The directors present the strategic report together with the audited financial statements for the year ended 31 December 2024.

The principal activity of the company continued to be that of repair of leak sealing and repair services to pipes, tank vessels and other structure.

2024 saw an increase in turnover, the overall decrease in revenue of 7.4% compared to prior year. The company experienced a 2.25% increase in revenues from the UK mainland, driven by large turnaround activities and general increase in service work during this period. The impact of this increase was mitigated by a decrease in our revenue stream generated through the African, Caspian region which reduced by 33.45%. We have continued to successfully improve both our product sales and service work in these overseas regions, showing recovery since the restriction of COVID travel restrictions.

The gross profit margin result is moved from 28.04% to 24.36% being a decrease of 3.68%, this is impacted due to the ongoing program to lower our cost structure and streamline operations while maintaining best in class safety and service quality. The company has reported a slight increase in administrative expenses during the period, due to investment in business development. The administrative expenses are aligned with prior year when removing the impact of these mentioned items. Operating profit margin delivered has moved from 18.54% prior year to 13.59% for 2024, a decrease of 4.95%. The driver for this being the decrease in the gross margin achieved, in addition to investment on business development.

Principal risks and uncertainties

Market Conditions: Risk – demand for services continue to decline due to ongoing low oil prices.

Mitigation – introduction of new services in 2025 to offset any reductions in existing services and continuous monitoring of customer requirements.

Project Delivery: Risk - projects are delivered utilising highly engineered solutions in what can be uncertain environmental conditions & often in remote locations. Poor project delivery can result in a negative financial impact and potential loss of customers.

Mitigation - employment of industry leading engineering resources together with extensive equipment testing facilities minimise the risk of onsite issues.

Interest rate risk - bank borrowings are negotiated by the ultimate parent company on a group basis and provide for long term interest rate stability.

Foreign currency risk - the company, on occasion, has revenue receipts in foreign currencies. Risk to exchange rate fluctuations is minimised by utilising these funds in payment of outstanding liabilities in these currencies.

Credit risk - to manage credit risk, management set credit limits based on a combination of third-party credit references & payment history. Debt ageing is reviewed on a regular basis by management. The customer base is comprised primarily of large national & international organisations.

Product obsolescence - regular management reviews ensure that potential slow-moving inventory items are identified in a timely manner & actions taken to address any known issues.

The company measures and monitors the following on an ongoing, regular basis:

Profit & Loss Accounts - all operating & support functions are reported on an individual basis and actual performance is measured against agreed budget expectations & prior year performance.

Working Capital – all unbilled revenues, trade receivables and inventory holdings are measured against agreed expectations & prior year.

Project Delivery - detailed costs are collated for every job to ensure that actual performance is in line with the expected contribution margins.

Business Plans - longer term business plans are prepared by geographical area and by service line and reviewed on a regular basis to ensure expectations are being met.

The company measures and monitors the following on an ongoing, regular basis:

Safety – monthly tracking against targets of TRIR score, driver safety average score, site and workshop safe visits, reported safety observations

Employee engagement – monthly tracking against targets of staff turnover rate, absenteeism and staff retention rate

Commercial – weekly tracking of conversion rates for enquiries against targets by quantity and value

5 Hand Safety Rules

In 2022, we established 5 hand safety rules to address how hand injuries are prevalent in our industry. These safety rules are to protect our employees and are also a continuation of the mentioned 12 Life Saving Rules. The objective of the hand safety rules below are to help employees stay aware of hazards associated with working with their hands.

1. Avoid the Line of Fire

2. Machines On, Hands Off

3. Know What’s Too Hot To Handle

4. Need a lift? Get an Assist

5. No Hands-on Loads

Employee Observations and Significant Incident Reviews

TEAM takes a proactive approach to our leading core value of safety. We foster a culture of reporting both actual incidents and near miss incidents, to help us learn and improve our safety processes. Our Safety Observation Program helps us to:

1) Proactively prevent incidents and injuries;

2) Adopt best practices as employees provide and receive feedback about safe versus unsafe behaviours;

and 3) Identify opportunities to continuously improve our work processes and procedures.

In addition, we completed just over 4,100 safety observations both in 2024 and year to date 2025, compared to 3,800 during the same prior year period. This allows for better overall safety performance and best practices as workers receive feedback about the process and the techniques used to safely complete their work tasks. We have a robust process to capture and categorize all accidents and near-miss incidents, that could have resulted in a significant incident or fatality (SIF). Each SIF (actual and potential) is reviewed and evaluated with upper management to identify risks and lessons learned and the SIFs are not closed until changes are implemented to address the risks. During 2023 we have introduced ‘Learning from Experience’ slides, which are shared by the investigation owner with the entity company.

Driving Safety

As one of our top priorities at TEAM, we continue to emphasize the driving safety of our employees through the Smith System® Driving Training Courses and our internal journey management practices. In 2019, we installed approx. 150 Geotab devices into the vehicles of our fleet. The Geotab devices allow us to track maintenance needs, location, and operational incidents, such as accidents of our vehicles, and to monitor, on a real-time basis, compliance with vehicle safety requirements by our employees as they collectively log more than 2.5 million business miles per year. The Geotab system, enables us to monitor and enforce speed limits on a real-time basis. Since the deployment of the Geotab system in the first quarter of 2019, the number of speeding events recorded by our Geotab system were reduced by over 70% globally. The reduction in speeding events has significantly lowered the overall risk of an accident, helping make certain that all our TEAM employees will return home safely at the end of each day. Since initial installation date, Geotab devices continue to be fitted as standard to any new vehicles and data in monitored on a regular basis, as mentioned in our key performance indicators.

Team recognise that a large part of its environmental affect in terms of energy usage and greenhouse gas release is via the operation of its fleet of vehicles. This course is designed to make drivers both safer and more efficient drivers. That combined with the introduction of Geotab in all company vehicles which provides driving analytics and weekly reports to aid a shift in driving style to a more efficient and safer way is expected to deliver considerable reductions in CO2 per driven mile.

Travel Security

TEAM conducts business international and we are committed to ensuring that our employees remain safe while travelling. To supplement our risk management procedures around international travel, in 2019, we partnered with International SOS to ensure our employees have the right resources to mitigate travel risks. We have continued to maintain this relationship, through our partnership our employees have access to a suite of travel risk mitigation tools that include an assistance application for mobile devices, a member portal that provides country and city guides, electronic access to the employees International SOS membership card, updates on local health threats and email alerts. Additionally, our employees have access to the International SOS eLearning modules that reinforce travel risk awareness, safe travel practices and the tools available to control risks.

Assess Prior to travel - our employees receive an automatic pre-trip advisory that provides current destination information including medical care quality and access, vaccinations recommended or required, crime risks.

Advise While travelling – our employees receive automatic alerts applicable to their current location and advice to mitigate the potential risk (e.g. local safety alerts, weather advisories such as storm risks, road closures, recommended actions, approved hospital). The automated alerts are provided through the online portal and the mobile app.

Assist While travelling – our employees have access 24/7 to security experts and International SOS Doctors and nurses to assist in an emergency (e.g. medical accidents, medical conditions, crime victim). Additionally, the International SOS tools enable our managers to locate our travelling employees and communicate important safety alerts and provide incident support during their travel.

Technician Focus Group

Our technicians are the foundation of our company and as part of our engagement efforts, we regularly engage our technicians to maintain an open dialogue on current pressing issues and opportunities for improvement.

We continue with the following activities (a) enhanced communications, including townhalls, roadshows, and quarterly safety meetings, (b) employee referral program, and (c) enhanced our leadership development program with an eye toward training both the technicians as well as the business division leaders.

Apprentice Program

The TEAM Apprentice Program has been in place within the UK business since September 2000. Through the Apprenticeship Program, our workshop apprentices receive entry-level training and gain experience and insight into various disciplines by spending time in the workshops across the UK. The program has included more than 74 participants with 62 having completed the program and 32 that moved into permanent technician and management roles within the organisation. During 2024 it is planned for approximately 4 apprentices to join the business, which will involve a 4-year programme consisting of workshop rotations, onsite training, organisational training and exposure within the field with a focus on a specific service line and buddied up with an experienced technician.

Business relationships

TEAM is committed to acting ethically and with integrity in all business dealings and relationships. Fostering business relationships with key stakeholders, customers and suppliers is important to the Company’s success. Many customers and suppliers have been aligned with the business for many years with, in the case of suppliers, access to at least two suppliers for our major materials.

The Board looks to implement and enforce effective systems and controls to ensure its supply chains are maintaining the highest standard of business conduct in line with best practice including in relation to anti-bribery and modern slavery. The employee handbook is regularly updated with all up to date relevant information and personnel have been advised, and in some instances, trained accordingly as and when new legislation or Governmental advice is issued.

Future developments

Throughout 2025 and looking into 2026, the company has invested in standardising calculation methods for the design of leak repair clamps to further enhance quality and broaden engineering support with the objective of increasing speed of response to address clients’ needs. Additionally, the company has continued to invest in: i) adding new equipment for the provision of its services, which includes the capability of OEM inspection services for composite and leak repair; ii) renewing its apprenticeship program; iii) training its field service technicians in multiple service lines and appointing experienced mentors to observe and aid progression; and iv) recruiting more field service technicians to optimise the opportunities available for revenue growth and to maximise utilisation and minimise the indirect cost base.

The industry outlook for 2026 is favourable with capital projects, predominantly driven by net zero growth across the UK, offering prospects to diversify revenue streams and increase market presence. The company’s most valuable asset, its talented workforce, will continue to drive the creation of innovative solutions to meet its clients’ specific project needs. Likewise, the international market continues to provide opportunities to improve job mix and grow higher margin service lines through the support of agent representation.  

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2024.

The results for the year are set out on page 16.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

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

Engagement with suppliers, customers and others

Delivering our strategy requires strong mutually beneficial relationships with suppliers, customers, governments and national oil companies. TEAM seeks the promotion and application of certain general principles in such relationships. The ability to promote these principles effectively is an important factor in the decision to enter or remain in such relationships and this alongside other standards and controls, which are reviewed and approved by management periodically. The businesses continuously assess the priorities related to customers and those with whom we do business, and management engages with the businesses on these topics, for example, within the context of business strategy updates and possible investment proposals.

Moreover, the Directors receive information updates on a variety of topics that indicate and inform how these stakeholders have been engaged. These range from information provided from the Projects, Engineering, Operational, Sales and Commercial functions (related to items such as possible capital projects, ongoing project updates, customers, business strategies and supplier contract management topics).

Employee involvement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information on matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

Disabled employees

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. All necessary assistance with initial training courses is given. Once employed, a career plan is developed to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

Diversity and Inclusion

We work hard at TEAM to create an environment where team members feel valued, engaged, and inspired to do their best work. We are proud that a diverse group of people from all backgrounds, religions, nationalities, gender orientations, and races make up our team. It continues to be our goal to knock down barriers and eliminate bias wherever it exists through strategic employee-engaged initiatives.

TEAM is an Equal Employment Opportunity employer, and it is the policy of the Company to provide equal employment opportunities to all qualified persons without regard to race, colour, religion, sex, national origin, age, disability, marital status, familial status, parental status, domestic partner status, sexual orientation, gender identity, genetic information, or any other protected characteristic under applicable law.

The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.

MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

The table below represents TEAM’s energy use and associated greenhouse gas (GHG) emissions from electricity and fuel in the UK for the year ended 31st December 2024. The data covers 8 sites in the UK.

UK energy usage and Greenhouse gas emissions data for the period 1st January 2024 to 31st December 2024

Emission factors are based on Government published 2024 GHG conversion factors and utilising the fuel mix disclosures records from the electricity suppliers used by TEAM during the calendar year. Of note one of the suppliers, Sembcorp, disclosed figures are considerably higher than reality as our Wilton facility gets its electrical supply directly from the adjacent biomass generator operated by Sembcorp.

SECR Methodology Statement 2024

The SECR submission has been compiled using the 2024 HM Government Environmental Reporting Guidelines.

Sources for the data collation has been from:

• Energy and Fuel Data – Energy supplier billing data and electricity half hour data and invoices for LPG products used to heat some facilities;

• Transport Data – Company mileage records

CO2 emissions have been calculated using the 2024 UK Government Conversion Factors for Company Reporting and utilising the advertised energy mix ratios of the electricity suppliers used by TEAM.

Energy efficiency measures

The company remains firmly committed to reducing energy consumption and minimizing waste, with these priorities integrated into our Environmental Audits conducted throughout the year. In 2024, we began to develop a strategic action plan in line with ESOS compliance requirements, focusing on broader energy-saving initiatives across our operations.

Separately, we undertook targeted analysis of driver energy efficiency, monitoring vehicle idling times and providing tailored feedback to employees to encourage more sustainable driving practices.

We also advanced our transition to energy-efficient infrastructure by expanding the installation of LED lighting across our facilities. In parallel, the majority of company cars were upgraded to plug-in hybrids during 2024—a key step in our low-emissions strategy that will continue into 2025.

Emissions Ratio

2024 – 18.3 Tonnes of Carbon Dioxide per million pounds of Turnover (2023 – 17.8 Tonnes of Carbon Dioxide per million pounds of Turnover).

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principal risks and uncertainties and future developments.

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.

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 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 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.

We have audited the financial statements of Team Industrial Services (UK) Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, 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 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor 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 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:

• Enquiries with management about any known or suspect instances of non-compliance with laws and regulations and fraud;

• Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to future performance of the company;

• An evaluation of the risk of management override of controls and subsequent testing, including through testing journal entries and other adjustments for appropriateness;

• Auditing the risk of fraud in revenue by way of cut off testing as well as sales transaction testing, to obtain evidence that revenue is complete and recognised in the correct accounting period;

• An evaluation of the company's internal control environment; and

• A review of board minutes.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities 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.

Use of our report

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

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Team Industrial Services (UK) Limited is a private company limited by shares and incorporated in England and Wales under the Companies Act 2006. The address of the registered office is given on the Company Information page and the nature of the Company's operations and its principal activities are that of repair of leak sealing and repair services to pipes, tank vessels and other structure.

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The 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 £'000.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Team Inc. These consolidated financial statements are available from its registered office, http://investor.teaminc.com.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Team Industrial Services (UK) Limited is a parent company that is also a wholly owned subsidiary of Team Inc and the results of Team Industrial Services (UK) Limited are included in the consolidated financial statements of Team Inc which are available from http://investor.teaminc.com.

The board continue to take actions to manage cash flows closely and to seek other revenue sources to ensure that the business can manage through any impacts that it may face during the ongoing period of re-growth. true

The Directors are required to prepare these financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. This assessment has been carried out on the cash flows of Team Inc. group of UK companies, which the company is a member of, as cash is managed by a centralised treasury function who ensure all parts of the UK Group have sufficient cash to meet their immediate needs. As part of the arrangement, the Group has issued a letter of support for all UK Group companies, for a period of twelve months from the date of approval of these financial statements which includes both making funds available if required and not to seek repayment of amounts due at the balance sheet date if this would be detrimental to the company. As part of the review, it was determined that the company is not reliant on the support of the Group.

Further, the board are managing cash flows and implementing other mitigating actions to ensure that the business can manage through any impacts that it may face. In the worst-case scenario, the forecast requires the use of existing borrowing facilities. For planning purposes, the company frequently updates its view on likely trading patterns, incorporating latest intelligence on demand, cost reduction actions and reduced capital expenditure. Importantly these realistic scenarios provide good headroom against the worst-case scenario. At the time of writing this report the company is trading ahead of the most severe forecasts at both the sales and profit level. Nevertheless, there there are further mitigating actions that could be enacted, these could include but are not limited to reductions in capital expenditure, business expenditure and overheads.

The company believes that with the current business activity levels, support provided by Team Inc., the cost savings enacted and the potential for further savings. The board is satisfied it has sufficient cash resources to meet its obligations as they fall due throughout this duration and the board has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the annual report and financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for sales of goods and services in the ordinary nature of the business. Turnover is shown net of Value Added Tax, of goods and services provided to customers and, in case of contracts, credit is taken appropriate to the stage of completion when the outcome of the contract can be ascertained with reasonable certainty.

The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably revenue is recognised only to the extent of the expenses recognised that are recoverable.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

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

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of

such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Land is not depreciated. Depreciation on assets under construction does not commence until they are complete and available for use. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

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

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

The part of the annual depreciation charge on revalued assets which relates to the revaluation surplus is transferred from the revaluation reserve to the Statement of Comprehensive Income.

Investments in subsidiaries are measured at cost less accumulated impairment. Where merger relief is applicable, the cost of the investment in a subsidiary undertaking is measured at the normal value of the shares issues together with the fair value of any additional consideration paid.

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the statement of comprehensive income.

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

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:

• The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

• Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The Company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the Statement of Comprehensive Income in the year they are payable.

The Company also operates a defined benefit scheme for certain employees.

Pension scheme assets are measured using market value. Pension scheme liabilities are measured using the projected unit actuarial method and are discounted at the current rate of return on a high quality corporate bond of equivalent terms and currency to the liability. The increase in the present value of the liabilities of the Company’s defined benefit pension scheme expected to arise from employee service in the period is charged to operating profit. The expected return on the scheme’s assets and the increase during the year in the present value of the scheme’s liabilities arising from the passage of time are included in other finance income. Actuarial gains and losses are recognised in the Statement of Comprehensive Income.

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

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Nonmonetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are

measured initially at fair value, net of transaction costs, and are measured subsequently at amortised

cost using the effective interest method, less any impairment.

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank

loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at

amortised cost using the effective interest method.

Interest Income

Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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

Actuarial assumptions are made in valuing future defined benefit pension obligations as set out in note 21 and are updated periodically. The principal assumptions related to the rate of inflation and the discount rate. The assumed rate of inflation affects the rate at which salaries grow and therefore the size of the pensions that employees receive on retirement. The discount rate is equal to the yield on high-quality corporate bonds that have a term to maturity approximating that of the related liability, and is potentially subject to significant variation. As a result, there is uncertainty that these assumptions will continue in the future. Whilst changes in other assumptions would have an impact, the effect would not be as significant.

Revenue is recognised when the significant risks and rewards have transferred to the customer. The company recognises revenue in respect of the rendering of services over time. A stage of completion approach is used to measure progress towards completion of the performance obligation based on an estimate of the costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total anticipated costs. Where a service has only been partially provided at the year-end date, revenue represents the value of the services rendered to date based on stage of completion at the balance sheet date.

Exceptional items relate to the dissolution of Furmanite China in 2023 requiring write off of intercompany receivables to the value of £111k during the previous year.

The prior year figures have been restated to disclose separately audit fees payable for the company and on behalf of fellow subsidiaries.

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

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

Legislation was enacted with effect from the accounting period ended 31 December 2024 to implement the Pillar Two Model Rules published by the OECD. Team Industrial Services (UK) td is within the scope of Pillar Two. Tax chargeable under Pillar Two is £nil in the period (2023: N/A).

Furmanite International Limited Pension Plan holds fixed and floating charge over the assets within Team Industrial Service (UK) Limited.

The Company's freehold property was valued on 30 September 1990 by the directors, based on an independent valuation carried out at that date on an open market basis.

On transition to FRS 102 the Company elected to use previous UK GAAP valuations carried out before the date of transition as its deemed cost at the transition date.

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

Details of the company's subsidiaries at 31 December 2024 are as follows:

There is no material difference between the replacement cost of stock and the amounts disclosed above.

The carrying value of stocks are stated net of impairment losses totalling £106,000 (2023 - £130,000). Impairment debits totalling £24,000 (2023 - £21,000 credits) were recognised in profit and loss during the year due to slow-moving and obsolete stock.

The impairment loss recognised in the company profit and loss for the year in respect of bad and doubtful trade debtors was £106,291 (2023 - £97,748).

Amounts owed by group undertakings are interest free and due on demand.

Amounts owed to group undertakings are interest free and due on demand.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £487,919 (2023 - £468,588). Contributions totalling £95,044 (2023 - £95,078) were payable to the fund at the reporting date.

The Company operates a defined benefit pension scheme.

The Company sponsors the Pension and Life Assurance Plan of Furmanite International Limited, a funded defined benefit pension scheme in the UK. The Plan is set up on a tax relieved basis as a separate trust independent of the Company. The Trustees are responsible for ensuring that the correct benefits are paid, that the Plan is appropriately funded and that Plan assets are appropriately invested.

The Plan closed to future benefit accrual on 31 October 2013. On closure, the link to pensionable salary for active members ceased and all active members at that time became deferred members of the Plan. The Plan provides pensions and lump sums to members on retirement and to their dependants on death.

Since the closure of the Plan to benefit accrual on 31 October 2013, no employee contributions have been paid. The Company meets the ongoing funding costs of the Plan, as determined by regular actuarial valuations, which are usually carried out every three years. The Trustees are required to use prudent assumptions to value the liabilities and costs of the Plan whereas the accounting assumptions must be best estimates.

Under the Schedule of Contributions agreed as part of the 2017 valuation, the Company agreed to make fixed monthly contributions into the Plan totalling £3.0m per annum over the period 1 April 2020 to 31 December 2023.

A formal actuarial valuation was carried out as at 1 November 2023. The results of that valuation have been projected to 31 December 2024 by a qualified independent actuary. The figures in the following disclosure were measured using the Projected Unit Method.

Assumed life expectations on retirement at age 65:

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

The actual return on plan assets was £1,681,000k (2023 - £3,144,000k).

The share premium account includes the premium on issue of equity shares, net of any issue costs.

The aggregate surplus or deficit arising on revaluation is transferred to the revaluation reserve except where a deficit is deemed to represent a permanent diminution in value, in which case it is charged to the Statement of Comprehensive Income.

During the year the company entered into the following transactions with related parties:

The Company has taken advantage of the exemption available in section 33.1A of FRS 102 not to disclose transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.

The Company is a wholly owned subsidiary of Furmanite 1986 Limited, a Company registered in England and Wales at Furman House, Shap Road, Kendal, Cumbria, England, LA9 6RU. Team, Inc, a Company incorporated in the USA, is the ultimate parent Company.

The Company's results are consolidated in the accounts of Team, Inc, and is the smallest and largest group for which consolidated accounts are prepared and publicly available. Copies of the Team, Inc accounts are available from the registered office at Team, Inc, 13131 Dairy Ashford, Suite 600, Sugar Land, TX 77478, United States of America or on their website at http://investor.teaminc.com.