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REGISTERED NUMBER: 02079614 (England and Wales)

Group Strategic Report, Report of the Directors and

Audited Consolidated Financial Statements for the Year Ended 31st May 2025

for

H.E. Group Ltd

| H.E. Group Ltd (Registered number: 02079614) |

Contents of the Consolidated Financial Statements

for the year ended 31st May 2025

Page |

| Company Information | 1 |

| Group Strategic Report | 2 |

| Report of the Directors | 4 |

| Report of the Independent Auditors | 6 |

| Consolidated Income Statement | 10 |

| Consolidated Other Comprehensive Income | 11 |

| Consolidated Balance Sheet | 12 |

| Company Balance Sheet | 13 |

| Consolidated Statement of Changes in Equity | 14 |

| Company Statement of Changes in Equity | 15 |

| Consolidated Cash Flow Statement | 16 |

| Notes to the Consolidated Cash Flow Statement | 17 |

| Notes to the Consolidated Financial Statements | 18 |

| H.E. Group Ltd |

Company Information

for the year ended 31st May 2025

| DIRECTORS: | H R Edeleanu

| P A Durey

| C J Luscombe

| REGISTERED OFFICE: | Whitewall Centre

| Whitewall Road

| Strood

| Rochester

| Kent

| ME2 4DZ

| REGISTERED NUMBER: | 02079614 (England and Wales)

| AUDITORS: | Beak Kemmenoe

| Chartered Accountants

| & Statutory Auditors

| 1-3 Manor Road

| Chatham

| Kent

| ME4 6AE

| H.E. Group Ltd (Registered number: 02079614) |

Group Strategic Report

for the year ended 31st May 2025

The directors present their strategic report of the company and the group for the year ended 31st May 2025.

FAIR REVIEW OF THE BUSINESS

The group's hire revenues have increased with a rise in turnover of 12.8% in the reporting period. Our good reputation and service has enabled the group to benefit from the increased activity in the construction industry.

The sale of our second hand machines has generated a healthy profit on disposal of £2,387,744 (2024: £3,275,626), as discerning buyers from around the world continue to recognise that ex-hire plant from the H.E. fleet is maintained to the highest standards and amongst the best available. This shows no sign of abating and is an integral part of the H.E. Group Ltd business model.

We have continued to invest in our core fleet to ensure it is up to date and of the high quality customers rely on for their own success. We have invested £20,826,588 in new acquisitions and disposed of plant that originally cost £12,078,834. The work carried out to add to the fleet has proved to be timely with more of the benefits being seen in the current year. In a year with such significant investment, we were still able to reduce the group's hire purchase liabilities.

KEY PERFORMANCE INDICATORS

Management use a range of performance measures to monitor and manage the business. The KPIs used to determine the progress and performance are set out below:

Turnover

Turnover rose by 12.8% with £27,737,347 achieved in the reporting period.

Profit before tax

Profit before tax rose to £3,110,105 from £1,784,630 in the previous reporting period.

Balance sheet

The balance sheet shows that the group's net assets at the reporting date have increased to £37,428,581 from £35,113,700.

Cash flow

The group saw a net cash outflow of £4,954,097 (2024: inflow of £2,113,092) as the group was able to use its surplus funds to invest in new plant for hire whilst reducing its hire purchase liabilities.

PRINCIPAL RISKS AND UNCERTAINTIES

The group operates in the construction industry, which is inherently uncertain and subject to several uncontrollable factors including: -

- Government policy and levels of public spending

- Economic conditions, interest rates in particular

- Investor and consumer confidence

- International pressures including conflicts

RISK MANAGEMENT

These principal risk factors are inextricably linked and while the outlook in the construction industry and the wider economy continues to be uncertain in a period of higher than usual inflation, we remain confident that our business can continue to be successfully managed through these challenging conditions. The group's success over the years is predicated on a business model that enables it to generate liquid funds quickly from the sale of second hand plant as and when required. This model has proven itself over the last three decades.

| H.E. Group Ltd (Registered number: 02079614) |

Group Strategic Report

for the year ended 31st May 2025

FUTURE DEVELOPMENTS

We continue to operate at the top end of the market and strive to meet our customers' requirements on the basis of quality and reliability. Our reputation for offering the most up to date hire fleet on the market remains integral to our business strategy. As we look to the spring of 2026 the group plans to continue it's growth to meet changing market conditions and the requirements of our expanding customer base.

ON BEHALF OF THE BOARD:

H R Edeleanu - Director

5th December 2025

| H.E. Group Ltd (Registered number: 02079614) |

Report of the Directors

for the year ended 31st May 2025

The directors present their report with the financial statements of the company and the group for the year ended 31st May 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in year under review was the hire of plant.

The group is made up of three trading companies H.E. Group Ltd, H.E. Services (Plant Hire) Ltd and Masterhitch Europe Limited. H.E. Group Ltd and H.E. Services (Plant Hire) Ltd hires plant and machinery, Masterhitch Europe Limited sells and manufactures excavator quick hitches, buckets and wearparts. The parent company has further subsidiaries, all of which are dormant.

DIVIDENDS

No dividends were distributed in the year ended 31st May 2025.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st June 2024 to the date of this report.

H R Edeleanu

P A Durey

C J Luscombe

Other changes in directors holding office are as follows:

B Walsh - resigned 5th February 2025

DISCLOSURE IN THE STRATEGIC REPORT

The directors have disclosed their review of the business, the key performance indicators, risk management policies, principal risks and uncertainties along with future developments in the Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- | select suitable accounting policies and then apply them consistently;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group 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 directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

| H.E. Group Ltd (Registered number: 02079614) |

Report of the Directors

for the year ended 31st May 2025

AUDITORS

The auditors, Beak Kemmenoe, are deemed to be reappointed.

ON BEHALF OF THE BOARD:

H R Edeleanu - Director

5th December 2025

Report of the Independent Auditors to the Members of

H.E. Group Ltd

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Report of the Independent Auditors to the Members of

H.E. Group Ltd

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Report of the Independent Auditors to the Members of

H.E. Group Ltd

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- We identified the laws and regulations applicable to the group through discussions with directors and other management, and from our commercial knowledge and experience of the business sector;

- We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment and health and safety legislation;

- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and

- Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

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

-Tested journal entries to identify unusual transactions;

- Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- Investigated the rationale behind significant or unusual transactions.

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

- Agreeing financial statement disclosures to underlying supporting documentation; and

- Enquiring of management as to actual and potential litigation and claims;

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.

Report of the Independent Auditors to the Members of

H.E. Group Ltd

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.

Ronald Price FCA (Senior Statutory Auditor)

for and on behalf of Beak Kemmenoe

Chartered Accountants

& Statutory Auditors

1-3 Manor Road

Chatham

Kent

ME4 6AE

5th December 2025

| H.E. Group Ltd (Registered number: 02079614) |

Consolidated

Income Statement

for the year ended 31st May 2025

| 2025 |  | 2024

| Notes | £ | £ |

TURNOVER | 3 | 27,737,347 |  | 24,595,087 |  |

Cost of sales | 20,665,009 |  | 20,866,104 |  |

GROSS PROFIT | 7,072,338 |  | 3,728,983 |  |

Administrative expenses | 6,526,999 |  | 5,855,281 |  |

545,339 |  | (2,126,298 | ) |

Other operating income | 4 | 2,234,284 |  | 2,322,725 |  |

Profit on sale of fixed assets | 2,387,744 |  | 3,275,626 |  |

OPERATING PROFIT | 6 | 5,167,367 |  | 3,472,053 |  |

Interest receivable and similar income | 8 | 276,342 |  | 253,999 |  |

5,443,709 |  | 3,726,052 |  |

Interest payable and similar expenses | 9 | 2,333,604 |  | 1,941,422 |  |

PROFIT BEFORE TAXATION | 3,110,105 |  | 1,784,630 |  |

Tax on profit | 10 | 795,224 |  | 469,782 |  |

PROFIT FOR THE FINANCIAL YEAR | 2,314,881 |  | 1,314,848 |  |

Profit attributable to:

Owners of the parent | 2,314,881 |  | 1,314,848 |  |

| H.E. Group Ltd (Registered number: 02079614) |

Consolidated

Other Comprehensive Income

for the year ended 31st May 2025

| 2025 |  | 2024

| Notes | £ | £ |

PROFIT FOR THE YEAR | 2,314,881 |  | 1,314,848 |  |

OTHER COMPREHENSIVE INCOME | - |  | - |  |

TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 2,314,881 |  | 1,314,848 |  |

Total comprehensive income attributable to:

Owners of the parent | 2,314,881 |  | 1,314,848 |  |

| H.E. Group Ltd (Registered number: 02079614) |

Consolidated Balance Sheet

31st May 2025

| 2025 | 2024 |

| Notes | £ | £ | £ | £ |

FIXED ASSETS

Tangible assets | 12 | 71,641,614 |  | 69,522,613 |  |

Investments | 13 | - |  | - |  |

Investment property | 14 | 3,179,695 |  | 2,340,695 |  |

74,821,309 |  | 71,863,308 |  |

CURRENT ASSETS

Stocks | 15 | 1,127,554 |  | 1,211,122 |  |

Debtors | 16 | 5,493,984 |  | 4,420,779 |  |

Cash at bank and in hand | 2,543,444 |  | 7,497,541 |  |

9,164,982 |  | 13,129,442 |  |

CREDITORS

Amounts falling due within one year | 17 | 23,507,423 |  | 23,610,265 |  |

NET CURRENT LIABILITIES | (14,342,441 | ) | (10,480,823 | ) |

TOTAL ASSETS LESS CURRENT LIABILITIES | 60,478,868 |  | 61,382,485 |  |

CREDITORS

Amounts falling due after more than one year | 18 | (16,139,334 | ) | (19,491,944 | ) |

PROVISIONS FOR LIABILITIES | 22 | (6,910,953 | ) | (6,776,841 | ) |

NET ASSETS | 37,428,581 |  | 35,113,700 |  |

CAPITAL AND RESERVES

Called up share capital | 23 | 100 |  | 100 |  |

Retained earnings | 37,428,481 |  | 35,113,600 |  |

SHAREHOLDERS' FUNDS | 37,428,581 |  | 35,113,700 |  |

The financial statements were approved by the Board of Directors and authorised for issue on 5th December 2025 and were signed on its behalf by:

H R Edeleanu - Director

| H.E. Group Ltd (Registered number: 02079614) |

Company Balance Sheet

31st May 2025

| 2025 | 2024 |

| Notes | £ | £ | £ | £ |

FIXED ASSETS

Tangible assets | 12 | 71,287,240 |  | 69,425,983 |  |

Investments | 13 | 25 |  | 25 |  |

Investment property | 14 | 3,179,695 |  | 2,340,695 |  |

74,466,960 |  | 71,766,703 |  |

CURRENT ASSETS

Stocks | 15 | 78,371 |  | 65,241 |  |

Debtors | 16 | 2,251,119 |  | 1,877,701 |  |

Cash at bank and in hand | 1,858,481 |  | 6,907,883 |  |

4,187,971 |  | 8,850,825 |  |

CREDITORS

Amounts falling due within one year | 17 | 24,317,746 |  | 25,028,674 |  |

NET CURRENT LIABILITIES | (20,129,775 | ) | (16,177,849 | ) |

TOTAL ASSETS LESS CURRENT LIABILITIES | 54,337,185 |  | 55,588,854 |  |

CREDITORS

Amounts falling due after more than one year | 18 | (16,139,334 | ) | (19,491,944 | ) |

PROVISIONS FOR LIABILITIES | 22 | (6,840,483 | ) | (6,774,527 | ) |

NET ASSETS | 31,357,368 |  | 29,322,383 |  |

CAPITAL AND RESERVES

Called up share capital | 23 | 100 |  | 100 |  |

Retained earnings | 31,357,268 |  | 29,322,283 |  |

SHAREHOLDERS' FUNDS | 31,357,368 |  | 29,322,383 |  |

Company's profit for the financial year | 2,034,985 |  | 975,882 |  |

The financial statements were approved by the Board of Directors and authorised for issue on 5th December 2025 and were signed on its behalf by:

H R Edeleanu - Director

| H.E. Group Ltd (Registered number: 02079614) |

Consolidated Statement of Changes in Equity

for the year ended 31st May 2025

| Called up |

| share |  | Retained |  | Total

| capital |  | earnings |  | equity

£ | £ | £ |

Balance at 1st June 2023 | 100 |  | 33,798,752 |  | 33,798,852 |  |

Changes in equity

Total comprehensive income | - |  | 1,314,848 |  | 1,314,848 |  |

Balance at 31st May 2024 | 100 |  | 35,113,600 |  | 35,113,700 |  |

Changes in equity

Total comprehensive income | - |  | 2,314,881 |  | 2,314,881 |  |

Balance at 31st May 2025 | 100 |  | 37,428,481 |  | 37,428,581 |  |

| H.E. Group Ltd (Registered number: 02079614) |

Company Statement of Changes in Equity

for the year ended 31st May 2025

| Called up |

| share |  | Retained |  | Total

| capital |  | earnings |  | equity

£ | £ | £ |

Balance at 1st June 2023 | 100 |  | 28,346,401 |  | 28,346,501 |  |

Changes in equity

Total comprehensive income | - |  | 975,882 |  | 975,882 |  |

Balance at 31st May 2024 | 100 |  | 29,322,283 |  | 29,322,383 |  |

Changes in equity

Total comprehensive income | - |  | 2,034,985 |  | 2,034,985 |  |

Balance at 31st May 2025 | 100 |  | 31,357,268 |  | 31,357,368 |  |

| H.E. Group Ltd (Registered number: 02079614) |

Consolidated Cash Flow Statement

for the year ended 31st May 2025

| 2025 |  | 2024

| Notes | £ | £ |

Cash flows from operating activities

Cash generated from operations | 1 | 13,572,913 |  | 13,187,835 |  |

Tax paid | (118,486 | ) | (833,930 | ) |

Net cash from operating activities | 13,454,427 |  | 12,353,905 |  |

Cash flows from investing activities

Purchase of tangible fixed assets | (20,859,151 | ) | (29,522,549 | ) |

Sale of tangible fixed assets | 7,365,967 |  | 12,615,535 |  |

Interest received | 276,342 |  | 253,999 |  |

Net cash from investing activities | (13,216,842 | ) | (16,653,015 | ) |

Cash flows from financing activities

Loan repayments in year | - |  | (129,157 | ) |

Finance costs | (2,333,604 | ) | (1,941,422 | ) |

Movement on hire purchase contracts | (2,858,078 | ) | 8,482,781 |  |

Net cash from financing activities | (5,191,682 | ) | 6,412,202 |  |

(Decrease)/increase in cash and cash equivalents | (4,954,097 | ) | 2,113,092 |  |

Cash and cash equivalents at beginning of year | 2 | 7,497,541 |  | 5,384,449 |  |

Cash and cash equivalents at end of year | 2 | 2,543,444 |  | 7,497,541 |  |

| H.E. Group Ltd (Registered number: 02079614) |

Notes to the Consolidated Cash Flow Statement

for the year ended 31st May 2025

1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

| 2025 |  | 2024

£ | £ |

| Profit before taxation | 3,110,105 |  | 1,784,630 |  |

| Depreciation charges | 12,922,927 |  | 12,317,272 |  |

| Profit on disposal of fixed assets | (2,387,744 | ) | (3,275,626 | ) |

| Finance costs | 2,333,604 |  | 1,941,422 |  |

| Finance income | (276,342 | ) | (253,999 | ) |

15,702,550 |  | 12,513,699 |  |

| Decrease in stocks | 83,568 |  | 90,147 |  |

| (Increase)/decrease in trade and other debtors | (1,073,205 | ) | 206,874 |  |

| (Decrease)/increase in trade and other creditors | (1,140,000 | ) | 377,115 |  |

| Cash generated from operations | 13,572,913 |  | 13,187,835 |  |

2. | CASH AND CASH EQUIVALENTS

| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

| Year ended 31st May 2025

| 31.5.25 |  | 1.6.24

£ | £ |

| Cash and cash equivalents | 2,543,444 |  | 7,497,541 |  |

| Year ended 31st May 2024

| 31.5.24 |  | 1.6.23

£ | £ |

| Cash and cash equivalents | 7,497,541 |  | 5,384,449 |  |

3. | ANALYSIS OF CHANGES IN NET DEBT

| At 1.6.24 | Cash flow | At 31.5.25

£ | £ | £ |

| Net cash |

| Cash at bank and in hand | 7,497,541 |  | (4,954,097 | ) | 2,543,444 |  |

7,497,541 |  | (4,954,097 | ) | 2,543,444 |  |

| Debt

| Finance leases | (37,683,608 | ) | 2,858,078 |  | (34,825,530 | ) |

(37,683,608 | ) | 2,858,078 |  | (34,825,530 | ) |

| Total | (30,186,067 | ) | (2,096,019 | ) | (32,282,086 | ) |

| H.E. Group Ltd (Registered number: 02079614) |

Notes to the Consolidated Financial Statements

for the year ended 31st May 2025

1. | STATUTORY INFORMATION

| H.E. Group Ltd 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 General Information page.

2. | ACCOUNTING POLICIES

| Basis of preparing the financial statements

| These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

| Basis of consolidation

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

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

| The accounts of H.E. Services (Plant Hire) Ltd and Masterhitch Europe Limited have been consolidated using the merger method of accounting as the original group was formed from a reconstruction whereby the ultimate shareholding and control of each entity was not changed as a result.

| Inter-company transactions, balances and unrealised gains on transactions between the parent company and its subsidiaries, which are related parties, are eliminated in full. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.

| Critical accounting judgements and key sources of estimation uncertainty

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

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

| In preparing the financial statements the directors have made the following judgements:

| Determining the useful lives and depreciation policies for the group's various classes of tangible fixed assets. The directors base these estimates on past performance and industry trends to ensure that the depreciation policy used is sufficient so that the carrying value does not exceed its net realisable value.

| Turnover

| Turnover is measured at the fair value of the consideration received or receivable from the provision of goods and services, excluding discounts, rebates, value added tax and other sales taxes.

| Tangible fixed assets

| Tangible fixed assets are stated in the balance sheet at cost less accumulated depreciation. The cost of tangible fixed assets includes directly attributable costs incurred in their acquisition and installation.

| H.E. Group Ltd (Registered number: 02079614) |

Notes to the Consolidated Financial Statements - continued

for the year ended 31st May 2025

2. | ACCOUNTING POLICIES - continued

| Depreciation

| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

| Land and buildings comprises predominantly of the group's freehold land and buildings at its Strood headquarters together with smaller sites at Castleford, Droitwich and Okehampton. Land is not depreciated, nor are freehold buildings on the basis that the estimated lives are deemed to be so long and the estimated residual values so high that any charge for depreciation would be considered trivial. Freehold property also includes some minor property improvements that are depreciated at 2% straight line per annum, which accounts for the small depreciation charge shown in the financial statements.

| Plant and machinery comprises of electric vehicles and other plant. Electric vehicles are depreciated at 17.5% on a reducing balance basis. Other plant is depreciated at 17.5% on a reducing balance basis or 10% straight line.

| Fixtures and fittings are depreciated at 25% on a reducing balance basis or between 10% and 15% on a straight line basis.

| Motor vehicles are depreciated at 17.5% on a reducing balance basis.

| An impairment review is carried out annually and full provision is made in the accounts for any impairment.

| Investment property

| The group's investment properties are included at fair value. Fair value gains and losses are recognised in the Income Statement. Deferred taxation is provided on these gains.

| The directors consider that the fair value of the properties continues to be equal to the cost.

| Stocks

| Stocks are stated at the lower of cost and net realisable value. Cost is determined using a first-in, first-out method.

| Stock of work in progress and finished goods are valued based on the cost of materials and a proportion of production overheads. The allocation of production overheads is based on the length of time stock items are worked on.

| Stock items are regularly reviewed to determine if the net realisable value has fallen below the carrying amount.

| H.E. Group Ltd (Registered number: 02079614) |

Notes to the Consolidated Financial Statements - continued

for the year ended 31st May 2025

2. | ACCOUNTING POLICIES - continued

| Financial instruments

| Financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

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

| Financial assets and liabilities are only offset in the balance sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

| Debt instruments that comply with all of the conditions of paragraph 11.9 of FRS 102 are classified as 'basic'. For debt instruments that do not meet the conditions of FRS 102.11.9, the group considers whether the debt instrument is consistent with the principle in paragraph 11.9A of FRS 102 in order to determine whether it can be classified as basic. Instruments classified as 'basic' financial instruments are measured subsequently at amortised cost using the effective interest method. Debt instruments that have no stated interest rate (and do not constitute financing transaction) and are classified as payable or receivable within one year are initially measured at an undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

| With the exception of some hedging instruments, other debt instruments not meeting conditions of being 'basic' financial instruments are measured at fair value through profit or loss.

| Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.

| Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the group transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the group, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

| Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

| Taxation

| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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.

| H.E. Group Ltd (Registered number: 02079614) |

Notes to the Consolidated Financial Statements - continued

for the year ended 31st May 2025

2. | ACCOUNTING POLICIES - continued

| 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.

| Government grants

| The company adopts the accrual model for accounting for government grants. Government grants in relation to revenue are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.

| Foreign currencies

| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

| Pension costs and other post-retirement benefits

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

| Operating lease agreements

| Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against on a straight line basis over the period of the lease.

3. | TURNOVER

| An analysis of turnover by class of business is given below:

|  | 2025 |  | 2024 |  |

| £ |  | £ |  |

| Sale of goods |  | 456,396 |  | 180,397 |  |

| Rendering of services |  | 27,280,951 |  | 24,414,690 |  |

|  | 27,737,347 |  | 24,595,087 |  |

| Turnover has not been analysed by geographical market since the markets in which the group operates are extremely competitive and the directors consider disclosure would seriously prejudice the group's trading in those areas.

4. | OTHER OPERATING INCOME

| 2025 |  | 2024

£ | £ |

| Rents receivable | 1,985,051 |  | 2,036,802 |  |

| Government grants | 249,233 |  | 285,923 |  |

2,234,284 |  | 2,322,725 |  |

| H.E. Group Ltd (Registered number: 02079614) |

Notes to the Consolidated Financial Statements - continued

for the year ended 31st May 2025

5. | EMPLOYEES AND DIRECTORS

| 2025 |  | 2024

£ | £ |

| Wages and salaries | 6,915,987 |  | 6,753,672 |  |

| Social security costs | 573,835 |  | 537,024 |  |

| Other pension costs | 96,427 |  | 97,563 |  |

7,586,249 |  | 7,388,259 |  |

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

| 2025 |  | 2024

| Direct | 110 |  | 149 |  |

| Administration and support | 77 |  | 81 |  |

| Management | 6 |  | 6 |  |

193 |  | 236 |  |

|  | 2025 |  | 2024 |  |

| £ |  | £ |  |

| Directors' remuneration |  | 246,457 |  | 285,504 |  |

| Directors' pension contributions to money purchase schemes |  | 3,535 |  | 3,865 |  |

| The number of directors to whom retirement benefits were accruing was as follows:

| Money purchase schemes |  | 3 |  | 3 |  |

6. | OPERATING PROFIT

| The operating profit is stated after charging/(crediting):

| 2025 |  | 2024

£ | £ |

| Depreciation - owned assets | 12,922,927 |  | 12,317,272 |  |

| Bad debts | 158,545 |  | 371,415 |  |

| Foreign exchange profits/(losses) | (15,770 | ) | (30,390 | ) |

| Joint venture profits/(losses) | 48,884 |  | 45,890 |  |

| Profit on disposal of fixed assets | 2,387,744 |  | 3,275,626 |  |

| Operating lease payments | 1,412,435 |  | 1,150,662 |  |

| H.E. Group Ltd (Registered number: 02079614) |

Notes to the Consolidated Financial Statements - continued

for the year ended 31st May 2025

7. | AUDITORS' REMUNERATION

| The audit fee stated in the financial statements is made up of the following services

|  | 2025 |  | 2024 |  |

|  | £ |  | £ |  |

| Fees payable to the company’s auditor for the audit of the |  |

| company’s annual accounts |  | 15,000 |  | 12,500 |  |

| Fees payable to the company’s auditor for other services: |  |

| Audit of the accounts of subsidiaries |  | 12,300 |  | 11,750 |  |

| Non-audit related services |  | 4,634 |  | 4,604 |  |

|  | 31,934 |  | 28,854 |  |

8. | INTEREST RECEIVABLE AND SIMILAR INCOME |

| 2025 |  | 2024

£ | £ |

| Finance income | 276,342 |  | 253,999 |  |

9. | INTEREST PAYABLE AND SIMILAR EXPENSES |

| 2025 |  | 2024

£ | £ |

| Bank loan interest payable | - |  | 5,593 |  |

| Other interest payable | 48,395 |  | 148,410 |  |

| Hire purchase interest | 2,285,209 |  | 1,787,419 |  |

2,333,604 |  | 1,941,422 |  |

10. | TAXATION

| Analysis of the tax charge

| The tax charge on the profit for the year was as follows:

| 2025 |  | 2024

£ | £ |

| Current tax:

| UK corporation tax | 661,112 |  | 118,486 |  |

| Deferred tax | 134,112 |  | 351,296 |  |

| Tax on profit | 795,224 |  | 469,782 |  |

| H.E. Group Ltd (Registered number: 02079614) |

Notes to the Consolidated Financial Statements - continued

for the year ended 31st May 2025

10. | TAXATION - continued

| Reconciliation of total tax charge included in profit and loss

| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

| 2025 |  | 2024

£ | £ |

| Profit before tax | 3,110,105 |  | 1,784,630 |  |

| Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2024 - 25 %) | 777,526 |  | 446,158 |  |

| Effects of:

| Expenses not deductible for tax purposes | 14,138 |  | 23,361 |  |

| Depreciation in excess of capital allowances | 412,295 |  | 408,347 |  |

| Utilisation of tax losses | - |  | (34,629 | ) |

| Profit on disposal | (542,997 | ) | (755,710 | ) |

| Chargeable gains | 150 |  | 30,959 |  |

| Deferred tax provision | 134,112 |  | 351,296 |  |

| Total tax charge | 795,224 |  | 469,782 |  |

11. | INDIVIDUAL INCOME STATEMENT

| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

| H.E. Group Ltd (Registered number: 02079614) |

Notes to the Consolidated Financial Statements - continued

for the year ended 31st May 2025

12. | TANGIBLE FIXED ASSETS

| Group

| Fixtures |

| Land and |  | Plant and |  | and |  | Motor |

| buildings |  | machinery |  | fittings |  | vehicles |  | Totals

£ | £ | £ | £ | £ |

| COST

| At 1st June 2024 | 4,803,641 |  | 98,040,446 |  | 1,301,220 |  | 320,712 |  | 104,466,019 |  |

| Additions | - |  | 20,826,588 |  | 32,563 |  | - |  | 20,859,151 |  |

| Disposals | - |  | (12,078,834 | ) | - |  | (74,358 | ) | (12,153,192 | ) |

| Reclassification | (839,000 | ) | - |  | - |  | - |  | (839,000 | ) |

| At 31st May 2025 | 3,964,641 |  | 106,788,200 |  | 1,333,783 |  | 246,354 |  | 112,332,978 |  |

| DEPRECIATION

| At 1st June 2024 | 89,748 |  | 33,564,359 |  | 998,916 |  | 290,383 |  | 34,943,406 |  |

| Charge for year | 1,113 |  | 12,841,839 |  | 74,747 |  | 5,228 |  | 12,922,927 |  |

| Eliminated on disposal | - |  | (7,105,333 | ) | - |  | (69,636 | ) | (7,174,969 | ) |

| At 31st May 2025 | 90,861 |  | 39,300,865 |  | 1,073,663 |  | 225,975 |  | 40,691,364 |  |

| NET BOOK VALUE

| At 31st May 2025 | 3,873,780 |  | 67,487,335 |  | 260,120 |  | 20,379 |  | 71,641,614 |  |

| At 31st May 2024 | 4,713,893 |  | 64,476,087 |  | 302,304 |  | 30,329 |  | 69,522,613 |  |

| A property was reclassified from a tangible asset to an investment property in the period following a change of use.

| ASSETS HELD UNDER FINANCE LEASES AND HIRE PURCHASE CONTRACTS

| The net carrying amount of tangible assets include the following amounts in respect of assets held under finance leases and hire purchase contracts:

|  | 2025 |  | 2024 |  |

| £ |  | £ |  |

| Plant and machinery |  | 50,350,767 |  | 44,524,277 |  |

| H.E. Group Ltd (Registered number: 02079614) |

Notes to the Consolidated Financial Statements - continued

for the year ended 31st May 2025

12. | TANGIBLE FIXED ASSETS - continued

| Company

| Fixtures |

| Land and |  | Plant and |  | and |  | Motor |

| buildings |  | machinery |  | fittings |  | vehicles |  | Totals

£ | £ | £ | £ | £ |

| COST

| At 1st June 2024 | 4,803,641 |  | 97,415,229 |  | 1,246,000 |  | 320,712 |  | 103,785,582 |  |

| Additions | - |  | 20,520,343 |  | 32,158 |  | - |  | 20,552,501 |  |

| Disposals | - |  | (12,077,459 | ) | - |  | (74,358 | ) | (12,151,817 | ) |

| Reclassification | (839,000 | ) | - |  | - |  | - |  | (839,000 | ) |

| At 31st May 2025 | 3,964,641 |  | 105,858,113 |  | 1,278,158 |  | 246,354 |  | 111,347,266 |  |

| DEPRECIATION

| At 1st June 2024 | 89,748 |  | 33,026,274 |  | 953,194 |  | 290,383 |  | 34,359,599 |  |

| Charge for year | 1,113 |  | 12,795,534 |  | 72,232 |  | 5,228 |  | 12,874,107 |  |

| Eliminated on disposal | - |  | (7,104,044 | ) | - |  | (69,636 | ) | (7,173,680 | ) |

| At 31st May 2025 | 90,861 |  | 38,717,764 |  | 1,025,426 |  | 225,975 |  | 40,060,026 |  |

| NET BOOK VALUE

| At 31st May 2025 | 3,873,780 |  | 67,140,349 |  | 252,732 |  | 20,379 |  | 71,287,240 |  |

| At 31st May 2024 | 4,713,893 |  | 64,388,955 |  | 292,806 |  | 30,329 |  | 69,425,983 |  |

| A property was reclassified from a tangible asset to an investment property in the period following a change of use.

| ASSETS HELD UNDER FINANCE LEASES AND HIRE PURCHASE CONTRACTS

| The net carrying amount of tangible assets include the following amounts in respect of assets held under finance leases and hire purchase contracts:

|  | 2025 |  | 2024 |  |

| £ |  | £ |  |

| Plant and machinery |  | 50,350,767 |  | 44,524,277 |  |

| H.E. Group Ltd (Registered number: 02079614) |

Notes to the Consolidated Financial Statements - continued

for the year ended 31st May 2025

13. | FIXED ASSET INVESTMENTS

| Company

| Shares in

| group

| undertakings

£ |

| COST

| At 1st June 2024

| and 31st May 2025 | 25 |  |

| NET BOOK VALUE

| At 31st May 2025 | 25 |  |

| At 31st May 2024 | 25 |  |

| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

| Subsidiaries

| H. E. Services (Plant Hire) Ltd

| Registered office: Whitewall Centre, Whitewall Road, Medway City Estate, Rochester, England, ME2 4DZ

| Nature of business: Plant Hire

| %

| Class of shares: | holding |

| Ordinary shares | 100.00 |

| 31.5.25 |  | 31.5.24

£ | £ |

| Aggregate capital and reserves | 5,337,075 |  | 5,072,843 |  |

| Profit for the year | 264,232 |  | 125,843 |  |

| Masterhitch Europe Limited

| Registered office: Whitewall Centre, Whitewall Road, Medway City Estate, Rochester, England, ME2 4DZ

| Nature of business: Manufacture and augmentation of machinery

| %

| Class of shares: | holding |

| Ordinary | 100.00 |

| 31.5.25 |  | 31.5.24

£ | £ |

| Aggregate capital and reserves | 745,942 |  | 730,278 |  |

| Profit for the year | 15,664 |  | 213,124 |  |

| Diggers Direct Limited

| Registered office: Whitewall Centre, Whitewall Road, Medway City Estate, Rochester, England, ME2 4DZ

| Nature of business: Dormant

| %

| Class of shares: | holding |

| Ordinary | 100.00 |

| 31.5.25 |  | 31.5.24

£ | £ |

| Aggregate capital and reserves | 1 |  | 1 |  |

| H.E. Group Ltd (Registered number: 02079614) |

Notes to the Consolidated Financial Statements - continued

for the year ended 31st May 2025

13. | FIXED ASSET INVESTMENTS - continued

| Diggerworld Limited

| Registered office: 1 Garden Cottages, Court Lodge, Shorne, Gravesend, Kent, DA12 3EG

| Nature of business: Dormant

| %

| Class of shares: | holding |

| Ordinary | 100.00 |

| 31.12.24 |  | 31.12.23

£ | £ |

| Aggregate capital and reserves | 1 |  | 1 |  |

| H.E. Construction Services Limited

| Registered office: Whitewall Centre, Whitewall Road, Medway City Estate, Rochester, England, ME2 4DZ

| Nature of business: Dormant

| %

| Class of shares: | holding |

| Ordinary | 100.00 |

| 31.5.25 |  | 31.5.24

£ | £ |

| Aggregate capital and reserves | (11,780 | ) | (11,780 | ) |

| H.E. Services Limited

| Registered office: Whitewall Centre, Whitewall Road, Medway City Estate, Rochester, England, ME2 4DZ

| Nature of business: Dormant

| %

| Class of shares: | holding |

| Ordinary | 100.00 |

| 31.5.25 |  | 31.5.24

£ | £ |

| Aggregate capital and reserves | 1 |  | 1 |  |

| Hy-Tools Limited

| Registered office: Whitewall Centre, Whitewall Road, Medway City Estate, Rochester, England, ME2 4DZ

| Nature of business: Dormant

| %

| Class of shares: | holding |

| Ordinary | 100.00 |

| 31.5.25 |  | 31.5.24

£ | £ |

| Aggregate capital and reserves | 1 |  | 1 |  |

| H.E. Group Ltd (Registered number: 02079614) |

Notes to the Consolidated Financial Statements - continued

for the year ended 31st May 2025

13. | FIXED ASSET INVESTMENTS - continued

| Diggerland Limited

| Registered office: Whitewall Centre, Whitewall Road, Medway City Estate, Rochester, England, ME2 4DZ

| Nature of business: Dormant

| %

| Class of shares: | holding |

| Ordinary | 100.00 |

| 31.12.24 |  | 31.12.23

£ | £ |

| Aggregate capital and reserves | 1 |  | 1 |  |

| Buyadigger Limited

| Registered office: Whitewall Centre, Whitewall Road, Medway City Estate, Rochester, England, ME2 4DZ

| Nature of business: Dormant

| %

| Class of shares: | holding |

| Ordinary | 100.00 |

| 31.5.25 |  | 31.5.24

£ | £ |

| Aggregate capital and reserves | 2 |  | 2 |  |

14. | INVESTMENT PROPERTY

| Group

| Total

£ |

| FAIR VALUE

| At 1st June 2024 | 2,340,695 |  |

| Reclassification | 839,000 |  |

| At 31st May 2025 | 3,179,695 |  |

| NET BOOK VALUE

| At 31st May 2025 | 3,179,695 |  |

| At 31st May 2024 | 2,340,695 |  |

| A property was reclassified from a tangible asset to an investment property in the period following a change of use.

| H.E. Group Ltd (Registered number: 02079614) |

Notes to the Consolidated Financial Statements - continued

for the year ended 31st May 2025

14. | INVESTMENT PROPERTY - continued

| Company

| Total

£ |

| FAIR VALUE

| At 1st June 2024 | 2,340,695 |  |

| Reclassification | 839,000 |  |

| At 31st May 2025 | 3,179,695 |  |

| NET BOOK VALUE

| At 31st May 2025 | 3,179,695 |  |

| At 31st May 2024 | 2,340,695 |  |

| A property was reclassified from a tangible asset to an investment property in the period following a change of use.

15. | STOCKS

| Group |  | Company |

2025 | 2024 | 2025 | 2024 |

£ | £ | £ | £ |

| Raw materials | 684,294 |  | 707,450 |  | - |  | - |  |

| Work-in-progress | 115,122 |  | 137,850 |  | - |  | - |  |

| Finished goods | 328,138 |  | 365,822 |  | 78,371 |  | 65,241 |  |

1,127,554 |  | 1,211,122 |  | 78,371 |  | 65,241 |  |

16. | DEBTORS

| Group |  | Company |

2025 | 2024 | 2025 | 2024 |

£ | £ | £ | £ |

| Amounts falling due within one year: |

| Trade debtors | 4,242,141 |  | 3,785,793 |  | 501,759 |  | 856,151 |  |

| Other debtors and prepayments | 684,938 |  | 634,986 |  | 1,182,455 |  | 1,021,550 |  |

4,927,079 |  | 4,420,779 |  | 1,684,214 |  | 1,877,701 |  |

| Amounts falling due after more than one | year: |

| Other debtors | 566,905 |  | - |  | 566,905 |  | - |  |

| Aggregate amounts | 5,493,984 |  | 4,420,779 |  | 2,251,119 |  | 1,877,701 |  |

| H.E. Group Ltd (Registered number: 02079614) |

Notes to the Consolidated Financial Statements - continued

for the year ended 31st May 2025

17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

| Group |  | Company |

2025 | 2024 | 2025 | 2024 |

£ | £ | £ | £ |

| Hire purchase contracts (see note 19) | 19,086,196 |  | 18,591,664 |  | 19,086,196 |  | 18,591,664 |  |

| Trade creditors | 755,478 |  | 1,588,300 |  | 507,856 |  | 1,235,252 |  |

| Amounts owed to group undertakings | - |  | - |  | 1,768,254 |  | 2,203,717 |  |

| Corporation tax | 661,112 |  | 118,486 |  | 626,094 |  | 39,729 |  |

| Social security and other taxes | 231,378 |  | 156,063 |  | 35,905 |  | 42,937 |  |

| Other creditors and accruals | 2,773,259 |  | 3,155,752 |  | 2,293,441 |  | 2,915,375 |  |

23,507,423 |  | 23,610,265 |  | 24,317,746 |  | 25,028,674 |  |

18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |

| Group |  | Company |

2025 | 2024 | 2025 | 2024 |

£ | £ | £ | £ |

| Hire purchase contracts (see note 19) | 15,739,334 |  | 19,091,944 |  | 15,739,334 |  | 19,091,944 |  |

| Ordinary A shares | 400,000 |  | 400,000 |  | 400,000 |  | 400,000 |  |

16,139,334 |  | 19,491,944 |  | 16,139,334 |  | 19,491,944 |  |

| Details of shares shown as liabilities are as follows:

| Allotted, issued and fully paid:

| Number: |  | Class: |  |  | Nominal |  | 2025 |  | 2024 |  |

|  | value: |  | £ |  | £ |  |

| 400,000 |  | Ordinary A |  |  | £1 |  | 400,000 |  | 400,000 |  |

| Ordinary A shares are non voting and not entitled to assets on a winding up in excess of their nominal value. Dividends were cumulative and paid at 7% of nominal value or based on a share of the profits up until 15 November 2025 when the share rights were changed. After 15 November 2025 dividends will be paid at the discretion of the directors. The nominal value of Ordinary A shares is recognised as a financial liability. Ordinary A share dividends are recognised as finance costs.

| Ordinary A share dividends have been accruing since 15 November 2005. There were accrued dividends of £468,126 at 31 May 2025 (2024 - £440,126).

| H.E. Group Ltd (Registered number: 02079614) |

Notes to the Consolidated Financial Statements - continued

for the year ended 31st May 2025

19. | LEASING AGREEMENTS

| Minimum lease payments fall due as follows:

| Group

| Hire purchase |

| contracts |

2025 | 2024 |

£ | £ |

| Net obligations repayable:

| Within one year | 19,086,196 |  | 18,591,664 |  |

| Between one and five years | 15,739,334 |  | 19,091,944 |  |

34,825,530 |  | 37,683,608 |  |

| Company

| Hire purchase |

| contracts |

2025 | 2024 |

£ | £ |

| Net obligations repayable:

| Within one year | 19,086,196 |  | 18,591,664 |  |

| Between one and five years | 15,739,334 |  | 19,091,944 |  |

34,825,530 |  | 37,683,608 |  |

20. | SECURED DEBTS

| The following secured debts are included within creditors:

| Group |  | Company |

2025 | 2024 | 2025 | 2024 |

£ | £ | £ | £ |

| Hire purchase contracts | 34,825,530 |  | 37,683,608 |  | 34,825,530 |  | 37,683,608 |  |

| Obligations under hire purchase contracts are secured on the assets concerned.

| H.E. Group Ltd (Registered number: 02079614) |

Notes to the Consolidated Financial Statements - continued

for the year ended 31st May 2025

21. | OPERATING LEASES RECEIVABLE

| The total future lease payments receivable are as follows:

|  | 2025 |  | 2024 |  |

| £ |  | £ |  |

| Within one year |  | 1,046,246 |  | 1,122,774 |  |

| Between one and five years |  | 2,260,961 |  | 2,429,100 |  |

| Later than five years |  | 3,122,921 |  | 3,380,915 |  |

|  | 6,430,128 |  | 6,932,789 |  |

| OPERATING LEASES PAYABLE

| The total future lease payments are as follows:

|  | 2025 |  | 2024 |  |

| £ |  | £ |  |

| Within one year |  | 1,680,654 |  | 980,569 |  |

| Between one and five years |  | 2,761,496 |  | 1,211,481 |  |

|  | 4,442,150 |  | 2,192,050 |  |

22. | PROVISIONS FOR LIABILITIES

| Group |  | Company |

2025 | 2024 | 2025 | 2024 |

£ | £ | £ | £ |

| Deferred tax | 6,910,953 |  | 6,776,841 |  | 6,840,483 |  | 6,774,527 |  |

| Group

| Deferred |

| tax |

£ |

| Balance at 1st June 2024 | 6,776,841 |  |

| Provided during the year | 134,112 |  |

| Balance at 31st May 2025 | 6,910,953 |  |

| Company

| Deferred |

| tax |

£ |

| Balance at 1st June 2024 | 6,774,527 |  |

| Provided during the year | 65,956 |  |

| Balance at 31st May 2025 | 6,840,483 |  |

| H.E. Group Ltd (Registered number: 02079614) |

Notes to the Consolidated Financial Statements - continued

for the year ended 31st May 2025

23. | CALLED UP SHARE CAPITAL

| Allotted, issued and fully paid:

| Number: |  | Class: |  |  | Nominal |  | 2025 |  | 2024 |  |

|  | value: |  | £ |  | £ |  |

| 100 |  | Ordinary |  |  | £1 |  | 100 |  | 100 |  |

| Ordinary shares have full rights in respect of voting, entitlement to dividends and assets on a winding up.

24. | RELATED PARTY DISCLOSURES

| The group had transactions with key management personnel as follows:

| Related Party |  | Transaction details |  | 2025 |  | 2024 |  |

|  | £ |  | £ |  |

| Key Management Personnel |  | Sales |  | 38,786 |  | 37,273 |  |

|  | Indirect expenses |  | 211,137 |  | 206,037 |  |

|  | Other creditors |  | 1,131,465 |  | 1,313,070 |  |

| Other related parties with material transactions existed during the period. The nature of the relationship for each of them was that of shared individuals controlling the businesses and close family members of key management personnel.

| Related Party |  | Transaction details |  | 2025 |  | 2024 |  |

|  | £ |  | £ |  |

| Other related parties |  | Sales |  | 757,786 |  | 815,249 |  |

|  | Interest receivable |  | 53,917 |  | - |  |

|  | Indirect expenses |  | 284,189 |  | 379,962 |  |

|  | Other debtors |  | 770,534 |  | 111,391 |  |

|  | Other creditors |  | 251,200 |  | 237,385 |  |

| No amounts were written off in the year. |

25. | ULTIMATE CONTROLLING PARTY

| The ultimate controlling party is H R Edeleanu.