Parr Facilities Management Limited Company accounts

COMPANY REGISTRATION NUMBER: NI632852

Parr Facilities Management Limited

Financial Statements

31 December 2024

Parr Facilities Management Limited

Financial Statements

Year ended 31 December 2024

Contents	Page

Strategic report	1

Directors' report	5

Independent auditor's report to the members	7

Statement of income and retained earnings	11

Statement of financial position	12

Statement of cash flows	13

Notes to the financial statements	14

Parr Facilities Management Limited

Strategic Report

Year ended 31 December 2024

Review of the Company's Business The principal activities of the company is that of facilities management services across the UK and Ireland. 2024 witnessed the continued transition of the Group, with Parr FM at the heart of these changes. Organisational challenges prevented the subsumption of Parr Projects into the workings of the company during the year, however this remains the goal. Substantial management resource was invested throughout the latter part of the 2024 financial year (which has continued into 2025) to establish business processes and systems, and structures which are principally based around roles and responsibilities to effect greater monitoring and control. In 2024 the company progressed its five-year strategy to increase enterprise value, prioritising margin over pure revenue growth, and focusing on longer term recurring contracts, framework utilisation, proactive cross selling and technological efficiency. The strategy prioritises clients seeking total facilities management (TFM), those involved in PPP and PFI projects, those seeking fixed medium to long term contracts, and those involved in decarbonisation and net zero projects. Market engagement has focused on compiling early contract intelligence via relationships with project management contacts, developers and asset managers, and tendering followed up on a sector-specific basis. This has led to improvements with regard to opportunity identification and conversion. Consequently, the company continued its significant progress within the healthcare, commercial offices and corporate real estate, education and aviation and commercial transport sectors. Industry visibility has been enhanced through participation in key industry events, and concerted effort with regard to digital marketing - persistent posts on LinkedIn, for example, are achieving above industry-average engagement.

Key Performance Indicators The directors and their executive leadership team (ELT) monitor financial and non-financial indicators, including periodic reviews of financial information, customer satisfaction and supplier relationship health. The financial statements which follow show operating profit after interest of £137,349 (2023: profit £139,388) and shareholders' funds of £1,982,253 (2023: £1,877,820). Results are in line with expectations. Development, Performance and Position of the Company By the end of the 2024 financial year, the company was delivering services to 21 recognised 'blue-chip' clients. The development of stronger higher-margin relationships in greater numbers has enabled a leaner operational structure, and hence a reduction in the overall workforce of just shy of 20%. Healthcare was introduced as a client segment in 2023, and this year accounted for approximately 15% of revenue. Continued expansion within this sector has positioned it as a primary growth driver, with sales projected to represent 43% of total turnover by the close of 2025. Growth has also been realised through the extension of existing contracts and the successful acquisition of new, high-value work across other industry sectors. To meet increased demand and strengthen regional presence, a new office in the south of England was opened during the year and is now fully operational. A company-wide 'fit for purpose' review of operational systems and procedures was undertaken. This has resulted in the development of a detailed operational plan, with a focus on enhancing efficiency, improving process alignment with regulatory and industry standards, and supporting scalable growth. In parallel, workforce development initiatives have been reviewed and reinforced to ensure staff remain technically proficient and compliance conscious. These measures, taken collectively, demonstrate the company's strategic focus on operational resilience and long-term market positioning.

Principal Risks and Uncertainties The directors and ELT continue to monitor principal risks and uncertainties, not least: Business performance risk Business performance risk remains elevated given challenging market conditions, input cost inflation in materials and labour, and customer risk, with macro-political uncertainty following ongoing US macro-economic interventions and the ongoing war in Ukraine adding to this backdrop. Financial risk management The company's financial risk management centres on everyday instruments-cash, trade debtors and creditors, and balances with related undertakings-used to manage working capital and reinvestment in support of long-term viability; the Company does not use derivatives to minimise exposure to interest rates or foreign exchange. The company's operations expose it to a variety of financial risks that includes liquidity risk, interest rate risk, credit risk and foreign currency risk. The director and ELT review and agree policies for managing each of these risks, which are summarised below:

Liquidity and Cash flow risk Liquidity and cash flow are closely managed, with funding monitored and relationships maintained with funders to ensure adequate facilities for growth. Interest rate risk Interest-rate exposure is monitored by the directors, who will consider hedging if appropriate as funding levels increase. Credit risk Credit risk is mitigated through robust credit control, credit insurance where available, regular debtor reviews and provisioning for bad or doubtful debts as required. Foreign exchange risk While the company trades predominantly in sterling, it has receipts and payments in other currencies-principally euro-and seeks to balance these flows; as the business grows, forward buying and selling may be used where appropriate, and there were no such instruments in place at the financial year end.

Company strategy and Future developments The company’s strategic direction is underpinned by the establishment of the aforementioned ELT, operating under defined terms of reference. Supported by continued investment in talent, systems, and technology, their aim is to: - increase the proportion of longer term contracts which in turn will result in improved financial visibility; - continue the company's expansion into the lucrative healthcare sector; and - broaden the company's geographic footprint. Operational improvements include the implementation of a new accounting system, which integrates seamlessly with the company's CAFM platform. This will help to streamline what is currently senior-resource heavy financial control and reporting, and to introduce a suite of new KPIs, in turn promoting accountability and more informed decision-making. Supply chain strategy underpins delivery and growth - the company will focus on supplier consolidation, enhanced contractual controls, and improved data-driven decision-making. Client engagement will be enhanced by the designation of dedicated account managers, a job role which was identified as a priority when the revised organisational structure was devised and introduced. Marketing and industry visibility will increase through conference participation, national recognition awards, and strengthened digital marketing. Commercial focus will remain on high-margin work, recurring revenue streams and cross-selling opportunities within existing accounts. The company will continue to innovate and disrupt, research and pilot. Our integrated strategy, combining portfolio optimisation, operational strengthening, and targeted growth supports the director and ELT's commitment to long-term value creation and sustainable performance.

This report was approved by the board of directors on 26 September 2025 and signed on behalf of the board by:

Mr S Parr	Mr T Gillen
Director	Director

Mr P McGee	Miss J McIntrye
Director	Director

Registered office:

Suites 3 & 4

Fortwilliam House

Edgewater Road

Belfast

BT3 9JQ

Parr Facilities Management 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:

Mr S Parr
Mr P McGee	(Appointed 29 November 2024)
Miss J McIntrye	(Appointed 29 November 2024)
Mr C Coffey	(Resigned 2 August 2024)
Mr I Morley	(Resigned 2 August 2024)

Dividends

The directors do not recommend the payment of a dividend.

Disclosure of information in the strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Sch. 7 to the Large and Medium-sized Companies to be contained in the directors' report. It has done so in respect of future developments and financial risk management (credit risk, liquidity risk, foreign currency risk and cash flow risk).

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, 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 the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 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. The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

This report was approved by the board of directors on 26 September 2025 and signed on behalf of the board by:

Mr S Parr	Mr T Gillen
Director	Director

Mr P McGee	Miss J McIntrye
Director	Director

Registered office:

Suites 3 & 4

Fortwilliam House

Edgewater Road

Belfast

BT3 9JQ

Parr Facilities Management Limited

Independent Auditor's Report to the Members of Parr Facilities Management Limited

Year ended 31 December 2024

Opinion

We have audited the financial statements of Parr Facilities Management Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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. 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 or apparent material misstatements, 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 material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: -performed analytical procedures to identify any unusual or unexpected relationships; and - assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; and - enquiring of management as to actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report

This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

John Magee

(Senior Statutory Auditor)

For and on behalf of

Aubrey Campbell & Company

Chartered accountants & statutory auditor

631 Lisburn Road

Belfast

BT9 7GT

26 September 2025

Parr Facilities Management Limited

Statement of Income and Retained Earnings

Year ended 31 December 2024

		2024	2023
Note		£	£
Turnover	4	9,710,280	13,413,289

Cost of sales	7,009,102	10,033,490
	------------	-------------
Gross profit	2,701,178	3,379,799

Distribution costs		144,004	67,133
Administrative expenses		4,261,306	4,365,352
Other operating income	5	1,932,770	1,257,448
		------------	------------
Operating profit	6	228,638	204,762

Interest payable and similar expenses	10	91,289	65,374
		------------	------------
Profit before taxation		137,349	139,388

Tax on profit	11	32,916	43,170
		---------	---------
Profit for the financial year and total comprehensive income		104,433	96,218
		---------	---------

Retained earnings at the start of the year	1,877,720	1,781,502
	------------	------------
Retained earnings at the end of the year	1,982,153	1,877,720
	------------	------------

All the activities of the company are from continuing operations.

Parr Facilities Management Limited

Statement of Financial Position

31 December 2024

	2024	2023
Note	£	£

Fixed assets

Tangible assets	12	606,045	404,459

Current assets

Stocks	13	1,898,884	1,339,369
Debtors	14	4,543,147	5,525,357
Cash at bank and in hand		84,883	7,272
		------------	------------
		6,526,914	6,871,998

Creditors: amounts falling due within one year	16	4,595,215	4,888,024
		------------	------------
Net current assets		1,931,699	1,983,974
		------------	------------
Total assets less current liabilities		2,537,744	2,388,433

Creditors: amounts falling due after more than one year	17	456,630	444,668

Provisions	19	98,861	65,945
		------------	------------
Net assets		1,982,253	1,877,820
		------------	------------

Capital and reserves

Called up share capital	22	100	100
Profit and loss account		1,982,153	1,877,720
		------------	------------
Shareholders funds		1,982,253	1,877,820
		------------	------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 26 September 2025 , and are signed on behalf of the board by:

Mr S Parr	Mr T Gillen
Director	Director

Mr P McGee	Miss J McIntrye
Director	Director

Company registration number: NI632852

Parr Facilities Management Limited

Statement of Cash Flows

Year ended 31 December 2024

	2024	2023
Note	£	£

Cash flows from operating activities

Profit for the financial year	104,433	96,218

Adjustments for:
Depreciation of tangible assets	117,816	57,542
Interest payable and similar expenses	91,289	65,374
Loss on disposal of tangible assets	29,538	13,780
Tax on profit	32,916	43,170
Accrued (income)/expenses	( 104,558)	162,119

Changes in:
Stocks	( 559,515)	( 379,426)
Trade and other debtors	982,210	( 1,845,336)
Trade and other creditors	( 8,720)	1,439,901
	---------	------------
Cash generated from operations	685,409	( 346,658)

Interest paid	( 91,289)	( 65,374)
Tax paid	–	( 18,470)
	---------	---------
Net cash from/(used in) operating activities	594,120	( 430,502)
	---------	---------

Cash flows from investing activities

Purchase of tangible assets	( 357,120)	( 370,222)
Proceeds from sale of tangible assets	8,180	( 1)
	---------	---------
Net cash used in investing activities	( 348,940)	( 370,223)
	---------	---------

Cash flows from financing activities

Proceeds from borrowings	( 119,068)	( 98,937)
Proceeds from loans from group undertakings	52,384	( 10,850)
Proceeds from loans from participating interests	5,000	–
Payments of finance lease liabilities	195,072	306,657
	---------	---------
Net cash from financing activities	133,388	196,870
	---------	---------

Net increase/(decrease) in cash and cash equivalents		378,568	( 603,855)
Cash and cash equivalents at beginning of year		(1,063,673)	(459,818)
		------------	------------
Cash and cash equivalents at end of year	15	( 685,105)	( 1,063,673)
		------------	------------

Parr Facilities Management Limited

Notes to the Financial Statements

Year ended 31 December 2024

1. General information

The company is a private company limited by shares, registered in Northern Ireland. The address of the registered office is Suites 3 & 4, Fortwilliam House, Edgewater Road, Belfast, BT3 9JQ.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

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 investment properties measured at fair value through profit or loss.

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

Going concern

The company returned pre-tax profits of £137,349 (2023: £139,388) from continuing operations and ended the period in a net asset position of £1,982,253 (2023: £1,877,820). The results reflect the concerted effort made by the company to take account of a £3M reduction in revenues and management charges, by cutting direct costs. The company's ability to return profit justifies the determination shown by the leadership team in continuing to formally adapt and develop existing structures, processes and procedures and establishing any necessary new ones (such as the creation of the Executive Leadership Team (ELT)), and to assess the value of current engagements and carefully target more valuable, longer term relationships. Although there are some significant year on year variances within working capital categories, the overall net current asset position of the company has only marginally decreased, from £1.98M in 2023 to £1.93M in 2024. Specifically, the ELT are conscious of the growing 'work in progress' balance, and have concentrated post year end on converting this, via invoicing and subsequent cash collection. It is also notable that the company's reliance on bank funding has somewhat reduced in terms of the company's various term loans and invoice discounting facility. Taking account of the above, in conjunction with apparent improvements in trading performance post year end, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company, therefore, continues to adopt the going concern basis in preparing its financial statements.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. Going concern In order to assess whether it is appropriate for the company to be reported as a going concern, the directors apply judgement, having undertaken appropriate enquiries and having considered the business activities and the company's principal risks and uncertainties. In arriving at this judgement there are a large number of assumptions and estimates involved. This includes management's expectations of revenue, EBITDA, timing and quantum of future capital expenditure and estimates and cost of future funding. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Provision for bad or doubtful debts The company has significant trade debtor balances from a large number of customers at any given point in time and further to that, significant debtor balances from related party entities. Consequently estimating the required provision for such debtors requires a regular review to identify those entities where events (either historical or current) give management an indication that future collectability may be uncertain .

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

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.

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.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

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:

Fixtures and fittings	-	20% reducing balance
Motor vehicles	-	20% reducing balance

Impairment of fixed assets

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. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units .

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. Work in progress includes labour and attributable overheads.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

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.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

4. Turnover

An analysis of turnover by class of business and geographical market is not given as, in the opinion of the directors, this would be seriously prejudicial to the company's interest.

5. Other operating income

	2024	2023
	£	£
Management charges receivable	1,929,770	1,194,724
Other operating income	3,000	62,724
	------------	------------
	1,932,770	1,257,448
	------------	------------

6. Operating profit

Operating profit or loss is stated after charging/crediting:

	2024	2023
	£	£
Depreciation of tangible assets	117,816	57,542
Loss on disposal of tangible assets	29,538	13,780
Impairment of trade debtors	(10,215)	–
Foreign exchange differences	11,274	5,546
	---------	--------

7. Auditor's remuneration

	2024	2023
	£	£
Fees payable for the audit of the financial statements	12,500	7,250
	--------	-------

8. 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	82	72
Administrative staff	48	90
Management staff	3	3
	----	----
	133	165
	----	----

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

	2024	2023
	£	£
Wages and salaries	5,466,618	6,223,627
Social security costs	516,476	580,722
	------------	------------
	5,983,094	6,804,349
	------------	------------

9. Directors' remuneration

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

	2024	2023
	£	£
Remuneration	38,335	102,049
	--------	---------

10. Interest payable and similar expenses

	2024	2023
	£	£
Interest on banks loans and overdrafts	21,021	24,296
Interest on obligations under finance leases and hire purchase contracts	36,067	18,195
Other interest payable and similar charges	34,201	22,883
	--------	--------
	91,289	65,374
	--------	--------

11. Tax on profit

Major components of tax expense

	2024	2023
	£	£

Current tax:

Adjustments in respect of prior periods	–	3,615

Deferred tax:

Origination and reversal of timing differences	32,916	39,555
	--------	--------
Tax on profit	32,916	43,170
	--------	--------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is lower than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 23.40 %).

	2024	2023
	£	£
Profit on ordinary activities before taxation	137,349	139,388
	---------	---------
Profit on ordinary activities by rate of tax	34,337	32,617
Adjustment to tax charge in respect of prior periods	–	3,615
Effect of expenses not deductible for tax purposes	8,008	7,631
Effect of capital allowances and depreciation	( 27,669)	( 21,765)
Unused tax losses	18,240	21,072
	---------	---------
Tax on profit	32,916	43,170
	---------	---------

12. Tangible assets

	Fixtures and fittings	Motor vehicles	Total
	£	£	£
Cost
At 1 January 2024	37,807	570,045	607,852
Additions	–	357,120	357,120
Disposals	–	( 91,367)	( 91,367)
	--------	---------	---------
At 31 December 2024	37,807	835,798	873,605
	--------	---------	---------
Depreciation
At 1 January 2024	21,053	182,340	203,393
Charge for the year	3,350	114,466	117,816
Disposals	–	( 53,649)	( 53,649)
	--------	---------	---------
At 31 December 2024	24,403	243,157	267,560
	--------	---------	---------
Carrying amount
At 31 December 2024	13,404	592,641	606,045
	--------	---------	---------
At 31 December 2023	16,754	387,705	404,459
	--------	---------	---------

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Motor vehicles
	£
At 31 December 2024	565,027
	---------
At 31 December 2023	349,917
	---------

13. Stocks

	2024	2023
	£	£
Work in progress	1,898,884	1,339,369
	------------	------------

14. Debtors

	2024	2023
	£	£
Trade debtors	2,742,161	4,267,342
Amounts owed by group undertakings	1,729,939	1,103,562
Prepayments and accrued income	69,246	62,075
Other debtors	1,801	92,378
	------------	------------
	4,543,147	5,525,357
	------------	------------

Included in trade debtors at the year end is £1,864,267(2023: £3,124,901) in relation to an invoice discounting facility .

15. Cash and cash equivalents

Cash and cash equivalents comprise the following:

	2024	2023
	£	£
Cash at bank and in hand	84,883	7,272
Bank overdrafts	( 769,988)	( 1,070,945)
	---------	------------
	( 685,105)	( 1,063,673)
	---------	------------

16. Creditors: amounts falling due within one year

	2024	2023
	£	£
Bank loans and overdrafts	883,049	1,173,134
Trade creditors	1,069,301	1,808,246
Amounts owed to group undertakings	176,483	124,099
Amounts owed to undertakings in which the company has a participating interest	5,000	–
Accruals and deferred income	72,252	176,810
Corporation tax	21,333	21,333
Social security and other taxes	2,168,889	1,377,507
Obligations under finance leases and hire purchase contracts	132,139	78,969
Other creditors	66,769	127,926
	------------	------------
	4,595,215	4,888,024
	------------	------------

Danske Bank Limited holds a charge over all the assets and undertaking of the company, containing a fixed charge, floating charge and negative pledge. The company has provided security in the form of an inter-company cross guarantee in favour of SPE Contracts Limited, a related party .

17. Creditors: amounts falling due after more than one year

	2024	2023
	£	£
Bank loans and overdrafts	48,289	178,229
Obligations under finance leases and hire purchase contracts	408,341	266,439
	---------	---------
	456,630	444,668
	---------	---------

18. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	2024	2023
	£	£
Not later than 1 year	132,139	78,969
Later than 1 year and not later than 5 years	408,341	266,439
	---------	---------
	540,480	345,408
	---------	---------

19. Provisions

	Deferred tax (note 20)
	£
At 1 January 2024	65,945
Additions	32,916
	--------
At 31 December 2024	98,861
	--------

20. Deferred tax

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

	2024	2023
	£	£
Included in provisions (note 19)	98,861	65,945
	--------	--------

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

	2024	2023
	£	£
Accelerated capital allowances	98,861	65,945
	--------	--------

21. Financial instruments

The carrying amount for each category of financial instrument is as follows:

	2024	2023
	£	£

Financial assets that are debt instruments measured at amortised cost

Financial assets that are debt instruments measured at amortised cost	4,473,901	5,463,282
	------------	------------

Financial liabilities measured at amortised cost

Financial liabilities measured at amortised cost	2,861,623	3,933,852
	------------	------------

22. Called up share capital

Issued, called up and fully paid

	2024		2023
	No.	£	No.	£
A Ordinary shares of £ 1 each	100	100	100	100
	----	----	----	----

23. Analysis of changes in net debt

	At 1 Jan 2024	Cash flows	At 31 Dec 2024
	£	£	£
Cash at bank and in hand	7,272	77,611	84,883
Bank overdrafts	(1,070,945)	300,957	(769,988)
Debt due within one year	(305,257)	(121,426)	(426,683)
Debt due after one year	(444,668)	(11,962)	(456,630)
	------------	---------	------------
	( 1,813,598)	245,180	( 1,568,418)
	------------	---------	------------

24. Operating leases

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

	2024	2023
	£	£
Not later than 1 year	311,760	311,760
Later than 1 year and not later than 5 years	–	311,760
	---------	---------
	311,760	623,520
	---------	---------

25. Related party transactions

The company owed £176,483 (2023: £124,099) to its parent undertaking at the balance sheet date. During the year the company paid rent to its parent undertaking of £nil (2023: £35,000) and received management income of £nil (2023: £17,475). Conversely the company was owed £ 87,725 (2023: £ 116,459 ) by its fellow subsidiary, SPE Contracts Limited . During the year the company received management income of £ 130,000 from SPE Contracts Limited (2023: £nil). The company was also owed £ 1,642,214 (2023 £ 987,103 ) by its fellow subsidiary, Parr Projects Limited . During the year the company received management income of £ 1,799,770 from Parr Projects Limited (2023: £ 1,177,249 ). The company owed £5,000 to Hargan Homes Limited at the balance sheet date (2023:£5,000), a company under common control of key management. All amounts are repayable on demand. Note that key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the company, either directly or indirectly. Compensation paid to key management personnel, which includes all employee benefits, in the period was £90,908 (2023: £163,022).

26. Controlling party

The company regards Parr Group Limited as its parent company . The company's ultimate parent undertaking is Parr Group Limited. The address of Parr Group Limited is Suites 3 & 4, Fortwilliam House, Edgewater Road, Belfast, BT3 9JQ. Parr Group Limited is the controlling party. Stephen Parr is the ultimate controlling party by virtue of his shareholding in Parr Group Limited. The parent of the largest group in which the results are consolidated is Parr Group Limited . Parr Group Limited is registered in Northern Ireland.