REGISTERED NUMBER: 05350306 (England and Wales)

EFFECTIVE SECURITY SERVICES LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28TH FEBRUARY 2025

Page

Company Information

1

Strategic Report

2

to

4

Report of the Director

5

to

6

Report of the Independent Auditors

7

to

10

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15

to

25

DIRECTOR:

D J Fullerton

REGISTERED OFFICE:

Mayflower House

14 Pontefract Road

Stourton

Leeds

West Yorkshire

LS10 1TB

REGISTERED NUMBER:

05350306 (England and Wales)

AUDITORS:

Thomas Coombs Limited

Statutory Auditor

Chartered Accountants

3365 The Pentagon

Century Way

Thorpe Park

Leeds

West Yorkshire

LS15 8ZB

BANKERS:

National Westminster Bank Plc

8 Park Row

Leeds

West Yorkshire

LS1 1JS

The director presents his strategic report for the year ended 28th February 2025.

REVIEW OF BUSINESS

Several key performance indicators are used as measures to ensure the company grows and remains financially strong to enable it to invest in the future.

12 months

6 months

18 months

1/3/2024 - 28/2/2025

1/9/2023 - 29/2/2024

1/3/2022 - 31/8/2023

£

£

£

Turnover

42,220,930

19,425,165

61,235,161

Gross profit

10,381,157

4,559,939

12,490,653

Gross profit %

24.6%

23.5%

20.4%

Adjusted EBITDA*

2,372,649

1,009,474

402,538

Shareholder funds

2,785,764

2,742,403

2,486,506

*During the year ended 28th February 2025 and 6 months to 29th February 2024 EBITDA has been impacted by certain exceptional items (as described in note 5). These items have been excluded from the adjusted EBITDA figures.

The company has seen strong levels of trading and a strong new business pipeline across both the hospitality and guarding lines of service. The business is well placed to capitalize on the investment made in corporate processes and governance over the last 12 months, given the further revenue growth opportunities available.

PRINCIPAL RISKS AND UNCERTAINTIES

The Director continually assesses the key risks that could impact on the successful execution of the company's strategy. The key business risks affecting the company are:

People

Our employees and workers are central to our operations, and the company is reliant on its ability to recruit, develop and retain them. The company is committed to training and supporting employees and workers to reach their full potential and encourages involvement throughout the business to ensure that the workforce remain motivated and committed.

The company is also committed to treating all employees fairly and to prohibit discrimination on the grounds of race, gender, religion, sexual orientation or ethnic origin.

Financial risks

The company's objective when managing capital is to safeguard the company's ability to continue as a going concern to provide returns for shareholders and benefits for other stakeholders. To maintain or adjust the capital structure, the company may adjust the amount of dividend.

Like most other UK corporates, the company has been, and continues to be, sensitive to increases in the costs of employment including recent increases in employers' NIC and successive significant increases in national minimum wage. The business has mitigated such increases to some degree with necessary but unfortunate price increases across our customer base.

The company monitors credit risks closely and considers that its current policy of credit checks meets its objectives of managing such exposure.

The physical nature of the security industry means that claims for injury or damages in relation to staff, workers, and the public are not unusual. In recognition of this financial risk the company retains professional legal advice and underwrites the risk through appropriate insurance policies.

General

Other than factors outside the company's control, the directors are not aware of any significant risk, which may adversely impact on the company during the forthcoming financial year.

SECTION 172(1) STATEMENT

Section 172 (1) of the Companies Act 2006 requires the directors of a company to act in the way they each consider, in good faith, would be most likely to promote the success of the company for the benefit of its members, and in doing so have regard to matters including:

(a) The likely consequences of any decision in the long term.

(b) The interests of the company's employees.

(c) The need to foster the company's business relationships with suppliers, customers and others.

(d) The impact of the company's operations on the community and the environment.

(e) The desirability of the company to maintain a reputation for high standards of business conduct; and

(f) The need to act fairly between the members of the company.

With respect to this the Board meets regularly to discuss the ongoing strategic direction of the company with specific focus on:

a) Long term consequences

We continue to review our strategy to continue to develop our organisation as a leading security provider. Within the strategy, we align any development and training programmes to support the implementation. As we grow our business, the risk landscape becomes more complex. It is therefore vital that we effectively identify, evaluate, manage and mitigate risk. Being a leading ACS pacesetter, we continually look to improve our service delivery to all our stakeholders.

b) The interest of employees and workers

The working environment is important to the director both from a health and safety perspective but also in putting equality, diversity, inclusion and wellbeing at the heart of its operations. The company has dedicated members of staff to ensure that all employees and workers remain physically and emotionally safe and well and that the diversity of the workforce accurately reflects the community that the company serves. Policies are in place and significant training is undertaken to ensure that the company has a fair and robust recruitment process and that a culture of equality and diversity is maintained. There is an ongoing review process to ensure that the gender pay gap is addressed and that equal pay is applied fairly and consistently.

The way in which we interact with our workforce is constantly under review, in the interests of efficient and effective communication. Aside from a drumbeat of regular updates via email, one invaluable communication channel to highlight is the quarterly 'all-hands' business update Teams call.

c) The interest of other stakeholders

Customers: we view our customers as partners. We have policies in place to meet regularly and take on feedback and look to build on these strong relationships we have.

Suppliers: we also view our suppliers as partners and ensure they not only deliver competitive value to the business but also share our core values.

d) The community

The company's approach is to create positive change for the people working for us and the community with which we interact. Martins House Children's Hospice and Macmillan Cancer Support are nominated to be our company charity partner by several members of our team and has now been our charity partner for several years.

e) High standards

The company is committed to paying the right amount of tax on a timely basis in accordance with tax laws. The business leadership team is proud of having achieved the commendable score of 140 for the respected industry ACS accreditation in July 2025, putting us firmly in the top 1% of industry security companies nationwide. We also passed our ISO9001, ISO14001, ISO45001 with no non-compliances, as well as passing both product certification and COP119 accreditations all which represent a fantastic, industry leading performance.

f) Act fairly between members

The board is committed to openly engaging with our staff, with effective dialogue. These communications take place regularly at various levels and are always presented in an appropriate and accessible form.

KEY PERFORMANCE INDICATORS

Revenue

Turnover increased by 9% or c£3.3M on a like for like annual basis. Turnover in the year to February 2025 included c£0.8M of revenue related to servicing elevated demand for the Euro 2024 football tournament. The balance of the net revenue growth of £1.5M can be accredited to diligent growth in our organic hospitality door security book of business, despite continuing shrinkage in the size of the UK hospitality industry.

Margin

Gross margin was 24.6% in the period compared to 23.5% in the prior year. The improvement in gross profit and EBITDA on prior year due to efficiencies of scale and close micro-management of operating margins, and continuing reviews of corporate operations.

Cash management

The company manages it resources to ensure it can continue as a going concern whilst controlling costs and liquidity risk. The company benefits from invoice discounting facility which helps manage the working capital requirements in line with industry practices. The company maintains a rolling 18-month cashflow forecast to ensure continuing adequacy of funding.

Other key performance indicators

In addition to the company's financial KPI's, we focus on the strategy of safeguarding both the public, our staff, as well as quality in the delivery.

Public

Being public facing operations, the company is committed to engaging the best people to ensure we operate at the highest levels. Our workers are trained, provided with safety equipment and any issues of safety are monitored and treated with immediate effect. Safeguarding the public is one of our primary concerns.

Safety

Our employees and workers are central to our operations, and the company is reliant on its ability to recruit, develop and retain staff. The company is committed to finding the best talent and new recruits go through a full vetting process, with ongoing training and support to ensure employees and workers reach their full potential. The company encourages employee and worker involvement throughout the business to ensure that the workforce remain motivated and committed to the company values.

Quality

Our aim is to become the number one choice in security sector in terms of both quality and service to our customers. We monitor feedback and complaints closely and look to improve our quality by implementing improvements on an ongoing basis.

FUTURE DEVELOPMENT

We continue to review our strategy to continue to develop our organisation as a leading security provider. Within the strategy, we align any development and training programmes to support the implementation. As we grow our business, the risk landscape becomes more complex. It is therefore vital that we effectively identify, evaluate, manage and mitigate risk. Being a leading ACS pacesetter, we continually look to improve our service delivery to all our stakeholders.

ON BEHALF OF THE BOARD:

D J Fullerton - Director

26th November 2025

The director presents his report with the financial statements of the company for the year ended 28th February 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of private security services and provision of door supervision and guarding security services throughout the United Kingdom.

DIVIDENDS

Dividends of £700,000 have been declared in the year ending 28th February 2025. The total distribution of dividends in the prior period was NIL.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTOR

D J Fullerton held office during the whole of the period from 1st March 2024 to the date of this report.

FINANCIAL INSTRUMENTS

The company's financial statements comprise of advance receipts in respect of the ordinary activities of the company, cash and liquid resources and various other items such as trade debtors and trade creditors that also arise directly from its operations.

STREAMLINED ENERGY AND CARBON REPORTING

Total consumption during the year ending 28th February 2025 was 153,990 kWh (6-month period ended 29th February 2024 was 98,412 kWh, 18-month period ended 31st August 2023: 269,193 kWh). The company recognises its responsibility to limit its impact on the environment and reduce its carbon footprint proactively. Our total KgCo2e carbon emissions for the year were 309,612. We engaged an external agency (Neutralcarbonzone Ltd) to support our emissions and energy use calculations.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Thomas Coombs Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D J Fullerton - Director

26th November 2025

Opinion

We have audited the financial statements of Effective Security Services Limited (the 'company') for the year ended 28th February 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 company's affairs as at 28th February 2025 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.

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

-	certain disclosures of director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is 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 director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the entity and industries in which it operates, we identified the principal risks of non-compliance with laws and regulations related to security industry authority, employment law and data protection. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, tax legislation and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

We assessed the susceptibility of the company's financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls, and ensuring these controls operated as intended. We determined the principal risks were related to posting journal entries to manipulate profits, and management bias in accounting estimates.

To address the risk of fraud through management bias and override of controls, we:

- Performed analytical procedures to identify any unusual or unexpected relationships.

- Identified and tested journal entries and identified any significant transactions that were unusual or outside the normal course of business.

- Investigated the rationale behind significant or unusual transactions.

- Challenged assumptions and judgements made by management in determining significant accounting estimates.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed audit procedures which included, but were not limited to:

- Agreeing financial statements disclosures to underlying supporting documentation.

- Discussions with management of known or suspected instances of non-compliance with laws and regulations.

- Reviewing relevant available correspondence.

At the completion stage of the audit, the engagement partner's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance of laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement relating to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Jordan Mitchell ACA (Senior Statutory Auditor)

for and on behalf of Thomas Coombs Limited

Statutory Auditor

Chartered Accountants

3365 The Pentagon

Century Way

Thorpe Park

Leeds

West Yorkshire

LS15 8ZB

26th November 2025

TURNOVER

3

42,220,930

19,425,165

Cost of sales

31,839,773

14,865,226

GROSS PROFIT

10,381,157

4,559,939

Administrative expenses

8,851,429

4,084,848

OPERATING PROFIT

1,529,728

475,091

Interest payable and similar expenses

6

185,927

128,940

PROFIT BEFORE TAXATION

7

1,343,801

346,151

Tax on profit

8

600,440

90,254

PROFIT FOR THE FINANCIAL YEAR

743,361

255,897

PROFIT FOR THE YEAR

743,361

255,897

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

743,361

255,897

FIXED ASSETS

Intangible assets

10

2,149,601

2,533,000

Tangible assets

11

294,898

281,254

Investments

12

115,690

260,594

2,560,189

3,074,848

CURRENT ASSETS

Stocks

13

56,881

99,190

Debtors

14

7,560,083

7,566,318

Cash at bank and in hand

1,512,946

157,174

9,129,910

7,822,682

CREDITORS

Amounts falling due within one year

15

8,805,815

7,371,793

NET CURRENT ASSETS

324,095

450,889

TOTAL ASSETS LESS CURRENT LIABILITIES

2,884,284

3,525,737

CREDITORS

Amounts falling due after more than one year

16

(83,334

)

(783,334

)

PROVISIONS FOR LIABILITIES

20

(15,186

)

-

NET ASSETS

2,785,764

2,742,403

CAPITAL AND RESERVES

Called up share capital

21

100

100

Retained earnings

22

2,785,664

2,742,303

SHAREHOLDERS' FUNDS

2,785,764

2,742,403

The financial statements were approved by the director and authorised for issue on 26th November 2025 and were signed by:

D J Fullerton - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st September 2023

100

2,486,406

2,486,506

Changes in equity

Total comprehensive income

-

255,897

255,897

Balance at 29th February 2024

100

2,742,303

2,742,403

Changes in equity

Dividends

-

(700,000

)

(700,000

)

Total comprehensive income

-

743,361

743,361

Balance at 28th February 2025

100

2,785,664

2,785,764

1.	STATUTORY INFORMATION

Effective Security Services Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

The nature of the company's operations and principal activities is that of private security and providing door supervision and guarding security services throughout the United Kingdom.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

Effective Security Services Limited is a private company limited by shares incorporated in England.

The address of the registered office is given in the company information on page 1 of these financial statements. The nature of the company’s operations and principal activities are providing private security services and provision of door supervision and guarding security services.

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention.

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

Going concern

In accordance with accounting standards by adopting the going concern basis of accounting in preparing the annual financial statements the director has considered a period of 12 months from the date of approval of the accounts.

Within those considerations the director has noted the following:

- A significant improvement in the turnover, gross profit, EBITDA and cash flows of the company during the reporting period, a trend which has continued into FY 2025-26, which has seen continued improvement in profit before tax reported in the company's management accounts.

- Strong levels of trading and a strong growth pipeline across both hospitality and guarding, the business is well placed to capitalize on the investments made and opportunities available.

- Cashflow forecasts which indicate a positive cash balance for at least the next 12 months.

Accordingly, at the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in existence for the foreseeable future, and therefore they continue to adopt the going concern basis of accounting in preparing the financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions

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

•

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements

The financial statements contain information about Effective Security Services Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Effective Security Holdings Limited, Mayflower House, 14 Pontefract Road, Leeds LS10 1TB.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies.

In the application of the company's accounting policies, the director is required to make estimates and assumptions about the carrying amount 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 and so actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis and 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.

In preparing these financial statements, the director has considered the following key sources of estimation uncertainty:

Goodwill -

Goodwill arising on the acquisition of businesses is amortised over its expected useful life, and this is reassessed taking into account current factors to identify whether any impairment has taken place.

Tangible fixed assets -

Tangible fixed assets are depreciated over their useful lives which are assessed annually by the directors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account.

Bad debt provision -

Where the company believes that unpaid debtors may result in a bad debt, provision is calculated. This calculation considers the payment history of the relevant customers and the ageing of the debt.

Revenue and revenue recognition

Revenue is recognised to the extent that it is probable that the economics benefits will flow to the company and the revenue can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Revenue derived from workers is recognised as work is performed.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of businesses, is amortised over its estimated useful life of 10 years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Short leasehold

-

Over the lease term

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Investments where shares are publicly traded, or their fair value is reliably measurable, are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the assets cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual agreement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Exceptional items

Exceptional items, as disclosed on the face of the income statement, are items which due to their size and non-recurring nature have been classified separately in order to draw them to the attention of the reader of the financial statements and to show the underlying profits of the company.

Invoice discounting

The company utilises finance arrangements in respect of certain of its trade debtors. The arrangements are such that separate presentation of the relevant trade debtors and the related finance is adopted.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

3.

TURNOVER

The turnover and loss before taxation are attributable to the principal activity of the company.

The company operates wholly within the United Kingdom.

4.	EMPLOYEES AND DIRECTORS

Period

1/9/23

Year Ended

to

28/2/25

29/2/24

£

£

Wages and salaries

4,665,798

2,488,356

Social security costs

522,573

263,830

Other pension costs

79,996

35,233

5,268,367

2,787,419

The average number of employees during the year was as follows:

Period

1/9/23

Year Ended

to

28/2/25

29/2/24

Employees

113

108

Directors

1

1

114

109

There were also 2,208 (2024: 2,110) average number of contractors engaged during the period. They are not included in the numbers above as they are not considered to be full-time employees of the company. Costs incurred in relation to such workers during the period totalled £31,395,621 (2024: £14,717,644).

Period

1/9/23

Year Ended

to

28/2/25

29/2/24

£

£

Director's remuneration

9,302

4,651

5.	EXCEPTIONAL ITEMS

To ensure turnover, cost of sales and administrative expenses are not impacted by non recurring items, costs in connection with restructuring following business acquisitions and prior periods have been separated as exceptional items in the current period financial statements.

Items classified as exceptional are as follows:

Year ending 28/2/25

Period 1/9/23 to 29/2/24

£

£

Turnover - accrued income related to prior period

-

70,000

Cost of sales - labour costs related to prior period

-

14,800

Administrative expenses

CJRS Repayment

360,629

-

Bad debts relating to prior period

-

62,615

Professional costs related to prior period

-

86,964

Payroll costs related to restructuring

-

165,487

360,629

315,066

Taxation

-

(99,966

)

Exceptional loss for period

360,629

299,900

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1/9/23

Year Ended

to

28/2/25

29/2/24

£

£

Bank loan interest

9,076

13,676

Interest payable and similar

20,079

11,385

Invoice discounting account

136,108

94,294

Other interest charges

20,664

9,370

Hire purchase

-

215

185,927

128,940

7.	PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

Period

1/9/23

Year Ended

to

28/2/25

29/2/24

£

£

Hire of radio equipment

398,772

140,848

Depreciation - owned assets

112,913

61,131

Profit on disposal of fixed assets

-

(7,853

)

Goodwill amortisation

394,379

73,386

Auditors' remuneration

52,684

20,500

Rent

106,603

50,804