The directors present the strategic report and financial statements for the year ended 31 March 2025.

The principal activities of the Company are housing maintenance, gas servicing and repair, grounds maintenance, street cleaning and Capital works performed on behalf of Harlow District Council ("the Council") under a ten-year contract which commenced on 1st February 2017.

The Company has made a loss on ordinary activities before taxation of £615,921 for the year ended 31st March 2025 (2024: profit of £15,655).

Revenues were higher than expected at £32,896,191 in comparison to the budget for 2025: £29,389,240. This was mainly due to additional funding from the Council to clear outstanding high value expenditure relating to roofing and guttering works.

The company experienced notable financial losses during the reporting period, driven primarily by escalating operational costs and an increase in the volume of work required to maintain service standards. Rising inflation, higher contractor rates, and material costs placed considerable strain on budgets, while the expanded scope of works to make improvements to the service delivery further intensified resource demands. These pressures, combined with workforce challenges and limited capacity to absorb additional expenditure, have adversely impacted overall financial performance.

The Company measures performance in several ways, including contract performance, quality reviews, debt reviews, regular re-forecasting and monitoring reviews and overhead absorption costing; (allocating overhead costs to the operational costs centre of the business).

HTS (Property & Environment) Limited attaches great importance to its corporate responsibility as evidenced by the many community events attended by the company. This includes providing work experience to students and charitable fundraising events for St Clare Hospice and other local organisations.

Principal Risks and uncertainties

The Company maintain a detailed Risk Management and Internal Control system. This requires the company to:

• identify risks and record them in a risk register;

• diagnose and quantify the risks as to their likelihood and impact, record the controls established and monitor their effectiveness;

• develop a plan to mitigate the likelihood and impact of the identified risks;

• regularly review the risk registers and action plans; and

• report key issues upwards to Harlow District Council.

The Corporate Risk Register documents strategic risks pertinent to our strategic aspirations outlined in the new Business Plan, including environmental Impacts, supply chain, and cyber security. It serves as an agreed record of significant risks, current controls, mitigation efforts, and proposed actions to strengthen risk management.

HTS has identified a number of strategic risks on our Corporate Risk Register, each considered within the context of prevailing circumstances, strategic objectives, and risk severity. These risks ensure comprehensive coverage aligned with our Risk Management Framework. The Board continues to monitor these risks and uncertainties, ensuring that appropriate risk management strategies are in place.

Currently, the most significant business risks at the corporate level are:

Analysis of the development and performance

Over the past year, HTS has successfully delivered on the strategic objectives set out in the previous reporting period. We have completed a full realignment of our vision, mission, and values with our long-term strategic plan, and are now operating with a more focused and efficient framework for financial performance and service delivery.

Key developments include the implementation of new technologies, optimisation of service agreements, and improvements to our governance and workforce planning processes. These efforts have reinforced HTS’s position as a trusted, high-performing partner with Harlow District Council, delivering housing, environmental, and capital investment services with transparency, accountability, and value for money.

Succeed by Working Together: We have strengthened collaboration across departments, embedding a culture of teamwork and open communication through regular feedback sessions and cross-functional initiatives. The ongoing rollout of two new field management systems has delivered measurable improvements in front-line productivity and service delivery. We remain committed to being a Living Wage employer, aligned with the priorities of Harlow District Council.

Take Responsibility and Ownership: Empowering employees remains a cornerstone of our approach. Change management programs across Repairs & Maintenance, Environmental Services, and Capital Works have been completed, embedding a proactive culture where teams take ownership of outcomes and resolve issues swiftly. Continued investment in training and resources has supported our workforce to perform confidently and effectively.

For the year ended 31st March 2025, four reportable incidents were reported. This resulted in an Annual Incident Injury Rate (AIIR) of 705, which is higher than the current industry benchmark. We have been working hard to ensure that the appropriate mitigation measures and proactive safety strategies are in place. All incidents were thoroughly investigated, and control measures have been implemented to reduce future risk. The Company remains fully committed to maintaining a low Accident Incident Rate and promoting a safe and healthy working environment for employees.

Always Put Safety First: We continue to implement and enforce strict safety guidelines. For the year ended 31st March 2025, the company has had four reportable incidents (2024: 1 reportable incident), resulting in an Annual Injury Incident Rate of 245, which is lower than our industry standard of 400. The company remains committed to maintaining a low Accident Incident Rate and addressing safety concerns promptly.

Respect Our Customers: HTS strive to consistently meet high standards of customers, statutory and regulatory requirements. HTS is committed to enhancing customer satisfaction through open engagement with clients and continual improvement of systems. The 2024/25 customer satisfaction surveys resulted in 97% satisfied with overall HTS customer service and over 99% reporting that they found it easy to contact HTS customer service centre. This places HTS in upper quartile of customer satisfaction performance in the sector. HTS performance against contractual KPIs that govern the contract achieved 96% with gas compliance at 100% throughout the year.

Quality: Think Green: Sustainability remains a key priority. We have now fully deployed 12 electric fleet vehicles and transitioned to zero-emission tools across our operations. Environmental awareness initiatives for employees and residents are ongoing, and we continue to invest in green technologies and sustainable working practices to minimise our environmental impact.

On behalf of the board

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards including FRS 101 "Reduced Disclosure Framework", 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 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 and then apply them consistently;

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

• state whether applicable UK Accounting Standards, including FRS 101, have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

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

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

The principal activities of the Company are housing maintenance, gas servicing and boiler repair, grounds maintenance, street cleaning and Capital works performed on behalf of Harlow District Council ("the Council") under a ten-year contract which commenced on 1st February 2017.

The company made a loss after tax of £615,921 (2024: profit of £2,400) for the year which has been included within reserves.

Ordinary dividends were paid amounting to £1,150,000. A signed written resolution was agreed with Board; prior to financial performance being finalized. Hence, the adverse financial position led to negative reserve position. Full support from our Shareholder has been granted.

During the year, the company adopted new Articles of Association on 29 April 2025. This formed part of a planned governance review aimed at aligning Board structure with the strategic direction of the business, while also delivering cost efficiencies.

As part of this transition, all existing Non-Executive Directors stood down at the end of April 2025. A newly constituted Board was approved, comprising two Council-appointed directors and one independent non-executive director. The revised Articles of Association for HTS (Property & Environment) Limited were updated to reflect this new governance structure.

These changes are designed to simplify decision-making, ensure appropriate oversight, and create a more proportionate governance model that aligns with the company’s operational scale and turnover. The updated Board structure also allows for improved accountability and responsiveness to the needs of the Shareholder. These changes have contributed to the higher turnover of directors during this period.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Ms C Stevens resigned on 2 May 2025 and was reappointed on 28 July 2025.

The Company operates a treasury function which is, responsible for managing the liquidity, interest and credit risks associated with the company’s activities.

The Company's principal financial instruments include loans (the main purpose of which is to raise finance for the company's operations). In addition, the company has various other financial assets and liabilities such as other receivables, amounts due from the Council and trade creditors arising directly from its operations. The company does not have any ‘derivative' instruments.

The Company maintains bank balances to meet the ongoing needs of the business. Liquidity risk is actively managed through regular budget reviews with the senior management team. These reviews ensure that the organisation maintains sufficient cash flow to meet its operational and strategic obligations.

All loans, lease and hire purchase agreements are on a fixed interest rate and therefore the Company reduces any exposure to changes in interest rates.

Harlow Council is the ultimate shareholder of the Company and also the main customer. As such the credit risk to the Company is very low.

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the Company continues and that the appropriate training is arranged. It is the policy of the Company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees. To this end the Company is recognised as a Disability Confident Employer.

The Company's policy is to consult and discuss with employees through its recognition of trade unions, and at daily team meetings, matters likely to affect employees' interests.

Information is also shared with employees via weekly employee bulletins, regular messages via the company’s HR system, and bi-annual Town Hall style meetings. All of these methods of communication used seek to achieve a common awareness of all employees of the financial and economic factors affecting the Company’s performance.

HTS (Property & Environment) Limited remain committed to continuous improvement in our governance practices and regularly review our policies and procedures to ensure they remain effective and relevant in a changing business landscape. Our goal is to foster a culture of accountability and ethical behaviour at all levels of the company, ensuring that we remain responsive to the needs of our Shareholder and deliver value to the community we serve.

Our enhanced governance framework positions us well to navigate future challenges and opportunities, supporting our vision to deliver high-quality services and achieve sustainable growth. We will continue to build on this foundation, maintaining the highest standards of governance to drive our success forward.

HTS (Property & Environment) Limited remains committed to working in close partnership with our Shareholder, Harlow District Council, to support the delivery of their strategic vision: “Building Harlow’s Future.”

During the period we have taken significant steps to enhance business relationships and collaboration by co-locating key teams from both HTS (Property & Environment) Limited and the Council. This initiative aims to improve communication, increase operational efficiency, and strengthen alignment with our Shareholder’s goals.

Our organisational structure has also been streamlined to reduce overheads, foster a more agile way of working, and ensure that the business is better placed to respond to the evolving needs of the community. These changes reflect our shared commitment to achieving long-term sustainability, improving service delivery, and delivering greater value for residents.

We continue to foster a culture of accountability, transparency, and ethical conduct across all levels of the organisation. By aligning our governance and operational practices with the Council’s ambitions, we are working together more effectively to build a thriving, sustainable future for Harlow.

In the coming period, HTS (Property & Environment) Limited will continue to focus on delivering high-quality frontline services across housing repairs, maintenance, environmental services, and capital works for Harlow District Council.

Our recent organisational changes, including the streamlining of leadership and support functions, have been implemented to ensure the business is better positioned to respond to future challenges. The priority now is to strengthen our capacity where it matters most — on the front line. This means actively identifying and addressing staffing gaps, investing in recruitment and onboarding, and ensuring our teams have the tools, technology, and support they need to deliver services efficiently and to a high standard.

These changes are central to supporting the Shareholder’s strategic vision of “Building Harlow’s Future.” By creating a leaner, more agile, and better-integrated organisation, we are aligning our operations with the Council’s long-term objectives — driving greater efficiency, enhancing service quality, and delivering meaningful outcomes for residents.

As part of this ongoing transformation, HTS will continue to advance its digital capabilities, including the roll-out of new field service management software to improve operational visibility and enhance service delivery.

We are committed to continuous improvement and innovation and will build on the strong foundations of our first seven years of trading. Working in closer collaboration with our Shareholder, we aim to support the long-term success and sustainability of Harlow, ensuring our services play a key role in improving the lives of those who live and work in the town.

HTS (Property & Environment) Limited remains committed to maintaining high standards of corporate governance. During the reporting period, a significant update to the company’s governance framework was implemented, including the adoption of new Articles of Association on 29 April 2025 and the reconstitution of the HTS Group Board.

These changes were introduced to better align the governance structure with the scale and complexity of the business, supporting more agile decision-making while maintaining robust oversight. The revised governance model reduces the size of the Board to a streamlined structure comprising two Council-appointed directors and one independent non-executive director.

This new framework is designed to enhance efficiency and accountability, with the independent director role ensuring continued external challenge and scrutiny. The updated Memorandum and Articles of Association of HTS (Property & Environment) Limited provide the formal basis for this revised structure.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the Company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the Company’s auditor is aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

We have audited the financial statements of HTS (Property and Environment) Limited (the 'company') for the year ended 31 March 2025 which comprise the income statement, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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 101 Reduced Disclosure Framework (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 loss for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

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

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.

As explained more fully in the directors' responsibilities statement, 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.

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

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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have given consideration to the control environment (including management's own process for identifying and assessing risks) as well as the nature of the entity, the industry in which it operates and the underlying performance. Consideration was also given to the attitudes and incentives of management to commit fraud. We determined that the greatest potential for fraud existed in the following areas: timing of recognition of income, posting of unusual journals and complex transactions. In line with all audits performed under ISAs (UK), we planned and performed specific procedures to respond to the risk of management override of controls.

We also obtained an understanding of the applicable laws and regulations that the company has to abide by, through discussions with management and those charged with governance, as well as commercial knowledge of the sector and statutory legislation. We paid particular focus to those laws and regulations that had the potential to materially impact the amounts and disclosures within the financial statements. The key laws and regulations we identified were the UK Companies Act, employment law, health and safety, tax legislation and landlord regulations.

After our initial risk assessment, we performed the following procedures to detect material misstatements in respect of irregularities arising due to fraud or error:

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness

- Reviewing financial statement disclosures and testing these against supporting documentation to assess compliance with applicable laws and regulations

- Assessing of key accounting estimates within the financial statements in order to assess their reasonableness and determining whether there were any indications of management bias in the estimates

- Reviewing minutes of meetings of those charged with governance

- Enquiring of management as to whether they are aware of any alleged, suspected or actual fraud during the year

We also performed procedures to satisfy ourselves regarding compliance with applicable laws and regulations, including:

- Enquiring of management and those charged with governance if there were any actual and potential litigation and claims

- Reviewing minutes of meetings of those charged with governance

- Reviewing legal expenses for any indicators of litigation or claims against the company

All audit team members were made aware of the applicable laws and regulations, as well as potential fraud risks during the planning stage of the audit and this was discussed at the audit team planning meeting. It was therefore determined that team members all had the relevant awareness and competence to identify any instances of non-compliance with relevant laws and regulations or fraud.

There are, however, inherent limitations to our above audit procedures. Auditing standards only require us to enquire of the directors and management regarding non-compliance with laws and regulations, as well as review regulatory and legal correspondence (if there is any). It is therefore possible that instances of non-compliance could be missed, particularly where the law in itself is far removed from any financial transactions.

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

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The income statement has been prepared on the basis that all operations are continuing operations.

HTS (Property and Environment) Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Civic Centre, The Water Gardens, College Square, Harlow, CM20 1WG.

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

• inclusion of an explicit and unreserved statement of compliance with IFRS;

• presentation of a statement of cash flows and related notes;

• disclosure of the objectives, policies and processes for managing capital;

• disclosure of key management personnel compensation;

• comparative period reconciliations of the carrying amounts of property, plant and equipment.

• disclosure of the future impact of new International Financial Reporting Standards in issue but not yet effective at the reporting date;

• comparative narrative information; and

• related party disclosures for transactions with the parent or wholly owned members of the group.

Where required, equivalent disclosures are given in the group accounts of HTS Group Limited. The group accounts of HTS Group Limited are available to the public and can be obtained as set out in note 23.

The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The directors have considered the factors that impact the company’s future financial performance, cash flows and financial position, along with the company’s current liquidity in forming their conclusion on the applicability of the going concern basis.

As the company's current liabilities exceed its current assets the company is reliant upon the support of its parent undertaking. The parent undertaking has provided a formal letter of support to the company.

Revenue arises from the provisions of goods and services provided in line with the principal activities set out in the Directors' report and excludes value added tax.

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer.

There is an annual service charge (building maintenance, street cleaning and environmental services) which is a fixed-price contract, revenue is recognised as the service is provided during the period. The customer pays the fixed amount based on a payment schedule, normally paid in the same month as the service is rendered.

There are also capital and planned works performed for customers and amounts are recognised based on valuations provided by qualified surveyors. Customers are normally invoiced monthly, once valuations have been certified by the customer. Payment is due within 31 days from the date of the invoice.

Intangible assets are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Intangible assets are initially recognised at cost and are subsequently measured at cost net of amortisation and any provision for impairment.

Amortisation is provided on intangible fixed assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life, as follows:

Purchased computer software 20%

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

In relation to small tools it is the company's policy to expense tools with an individual of less than £1,000 as consumables as these are likely to have an estimated useful life of less that 12 months.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

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

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Intangible assets do not have indefinite useful lives so are not tested for impairment annually.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Inventories are stated at cost and relate to fuel and vehicle parts being used in the business.

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less, Bank deposits with original maturities of over three months are shown in current investments.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs. The company does not have any

financial assets at fair value through the profit and loss account.

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Financial assets carried at amortised cost are assessed for indicators of impairment at each reporting end date.

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

For trade receivables, the simplified approach permitted by IFRS 9 is applied, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'. The company only has 'other financial liabilities'

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The company’s employees are members the Essex pension fund which is a defined benefit pension plan and a part of the Local Government Pension Fund.

The assets of the scheme are held separately from those of the company in an independently administered fund. Pension scheme assets are measured using fair values. Pension scheme liabilities are measured using a projected unit method and discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liability.

It has been agreed with Harlow District Council that contributions payable by the Company will be capped at either 10.6% or 14.1%.

To the extent that the company has a liability to pay any additional amounts to the scheme such liabilities are negated by an equal contingent asset arising from the capping agreement with Harlow District Council.

Accordingly, the contributions paid by the company are set in relation to the current service period only and as such the company has accounted for the contributions to this scheme as if they were a defined contribution scheme.

Harlow District Councils’ Indemnity of the pension deficits supports the preparation of the financial statements on a going concern basis.

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Contracts with no consideration are therefore outside the scope of IFRS 16. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently adjusted for remeasurements of the lease liability and applies the relevant cost model, fair value model or revaluation model as set out within the accounting policies for the applicable asset class. Where the cost model is applied, the asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term, and is periodically reduced by impairment losses, if any.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is reassessed at each financial period end to reflect lease modifications and any changes to the factors considered at initial measurement, as set out above. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

When the company acts as a lessor, leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees, over the major part of the economic life of the asset. All other leases are classified as operating leases. If an arrangement contains lease and non-lease components, the company applies IFRS 15 to allocate the consideration in the contract. When the company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately, classifying the sub-lease with reference to the right-of-use asset arising from the head lease instead of the underlying asset. There was consideration, but this was agreed for a 12 month period only and no formal lease was in place, therefore the company has elected not to recognise short term right to use assets, therefore sub-leases are classified for as operating leases. Rental income from sub-leases is credited to the profit and loss account on a straight line basis over the period of the lease.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. 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.

The assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

There has been significant judgement involved when reviewing the agreement with the Harlow District Council and concluding that all the actuarial risks associated with the scheme remain with Harlow District Council and therefore the asset/deficit of the scheme relating to the company has not been accounted for within these accounts.

There has been significant judgement made on whether the head lease between the company and Harlow District Council in relation to Mead Park should be accounted for as a right to use asset. Before 1 April 2024, there was no consideration for the company’s right to use Mead Park, this is therefore outside the scope of IFRS 16 and no accounting is required. From 1 April 2024 there was consideration, but this was agreed for a 12 month period only and no formal lease was in place, therefore the company has elected not recognise short term right to use assets.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

£12,437 (2024 - £-) of borrowing costs are included in the cost of qualifying assets during the year. These are not included in the borrowing costs above.

The charge for the year can be reconciled to the (loss)/profit per the income statement as follows:

Included in intangible assets is £79,299 (2023: £388,719) of assets that were under construction at the year end.

Property, plant and equipment includes right-of-use assets, as follows:

The directors consider that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.

Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.

The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Deferred tax assets and liabilities are offset in the financial statements only where the company has a legally enforceable right to do so.

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

The fair value of the company's lease obligations is approximately equal to their carrying amount.

The parent company of HTS (Property and Environment) Limited is HTS Group Ltd and its registered office is The Civic Centre, The Water Gardens, College Square, Harlow. Essex. CM20 1WG.

The ultimate parent undertaking and controlling party is Harlow District Council.

The following are the parents of the largest and smallest groups in which this company's results are consolidated:

The consolidated financial statements of the smallest and largest group are available from The Civic Centre, The Water Gardens, College Square, Harlow. Essex. CM20 1WG.

Defined contribution scheme

The company operates a defined contribution pension scheme for all qualifying employees with Smart pension. The assets of the scheme are held separately from those of the company in an independently administered fund.

The total costs charged to income in respect of defined contribution plans is £74,824 (2024: £50,276)

Defined benefit scheme

Qualifying employees belonged to the Local Government Pension Scheme (LGPS), which is managed by Essex County Council. This is a funded defined-benefit scheme, with the assets held in separate trustee-administered funds.

Harlow District Council entered into an agreement with the company which has the effect of capping the employer pension contributions payable by the company to the Essex Local Government Pension Scheme.

Due to the capping of the contributions the defined benefit scheme will be treated as a defined contribution scheme for the purposes of the preparation of the accounts and the contributions will be recognised as they fall due.

Included within the pension charge are contributions of £2,290,263 (2024: 2,213,388) payable by the company to the fund less £949,107 (2024: £928,107) reimbursed by Harlow District Council under the capping contribution arrangement.

If there was a net pension liability it would be guaranteed by the Local Authority and not the company, therefore the net pension liability would treated as contingent liability which would have an equal contingent asset being the fair value of the guarantee. However this year there is a surplus, this can only be recognised to the extent that the company can recover that surplus, ether through a reduction in future contributions or a refund to the company. The company is not able to determine that the future contributions will be reduced and it is unlikely the company will receive a refund. Therefore, the surplus is not recognised in the financial statements.

Liabilities have been assessed on an actuarial basis using the projected unit credit method, an estimate of the pensions that will be payable in future years dependent on assumptions about mortality rates, salary levels, etc. The pension scheme's assets/liabilities have been assessed by Barnett Waddingham, an independent firm of actuaries, estimates for the Company being based on the latest full valuation of the scheme as at 31 March 2025. The key assumptions (expressed as weighted averages) at the period end were as follows:

In valuing the liabilities of the pension fund at 31 March 2025, mortality assumptions have been made as indicated below.

The assumptions relating to longevity underlying the pension liabilities at the balance sheet date are based on standard actuarial mortality tables and include an allowance for future improvements in longevity. The assumptions are equivalent to expecting a 65 year old to live for a number of years as follows:

• Retiring today: Male 20.8 years (2024: 20.8 years), female 23.3 years (2024: 23.3 years)

• Retiring in 20 years : Male 22.1 years (2024: 22.0 years), female 24.8 years (2024: 24.7 years)