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Registration number: 13152619

ABEC (Group) Ltd

Annual Report and Consolidated Financial Statements

for the Year Ended 31 March 2025

 

ABEC (Group) Ltd

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 9

Consolidated Profit and Loss Account

10

Consolidated Statement of Comprehensive Income

11

Consolidated Balance Sheet

12

Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Statement of Changes in Equity

15

Consolidated Statement of Cash Flows

16

Notes to the Financial Statements

17 to 33

 

ABEC (Group) Ltd

Company Information

Directors

M Morrall

M Litten

A Shaw

Registered office

7 Miller Court
Severn Drive
Tewkesbury Business Park
Tewkesbury
Gloucestershire
GL20 8DN

Auditors

Hazlewoods LLP Staverton Court
Staverton
Cheltenham
GL51 0UX

 

ABEC (Group) Ltd

Strategic Report for the Year Ended 31 March 2025

The directors present their strategic report on ABEC (Group) Limited (the 'Company') and its subsidiaries (together the 'Group') for the year ended 31 March 2025.

Principal activity

The principal activity of the group is the design, installation and commissioning of heating, ventilation and air conditioning control systems.

Fair review of the business

The Group specialises in the installation and maintenance of building management systems (‘BMS’) and electrical power monitoring systems (‘EPMS’) with a particular focus on critical infrastructure such as data centres as well as other commercial buildings. BMS are computer based control systems used to monitor and manage a buildings essential services such as lighting, power and heating. EPMS are systems designed to measure and monitor energy usage, providing insights into the health and stability of an electrical network.

The Group has a global footprint with current operations and customers located in the UK, Europe and the Middle East. Specific services primarily include the design, specification, installation and commissioning of BMS, EPMS and SMART systems. Services such as maintenance contracts, repairs, retrofit & enhancements, software licensing and other energy consultancy are also provided.

The Group had a very strong year with growth of 80%, resulting in revenues of £32.7m (2024: £18.1m) and EBITDA of £4.7m (2024: £1.2m). EBITDA margin increased by 7.9ppt to 14.3% (2024: 6.4%) partly due to one-off gross margin items and also some investment in overhead to support further planned growth in 2025.

The Group has experienced significant revenue growth in the period through existing client relationships and some new client wins. International revenues have grown strongly with live projects across numerous European countries. As at year end the sales pipeline is strong which means the Group are expecting a continuation of growth in the coming year with increased customer demand, increasing market share and particular growth in the data centre space. Expansion into further new territories across Europe and the Middle East is planned.


Financial key performance indicators
The Group uses the following key performance indicators:

Revenue £; EBITDA; EBITDA %; and net current assets.

- Group revenue increased by 80% to £32.7m (2024: £18.1m).
- Reported EBITDA increased by £3.5m to £4.7m in 2025 (2024: £1.2m).
- EBITDA % increased by 7.9ppt to 14.3% in 2025 (2024: 6.4%).
- Net current assets increased by £3.6m to £5.2m (2024: £1.6m).

The Group also monitors Adjusted EBITDA as a key measure of underlying performance of the business and notes that there are some one-off items negatively impacting Adjusted EBITDA in 2025, although these have not been disclosed separately in the financial statements.

 

ABEC (Group) Ltd

Strategic Report for the Year Ended 31 March 2025

Principal risks and uncertainties

The Group is exposed to the following risks and uncertainties:

Volatility and operational risk
The UK, Europe and the Middle East where the Group operates are currently subject to a degree of volatility and uncertainty caused by a number of factors including labour constraints, supply chain cost inflation and disruptions, and the ongoing conflicts in Ukraine and Israel. These risks are assessed and carefully monitored by the senior management team on an ongoing basis.

Financial risks
Credit risk
The Group is exposed to certain financial risks related to customer payment cycles and potential bad debts. The Group has a diverse range of blue chip clients in terms of size and industry segment as well as a robust credit control policy. The cash position at the year end is strong and carefully monitored in order to manage any such risks.

Foreign exchange risk
The company is exposed to currency risk as a result of its operations generating some revenues in foreign currencies (primarily Euros and Qatari Riyal). The majority of the Group’s costs arise in sterling, with a less significant level of costs in other currencies. This foreign currency exposure is closely monitored and reviewed by the business.

Future developments

The business has a strong balance sheet which enables continued growth in the medium to long term. The outlook for the following year remains positive as we continue to service our existing customer base.

Research and development

The Group continues to undertake research and development activities in the BMS and related services field by developing new and novel systems and service offerings to keep pace with increasingly complex technologies as buildings become smarter and the importance of energy efficiency grows.

Approved by the Board on 27 October 2025 and signed on its behalf by:


A Shaw
Chief Financial Officer

 

ABEC (Group) Ltd

Directors' Report for the Year Ended 31 March 2025

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

Directors of the company

The directors who held office during the year were as follows:

M Morrall

M Litten

A Shaw (appointed 3 January 2025)

Financial instruments

Objectives and policies

The directors have close involvement in the day to day running of the business and, as such, have detailed knowledge of the financial risks of the business. The objectives of financial risk management are to ensure the company has sufficient working capital and resources to be able to continue the business' growth strategy. The directors have put in systems and controls which monitor financial risk and highlight when potential issues may occur. Management have a good attitude towards financial risk and a detailed knowledge of the business and industry.

Price risk, credit risk, liquidity risk and cash flow risk

Price risk
Through careful monitoring of the company’s market place and competitors the company’s exposure to price risk is kept to a minimum.

Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Group policies are aimed at minimizing such losses by adopting strict credit worthiness procedures and monitoring customer payment histories. The company has a large customer base of varying size and risk which covers a large geographical area and therefore minimizes the impact should a customer default on its terms.

Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The group aims to mitigate liquidity risk by managing cash generation by its operations.

Cash flow risk
Cash flow risk is the risk that inflows and outflows of cash and cash equivalents will not be sufficient to finance day-to-day operations of the group. The group manages cash flow by careful negotiation of terms with customers and suppliers to maintain available funds to meet its liabilities as they fall due.

Going concern

The directors have prepared cash flow forecasts for the group for more than 12 months from the approval of the financial statements. After reviewing the group’s forecasts the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors therefore consider it appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustment that would result from insufficient facilities being made available to the group.

Information included in the Strategic Report

The group's business environment and risks, together with details of monitoring undertaken by the directors and future developments are dealt with elsewhere in the strategic report.

Important non adjusting events after the financial period

Subsequent to the year end, the group received external investment from funds advised by Magnesium Capital LLP. This was primarily in order to fund the future growth of the business. The transaction was facilitated by way of the incorporation of two new entities Acorn Top Co Limited and Acorn Bid Co Limited. ABEC (Group) Ltd was acquired by Acorn Bid Co Limited and the transaction completed on 5th June 2025. The ultimate parent company of the group is now considered to be Acorn Top Co Limited.

 

ABEC (Group) Ltd

Directors' Report for the Year Ended 31 March 2025

Disclosure of information to the auditor

Each director has taken the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditors

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Hazlewoods LLP as auditors of the company is to be proposed at the forthcoming Annual General Meeting.

Approved by the Board on 27 October 2025 and signed on its behalf by:


A Shaw
Chief Financial Officer

 

ABEC (Group) Ltd

Statement of Directors' Responsibilities

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 group and company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

ABEC (Group) Ltd

Independent Auditor's Report to the Members of ABEC (Group) Ltd

Opinion

We have audited the financial statements of ABEC (Group) Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and 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 our 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 and the Directors' Report.

 

ABEC (Group) Ltd

Independent Auditor's Report to the Members of ABEC (Group) Ltd

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group’s and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

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.

Extent to which the audit was 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, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the group’s industry and its control environment and reviewed the groups’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the group operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

 

ABEC (Group) Ltd

Independent Auditor's Report to the Members of ABEC (Group) Ltd

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.





Scott Lawrence (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court
Staverton
Cheltenham
GL51 0UX

27 October 2025

 

ABEC (Group) Ltd

Consolidated Profit and Loss Account for the Year Ended 31 March 2025

Note

2025
 £

(As restated)
2024
 £

Turnover

3

32,721,584

18,146,186

Cost of sales

 

(24,174,367)

(14,567,938)

Gross profit

 

8,547,217

3,578,248

Administrative expenses

 

(3,873,592)

(2,418,116)

Operational EBITDA

 

4,673,625

1,160,132

Depreciation and amortisation expense

 

(168,633)

(153,060)

Other operating income

4

63,159

-

Operating profit

5

4,568,151

1,007,072

Interest payable and similar charges

7

(67,084)

(20,539)

 

(67,084)

(20,539)

Profit before tax

 

4,501,067

986,533

Taxation

11

(1,001,671)

(156,076)

Profit for the financial year

 

3,499,396

830,457

Profit attributable to:

 

Owners of the group

 

3,499,396

830,457

The above results were derived from continuing operations.

 

ABEC (Group) Ltd

Consolidated Statement of Comprehensive Income for the Year Ended 31 March 2025

2025
£

(As restated)

2024
£

Profit for the year

3,499,396

830,457

Foreign currency translation losses

(83,923)

(55,948)

Total comprehensive income for the year

3,415,473

774,509

Total comprehensive income attributable to:

Owners of the group

3,499,396

830,457

 

ABEC (Group) Ltd

(Registration number: 13152619)
Consolidated Balance Sheet as at 31 March 2025

Note

2025
£

(As restated)

2024
£

Fixed assets

 

Intangible assets

12

700,065

816,743

Tangible assets

13

127,373

91,793

 

827,438

908,536

Current assets

 

Stocks

15

910,814

224,369

Debtors

16

8,855,352

5,703,549

Cash at bank and in hand

17

3,503,000

925,304

 

13,269,166

6,853,222

Creditors: Amounts falling due within one year

18

(7,965,206)

(5,302,617)

Net current assets

 

5,303,960

1,550,605

Total assets less current liabilities

 

6,131,398

2,459,141

Creditors: Amounts falling due after more than one year

18

(434,849)

(263,940)

Provisions for liabilities

20

(764,614)

(3,291)

Net assets

 

4,931,935

2,191,910

Capital and reserves

 

Called up share capital

22

1,468,656

1,468,656

FX Translation reserve

(113,527)

(29,604)

Profit and loss account

3,576,806

752,858

Equity attributable to owners of the Group

 

4,931,935

2,191,910

Shareholders' funds

 

4,931,935

2,191,910

Approved and authorised by the Board on 27 October 2025 and signed on its behalf by:
 

A Shaw
Chief Financial Officer

 

ABEC (Group) Ltd

(Registration number: 13152619)
Balance Sheet as at 31 March 2025

Note

2025
£

2024
£

Fixed assets

 

Investments

14

1,620,977

1,599,869

Current assets

 

Debtors

16

159,250

323,282

Cash at bank and in hand

17

25,938

261,462

 

185,188

584,744

Creditors: Amounts falling due within one year

18

(345,585)

(697,254)

Net current liabilities

 

(160,397)

(112,510)

Net assets

 

1,460,580

1,487,359

Capital and reserves

 

Called up share capital

22

1,468,656

1,468,656

Profit and loss account

(8,076)

18,703

Shareholders' funds

 

1,460,580

1,487,359

The company made a profit after tax for the financial year of £648,669 (2024 - profit of £1,159,401).

Approved and authorised by the Board on 27 October 2025 and signed on its behalf by:
 

A Shaw
Chief Financial Officer

 

ABEC (Group) Ltd

Consolidated Statement of Changes in Equity for the Year Ended 31 March 2025
Equity attributable to the parent company

Share capital
£

FX Translation reserve
£

Profit and loss account
£

Total
£

At 1 April 2023

1,468,656

26,344

1,089,369

2,584,369

Profit for the year (As restated)

-

-

830,457

830,457

Dividends

-

-

(1,166,968)

(1,166,968)

Movement in foreign currency reserve

-

(55,948)

-

(55,948)

At 31 March 2024 (As restated)

1,468,656

(29,604)

752,858

2,191,910

Share capital
£

FX Translation reserve
£

Profit and loss account
£

Total
£

At 1 April 2024

1,468,656

(29,604)

798,190

2,237,242

Prior period adjustment

-

-

(45,332)

(45,332)

At 1 April 2024 (As restated)

1,468,656

(29,604)

752,858

2,191,910

Profit for the year

-

-

3,499,396

3,499,396

Dividends

-

-

(675,448)

(675,448)

Movement in foreign currency reserve

-

(83,923)

-

(83,923)

At 31 March 2025

1,468,656

(113,527)

3,576,806

4,931,935

 

ABEC (Group) Ltd

Statement of Changes in Equity for the Year Ended 31 March 2025

Share capital
£

Profit and loss account
£

Total
£

At 1 April 2023

1,468,656

26,270

1,494,926

Profit for the year

-

1,159,401

1,159,401

Dividends

-

(1,166,968)

(1,166,968)

At 31 March 2024

1,468,656

18,703

1,487,359

Share capital
£

Profit and loss account
£

Total
£

At 1 April 2024

1,468,656

18,703

1,487,359

Profit for the year

-

648,669

648,669

Dividends

-

(675,448)

(675,448)

At 31 March 2025

1,468,656

(8,076)

1,460,580

 

ABEC (Group) Ltd

Consolidated Statement of Cash Flows for the Year Ended 31 March 2025

Note

2025
 £

(As restated)
2024
 £

Cash flows from operating activities

Profit for the year

 

3,499,396

830,457

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

168,633

153,060

Finance costs

7

67,084

20,539

Income tax expense

11

1,001,671

156,076

 

4,736,784

1,160,132

Working capital adjustments

 

(Increase)/decrease in stocks

15

(686,445)

343,142

Increase in trade debtors

16

(3,151,803)

(1,453,311)

Increase in trade creditors

18

2,616,887

1,839,285

Cash generated from operations

 

3,515,423

1,889,248

Income taxes paid

11

(213,787)

(319,799)

Net cash flow from operating activities

 

3,301,636

1,569,449

Cash flows from investing activities

 

Acquisitions of tangible assets

(87,535)

(44,451)

Cash flows from financing activities

 

Interest paid

 

(67,084)

(20,539)

Proceeds from other borrowing draw downs

 

(1,153,313)

(154,876)

Repayment of other borrowing

 

1,259,440

92,500

Dividends paid

(675,448)

(1,166,968)

Net cash flows from financing activities

 

(636,405)

(1,249,883)

Net increase in cash and cash equivalents

 

2,577,696

275,115

Cash and cash equivalents at 1 April

 

925,304

650,189

Cash and cash equivalents at 31 March

 

3,503,000

925,304

 

ABEC (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
7 Miller Court
Severn Drive
Tewkesbury Business Park
Tewkesbury
Gloucestershire
GL20 8DN

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2025.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

 

ABEC (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

 

2

Accounting policies (continued)

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

After reviewing the group's forecasts and projections, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing its financial statements.

Prior period errors

During the year the group identified an adjustment in the prior period financial statements. This adjustment was as a result of an error in the application of the group's payroll scheme.

The effect on the financial statements for the year ended 31 March 2024 was to decrease the profit before tax by £57,111 and to decrease retained earnings by £45,332. This resulted in a decrease in the tax liability of £11,779, resulting in an overall increase in creditors falling due within one year of £45,332 and an overall decrease in net assets of £45,332.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements and key sources of estimation uncertainty

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

Contract revenue
Revenue from contracts is assessed on an individual basis with revenue earned being ascertained based on the stage of the completion of the contract which is estimated using a combination of the milestones in the contacts and the revenues invoiced to date compared to the total value of the contract. The assessed stage of completion will then determine the associated costs to accrue or defer in respect of that individual contract. Estimates of the works completed are made on a regular basis and subject to management review.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.

 

ABEC (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

 

2

Accounting policies (continued)

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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

The current corporation 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 group operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Office equipment

25% of cost per annum

Furniture, Fittings and Equipment

25% of cost per annum

Goodwill

Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10 years straight line

 

ABEC (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

 

2

Accounting policies (continued)

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stock is valued at the lower of cost and net realisable value and includes work in progress and materials purchased for impending work. Cost includes direct materials and, where applicable, direct labour costs and attributable overheads that have been incurred in bringing the stock to its present location and condition.

At each reporting date, stock is assessed for impairment. If stock is found to be impaired, its carrying value is reduced to its net realisable value. Any impairment loss is recognised immediately in the profit and loss statement.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

 

ABEC (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

 

2

Accounting policies (continued)

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.


Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 

ABEC (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

 

2

Accounting policies (continued)

Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Derivative financial instruments
 

Derivatives
The Group uses derivative financial instruments to reduce exposure to foreign exchange risk movements. The Group does not hold or issue derivative financial instruments for speculative purposes.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in profit or loss immediately.


 Hedging
The Group designates certain derivatives as hedging instruments in cash flow hedges.

At the inception of the hedge relationship, the entity documents the economic relationship between the hedging instrument and the hedged item, along with its risk management objectives and clear identification of the risk in the hedged item that is being hedged by the hedging instrument. Furthermore, at the inception of the hedge the Group determines and documents causes for hedge ineffectiveness.

 

 

ABEC (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

 

2

Accounting policies (continued)

Cash flow hedges
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss. Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods in which the hedged item affects profit or loss or when the hedging relationship ends.

Hedge accounting is discontinued when the Group revokes the hedging relationship, the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. Any gain or loss accumulated in equity at that time is reclassified to profit or loss when the hedged item is recognised in profit or loss. When a forecast transaction is no longer expected to occur, any gain or loss that was recognised in other comprehensive income is reclassified immediately to profit or loss.

 

3

Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

2025
£

2024
£

Rendering of services

32,721,584

18,146,186

The analysis of the group's Turnover for the year by market is as follows:

2025
£

2024
£

UK

2,591,133

3,569,714

Europe

29,812,370

14,280,051

Rest of world

318,081

296,421

32,721,584

18,146,186

 

4

Other operating income

The analysis of the group's other operating income for the year is as follows:

2025
£

2024
£

Miscellaneous other operating income

63,159

-

Included within miscellaneous other operating income is £63,159 (2024: £nil) relating to amounts receivable from professional services.

 

5

Operating profit

Arrived at after charging/(crediting)

2025
£

(As restated)

2024
£

Depreciation expense

 

51,955

36,382

Amortisation expense

 

116,678

116,678

Foreign exchange losses

 

129,323

85,413

Operating lease expense - property

 

110,604

82,104

Exceptional administrative expenses

6

462,100

57,111

 

ABEC (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

 

6

Exceptional items

2025
 £

(As restated)
2024
 £

One-off payroll expense

112,084

57,111

Non-capitalisable due diligence expenses

350,016

-

462,100

57,111

The one-off payroll expense recognised in the financial statements for the year ending 31 March 2025 and the prior year relate to the events discussed in note 2.

Non-capitalisable due diligence expenses relate to professional fees incurred in preparation for a potential sale of the share capital of the business. These were incurred separate to the transaction as described in note 27.

 

7

Interest payable and similar expenses

2025
£

2024
£

Interest on bank overdrafts and borrowings

67,084

20,539

 

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2025
£

2024
£

Wages and salaries

5,702,247

3,046,347

Social security costs

934,205

282,915

Pension costs, defined contribution scheme

58,519

41,097

6,694,971

3,370,359

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2025
 No.

2024
 No.

Direct employees

58

36

Indirect employees

11

11

69

47

Company
The company incurred no staff costs and had no employees other than the directors.

 

ABEC (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

 

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2025
£

2024
£

Remuneration

58,751

18,855

Contributions paid to money purchase schemes

5,822

5,657

64,573

24,512

During the year the number of directors who were receiving benefits and share incentives was as follows:

2025
No.

2024
No.

Accruing benefits under money purchase pension scheme

3

2

In respect of the highest paid director:

2025
£

2024
£

Remuneration

25,747

12,570

Company contributions to money purchase pension schemes

3,771

3,771

 

10

Auditors' remuneration

2025
£

2024
£

Audit of these financial statements

26,700

22,325

Other fees to auditors

All other non-audit services

10,950

9,300


 

 

ABEC (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

 

11

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2025
£

(As restated)

2024
£

Current taxation

UK corporation tax

80,444

3,328

UK corporation tax adjustment to prior periods

(96,850)

(1,219)

(16,406)

2,109

Foreign tax

256,754

151,612

Total current income tax

240,348

153,721

Deferred taxation

Arising from origination and reversal of timing differences

761,323

2,355

Tax expense in the income statement

1,001,671

156,076

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2024 - lower than the standard rate of corporation tax in the UK) of 25% (2024 - 25%).

The differences are reconciled below:

2025
£

(As restated)

2024
£

Profit before tax

4,501,067

986,533

Corporation tax at standard rate

1,125,267

246,633

Effect of expense not deductible in determining taxable profit

81,755

59,123

Effect of foreign tax rates

(90,028)

(150,311)

Decrease in UK and foreign current tax from unrecognised temporary difference from a prior period

(96,850)

(1,219)

Increase in UK and foreign current tax from adjustment for prior periods

-

2,499

Tax decrease from effect of capital allowances and depreciation

-

(649)

Tax decrease from other short-term timing differences

(11,779)

-

Tax decrease arising from group relief

(6,694)

-

Total tax charge

1,001,671

156,076

 

ABEC (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

 

11

Taxation (continued)

Deferred tax

Group

Deferred tax assets and liabilities

2025

Liability
£

Fixed asset timing differences

14,947

Short term timing differences

(17,715)

Deferred tax arising on alignment of foreign subsidiary to UK GAAP

767,382

764,614

2024

Liability
£

Fixed asset timing differences

8,567

Short term timing differences

(5,276)

3,291

 

12

Intangible assets

Group

Goodwill
 £

Cost

At 1 April 2024

1,166,776

At 31 March 2025

1,166,776

Amortisation

At 1 April 2024

350,033

Amortisation charge

116,678

At 31 March 2025

466,711

Carrying amount

At 31 March 2025

700,065

At 31 March 2024

816,743

 

ABEC (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

 

13

Tangible assets

Group

Furniture, fittings and equipment
 £

Cost

At 1 April 2024

129,760

Additions

87,535

At 31 March 2025

217,295

Depreciation

At 1 April 2024

37,967

Charge for the year

51,955

At 31 March 2025

89,922

Carrying amount

At 31 March 2025

127,373

At 31 March 2024

91,793

 

14

Investments

Company

2025
£

2024
£

Investments in subsidiaries

1,620,977

1,599,869

Subsidiaries

£

Cost or valuation

At 1 April 2024

1,599,869

Additions

21,108

At 31 March 2025

1,620,977

Provision

Carrying amount

At 31 March 2025

1,620,977

At 31 March 2024

1,599,869

Company

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:

 

ABEC (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

 

14

Investments (continued)

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2025

2024

Subsidiary undertakings

ABEC (ME) Ltd

7 Miller Court,
Severn Drive,
Tewkesbury Business Park,
Tewkesbury,
GL20 8DN

Ordinary Shares

100%

100%

United Kingdom

ABEC Ltd

7 Miller Court,
Severn Drive,
Tewkesbury Business Park,
Tewkesbury,
GL20 8DN

Ordinary Shares

100%

100%

United Kingdom

ABEC Controls (Group) WLL

The E18hteen,
19th Floor, Office
No 1928, Building No 230
Zone 69,
Street 303,
Doha

Ordinary Shares

100%

100%

Qatar

ABEC (Contracts) Limited

7 The Courtyard,
Carmanhall Road,
Sandyford,
Dublin

Ordinary Shares

100%

100%

Republic of Ireland

ABEC GmBH

ABC Workspaces
Mainzer Landstrasse 69
60329
Frankfurt
Germany

Ordinary Shares

100%

100%

ABEC KSA Ltd

Building No 8592, King Fahad Road, Al Olaya, Riyadh 12333

Ordinary

100%

0%

Saudi Arabia

 

15

Stocks

 

Group

Company

2025
£

2024
£

2025
£

2024
£

Consumables

673,352

184,043

-

-

Work in progress

237,462

40,326

-

-

910,814

224,369

-

-

 

ABEC (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

 

16

Debtors

   

Group

Company

Note

2025
 £

2024
 £

2025
 £

2024
 £

Trade debtors

 

2,926,175

2,266,808

-

-

Amounts owed by related parties

26

129,905

199,059

-

-

Amounts owed by group undertakings

 

-

-

159,250

323,282

Other debtors

 

376,786

111,949

-

-

Prepayments

 

2,141,315

769,458

-

-

Accrued income

 

2,142,597

1,619,929

-

-

VAT debtor

 

175,966

270,785

-

-

Corporation tax asset

 

962,608

465,561

-

-

 

8,855,352

5,703,549

159,250

323,282

 

17

Cash and cash equivalents

 

Group

Company

2025
£

2024
£

2025
£

2024
£

Cash at bank

3,503,000

925,304

25,938

261,462

 

18

Creditors

   

Group

Company

Note

2025
£

(As restated)

2024
£

2025
£

2024
£

Due within one year

 

Loans and borrowings

19

246,527

457,314

198,995

427,190

Trade creditors

 

3,550,645

2,037,614

-

-

Amounts due to group undertakings

 

-

-

126,781

109,748

Amounts due to related parties

26

60,128

215,116

19,809

149,413

Social security and other taxes

 

288,415

179,625

-

-

Outstanding defined contribution pension costs

 

12,639

8,381

-

-

Other payables

 

31,850

22,988

-

-

Accruals

 

3,708,934

2,340,752

-

10,903

Corporation tax liability

11

66,068

40,827

-

-

 

7,965,206

5,302,617

345,585

697,254

Due after one year

 

Other financial liabilities

 

434,849

263,940

-

-

 

ABEC (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

 

19

Loans and borrowings

Current loans and borrowings

 

Group

Company

2025
£

2024
£

2025
£

2024
£

Other borrowings

246,527

457,314

198,995

427,190

 

20

Provisions for liabilities

Group

Deferred tax
£

At 1 April 2024

3,291

Increase in existing provisions

761,323

At 31 March 2025

764,614

 

21

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £58,519 (2024 - £41,097).

Contributions totalling £12,639 (2024 - £8,381) were payable to the scheme at the end of the year and are included in creditors.

 

22

Share capital

Allotted, called up and fully paid shares

2025

2024

No.

£

No.

£

C1 Ordinary Shares of £0.01 each

78,190,090

781,901

78,190,090

781,901

D1 Ordinary Shares of £0.01 each

41,473,690

414,737

41,473,690

414,737

F1 Ordinary Shares of £0.01 each

17,201,820

172,018

17,201,820

172,018

Preferred Ordinary Shares of £0.01 each

10,000,000

100,000

10,000,000

100,000

Ordinary Shares of £0.01 each

1

-

1

-

146,865,601

1,468,656

146,865,601

1,468,656

 

ABEC (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

 

23

Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

2025
£

2024
£

Not later than one year

103,237

46,158

Later than one year and not later than five years

280,957

34,618

Later than five years

103,854

-

488,048

80,776

The company jointly uses a number of leased assets held in the name of another company under common ownership. Although not the legal lessee, the company bears a portion of the lease payments. The company’s share of future minimum lease payments under these arrangements is estimated at £242,966.

These joint assets include cars and vans used by staff to attend the various project sites, and the lease payments are shared between the companies based on usage or internal agreement. Although the company is not the legal lessee, it recognises its share of the lease expense in the profit and loss account.

The amount of non-cancellable operating lease payments recognised as an expense during the year was £218,650 (2024 - £148,744).

- £73,055 (2024 - £46,158) relates to operating lease commitments held in the name of the company.
- £145,595 (2024 - £102,586) in respect of lease arrangements held in the name of another company, which are jointly used by both entities. While there are no formal shared usage agreements in place, the company derives benefit from the use of these assets and has recognised the associated costs accordingly.

These payments have been accounted for in line with the substance of the arrangement and the requirements of FRS 102.

 

24

Dividends

2025
 £

2024
 £

Dividends paid

675,448

1,166,968

 

25

Analysis of changes in net debt

Group

At 1 April 2024
£

Operational cash flows
£

At 31 March 2025
£

Cash and cash equivalents

Cash

925,304

2,577,696

3,503,000

Borrowings

Short term borrowings

(30,124)

(106,127)

(136,251)

 

895,180

2,471,569

3,366,749

 

ABEC (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

 

26

Related party transactions

Group and Company

During the year, the Group made sales of £661,111 (2024: £411,444) and purchases of £269,910 (2024: £721,519) to and from Automated Building & Energy Controls Ltd, a company under common control. At the year end and amount of £129,905 (2024: £199,059) was included within debtors due within one year and an amount of £40,319 (2024: £215,116) was included within creditors due within one year.

At the year end an amount of £19,809 (2024: £149,413) was due to Automated Building & Energy Control (Group) Ltd, a company under common control.

Summary of transactions with key management

Key management personnel are considered to be the directors of the company and key management personnel compensation is disclosed in note 8 to the financial statements.
 

 

27

Non adjusting events after the financial period

Subsequent to the year end, the group received external investment from funds advised by Magnesium Capital LLP. This was primarily in order to fund the future growth of the business. The transaction was facilitated by way of the incorporation of two new entities Acorn Top Co Limited and Acorn Bid Co Limited. ABEC (Group) Ltd was acquired by Acorn Bid Co Limited and the transaction completed on 5th June 2025. The ultimate parent company of the group is now considered to be Acorn Top Co Limited.

 

28

Parent and ultimate parent undertaking

On 5 June 2025, Acorn Bid Co Limited, a company registered in England and Wales, became the immediate parent company and Acorn Top Co Limited, a company registered in England and Wales, became the ultimate parent company. On this same date, the ultimate controlling party became Acorn Mixer LLP.