REGISTERED NUMBER: 05519367 (England and Wales)

Recarta IT Limited

Strategic Report, Report of the Directors and

Unaudited Financial Statements for the Period 1 April 2024 to 5 April 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

7

Chartered Accountants' Report

8

Income Statement

9

Balance Sheet

10

Notes to the Financial Statements

12

DIRECTORS:

Mr D P Bland

Mr T P Harris

SECRETARY:

Mrs S L Bland

REGISTERED OFFICE:

Units 3 & 4

Dunley Hill Court

Ranmore Common

Dorking

Surrey

RH5 6SX

REGISTERED NUMBER:

05519367 (England and Wales)

ACCOUNTANTS:

Swindells LLP

Chartered Accountants

Atlantic House

8 Bell Lane

Bellbrook Industrial Estate

Uckfield

East Sussex

TN22 1QL

The directors present their strategic report for the period 1 April 2024 to 5 April 2025.

PRINCIPAL ACTIVITY

The principal activity of Recarta IT Limited is the design, build and run of mission critical IT infrastructure and applications. Since 2015, our managed services business, specialises in hybrid and private cloud based solutions, alongside a focus on the operation of complex IBM Enterprise IT platforms, data protection and cyber security. For the clients who wish to remain in control of their hardware, we are responsible for the architecture, supply, implementation and migration of their enterprise systems and infrastructure.

Recarta IT's support and licensing team, currently manage over 800 contracts across 50+ vendors and deliver compliance services such as Software Asset Management for clients that are using Tier 1 Vendor software such as Oracle, IBM, and Microsoft.

Recarta has the recognised standard of ISO27001 and Cyber Essentials Plus. Alongside this we operate from three Tier 3 ISO27001 compliant data centres with cross connects and multiple network and power connectivity routes.

These accreditations sit alongside our experienced and highly skilled technical teams which provides our clients with the trust required around our data security controls, quality assurance and our capabilities around IT security.

Recarta remains a supplier under the Crown Commercial Services Framework for the RM6100 Technology Services 3 and the RM1557.13 G-Cloud 13 Frameworks.

THE MARKET

The first nine months of the year were extremely positive although business confidence changed from January 2025 onwards, with the announcement of significant tariff changes from the US and also with the tax changes in the UK spring budget.

Following on from the trend we saw in 2023-2024 - many of our customers continued to identify consolidation opportunities across their IT landscape. With inflationary pressures subsiding we saw the return spending from smaller clients, although there was still a reluctance to make major IT investments. Instead they have continued to reserved cash, cut costs and delay discretionary expenditure - instead choosing to extend support and maintenance on existing systems and software.

Whilst businesses can delay IT investment in the short term - there will always come a time to reinvest and we saw this for the first half of 2024. Clear strategies in the marketplace include the consolidation of key applications, hardware platforms, datacentres and a focus on cyber resilience and data security. This will lead to new services and IT infrastructure opportunities going forwards. With IT teams in many businesses being reduced over the past few years, there is now more reliance of working with chosen partners to help deliver these services to their businesses.

A large part of the marketplace has been historically looking to move away from on-premises IT hardware towards major cloud providers and managed service providers for many application workloads. However, not all applications are suited for public cloud, and this is still driving good opportunities for on-premises or a more dedicated privately hosted and managed solution.

With efforts to reduce IT operational costs, businesses have been reviewing their ongoing cloud expenditure and begun to repatriate some applications back on-premise, or at least under tighter control. It is our view that the limitations of public cloud are starting to be felt, and the move away from on-premise is beginning to slow/reverse slightly.

Recarta is well placed to deliver to clients in this new hybrid world, with us continuing to make considerable investments in our internal and hosting infrastructure, datacentres, technical resources and service offerings. We are also expanding these services rapidly with the help of key service partners in delivering expertise around Cyber Security services and AWS & Azure Cloud workloads analysis and optimisation.

In terms of our larger clients, we have seen an uptick in investment - in some cases looking to new technology to drive AI and automation gains within their businesses.

IBM remains a significant part of our overall technology offering, and we find ourselves in a strong position to take advantage of some recent consolidation within the IBM marketplace. We are seeing that customers are becoming more discerning in terms of their suppliers. With a reduction in IT team size, customers need more reliable, agile and responsive providers of their IT services. They need "partners" that they can not only trust now - but be assured that they will continually improve and adapt their platforms, to make sure they are relevant in a fast changing world.

REVIEW OF THE BUSINESS

Recarta can proudly report that it grew revenue and profits significantly over the period to 5 April 2025.

Revenue for the financial year 2024-2025 was just over £17M which was a growth of nearly 60% on the previous year. Net profit after small provisions and our continual write down of previous acquisitions stood at £1.7M. We saw increases in revenue across all areas of the business, from our fast growing managed services through to infrastructure supply, professional services, software and maintenance support services.

The largest percentage growth over the past year was within our managed services business. Total managed services revenue reached nearly £6M. Margins also improved following a reversing of rising energy costs and inflation from previous years. Whilst a large part of this was down to a few significant projects, this growth underlines that clients continue to look to Recarta to divest cost, resources and move their critical workloads to our private/hybrid based cloud offerings.

The exceptionally large growth in managed services and professional services, has enabled us to grow our terms of experience, skills and capability within our technical teams. This has been a game changer and we are now in a strong position to capitalise by working on many larger opportunities without this affecting other areas of the business.

Recarta was also closely involved in some considerable infrastructure projects over the reported period with hardware and software revenues increasing by over 10%. Infrastructure architecture and supply remains a key part of our overall offering, and although only represents 20% of our revenue - it is a key driver of all of our other revenue streams for the business.

This increase in infrastructure projects, along with an increase in managed services and partnering for specialist skills, saw our professional services increase by 31% with revenues of nearly £1M. This is a great milestone for Recarta and represents nearly 1,000 days or 7,500 hours of technical consultancy and project management that we have successfully delivered over the period.

We also saw a large increase of over 50% on the previous year in our hardware, software support and licensing renewals business. Revenues reached £6.7M whilst retaining healthy margins. This is in part due to the hybrid offering of third party and vendor support by the renewals team. Recarta's pro-active and value added approach to renewals, has now seen revenues grow consistently year on year and we now manage over 800 contracts across 50+ vendors.

Our plan many years ago to work towards an annuity-based business has given us a great foundation to weather any downturns in spending and have provided a great footing for survival throughout uncertain times. This approach has put Recarta on a very stable financial and commercial footing, with our annuities contributing to 72% of our turnover and 77% of our overall gross margin.

Alongside our core managed service offerings, Recarta has continued to build partnerships with other vendors and partners. Recarta has always had a successful B to B and B to C business =model and we see well with partners such as ISVs, PURE, Lenovo and Fortinet to help grow our touch points within existing and new clients.

LOOKING AHEAD

With 2024-2025 being such a successful year - it is key to ensure that we continue to build on this momentum and success without being complacent. Recarta has undergone large growth and as such we are no longer be considered a small provider of services within the IT industry. With revenues of £17M and a healthy balance sheet (without any borrowing), Recarta is well placed to build on its success and continues to invest for the future.

However, the first three months of 2025 is a potential warning of what is to come, with negative feedback from many of our clients with the next 12 months looking to being particularly challenging. Recent US announcements relating to tariffs have immediately affected the confidence of many of our clients who are part of larger supply chains. The recent UK budget announcements relating to National Insurance increases, has created a very different challenge for our customers and for Recarta itself. With a large part of our overheads relating to salaries, this will undoubtedly reduce Recarta's percentage net margin over the next financial year.

We are expecting to see a shift towards a two speed economy into 2025-2026, with larger clients still investing for the longer term - either upgrading unsupported equipment, keeping up with compliance requirements or ensuring they remain ahead of security concerns. However, many of our smaller clients (fewer than 300 users) will have felt the brunt of these political challenges - and we expect this to affect their decision with regards to investing in IT projects over the coming 12 months.

These challenges always provide new opportunities for Recarta and we are also seeing the focus shift to new workloads view to driving down costs and team sizes. These include solutions for AI, automation, and outsourcing of specialist areas within which Recarta's managed services are well placed.

We are also seeing great opportunities outside of our traditional platform design and management - and with dwindling IBM related resources in the marketplace, we have had more opportunities with staff augmentation and remote support, for other specialist skills such as RPG and PHP, and designing workloads on AWS and Azure.

Over the next 12 months Recarta will be investing heavily in new internal software systems and also new infrastructure across our datacentres for managed services. The considerable growth of the business and size of the teams has shown some gaps in our accounting, HR and ERP systems that we will be assessing and implementing within the 12 month period.

Also - we have already committed to a large infrastructure refresh of security equipment across our datacentres utilising latest firewall technology to ensure that our clients and internal systems are capable of being managed securely to the best of our ability. In the managed service space - reputation is key - so we are making sure that we are best prepared, invested in new technology and providing increased training budgets across the teams for management, ITIL and vendor training.

This year will mark our 20th year in business since Recarta was founded in 2005. We will be using this opportunity to make a series of announcements and also be holding a celebration towards the end of the summer with the Recarta team and partners. 20 years in any business is remarkable - but in the IT industry it is particularly impressive. In an industry that is constantly evolving and changing it is key to continuously reflect and change to meet technical and market challenges and needs. Our continual success shows that we have never been complacent - and whilst the business has grown considerably over this time, we have been careful to remain true to what has made Recarta great to its customers, partners, suppliers and of course its fantastic team.

Lastly, Recarta has been notified that we have been awarded the IBM Partner Plus EMEA Modernisation Award for its recent successful modernisation project delivered to one of our large financial clients. This is an outstanding achievement considering the number of entrants and size of the winners in other section categories. It also underlines Recarta's great ability to provide outstanding technical and project management for large projects - whilst remaining agile and flexible. This award was a great achievement by the Recarta team and we are very proud of what we have achieved over the past period.

We believe that we will continue to succeed in a marketplace where clients are looking for better service, value for money and continual improvement of the assets under management. Clients cannot rely on their current IT capabilities to navigate them through the next 5 years. There needs to be continual improvement in reliability, resilience and security. With an uncertain world - relying on the status quo is a dangerous strategy - and one that we feel we are well equipped to compete and win more market share.

ON BEHALF OF THE BOARD:

Mr D P Bland - Director

19 December 2025

The directors present their report with the financial statements of the company for the period 1 April 2024 to 5 April 2025.

DIRECTORS

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

Mr D P Bland

Mr T P Harris

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:

Mr D P Bland - Director

19 December 2025

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Recarta IT Limited for the period ended 5 April 2025 which comprise the Income Statement, Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Recarta IT Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Recarta IT Limited and state those matters that we have agreed to state to the Board of Directors of Recarta IT Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Recarta IT Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Recarta IT Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Recarta IT Limited. You consider that Recarta IT Limited is exempt from the statutory audit requirement for the period.

We have not been instructed to carry out an audit or a review of the financial statements of Recarta IT Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Swindells LLP

Chartered Accountants

Atlantic House

8 Bell Lane

Bellbrook Industrial Estate

Uckfield

East Sussex

TN22 1QL

22 December 2025

TURNOVER

17,075,144

10,724,261

Cost of sales

10,114,212

6,914,483

GROSS PROFIT

6,960,932

3,809,778

Administrative expenses

5,252,451

3,732,793

1,708,481

76,985

Other operating income

23,440

13,636

OPERATING PROFIT

4

1,731,921

90,621

Interest receivable and similar income

17,256

9,962

1,749,177

100,583

Interest payable and similar expenses

3,381

382

PROFIT BEFORE TAXATION

1,745,796

100,201

Tax on profit

421,613

150,550

PROFIT/(LOSS) FOR THE FINANCIAL PERIOD

1,324,183

(50,349

)

FIXED ASSETS

Intangible assets

6

1,093

1,864

Tangible assets

7

854,526

924,119

Investments

8

579,031

579,031

1,434,650

1,505,014

CURRENT ASSETS

Stocks

15,557

17,367

Debtors

9

3,446,179

2,802,997

Cash at bank

1,505,526

752,988

4,967,262

3,573,352

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

10

4,500,349

3,752,194

NET CURRENT ASSETS/(LIABILITIES)

466,913

(178,842

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,901,563

1,326,172

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

11

(81,487

)

-

PROVISIONS FOR LIABILITIES

(200,094

)

(228,224

)

NET ASSETS

1,619,982

1,097,948

CAPITAL AND RESERVES

Called up share capital

13

1,000

1,000

Retained earnings

1,618,982

1,096,948

SHAREHOLDERS' FUNDS

1,619,982

1,097,948

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 5 April 2025.

The members have not required the company to obtain an audit of its financial statements for the period ended 5 April 2025 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their 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 in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 19 December 2025 and were signed on its behalf by:

Mr D P Bland - Director

1.	STATUTORY INFORMATION

Recarta IT Limited 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Preparation of consolidated financial statements

The financial statements contain information about Recarta IT Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Revenue recognition

Turnover represents revenue, net of VAT, from commercial transactions under which the company supplies customers the goods and services that it is in business to provide and it is recognised when it obtains, through performance under contract, the right to consideration for those goods and services.

Revenue from service contracts is recognised over the term of the contract.

Revenue from goods is recognised upon the unconditional sale of the goods.

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.

Tangible fixed assets

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

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on cost

Computer equipment

-

25% on reducing balance

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less any provision for impairment.

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 period 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 period 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 contributes to employees' defined contribution pension schemes. Contributions payable to the pension schemes are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 37 (2024 - 31 ) .

4.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1.4.24

to

Year Ended

5.4.25

31.3.24

as

restated

£

£

Depreciation - owned assets

354,145

177,051

Intangible assets amortisation

771

771

5.	PRIOR YEAR ADJUSTMENT

The comparatives for the prior year have been amended to reflect an error in the value of fixed asset investments. The adjustment has resulted in a decrease in retained profits and a reduction in fixed asset investments of £200,000.

6.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 April 2024

and 5 April 2025

3,856

AMORTISATION

At 1 April 2024

1,992

Charge for period

771

At 5 April 2025

2,763

NET BOOK VALUE

At 5 April 2025

1,093

At 31 March 2024

1,864

7.	TANGIBLE FIXED ASSETS

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST

At 1 April 2024

42,152

242,917

1,074,925

1,359,994

Additions

1,689

103,435

179,907

285,031

Disposals

-

-

(63,380

)

(63,380

)

At 5 April 2025

43,841

346,352

1,191,452

1,581,645

DEPRECIATION

At 1 April 2024

30,941

116,989

287,945

435,875

Charge for period

5,387

68,873

279,885

354,145

Eliminated on disposal

-

-

(62,901

)

(62,901

)

At 5 April 2025

36,328

185,862

504,929

727,119

NET BOOK VALUE

At 5 April 2025

7,513

160,490

686,523

854,526

At 31 March 2024

11,211

125,928

786,980

924,119

8.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 April 2024

and 5 April 2025

579,031

NET BOOK VALUE

At 5 April 2025

579,031

At 31 March 2024

579,031

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

as

restated

£

£

Trade debtors

2,506,605

2,079,412

Other debtors

939,574

723,585

3,446,179

2,802,997

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

as

restated

£

£

Bank loans and overdrafts

55,794

78,164

Trade creditors

1,125,250

590,586

Amounts owed to group undertakings

240,580

447,883

Taxation and social security

660,566

251,040

Other creditors

2,418,159

2,384,521

4,500,349

3,752,194

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

as

restated

£

£

Bank loans

81,487

-

12.	LEASING AGREEMENTS

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

2025

2024

as

restated

£

£

Within one year

38,559

14,746

Between one and five years

36,716

11,950

75,275

26,696

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

as restated

£

£

1,000

Ordinary

1

1,000

1,000

14.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the period ended 5 April 2025 and the year ended 31 March 2024:

2025

2024

as

restated

£

£

Mr D P Bland

Balance outstanding at start of period

268,252

67,726

Amounts advanced

63,543

355,774

Amounts repaid

(206,443

)

(155,248

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of period

125,352

268,252

Mr T P Harris

Balance outstanding at start of period

46,955

1,646

Amounts advanced

41,347

83,380

Amounts repaid

(30,463

)

(38,071

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of period

57,839

46,955

These loans are unsecured and repayable on demand. Interest is charged at HMRC's official rate of interest.

15.	RELATED PARTY DISCLOSURES

During the period, total dividends of £721,934 were paid to the directors .

At the balance sheet date, the company owed Mobius Business Technologies Limited amounts totalling £240,578 (2024: £447,881). This loan is unsecured, interest free and repayable on demand.