to time revise the useful economic lives of certain assets based on past performance or a change in circumstances.
The directors have judged that some amounts due to employees in respect of holiday pay accruals and end of service benefits have uncertain timing as those amounts are only payable once employees in the group end employment as a result of local legislation. As the timing of this is unknown the directors believe it is more accurate to include in provisions at the full In discounted amount.
In the view of the directors, there are no key sources of estimation uncertainty which affect the company's financial statements.
The group incurred exceptional costs/gains related to:
Loss in relation to disposal of Lebanon subsidiary: £nil (2024: £24,481)
In the current and prior year all audit fees are settled by the parent company.
The average monthly number of persons (including directors) employed by the group and company during the year was:
The employee numbers included in office and management, include 191 (2024: 128) staff who provide revenue generating services to clients.
Their aggregate remuneration comprised:
Included in the group figures above, are the following amounts (forming part of cost of sales), relating to remuneration of staff who provide revenue generating services to clients:
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The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2024 - 2).
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:
Following the substantive enactment of the Finance Act 2021, effective 1 April 2023 the applicable corporation tax rate is now 25% (for companies with profits over £250,000) and continues to be 19% (for companies with profits of £50,000 or less). Companies with profits between £50,000 and £250,000 pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective Corporation Tax rate.
Details of the company's subsidiaries at 31 March 2025 are as follows:
Penta Facilities Management Services LLC is treated as subsidiary as Penta Consulting Limited have control over the company. Penta Consulting Limited controls the day to day operations and also dictates the strategic direction of the company and is entitled to 100% of the profits and net assets, in the event of a winding up.
The following subsidiary is exempt from the requirements of the Act relating to the audit of individual accounts by the virtue of s479A:
Penta Consulting Middle East Limited (Company number 11905794)
The company provided guarantees to the above subsidiary for all outstanding liabilities, the total amount guaranteed was £162,292 (2024: £169,292) and related entirely to inter-company debt within the group.
Penta Technology Limited (Company number 10258547)
The company provided guarantees to the above subsidiary for all outstanding liabilities, the total amount guaranteed was £1,249,112 (2024: £1,244,108) and related entirely to inter-company debt within the group.
Amounts owed by group undertakings are interest-free, repayable on demand and unsecured.
The bank overdraft, trade finance facility and invoice discounting facility are secured by way of a fixed and floating charge over the group's present and future assets, including a cross guarantee with the immediate parent company, Penta Consulting Group Limited.
Amounts owed to group undertakings are interest-free, repayable on demand and unsecured.
The bank overdraft, loan, trade finance facility and invoice discounting facility (included within Other loans) are secured by way of a fixed and floating charge over the group's present and future assets, including a cross guarantee with the immediate parent company, Penta Consulting Group Limited.
The Group and Company recognises a provision when it has a present legal or constructive obligation as a result of a past event and it is probable that a transfer of economic benefits will be required to settle the obligation. The provision for Holiday pay and End of Service Benefit have uncertain timing and are measured at the best estimate of the expenditure required to settle the obligation at the reporting date.
The amount of the provision is reviewed at each reporting date and adjusted to reflect the current best estimate.
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.
The pension cost payable by the group to the fund at the year end is £51,444 (2024: £54,563).
The share premium account includes the premium on issue of equity shares, net of any issue costs.
The capital redemption reserve contains the nominal value of own shares that have been acquired by the company and cancelled.
In line with Commercial Companies Law in Dubai, the local entities in the jurisdiction must maintain a minimum legal reserve equivalent to 150,000 AED. The other reserve represents the translation of this requited reserve at historical exchange rates at this point of inception.
The profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.
The company is currently involved in defending a legal claim brought against its subsidiary in Poland. The directors' believe the claim is without merit and is being vigorously defended by the company. The group has in place insurance policies and any settlement of this claim would not have a material adverse effect on the financial position of either the Group or the company.
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:
There are no post reporting events to report to the date of this report.
During the year the group entered into the following transactions with related parties:
The group has taken exemption under FRS 102 section 33 from disclosing transactions with wholly owned subsidiaries.
The following amounts were outstanding at the reporting end date:
The key management personnel of the Group comprise the members of the Board of Directors who have authority and responsibility for planning, directing, and controlling the activities of the Group.
The aggregate compensation of key management personnel is as follows: