ACCOUNTS - Final Accounts preparation

Analysis of the maturity of loans is given below:

Unaudited 2023

Registered number: 04344970

ADVANCED WATER TECHNOLOGIES LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 31 DECEMBER 2024

ADVANCED WATER TECHNOLOGIES LIMITED

REGISTERED NUMBER:04344970

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2024

		2024		Unaudited 2023
Note		£		£

Fixed assets
Intangible assets	5		465,289		244,279
Tangible assets	6		305,708		437,114
Investments	7		-		361,051
			770,997		1,042,444
Current assets
Stocks	8	372,874		299,000
Debtors: amounts falling due within one year	9	2,084,154		2,097,867
Cash at bank and in hand	10	432,002		353,459
		2,889,030		2,750,326
Creditors: amounts falling due within one year	11	(1,859,499)		(1,789,630)
Net current assets			1,029,531		960,696
Total assets less current liabilities			1,800,528		2,003,140
Creditors: amounts falling due after more than one year	12		(8,716)		(18,750)
Provisions for liabilities
Deferred tax	15		(73,970)		(108,355)
Net assets			1,717,842		1,876,035

Capital and reserves
Called up share capital	16	200	200
Share premium account		35,870	35,870
Profit and loss account		1,681,772	1,839,965
		1,717,842	1,876,035

Page 1

ADVANCED WATER TECHNOLOGIES LIMITED

REGISTERED NUMBER:04344970

STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 DECEMBER 2024

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

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

Gavin Michael Hartley

Director

Date: 28 September 2025

The notes on pages 4 to 17 form part of these financial statements.

Page 2

ADVANCED WATER TECHNOLOGIES LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Share premium account	Profit and loss account	Total equity
	£	£	£	£
At 1 January 2024 (unaudited)	200	35,870	1,839,965	1,876,035
Comprehensive income for the year
Profit for the year	-	-	703,807	703,807
Total comprehensive income for the year	-	-	703,807	703,807
Contributions by and distributions to owners
Dividends: Equity capital	-	-	(862,000)	(862,000)
Total transactions with owners	-	-	(862,000)	(862,000)
At 31 December 2024	200	35,870	1,681,772	1,717,842

The notes on pages 4 to 17 form part of these financial statements.

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2023

	Called up share capital	Share premium account	Profit and loss account	Total equity
	£	£	£	£
At 1 January 2023 (unaudited)	200	35,870	992,503	1,028,573
Comprehensive income for the year
Profit for the year	-	-	1,253,362	1,253,362
Total comprehensive income for the year	-	-	1,253,362	1,253,362
Contributions by and distributions to owners
Dividends: Equity capital	-	-	(405,900)	(405,900)
Total transactions with owners	-	-	(405,900)	(405,900)
At 31 December 2023 (unaudited)	200	35,870	1,839,965	1,876,035

The notes on pages 4 to 17 form part of these financial statements.

Page 3

ADVANCED WATER TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	GENERAL INFORMATION

Advanced Water Technologies Limited is a private company limited by shares incorporated in England and Wales. The registered office is Alton House, Alton Road, Ross-on-Wye, Herefordshire, HR9 5BP.

2.ACCOUNTING POLICIES

2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

The functional and presentation currency for the Company during the year was GBP and the accounts are rounded to the nearest GBP.

The following principal accounting policies have been applied:

2.2

FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of HSL Compliance Holdings Limited as at 31st December 2024 and these financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ .

2.3

GOING CONCERN

In light of the Group and Company forecasts prepared, the Board of Directors remain of the view that the forecasts are achievable and that the headroom within these forecasts and the continued support from Group should be sufficient to enable the Company to operate and meet its liabilities as they fall due for payment for at least the next twelve months after the signing of the accounts. The Directors therefore continue to adopt the going concern basis in preparing the financial statements.

Page 4

ADVANCED WATER TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.4

REVENUE

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

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

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

∙the amount of revenue can be measured reliably;

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

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

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

2.5

OPERATING LEASES: THE COMPANY AS LESSEE

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

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

2.6

LEASED ASSETS: THE COMPANY AS LESSEE

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

2.7

INTEREST INCOME

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

Page 5

ADVANCED WATER TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.8

FINANCE COSTS

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

2.9

BORROWING COSTS

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

2.10

PENSIONS

DEFINED CONTRIBUTION PENSION PLAN

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

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

2.11

CURRENT AND DEFERRED TAXATION

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

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

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

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

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

Page 6

ADVANCED WATER TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.12

INTANGIBLE ASSETS

GOODWILL

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over its useful economic life.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

The estimated useful lives range as follows:

Goodwill

years

2.13

TANGIBLE FIXED ASSETS

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using both a straight line and reducing balance basis, depending on the class of asset.

Depreciation is provided on the following basis:

Long-term leasehold property	-	20%	on cost
Plant and machinery	-	20%	reducing balance
Motor vehicles	-	25%	reducing balance
Fixtures and fittings	-	20%	reducing balance
Office equipment	-	33%	on cost

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

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

2.14

VALUATION OF INVESTMENTS

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Page 7

ADVANCED WATER TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.15

STOCKS

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.16

DEBTORS

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

2.17

CASH AND CASH EQUIVALENTS

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

2.18

CREDITORS

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

2.19

FINANCIAL INSTRUMENTS

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date.

Page 8

ADVANCED WATER TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.19

FINANCIAL INSTRUMENTS (CONTINUED)

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

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

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

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

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

2.20

DIVIDENDS

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 9

ADVANCED WATER TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

3.	JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Estimates are based on historical experience and other assumptions that are considered reasonable in the circumstances. The actual amount or values may vary in certain instances from the assumptions and estimates made. Changes will be recorded, with corresponding effect in the financial statements, when, and if, better information is obtained.

Critical judgements and sources of estimation uncertainty that management have made in the process of applying accounting policies disclosed herein and that have a significant effect on the amounts recognised in the financial statements relate to the following:

Estimates

Impairment - Intangible assets

The company determines whether intangible assets are impaired on an annual basis or otherwise when changes in events or situations indicate that the carrying value may not be recoverable. This requires an estimation of the recoverable amount of the cash generating unit to which the assets are allocated.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). A fair value less costs to sell model, based on available market information, is utilised in assessing the recoverable amount with any impairment recognised when the recoverable amount is lower than the carrying amount.

Contingent and deferred consideration

As part of the acquisition process, a forecast is prepared which projects the financial performance of the business over the expected earn-out period. These forecasts are reviewed and updated based on actual performance. Part of the cost of the acquisition is sometimes dependent on the trading performance of the acquired business following the transaction. The contingent consideration is based on these estimates of the future performance of the acquired business at the date of acquisition and is recorded as a financial liability reflecting the time value of money.

Revenue recognition

Key judgements are made on the percentage stage of completion with the maintenance and project style work which are in progress and are assessed by operational management in line with the revenue recognition policy.

EMPLOYEES

The average monthly number of employees, including directors, during the year was 81 (2023:61).

Page 10

ADVANCED WATER TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

5.	INTANGIBLE ASSETS

		Goodwill
		£
	COST
	At 1 January 2024 (unaudited)	283,729
	Additions	277,091
	At 31 December 2024	560,820
	AMORTISATION
	At 1 January 2024 (unaudited)	39,450
	Charge for the year on owned assets	56,081
	At 31 December 2024	95,531
	NET BOOK VALUE
	At 31 December 2024	465,289
	At 31 December 2023 (unaudited)	244,279

On 31 March 2024, S P Environmental Services hived up its trade and assets to Advanced Water Technologies. As a result, goodwill has been introduced on the balance sheet in accordance with hive up accounting under FRS102.

Page 11

		ADVANCED WATER TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

	6.	TANGIBLE FIXED ASSETS

	Long-term leasehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Office equipment	Total
	£	£	£	£	£	£
COST OR VALUATION
At 1 January 2024 (unaudited)	41,056	11,950	582,823	116,175	83,739	835,743
Additions	-	-	29,700	24,337	14,674	68,711
Disposals	-	-	(193,604)	-	-	(193,604)
At 31 December 2024	41,056	11,950	418,919	140,512	98,413	710,850
DEPRECIATION
At 1 January 2024 (unaudited)	41,055	6,542	240,388	47,704	62,940	398,629
Charge for the year on owned assets	-	1,081	66,293	18,500	18,799	104,673
Charge for the year on financed assets	-	-	3,825	-	-	3,825
Disposals	-	-	(101,985)	-	-	(101,985)
At 31 December 2024	41,055	7,623	208,521	66,204	81,739	405,142
NET BOOK VALUE
At 31 December 2024	1	4,327	210,398	74,308	16,674	305,708
At 31 December 2023 (unaudited)	1	5,408	342,435	68,471	20,799	437,114

Page 12

ADVANCED WATER TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

6.TANGIBLE FIXED ASSETS (CONTINUED)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2024	2023
	£	£


Motor vehicles	11,475	-
	11,475	-

7.	FIXED ASSET INVESTMENTS

		Investments in subsidiary companies
		£

	At 1 January 2024 (unaudited)	361,051
	Disposals	(361,051)
	At 31 December 2024	-

8.	STOCKS
		2024	Unaudited 2023
		£	£

	Raw materials and consumables	372,874	299,000

DEBTORS

					2024	Unaudited 2023
					£	£


Trade debtors	1,921,658	1,905,058
Other debtors	70,568	134,601
Prepayments and accrued income	91,928	58,208
	2,084,154	2,097,867

Page 13

ADVANCED WATER TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

10.	CASH AND CASH EQUIVALENTS
		2024	Unaudited 2023
		£	£

	Cash at bank and in hand	432,002	353,459

11.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
		2024	Unaudited 2023
		£	£

Bank loans	-	45,000
Trade creditors	891,043	768,188
Amounts owed to group undertakings	28,458	10,091
Corporation tax	167,479	364,681
Other taxation and social security	497,027	347,892
Obligations under finance lease and hire purchase contracts	3,934	-
Other creditors	31,153	169,583
Accruals and deferred income	240,405	84,195
	1,859,499	1,789,630

Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

12.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
		2024	Unaudited 2023
		£	£

Bank loans	-	18,750
Net obligations under finance leases and hire purchase contracts	8,716	-

Page 14

ADVANCED WATER TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans	-	45,000
AMOUNTS FALLING DUE 1-2 YEARS
Bank loans	-	18,750


	-	63,750

The bank loan was secured by a fixed and floating charge over the Company's assets. This Bank loan was a Covid Bounce Back Loan which was repaid early as part of the HSL takeover.

Within one year	3,934	-
Between 1-5 years	8,716	-
	12,650	-

Hire purchase liabilities are secured over the assets which they relate to.

15.	DEFERRED TAXATION

		2024
		£

	At beginning of year	(108,355)
	Charged to profit or loss	34,385
	AT END OF YEAR	(73,970)

Page 15

ADVANCED WATER TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

15.DEFERRED TAXATION (CONTINUED)

The provision for deferred taxation is made up as follows:
	2024	Unaudited 2023
	£	£

	Accelerated capital allowances	(73,970)	(108,355)
		(73,970)	(108,355)

16.	SHARE CAPITAL
		2024	Unaudited 2023
		£	£

ALLOTTED, CALLED UP AND FULLY PAID

2,000 (2023:2,000) Ordinary shares of £0.10 each	200	200

17.	PENSION COMMITMENTS

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £197,315 (2023: £91,992). Contributions totalling £22,965 (2023: £9,517) were payable to the fund at the balance sheet date and were included in creditors.

18.	RELATED PARTY TRANSACTIONS
	The Company's immediate parent company is HSL Compliance Holdings Limited, which prepares group financial statements. Its registered office is Alton House, Alton Road, Ross-on-Wye, Herefordshire, HR9 5BP. The Company has taken advantage of the exemption under FRS 102 from disclosing transactions with other wholly owned group companies.

19.	POST BALANCE SHEET EVENTS

HSL Compliance Group Limited prepares financial statements into which the results of the Company are consolidated. On 28 March 2025, 100% of the ordinary share capital of HSL Compliance Group Limited was purchased by Mariner Bidco Limited, an investment holding company ultimately controlled by IK Investment Partners AIFM, a private limited liability company incorporated in Luxembourg which acts as manager of the IK Small Cap III Fund No.1 SCSp and IK Small Cap III Fund No.2 SCSp.
The controlling party note reflects the above change in ultimate controlling party.

Page 16

ADVANCED WATER TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

20.	CONTROLLING PARTY

The immediate parent undertaking is HSL Compliance Holdings Limited.
The smallest group to consolidate these financial statements is HSL Compliance Group Limited, a company registered in England and Wales at Alton House Alton Business Park, Alton Road, Ross-On-Wye, Herefordshire, United Kingdom, HR9 5BP.
The largest group to consolidate these financial statements is Mariner Topco Limited, a company registered in England and Wales at Alton House Alton Business Park, Alton Road, Ross-On-Wye, Herefordshire, United Kingdom, HR9 5BP.
The ultimate controlling party is IK Investment Partners AIFM, a private limited liability company incorporated in Luxembourg which acts as manager of the IK Small Cap III Fund No.1 SCSp and IK Small Cap III Fund No.2 SCSp.

21.	AUDITORS' INFORMATION

The auditors' report on the financial statements for the year ended 31 December 2024 was qualified.

The qualification in the audit report was as follows:

The audit opinion was qualified due to a limitation in the the scope of the audit. Due to the date of our appointment, we were unable to attend a physcial stock count at the balance sheet date or at the end of the prior year, 31 December 2023, which formed the closing and opening stock balances for the current year.
We have been unable to satisfy ourselves through other audit procedures whether the stock quantities held in the company financial statements at 31 December 2024 valued at £372,874 and 31 December 2023 valued at £299,000, were materially correct, together which any consequential impact on the Statement of Financial Position.
In our opinion, except for the possible effects of the matter described above, 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; and

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

The audit report was signed on 30 September 2025 by David Butler FCA (Senior statutory auditor) on behalf of Bishop Fleming Audit Limited.

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