REGISTERED NUMBER: 09051229 (England and Wales)

Report of the Director and

Unaudited Financial Statements

for the Year Ended 31 May 2025

for

SMARTech Energy Ltd

Page

Company Information

1

Report of the Director

2

Balance Sheet

4

Notes to the Financial Statements

5

DIRECTOR:

S M Pearce

REGISTERED OFFICE:

Unit 1, Rowan House

Sheldon Business ParK

Sheldon Corner, Sheldon

Chippenham

Wiltshire

SN14 0SQ

REGISTERED NUMBER:

09051229 (England and Wales)

The director presents his report with the financial statements of the company for the year ended 31 May 2025.

Strategic Overview

The 2024-2025 financial year marked a significant turning point for SMARTech energy Ltd, demonstrating strong operational performance, strategic growth in renewable technologies, and continued momentum in our Energy Efficiency as a Service (EEaaS) programme. Despite ongoing macroeconomic challenges and volatility in the energy markets, we have delivered a robust financial recovery, with turnover increasing by 19% to £754,662 and a return to profitability with a pre-tax profit of £41,821 (2024: £(48,979)).

Our gross margin improved to 60.5%, and we achieved a net profit of £80,443, reflecting disciplined cost control and increased recurring income from long-term EEaaS contracts. These results provide a solid foundation as we seek to restructure existing debt and secure new funding to accelerate growth.

Business Highlights

EEaaS Programme Expansion

Our flagship EEaaS model continues to gain traction, with three new clients-JDM Food Group, JSP Safety, and Pym & Wildsmith-joining the programme this year. These contracts will be in addition to our current £1.42 million in contractual revenue to be collected, with projected growth in the year ahead expected to increase this to £3.81 million.

We now have EEaaS clients with over four years of operational history, consistently delivering or exceeding guaranteed savings. The cost to manage these programmes remains low, at just 1-3% of annual income, underscoring the scalability and profitability of the model.

Renewable Energy & Technology Delivery

We expanded our delivery capabilities in renewable energy, particularly in Solar PV. Notable installations include:

- A 107 kWp system for Meadowvale Primary School

- A 347 kWp system for JSP Safety-our largest to date

- Large scale evaporative cooling systems for Hospital Metalcraft in Dorset

These projects not only diversify our revenue streams but also reinforce our technical leadership in sustainable energy solutions.

Net Zero & Monitoring Services

This year saw the successful launch of our Net Zero program, in partnership with Greenly as a Pro Partner. We secured two new 3-year contracts with Stonegate Farmers and JDM Food Group to develop & deliver their Net Zero strategies. This service line is expected to be a key growth area in the coming years.

Compliance & Advisory Growth

We onboarded new clients for ESOS compliance, including key clients Rodda's Cornish Clotted Cream and Theatre Royal Plymouth. These engagements further position SMARTech energy as a trusted advisor in regulatory and sustainability compliance.

Research & Development

Our commitment to innovation remains strong, with continued investment in our proprietary Tech Stack of 34

energy-saving technologies. The team has continued to design and built our SMART control system, with ongoing development.

We also signed an exclusive agreement for CrynoGenX4, a refrigeration & air conditioning energy-saving technology for UK distribution rights.

In 2026 we have an exciting new 24/7 proven energy generation technology which will be offered on a PPA (Power Purchase Agreement) & are in talks to be the exclusive partner for the UK.

People & Operations

The team of 8 full-time employees, has continue to be developed our grow our skills to reflect the industry requirements, reflecting our investment in delivery capacity and operational excellence. In the year ahead, we plan to recruit a dedicated marketing executive to support the expansion of our EEaaS and Net Zero offerings.

Financial Position

The company's balance sheet remains healthy, with net assets increasing to £470,972 (2024: £448,515). Tangible fixed assets rose to £389,959, reflecting our investment in energy-saving infrastructure deployed at client sites. Cash at bank improved to £35,313, and we continue to manage our liabilities prudently.

Outlook

Looking ahead, SMARTech energy is well-positioned to scale its EEaaS model, expand its load side energy saving technologies & renewable energy portfolio, and deepen its advisory services in the Net Zero programs. With a strong pipeline, proven delivery capability, and recurring revenue streams, we are seeking to raise capital to:

- Restructure existing debt

- Invest in additional EEaaS installations

- Expand our marketing and sales capabilities

We remain committed to our mission of helping UK organisations reduce energy consumption, cut carbon emissions, and achieve Net Zero.

DIRECTOR

S M Pearce held office during the whole of the period from 1 June 2024 to the date of this report.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

S M Pearce - Director

5 December 2025

FIXED ASSETS

Intangible assets

4

92,899

99,049

Tangible assets

5

411,866

338,883

504,765

437,932

CURRENT ASSETS

Stocks

67,421

84,462

Debtors

6

224,752

256,369

Cash at bank

35,313

15,175

327,486

356,006

CREDITORS

Amounts falling due within one year

7

225,454

204,026

NET CURRENT ASSETS

102,032

151,980

TOTAL ASSETS LESS CURRENT LIABILITIES

606,797

589,912

CREDITORS

Amounts falling due after more than one year

8

113,918

141,397

NET ASSETS

492,879

448,515

CAPITAL AND RESERVES

Called up share capital

200,001

200,001

Fair value reserve

10

10,071

20,036

Retained earnings

282,807

228,478

492,879

448,515

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2025 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 5 December 2025 and were signed by:

S M Pearce - Director

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

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

Intangible assets

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

Computer software is being amortised evenly over its estimated useful life of twenty years.

Tangible fixed assets

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

Plant and machinery

-

10% on straight line basis

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

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

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 10 (2024 - 8 ) .

4.	INTANGIBLE FIXED ASSETS

Computer

software

£

COST

At 1 June 2024

and 31 May 2025

122,992

AMORTISATION

At 1 June 2024

23,943

Amortisation for year

6,150

At 31 May 2025

30,093

NET BOOK VALUE

At 31 May 2025

92,899

At 31 May 2024

99,049

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

£

COST

At 1 June 2024

539,531

Additions

115,773

Disposals

(67,515

)

At 31 May 2025

587,789

DEPRECIATION

At 1 June 2024

200,648

Charge for year

59,106

Eliminated on disposal

(83,831

)

At 31 May 2025

175,923

NET BOOK VALUE

At 31 May 2025

411,866

At 31 May 2024

338,883

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

as restated

£

£

Trade debtors

104,609

204,152

Other debtors

8,082

1,726

Directors' current accounts

23,948

1,000

Tax

88,113

49,491

224,752

256,369

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

as restated

£

£

Bank loans and overdrafts

111,642

104,308

Trade creditors

33,377

(822

)

Amounts owed to group undertakings

9,634

30

Tax

8,082

-

Social security and other taxes

38,830

35,116

VAT

20,834

54,485

Other creditors

829

10,909

Accruals and deferred income

2,226

-

225,454

204,026

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

as restated

£

£

Bank loans - 2-5 years

80,412

89,921

Social security and other taxes

33,506

51,476

113,918

141,397

9.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2025

2024

as restated

£

£

Within one year

1,746

4,191

Between one and five years

-

1,746

1,746

5,937

10.

RESERVES

Fair

value

reserve

£

At 1 June 2024

20,036

Amortisation

(9,965

)

At 31 May 2025

10,071

11.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 May 2025 and 31 May 2024:

2025

2024

as restated

£

£

S M Pearce

Balance outstanding at start of year

1,000

1,000

Amounts advanced

61,365

-

Amounts repaid

(38,417

)

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

23,948

1,000