ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

Registered number: 05541639

KLT GROUP OF COMPANIES LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

KLT GROUP OF COMPANIES LIMITED

COMPANY INFORMATION

Directors	Mr R Taylor
	Mr M Harmer
	Mr J Gilbert
	Mrs S Parrott
	Mrs J Taylor


Company secretary	Mrs J Taylor


Registered number	05541639


Registered office	6th Floor
	2 London Wall Place
	London
	EC2Y 5AU


Independent auditors	MHA
	Statutory Auditors
	6th Floor
	2 London Wall Place
	London
	EC2Y 5AU

KLT GROUP OF COMPANIES LIMITED

CONTENTS

	Page
Group strategic report	1 - 2
Directors' report	3 - 4
Independent auditors' report	5 - 8
Consolidated statement of comprehensive income	9
Consolidated balance sheet	10 - 11
Company balance sheet	12
Consolidated statement of changes in equity	13
Company statement of changes in equity	14
Consolidated statement of cash flows	15 - 16
Consolidated analysis of net debt	17
Notes to the financial statements	18 - 34

KLT GROUP OF COMPANIES LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2025

Introduction

The Directors present their strategic report for the Group, the strategy and business model for KLT Group of Companies Limited is as below.
The strategy of the business is to provide services to the Gas Distribution Networks and Independent Gas Transporters. These services include the replacement of gas mains and services, the installation of new gas mains and services, and individual connections to both domestic and non-domestic customers. We provide these services to our clients ensuring that our core values in safety, customer care, profitability and sustainability are delivered.
The principal activities of the Group's trading subsidiaries were as follows:
KLT Utilities Limited - replacement of gas pipes and the installation of new gas pipes and apparatus.
JRT Plant Limited - supply of plant and transport to the sector.

Business review

Revenue reported in 2025 of £34,953,756 fell by 10% compared to £38,613,869 reported in 2024. Despite the fall in revenue the business reported a positive operating profit of £2,576,448 and an increased EBITDA of £4,038,855 from £3,990,169 in 2024. This was achieved by reviewing cost base and operating cost efficiencies. In reaction to this challenge, we committed to capital investments in Plant and Transport by purchasing an additional vacuum excavator, and renewing some vehicles to support client contract requirements and our health and safety commitments. This led to a fall in our external hire costs.
Additional revenue streams have also been looked at for future growth.
Gross margin in the period increased by 1.6% from 21.5% in 2024 to 23.1 % in 2025. Net assets have increased by £1,718,928 in 2025.
The Directors are confident that the business remains in a steady position to maintain the improved profit margins thus providing a solid platform to build additional growth in the coming years.

Principal risks and uncertainties

The principal risks faced by the group would be as follows:
Health & Safety – Managing the safety of all our employees and sub-contractors remains our first priority and the business continues to focus on improving skills through training and experience, providing regular communications on incidents within the sector and providing assurance that our plant, transport, and equipment meet all industry requirements.
Carrying out works in the public highway continues to be more onerous as Local Authorities become more stringent in their approach to permit conditions and works durations, therefore increasing the risk of NRSWA fines and risk to the business.
The risk around the management of our plant & transport business including that of driver risk, plant operation and plant and transport maintenance are all recognised as continued risks to the Group.
The commercial expectations from clients to procure contracts on tighter margins continues to presents a risk to the Group.
The Group controls and manages its risks including those above using a comprehensive risk register and scheduled governance meetings both internally and externally.

Page 1

KLT GROUP OF COMPANIES LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

Financial key performance indicators

The Group's key performance indicators are its turnover, gross profit, EBITDA and net profit. These are as follows for the last two years:
2025 2024
Turnover £34,953,756 £38,613,869
Gross profit £8,067,422 £8,283,121
EBITDA £4,038,855 £3,990,169
Net profit £1,718,928 £1,943,287

This report was approved by the board and signed on its behalf.

Mr R Taylor

Director

Date: 26 August 2025

Page 2

KLT GROUP OF COMPANIES LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 MARCH 2025

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

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 Company and the Group 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 for the Group's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

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

Results and dividends

The profit for the year, after taxation, amounted to £1,718,928 (2024 - £1,943,287).

Dividends of £Nil (2024 - £Nil) were declared in the year.

Directors

The directors who served during the year were:

Mr R Taylor

Mr M Harmer

Mr J Gilbert

Mrs S Parrott

Mrs J Taylor

Page 3

KLT GROUP OF COMPANIES LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

Future developments

The trading prospects for the group are positive after being successful in the award of a number of contracts with both Cadent Gas Limited and Scotia Gas Network Limited. With the GIRs Accreditation we are also receiving small work orders and currently working on the HS2 Project.
The Directors have decided to focus more on controlling costs and improving gross margins than higher revenues due to additional competitors, nature of contract awards and availability of skilled resources.
The Directors continue to monitor the performance of the Group by using its key performance indicators in health and safety, customer care and profitability. We consider that these indicators show improved efficiency, cost control and profitability.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.
MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

Mr R Taylor

Director

Date: 26 August 2025

Page 4

KLT GROUP OF COMPANIES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KLT GROUP OF COMPANIES LIMITED

Opinion

We have audited the financial statements of KLT Group of Companies Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2025, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of 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 of the parent Company's affairs as at 31 March 2025 and of the Group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 or the 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.

Page 5

KLT GROUP OF COMPANIES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KLT GROUP OF COMPANIES LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.

Opinion on other matters prescribed by the Companies Act 2006

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

∙the information given in the Group 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 Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.

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

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

∙the parent Company financial statements are not in agreement with the accounting records and returns; or

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

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

Page 6

KLT GROUP OF COMPANIES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KLT GROUP OF COMPANIES LIMITED (CONTINUED)

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 3, 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 Group's and 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 Auditors' 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 Group financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• Obtaining an understanding of the legal and regulatory frameworks that the company operates in.
• Reviewing key correspondence with regulatory authorities.
• Enquiry of management to identify any instances of non-compliance with laws and regulations.
• Enquiry of management around actual and potential litigation and claims.
• Enquiry of management to identify any instances of known or suspected instances of fraud.
• Discussing and reviewing among the engagement team regarding how and where fraud might occur.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including
those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk
increases the more that compliance with a law or regulation is removed from the events and transactions
reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves
intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Page 7

KLT GROUP OF COMPANIES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KLT GROUP OF COMPANIES LIMITED (CONTINUED)

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 Auditors' 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.

Neil Stern FCA (Senior statutory auditor)

for and on behalf of

MHA

Statutory Auditors

London, United Kingdom

10 September 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales
(registered number OC455542).

Page 8

KLT GROUP OF COMPANIES LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2025

	2025	2024
Note	£	£


Turnover	4	34,953,756	38,613,869
Cost of sales		(26,886,334)	(30,330,748)
Gross profit		8,067,422	8,283,121
Administrative expenses		(5,490,974)	(5,630,867)
Operating profit	5	2,576,448	2,652,254
Interest receivable and similar income	9	100,924	82,236
Interest payable and similar expenses	10	(185,038)	(161,931)
Profit before taxation		2,492,334	2,572,559
Tax on profit	11	(773,406)	(629,272)
Profit for the financial year		1,718,928	1,943,287


Share option movement	24	-	(14,932)
Other comprehensive income for the year		-	(14,932)
Total comprehensive income for the year		1,718,928	1,928,355

Profit for the year attributable to:
Owners of the parent Company	1,718,928	1,943,287
	1,718,928	1,943,287

The notes on pages 18 to 34 form part of these financial statements.

Page 9

KLT GROUP OF COMPANIES LIMITED

REGISTERED NUMBER: 05541639

CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2025


	2025	2024
Note	£	£

Fixed assets
Tangible assets	13		5,320,936		5,106,279
			5,320,936		5,106,279
Current assets
Debtors: amounts falling due after more than one year	15	880,315		579,887
Debtors: amounts falling due within one year	15	8,800,938		6,912,842
Cash at bank and in hand	16	1,912,198		3,481,749
		11,593,451		10,974,478
Creditors: amounts falling due within one year	17	(7,246,501)		(8,147,625)
Net current assets			4,346,950		2,826,853
Total assets less current liabilities			9,667,886		7,933,132
Creditors: amounts falling due after more than one year	18		(1,998,258)		(2,141,994)
Provisions for liabilities
Deferred taxation	20	(489,724)		(389,272)
Other provisions	21	(612,610)		(553,500)
			(1,102,334)		(942,772)
Net assets			6,567,294		4,848,366

Capital and reserves
Called up share capital	22	10,000	10,000
Other reserves	23	10,921	10,921
Profit and loss account	23	6,546,373	4,827,445
Equity attributable to owners of the parent Company		6,567,294	4,848,366
		6,567,294	4,848,366

Page 10

KLT GROUP OF COMPANIES LIMITED

REGISTERED NUMBER: 05541639

CONSOLIDATED BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2025

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Mr R Taylor

Director

Date: 26 August 2025

The notes on pages 18 to 34 form part of these financial statements.

Page 11

KLT GROUP OF COMPANIES LIMITED

REGISTERED NUMBER: 05541639

COMPANY BALANCE SHEET

AS AT 31 MARCH 2025

		2025		2024
Note		£		£

Fixed assets
Investments	14		20,100		20,100
			20,100		20,100
Current assets
Debtors: amounts falling due within one year	15	1,230,274		1,110,265
Cash at bank and in hand	16	512		40,646
		1,230,786		1,150,911
Creditors: amounts falling due within one year	17	(28,943)		(30,663)
Net current assets			1,201,843		1,120,248


Net assets			1,221,943		1,140,348

Capital and reserves
Called up share capital	22	10,000	10,000
Other reserves	23	10,921	10,921
Profit and loss account	23	1,201,022	1,119,427
		1,221,943	1,140,348

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Mr R Taylor

Director

Date: 26 August 2025

The notes on pages 18 to 34 form part of these financial statements.

The profit of the parent company in the year was £81,595 (2024 - £78,929)

Page 12

KLT GROUP OF COMPANIES LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2025

	Called up share capital	Other reserves	Profit and loss account	Total equity
	£	£	£	£
At 1 April 2023	10,000	4,254	2,875,893	2,890,147
Comprehensive income for the year
Profit for the year	-	-	1,943,287	1,943,287
Grant of options	-	14,932	-	14,932
Transfer to/from profit and loss account	-	(8,265)	8,265	-

At 1 April 2024	10,000	10,921	4,827,445	4,848,366
Comprehensive income for the year
Profit for the year	-	-	1,718,928	1,718,928
At 31 March 2025	10,000	10,921	6,546,373	6,567,294

The notes on pages 18 to 34 form part of these financial statements.

Page 13

KLT GROUP OF COMPANIES LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2025

	Called up share capital	Other reserves	Profit and loss account	Total equity
	£	£	£	£
At 1 April 2023	10,000	4,254	1,032,233	1,046,487
Comprehensive income for the year
Profit for the year	-	-	78,929	78,929
Grant of options	-	14,932	-	14,932
Total comprehensive income for the year	-	14,932	78,929	93,861
Transfer to/from profit and loss account	-	(8,265)	8,265	-

At 1 April 2024	10,000	10,921	1,119,427	1,140,348
Comprehensive income for the year
Profit for the year	-	-	81,595	81,595
Total comprehensive income for the year	-	-	81,595	81,595
At 31 March 2025	10,000	10,921	1,201,022	1,221,943

The notes on pages 18 to 34 form part of these financial statements.

Page 14

KLT GROUP OF COMPANIES LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2025

			2025	2024
			£	£

Cash flows from operating activities
Profit for the financial year	1,718,928	1,943,287
Adjustments for:
Depreciation of tangible assets	1,462,396	1,337,915
Loss/(profit) on disposal of tangible assets	60,421	(85,087)
Interest paid	185,038	161,931
Interest received	(100,924)	(82,236)
Taxation charge	773,406	629,272
(Increase) in debtors	(2,188,524)	(785,832)
(Decrease)/increase in creditors	(496,873)	227,970
Increase in provisions	59,110	2,000
Corporation tax (paid)	(866,427)	(3,216)
Net cash generated from operating activities	606,551	3,346,004

Cash flows from investing activities
Purchase of tangible fixed assets	(475,735)	(494,869)
Sale of tangible fixed assets	116,685	292,442
Interest received	100,924	82,236
HP interest paid	(185,038)	(119,822)
Net cash from investing activities	(443,164)	(240,013)
Cash flows from financing activities
Repayment of loans	-	(312,500)
Repayment of finance leases	(1,468,269)	(1,352,784)
Interest paid	-	(42,109)
Share options	-	14,932
Net cash used in financing activities	(1,468,269)	(1,692,461)
Net (decrease)/increase in cash and cash equivalents	(1,304,882)	1,413,530
Cash and cash equivalents at beginning of year	1,743,812	330,282
Cash and cash equivalents at the end of year	438,930	1,743,812

Page 15

KLT GROUP OF COMPANIES LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

		2025	2024
		£	£

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	1,912,198	3,481,749
Bank overdrafts	(1,473,268)	(1,737,937)
	438,930	1,743,812

The notes on pages 18 to 34 form part of these financial statements.

Page 16

KLT GROUP OF COMPANIES LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 MARCH 2025


At 1 April 2024	Cash flows	New finance leases	At 31 March 2025
£	£	£	£

Cash at bank and in hand	3,481,749	(1,569,551)	-	1,912,198
Bank overdrafts	(1,737,937)	264,669	-	(1,473,268)
Finance leases	(3,172,079)	1,468,269	(1,378,424)	(3,082,234)
	(1,428,267)	163,387	(1,378,424)	(2,643,304)

The notes on pages 18 to 34 form part of these financial statements.

Page 17

KLT GROUP OF COMPANIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

1.	General information

The entity is a private company, limited by shares, incorporated in England and Wales. The registered office is 6th Floor, 2 London Wall Place, London, EC2Y 5AU. The activity of the company is that of a holding entity. The activities of its subsidiaries are the excavation of land and laying pipes and the supply of plant and machinery within the construction industry.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The financial statements have been prepared in pounds sterling, the functional currency, rounded to the nearest £1.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 18

KLT GROUP OF COMPANIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.4

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.5

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 19

KLT GROUP OF COMPANIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution pension plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 20

KLT GROUP OF COMPANIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.11

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Plant and machinery	-	20%	Straight line
Motor vehicles	-	25%	Reducing balance
Fixtures and fittings	-	25%	Reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 21

KLT GROUP OF COMPANIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.17

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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, with 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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Page 22

KLT GROUP OF COMPANIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.17

Financial instruments (continued)

Basic 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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

The directors consider that the critical accounting policies where judgements and estimations have been applied relate to the tangible asset lives, in particular the useful economic life and residual values of plant and machinery and motor vehicles, the recoverability of other debtors and the accuracy of provisions. The directors have concluded that the asset values and residual values are appropriate, recoverability of debtors is fairly stated and that provisions are accurate.

Sales	34,953,756	38,613,869
	34,953,756	38,613,869

All turnover arose within the United Kingdom.

Page 23

KLT GROUP OF COMPANIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Depreciation of tangible fixed assets	1,462,396	1,337,915
Other operating lease rentals	310,360	278,552
Loss/(profit) on disposal of fixed assets	60,421	(85,087)

	Fees payable to the Group's auditor and its associates for the audit of the Group's financial statements	37,500	35,000
	Fees payable to the Group's auditor and its associates in respect of all other services	90,236	121,687

7.	Employees
	Staff costs, including directors' remuneration, were as follows:

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£


Wages and salaries	3,744,296	3,325,610	-	14,932
Social security costs	448,246	378,224	-	-
Cost of defined contribution pension scheme	65,001	51,657	-	-
	4,257,543	3,755,491	-	14,932

The average monthly number of employees, including the directors, during the year was as follows:

	2025	2024
	No.	No.

Operative	29	33
Administrative	30	28

	59	61

Page 24

KLT GROUP OF COMPANIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

8.	Directors' remuneration

The highest paid director received remuneration of £399,500 (2024 - £399,500).

The directors are considered to be the only members of key management personnel for the group.
There are no retirement benefis accruing under defined contribution pension schemes for any directors.

9.	Interest receivable
		2025	2024
		£	£

	Other interest receivable	100,924	82,236
		100,924	82,236

10.	Interest payable and similar expenses
		2025	2024
		£	£

Bank interest payable	-	42,109
Finance leases and hire purchase contracts	185,038	119,822
	185,038	161,931

Page 25

KLT GROUP OF COMPANIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Corporation tax
Current tax on profits for the year	669,132	550,104
Adjustments in respect of previous periods	3,822	(53,846)
	672,954	496,258

Total current tax	672,954	496,258

Deferred tax
Origination and reversal of timing differences	100,452	133,014
Total deferred tax	100,452	133,014


	Taxation on profit on ordinary activities	773,406	629,272

Profit on ordinary activities before tax

2,492,334

2,572,559

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	623,084	643,140
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	63,883	25,107
Capital allowances for year in excess of depreciation	(86,585)	(118,143)
Adjustments to tax charge in respect of prior periods	3,822	(53,846)
Short-term timing difference leading to an increase in taxation	100,452	133,014
Changes in provisions leading to an increase (decrease) in the tax charge	68,750	-
Total tax charge for the year	773,406	629,272

Page 26

KLT GROUP OF COMPANIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

11.Taxation (continued)

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

12.	Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £81,595 (2024 - £78,929).

13.	Tangible fixed assets
	Group

	Plant and machinery	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£
Cost or valuation
At 1 April 2024	3,487,464	7,841,777	549,734	11,878,975
Additions	458,742	1,300,233	95,184	1,854,159
Disposals	(1,095,313)	(300,644)	-	(1,395,957)
At 31 March 2025	2,850,893	8,841,366	644,918	12,337,177
Depreciation
At 1 April 2024	2,390,115	3,974,965	407,616	6,772,696
Charge for the year	344,517	1,071,191	46,688	1,462,396
Disposals	(1,004,938)	(213,913)	-	(1,218,851)
At 31 March 2025	1,729,694	4,832,243	454,304	7,016,241
Net book value
At 31 March 2025	1,121,199	4,009,123	190,614	5,320,936
At 31 March 2024	1,097,349	3,866,812	142,118	5,106,279

The net book value of assets held under HP and finance leases at 31 March 2025 was £4,262,175 (2024 - £4,344,343).

Page 27

KLT GROUP OF COMPANIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

14.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 April 2024	20,100
	At 31 March 2025	20,100

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Class of shares	Holding

KLT Utilities Limited	Ordinary	100%
JRT Plant Limited	Ordinary	100%
KLT Reinstatement Limited	Ordinary	100%

Page 28

KLT GROUP OF COMPANIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

15.	Debtors
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Due after more than one year
Other debtors	880,315	579,887	-	-
	880,315	579,887	-	-

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£

Due within one year
Trade debtors	879,985	907,694	740,000	620,000
Amounts owed by group undertakings	-	-	490,000	490,000
Other debtors	6,242,981	4,551,010	274	265
Prepayments and accrued income	1,677,972	1,454,138	-	-
	8,800,938	6,912,842	1,230,274	1,110,265

16.	Cash and cash equivalents
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Cash at bank and in hand	1,912,198	3,481,749	512	40,646
Less: bank overdrafts	(1,473,268)	(1,737,937)	-	-
	438,930	1,743,812	512	40,646

Page 29

KLT GROUP OF COMPANIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

17.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Bank overdrafts	1,473,268	1,737,937	-	-
Trade creditors	1,315,662	1,570,732	1,645	1,593
Amounts owed to group undertakings	-	-	100	100
Corporation tax	356,631	550,104	27,198	28,970
Other taxation and social security	1,072,613	1,312,538	-	-
Obligations under finance lease and hire purchase contracts	1,083,976	1,030,085	-	-
Other creditors	652,871	299,635	-	-
Accruals and deferred income	1,291,480	1,646,594	-	-
	7,246,501	8,147,625	28,943	30,663

Bank loans and overdrafts of £1,473,268 (2024 - £1,737,937 ) are secured on the assets of the group.
Net obligations under finance leases and hire purchase contracts of £1,083,976 (2024 - £1,030,085) are secured on the assets to which they relate.
HSBC Bank PLC has a debenture created 16 October 2014 secured on all of the present and future assets of the group.

18.	Creditors: Amounts falling due after more than one year
		Group	Group
		2025	2024
		£	£

Net obligations under finance leases and hire purchase contracts	1,998,258	2,141,994
	1,998,258	2,141,994

Net obligations under finance leases and hire purchase contracts of £1,998,258 (2024 - £2,141,994) are secured on the assets to which they relate.

Page 30

KLT GROUP OF COMPANIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

19.	Hire purchase and finance leases
	Minimum lease payments under hire purchase fall due as follows:
		Group	Group
		2025	2024
		£	£

Within one year	1,267,487	1,140,060
Between 1-5 years	2,371,841	2,542,529
	3,639,328	3,682,589

At the balance sheet date the total hire purchase and finance lease creditor is £3,082,234 (2024 - £3,172,079). The difference of £557,094 (2024 - £510,510) between the creditor and the balance above is the future interest payments.

20.	Deferred taxation
	Group

		2025
		£

	At beginning of year	389,272
	Charged to profit or loss	100,452
	At end of year	489,724

Company



	At end of year	-

The provision for deferred taxation is made up as follows:
	Group	Group
	2025	2024
	£	£

	Accelerated capital allowances	489,724	389,272
		489,724	389,272

Page 31

KLT GROUP OF COMPANIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

21.	Provisions
	Group

		Provisions
		£

	At 1 April 2024	553,500
	Charged to profit or loss	189,610
	Utilised in year	(130,500)
	At 31 March 2025	612,610

The provision as at 31 March 2025 relates to the requirement to demobilise mains replacement works
which took place during the year, as well as contract damages, insurance damages and muck pile up
provisions. The timing of the payments are unknown, but is expected to be paid over the next five years.

22.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

10,000 (2024 - 10,000) Ordinary shares of £1.00 each	10,000	10,000

23.

Reserves

Other reserves

The balance on the other reserve relates to the fair value of options under the Enterprise Management Incentive Scheme detailed in note 24. The balance is non-distributable.

Profit and loss account

The Profit and Loss Account is represented by retained earnings. Changes in reserves are set out in the Statement of Changes in Equity.

Page 32

KLT GROUP OF COMPANIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

24.	Share-based payments
	The Group established a new Scheme during the prior year, for key employees of a subsidiary company. Options are exercisable at a pre-determined price and the options are settled in equity once exercised. The options lapse if they remain unexercised after the exercise period. Options are forfeited if the employee leaves the group before the options are exercised.
		Weighted average exercise price (pence) 2025	Number 2025	Weighted average exercise price (pence) 2024	Number 2024

Outstanding at the beginning of the year	984	1,110	3300	111
Granted during the year		-	984	1,110
Expired during the year		-		(111)
Outstanding at the end of the year		1,110		1,110

The options for the scheme are exercisable at the discretion of the Board. As such, the fair value of the options was recognised in full during the prior year.

25.	Pension commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £65,001 (2024 - £51,657).

26.	Commitments under operating leases
	At 31 March 2025 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
		Group	Group
		2025	2024
		£	£

Not later than 1 year	346,360	439,360
Later than 1 year and not later than 5 years	465,380	772,740
	811,740	1,212,100

Page 33

KLT GROUP OF COMPANIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

27.	Transactions with directors

During the year, the group made advances totalling £225,278 (2024 - £646,210) to Mr R Taylor, the director, and received credits of £225,278 (2024 - £708,916). Interest of £55,752 (2024 - £50,073) has been charged at commercial rates on overdrawn balances. At the balance sheet date, Mr R Taylor, the director, owed the group £2,285,850 (2024 - £2,230,098). The loan is unsecured and repayable on demand.
During the year the group made advances totalling £1,497,108 (2024 - £2,132,907) to Mrs J Taylor, a director, and received credits of £1,481,548 (2024 - £1,253,523). Interest of £24,201 (2024 - £24,399) has been charged at commercial rates on overdrawn balances. As at 31 March 2025, Mrs J Taylor owed the group £1,094,000 (2024 - £1,054,239). The loan is unsecured and repayable on demand.
During the year the group made advances totalling £195,000 (2024 - £255,000) to Mr J Gilbert, a director, and received credits of £15,000 (2024 - £Nil). Interest of £8,020 (2024 - £3,882) has been charged at commercial rates on overdrawn balances. As at 31 March 2025, Mr J Gilbert owed the group £446,902 (2024 - £258,882). The loan is unsecured and repayable on demand.
During the year the group made advances totalling £180,000 (2024 - £255,000) to Mr M Harmer, a director, and received credits of £Nil (2024 - £Nil). Interest of £8,020 (2024 - £3,882) has been charged at commercial rates on overdrawn balances. As at 31 March 2025, Mr M Harmer owed the group £446,902 (2024 - £258,882). The loan is unsecured and repayable on demand.
During the year, the group made advances of £1,085,781 (2024 - £Nil) to JT Chartering LLP, a limited liability partnership of which the directors, Mr R Taylor and Mrs J Taylor, are designated members. Interest of £4,163 (2024 - £Nil) has been charged at commercial rates on the balance. As at 31 March 2025, JT Chartering LLP owed the group £1,089,944 (2024- £Nil). The loan is unsecured and repayable on demand.

28.	Controlling party

The group was under the control of Mrs J Taylor, a director, as at 31 March 2025

Page 34