ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

Registered number: 01164271

SWANN ENGINEERING GROUP LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

SWANN ENGINEERING GROUP LIMITED

COMPANY INFORMATION

Directors	M D Parrett
	J A Carlton


Registered number	01164271


Registered office	6 Springwood Drive
	Braintree
	CM7 2YN


Independent auditors	Barnes Roffe Audit Limited
	Chartered Accountants & Statutory Auditor
	Charles Lake House
	Claire Causeway
	Crossways Business Park
	Dartford
	Kent
	DA2 6QA


Bankers	HSBC Bank Plc
	99 High Street
	Chelmsford
	Essex
	CM1 1EQ


Solicitors	Pennington Manches LLP
	Abacus House
	33 Gutter Lane
	London
	EC2V 8AR

SWANN ENGINEERING GROUP LIMITED

CONTENTS

	Page
Strategic report	1
Directors' report	2 - 3
Independent auditors' report	4 - 7
Statement of comprehensive income	8
Balance sheet	9 - 10
Statement of changes in equity	11
Notes to the financial statements	12 - 27

SWANN ENGINEERING GROUP LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2025

Introduction

Swann Engineering Group Ltd is a multidisciplinary engineering company that designs, manufactures, installs, inspects and maintains specialist steel structures for the telecoms, house building, air traffic control, defence and industrial lighting industries.

Business review

Overall sales decreased by 11% (£19.6m to £17.4), as gains in Telecoms were outweighed by a strategic, planned reduction in Structural and Architectural Steelwork and lower sales in Specialist Structures. Despite lower revenue, gross profit rose from £5.0m to £6.46m.

The company is well positioned for 2025–2026 with products specified against significant infrastructure projects and active programmes with telecoms customers. Workload is expected to be balanced across manufacturing, design and inspection, with many significant opportunities ahead, including a major industry merger, 5G telecoms deployments, and the renewal of aged infrastructure.

The Structural & Architectural Steelwork business unit for housebuilding carries an order book of £1.5m into 2025–2026.

The business continues to invest in internal research and development with a focus on emerging telecoms opportunities. Investment has been made in new facilities, facilities improvements and employee training including successful apprenticeship schemes at both trade and degree levels.

Principal risks and uncertainties

The principal risks facing the company include delays to planned build programmes and the potential loss of key clients or contracts. The diversified nature of the business provides a strong structural safeguard against these risks, reinforced by our proactive business development efforts and effective relationship management practices.

To mitigate contract risks, we implement robust management policies, focusing on key areas such as bidding, contract review, credit control, and managing programme and scope creep. These measures ensure that we maintain operational and financial resilience and minimise potential disruptions.

Financial key performance indicators

The directors utilise revenue per employee as a key performance indicator to assess growth and stability. In March 2024, the revenue per employee stood at £162k and £151k for the year ended 31 March 2025.

This report was approved by the board on 30 October 2025 and signed on its behalf.

M D Parrett

Director

Page 1

SWANN ENGINEERING 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

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 judgments 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 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.

Results and dividends

The profit for the year, after taxation, amounted to £2,337,704 (2024 - £1,775,777).

Directors

The directors who served during the year were:

M D Parrett

J A Carlton

Disclosure of information to auditors

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.

Auditors

After the year end Barnes Roffe LLP resigned as auditors due to the transfer of its audit business and its successor Barnes Roffe Audit Limited was appointed by the directors under s485 Companies Act 2006.

Page 2

SWANN ENGINEERING GROUP LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

This report was approved by the board on 30 October 2025 and signed on its behalf.

M D Parrett

Director

Page 3

SWANN ENGINEERING GROUP LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SWANN ENGINEERING GROUP LIMITED

Opinion

We have audited the financial statements of Swann Engineering Group Limited (the 'company') for the year ended 31 March 2025, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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

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.

Page 4

SWANN ENGINEERING GROUP LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SWANN ENGINEERING GROUP LIMITED (CONTINUED)

Other information

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

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

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

As explained more fully in the Directors' responsibilities statement set out on page 2, 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.

Page 5

SWANN ENGINEERING GROUP LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SWANN ENGINEERING GROUP LIMITED (CONTINUED)

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 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with law 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 company through discussion with directors and

other management, and from our commercial knowledge and experience of the industry which the

company operates in;

• The specific laws and regulations which we considered may have a direct material effect on the financial

statements or the operations of the company, are as follows;

o Companies Act 2006

o FRS102

o Health and Safety legislation

o Environmental legislation

o Employment legislation

o Tax legislation

o ISO standards 9001 and 14001

• We assessed the extent of compliance with the laws and regulations identified above through making

enquiries of management, reviewing board minutes and inspecting relevant correspondence; and

• Laws and regulations were communicated within the audit team at the planning meeting, and during the

audit as any further laws and regulation were identified. The audit team remained alert to instances of

non- compliance throughout the audit

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

• Making enquires of management as to where they consider there was susceptibility to fraud and their

knowledge of actual suspected and alleged fraud;

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

regulations;

• Reviewing the financial statements and testing the disclosures against supporting documentation;

• Performing analytical procedures to identify any unusual or unexpected trends or anomalies;

• Inspecting and testing journal entries to identify unusual or unexpected transactions;

• Assessing whether judgement and assumptions made in determining significant accounting estimates,

including stock provisions and the useful economic lives of tangible fixed assets, were indicative of

management bias; and

• Investigating the rationale behind significant transactions, or transactions that are unusual or outside the

company’s usual course of business.

Page 6

SWANN ENGINEERING GROUP LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SWANN ENGINEERING GROUP LIMITED (CONTINUED)

The areas that we identified as being susceptible to misstatement through fraud were:

• Management bias in the estimates and judgements made;

• Management override of controls; and

• Posting of unusual journals or transactions.

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.

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 Auditors' report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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.

Mario Cientanni (Senior statutory auditor)

for and on behalf of

Barnes Roffe Audit Limited

Chartered Accountants

Statutory Auditor

Charles Lake House

Claire Causeway

Crossways Business Park

Dartford

Kent

DA2 6QA

Date: 13 November 2025

Page 7

SWANN ENGINEERING GROUP LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2025

	2025	2024
Note	£	£


Turnover	4	17,385,266	19,630,117
Cost of sales		(10,900,236)	(14,602,826)
Gross profit		6,485,030	5,027,291
Administrative expenses		(3,273,824)	(2,883,167)
Operating profit	5	3,211,206	2,144,124
Interest receivable and similar income	9	33,519	-
Interest payable and similar expenses	10	(118,936)	(158,287)
Profit before tax		3,125,789	1,985,837
Tax on profit	11	(788,085)	(210,060)
Profit for the financial year		2,337,704	1,775,777

There were no recognised gains and losses for 2025 or 2024 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 12 to 27 form part of these financial statements.

Page 8

SWANN ENGINEERING GROUP LIMITED

REGISTERED NUMBER: 01164271

BALANCE SHEET

AS AT 31 MARCH 2025

		As restated
	2025	2024
Note	£	£

Fixed assets
Intangible assets	13		134,860		291,346
Tangible assets	14		1,237,715		1,262,211
			1,372,575		1,553,557
Current assets
Stocks	15	975,393		1,223,922
Debtors: amounts falling due within one year	16	4,340,529		8,857,371
Cash at bank and in hand	17	2,924,465		410,198
		8,240,387		10,491,491
Creditors: amounts falling due within one year	18	(3,460,722)		(4,140,222)
Net current assets			4,779,665		6,351,269
Total assets less current liabilities			6,152,240		7,904,826
Creditors: amounts falling due after more than one year	19		(742,009)		(752,970)
Provisions for liabilities
Deferred tax	21		(127,453)		(137,373)
Net assets			5,282,778		7,014,483

Capital and reserves
Called up share capital	22	11,050	11,050
Share premium account		250,100	250,100
Capital redemption reserve		550	550
Profit and loss account		5,021,078	6,752,783
		5,282,778	7,014,483

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

M D Parrett

Director

Date: 30 October 2025

The notes on pages 12 to 27 form part of these financial statements.

Page 9

SWANN ENGINEERING GROUP LIMITED

REGISTERED NUMBER: 01164271

BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2025

Page 10

SWANN ENGINEERING GROUP LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2025

	Called up share capital	Share premium account	Capital redemption reserve	Profit and loss account	Total equity
	£	£	£	£	£
At 1 April 2024	11,050	250,100	550	6,752,783	7,014,483

Profit for the year	-	-	-	2,337,704	2,337,704
Dividends: Equity capital	-	-	-	(4,069,409)	(4,069,409)
At 31 March 2025	11,050	250,100	550	5,021,078	5,282,778

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2024

	Called up share capital	Share premium account	Capital redemption reserve	Profit and loss account	Total equity
	£	£	£	£	£
At 1 April 2023	11,050	250,100	550	4,977,006	5,238,706

Profit for the year	-	-	-	1,775,777	1,775,777
At 31 March 2024	11,050	250,100	550	6,752,783	7,014,483

The notes on pages 12 to 27 form part of these financial statements.

Page 11

SWANN ENGINEERING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

1.	General information

The company is a private company limited by share capital and incorporated in England & Wales with its registered office at: 6 Springwood Drive, Braintree, Essex, CM7 2YN. The principal activity of the company is that of a multidisciplinary engineering company that designs, manufactures, installs, inspects and maintains specialist steel structures for the telecoms, house building, air traffic control, defence and industrial lighting industries.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland 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 judgment in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

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

∙the requirements of Section 7 Statement of Cash Flows;

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

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

This information is included in the consolidated financial statements of Swann Group Limited as at 31 March 2025 and these financial statements may be obtained from Companies House.

Page 12

SWANN ENGINEERING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.3

Revenue

Revenue compromises the fair value of consideration received or receivable for the sale of steel fabrications and engineering services together with the design and supply of structural steelwork and managed services to the Communications, Broadcast, Utilities and Facility Management industries in the ordinary course of the company's activities. Revenue is shown net of value added tax.

The company recognises revenue when:
- the amount of revenue can be reliably measured;
- it is probable that future economic benefits will flow to the entity;
- the risks and rewards of ownership have been transferred to the buyer;
- and specific criteria have been met for the company's activities.

Long term contracts

Long term contracts are assessed on a contract by contract basis and reflected in the Statement of comprehensive income by recording revenue and related costs as contract activity progresses in order to reflect an accurate gross profit margin attributable to specific projects and this is assessed by management. Revenue is ascertained in a manner appropriate to the stages of completion of the contract and measured by reference to the value of work done in comparison to the total contract value. Credit is taken for profit earned to date when the outcome of the contract can be assessed with reasonable certainty. Where it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense as soon as it is foreseen.

Rendering of services

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

∙the amount of revenue can be measured reliably;

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

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

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

2.4

Operating leases: the company as lessee

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

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

Page 13

SWANN ENGINEERING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.5

Leased assets: the company as lessee

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

2.6

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.

If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

2.7

Interest income

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

2.8

Finance costs

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

2.9

Borrowing costs

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

2.10

Pensions

Defined contribution pension plan

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

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

Page 14

SWANN ENGINEERING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.11

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet 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 balance sheet 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 balance sheet date.

2.12

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

The estimated useful lives range as follows:

				Website development	-		Straight line over 5 years
				Development projects	-		Straight line over 2-6 years

2.13

Tangible fixed assets

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

Page 15

SWANN ENGINEERING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.13

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on following bases.

Land and buildings	-	Over the term of the lease
Plant and machinery	-	15% Reducing balance or straight line over 3-25 years
Motor vehicles	-	25% Reducing balance
Fixtures, fittings and computer equipment	-	15% Reducing balance or straight line over 3-10 years

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

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

2.14

Stocks and work in progress

Stocks of parts, sheet metal and steelwork are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell.

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

Work in progress represents costs incurred on ongoing telecom infrastructure projects and customer installations not yet complete at the reporting date. It includes direct materials, labour, subcontractor costs, and attributable overheads. Where applicable, revenue is recognised in line with the stage of completion of the service provided, in accordance with FRS 102.

2.15

Debtors

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

Amounts recoverable on contracts included within debtors represents the proportion of the job complete at the year end based upon labour hours completed at appropriate charge out rate together with the cost of materials used after an appropriate adjustment for gross profit margin.

2.16

Cash and cash equivalents

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

Page 16

SWANN ENGINEERING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.17

Creditors

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

2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.19

Dividends

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

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, which are described in Note 2, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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.

The areas in the financial statements where these judgements and estimates have been made include the following:

1. The company makes key assumptions regarding the useful economic life of both intangible and

tangible fixed assets and this is further decribed in notes 2.12 and 2.13 respectively.

2. The company makes key assumptions in determining whether leases entered into by the company

are operating leases or finance leases. These decisions depend on an assessment of whether the

risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by

lease basis.

3. The company makes key assumptions in determining whether development costs meet the criteria

for research to be recognised and capitalised as development costs or whether the costs should be

expensed to the Statement of comprehensive income.

4. The directors consider amounts recoverable on long term contracts, accrued income, work in

progress and cost accruals as a key area of estimation uncertainty in the company. The value of

work recoverable is assessed internally on a regular basis and reviewed for accuracy and

completeness. The directors do not feel it is necessary for third party valuations to be undertaken.

Page 17

SWANN ENGINEERING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Rendering of services	17,385,266	19,630,117
	17,385,266	19,630,117

All turnover arose within the United Kingdom.

Depreciation of tangible fixed assets	193,077	169,893
Amortisation of intangible assets	156,486	177,803
Other operating lease rentals	310,139	162,447

6.	Auditors' remuneration
		2025	2024
		£	£

Fees payable to the company's auditors for the audit of the company's financial statements

17,350

16,510

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.

Page 18

SWANN ENGINEERING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Wages and salaries	4,356,884	4,703,548
Social security costs	412,111	442,382
Cost of defined contribution scheme	154,516	150,581
	4,923,511	5,296,511

The average monthly number of employees, including the directors, during the year was as follows:

	2025	2024
	No.	No.

Employees	115	121

8.	Directors' remuneration
		2025	2024
		£	£

Directors' emoluments	248,712	263,949
Company contributions to defined contribution pension schemes	24,239	24,877
	272,951	288,826

	During the year retirement benefits were accruing to 2 directors (2024 - 2) in respect of defined contribution pension schemes.
	The highest paid director received remuneration of £149,432 (2024 - £152,808).
	The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £14,543 (2024 - £15,728).

9.	Interest receivable
		2025	2024
		£	£

	Other interest receivable	33,519	-
		33,519	-

Page 19

SWANN ENGINEERING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

10.	Interest payable and similar expenses
		2025	2024
		£	£

Bank interest payable	118	4,856
Other loan interest payable	19,596	53,270
Finance leases and hire purchase contracts	99,222	100,161
	118,936	158,287

Corporation tax
Current tax on profits for the year	825,294	78,089
Adjustments in respect of previous periods	(27,289)	-

Total current tax	798,005	78,089

	Deferred tax
	Origination and reversal of timing differences	(9,920)	131,971


		788,085	210,060

Page 20

SWANN ENGINEERING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

11.Taxation (continued)

Profit on ordinary activities before tax

3,125,789

1,985,837

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	781,447	496,459
Effects of:
Disallowable expenses	2,260	12,714
Tax losses brought foward	-	(162,414)
Capital allowances for year in excess of depreciation	41,587	51,308
Deferred tax movement	(9,920)	131,971
Tax increase/(decrease) from changes in general provisions	-	(52,932)
Adjustments to tax charge in respect of prior periods	(27,289)	-
Short-term timing difference leading to an increase (decrease) in taxation	-	997
Adjustment in research and development tax credit leading to a decrease in the tax charge	-	(40,265)
Group relief	-	(227,778)
Total tax charge for the year	788,085	210,060

Factors that may affect future tax charges

There are no factors that may affect future tax charges.

12.	Dividends
		2025	2024
		£	£

	Dividends paid	4,069,409	-
		4,069,409	-

Page 21

SWANN ENGINEERING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

13.	Intangible assets

	Capitalised project costs	Computer software	Total
	£	£	£
Cost
At 1 April 2024	609,537	47,834	657,371
At 31 March 2025	609,537	47,834	657,371
Amortisation
At 1 April 2024	331,363	34,662	366,025
Charge for the year on owned assets	153,193	3,293	156,486
At 31 March 2025	484,556	37,955	522,511
Net book value
At 31 March 2025	124,981	9,879	134,860
At 31 March 2024	278,174	13,172	291,346

Page 22

SWANN ENGINEERING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

14.	Tangible fixed assets

	Leasehold Land and buildings	Plant and machinery	Motor vehicles	Fixtures, fittings and computer equipments	Total
	£	£	£	£	£
Cost or valuation
At 1 April 2024	813,410	962,633	138,400	699,473	2,613,916
Additions	-	120,864	-	61,090	181,954
Disposals	-	(14,375)	-	(27,745)	(42,120)
At 31 March 2025	813,410	1,069,122	138,400	732,818	2,753,750
Depreciation
At 1 April 2024	131,067	656,128	112,114	452,396	1,351,705
Charge for the year on owned assets	-	91,987	-	81,058	173,045
Charge for the year on financed assets	12,336	-	7,696	-	20,032
Disposals	-	(6,229)	-	(22,518)	(28,747)
At 31 March 2025	143,403	741,886	119,810	510,936	1,516,035
Net book value
At 31 March 2025	670,007	327,236	18,590	221,882	1,237,715
At 31 March 2024	682,343	306,505	26,286	247,077	1,262,211

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2025	2024
	£	£


Motor vehicles	18,590	26,287
	18,590	26,287

Page 23

SWANN ENGINEERING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Raw materials and consumables	186,801	24,923
Work in progress	788,592	1,198,999
	975,393	1,223,922

16.

Debtors

						As restated
					2025	2024
					£	£


Trade debtors	2,133,847	3,345,155
Amounts owed by group undertakings	-	2,644,772
Other debtors	724,820	733,234
Prepayments and accrued income	1,318,485	2,091,941
Amounts recoverable on long-term contracts	163,377	42,269
	4,340,529	8,857,371

17.	Cash and cash equivalents
		2025	2024
		£	£

Cash at bank and in hand	2,924,465	410,198
	2,924,465	410,198

Page 24

SWANN ENGINEERING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

18.	Creditors: Amounts falling due within one year
		2025	2024
		£	£

Bank loans	10,649	10,649
Trade creditors	1,559,566	2,290,241
Corporation tax	825,316	78,089
Other taxation and social security	234,364	708,580
Obligations under finance lease and hire purchase contracts	313	278
Other creditors	86,558	48,414
Accruals and deferred income	743,956	1,003,971
	3,460,722	4,140,222

19.	Creditors: Amounts falling due after more than one year
		2025	2024
		£	£

Bank loans	3,651	14,299
Net obligations under finance leases and hire purchase contracts	738,358	738,671
	742,009	752,970

Bank loans are secured by way of a debenture dated 8th December 2005 including a fixed charge over all present freehold and leasehold property; first fixed charge over book and other debts, chattels, goodwill and uncalled share capital, both present and future; and first floating charge over all assets and undertakings both present and future.

The group has a composite unlimited multilateral guarantee dated 16th March 2016 given by Swann Group Limited, Swann Engineering Group Limited, Swann I&M Services Limited, Clearvision Lighting Limited and Bevan Funnell Group Limited.

Obligations under finance leases and hire purchase agreements are secured by way of charge over the assets to which they relate.

Page 25

SWANN ENGINEERING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Amounts falling due within one year
Bank loans	10,649	10,649
Amounts falling due 1-2 years
Bank loans	3,651	10,648
Amounts falling due 2-5 years
Bank loans	-	3,651

	14,300	24,948

21.	Deferred taxation

	2025	2024
	£	£

At beginning of year	(137,373)	(5,402)
(Charge)/Credit for the year	9,920	(131,971)
At end of year	(127,453)	(137,373)

The provision for deferred taxation is made up as follows:
	2025	2024
	£	£

Accelerated capital allowances	(133,969)	(142,521)
Other provisions carried forward	6,516	5,148
	(127,453)	(137,373)

Page 26

SWANN ENGINEERING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

22.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

110,500 (2024 - 110,500) Ordinary shares of £0.10 each	11,050	11,050

23.	Pension commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £154,516 (2024 - £150,581). Contributions totalling £71,695 (2024 - £48,414) were payable to the fund at the balance sheet date and are included in creditors.


Not later than 1 year	19,350	21,313
Later than 1 year and not later than 5 years	26,697	46,047
	46,047	67,360

25.	Related party transactions
	The company has taken advantage of the exemptions available from disclosing transactions with other members of the group in accordance with FRS 102 section 33.1a. Included within other debtors due within one year is an amount owed by Bevan Funnell Group Ltd, a company under common control, totalling £719,889 (2024: £719,028).

26.	Ultimate Parent

The company's immediate parent is Swann Group Limited, incorporated in England and wales.

The most senior parent entity producing publicly available financial statements is Swann Group Limited. These financial statements are available upon request from the Registrar of Companies.
The ultimate controlling party is P J C Jarvis and A R Pirrie acting in concert.

Page 27