The directors present the strategic report and financial statements for East West Group Ltd for the year ended 31st March 2025.
East West Group Ltd, is made up of two main trading subsidiaries of East West Connect Ltd and East West Compass Ltd.
East West Group Limited
We are pleased to report another year of sustainable profit for the group with a good year maintaining organic growth and profits in line with previous years. Turnover for the group has increased to £55.3m (2024: £55.1m) against a budget of £54.8m, which has been achieved at a gross profit margin of 14.54% (2024: 13.50%), and net profit before tax of £2.75m (2024: £2.86m).
East West Connect Limited
Founded over 37 years ago by John O’Hanlon, East West Connect has grown consistently and remains at the heart of the Group’s operations. The business continues to be majority-owned by the O’Hanlon family, with Kathleen O’Hanlon serving as Chairperson since 2014. The family remains actively involved in the strategic direction of the Group, both at operational and board levels, ensuring long-term stability and continuity in leadership.
In 2024, the Group welcomed Angus Duguid as a Non-Executive Director and Deputy Chair. Angus brings substantial expertise in commercial strategy, corporate governance, and business structuring, providing valuable support to both the family and the wider management team as the Group continues to scale.
Day-to-day operations are led by Ross Carroll and a team of directors under the leadership of Kathleen O’Hanlon. In alignment with the Group’s long-term incentive strategy, key members of the senior management team have been offered opportunities to become A and B shareholders. These initiatives are designed to support talent retention and strengthen the leadership base for future growth.
Despite ongoing macroeconomic challenges, including inflation and supply chain instability, East West Connect delivered resilient performance for the year ending March 2025. Turnover of 50.3m has been achieved at a gross profit margin of 14.32%, and net profit before tax was £2.96m. These results were achieved despite one-off impacts such as the collapse of a supply chain partner and programme delays on major projects. The company maintains a conservative approach to working capital and ended the year with strong liquidity with no outstanding short/long term loans.
The company has a healthy order book exceeding £150m for the next 5 years, with major secured projects extending into 2027/28, including decarbonisation, infrastructure replacement, and complex M&E works in occupied environments. Long standing client relationships continue to be a core strength, including ongoing projects with Takenaka, Walter Lilly, CBRE, and Peabody. Maintenance turnover is projected to grow in 2025/26, supported by frameworks with Peabody, Riverside, and Quintain.
Investment has continued across systems and people. The implementation of the 4PS ERP platform now enables end-to-end financial and project control, with full integration of procurement, costing, and reporting. A central procurement team has been established, alongside further development of HR, Compliance and ESG governance frameworks.
East West Compass Limited
Originally established in 2018 as Chas West Limited, a joint venture created to service Peabody Housing Trust’s reactive maintenance contracts, the company was fully acquired by East West Group and rebranded as East West Compass Limited in 2023.
Now entering the second 5-year term of its partnership with Peabody, the business operates under the leadership of Mr. Robert Illsley and the stewardship of the East West Group Board. Over the past 12 months, East West Compass has undergone significant transition, including the migration of contracts from the former PPP framework to Deed of Variation (DOV), as well as expansion into new geographic regions aligned with Peabody’s broader portfolio.
This period of transformation has brought about extensive one-off costs due to restructuring, operational realignment, and contract variation. While the company has reported a loss for the financial year, this is seen as a temporary position resulting from strategic investment in growth and change management. Turnover has increased, and the business exits the year with a strong pipeline and renewed focus.
Looking ahead, East West Compass enters the new financial year with a target turnover of £6–7 million and is well-positioned for continued expansion in the reactive maintenance sector. It remains one of Peabody’s top-performing suppliers and is now beginning to explore new opportunities outside the current framework, enhancing its standing as a purpose-built delivery partner.
The group continues to operate debt-free, using retained earnings to fund expansion and strategic investments, including the redevelopment of the group's 7,500 sq. ft. head office in Perivale. A revolving credit facility remains in place but unused. Dividend policy remains cautious, retaining at least 40% of profits to support growth and maintain financial resilience.
East West Group remains committed to net zero by 2050 and achieved a 2.96% reduction in carbon intensity during the reporting period. Initiatives include:
• Fleet transition to Euro Cat 6 and hybrid vehicles
• Office conversion to electric via air source heat pumps
• Waste and energy reduction through procurement reform and logistics consolidation
• Active supplier engagement to align carbon targets (e.g., Daikin, Brymec, Smith Brothers)
The group has partnered with Greenly to support carbon reporting and aims to achieve SBTi (Science Based Targets initiative) certification in 2025.
We closely monitor and manage cash flow and have not needed to resort to our bank funding facility within the year, which however remains in place on an in case of need basis, but we have continued to grow a strong bank balance to fund the growing projects requirements, and this coupled with a growth of our assets leads to ever increasing security for the larger projects.
The company's policy is to pay suppliers to the agreed terms upon which business is conducted and continue to build an extremely strong and robust supply chain. The directors regularly review the financial requirements of the company, and the risks associated therewith. The company's operations are primarily financed from retained earnings and we have again increased our assets through investment within the business and property, and a board policy of profit retention, however a bank loan relating to trading premises and overdraft facility is available but presently unused.
Market uncertainty, inflation, and supply chain fragility remain key risks. However, strong liquidity, a robust pipeline, and a diversified client base provide confidence in future performance. The business enters FY 2025/26 with 70–80% of turnover secured via signed contracts. The group continues to invest in compliance, staff development, and technology to future-proof the organisation against evolving legislative, environmental, and commercial risks.
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 10.
Interim dividends were paid during the year amounting to £1,200,000. The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Rickard Luckin Limited were appointed as auditor to the group and in accordance with Section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company'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 principal activities of the group.
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of East West Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 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).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The 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; through verbal and written communications with those charged with governance and other management and via inspection of the company’s regulatory and legal correspondence.
We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.
We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the group.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the group is subject to laws and regulations that directly affect the financial statements, including: the company’s constitution; relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly the group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: employment legislation; health and safety legislation; trade legislation; data protection legislation; anti-bribery and anti-corruption legislation.
ISAs (UK) limit the required procedures to identify non-compliance with these laws and regulations to the procedures, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance with laws and regulations that could have a material impact on the financial statements.
In relation to fraud, we performed the following specific procedures in addition to those already noted:
Challenging assumptions made by management in its significant accounting estimates, in particular: accounting for contracting income and accrued income;
Identifying and testing journal entries during the year and post balance sheet, in particular any entries posted with unusual nominal ledger account combinations, journal entries crediting cash or any revenue account, and journal entries posted by senior management;
Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud;
Ensuring that testing undertaken on both the performance statement, and the Balance Sheet includes a number of items selected on a random basis;
Reviewing board minutes; and
Discussions with management.
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 ISAs (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of 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 company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an 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 company and the 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.
As permitted by S408 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 £1,173,357 (2024: £1,016,936 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
East West Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1st Floor, County House, 100 New London Road, Chelmsford, Essex, CM2 0RG.
The group consists of East West Group Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company East West Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 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.
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.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
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.
Property rented to a group entity is accounted for as tangible fixed assets.
The depreciation policy for fixtures, fittings & equipment and motor vehicles has changed this year to 25% straight line from 25% reducing balance in the prior year, as this better suits the class of assets held in tangible fixed assets. This adjustment has not materially impacted the financial statements.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible 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.
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 and company's balance sheets when the group/company 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.
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.
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the earnings basis model to determine market value. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
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.
Dividends
Dividends are recognised when the shareholders right to receive payment is established.
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.
Revenue from amounts recoverable on contracts is valued by reference to the stage of contract completion, which is judged by reviewing the costs to date incurred as a percentage of the final expected contract costs. Using this percentage of completion, an adjustment is made for to recognise the appropriate revenue.
An expense in relation to share based payments is recognised in profit or loss at the point when the shares issued to individuals meet their vesting conditions. The expense is recognised in the company where the individuals who have been granted the share options and employed. Shares are valued at their deemed market value on the day of them being granted.
The total turnover of the group for the year has been derived from its principal activity undertaken in the United Kingdom.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
Included in wages and salaries is £Nil (2024: £81,509) relating to equity settled share based payments. Further details of this can be found in note 20.
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024: 3).
The number of directors who exercised share options during the year was 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:
Investment properties rented to another group entity have been accounted for using the cost model. The carrying value of these investment properties included within company and group's tangible fixed assets is £1,581,078 (2024 - £863,355).
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.
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Ordinary 'A' shares carry equal rights to fixed income and one voting right per share.
Ordinary 'B' shares do not carry any voting rights.
During a previous period, 5,000 £1 Ordinary ‘A’ Shares were allotted for total consideration of £61,200, being the nominal value of £5,000 and the share premium of £56,200. The share premium of £56,200 remains unpaid and has been included within other debtors.
The following summarises the number and weighted average exercise price for share options:
During the prior year, Enterprise Management Incentive equity-settled share-options were granted to five of the directors of East West Connect Limited, one of whom is also a director of East West Group Limited, and a further one individual who is a director of East West Group Limited only, on Ordinary B £0.01 shares.
The fair value of options granted during the prior year were calculated using the earnings basis model on the basis of being the most appropriate method for the company. Non-vesting conditions and market conditions were taken into account when estimating the fair value of the option at grant date. The market value determined thereon was approved by HMRC.
The vesting conditions of the share options were 6 months post grant and the relevant employees remaining in employment.
These equity-settled share options also vested and became exercisable during the prior year. The expense in profit or loss was recognised in the financial statements of East West Connect Limited, being the company where the individuals who were granted and exercised share options, are employed.
During the year, the group recognised total share-based payment expenses of £Nil (2024: £81,509) which related to equity-settled share-based payment transactions.
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:
At the end of the prior period, there were no non-cancellable operating lease commitments to disclose.
Group
At the year end the group owed the directors a total of £381,117 (2024: £110,078) and amounts unpaid by directors for share capital totalled £56,213 (2024: £56,213).
At the year end the group owed £3,048 (2024:£4,296) to a company with common directorships. During the year, the group made purchases from this related party totalling £13,020 (2024: £13,890).
Intra-group transactions and balances are eliminated fully on consolidation.
Company
The company has taken advantage of the exemption available in FRS102 whereby it has not disclosed transactions with any wholly owned subsidiary undertaking.
Dividends totalling £1,200,000 (2024 - £1,000,000) were paid in the year in respect of shares held by the group's directors.
Details of the company's subsidiaries at 31 March 2025 are as follows:
Results of both subsidiaries are included within the consolidated financial statements.
All profit and loss reserves are fully distributable.