Company registration number 10134173 (England and Wales)
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2024
31 December 2024
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
Mr M L Poulton
Mr I McDowell
Mr M Dev
Company number
10134173
Registered office
1 Hardman Street
Spinningfields
Manchester
M3 3HF
Auditor
AMS Audit Limited
1 Hardman Street
Spinningfields
Manchester
M3 3HF
Business address
Unit 2
Bollin Court
Mill Lane
Lymm
WA13 9SX
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 33
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Fair Review of the Business

Business Overview

Key Integrated Services (Holdings) L imi t e d and its group companies (“KEYis”) specialise in the design, installation, commissioning and maintenance of building services, including mechanical, electrical and other related solutions. The group operates across commercial and industrial sectors not limited to Food & Beverage, Defence & Security and Public Sectors, providing compliance-focused and high-quality service to clients across the UK and in Europe.

Business Model and Strategy

The group’s business model continues to leverage technical expertise and strong client relationships to deliver tailored building services solutions. Our strategy remains centred on:

- Expanding market share in commercial and industrial sectors.

- Enhancing operational efficiency through investment in technology and project management systems.

- Building sustainable competitive advantage through environmental and general industry accreditations, including ISO standards.

- Fostering long-term partnerships with clients, supported by high-quality service delivery and workforce development through the UK apprenticeship scheme.

Business Environment and Outlook

The trading environment in 2024 remained challenging, with persistent inflationary pressures and supply chain constraints. However, demand across UK manufacturing and construction continued to grow, particularly as clients sought sustainable, energy-efficient solutions. KEYis capitalised on this demand by securing new contracts and strengthening its forward order book.

Looking ahead, the board expects stable growth in 2025, underpinned by:

- Strong order visibility in commercial and industrial markets.

- Continued diversification into Food & Beverage, Defence & Security and Public Sector projects, providing resilience against economic downturns.

- Ongoing investment in workforce skills and digital project delivery.

Financial Performance

- Turnover: Increased to £36.3m in FY24 (FY23: £29.1m), reflecting robust demand across sectors

- Gross Profit: Grew to £7.0m (FY23: £5.4m), driven by improved project delivery and effective cost management

- Operating Profit: Improved to £1.1m (FY23: £0.96m), demonstrating operational resilience despite higher overheads

- Profit Before Tax: Increased to £1.0m (FY23: £0.9m).

- Profit for the Year: Increased to £1.26m (FY23: £0.45m), reflecting stronger gross margins and disciplined financial management

- The balance sheet remains strong with net assets of £6.7m and cash reserves of £6.9m, providing a solid foundation for growth

Environmental and Social Responsibility

KEYis remains committed to sustainability and social impact. In 2024:

- Achieved further efficiencies through ISO and other certified environmental and industry management systems.

- Prioritised energy-efficient and waste-reducing solutions across projects.

- Expanded use of the UK apprenticeship scheme, supporting young people in developing long-term careers in engineering and construction.

- Maintained a strong commitment to employee well-being, health and safety, and community engagement initiatives.

KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties

1. Supply Chain and Inflation Risk: Rising input costs remain a challenge; mitigated through supplier diversification and cost-control measures.

2. Market Competition: Intense competition from larger firms; mitigated through niche expertise, personalised client service, and quality assurance.

3. Credit and Liquidity Risk: Debtor days closely monitored; group maintains healthy cash reserves and strict credit control.

4. Economic Downturn Risk: Exposure to general economic uncertainty and global conflicts; offset by diversification into resilient sectors such as healthcare and public infrastructure.

Key Performance Indicators

The board monitors financial and operational KPIs monthly, including:

- Gross Profit Margin: 19.2% (FY23: 18.4%), reflecting disciplined cost management.

- Net Profit Margin (before tax): 2.8% (FY23: 3.1%), impacted by increased investment in staff and infrastructure.

- Debtor Days: Remained within target range, supporting strong cash conversion and liquidity.

- Cash Flow: Net cash inflow from operating activities rose significantly to £5.2m (FY23: £1.1m), strengthening financial resilience.

On behalf of the board

Mr M L Poulton
Director
22 August 2025
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the group continued to be that of maintaining and installing building services installations.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £836,875. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr M L Poulton
Mr I McDowell
Mr M Dev
Financial instruments

The company's activities expose it to a number of financial risks as follows :

Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The group uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Auditor

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

KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

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

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr M L Poulton
Director
22 August 2025
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
- 5 -
Opinion

We have audited the financial statements of Key Integrated Services (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 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 significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2024 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- T he information given in the strategic report and the directors' r eport 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.

KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
- 6 -
Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Based on our understanding of the company and industry, we identified that the principal risks of non -compliance with laws and regulations related to pensions legislation, UK tax legislation and UK employment legislation, and we considered the extent to which non- compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or manipulate expenditure and management bias in accounting estimates. Audit procedures performed by the audit engagement team included:

• Discussions with management, including consideration of known or suspected instances of non- compliance w ith laws and regulation and fraud;

• Review of the financial statement disclosures to underlying supporting documentation;

• Challenging assumptions and judgements made by management in their significant accounting estimates;

• Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or posted by senior management.

There are inherent limitations in the audit procedures described above and the further removed non- compliance with laws and regulations is from the events and transaction reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
- 7 -

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.

Andrew Davis ACCA CTA MAAT (Senior Statutory Auditor)
For and on behalf of AMS Audit Limited, Statutory Auditor
Chartered Accountants
1 Hardman Street
Spinningfields
Manchester
M3 3HF
22 August 2025
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
36,324,910
29,101,569
Cost of sales
(29,355,821)
(23,740,251)
Gross profit
6,969,089
5,361,318
Administrative expenses
(5,832,770)
(4,718,896)
Other operating (expenses)/income
(31,208)
314,775
Operating profit
4
1,105,111
957,197
Interest receivable and similar income
8
13,015
-
Interest payable and similar expenses
9
(72,493)
(50,261)
Profit before taxation
1,045,633
906,936
Tax on profit
10
217,976
(457,357)
Profit for the financial year
26
1,263,609
449,579
Profit for the financial year is attributable to:
- Owners of the parent company
839,611
264,118
- Non-controlling interests
423,998
185,461
1,263,609
449,579
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
£
£
Profit for the year
1,263,609
449,579
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
-
-
Total comprehensive income for the year
1,263,609
449,579
Total comprehensive income for the year is attributable to:
- Owners of the parent company
839,611
264,118
- Non-controlling interests
423,998
185,461
1,263,609
449,579
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
-
-
Tangible assets
12
692,178
26,399
Investment property
13
335,734
-
1,027,912
26,399
Current assets
Debtors
17
10,203,939
10,022,392
Cash at bank and in hand
6,873,404
3,007,360
17,077,343
13,029,752
Creditors: amounts falling due within one year
18
(10,679,522)
(6,583,634)
Net current assets
6,397,821
6,446,118
Total assets less current liabilities
7,425,733
6,472,517
Creditors: amounts falling due after more than one year
19
(716,832)
(209,822)
Provisions for liabilities
Deferred tax liability
22
25,612
6,140
(25,612)
(6,140)
Net assets
6,683,289
6,256,555
Capital and reserves
Called up share capital
25
100
100
Profit and loss reserves
26
5,665,993
5,126,382
Equity attributable to owners of the parent company
5,666,093
5,126,482
Non-controlling interests
1,017,196
1,130,073
Total equity
6,683,289
6,256,555

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 22 August 2025 and are signed on its behalf by:
Mr M L Poulton
Director
Company registration number 10134173 (England and Wales)
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
14
402
400
402
400
Current assets
Debtors
17
3,997,425
4,015,586
Cash at bank and in hand
1,073,338
42,138
5,070,763
4,057,724
Creditors: amounts falling due within one year
18
(2,366,037)
(1,512,912)
Net current assets
2,704,726
2,544,812
Net assets
2,705,128
2,545,212
Capital and reserves
Called up share capital
25
100
100
Profit and loss reserves
26
2,705,028
2,545,112
Total equity
2,705,128
2,545,212

As permitted by s408 Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s profit for the year was £459,916 (2023 - £163,750 profit).

The financial statements were approved by the board of directors and authorised for issue on 22 August 2025 and are signed on its behalf by:
Mr M L Poulton
Director
Company registration number 10134173 (England and Wales)
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 January 2023
100
5,562,264
5,562,364
1,284,354
6,846,718
Year ended 31 December 2023:
Profit and total comprehensive income
-
264,118
264,118
185,461
449,579
Dividends
11
-
(700,000)
(700,000)
(339,742)
(1,039,742)
Balance at 31 December 2023
100
5,126,382
5,126,482
1,130,073
6,256,555
Year ended 31 December 2024:
Profit and total comprehensive income
-
839,611
839,611
423,998
1,263,609
Dividends
11
-
(300,000)
(300,000)
(536,875)
(836,875)
Balance at 31 December 2024
100
5,665,993
5,666,093
1,017,196
6,683,289
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
100
3,081,362
3,081,462
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
0
163,750
163,750
Dividends
11
-
0
(700,000)
(700,000)
Balance at 31 December 2023
100
2,545,112
2,545,212
Year ended 31 December 2024:
Profit and total comprehensive income
-
0
459,916
459,916
Dividends
11
-
0
(300,000)
(300,000)
Balance at 31 December 2024
100
2,705,028
2,705,128
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
5,071,025
444,285
Interest paid
(72,493)
(50,261)
Income taxes refunded
203,460
736,455
Net cash inflow from operating activities
5,201,992
1,130,479
Investing activities
Purchase of tangible fixed assets
(512,972)
-
Purchase of investment property
(335,734)
-
Repayment of loans
-
564,092
Interest received
13,015
-
Net cash (used in)/generated from investing activities
(835,691)
564,092
Financing activities
Proceeds from new bank loans
510,000
-
Repayment of bank loans
(138,700)
(120,000)
Payment of finance leases obligations
(34,682)
(8,821)
Dividends paid to equity shareholders
(300,000)
(700,000)
Dividends paid to non-controlling interests
(536,875)
(339,742)
Net cash used in financing activities
(500,257)
(1,168,563)
Net increase in cash and cash equivalents
3,866,044
526,008
Cash and cash equivalents at beginning of year
3,007,360
2,481,352
Cash and cash equivalents at end of year
6,873,404
3,007,360
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
1
Accounting policies
Company information

Key Integrated Services (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1 Hardman Street, Spinningfields, Manchester, M3 3HF. The principal place of business is Unit 2, Bollin Court, Mill Lane, Lymm, WA13 9SX.

The group consists of Key Integrated Services (Holdings) Limited and all of its subsidiaries.

1.1
Accounting convention

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 a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;true

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues true: 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’true: 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’true: Compensation for key management personnel.

1.2
Business combinations

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

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

KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Key Integrated Services (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2024. 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 g roup.

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.

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.

1.4
Going concern

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.

1.5
Turnover

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.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional 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.

1.6
Tangible fixed assets

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

KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -

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

Freehold land and buildings
2% straight line
Fixtures and fittings
25% reducing balance
Computers
25% straight line
Motor vehicles
25% reducing balance

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.

1.7
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value a t the reporting end date. Changes in fair value are recognised in profit or loss.

1.8
Fixed asset investments

Equity in vest ments 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.

I n 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 g roup’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 c ompany 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.

KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.9
Impairment of fixed assets

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. 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.

1.10
Construction contracts

Where the outcome of a long term contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a long term contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.11
Cash and cash equivalents

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

KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.12
Financial instruments

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

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 m ethod 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

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.

Impairment of financial assets

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.

Derecognition of financial assets

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.

Classification of financial liabilities

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.

KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
Basic financial 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 paymen ts 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.

Other financial liabilities

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 th r ough 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

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.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current 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.

KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 21 -
Deferred tax

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.

1.15
Employee benefits

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.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 lease d asset are consumed.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.19

Subsidiary undertakings exempt from audit

Under Section 479a of the Companies Act 2006 available to subsidiary undertakings, the company provides a guarantee in respect of the below subsidiary undertakings claiming exemption from audit.

KeyIS Propco 1 Ltd (CRN: 14921410)

KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
2
Judgements and key sources of estimation uncertainty

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.

During the current and prior year the group and company made no critical judgements that have had a significant effect on the amounts recognised in the financial statements.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Maintaining and installing business services installations
36,240,793
29,101,569
Management and consultancy services
3,201
-
Rental income
80,917
-
36,324,910
29,101,569
Analysis per statutory database
36,324,911
29,101,569
Statutory database analysis does not agree to the trial balance by:
1
-
2024
2023
£
£
Other revenue
Interest income
13,015
-
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
9,448
2,145
Depreciation of tangible fixed assets held under finance leases
36,655
10,535
Operating lease charges
227,534
240,347
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
45,000
30,000
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
4
4
3
2
Engineers
43
35
-
0
-
0
Administration
46
40
-
0
-
0
Total
93
79
3
2

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
5,457,914
4,024,173
-
0
-
0
Social security costs
109,763
110,540
-
-
Pension costs
288,214
215,335
-
0
-
0
5,855,891
4,350,048
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
131,718
38,459
Company pension contributions to defined contribution schemes
25,646
16,811
157,364
55,270
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
13,015
-
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
55,368
36,831
Interest on finance leases and hire purchase contracts
14,607
12,724
Other interest
2,518
706
Total finance costs
72,493
50,261
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
297,555
223,957
Adjustments in respect of prior periods
(535,003)
227,618
Total current tax
(237,448)
451,575
Deferred tax
Origination and reversal of timing differences
19,472
5,782
Total tax (credit)/charge
(217,976)
457,357

The actual (credit)/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:

2024
2023
£
£
Profit before taxation
1,045,633
906,936
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
261,408
226,734
Tax effect of expenses that are not deductible in determining taxable profit
24,013
8,229
Unutilised tax losses carried forward
36,520
-
Effect of change in corporation tax rate
(2,010)
(4,781)
Permanent capital allowances in excess of depreciation
(2,903)
(6,225)
Under/(over) provided in prior years
(535,004)
227,618
Deferred tax adjustments in respect of prior years
-
5,782
Taxation (credit)/charge
(217,976)
457,357
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
300,000
700,000
12
Tangible fixed assets
Group
Freehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
-
5,463
654
59,661
65,778
Additions
511,132
1,840
-
198,910
711,882
At 31 December 2024
511,132
7,303
654
258,571
777,660
Depreciation and impairment
At 1 January 2024
-
5,308
654
33,417
39,379
Depreciation charged in the year
9,371
77
-
36,655
46,103
At 31 December 2024
9,371
5,385
654
70,072
85,482
Carrying amount
At 31 December 2024
501,761
1,918
-
188,499
692,178
At 31 December 2023
-
155
-
26,244
26,399
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
188,498
26,243
-
0
-
0
13
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 January 2024 and 31 December 2024
-
-
Additions through external acquisition
335,734
-
At 31 December 2024
335,734
-
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
13
Investment property
(Continued)
- 26 -

Investment property comprises freehold land and buildings. The purchased property comprises of both owner-occupied elements (freehold land and buildings) and parts held to earn rentals (investment property). The property has therefore been split between property, plant and equipment and investment property in accordance with the requirements of FRS 102.

No revaluation has been undertaken during the year. The directors consider the carrying value of the investment property at cost to be a reasonable approximation of its fair value at the reporting date.

14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
-
402
400
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024
400
Additions
2
At 31 December 2024
402
Carrying amount
At 31 December 2024
402
At 31 December 2023
400
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
15
Subsidiaries
(Continued)
- 27 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Key Integrated Services Limited
UK
Maintaining building services installations
Ordinary
50.00
-
Key Integrated Services (Electrical) Limited
UK
Maintaining building services installations
Ordinary
66.67
-
Key Integrated Services (North West) Ltd
UK
Maintaining building services installations
Ordinary
66.67
-
Key Integrated Services (Maintenance) Limited
UK
Maintaining building services installations
Ordinary
66.67
-
KeyIS Propco 1 Ltd
UK
Maintaining building services installations
Ordinary
0
50.00
Key Integrated Services (Group Services) Ltd
UK
Maintaining building services installations
Ordinary
100.00
-

Registered office addresses for each subsidiary is the same as that of the parent company:

1 Hardman Street,

Spinningfields,

Manchester,

M3 3HF.

The investments in subsidiaries are all stated at cost.

16
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
7,684,582
7,303,754
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
7,586,809
6,222,415
n/a
n/a
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,306,138
3,362,174
-
0
-
0
Gross amounts owed by contract customers
2,082,248
2,672,198
-
0
-
0
Corporation tax recoverable
327,001
-
-
0
-
0
Amounts owed by group undertakings
-
-
289,582
365,699
Other debtors
670,601
291,693
-
0
-
0
Prepayments and accrued income
110,108
46,440
-
0
-
0
6,496,096
6,372,505
289,582
365,699
Amounts falling due after more than one year:
Amount owed by related parties
3,707,843
3,649,887
3,707,843
3,649,887
Total debtors
10,203,939
10,022,392
3,997,425
4,015,586
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
20
120,000
120,000
-
0
-
0
Obligations under finance leases
21
34,866
6,348
-
0
-
0
Trade creditors
6,373,259
3,664,463
-
0
-
0
Amounts owed to group undertakings
-
-
2,325,893
1,489,014
Corporation tax payable
430,603
137,590
-
0
-
0
Other taxation and social security
473,592
433,451
-
0
-
Deferred income
23
2,905,350
-
-
0
-
0
Other creditors
273,585
70,270
40,144
23,898
Accruals and deferred income
68,267
2,151,512
-
0
-
0
10,679,522
6,583,634
2,366,037
1,512,912
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
561,300
190,000
-
0
-
0
Obligations under finance leases
21
155,532
19,822
-
0
-
0
716,832
209,822
-
0
-
0
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
681,300
310,000
-
0
-
0
Payable within one year
120,000
120,000
-
0
-
0
Payable after one year
561,300
190,000
-
0
-
0

Bank loans and overdraft facilities are secured by a f irst fixed and floating charge over company assets and undertakings.

One of the directors has provided a personal guarantee limited to £60,000 in respect of bank loans.

The bank loan is capital repayment over 60 months and due to be repaid in June 2026 with an interest rate of 3.99% over Bank of England base rate per annum.

The mortgage is capital and interest repayments over 300 months and due to be repaid in January 2049 with an interest rate of 4.25% over Bank of England base rate per annum.

21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
34,866
6,348
-
0
-
0
In two to five years
155,532
19,822
-
0
-
0
190,398
26,170
-
0
-
0
22
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
25,612
6,140
The company has no deferred tax assets or liabilities.
KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
22
Deferred taxation
(Continued)
- 30 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
6,140
-
0
Charge to profit or loss
19,472
-
Liability at 31 December 2024
25,612
-
0
23
Deferred income
Group
Company
2024
2023
2024
2023
£
£
£
£
Other deferred income
2,905,350
-
-
0
-
0
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
119,153
102,764

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.

25
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
26
Reserves
Profit and loss reserves

Profit and loss reserves represent accumulated comprehensive income for the year and prior years less dividends paid.

KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
27
Operating lease commitments
Lessee

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:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
27,051
56,647
-
-
Between two and five years
26,894
65,688
-
-
53,945
122,335
-
-
28
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
401,487
222,640

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Other related parties
3,707,843
3,649,887
Company
Entities over which the company has control, joint control or significant influence
230,021
365,699
Other related parties
3,707,843
3,649,887
Other information

Amounts owed by other related parties are in respect of companies who have common directorship with the company and group.

The amounts owed are unsecured and interest free.

The group has taken advantage of the exemptions under FRS 102 for related party transactions from disclosing transactions with other wholly owned members of the group included within the consolidated financial statements.

KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
29
Directors' transactions

Dividends totalling £560,000 (2023 - £525,000) were paid in the year in respect of shares held by the company's directors.

During the year, Mr I McDowell withdrew a total of £400,000 from the company. Of this amount, dividends of £260,000 were declared and paid. The remaining balance of £140,000 is reflected as an overdrawn director’s loan account at the year-end.

The director’s loan account balance of £140,000 (2024: £nil) is unsecured, interest-free, and repayable on demand.

No interest has been charged on the director’s loan account during the year.

At the beginning of the year, a balance of £23,998 was owed to Mr M Poulton. During the year, the director’s loan account decreased by £83,656 through net withdrawals or repayments. In addition, dividends of £100,000 were declared and paid to the director.

At the year-end, the company owed the director a balance of £40,243 (2024: £23,998). This amount is unsecured, interest-free, and repayable on demand.

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Mark Poulton
-
(23,998)
83,655
(100,000)
(40,343)
Ian McDowell
-
-
400,000
(260,000)
140,000
(23,998)
483,655
(360,000)
99,657
30
Controlling party

By virtue of beneficial ownership of the group's entire issued share capital, Mr Mark Poulton is the ultimate controlling party.

KEY INTEGRATED SERVICES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
31
Cash generated from group operations
2024
2023
£
£
Profit after taxation
1,263,609
449,579
Adjustments for:
Taxation (credited)/charged
(217,976)
457,357
Finance costs
72,493
50,261
Investment income
(13,015)
-
Depreciation and impairment of tangible fixed assets
46,103
12,680
Movements in working capital:
Increase in debtors
(222,102)
(2,012,177)
Increase in creditors
1,236,563
1,486,585
Increase in deferred income
2,905,350
-
Cash generated from operations
5,071,025
444,285
32
Analysis of changes in net funds - group
1 January 2024
Cash flows
New finance leases
31 December 2024
£
£
£
£
Cash at bank and in hand
3,007,360
3,866,044
-
6,873,404
Borrowings excluding overdrafts
(310,000)
(371,300)
-
(681,300)
Obligations under finance leases
(26,170)
34,682
(198,910)
(190,398)
2,671,190
3,529,426
(198,910)
6,001,706
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