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Registered number: 08733692
ISS LABOUR GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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ISS LABOUR GROUP LIMITED
COMPANY INFORMATION
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P T Ballard (appointed 3 July 2024)
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Suites 136 and 137 Lake View Drive
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Chartered Accountants & Statutory Auditor
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ISS LABOUR GROUP LIMITED
CONTENTS
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Independent Auditors' Report
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Statement of Income and Retained Earnings
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Statement of Financial Position
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Notes to the Financial Statements
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ISS LABOUR GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
ISS Labour Group Limited is an intermediate holding company, holding the trading subsidiaries Infrastructure Support Solutions Limited and Fencing & Lighting Contractors Limited, as part of a wider group headed by ISS Labour Group (Holdings) Limited (together "the Group").
I am delighted to report that the Group has achieved another excellent year and remains a Tier 1 supplier of highly skilled labour, OLE, S&T, Trackside Lighting and Ecology services to blue-chip rail and construction companies throughout the UK and is widely valued as an innovative, reliable, forward thinking supply chain partner. I am extremely proud of our exceptional safety and delivery record which has helped to retain our leading position within the marketplace.
Most importantly we have continued to provide our workforce with a regular income stream to support them through the challenges presented by the cost of living crisis and I would like to extend my thanks to them for their faith and loyalty.
With the continued support of our investors and senior management team, the Group is in a strong position to continue providing our clients with the highly skilled, reliable workforce they depend on to deliver their contracts. We are delighted to have maintained and secured several key frameworks which will continue to strengthen our position in a market that will see significant investment over the next five years.
Overall, 2025 was a transformative year for the UK rail sector, marked by significant reforms, infrastructure advancements, and a focus on sustainability, setting the stage for continued evolution in the coming years.
Underlying trading conditions remained difficult throughout the year. Economic uncertainties arising from the general election in July 2024, above target inflation, high interest rates and the cost of living crisis contributed to softer revenues than previously expected. This was exacerbated by a number of significant projects nearing their natural maturity. Furthermore gross margins were significantly impacted by an adverse year on year movement in commercial motor insurance premiums of £0.6m.
Despite the difficult market conditions impacting the Rail sector and the wider UK economy, the Group continued to generate a healthy and profitable return to shareholders.
In September 2024 the Group acquired a contract with Balfour Beatty covering their Northern region from CRS Limited.
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ISS LABOUR GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Principle risks and uncertainties
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All companies within the Group have documented risk management processes that clearly identify, evaluate, prioritise, and put in place mitigation strategies for the key risks faced by the business. These strategies are reviewed by the senior management team monthly and escalated to the Group Board for further review as required.
The key risks faced by the business are as follows:
Compliance Risks
The regulatory framework within the recruitment and temporary worker sector is complex and increasingly challenging. Management is committed to meeting its regulatory responsibilities and maintains robust controls and processes as well as dedicated staff to ensure that the business is fully compliant and satisfies all legal and contractual obligations.
Where necessary the opinion of expert professional advisors is sought to advise on market trends and developments to ensure that the Group remains ready to respond to anticipated regulatory changes as they arise.
Health & Safety Risks
Our ‘10 Rules to live by’ support the foundations of how we manage health and safety. We believe that if these rules are followed the chance of preventable accidents and incidents occurring are eliminated. Key features of the Group’s approach to managing Health & Safety risks are as follows:
∙having a Director responsible for all HSQE matters
∙maintaining an independent compliance team dedicated to auditing adherence to both internal and external regulatory and risk management procedures
∙the promotion of safety in all aspects of working life via our safety and wellbeing hub and the publishing of a regular safety newsletter which is cascaded to all staff and workers
∙a focus on health & safety training.
IT System Risks
As with most businesses the Group is reliant on its’ key operating systems for the day-today functioning of the business and the loss of one or more of these systems for an extended period of time would hamper normal trading. In order to mitigate these risks the Group:
∙maintains its Cyber Essentials certification to ensure that best practice in security protections is employed across it’s core operational and financial systems
∙employs subject matter experts either directly or through third party providers to share best practice, undertake peer review of our critical business systems and effectively troubleshoot and manage the recovery of failed or degraded systems
∙employs third party software and hardware support to assure business continuity of critical systems.
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ISS LABOUR GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Contractual Risks
Due to the nature and relative size of the Group’s clients the Group could be exposed to risks associated with failure to manage contractual risks or requirements or over committing to terms deemed uncommercial, leading to contractual breach or unprofitable contractual arrangements. In order to mitigate these risks the Group:
∙has appropriate governance procedures in place to ensure commercial decisions are taken by the right individuals
∙has access to external legal counsel to advise on key contractual terms
∙liaises with its’ third party insurance providers regarding onerous or non-standard contractual terms.
Competitive Risks
Changes in technology, along with increased third-party outsourcing arrangements provide both a challenge and an opportunity, and the Group believes that the key to successfully growing its business is to have an unparalleled understanding of customers' needs, along with robust and reliable compliance procedures. We have adapted our customer service and commercial approach to reflect the increasing requirements from clients in terms of service offering and the increased sophistication of client contract management teams in the monitoring of actual delivery.
Customer Concentration Risk
The construction and infrastructure market is dominated by a relatively small number of large contractors and service providers. For suppliers of temporary personnel into these sectors this can mean a concentration risk where a significant amount of business is placed with a relatively small number of customers.
In order to reduce reliance on any particular customer or group of customers, the Group continues to focus on securing new business across a more diverse client base to diversify its’ client portfolio and ensure an appropriate spread of business across a variety of clients and segments.
Liquidity Risks
The Group actively manages its working capital requirements to ensure it has sufficient funds for its day-to-day operations by:
∙preparing detailed weekly, monthly and longer-term cash flow forecasts;
∙setting monthly cash collection targets for the credit control and operational teams; and
∙utilising invoice-discounting facilities where appropriate.
Credit Risks
The Group is exposed to third party credit risk as it offers credit terms to its’ customers. The Group manages this risk by:
∙ensuring that all new customers are only granted credit terms following a formal process using external rating agencies to establish creditworthiness
∙utilising external rating agencies to monitor existing clients’ creditworthiness and reviewing existing credit terms on a regular basis
∙strictly applying approved credit limits and payment terms
∙ultimately any residual credit risk is significantly mitigated by trade credit insurance.
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ISS LABOUR GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Interest Rate Cashflow Risks
The Group is exposed to interest rate risk from its invoice discounting facility at a variable rate. The Group is currently not hedged against any movements in interest rates which may impact these balances.
Financial key performance indicators
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Key financial performance indicators for each of the Group’s trading subsidiaries after adjusting for exceptional costs were as follows:
Infrastructure Support Solutions Limited
Y/E 2025 Y/E 2024 % Change
Turnover (£,000) £47,924 £48,728 -1.6%
Gross Margin (£,000) £10,251 £10,166 0.8%
Gross Margin % 21.4% 20.9% 2.4%
EBITDA (£’000) £2,756 £2,996 -8.5%
EBITDA % 5.8% 6.1% -6.6%
DSO (Days) 66 64 3.1%
Fencing & Lighting Contractors Limited
Y/E 2025 Y/E 2024 % Change
Turnover £70k £159k (-56.0%)
Gross Margin £14k £35k (-60.0%)
Gross Margin % 22.0% 22.0% (-9.1%)
EBITDA £14k £32k (-56.4%)
EBITDA % 20.0% 20.1% (-0.5%)
DSO (Days) 128 86 (48.8%)
Dividend
The Board declared the following dividends on the 29th April 2025 – relating to the financial period ended 31st March 2025:
• a dividend of £1,351 per Ordinary Share (£1,000,000 in aggregate) from Infrastructure Support Solutions Limited to ISS Labour Group Limited
• a dividend of £4,000 per Ordinary “A” & “B” Share (£1,000,000 in aggregate) from ISS Labour Group Limited to ISS Labour Group (Holdings) Limited
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ISS LABOUR GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Outlook
CP7 (2024-29) funding for the rail sector is now active. Network Rail’s CP7 Delivery Plan remains strong for maintenance & renewal – track, structures, OLE, signalling, and station assets. However, the annual assessment by the regulator (ORR) warns that funding pressures mean Network Rail is shifting from large renewals toward more life-extending repairs and maintenance to preserve asset condition under constrained budgets.
In order to offset this anticipated weakness in the rail sector the Group has recently diversified into Power. National Grid has committed £35 billion over five years (to 2031) in its transmission business. Of this, a significant portion (£11 billion) is earmarked for maintaining and upgrading existing transmission networks.
Having secured its’ first two frameworks in this new sector the Group is investing heavily to support this growing opportunity. We should very quickly understand the mobilisation and work volumes which are expected to increase dramatically throughout 2026 & 2027 and this should more than offset any slow down in rail caused by a reduction in government spending.
The momentum of both industries post 2027 will see considerable volume increases across both markets.
The board is therefore optimistic about the future and believes that our strategic direction will enable us to achieve our objectives for 2025-2026 and beyond.
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ISS LABOUR GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Directors' statement of compliance with section 172(1)
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This S172 statement sets out how the Directors individually and collectively have complied with the requirements of the S172 (a-f) companies act, acting in a way that they consider, in good faith and be most likely to promote the success of the group for the benefit of its shareholders.
S172 (a) The likely consequences of any decision in the long term
The board produces a detailed annual business plan and monitors this monthly throughout the year by reference to detailed operational KPI’s and dashboards and reports on financial performance. Key strategic decisions are underpinned by detailed business cases and an appropriate level of financial modelling.
S172 (b) The interest of the company’s employees
The Directors understand that our employees are vital to the Group’s long-term success and its’ success is dependent on retaining, attracting, training and motivating employees.
The health, safety, and wellbeing of everyone involved in or affected by our business is our number one priority. We strive to invest in our management systems, processes, and daily operational activities to ensure we focus on reducing risk and keeping all concerned safe and well.
We take a long-term view to the continued development and improvement of our systems and processes with increasing focus placed on health and wellbeing both, physical and mental, and we are integrating the use of new technology to further enhance how we take care of our colleagues and local communities.
We have in place a range of measures to raise health and wellbeing awareness and provide support to our workforce including regular health and wellbeing events, targeted campaigns on key risk areas, access to free Employee Assistance Programmes and on-site health checks for frontline workers.
The board communicates with its employees on a regular basis through group-wide communications.
S172 (c) The need to foster the company’s business relationships with suppliers, customers and others
The Group’s success has been built on numerous longstanding and trusted client relationships. Our customers are key to every decision we make. We must ensure that we understand evolving client requirements to match them with our best candidates and the services that they require. We engage with clients via regular communications in our day-to-day activities, and via formal feedback requests. We have dedicated account managers in place to look after their needs and this allows us to deliver a tailored service to meet all of their requirements.
The Group understands the importance of our supply chain in delivering our long-term plans. One of the ways that we can ensure we have an effective relationship with our supply chain is to ensure we pay them on time. We meet regularly with our key supply chain business partners to share business updates, explore emerging market trends and determine joint business development initiatives.
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ISS LABOUR GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
S172 (d) The impact of the company’s operations on the community and environment
We strongly believe that as a successful business that can make an impact and leave a positive legacy within the communities we work amongst. it is important that we pro-actively seek out opportunities to implement our social value strategy. We are passionate about encouraging the next generation of workers into our industry and have strong engagement with local, schools, colleges, and universities. We have a dedicated Social Value Champion who works closely with partner organisations to support individuals whose routes to recruitment can be more challenging.
We are determined to play our part in transforming the communities surrounding the offices from which we deliver our services. We are committed to being a good neighbour and will work with local communities to help tackle issues that affect their financial, physical or mental wellbeing. We will listen and fully engage to ensure we provide solutions and opportunities for local communities to thrive.
We participate in various recycling schemes including working with a paper shredding company to reduce deforestation. We have engaged with a partner to ensure that all our old IT equipment including mobile telephones are disposed in a sustainable way and where possible parts are recycled. We promote conservative driving techniques to reduce fuel consumption and greenhouse gas emissions.
S172 (e) The desirability of the company maintaining a reputation for high standards of business conduct
We recognise that all members of the Group's Senior Management Team have a critical role in shaping a positive culture within the business and for personally championing the behaviours we expect to see from others both within our business and within the supply chain. Our Governance Journey which is underpinned by our Core Values sets out what we stand for, what we expect from our workforce and how we intend to deliver our corporate responsibility strategy. Our Governance Journey sets out our commitments to: Safety; Social Value; Health and Wellbeing; Customer Focus and Excellence; Code of Conduct and Accountability; and Environmental Responsibility.
We rigorously enforce our Group policies around modern slavery; antibribery and corruption; and health and safety and have a zero tolerance for breaches of the guidelines and expectations therein which is supported by regular awareness training.
S172 (f) The need to act fairly between members of the company
We strongly believe that in order to be successful a business needs to operate as a strong cohesive team where the complimentary skill sets of team members are respected and leveraged in order to achieve the desired outcomes. We achieve this by:
∙setting ourselves and our workforce the highest standards of behaviour
∙always challenging unethical or immoral behaviour and achieving transparency in the reporting of such
∙being respectful to our colleagues, customers, supply chain representatives and the general public
∙developing and implementing an approach to equality, diversity and inclusion that considers all relevant legislation
∙complying with our Code of Business, Code of Conduct and supporting policies.
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ISS LABOUR GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
This report was approved by the board and signed on its behalf.
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ISS LABOUR GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their report and the financial statements for the year ended 31 March 2025.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then 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;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The prinipal activity of the Company is that of a holding company.
The profit for the year, after taxation, amounted to £1,000,000 (2024 - loss £32).
£1,000,000 dividends were declared in the current year and none the prior year.
The directors who served during the year were:
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P T Ballard (appointed 3 July 2024)
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ISS LABOUR GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Having secured its' first two frameworks in the power sector the Group is investing heavily to support this growing opportunity. This should more than offset any slowdown in rail caused by a reduction in government spending.
The momentum of both industries post 2027 will see considerable volume increases across both markets.
The board is therefore optimistic about the future and believes that our strategic direction will enable us to achieve our objectives for 2025-2026 and beyond.
Matters covered in the Strategic Report
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The Directors have chosen, in accordance with s414C of the Companies Act, to disclose the information relating to principal risk and uncertainties, review of the business, key performance indicators and future developments in the Strategic Report.
Disclosure of information to auditors
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Post balance sheet events
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There have been no significant events affecting the Company since the year end.
Under section 487(2) of the Companies Act 2006, BKL Audit LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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ISS LABOUR GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ISS LABOUR GROUP LIMITED
We have audited the financial statements of ISS Labour Group Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 31 March 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.
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 United Kingdom, including the Financial Reporting Council'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
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In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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ISS LABOUR GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ISS LABOUR GROUP LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
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As explained more fully in the Directors' Responsibilities Statement set out on page 9, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
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ISS LABOUR GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ISS LABOUR GROUP LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
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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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙enquiring of management and those charged with governance around actual and potential litigation and claims;
∙enquiring of management and those charged with governance to identify any instances of non compliance with laws and regulations;
∙reviewing board meeting minutes for all meetings taking place throughout the year and up until the date of signature of these financial statements;
∙reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙reviewing the general ledger in detail for all transactions with related parties;
∙performing walk through testing to ensure systems and controls are operating as recorded where appropriate;
∙performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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ISS LABOUR GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ISS LABOUR GROUP LIMITED (CONTINUED)
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
∙Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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ISS LABOUR GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ISS LABOUR GROUP LIMITED (CONTINUED)
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 Auditors' 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.
Nick Bishop FCA (Senior Statutory Auditor)
for and on behalf of
BKL Audit LLP
Chartered Accountants
Statutory Auditor
35 Ballards Lane
London
N3 1XW
28 November 2025
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ISS LABOUR GROUP LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2025
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Retained earnings at the beginning of the year
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Profit/(loss) for the year
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Dividends declared and paid
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Retained earnings at the end of the year
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There were no recognised gains and losses for 2025 or 2024 other than those included in the statement of income and retained earnings.
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The notes on pages 18 to 24 form part of these financial statements.
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ISS LABOUR GROUP LIMITED
REGISTERED NUMBER: 08733692
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 24 form part of these financial statements.
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ISS LABOUR GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
The principal activity of the company is that of a holding company.
The Company is a private company limited by shares and registered in England and Wales.
The company's registered number and registered office address is Pure Offices, Suites 136 And 137 Lake View Drive, Annesley, Nottingham, England, NG15 0DT
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland ('FRS 102') and the Companies Act 2006.
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 (see note 3).
The following principal accounting policies have been applied:
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Financial Reporting Standard 102 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of ISS Labour Group (Holdings) Limited as at 31 March 2025 and these financial statements may be obtained from the registered office.
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Exemption from preparing consolidated financial statements
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The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.
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ISS LABOUR GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
The financial statements have been prepared on the going concern basis, which assumes that the Company will continue to trade for the foreseeable future, being a period of at least twelve months from the date of approval of these financial statements, and will be able to meet its debts as they fall due.
Tax is recognised in Statement of Income and Retained Earnings except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Investments in subsidiaries are measured at cost less accumulated impairment.
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ISS LABOUR GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
The Company only enters into basic financial instruments and transactions that result in the recognition of financial assets and liabilities like other debtors and creditors, loans from banks and other third parties and loans to and from related parties.
(i) Financial assets
Basic financial assets, including fixed asset investment, trade and other debtors, are initially recognised at transaction price, unless the arrangement consitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the Statement of Income and Retained Earnings.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party, or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
(iii) Offsetting
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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ISS LABOUR GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are reasonable under the circumstances. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
There were no significant judgements affecting amounts recognised in the financial statements.
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During the year, the Company obtained the following services from the Company's auditors:
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Fees payable to the Company's auditors for the audit of the Company's financial statements.
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The audit fee is bourne by the subsidiary comapny.
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Staff costs were as follows:
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The average monthly number of employees, including the directors, during the year was as follows:
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ISS LABOUR GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Factors affecting tax charge for the year
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The tax assessed for the year is lower than (2024 - higher than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:
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Profit/(loss) on ordinary activities before tax
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Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
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Total tax charge for the year
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Factors that may affect future tax charges
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There were no factors that may affect future tax charges.
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Dividends received from subsidiary
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ISS LABOUR GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Investments in subsidiary companies
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The Company has an investment in a 100% owned subsidiary, Infrastructure Support Solutions Limited. At 31 March, Infrastructure Support Solutions Limited had net assets of £4,941,120 (2024: £3,402,962), as well as a profit for the year of £2,538,158 (2024: £1,128,338)
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The following were subsidiary undertakings of the Company:
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Infrastructure Support Solutions Limited
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Pure Offices, Suites 136 And 137 Lake View Drive, Annesley, Nottingham, England, NG15 0DT
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Fencing and Lighting Contractors Ltd *
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Pure Offices, Suites 136 And 137 Lake View Drive, Annesley, Nottingham, England, NG15 0DT
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ISS LABOUR GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Amounts owed by group undertakings
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Amounts owed by group undertakings are unsecured, repayable on demand and are interest-free.
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Creditors: Amounts falling due within one year
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Amounts Owed to group undertakings (Dividend declared)
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Allotted, called up and fully paid
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85 (2024 - 85) A Ordinary shares of £1.00 each
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15 (2024 - 15) B Ordinary shares of £1.00 each
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150 (2024 - 150) C Ordinary shares of £0.01 each
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Profit and loss account
The profit and loss account represents total undistributed profits less losses.
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Related party transactions
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The Company has taken advantage of the exemption conferred by FRS 102 section 33.1A from the requirement to disclose transactions with other wholly owned group undertakings.
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The immediate and ultimate parent undertaking is ISS Labour Group (Holdings) Limited, a company incorporated in England & Wales.
The Registered Office and principle place of business of ISS Labour Group (Holdings) Limited is 134 Buckingham Palace Road, London, United Kingdom, SW1W 9SA.
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ISS LABOUR GROUP LIMITED
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