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Registered number: 07370176 TEEM GROUP LIMITED CONSOLIDATED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
TEEM GROUP LIMITED COMPANY INFORMATION
Directors | T Martin
| B Martin
| A Bisseker
| B Cockrell
Registered number | 07370176
Registered office | 32 Harbour Exchange Square
| Harbour Island
| London
| E14 9GE
Independent auditors | Haslers
| Chartered Accountants & Statutory Auditor
| Old Station Road
| Loughton
| Essex
| IG10 4PL
TEEM GROUP LIMITED CONTENTS
| Page
Group Strategic Report | 1 - 4
Directors' Report | 5 - 7
Directors' Responsibilities Statement | 8
Independent Auditors' Report | 9 - 13
Consolidated Statement of Comprehensive Income | 14
Consolidated Balance Sheet | 15 - 16
Company Balance Sheet | 17
Consolidated Statement of Changes in Equity | 18 - 19
Company Statement of Changes in Equity | 20
Consolidated Statement of Cash Flows | 21 - 22
Consolidated Analysis of Net Debt | 23
Notes to the Financial Statements | 24 - 44
TEEM GROUP LIMITED GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
Introduction
The principal activity of the Group continued to be that of the design, build and installation of mechanical, electrical and public health services for industrial and commercial buildings.
Business review
The directors consider the results for the year and the financial position of the Group at the end of the year satisfactory and demonstrate resilience. The results were achieved despite the impact and uncertainty and the continuing inflationary pressures caused by the war in Ukraine and consequential high interest rates that affected decision making in the office fit out market in 2024, which however saw somewhat of a Covid bounce back. The Group continues to explore diversification of its client base, geographical spread, and work sectors and protects its liquidity and profitability by careful contract selection, credit insurance and by vetting suppliers and subcontractors' financial risk. The financial position of the Group is presented in the Balance Sheet. The total shareholders’ funds on 31 December 2024 was £13,516,150 (2023: £12,704,927). The company continues to maintain a strong Balance Sheet for investment in the future. Cash balances at the end of the year totalled £11,705,566 (2023 £6,426,449).
Principal risks and uncertainties
The key business risks and uncertainties affecting the company include; • Increased competition in securing contracts • Contractual risk including mispricing of contracts, managing changes to contracts, contract disputes and poor project delivery • Credit risk associated with upstream insolvency and Main Contractor failure as a result of spiralling commodity costs. • Increased potential for failures in our supply chain • Lack of availability of sufficiently skilled people in the marketplace • Risk to health and safety of our people • Inflation risk association with fixed price contracts • Inflationary material costs and delays in delivery caused by production problems, increased delivery • costs and transport delays • The continuing effect of the Ukrainian war affecting decision making and costs in 2024 and beyond. • Tightening of the bond market due to high profile failures and bondholders' losses. The Directors are confident that these risks and uncertainties are and will continue to be appropriately managed and mitigated by the company’s strategies, procedures, and commercial diligence, with constant monitoring and stringent risk management. Page 1
TEEM GROUP LIMITED GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Financial key performance indicators
The directors consider the key financial performance indicators to be gross profit margin percentage and profit before tax. Gross profit margin percentage for the year under review was 20.28% (2023: 16.8%) and Profit before tax was £3,155,066 (2023: £1,359,473).
Other key performance indicators
The directors consider the Group's health and safety record and days lost through injury to be non-financial key performance indicators. We have a dedicated Health & Safety Director who reports regularly on Health & Safety performance at Board Meetings. The company aims to achieve a year-on-year improvement with regards to safety. The Group, through its commitment to high standards of health & safety has this year won the RoSPA ‘Order of Distinction’ for 20 consecutive Gold Awards as well as maintaining the accreditation ISO45001:2018 for health and safety. Our delivery performance continues to lead the market and has identified our company as such. Our ability to complete fast track installations, meeting client budgets has been recognised within our sector continuously over the past 29 years. Our ability to offer design solutions that provide commercial benefit, is key to our success. Page 2
TEEM GROUP LIMITED GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Directors' statement of compliance with duty to promote the success of the Group
The Board of Directors considers that it has complied in all material respects with their s172(1) duties. • Engagement with suppliers, customers and others The Board of Directors acknowledges that the long-term success of the Group is dependent on the way it works with several important stakeholders. Key stakeholders are considered in the Board’s decision making, which ensures that the directors' duty is discharged under section 172 of the Companies Act 2006. • Customers We always aim to build long standing relationships with our customers through our commitment to our core ethic of ‘Complete Project Delivery’. This has enabled us to achieve continued high-quality service. Repeat business forms over 80% which is indicative of our reputation. Our specialist in-house design ability allows us to offer a Design and Build solution for our customers. We maintain our exceptional reputation and credibility with our customers by exceeding the requirements for the key industry standard certifications, including ISO9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 27001:2022 and ISO19650:2018 standard certifications. We also hold Cyber Essentials + certification in order to protect client data. • Supplier and Subcontractors We consider our supplier relationships critical to our overall success, allowing us to deliver an exceptional level of service to our customers in an efficient manner. We continue to build strong relationships with both existing and new suppliers allowing us to react quickly to the constantly changing market. We work extremely closely with our subcontractors and suppliers to maintain performance and product quality during the course of contracts, including frequent progress and design meetings involving the client and professional team. We require compliance with BS/CE standards from our suppliers and we review additional trade specific accreditations to ensure quality of work of our subcontractors and any other requirements of our customers. Suppliers and subcontractors are also required to adhere to ethical standards, in line with those expected from us by our customers. Our suppliers and subcontractors are therefore contractually obliged to follow Anti Corruption, Modern Slavery, Data-Protection, Criminal Finance and Confidentiality standards as part of our standard terms and conditions. We ensure the financial stability of our suppliers and subcontractors by undertaking credit checks on new companies and regular reviews prior to the award of large orders. We also enforce set requirements on insurance and product warranties. • Employees The Group recognises the importance of retention and development of talented employees to the ongoing success of the company. We regularly update employees on internal procedures, new regulations, products and health and safety matters via toolbox talks, newsletters, notices, formal courses and workshops. We encourage and support training of apprenticeships and participation in degree programmes across all departments within the Group, supporting external courses with additional in-house training programmes. We also value input from our employees on potential operational enhancements. This resulted in several Page 3
TEEM GROUP LIMITED GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 improvements to ways of working being implemented. A feedback process was carried out during the previous financial year. • Environment The risk of environmental damage is controlled through the implementation and enforcement of rigorous environmental policies and procedures in line with our environmental management system ISO14001. The company has developed a Sustainable Procurement Strategy with our Supply Chain, the main objectives of which are to: 1. Use fewer resources and consume less energy through the use of innovative solutions 2. Procure materials with a preference for recognised responsible sourcing schemes 3. Specify and procure on a basis that strikes a balance between socio-economic and environmental factors and generate benefits to the economy and society 4. Use resource efficient products and give due consideration to end of life uses, future deconstruction and recovery of resources 5. Procure locally where possible and agree fair contract prices and terms are applied. • Shareholders We are a privately owned business with a small group of shareholders, who are involved in the day to day management of the Group's operations. The Directors’ have acted to maximise profit and free cash flow, as shown by the results in the current financial year in order to create value for shareholders. • Principal decisions taken in the year The Directors welcome the new reporting requirements as a means of explaining how dialogue with stakeholders has helped form and shape its decisions to promote the success of the Group. This report was approved by the board on 12 September 2025 and signed on its behalf.
B Cockrell Director
Page 4
TEEM GROUP LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The directors present their report and the financial statements for the year ended 31 December 2024.
Results and dividends
The profit for the year, after taxation, amounted to £2,682,522 (2023 - £1,253,917). The directors declared a dividend of £1,871,299 (2023: £Nil).
Directors
The directors who served during the year were:
T Martin
B Martin
A Bisseker
B Cockrell
Future developments
This report has been prepared at a time when we are experiencing negative effect on our supply chain, high interest rates, material price inflation and client decision making caused by the ongoing Ukraine war, the unsettled situation in the Middle East and the economic uncertainty caused by the new US tariff regime. Against a backdrop of weak economic recovery and a Government whose decisions will affect planning consent, taxation, housing and infrastructure projects, the response of clients continues to be uncertain. However, because of our marketing efforts and some recovery in the South East fit out market during 2024 we are encouraged to plan for growth. We have modelled and forecast projections in various scenarios and are confident that we will remain profitable in 2025. The Group's financial position remains strong at £13,516,150. The directors are confident, after reviewing detailed cash flow information, that the company has adequate resources to pay its debts as they fall due for the foreseeable future. We remain confident we will come through the current challenges to continue to trade profitably.
Engagement with suppliers, customers and others
Please refer to the Strategic Report. Page 5
TEEM GROUP LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Greenhouse gas emissions, energy consumption and energy efficiency action
The Group's greenhouse gas emissions and energy consumption are as follows:
|  |  |  | 2024 | 2023
Energy consumed from activities for which the Group is responsible involving the combustion of gas, or the consumption of fuel for the purposes of transport, and the annual quantity of energy consumed resulting from the purchase of electricity by the Group for its own use, including for the purposes of transport, in kWh | 262,669 | 285,671
Methodology ISO14064 Part 1 2018 and CEMARS 2024 2023 Emissions from other activities tCO2e (Scope 3): Transport - other 8.58 17.54 Emissions from other activities tCO2e (Scope 3): Electricity Nil Nil Total gross Scope 3 emissions tCO2e 23.33 17.54 Total gross Scope 1, Scope 2 & Scope 3 emissions tCO2e 78.93 77.99 Total gross GHG emissions per unit turnover/revenue (tCO2e/£M) 1.13 1.31 Third Party verification - Verified to ISO14064 Part 1 2018 and Carbon Reduce Measures taken to improve energy efficiency The Group is committed to managing and reducing our emissions from our operational activities, this shall be via ‘SMART’ targets (specific, measurable, achievable, realistic, time-constrained). We are committed to managing and reducing our emissions annually and to be Carbon Neutral by 2030. We shall achieve this by reducing our energy consumption within our Offices through employee education and reviewing A/C systems usage during overnight and weekend periods. Purchase A++ rating energy efficient equipment or as highest rating as possible. Intensity Measurement The Directors consider the intensity measurement based on the unit turnover/revenue (tCO2e/£M) as an appropriate ratio to use in relation to energy consumption.
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. Page 6
TEEM GROUP LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Post balance sheet events
The directors recognise the economic and trading impact of the continuing Ukraine War and the conflict in the Middle East, the economic uncertainty caused by global US tariff negotiations, the effect of continuing high inflation and interest rates, the UK economic slowdown as well as potential Government decisions likely to affect planning consent, taxation and infrastructure projects with a knock-on effect on material prices, the availability of labour.
Auditors
The auditors, Haslers, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board on 12 September 2025 and signed on its behalf.
B Cockrell Director
Page 7
TEEM GROUP LIMITED DIRECTORS' RESPONSIBILITIES STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2024 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 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 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. Page 8
TEEM GROUP LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TEEM GROUP LIMITED
Opinion
We have audited the financial statements of Teem Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, 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 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 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 9
TEEM GROUP LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TEEM GROUP 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.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 8, 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. Page 10
TEEM GROUP LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TEEM GROUP LIMITED (CONTINUED)
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: We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that: • had a direct effect on the determination of material amounts and disclosures in the financial statements. These included the UK Companies Act and tax legislation etc; and • do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. These include operational and employment laws and regulations including health and safety regulations, environmental regulations, GDPR and Subcontractor insurance requirements. We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making enquiries with management and those responsible for legal and compliance frameworks. We corroborated our enquiries through review of correspondence with regulatory bodies and gaining an understanding of the entity level controls of the company in respect of these areas and the controls in place to reduce opportunity for fraudulent transactions. We discussed among the audit engagement team including relevant internal tax specialists, regarding the opportunities and incentives, including management override of controls, that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. We also communicated the applicable laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. As a result of performing the above, we identified the greatest potential for fraud in the following areas, and our specific procedures performed to address it are described below: The principal risks related to management override in relation to posting of non-standard manual journals in respect of revenue and misstatement of expenses in relation to work in progress. Procedures performed to address these were as follows: • Walkthrough testing was carried out to identify and assess the design effectiveness of controls, management have in place to prevent and detect fraud, including known of suspected instances or non-compliance with laws and regulations and fraud; • Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; • Using analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; Page 11
TEEM GROUP LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TEEM GROUP LIMITED (CONTINUED) • Assessing the appropriateness of accounting estimates and challenging any significant assumptions or judgements made by management; • Incorporating testing of manual journal entries that were posted throughout the year. In particular, we focused on material journal entries, journal entries posted with unusual account combinations, and journal entries crediting revenue or cash. These were scrutinised for evidence of unusual entries; • Reviewing revenue recognition policies and general policies in relation to work in progress. We assessed the accuracy and completeness of the management’s estimates through developing a detailed understanding of the contract stage and reviewing post year end activity; • Evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business; and • Reviewing compliance with the following Audit Summary Certificates; ISO9001:2015, ISO14001:2015, ISO27007:2017, ISO045001:2018. 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 12
TEEM GROUP LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TEEM GROUP 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. Charalambos Patsalides FCCA ACA (Senior Statutory Auditor) for and on behalf of Haslers Chartered Accountants Statutory Auditor Old Station Road Loughton Essex IG10 4PL 12 September 2025 Page 13
TEEM GROUP LIMITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024
| 2024 | 2023
Note | £ | £
Turnover | 4 | 69,427,167 | 60,067,371
Cost of sales |  | (55,348,227) | (49,977,009)
Gross profit |  | 14,078,940 | 10,090,362
Administrative expenses |  | (11,130,241) | (8,787,439)
Operating profit | 5 | 2,948,699 | 1,302,923
Interest receivable and similar income | 9 | 208,242 | 74,085
Interest payable and similar expenses | 10 | (1,875) | (17,535)
Profit before taxation |  | 3,155,066 | 1,359,473
Tax on profit | 11 | (472,544) | (105,556)
Profit for the financial year |  | 2,682,522 | 1,253,917
Profit for the year attributable to: |  |  |
Owners of the parent Company |  | 2,682,522 | 1,253,917
|  | 2,682,522 | 1,253,917
There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.
There was no other comprehensive income for 2024 (2023:£NIL).
The notes on pages 24 to 44 form part of these financial statements.
Page 14
TEEM GROUP LIMITED REGISTERED NUMBER: 07370176 CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 13 |  | 5,679,660 |  | 6,272,321
Tangible assets | 14 |  | 753,642 |  | 785,674
|  |  | 6,433,302 |  | 7,057,995
Current assets |  |  |  |  |
Stocks | 16 | 216,646 |  | 108,545 |
Debtors: amounts falling due after more than one year | 17 | 1,607,519 |  | 529,297 |
Debtors: amounts falling due within one year | 17 | 10,930,125 |  | 15,883,881 |
Cash at bank and in hand | 18 | 11,705,566 |  | 6,426,449 |
|  | 24,459,856 |  | 22,948,172 |
Creditors: amounts falling due within one year | 19 | (16,599,929) |  | (16,702,749) |
Net current assets |  |  | 7,859,927 |  | 6,245,423
Total assets less current liabilities |  |  | 14,293,229 |  | 13,303,418
Creditors: amounts falling due after more than one year | 20 |  | (669,496) |  | (542,618)
Provisions for liabilities |  |  |  |  |
Deferred taxation | 23 | (107,583) |  | (55,873) |
|  |  | (107,583) |  | (55,873)
Net assets |  |  | 13,516,150 |  | 12,704,927
Page 15
TEEM GROUP LIMITED REGISTERED NUMBER: 07370176 CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Capital and reserves |  |  |  |  |
Called up share capital | 24 |  | 194,717 |  | 194,717
Share premium account | 25 |  | 11,707,533 |  | 11,707,533
Capital redemption reserve | 25 |  | 514,892 |  | 514,892
Other reserves | 25 |  | (14,024,426) |  | (14,024,426)
Profit and loss account | 25 |  | 15,123,434 |  | 14,312,211
Equity attributable to owners of the parent Company |  |  | 13,516,150 |  | 12,704,927
|  |  | 13,516,150 |  | 12,704,927
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 12 September 2025.
B Cockrell
Director
The notes on pages 24 to 44 form part of these financial statements. Page 16
TEEM GROUP LIMITED REGISTERED NUMBER: 07370176 COMPANY BALANCE SHEET AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Investments | 15 |  | 25,501,908 |  | 25,501,908
|  |  | 25,501,908 |  | 25,501,908
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 17 | 101,959 |  | 101,959 |
Cash at bank and in hand | 18 | 3,322,070 |  | 3,394,490 |
|  | 3,424,029 |  | 3,496,449 |
Creditors: amounts falling due within one year | 19 | (15,218,975) |  | (14,702,096) |
Net current liabilities |  |  | (11,794,946) |  | (11,205,647)
Total assets less current liabilities |  |  | 13,706,962 |  | 14,296,261
Creditors: amounts falling due after more than one year | 20 |  | (330,617) |  | (343,617)
Net assets |  |  | 13,376,345 |  | 13,952,644
Capital and reserves |  |  |  |  |
Called up share capital | 24 |  | 194,717 |  | 194,717
Share premium account | 25 |  | 11,707,533 |  | 11,707,533
Capital redemption reserve | 25 |  | 514,892 |  | 514,892
Profit and loss account carried forward |  |  | 959,203 |  | 1,535,502
|  |  | 13,376,345 |  | 13,952,644
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 12 September 2025.
B Cockrell
Director
The notes on pages 24 to 44 form part of these financial statements. Page 17

|  | TEEM GROUP LIMITED |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
|  | Called up share capital | Share premium account | Capital redemption reserve | Other reserves | Profit and loss account | Total equity
|  | £ | £ | £ | £ | £ | £
| At 1 January 2024 | 194,717 | 11,707,533 | 514,892 | (14,024,426) | 14,312,211 | 12,704,927
| Comprehensive income for the year |  |  |  |  |  |
| Profit for the year | - | - | - | - | 2,682,522 | 2,682,522
| Dividend Paid | - | - | - | - | (1,871,299) | (1,871,299)
| Total comprehensive income for the year | - | - | - | - | 811,223 | 811,223
| At 31 December 2024 | 194,717 | 11,707,533 | 514,892 | (14,024,426) | 15,123,434 | 13,516,150
| The notes on pages 24 to 44 form part of these financial statements.
Page 18

|  | TEEM GROUP LIMITED |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2023
|  | Called up share capital | Share premium account | Capital redemption reserve | Other reserves | Profit and loss account | Total equity
|  | £ | £ | £ | £ | £ | £
| At 1 January 2023 | 194,717 | 11,707,533 | 514,892 | (14,024,426) | 13,058,294 | 11,451,010
| Comprehensive income for the year |  |  |  |  |  |
| Profit for the year | - | - | - | - | 1,253,917 | 1,253,917
| Total comprehensive income for the year | - | - | - | - | 1,253,917 | 1,253,917
| At 31 December 2023 | 194,717 | 11,707,533 | 514,892 | (14,024,426) | 14,312,211 | 12,704,927
| The notes on pages 24 to 44 form part of these financial statements.
Page 19

TEEM GROUP LIMITED COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
| Called up share capital | Share premium account | Capital redemption reserve | Profit and loss account | Total equity
| £ | £ | £ | £ | £
At 1 January 2024 | 194,717 | 11,707,533 | 514,892 | 1,535,502 | 13,952,644
Comprehensive income for the year |  |  |  |  |
Profit for the year | - | - | - | 1,295,000 | 1,295,000
Dividend Paid | - | - | - | (1,871,299) | (1,871,299)
Total comprehensive income for the year | - | - | - | (576,299) | (576,299)
At 31 December 2024 | 194,717 | 11,707,533 | 514,892 | 959,203 | 13,376,345
| The notes on pages 24 to 44 form part of these financial statements.
COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2023
| Called up share capital | Share premium account | Capital redemption reserve | Profit and loss account | Total equity
| £ | £ | £ | £ | £
At 1 January 2023 | 194,717 | 11,707,533 | 514,892 | 1,535,502 | 13,952,644
Total comprehensive income for the year | - | - | - | - | -
At 31 December 2023 | 194,717 | 11,707,533 | 514,892 | 1,535,502 | 13,952,644
| The notes on pages 24 to 44 form part of these financial statements.
Page 20
TEEM GROUP LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
|  |  | 2024 | 2023
|  |  | £ | £
Cash flows from operating activities |  |
Profit for the financial year | 2,682,522 | 1,253,917
Adjustments for: |  |
Amortisation of intangible assets | 592,661 | 592,661
Depreciation of tangible assets | 184,515 | 176,122
Loss on disposal of tangible assets | (177) | -
Interest paid | 1,875 | 17,535
Interest received | (208,242) | (74,085)
Taxation charge | 472,544 | 105,556
(Increase)/decrease in stocks | (108,102) | 64,625
Decrease/(increase) in debtors | 3,859,607 | (7,058,728)
(Decrease)/increase in creditors | (593,975) | 7,028,378
Corporation tax received | 250,831 | 371,835
Net cash generated from operating activities | 7,134,059 | 2,477,816
Page 21
TEEM GROUP LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
|  | 2024 | 2023
|  | £ | £
Cash flows from investing activities |  |
Purchase of tangible fixed assets | (152,746) | (59,980)
Sale of tangible fixed assets | 441 | -
Interest received | 208,242 | 74,085
Net cash from investing activities | 55,937 | 14,105
Cash flows from financing activities |  |
Repayment of loans | - | (666,667)
Repayment of other loans | (13,000) | (13,000)
Repayment of finance leases | (24,705) | (18,217)
Interest paid | (1,875) | (17,535)
Dividends Paid | (1,871,299) | -
Net cash used in financing activities | (1,910,879) | (715,419)
Net increase in cash and cash equivalents | 5,279,117 | 1,776,502
Cash and cash equivalents at beginning of year | 6,426,449 | 4,649,947
Cash and cash equivalents at the end of year | 11,705,566 | 6,426,449
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 11,705,566 | 6,426,449
| 11,705,566 | 6,426,449
The notes on pages 24 to 44 form part of these financial statements.
Page 22
TEEM GROUP LIMITED CONSOLIDATED ANALYSIS OF NET DEBT FOR THE YEAR ENDED 31 DECEMBER 2024
|  | At 1 January 2024 | Cash flows | At 31 December 2024
|  | £ | £ | £
Cash at bank and in hand | 6,426,449 | 5,279,117 | 11,705,566
Debt due after 1 year | (343,617) | 13,000 | (330,617)
Debt due within 1 year | (31,213) | - | (31,213)
Finance leases | (82,794) | 24,705 | (58,089)
| 5,968,825 | 5,316,822 | 11,285,647
The notes on pages 24 to 44 form part of these financial statements.
Page 23
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1. | General information
Teem Group Limited is a private company, limited by shares, incorporated in England and Wales, United Kingdom, with a registration number 07370176. The address of the registered office is 32 Harbour Exchange Square, Harbour Island, London, E14 9GE. The nature of the company's operations and principal activity is that of a holding company and the nature of the group's operations and principal activity is the design, build and installation of mechanical, electrical and public health services for industrial and commercial buildings. 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 judgement 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 are presented in pounds sterling which is the functional currency of the Group, rounded to the nearest pound. 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. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 October 2013. Page 24
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.3 | Revenue recognition
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Long Term Construction Contracts The company uses the percentage of completion method to recognise revenue for long term contracts. This method requires the directors to estimate the level of services performed at each reporting date as a proportion of the total services to be performed to complete the contract.
| 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 | Interest income
Interest income is recognised in profit or loss using the effective interest method.
| 2.6 | 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.
| 2.7 | Borrowing costs
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
| 2.8 | Pensions
Defined contribution pension plan The Group operates a defined contribution 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. Page 25
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.9 | 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.
| 2.10 | Intangible assets
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.
| 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 26
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 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, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Improvements to short-term leasehold property | - | Over the life of the lease
|  |  |  | Plant and machinery | - | 20% straight line
|  |  |  | Motor vehicles | - | 20% straight line
|  |  |  | Fixtures and fittings | - | 20% straight line
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 | Work in progress
Work in progress is based on the cost amount relevant to the state of completion of each contract after making due allowance for anticipated losses.
| 2.14 | 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.
| 2.15 | 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.
| 2.16 | 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 27
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.17 | 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.
| 2.18 | Financial instruments
Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument. Basic financial assets Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs 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 receivables due with the operating cycle fall into this category of financial instruments. Impairment of financial assets Financial assets are assessed for indicators of impairment at each reporting date. 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. Financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments 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 payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. 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. Page 28
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.18 | Financial instruments (continued)
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables 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. Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
In applying the Group's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ. 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, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods. The directors do not believe that there have been judgements (apart from those involving estimates) made in the process of applying the above accounting policies that have had a significant effect on amounts recognised in the financial statements. The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. The group uses the percentage of completion method to recognise revenue for long term contracts. This method requires the directors to estimate the level of services performed at each reporting date as a proportion of the total services to be performed to complete the contract. Variations to estimates could result in the over or under recognition of revenue. Page 29
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Sales | 64,889,498 | 55,640,749
| Management services income | 4,537,669 | 4,426,622
|  | 69,427,167 | 60,067,371
| All turnover arose within the United Kingdom.
Page 30
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
5. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Depreciation of tangible fixed assets | 187,586 | 176,123
| Amortisation of intangible assets, including goodwill | 592,661 | 592,661
| Other operating lease rentals | 444,457 | 444,586
| Fees payable to the Group's auditor and its associates for the audit of the group's annual accounts | 34,850 | 33,510
| Defined contribution pension cost | 129,983 | 117,863
6. | Auditors' remuneration
| During the year, the Group obtained the following services from the Company's auditors and their associates:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Fees payable to the Company's auditors and their associates in respect of: |  |
| Fees payable to the Company's auditor and its associates for the audit of the companies annual accounts | 4,475 | 4,300
| The auditing of accounts of associates of the companies pursuant to legislation | 29,410 | 29,210
| Taxation compliance services | 4,065 | 4,100
| All non-audit services not included above | 33,688 | 51,817
Page 31
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
7. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Wages and salaries | 14,291,886 | 11,829,161
| Social security costs | 1,793,781 | 1,352,813
| Cost of defined contribution scheme | 129,983 | 117,863
|  | 16,215,650 | 13,299,837
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | Group | Group | Company | Company
|  |  | 2024 | 2023 | 2024 | 2023
|  |  | No. | No. | No. | No.
|  | Directors | 7 | 8 | 4 | 4
|  | Professional and other project based staff | 85 | 77 | - | -
|  | Administrative staff | 25 | 23 | - | -
|  |  | 117 | 108 | 4 | 4
8. | Directors' remuneration
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Directors' emoluments | 4,511,856 | 3,044,366
| Group contributions to defined contribution pension schemes | 5,283 | 5,173
|  | 4,517,139 | 3,049,539
| The highest paid director received remuneration of £2,270,239 (2023 - £1,799,371).
| The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,320 (2023 - £1,320).
Page 32
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
9. | Interest receivable
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Other interest receivable | 208,242 | 74,085
|  | 208,242 | 74,085
10. | Interest payable and similar expenses
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Other interest payable | 1,875 | 17,535
|  | 1,875 | 17,535
11. | Taxation
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 777,066 | 356,232
| Adjustments in respect of previous periods | (356,232) | (265,986)
| Total current tax | 420,834 | 90,246
| Deferred tax |  |
| Origination and reversal of timing differences | 51,710 | 15,310
| Total deferred tax | 51,710 | 15,310
| Taxation on profit on ordinary activities | 472,544 | 105,556
Page 33
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 11.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 23.5%). The differences are explained below:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 3,155,066 | 1,359,473
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%) | 788,767 | 319,476
| Effects of: |  |
| Non-tax deductible amortisation of goodwill and impairment | 148,165 | 139,275
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 85,841 | 55,146
| Capital allowances for year in excess of depreciation | (6,830) | (7,247)
| Utilisation of tax losses | (238,834) | (36,204)
| Adjustments to tax charge in respect of prior periods | (356,232) | -
| Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge | - | (379,299)
| Other differences leading to an increase (decrease) in the tax charge | (43) | (901)
| Deferred tax movement | 51,710 | 15,310
| Total tax charge for the year | 472,544 | 105,556
| 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 £1,295,000 (2023 - £NIL). Page 34
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
13. | Intangible assets
| Group and Company
|  | Goodwill
|  | £
| Cost |
| At 1 January 2024 | 11,853,212
| At 31 December 2024 | 11,853,212
| Amortisation |
| At 1 January 2024 | 5,580,891
| Charge for the year on owned assets | 592,661
| At 31 December 2024 | 6,173,552
| Net book value |
| At 31 December 2024 | 5,679,660
| At 31 December 2023 | 6,272,321
Page 35
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
14. | Tangible fixed assets
| Group
|  | Short-term leasehold property | Plant and machinery | Motor vehicles | Fixtures and fittings | Total
|  | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |
| At 1 January 2024 | 1,043,850 | 599,159 | 84,797 | 314,381 | 2,042,187
| Additions | - | 152,746 | - | 4,100 | 156,846
| Disposals | - | (110,023) | - | - | (110,023)
| At 31 December 2024 | 1,043,850 | 641,882 | 84,797 | 318,481 | 2,089,010
| Depreciation |  |  |  |  |
| At 1 January 2024 | 484,651 | 421,468 | 43,306 | 307,088 | 1,256,513
| Charge for the year on owned assets | 94,976 | 46,919 | 16,959 | 8,530 | 167,384
| Charge for the year on financed assets | - | 20,202 | - | - | 20,202
| Disposals | - | (108,731) | - | - | (108,731)
| At 31 December 2024 | 579,627 | 379,858 | 60,265 | 315,618 | 1,335,368
| Net book value |  |  |  |  |
| At 31 December 2024 | 464,223 | 262,024 | 24,532 | 2,863 | 753,642
| At 31 December 2023 | 559,199 | 177,691 | 41,491 | 7,293 | 785,674
| The net book value of land and buildings may be further analysed as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Short leasehold | 464,223 | 559,199
|  | 464,223 | 559,199
Page 36
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
15. | Fixed asset investments
| Company
|  | Investments in subsidiary companies
|  | £
| Cost or valuation |
| At 1 January 2024 | 25,501,908
| At 31 December 2024 | 25,501,908
| Subsidiary undertakings
| The following were subsidiary undertakings of the Company:
| Name | Principal activity | Class of shares | Holding
| Bancroft Limited | Mechanical & Electrical Engineers | Preference | 100%
| Bancroft Group Limited | Dormant | Ordinary | 100%
| Bancroft Blue Limited | Mechanical & Electrical Engineers | Ordinary | 100%
| Gradeley Limited | Dormant | Ordinary | 100%
| The aggregate of the share capital and reserves as at 31 December 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:
| Name | Aggregate of share capital and reserves | Profit/ (Loss)
|  | £ | £
| Bancroft Limited | 33,830,970 | 3,370,445
| Bancroft Group Limited | 337,079 | 1,300,000
| Bancroft Blue Limited | 94,765 | (95,261)
| Gradeley Limited | (29,966) | -
Page 37
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
16. | Stocks
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Work in progress | 216,646 | 108,545
|  | 216,646 | 108,545
| The difference between purchase price or production cost of stocks and their replacement cost is not material.
17. | Debtors
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Due after more than one year |  |  |  |
| Amounts recoverable on L/T contracts | 1,607,519 | 529,297 | - | -
|  | 1,607,519 | 529,297 | - | -
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Due within one year |  |  |  |
| Other debtors | 1,743,734 | 1,617,382 | 101,959 | 101,959
| Prepayments and accrued income | 764,801 | 834,439 | - | -
| Amounts recoverable on long-term contracts | 8,421,590 | 13,432,060 | - | -
|  | 10,930,125 | 15,883,881 | 101,959 | 101,959
18. | Cash and cash equivalents
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Cash at bank and in hand | 11,705,566 | 6,426,449 | 3,322,070 | 3,394,490
|  | 11,705,566 | 6,426,449 | 3,322,070 | 3,394,490
Page 38
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
19. | Creditors: Amounts falling due within one year
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Other loans | 13,000 | 13,000 | 13,000 | 13,000
| Trade creditors | 6,356,023 | 7,719,746 | - | -
| Amounts owed to group undertakings | - | - | 15,187,762 | 14,670,883
| Corporation tax | 777,067 | 121,336 | - | -
| Other taxation and social security | 1,016,107 | 696,156 | - | -
| Obligations under finance lease and hire purchase contracts | 25,382 | 24,705 | - | -
| Other creditors | 64,233 | 79,312 | 18,213 | 18,213
| Accruals and deferred income | 8,348,117 | 8,048,494 | - | -
|  | 16,599,929 | 16,702,749 | 15,218,975 | 14,702,096
20. | Creditors: Amounts falling due after more than one year
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Other loans | 330,617 | 343,617 | 330,617 | 343,617
| Net obligations under finance leases and hire purchase contracts | 32,707 | 58,089 | - | -
| Trade creditors | 306,172 | 140,912 | - | -
|  | 669,496 | 542,618 | 330,617 | 343,617
Page 39
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
21. | Loans
| Analysis of the maturity of loans is given below:
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Amounts falling due within one year |  |  |  |
| Other loans | 13,000 | 13,000 | 13,000 | 13,000
|  | 13,000 | 13,000 | 13,000 | 13,000
| Amounts falling due 1-2 years |  |  |  |
| Other loans | 12,000 | 12,000 | 12,000 | 12,000
|  | 12,000 | 12,000 | 12,000 | 12,000
| Amounts falling due 2-5 years |  |  |  |
| Other loans | 36,000 | 36,000 | 36,000 | 36,000
|  | 36,000 | 36,000 | 36,000 | 36,000
| Amounts falling due after more than 5 years |  |  |  |
| Other loans | 282,617 | 295,617 | 282,617 | 295,617
|  | 282,617 | 295,617 | 282,617 | 295,617
|  | 343,617 | 356,617 | 343,617 | 356,617
22. | Financial instruments
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Financial assets |  |  |  |
| Financial assets measured at fair value through profit or loss | 11,705,566 | 6,426,449 | 3,322,070 | 3,394,490
| Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.
Page 40
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
23. | Deferred taxation
| Group
|  | 2024
|  | £
| At beginning of year | (55,873)
| Charged to profit or loss | (51,710)
| At end of year | (107,583)
| Company
|  | 2024
| At end of year | -
| The provision for deferred taxation is made up as follows:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Accelerated capital allowances | (107,583) | (55,873)
|  | (107,583) | (55,873)
Page 41
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
24. | Share capital
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 112,020,000 (2023 - 112,020,000) Ordinary A shares of £0.001 each | 112,020 | 112,020
|  | 1,097,188 (2023 - 1,097,188) Ordinary B shares of £0.001 each | 1,097 | 1,097
|  | 81,600,000 (2023 - 81,600,000) Ordinary C shares of £0.001 each | 81,600 | 81,600
|  |  | 194,717 | 194,717
25. | Reserves
Share premium account The share premium account represents the premium arising on the issue of shares net of issue costs. Capital redemption reserve Capital redemption reserve represents the non-distributable reserves arising on the recharge of the company's own shares. Other reserves Other reserves represents the value of the shares held by the Bancroft Group Limited Share Incentive Plan (SIP) which was acquired on the acquisition of Bancroft Limited. Profit and loss account The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.
26. | Capital commitments
| At 31 December 2024 the Group and Company had capital commitments as follows:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Contracted for but not provided in these financial statements | 13,200 | 86,250
|  | 13,200 | 86,250
Page 42
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
27. | Pension commitments
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £129,983 (2023: £117,863). The balance outstanding at the balance sheet date was £43,545 (2023: £37,114).
28. | Commitments under operating leases
| At 31 December 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Not later than 1 year | 537,500 | 539,172
| Later than 1 year and not later than 5 years | 1,996,847 | 2,045,858
| Later than 5 years | 843,225 | 1,325,068
|  | 3,377,572 | 3,910,098
Page 43
TEEM GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
29. | Related party transactions
| During the year transactions with the following related parties occured: Key management personnel received compensation of £5,418,622 (2023: £3,719,179) during the year. At the year-end the following amounts were due from/(to):
|  | 2024 | 2023
|  | £ | £
| Key management personnel | 605,998 | 500,565
| Other related parties | 771,500 | 584,622
30. | Directors' Benefits: Advances, credit and guarantees
Included within other debtors are loans to the following directors and former directors. There is no interest due on these balances and there is no fixed repayment term.
|  | 2024 | 2023
|  | £ | £
| Current directors of the company | 605,998 | 478,626
| Former directors of the company | - | 21,940
Page 44