wk-2024-12-31-ixbrl


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Kellogg Brown & Root Limited

Strategic Report

Year ended 31 December 2024

The directors present their strategic report of the company for the year ended 31 December 2024

Principal activities and business review

The Company delivers science, technology, engineering and logistics support solutions to governments and

companies around the world. Drawing from its rich 100-year history and culture of innovation and mission

focus, KBR creates sustainable value by combining deep domain expertise with its full-life cycle capabilities

to help clients meet their most pressing challenges. Our capabilities and offerings include the following:

• Scientific research such as quantum science and computing, materials science, life science research,

and earth sciences;

• Defence systems engineering such as test and evaluation, aerospace acquisition support, systems and

platform integration, and sustainment engineering;

• Operational support such as facilities management, integrated supply chain and logistics and

military aviation support;

• Sustainable decarbonization solutions that accelerate and enable energy transition and climate

change solutions such as proprietary, sustainability-focused process licensing, advisory services

focused on energy transition, high-end engineering, design and program management offerings, and

digitally-enabled asset optimisation solutions.

During the year, the Company's business was organised internally into a two core segment model -

comprising Government Solutions and Sustainable Technology Solutions.

Government Solutions (GS)

Our GS business segment provides full life-cycle support solutions to defence, aviation, infrastructure and

other programs and missions for military and other government agencies in the U.K. and EMEA region. KBR

services cover the full spectrum through systems engineering and integration to operations support, readiness

and logistics.

KBR is recognized as one of the UK M.O.D’s 17 strategic suppliers, due to our significant work with the

M.O.D. through our direct support contracts and strategic joint ventures.

Sustainable Technology Solutions (STS)

Our STS business segment is anchored by our portfolio of innovative, proprietary, sustainability-focused

process technologies. STS also provides highly synergistic services including advisory and consulting,

focused on broad-based energy transition and net-zero carbon emission solutions, high-end engineering,

design and professional services centred around decarbonization, energy efficiency, environmental impact

and asset optimization, as well as our digitally-enabled operating and monitoring solutions. The Company

also continues to serve legacy oil and gas clients.

Through early planning and scope definition, advanced technologies and facility life-cycle optimization, our

STS business segment works closely with customers to provide what we believe is the optimal approach to

maximize their return on investment.

Further discussion of the business review is included in the Consolidated Annual Report of Kellogg Brown &

Root Holdings Limited (“the group”).


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Kellogg Brown & Root Limited

Strategic Report (continued)

Year ended 31 December 2024

Results

The profit for the year, after taxation, amounted to £118,850,000 (2023: profit after tax - £228,069,000). The

net assets at the end of the year totalled to £1,172,361,000 (2023: net assets - £1,732,356,000).

Financial risk management objectives and policies

Principal risks and uncertainties

The management of the business and the execution of the Company's strategy are subject to a number of

risks. The key business risks and uncertainties affecting the Company are considered to relate to the

following:

Cash flow risk

Cash flow is dependent on large scale projects and often the timing of new project awards is unpredictable

and the uncertainty of contract award timing can also present difficulties in matching workforce size with

contract needs. Our results of operations and cash flows may therefore be subject to significant period

fluctuations. Any decrease in the magnitude of work done for the MoD, decrease in capital spending for

infrastructure, or other projects, could have a material adverse effect on our business and cash flows.

However, the Company maintains sufficient cash-in-bank balance and actively manages its cash flow needs.

Pricing risk

A portion of our projects are on a fixed or agreed price basis, subjecting the company to risk associated with

cost over-runs, operating cost inflation and any potential claims for liquidated damages. If our long–term

contracts are on a fixed price basis, any failure to accurately estimate the resources and time required to

complete our contractual obligations within the time frame and costs committed could have a material

adverse effect on the business, results of operations and financial condition, since the company would bear

the risk.

Our projects are frequently awarded through a competitive bidding process which is standard in the industry.

Hence there is constant competition for project awards based on pricing and breadth and technical

sophistication of our services. Any increase in competition or reduction in our competitive capabilities could

have an adverse impact on the margins we generate from our projects or our ability to retain market share.

Credit and liquidity risk

Customers may require the company to provide credit enhancements including bonds, letters of credit or

financial guarantees. In line with industry practice, we are often required to provide performance and surety

bonds to customers. These bonds indemnify the customer should we fail to perform our obligations under the

contract. If a bond is required for a particular project and we are unable to obtain this we may be unable to

pursue that project. Because of liquidity and other issues, we may at times be unable to provide necessary

letters of credit. In addition, future projects may require the Company to obtain letters of credit that extend

beyond the terms of our current credit facility. Further, our credit facility limits the amount of new letters of

credit and other debt we can incur outside of the credit facility, which could adversely affect our ability to bid

competitively on future projects.

Other key risks include:

• A highly competitive market, with many competitive factors affecting sales such as price, product

and service and quality delivery which could reduce market share and profits.


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Kellogg Brown & Root Limited

Strategic Report (continued)

Year ended 31 December 2024

• Attracting and maintaining a sufficient number of trained engineers and other skilled workers may

affect the ability of the business to pursue projects and costs may increase.

• Exchange rate risks due to fluctuating currencies and large foreign currency balances.

• Uncertainties related to any geopolitical, economic and regulatory effects or changes due to recent

or upcoming domestic and international elections.

• Demand for services depends on capital spending by customers in their target markets, many of

which are cyclical in nature and impacted by changes in government policy, among other external

drivers.

• We operate in highly regulated markets requiring adherence to laws covering risk areas including

bribery and corruption, government contracting regulations and international trade laws and

sanctions.

Key performance indicators ("KPIs")

The businesses which form this company make up part of the group. The key performance indicators used to

review and monitor the business are set by the directors of the group and are discussed in more detail in the

Consolidated Annual Report of the group.

Future developments

The directors continue to evaluate new and existing markets to pursue any opportunities which will improve

the performance and value of the company to its shareholders.

Management of the Company is in the process of considering the impact of climate change on its business

and its ability to continue to operate in different future scenarios. Based on current assumptions, Management

and the Directors do not believe that climate change will directly impact our ability to win and execute work.

Further, due to our market leading technologies and capabilities in Energy Transition, climate change may

ultimately represent a strategic opportunity for the Company as governments and companies increasingly

work to achieve net zero targets which will require KBR technology and process expertise.

To streamline and optimize our processes, the company has realigned its segments effective for the year

2025. As part of this realignment, the Government Solutions reportable segment has been renamed Mission

Technology Solutions while Sustainable Technology Solutions has retained its name. The international

business contained within Government Solutions has been integrated into both Mission Technology Solutions

and Sustainable Technology Solutions. The Company will begin reporting the new segment information for

the year 2025.

Section 172(1) Statement

The Directors continue to have regard to the matters set out in sections 172(1) (a) to (f) of the Companies Act

2006, thereby promoting the success of the Company for the benefit of its stakeholders as a whole, including

the likely consequences of their decisions in the longer term, and how they have taken wider stakeholders'

needs into account.

During the year ended 31 December 2024, the Board reviewed its stakeholder mapping to assess whether the

identification of key stakeholders remains appropriate. It was concluded that the key stakeholders remain the

Company's customers, the Company's ultimate parent company KBR, Inc., the Company’s and its

subsidiaries’ employees.


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Kellogg Brown & Root Limited

Strategic Report (continued)

Year ended 31 December 2024

The Company is also aware of its impact on the local communities where it operates, and its wider social and

environmental responsibilities.

In order to place stakeholders' considerations at the heart of the Board's decision-making process, the

Directors receive regular feedback and insights on the Company's key stakeholders during their Board

meetings, town halls with employees, meetings with employees’ representatives, clients and pension plan

trustees. The Directors recognise the importance of proactive engagement with the Company's stakeholders

in order to understand their perspectives first-hand and to maintain positive and effective relationships.

During the year, the Directors discussed service delivery and other strategic matters with senior members of

the customer organisations during formal meetings, informal correspondence and attendance at strategic

Boards. Directors responsible for the GS segment have regular contact with senior officials of U.K.

Government departments. Directors responsible for the STS segment have regular communications and

meetings with private clients.

The Directors participate in regular (monthly or quarterly) sponsor meetings held on most of our projects

with the client leadership teams and business leadership in attendance. Client relationships are managed and

developed. Also, should a client wish to speak with executive management, that is arranged. Client

complaints are investigated, responded to and logged on the project as well as with local and regional

Operations leadership and through Legal and Commercial teams. There are also regular internal project

reviews attended by the Directors. By way of example, the following issues are escalated: safety, compliance,

client feedback (positive and negative), performance, potential financial impacts and all matters about which

there is doubt.

The Company's ultimate parent’s Board regularly receives information regarding the Company's

performance. The Company remains aligned with the strategic and business development objectives of KBR,

Inc.

The Directors manage and control strict compliance with the KBR Code of Business Conduct in all areas of

the Company’s and Group’s activity by employees and contract personnel.

The Directors regularly engage with clients, and they recognise the importance of visiting the Company's and

Group’s sites where its services are being delivered. During the year, the Directors undertook numerous site

visits during which they met with employees, the subcontractors' employees and management teams, to

review operations first-hand and to assure themselves of the adequacy of resources, employment conditions,

facilities, safety arrangements and compliance with all relevant regulations.

The Company reviews the subcontractors' supply chain arrangements, to confirm the continuation of

effective relationships and the transparency of transactions, including the flow down of the KBR Code of

Business Conduct and Ethics, and support of the Company's statements on the Modern Slavery Act and

prompt payment procedures. In addition, the Directors have made available an independent whistleblowing

facility which can be accessed on the Company's website.

The Payment Practices reports are reviewed and filed twice a year by the Company. Qualified members of

the Group regularly review data on the timing of payments and do their best to maintain the Company’s

Prompt Payment Code membership status.


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Kellogg Brown & Root Limited

Strategic Report (continued)

Year ended 31 December 2024

This report was approved by the board of directors on 19 September 2025 and signed on behalf of the board

by:


Mr A M Goodwin
Director

Registered office:
Hill Park Court
Springfield Drive
Leatherhead
Surrey
KT22 7NL


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Kellogg Brown & Root Limited

Directors' Report

Year ended 31 December 2024

The directors present their report and the financial statements of the Company for the year ended

31 December 2024.

Directors

The directors who served the company during the year were as follows:


J J Ibrahim
M O Daly	(Resigned 9 April 2024)
A M Goodwin	(Appointed 11 April 2024)
S J Bradie
P E Kahn	(Resigned 12 July 2024)
P C O'Shaughnessy	(Appointed 15 July 2024)

Company secretaries


S Galindo
M Cable-Lewis	(Appointed 15 May 2025)

Dividends

Dividends paid during the year amounted to £679,835,695 (2023: £nil). No final dividends are proposed.

Employment policies

The Company is encouraged to implement comprehensive employment policies designed to enable

employees to associate their achievements with those of the Company.

Employee involvement and communication programmes continue to be developed and the Company

provides equal opportunity to all its employees, irrespective of sex, race or religion. The Company

endeavours to provide equality of opportunity in recruiting, training, promoting and developing the careers of

disabled persons.

The community and education

The Company continues to be committed to maintaining an active role in the community. It has established a

UK-wide community relations programme aimed at developing partnerships with the voluntary and public

sectors, and education. It supports numerous charity initiatives giving priority to the local communities where

it has business operations. The Company is particularly active in developing links with education and

supports initiatives to raise awareness in science and technology and the promotion of careers in engineering.

Encouraging employee involvement is at the core of its community programme.

Employment of disabled persons

In pursuit of its equal opportunity policy, the Company gives full and fair consideration to the employment of

disabled persons, taking into account the degree of disablement, proposed job function and working

environment. An employee who becomes disabled whilst in the Company’s employment will continue

where possible in the employment in which he or she was engaged prior to the disablement. Training and

development is undertaken by the Company for all employees including disabled persons.


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Kellogg Brown & Root Limited

Directors' Report (continued)

Year ended 31 December 2024

Employee involvement

The Company has continued the regular distribution to employees of news bulletins and parent company

publications. It is the Company's continuing policy to seek improvements to the existing channels of

communication.

Stakeholder engagement

The Company recognises the importance of maintaining a strong relationship with suppliers, customers and

other business relationships as they are fundamental to the quality of the Company’s operations and business

performance. All stakeholders are informed of progress on matters of concern to them. Monthly and quarterly

business reviews ensure that the business maintains good relationships.

Research and development

The Company has incurred Research and Development costs of approximately £28,300,000 in 2024 (2023:

£25,000,000).

Energy and carbon reporting disclosure

The Company is a subsidiary of Kellogg Brown & Root Holdings Limited which prepares consolidated

accounts containing the Energy and Carbon Reporting Disclosure in its Directors’ Report.

The Company is committed to minimising any adverse environmental effects resulting from its operations

and engage in environmental audits to demonstrate compliance to our environmental requirements. The

Company ensures that this policy is communicated and understood by its employees and subcontractors. The

Company works with its customers and supply chain to promote best practice environmental management.

We ensure that our core environmental principles are implemented through our business processes as part of

the management system. Our management system complies with the requirements of BS EN ISO14001.

Going concern

The Company’s business activities together with factors likely to affect its future development, performance

and position are set out in the Strategic Report on pages 1 to 5. The Directors have considered the future

profitability of the Company and its ability to continue as a going concern and have prepared profit forecasts

into the future. All business segments have recently prepared forward looking budgets and cash forecasts for

a period covering at least 12 months from the date of approval of the financial statements. At the same time,

management prepares a 5 year strategic plan on a rolling basis.

Operating performance has continued to be strong in 2024, with the Company benefitting from increased

demand from services and continued profitable performance from Group undertakings. This trend is expected

to continue into 2025 with a strong order backlog, notably in the STS segment.

In line with KBR’s corporate strategy, both GS and STS have project portfolios consisting mainly of lower

risk, reimbursable projects. The focus on reimbursable projects also allows some additional flexibility to add

or subtract variable costs, including staff, in line with increases or reductions in project volumes. This allows

for considerable resiliency even in the face of stress testing the budget.


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Kellogg Brown & Root Limited

Directors' Report (continued)

Year ended 31 December 2024

Going concern (continued)

Management of all the business segments have recently prepared forward looking budgets and cash forecasts

for a period covering at least 12 months from the date of approval of the financial statements. At the same

time, the management has prepared 5 year strategic plans through to year 2029. These plans, noting the

impact of continued improved end markets expected in 2025, as well as the changes in business strategy,

show growth of revenue and operating income in the business.

Operating cash flows from the business segments’ operations are generally expected to be in line with their

operating income.

The Company does not have any significant legal claims or other matters that would impact liquidity.

Consequently, the Directors are confident that the Company will have sufficient funds to continue to meet its

liabilities as they fall due for at least 12 months from the date of approval of the financial statements and

therefore have prepared the financial statements on a going concern basis.

Branches outside UK

The Company conducts part of its business through its branches in Iraq, Luxembourg and Algeria.

Disclosure of information in the strategic report

In accordance with section 414C(11) of the Companies Act 2006 the following information has been

presented in the strategic report on pages 1 to 3 as the directors consider this to be of strategic importance to

the company:

• Principal activities and business review

• Results

• Principal risks and uncertainties

• Key performance indicators

• Future developments

Events after the end of the reporting period

Subsequent events are shown in note 34 to the accounts.

There are no further subsequent events that require disclosure or impact the company's financial statements

for the year ended 31 December 2024.


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Kellogg Brown & Root Limited

Directors' Report (continued)

Year ended 31 December 2024

Statement of Directors' responsibilities in respect of the strategic report, the

Directors' report and the financial statements

The Directors are responsible for preparing the strategic report, the Directors' report and the financial

statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law

they have elected to prepare the financial statements in accordance with UK accounting standards and

applicable law (UK Generally Accepted Accounting Practice), including FRS 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 of the profit or loss of the Company for

that period. In preparing these financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgments and 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;

• access the Company's ability to continue as a going concern, disclosing, as applicable, matters related to

going concern; and

• use the going concern basis of accounting unless they either intend to liquidate the Company or to cease

operations, or have no realistic alternative but to do so.

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 enable them to ensure that the financial statements comply with the Companies Act 2006.

They are responsible for such internal control as they determine is necessary to enable the preparation of

financial statements that are free from material misstatement, whether due to fraud or error, and have general

responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company

and to prevent and detect fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the corporate and financial information

included on the Company's website. Legislation in the UK governing the preparation and dissemination of

financial statements may differ from legislation in other jurisdictions.

Disclosure of information to auditor

Each of the persons who is a Director at the date of approval of this report confirms that:

• so far as they are aware, there is no relevant audit information of which the Company's auditor is

unaware; and

• they have taken all steps that they ought to have taken as a Director to make themselves aware of any

relevant audit information and to establish that the Company's auditor is aware of that information.


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Kellogg Brown & Root Limited

Directors' Report (continued)

Year ended 31 December 2024

Auditor

Pursuant to Section 487 of the Companies Act 2006, the auditor will be deemed to be reappointed and Grant

Thornton will therefore continue in office.

This report was approved by the board of directors on 19 September 2025 and signed on behalf of the board

by:


Mr A M Goodwin
Director

Registered office:

Hill Park Court
Springfield Drive
Leatherhead
Surrey
KT22 7NL


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Independent Auditor's Report to the member of Kellogg Brown & Root Limited

Opinion

We have audited the financial statements of Kellogg Brown & Root Limited ("the company"), which comprise

the Statement of Profit and Loss Account and Other Comprehensive Income, Balance sheet, Statement of

Changes in Equity and related notes to the financial statements, including a summary of significant accounting

policies, for the year ended 31 December 2024.

The financial reporting framework that has been applied in the preparation of the financial statements is FRS

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 in accordance with United Kingdom Generally Accepted Accounting Practice

of the assets, liabilities and financial position of the company as at 31 December 2024 and of its

financial performances for the year then ended; and

• have been properly 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 'Responsibilities of the

auditor for the audit of the financial statements' section of our report. We are independent of the company in

accordance with the ethical requirements that are relevant to our audit of the financial statements in the United

Kingdom, including the FRC's Ethical Standard and the ethical pronouncements established by Chartered

Accountants Ireland, applied as determined to be appropriate in the circumstances for the entity. 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 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 company's ability to continue as a

going concern for a period of at least twelve months from the date when the financial statements are authorised

for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the

relevant sections of this report.

Other information

Other information comprises information included in the annual report, other than the financial statements and

our auditor's report thereon, including the Strategic Report and the Directors' Report. The directors are

responsible for the other information. 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.


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Independent Auditor's Report to the Member of Kellogg Brown & Root Limited (continued)

In connection with our audit of the financial statements, 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 audit, or otherwise appears to be materially misstated. If we identify such material

inconsistencies in the financial statements, we are required to determine whether there is a material misstatement

in the financial statements or a material misstatement of the other information. If, based on the work we have

performed, we conclude that there is a material misstatement of this other information, we are required to report

that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the Strategic Report and the Directors' Report for the financial year for which

the financial statements are prepared is consistent with the financial statements; and

• the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal

requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of

the audit, we have not identified any material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to

report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been

received from branches not visited by us; or

• the financial statements and the part of the Directors' remuneration report to be audited 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 management and those charged with governance for the

financial statements

As explained more fully in the directors' responsibilities statement, management is responsible for the

preparation of the financial statements, which give a true and fair view in accordance with United Kingdom

Generally Accepted Accounting Practice, including FRS 102, and for such internal control as the directors

determine 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, management is responsible for assessing the 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 management either intends to liquidate the company or to cease operations, or has no

realistic alternative but to do so.

Those charged with governance are responsible for overseeing the company's financial reporting process.


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Independent Auditor's Report to the Member of Kellogg Brown & Root Limited (continued)

Responsibilities of the auditor for the audit of the financial statements

The objectives of an auditor are to obtain reasonable assurance about whether the financial statements as a whole

are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes

their opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in

accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise

from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be

expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of an auditor's 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 auditor's report.

Explanation as to what extent the audit was considered capable of detecting

irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures

in line with our responsibilities, to detect material misstatements in respect of irregularities, including fraud.

Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the

financial statements may not be detected, even though the audit is properly planned and performed in accordance

with the ISAs (UK). The extent to which our procedures are capable of detecting irregularities, including fraud is

detailed below:

Based on our understanding of the company and industry, we identified that the principal risks of non-

compliance with laws and regulations related to compliance with Data Privacy law, Employment Law,

Environmental Regulations, and Health & Safety, and we considered the extent to which non-compliance might

have a material effect on the financial statements. We also considered those laws and regulations that have a

direct impact on the preparation of the financial statements such as the Companies Act 2006 and local tax

legislation. The Audit engagement partner considered the experience and expertise of the engagement team to

ensure that the team had appropriate competence and capability to identify or recognise non-compliance with

laws and regulation We evaluated management's incentives and opportunities for fraudulent manipulation of the

financial statements (including the management risk of override of controls), and determined that the principal

risks were related to posting inappropriate journal entries to manipulate financial performance and management

bias through judgements and assumptions in significant accounting estimates, in particular in relation to

significant one-off or unusual transactions. We apply professional scepticism through the audit to consider

potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in

the financial statements.

In response to these principal risks, our audit procedures included but were not limited to:

• enquiries board on the policies and procedures in place regarding compliance with laws and

regulations, including consideration of known or suspected instances of non-compliance and whether

they have knowledge of any actual, suspected or alleged fraud;

• inspection of the Company's regulatory and legal correspondence and review of minutes of board

meetings during the year to corroborate inquiries made;

• gaining an understanding of the internal control established to mitigate risk related to fraud;


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Independent Auditor's Report to the Member of Kellogg Brown & Root Limited (continued)

• discussion amongst the engagement team in relation to the identified laws and regulations and

regarding the risk of fraud, and remaining alert to any indications of non-compliance or opportunities

for fraudulent manipulation of financial statements throughout the audit;

Responsibilities of the auditor for the audit of the financial statements

(continued)

Explanation as to what extent the audit was considered capable of detecting

irregularities, including fraud (continued)

• performance of journal entry testing by specific risk criteria, with a focus on manual journals and

journals indicating large or unusual transactions based on our understanding of the company’s business;

• designing audit procedures to incorporate unpredictability around the nature, timing or extent of our

testing;

• challenging assumptions and judgements made by management in their significant accounting

estimates;

• review of the financial statement disclosures to underlying supporting documentation and inquiries of

management.

The primary responsibility for the prevention and detection of irregularities including fraud rests with those

charged with governance and management. As with any audit, there remains a risk of non-detection or

irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of

internal controls.

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the company's members, as a body, in accordance with the terms of our

engagement letter. Our audit work has been undertaken so that we might state to the company's members those

matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the company and the

company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Stephen Murray (Senior Statutory Auditor)

For and on behalf of

Grant Thornton

Chartered Accountants & Statutory Auditors

Dublin

19 September 2025

The notes on pages 19 to 48 form part of these financial statements.


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Kellogg Brown & Root Limited

Income Statement

Year ended 31 December 2024


		2024	2023
	Note	£000	£000
Turnover	4	360,795	293,316
Cost of sales		(342,586)	(275,389)
Gross profit		18,209	17,927
Administrative expenses		(29,545)	(28,160)
Operating loss	5	(11,336)	(10,233)
Income from shares in group undertakings	9	207,713	227,244
Income from participating interests	10	1,200	3,422
Interest receivable and similar income	11	77,672	95,435
Amounts impaired on investments (net)	12, 18	(115,795)	(43,578)
Interest payable and similar expenses	13	(27,626)	(29,634)
Exceptional items	14	(333)	498
Profit before taxation		131,495	243,154
Tax on profit	15	(12,645)	(15,085)
Total profit for the financial year		118,850	228,069

All the activities of the company are from continuing operations.

The notes on pages 19 to 48 form part of these financial statements.


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Kellogg Brown & Root Limited

Statement of Comprehensive Income

Year ended 31 December 2024


	2024	2023
	£000	£000
Profit for the financial year	118,850	228,069
Fair value gain/(loss) on cash flow hedging instruments	991	(395)
Other comprehensive income/(loss) for the year	991	(395)
Total comprehensive income for the financial year	119,841	227,674

The notes on pages 19 to 48 form part of these financial statements.


	- 17 -

Kellogg Brown & Root Limited

Statement of Financial Position

31 December 2024


		2024		2023
	Note	£000	£000	£000
Fixed assets
Intangible assets	16		22,049	15,771
Tangible assets	17		4,397	4,099
Investments	18		939,453	1,047,391
			965,899	1,067,261
Current assets
Debtors (including £1,868,000 (2023: £6,591,000) due after one year)	19	613,807		1,231,105
Cash at bank	20	6,645		38,830
		620,452		1,269,935
Creditors: amounts falling due within one year	21	(313,444)		(489,856)
Net current assets			307,008	780,079
Total assets less current liabilities			1,272,907	1,847,340
Creditors: amounts falling due after one year	22		(95,670)	(114,984)
Provisions	23		(4,876)	—
Net assets			1,172,361	1,732,356
Equity
Called up share capital	27		91	91
Share premium account	28		309,432	309,432
Share based payments contribution from ultimate parent	28		2,156	2,156
Capital contribution from parent	28		2,200	2,200
Cash flow hedge reserve	29		767	(224)
Profit and loss account	28		857,715	1,418,701
Total equity			1,172,361	1,732,356

These financial statements were approved by the board of directors and authorised for issue on

19 September 2025, and are signed on behalf of the board by:

Mr A M Goodwin

Director

Company registration number: 00645125

The notes on pages 19 to 48 form part of these financial statements.


	- 18 -

Kellogg Brown & Root Limited

Statement of Changes in Equity

Year ended 31 December 2024


	Note	Called up share capital	Share premium account	Share based payments contribution from parent	Capital contribution from parent	Cash flow hedge reserve	Profit and loss account	Total equity
		£000	£000	£000	£000	£000	£000	£000
At 1 January 2023		91	309,432	2,156	2,200	171	1,190,632	1,504,682
Profit for the financial year		—	—	—	—	—	228,069	228,069
Other comprehensive loss
Fair value movements on cash flow hedges		—	—	—	—	(395)	—	(395)
Total comprehensive (loss)/income for the financial year		—	—	—	—	(395)	228,069	227,674
At 31 December 2023	29	91	309,432	2,156	2,200	(224)	1,418,701	1,732,356
Profit for the financial year		—	—	—	—	—	118,850	118,850
Other comprehensive income
Fair value movement on cash flow hedges		—	—	—	—	991	—	991
Total comprehensive income for the financial year		—	—	—	—	991	118,850	119,841
Dividends paid		—	—	—	—	—	(679,836)	(679,836)
Total transactions with owners		—	—	—	—	—	(679,836)	(679,836)
At 31 December 2024		91	309,432	2,156	2,200	767	857,715	1,172,361


	- 19 -

Kellogg Brown & Root Limited

Notes to the Financial Statements

Year ended 31 December 2024

1.General information

The Company is a private company limited by shares and is incorporated and domiciled in the United

Kingdom, and registered in England. The address of the registered office is Hill Park Court, Springfield

Drive, Leatherhead, Surrey, KT22 7NL, United Kingdom.

2.Statement of compliance

These financial statements have been prepared in accordance with applicable United Kingdom Accounting

Standards, including Financial Reporting Standard 102, ‘The Financial Reporting Standard applicable in

the UK and Republic of Ireland’ (‘FRS 102’) and the Companies Act 2006.

3.Accounting policies

3 (a).Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of

certain financial assets and liabilities and investments measured at fair value through profit or loss.

The financial statements are prepared in sterling (£), which is the functional currency of the entity.

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102.

The entity's financial statements are consolidated into the financial statements of KBR, Inc. (incorporated

in the state of Delaware, U.S.A.) which can be obtained from the Public Relations Department, Hill Park

Court, Springfield Drive, Leatherhead, Surrey, KT22 7NL, United Kingdom. As such, advantage has been

taken of the following disclosure exemptions available under Section 1 of FRS 102 paragraphs:

1.12(b) No cash flow statement has been presented for the company.

1.12(d) Disclosures in respect of share-based payments have not been presented.

1.12(e) No disclosure has been given for the aggregate remuneration of key management personnel.

The entity's financial statements are also consolidated into the financial statements of Kellogg Brown &

Root Holdings Limited (incorporated in England & Wales) which can be obtained from the Public

Relations Department, Hill Park Court, Springfield Drive, Leatherhead, Surrey, KT22 7NL. As such,

advantage has been taken of the following disclosure exemptions available under Section 1 of FRS 102

paragraphs:

1.12(c) Disclosures in respect of financial instruments have not been presented.

3 (b).Going concern

The Company’s business activities together with factors likely to affect its future development,

performance and position are set out in the Strategic Report on pages 1 to 5. The Directors have

considered the future profitability of the company and its ability to continue as a going concern and have

prepared profit forecasts into the future.


	- 20 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

3.Accounting policies (continued)

3 (b).Going concern (continued)

Due to the changes introduced in our business model, operating performance in 2024 was good and the

STS business continues to be a profitable business in 2025, with the business well-positioned in its growing

end markets.

During 2024, the UK government made efforts to continue accelerated payments for most projects. As a

result, the Company’s GS business continued to meet budgeted income figures.

In line with KBR’s corporate strategy, both GS and STS have project portfolios consisting mainly of lower

risk, reimbursable projects. The focus on reimbursable projects also allows some additional flexibility to

add or subtract variable costs, including staff, in line with increases or reductions in project volumes. This

allows for considerable resiliency even in the face of stress testing the budget.

Management of all the business segments have recently prepared forward looking budgets and cash

forecasts for a period covering at least 12 months from the date of approval of the financial statements. At

the same time, management prepares a 5 year strategic plan on a rolling basis. These plans, noting the

impact of continued improved end markets expected in 2025, as well as the changes in business strategy,

show growth of revenue and operating income in the business.

Operating cash flows from the business segments’ operations are generally expected to be in line with their

operating income.

The Company does not have any significant legal claims or other matters that would impact liquidity.

Consequently, the Directors are confident that the Company will have sufficient funds to continue to meet

its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and

therefore have prepared the financial statements on a going concern basis.

3 (c).Contract debtors

Contract debtors represent the gross unbilled amount for contract work performed to date. They are

measured at cost plus profit recognised to date less a provision for foreseeable losses and less progress

billings. Variations are included in contract revenue when they are reliably measurable and it is probable

that the customer will approve the variation itself and the revenue arising from the variation. Claims are

included in contract revenue only when they are reliably measurable and negotiations have reached an

advanced stage such that it is probable that the customer will accept the claim. Cost includes all

expenditure related directly to specific projects and an allocation of fixed and variable overheads incurred

in the Company's contract activities based on normal operating capacity.

Contract debtors are presented as part of debtors in the balance sheet. If payments received from customers

exceed the income recognised, then the difference is presented as accruals and deferred income in the

balance sheet.


	- 21 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

3.Accounting policies (continued)

3 (d).Defined contribution plans and other long term employee benefits

A defined contribution plan is a post-employment benefit plan under which the Company pays fixed

contributions into a separate entity and will have no legal or constructive obligation to pay further amounts.

Obligations for contributions to defined contribution pension plans are recognised as an expense in the

profit and loss account in the periods which services are rendered by employees.

The Kellogg Brown & Root Holdings Limited group (the smallest group in which Kellogg Brown & Root

Holdings Limited is consolidated) operates a pension scheme providing benefits based on final pensionable

pay. The assets of the scheme are held separately from those of the Kellogg Brown & Root Holdings

Limited group.

3 (e).Accounting for pre-contract costs

Pre-contract costs incurred in anticipation of a specific contract award are deferred only if the costs can be

directly associated with a specific anticipated contract and their recoverability from that contract is

probable. Pre-contract costs related to unsuccessful bids are written off no later than the period of being

informed that specific contract had not been awarded. Costs related to one-time activities such as

introducing a new product or service, conducting business in a new territory, conducting business with a

new class of customer or commencing new operations are expensed when incurred.

3 (f).Turnover

Turnover comprises sales in the ordinary course of business to external customers of goods supplied and

services rendered (excluding sales related taxes) and in the case of long term contracts, the proportion of

contract revenue applicable to the period. Progress is generally based upon physical progress, man-hours or

costs incurred depending on the type of job.

Revenues recognised in excess of amounts billed are classified as amounts recoverable on contracts and are

included within debtors. Amounts billed in excess of revenues recognised to date are classified as payments

on account and are included in creditors.

Revenue from the rendering of services is measured by reference to the stage of completion of the service

transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the

outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the

expenses recognised will be recovered.

3 (g).Basis of accounting for contracts

Income from engineering, project management, construction and procurement service contracts is

recognised in the period in which those services are performed. The Company follows the generally

accepted practice of reporting income from long-term construction, engineering and project management

contracts on the percentage of completion basis as costs are incurred and provides for all known or

anticipated losses on such contracts when they become evident.

3 (h).Dividend income

Dividend income is recognised in the profit and loss account under Income from shares in group

undertakings on the date the entity's right to receive payments is established.


	- 22 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

3.Accounting policies (continued)

3 (i).Dividend paid

Dividends are recognised as a liability in the company’s financial statements in the period in which they are

declared but not paid.

3 (j).Expenses

Operating lease

The Company enters into operating leases as described in note 29. Payments (excluding costs for services

and insurance) made under operating leases are recognised in the profit and loss account on a straight-line

basis over the term of the lease. Lease incentives received are recognised in profit and loss over the term of

the lease as an integral part of the total lease expense.

Finance lease

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding

liability using the rate implicit in the lease. The finance charge is allocated to each period during the lease

term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Contingent rents are charged as expenses in the periods in which they are incurred.

Interest receivable, Interest payable, similar income and charges

Interest payable and similar charges include borrowing costs are expensed as incurred.

Other interest receivable and similar income include interest receivable on funds invested.

Interest income and interest payable are recognised in profit or loss as they accrue, using the effective

interest method.

3 (k).Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the

reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised

in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive

income or directly in equity, respectively.

Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the

amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or

substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses

and other deferred tax assets are recognised to the extent that it is probable that they will be recovered

against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using

the tax rates and laws that have been enacted or substantively enacted by the reporting date that are

expected to apply to the reversal of the timing difference.


	- 23 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

3.Accounting policies (continued)

3 (l).Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot

exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign

currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being

taken to the profit and loss account.

Foreign currency gains and losses are reported on a net basis.

3 (m).Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated

amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the

fair value at the date of revaluation, as determined by reference to an active market, less any subsequent

accumulated amortisation and subsequent accumulated impairment losses.

Intangible assets acquired as part of a business combination are only recognised separately from goodwill

when they arise from contractual or other legal rights, are separable, the expected future economic benefits

are probable and the cost or value can be measured reliably.

3 (n).Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the

useful life of that asset as follows:


Software	-	10-20%
Technology	-	4-10%

If there is an indication that there has been a significant change in amortisation rate, useful life or residual

value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

3 (o).Tangible assets

Fixed assets are shown in the balance sheet at cost less accumulated depreciation.

3 (p).Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the

useful economic life of that asset as follows:


Machinery, equipment & vehicles	-	6%-33%
Land & buildings leasehold	-	2% or length of lease if shorter

Fixed assets under construction are held at cost until completion at which time they are capitalised and

depreciated accordingly.


	- 24 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

3.Accounting policies (continued)

3 (q).Research and development

Expenditure on research activities is recognised in the profit and loss account as an expense as incurred.

The Company engages in significant research costs which are mainly staff costs.

Expenditure on development activities may be capitalised if the product or process is technically and

commercially feasible, the Company has the intention, technical ability and sufficient resources to

complete development and that future economic benefits are probable when and if the Company can

measure reliably the expenditure attributable to the intangible asset during its development. Other

development expenditure is recognised in the profit and loss account as an expense as incurred.

The Company submits annual claims in respect of the UK Government’s Research and Development

Expenditure Credit (RDEC) scheme, whereby the Company’s tax liability is reduced or is received as a

cash benefit depending on the company’s financial position and the tax position of its parent. These are

made in arrears and therefore the amount of the claim is estimated by the Company. This is based on the

patterns of activity and claim in previous years and the level of eligible activity expected in the financial

year reported.

3 (r).Investments

Investments in incorporated undertakings are stated in the Company’s financial statements at cost less

amounts written off/impairments. Dividends received and receivable are credited to the Company’s income

statement.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Investments in jointly controlled entities are accounted for using the equity method.

Investments in joint operations are accounted for based on percentage share of assets, liabilities and results.

Other investments are fixed asset investments measured at fair value, with changes in fair value recognised

in the profit or loss.

3 (s).Investments in joint ventures

Investments in jointly controlled entities accounted for in accordance with the cost model are recorded at

cost less any accumulated impairment losses.

Investments in jointly controlled entities accounted for in accordance with the fair value model are initially

recorded at the transaction price. At each reporting date, the investments are measured at fair value, with

changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to

measure fair value reliably without undue cost or effort, the cost model will be adopted.

Dividends and other distributions received from the investment are recognised as income without regard to

whether the distributions are from accumulated profits of the joint venture arising before or after the date of

acquisition.


	- 25 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

3.Accounting policies (continued)

3 (t).Impairment of investments

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount

being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the

asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting

date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an

individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the

asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset

and generates cash inflows that largely independent of the cash inflows from other assets or groups of

assets.

If, in a subsequent period, the amount of an impairment loss decreases and the decrease can be related

objectively to an event occurring after the impairment was recognised, the impairment shall be reversed

directly.

3 (u).Cash and cash equivalents

Cash and cash equivalents comprise cash balances.

3 (v).Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event,

it is probable that the entity will be required to transfer economic benefits in settlement and the amount of

the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial

position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the

reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best

estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts

previously recognised are recognised in profit or loss unless the provision was originally recognised as part

of the cost of an asset. When a provision is measured at the present value of the amount expected to be

required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or

loss in the period it arises.

3 (w).Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of

financial assets and liabilities like trade and other debtors and creditors and amounts owed by and to group

undertakings.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting

period for objective evidence of impairment. If objective evidence of impairment is found, an impairment

loss is recognised in the Statement of comprehensive income.


	- 26 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

3.Accounting policies (continued)

3 (w).Financial instruments (continued)

For financial assets measured at amortised cost, the impairment loss is measured as the difference between

an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original

effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any

impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference

between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation

of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial liabilities are recognised initially at transaction price less attributable transaction costs.

Subsequent to initial recognition they are measured at amortised cost using the effective interest method.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an

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.

3 (x).Cash flow hedge reserve

The effective portion of the gain or loss on the hedging instrument is recognised in OCI in the cash flow

hedge reserve, while any ineffective portion is recognised immediately in the statement of profit or loss.

The Company uses forward currency contracts as hedges of its exposure to foreign currency risk in forecast

transactions and firm commitments. The ineffective portion relating to foreign currency contracts is

recognised in cost of sales. Amounts recognised in OCI are transferred to profit and loss when the hedged

transaction affects profit or loss such as when the hedged financial income or financial expense is

recognised or when a forecast sale occurs. When the hedged item is the cost of a non-financial asset or

liability, the amounts recognised as OCI are transferred to the initial carrying amount of the non-financial

asset or liability.

If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover (as

part of the hedging strategy) or if its designation as a hedge is revoked or when the hedge no longer meets

the criteria for hedge accounting, any cumulative gain or loss previously recognised in OCI remains

separately in equity until the forecast transaction occurs or the foreign currency firm commitment is met.

3 (y).Share-based payments

Where the Company's parent grants rights to its equity instruments to the Company's employees, which are

accounted for as equity-settled in the accounts of the parent or the company as the case may be account for

these share-based payments as equity-settled. Amounts recharged by the parent are recognised as a

recharge liability with a corresponding debit to the profit and loss account over the vesting period.


	- 27 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

3.Accounting policies (continued)

3 (z).Contingencies

Contingent liabilities

Contingent liabilities are possible obligations whose existence will be confirmed by uncertain future events

that are not wholly within the control of the Company. Contingent liabilities also include obligations that

are not recognised because their amount cannot be measured reliably or because settlement is not probable.

A contingent liability is not recognised in the statement of financial position. However, unless the

possibility of an outflow of economic resources is remote, a contingent liability is disclosed in the notes to

the financial statements.

Contingent assets

Contingent assets are possible assets whose existence will be confirmed by the occurrence or non-

occurrence of uncertain future events that are not wholly within the control of the entity. Contingent assets

are not recognised, but they are disclosed when it is more likely than not that an inflow of benefits will

occur. However, when the inflow of benefits is virtually certain an asset is recognised in the statement of

financial position, because that asset is no longer considered contingent.

3 (aa).Critical accounting assumptions and estimates

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates

will, by definition, seldom equal the related actual results. The estimates and assumptions that have a

significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the

next financial year are addressed below.

• Going concern (for details of assumptions adopted see note 3 (b)),

• Project revenues, costs and profits on the contracts, including recognition of estimated losses on

uncompleted contracts (for details of assumptions adopted see note 3 (f)),

• Provisions (for details of assumptions adopted see note 3 (v)),

• Impairment loss (for details of assumptions adopted see note 3 (t)),

• Deferred tax (for details of assumptions adopted see note 3 (k)),

• Useful life and impairment of fixed assets & intangible fixed assets (for details of assumptions

adopted and see notes 3 (n), 3 (p) and 3 (t)).

• Research and development (for details of assumptions adopted see note 3 (q)).


	- 28 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

4.Turnover

Turnover arises from:


	2024	2023
	£000	£000
Rendering of services	360,795	293,316

The turnover is attributable to the one principal activity of the Company. An analysis of turnover by the

geographical markets that substantially differ from each other is given below:


	2024	2023
	£000	£000
United Kingdom	164,861	114,670
Rest of Europe	96,841	56,322
Middle and Far East	62,260	93,354
Rest of the World	36,833	28,970
	360,795	293,316

By activity:


	2024	2023
	£000	£000
Sustainable Technology Solutions	202,561	186,034
Government Solutions	158,234	107,282
	360,795	293,316

5.Operating loss

Operating loss is stated after charging/(crediting):


	2024	2023
	£000	£000
Equity-settled share-based payments expense	1,819	2,636
Amortisation of intangible assets (note 16)	3,659	2,423
Depreciation of tangible fixed assets (note 17)	1,775	929
Reversal of impairment loss on debtors	(4,692)	(51)
Operating lease expenses (note 29)	6,345	6,274
Foreign exchange differences	77	(249)

6.Auditor's remuneration


	2024	2023
	£000	£000
Fees payable for the audit of the financial statements	182	162


	- 29 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

7.Staff costs

The average number of persons employed by the Company during the year, including the Directors,

amounted to:


	2024	2023
	No.	No.
Production staff	8	11
Administrative staff	6	5
	14	16

The aggregate payroll costs incurred during the year, relating to the above, were:


	2024	2023
	£000	£000
Wages and salaries	662	892
Share based payment expense	1,819	2,636
	2,481	3,528
Social security costs	78	119
Other pension costs	5	18
	2,564	3,665

8.Directors' remuneration

The Directors' aggregate remuneration in respect of qualifying services was:


	2024	2023
	£000	£000
Remuneration	407	602
Company contributions to defined contribution pension plans	6	25
	413	627

Remuneration of the highest paid director in respect of qualifying services:


	2024	2023
	£000	£000
Aggregate remuneration	407	602
Company contributions to defined contribution pension plans	6	25
	413	627

In instances where directors are appointed to more than one company within the Kellogg Brown & Root

Holdings Limited group, the remuneration of individual directors is disclosed solely in the highest

company within the Kellogg Brown & Root Holdings Limited group structure in which the director holds

office. The directors' remuneration disclosed in the accounts only represents the remuneration of directors

for whom this is their highest directorship.


	- 30 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

9.Income from shares in group undertakings


	2024	2023
	£000	£000
Income from group undertakings	207,713	227,244

10.Income from participating interests


	2024	2023
	£000	£000
Dividends from participating interests	1,200	3,422

11.Interest receivable and similar income


	2024	2023
	£000	£000
Interest on cash and cash equivalents	6,050	2,596
Interest from group undertakings	71,002	92,136
Interest from participating interests	1	703
Gain on financial instruments	—	—
Other interest receivable and similar income	619	—
	77,672	95,435

Certain balances owed by group undertakings and undertakings in which the Company has participating

interest bear interest. Detail of the balances, applicable interest rates and associated interest charges is

provided in note 19.

12.Amounts (impaired) / written back on investments (net)


	2024	2023
	£000	£000
Impairment losses (note 18)	140,399	110,678
Impairment reversals (note 18)	(24,604)	(67,100)
	115,795	43,578

During the year, the company's investment in Kellogg Brown & Root (Greenford) Limited was impaired by

£72,277,562 and the company’s investment in Kellogg Brown & Root Overseas Projects Limited was

impaired by a further £68,121,701.

During the year, the company reversed part of the impairment of its investment in Kellogg Brown & Root

International (MWK) Limited by £24,603,515.


	- 31 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

13.Interest payable and similar expenses


	2024	2023
	£000	£000
Interest on bank loans and overdrafts	10,354	8,212
Interest due to group undertakings	17,204	21,370
Interest due to participating interests	215	36
Other interest (receivable) / payable and similar charges	(147)	16
	27,626	29,634

Other interest (receivable) / payable represents the over accrual of HMRC interest payable.

Certain balances owed to group undertakings bear interest. Detail of the balances, applicable interest rates

and associate interest charges is provided in note 21.

14.Exceptional items


	2024	2023
	£000	£000
Restructuring costs	333	—
Onerous lease reversal	—	(498)
	333	(498)

15.Tax on profit

Major components of tax expense


	2024	2023
	£000	£000
Current tax:
UK current tax expense	5,675	8,302
Adjustments in respect of prior periods	426	3,809
Group relief payable	738	4,694
Total UK current tax	6,839	16,805
Foreign current tax expense	1,044	727
Adjustments in respect of prior periods	39	176
Total foreign tax	1,083	903
Total current tax	7,922	17,708

Deferred tax:
Origination and reversal of timing differences	4,719	1,326
Adjustments in respect of prior periods	4	(3,949)
Total deferred tax	4,723	(2,623)
Tax on profit	12,645	15,085


	- 32 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

15.Tax on profit (continued)

Tax recognised as other comprehensive income or equity

The aggregate current and deferred tax relating to items recognised as other comprehensive income or

equity for the year was £nil (2023: £nil).

Reconciliation of tax

The tax assessed on the profit for the year is lower than (2023: lower than) the standard rate of corporation

tax in the UK of 25% (2023: 23.52%).


	2024	2023
	£000	£000
Profit before taxation	131,495	243,154
Profit multiplied by rate of tax	32,874	57,190
Adjustment to tax charge in respect of prior periods	469	36
Effect of expenses not deductible for tax purposes	1,343	436
Share based payment expense	455	620
Effect of income exempt from tax	(52,228)	(54,253)
Amounts written off/ back investments	28,949	10,250
Rate difference between current and deferred tax	—	79
Impact of overseas tax rates	783	727
Tax charge on profit for the year	12,645	15,085

Factors that may affect future tax income

From 1 April 2023, the corporation tax main rate levied on taxable profits in the UK is 25%. For the

financial year ended 31 December 2024, the current and deferred tax rate was 25%.


	- 33 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

16.Intangible assets


	Software	Technology	Total
	£000	£000	£000
Cost
At 1 January 2024	8,537	18,214	26,751
Additions	10,610	—	10,610
Disposals	—	(673)	(673)
At 31 December 2024	19,147	17,541	36,688

Amortisation
At 1 January 2024	2,456	8,524	10,980
Charge for the year	2,658	1,001	3,659
At 31 December 2024	5,114	9,525	14,639

Carrying amount
At 31 December 2024	14,033	8,016	22,049
At 31 December 2023	6,081	9,690	15,771

Amortisation of intangible assets is included in administrative expenses.

A large portion of the intangibles balance for technology relates to VEBA Combination Cracking licences

(VCC). The Company acquired the rights to sell licenses to use this technology to third parties. The

technology is being amortised in equal annual instalments over 25 years.

Technology also includes an exclusivity fee of £5,000,000 to Mura Technology Limited.

Intellectual property of £673,000 was disposed of during 2024 due to the liquidation of Ecoplanning OY

(evaporation and crystallization technologies and specialist equipment) into its parent. This technology

portfolio was delivered across many KBR projects.

During the year the company acquired accounting software amounting to £10,610,778.


	- 34 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

17.Tangible assets


	Machinery, equipment & vehicles	Land & buildings leasehold	Fixed assets under construction	Total
	£000	£000	£000	£000
Cost
At 1 January 2024	10,833	2,822	1,570	15,225
Additions	—	—	2,073	2,073
Transfers in/(out)	1,587	1,883	(3,470)	—
Disposals	(831)	—	—	(831)
At 31 December 2024	11,589	4,705	173	16,467

Depreciation
At 1 January 2024	8,989	2,137	—	11,126
Charge for the year	914	861	—	1,775
Disposals	(831)	—	—	(831)
At 31 December 2024	9,072	2,998	—	12,070

Carrying amount
At 31 December 2024	2,517	1,707	173	4,397
At 31 December 2023	1,844	685	1,570	4,099

18.Investments


	Shares in group undertakings	Shares in participating interests	Other investments	Total
	£000	£000	£000	£000
Cost or valuation
At 1 January 2024	1,225,441	822	100,680	1,326,943
Additions	8,165	—	—	8,165
Transfers in/(out)	500	(500)	—	—
Disposals	—	(308)	—	(308)
At 31 December 2024	1,234,106	14	100,680	1,334,800

Impairment
At 1 January 2024	279,538	14	—	279,552
Impairment reversals	(24,604)	—	—	(24,604)
Impairment losses	140,399	—	—	140,399
At 31 December 2024	395,333	14	—	395,347

Carrying amount
At 31 December 2024	838,773	—	100,680	939,453
At 31 December 2023	945,903	808	100,680	1,047,391


	- 35 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

18.Investments (continued)

On 26 July 2024, the Company purchased the remaining 50% of its joint venture Fasttrax Holdings Limited

so that the joint venture became a fully owned subsidiary. The consideration paid in full was £8,215,705.

The cost of the joint venture investment was £499,995.

On 26th July 2024 the Company subscribed for 100 ordinary £1 shares in Phoenix (U.K.) Fusion Limited

for £1 each.

An additional consideration for the investment in VIMA Group Holdings Limited was made for £450,000.

On 20 March 2024, the Company sold its 25% joint venture holding in Road Management Services (A13)

Holdings Limited to Dragados Concessions Limited, together with loan notes issued pursuant to a

subordinated loan facility for a consideration of £4,691,562. The loan had previously been fully provided

against. The proceeds of £5,000,000 were paid in full. The cost of the investment sold was £308,438. As

such there was no profit or loss on the sale.

During the year, the company's investment in Kellogg Brown & Root (Greenford) Limited was impaired by

£72,277,562 and the company’s investment in Kellogg Brown & Root Overseas Projects Limited was

impaired by a further £68,121,701.

During the year, the company reversed part of the impairment of its investment in Kellogg Brown & Root

International (MWK) Limited by £24,603,515.

19.Debtors


	2024	2023
	£000	£000
Trade debtors	43,324	41,465
Amounts owed by group undertakings	532,466	1,156,643
Amounts owed by undertakings in which the company has a participating interest	2,733	2,709
Deferred tax asset (note 24)	1,868	6,591
Prepayments and accrued income	5,371	3,125
Corporation tax receivable	18,823	12,232
Corporation tax receivable (overseas)	134	15
Amounts recoverable on contracts	6,410	1,316
Other debtors	2,678	7,009
	613,807	1,231,105

£575,734,787 (2023: £1,293,510,307) is receivable from group undertakings including £407,768,941

(2023: £376,230,027 ) receivable from Kellogg Brown & Root International Limited under the promissory

note bearing one month SONIA plus 3% interest, guaranteed by KBR, Inc. and repayable on demand.

Other amounts bear monthly interest of 6.75-6.875% (2023:5.25% to 7%).

Interest recognised in Income statement amounted to £71,002,469 (2023: £92,839,483).

All other amounts owed by group undertakings are non-interest bearing, unsecured and repayable on

demand.


	- 36 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

19.Debtors (continued)

The debtors above include the following amounts falling due after more than one year:


	2024	2023
	£000	£000
Deferred tax asset (note 24)	1,868	6,591

20.Cash and cash equivalents


	2024	2023
	£000	£000
Cash at bank	6,645	38,830

21.Creditors: amounts falling due within one year


	2024	2023
	£000	£000
Bank loans	2,900	6,105
Payments received on account	28,305	13,318
Trade creditors	5,135	2,796
Amounts owed to group undertakings	248,755	440,353
Amounts owed to undertakings in which the company has a participating interest	3,064	4,234
Accruals and deferred income	22,208	19,679
Social security and other taxes	3,075	1,949
Other creditors	2	14
Derivative financial liability	—	1,408
	313,444	489,856

Amounts owed to group undertakings amounting to £160,230,167 (2023: £281,082,286) bears monthly

interest on a range between 6.75% -7.0551% (2023: 5.25% to 7%), are unsecured and repayable on

demand.

Also included in amounts owed to group undertakings is £20,000,000 (2023: £20,000,000) due to KBR

(Aspire Construction) Limited and KBR (Aspire Construction Ventures) Limited is permitted overnight

loans which bear interest at 0.35%-4.85% (2023:0.35%), are unsecured and repayable on demand.

Interest recognised in Income statement amounted to £17,419,000 (2023: £21,406,003), of which £949,397

(2023: £1,258,195) related to the overnight loans from KBR (Aspire Construction) Limited, KBR (Aspire

Construction Ventures) Limited.


	- 37 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

21.Creditors: amounts falling due within one year (continued)

A loan amount of £3,034,854 was payable to Affinity Flying Training Services Limited (2023:

£3,036,026). This bore interest at SONIA + 2% per annum (3 month compounded). Interest recognised in

Income Statement amounted to £215,036 (2023: £36,026).

A loan amount of £25,068,438 was due to Frazer-Nash Consultancy Limited (2023:£11,069,818). This

bore interest at SONIA + 1.75%. Interest recognised in the income statement amounted to £1,232,745

(2023: £213,079).

All other amounts owed to group undertakings are non-interest bearing, unsecured and repayable on

demand.

Amounts owed to undertakings in which the company has participating interest are non-interest bearing,

unsecured and repayable on demand.

22.Creditors: amounts falling due after one year


	2024		2023
	£000		£000
Non-current bank loans	90,749		109,674
Accruals and deferred income	4,921		5,310
	95,670	95,670	114,984

During 2021 the company entered into a loan agreement with the Bank of America N.A. The balance of the

loan at 31 December 2024 was £93,649,000 (2023: £115,779,000), of which £2,900,000 is presented in

Creditors: amounts falling due within one year, note 21. The loan is denominated in GBP and matures in

February 2029. The interest rates are based on Sterling Overnight Index Average (SONIA) with an average

rate charged in 2024 of 5.18% (2023:6.59%). The loan was re-negotiated in August 2024.

The term loan is subject to quarterly interest of 0.0625% of the principle loan amount until December

2025, when it will increase to 1.25% until December 2028.

The undrawn amount (at KBR, Inc. group level, whereby the company is a designated borrower) was

$641m at 31 December 2024 (2023 :$481m). No collateral has been provided by the company, the loan is

secured at KBR, Inc. group level.

23.Provisions


	Restructuring	Other provisions	Total
	£000	£000	£000
Additions	57	4,819	4,876
At 31 December 2024	57	4,819	4,876

Other provisions

Included within other provisions are provisions for losses on contracts. Where the outcome for a contract is

expected to result in an overall loss over the life of the project, this loss is provided for when it first

becomes known that a loss is expected to be incurred.


	- 38 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

24.Deferred tax

The deferred tax included in the statement of financial position is as follows:


	2024	2023
	£000	£000
Included in debtors (note 19)	1,868	6,591

The deferred tax account consists of the tax effect of timing differences in respect of:


	2024	2023
	£000	£000
Depreciation, net of capital allowances	1,196	1,228
Other	672	5,363
	1,868	6,591

The amounts for deferred tax included in these accounts are calculated using a deferred tax rate of 25%

which was the rate substantively enacted at the balance sheet date.

The directors of the Company are of the opinion that the deferred tax assets are recoverable in full.

25.Employee benefits

Defined contribution pension plans

The amount recognised in profit or loss as an expense in relation to defined contribution pension plans was

£5,270 (2023:£17,832).

26.Share-based payments

The Company's ultimate parent (KBR, Inc.) grants rights to its equity instruments to the Company's

employees. These are accounted for as equity-settled in the accounts of the Company. Amounts recharged

by the ultimate parent are recognised as a recharge liability with a corresponding debit to the profit and loss

account over the vesting period.

The fair value of share options is estimated using the Black-Scholes option pricing model, taking into

account the terms and conditions upon which the options were granted, and the fair value of restricted

shares is derived from fair market value of the associated common stock on the date of grant.

Previously, certain KBR employees participated in Halliburton compensation plans and received grants

under these plans in 2002 through 2005. Certain of these restricted shares and options remained unvested

or un-exercised at 1 January 2007. Those unvested shares and un-exercised options were converted to KBR

share-based compensation, in accordance with the KBR Transitional Stock Adjustment Plan. This occurred

on 7 April 2007, immediately following our parent Company's separation from Halliburton. In addition,

share based compensation was granted to the Company's employees in 2011 under KBR stock-based

compensation plans. KBR employees participate in the share based payment scheme, which is considered

to be a benefit to company employees, and therefore the Company recognises the associated expense.


	- 39 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

26.Share-based payments (continued)

Halliburton share based payment plans

1993 Stock and Incentive Plan

Halliburton has stock-based employee compensation plans in which, prior to KBR's separation from

Halliburton on 5 April 2007, certain key employees of KBR participated. In accordance with KBR's

Transitional Stock Adjustment Plan and upon our complete separation from Halliburton, un-exercised

stock options and unvested restricted stock awards previously granted to KBR employees under

Halliburton's 1993 Stock and Incentive Plan (the "Halliburton Plan") were converted to stock options and

restricted stock awards associated with KBR common stock.

Restricted shares issued under the Halliburton Plan are restricted as to sale or disposition. These

restrictions lapse periodically over an extended period of time not exceeding 10 years. Restrictions may

also lapse upon qualifying retirement or upon other conditions in accordance with Halliburton's established

policies. Upon termination of employment, shares on which restrictions have not lapsed must be returned

to Halliburton, resulting in restricted stock forfeitures. The fair market value of the stock on the date of

grant is amortized and ratably charged to income over the period during which the restrictions lapse.

All stock options granted under the Halliburton plan were granted at the fair market value of the common

stock on the date of grant. However, there were no Halliburton restricted shares granted to KBR

employees in 2024 or 2023 and no Halliburton options granted to KBR employees in 2024 or 2023.

Subsequent to our separation from Halliburton and as of 31 December 2024, UK KBR employees held no

unvested Halliburton restricted shares and no un-exercised Halliburton Options.

KBR Transitional Stock Adjustment Plan

The Transitional Stock Adjustment Plan provides for stock options to purchase KBR common stock and

for restricted shares of the Company's common stock that would be issued to holders of outstanding

options and restricted shares under the Halliburton 1993 Stock and Incentive Plan. The plan was adopted

solely for the purpose of converting Halliburton equity awards to KBR equity awards. No new awards can

be made under the plan. The converted equity awards are subject to substantially the same terms as they

were under the Halliburton 1993 Stock and Incentive Plan prior to conversion.

KBR 2006 Stock and Incentive Plan

In November 2006, KBR established the KBR 2006 Stock and Incentive Plan (the "KBR 2006 Plan")

which provides for the grant of the following types of share-based awards:

• Stock options, including incentive stock options and non-qualified stock options;

• Stock appreciation rights, in tandem with stock options or free standing;

• Restricted stock;

• Restricted stock units;

• Performance awards, and

• Stock value equivalent awards.


	- 40 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

26.Share-based payments (continued)

In accordance with the KBR 2006 Plan, effective as of the closing date of the 2006 KBR initial public

offering, stock options were granted; with an exercise price not less than the fair market value of the

common stock on the date of the grant and a term no greater than 10 years. The option terms and vesting

periods are established at the discretion of the Compensation Committee at the time of each grant.

Restricted shares were also issued under the KBR 2006 Plan. These shares carry restrictions that lapse

periodically over an extended period of time not exceeding 10 years. Restrictions may also lapse upon

qualifying retirement or in the presence of other conditions established under KBR's policies. Upon

retirement, unvested restricted shares must be returned, resulting in restricted stock forfeitures.

27.Called up share capital

Authorised share capital


	2024		2023
	No.	£	No.	£
Ordinary shares of £1 each	1,000,000	1,000,000	1,000,000	1,000,000

Issued, called up and fully paid


	2024		2023
	No.	£	No.	£
Ordinary shares of £1 each	91,095	91,095	91,095	91,095

28.Reserves

Share premium account - This reserve records the amount above the nominal value received for shares

sold, less transaction costs.

Share based payments contribution from ultimate parent - This reserve includes the amounts of the

Company’s ultimate parent’s shares issued to employees working for the Company.


	- 41 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

28.Reserves (continued)

Capital contribution from the parent - This is a reserve created through the cash contributions from the

parent, Kellogg Brown & Root Holdings (U.K.) Limited, to the Company.

Cash flow hedge reserve - This reserve comprises the effective portion of the cumulative net change in the

fair value of cash flow hedging instruments related to hedged transactions that have not yet occurred.

Profit and loss account - This reserve records retained earnings and accumulated losses.

29.Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:


	2024	2023
	£000	£000
Not later than 1 year	5,399	6,528
Later than 1 year and not later than 5 years	3,255	8,155
	8,654	14,683

The Company leases certain properties, transportation and general equipment on various non-cancellable

operating leases expiring between 2025 and 2026. The rental on such leases in 2024 was £6,345,188 (2023

- £6,274,000). The rents payable under these leases are subject to renegotiation at various intervals

specified in the lease agreements.

30.Related party transactions and balances

The key management personnel of the Company comprises its directors. Details of their remuneration are

provided in note 8.

As a subsidiary of KBR, Inc. the Company has taken advantage of the exemption of section 33 paragraph

33.1A of FRS 102 not to disclose transactions with other wholly owned members of the group headed by

KBR, Inc.

During the year transactions, in the ordinary course of business, were entered into with related parties.

Transactions entered into during 2024 are as follows:

Joint ventures of the company:


Related Party	Nature of Transaction	Profit and loss account (Credit)
		£000
Aspire Defence Limited	Services Rendered	(129)
Affinity Flying Training Services Limited	Services Rendered	(136)
	Interest Payable	215
KBS Maritime Ltd	Services Rendered	(2,113)
KBR NIPI LLP	Interest Received	(1)


	- 42 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

30.Related party transactions and balances (continued)

Joint ventures of affiliated KBR, Inc. companies:


Related Party	Nature of Transaction	Profit and loss account (Credit)
		£000
SOCAR KBR LLC	Services Rendered	(16,176)

Transactions entered into during 2023 are as follows:

Joint ventures of the company:


Related Party	Nature of Transaction	Profit and loss account (Credit)
		£000
Fasttrax Limited	Services Rendered	(239)
	Interest Received	(126)
Aspire Defence Limited	Services Rendered	(125)
Road Management Services (A13) PLC	Services Rendered	(102)
Affinity Flying Training Services Limited	Services Rendered	(136)
	Interest Received	(576)
	Interest payable	36
KBS Maritime Ltd	Services Rendered	(3,613)
	Interest Received	—

Joint ventures of affiliated KBR, Inc. companies:


Related Party	Nature of Transaction	Profit and loss account (Credit)
		£000
SOCAR KBR LLC	Services Rendered	(8,878)

The above billing amounts represent the amounts actually invoiced to related parties in the financial years

ended 2024 and 2023. The Company recognises revenues on long-term contracts in proportion to the

percentage of costs incurred to date compared to total estimated contract costs, and as such, the billing

amounts cannot be directly apportioned to the amounts recognised in the profit and loss account. All

transactions were recorded on an arm's length basis.

The above cost amounts represent the amounts actually invoiced by related parties in the financial year and

charged to the Income Statement.


	- 43 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

30.Related party transactions and balances (continued)

Balances with related parties as at 31 December 2024 are as follows:

Joint ventures of the company:


		Balance sheet Debit/(Credit)
		2024
		£000
Aspire Defence Limited	Joint Venture	(30)
Affinity Flying Training Services Limited	Joint Venture	(3,035)
KBS Maritime Ltd	Joint Venture	142
KBR NIPI LLP	Joint Venture	12

Joint ventures of affiliated KBR, Inc. companies:


		Balance sheet Debit
		2024
		£000
B7JV (U.K.) Limited	Joint Venture	32
SOCAR KBR LLC	Joint Venture	2,546

Balances with Related parties as at 31 December 2023 are as follows:

Joint ventures of the company:


		Balance sheet Debit/(Credit)
		2023
		£000
Fasttrax Limited	Joint Venture	655
Aspire Defence Limited	Joint Venture	(38)
Affinity Capital Works Limited	Joint Venture	(1,150)
Affinity Flying Training Services Limited	Joint Venture	(3,036)
KBS Maritime Ltd	Joint Venture	482
KBR NIPI LLP	Joint Venture	14


	- 44 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

30.Related party transactions and balances (continued)

Joint ventures of affiliated KBR, Inc. companies:


		Balance sheet Debit/(Credit)
		2023
		£000
B7JV (U.K.) Limited	Joint Venture	32
SOCAR KBR LLC	Joint Venture	2,059

31.Controlling party

The immediate parent company is Kellogg Brown & Root Holdings (U.K.) Limited (Hill Park Court,

Springfield Drive, Leatherhead, Surrey, KT22 7NL), a company registered in England and Wales.

Kellogg Brown & Root Holdings (U.K.) Limited is a wholly owned subsidiary undertaking of Kellogg

Brown & Root Holdings Limited (Hill Park Court, Springfield Drive, Leatherhead,Surrey, KT22 7NL), a

company registered in England and Wales, which heads the smallest group in which the company is

consolidated.

The ultimate parent company is KBR, Inc. (601 Jefferson Street, Suite 3400, Houston, Texas) incorporated

in the State of Delaware, U.S.A. which heads the largest group in which the company is consolidated.

The financial statements of these companies are available to the public and can be obtained from the Public

Relations Department,Hill Park Court , Springfield Drive, Leatherhead, Surrey, KT22 7NL.

32.Commitments

Capital commitments

There were no capital commitments outstanding as at 31 December 2024.

Non- Financial Guarantees

In 2024, the company held performance guarantees from Standard Chartered Bank, BNP Paribas and The

National Bank of Kuwait.

The guarantees amounted to £24,913,983 and had a maturity date of between 2025-2029.

33.Contingencies

There were no contingent assets or liabilities at the balance sheet date.

34.Events after the end of the reporting period

On 25 June 2025, KBR Property Holdings LP sold the freehold property at Leatherhead to the Company

for £45,577,842. The seller transferred the property with full title guarantee.


	- 45 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

34.Events after the end of the reporting period (continued)

On 6 January 2025, Kellogg Brown & Root Holdings (U.K.) Limited contributed a receivable loan amount

from Kellogg Brown & Root International Group Limited loan amount of £229,629,178 to the company in

consideration for the issuance of one additional ordinary share of £1.00 in itself to Kellogg Brown & Root

Holdings (U.K) Limited. A further amount was transferred on 26 June 2025 for £1,408,041 under these

same conditions.

There are no further events or items that require disclosure or adjustment in the financial statements.

35.List of subsidiaries and joint ventures

The following is a full list of subsidiaries and joint ventures, their country of incorporation and type of

issued security and the percentage of equity directly or indirectly owned by Kellogg Brown & Root

Limited as at 31 December 2024.


Subsidiary undertakings	Country of incorporation/ operations	Class of share	Percentage of shares held	Address **
Brown & Root Highlands Fabricators Limited*	Scotland	Ordinary	100%	7
Kellogg Brown & Root Overseas Projects Limited*	England & Wales	Ordinary	100%	1
Kellogg Brown & Root Group Limited	England & Wales	Ordinary	100%	1
Kellogg Brown & Root (Greenford) Limited*	England & Wales	Ordinary	100%	1
Kellogg Brown & Root International (MWK) Limited*	England & Wales	Ordinary	100%	1
Granherne Limited*	England & Wales	Ordinary	100%	1
Howard Humphreys & Partners Limited	England & Wales	Ordinary	100%	1
Overseas Supply Services Limited*	England & Wales	Ordinary	100%	9
Kellogg Brown & Root Projects Limited*	England & Wales	Ordinary	100%	1
KBR Arabia Limited*	Saudi Arabia	Ordinary	100%	12
Bonny 7 Project Management Company Limited*	England & Wales	Ordinary	100%	1
FTX Logistics Limited*	England & Wales	Ordinary	100%	1
AOC International Limited*	Scotland	Ordinary	100%	7


	- 46 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

35.List of subsidiaries and joint ventures (continued)


Subsidiary undertakings	Country of incorporation/ operations	Class of share	Percentage of shares held	Address **
AOC Nigeria Limited	Nigeria	Ordinary	100%	6
Aspire Defence Services Limited*	England & Wales	Ordinary	100%	3
Aspire Defence Capital Works JV	UK	Unincorporated	100%	3
Aspire Defence Services JV	UK	Unincorporated	100%	3
KBR (Aspire Construction) Holdings No.2 Limited*	England & Wales	Ordinary	100%	1
KBR (Aspire Construction) Holdings Limited	England & Wales	Ordinary	100%	1
KBR (Aspire Construction) Limited	England & Wales	Ordinary	100%	1
KBR (Aspire Construction Ventures) Limited	England & Wales	Ordinary	100%	1
KBR (Aspire Construction Ventures) Holdings Limited	England & Wales	Ordinary	100%	1
KBR (Aspire Construction Ventures) Holdings No. 2 Limited*	England & Wales	Ordinary	100%	1
KBR (Aspire Services) Holdings No.2 Limited*	England & Wales	Ordinary	100%	1
KBR (Aspire Services) Holdings Limited	England & Wales	Ordinary	100%	1
KBR (Aspire Services) Limited	England & Wales	Ordinary	100%	1
KBR (Aspire Services Ventures) Limited	England & Wales	Ordinary	100%	1
KBR (Aspire Services Ventures) Holdings Limited	England & Wales	Ordinary	100%	1
KBR (Aspire Services Ventures) Holdings No.2 Limited*	England & Wales	Ordinary	100%	1
KBR (U.K.) Investments Limited*	England & Wales	Ordinary	100%	1
Kellogg Brown & Root Trustees Limited	Scotland	Ordinary	100%	7
Howard Humphreys (Kenya) Limited*	Kenya	Ordinary	100%	5
Frazer-Nash Consultancy Limited*	England & Wales	Ordinary	100%	1
Harmonic Limited*	England & Wales	Ordinary	100%	1
Kellogg Brown & Root Limited-Azmi Abdullatif Abdulhadi and Abdullah Mahana Al-Moiabed*	Saudi Arabia	Ordinary	67%	10
KBR Al-Yusr Limited Company	Saudi Arabia	Ordinary	60%	10
VIMA Group Consultancy Limited	England & Wales	Ordinary	100%	16
VIMA Consultancy Limited	England & Wales	Ordinary	100%	16
VIMA Bristol Limited	England & Wales	Ordinary	100%	16
VIMA Group Services Limited	England & Wales	Ordinary	100%	16
EITEC Limited	England & Wales	Ordinary	100%	16
Bristol Management Centre Limited	England & Wales	Ordinary	100%	16


Fasttrax Holdings Limited*	England & Wales	Ordinary	100%	1
Fasttrax Limited	England & Wales	Ordinary	100%	1


Phoenix (U.K.) Fusion Limited *	England & Wales	Ordinary	100%	1


	- 47 -

Kellogg Brown & Root Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

35.List of subsidiaries and joint ventures (continued)


Joint Ventures	Country of incorporation/ operations	Class of share	Percentage of shares held	Address **


Aspire Defence Holdings Limited	England & Wales	Ordinary	45%	3
Aspire Defence Finance plc	England & Wales	Ordinary	45%	3
KBS Maritime Limited	England & Wales	Ordinary	50%	14
KBR NIPI LLP	Republic of Kazakhstan	Ordinary	50%	15


Trade Investments	Country of incorporation/ operations	Class of share	Percentage of shares held	Address **
MURA Technology Limited	England & Wales	Ordinary	17%	8

* Investment directly held by the company.

** Addresses of the subsidiaries and joint ventures are listed below:


1	Hill Park Court, Springfield Drive, Leatherhead, Surrey, United Kingdom, KT22 7NL
3	Aspire Business Centre, Ordnance Road, Tidworth, Wiltshire, United Kingdom, SP9 7QD
4	1 More London Place, London, United Kingdom, SE1 2AF
5	LR No 1870/1/569, 2nd Floor, Apollo Centre, Ring Road, Parklands, Westlands PO Box 764-00606, Nairobi, Kenya 764-00606, Kenya
6	Plot 90, Ajose Adeogun Street, Victoria Island, Lagos, Nigeria, Nigeria
7	13 Queens Road, Aberdeen, AB15 4YL, United Kingdom
8	141-145, Curtain Road, 3rd Floor, London, England, EC2A 3BX
9	Wing House Marlborough Road, Bulford Barracks, Salisbury, Wiltshire, England, SP4 9LZ
10	PO Box 31952, Al Damman Highway, Rakah, Al Khobar, Saudi Arabia, Saudi Arabia
12	Prince Turki Bin Abdulaziz Street, Al Khobar, Saudi Arabia
13	The Hatchery, Eaglewood Park, Ilminster, Somerset, TA19 9DQ
14	Victory Building (Pp72), Rm. 233 The Parade, Hm Naval Base, Portsmouth, England, PO1 3LS
15	38a mkr. 8 Aktau, R00D6E0 Kazakhstan
16	20-22 Wenlock Road, London, England, N1 7GU

For unincorporated joint ventures percentage of company's interest is shown.


Contents	Pages

Strategic report	1

Directors' report	6

Independent auditor's report to the member of Kellogg Brown & Root Limited	11

Income statement	15

Statement of comprehensive income	16

Statement of financial position	17

Statement of changes in equity	18

Notes to the financial statements	19