REGISTERED NUMBER: 05462871 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

ESR TECHNOLOGY LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTOR:

R G Chand

SECRETARY:

S Gaddu

REGISTERED OFFICE:

202 Cavendish Place

Birchwood Park

Birchwood

Warrington

WA3 6WU

REGISTERED NUMBER:

05462871 (England and Wales)

AUDITORS:

Armstrongs Accountancy Ltd

Chartered Accountants and Statutory Auditor

1 & 2 Mercia Village

Torwood Close

Westwood Business Park

Coventry

West Midlands

CV4 8HX

The director presents his strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS

At ESR Technology, we are committed to delivering robust growth and sustainable value for our clients and staff alike. Our core focus remains on providing industry-leading Engineering, Safety, and Risk (ESR) solutions, underpinned by continuous investment in talent and technology. This approach ensures we remain at the forefront of our expert level capabilities in engineering tribology, asset integrity NDT inspection best practices, and safety risk assessment-helping clients optimise performance, reduce energy consumption, and extend lifespans of their critical components, systems and assets.

Heritage and Market Reach:

With a legacy rooted in the technical knowledge development for the nuclear sector since the 1950s, ESR has successfully diversified into energy, transportation, industrial machinery, and the rapidly expanding space sector. Our reputation for technical excellence and adaptability positions us as a trusted partner to blue-chip clients and innovators alike, particularly in the cleaner renewable energy and space markets.

Strategic Growth and Financial Discipline:

We continue to operate within prudent financial parameters, balancing investment in staff development and technology with a disciplined approach to growth. Our strategy continues to focus on account management to secure high-value, prestigious projects while expanding our footprint in new and emerging markets. In 2024, we have made significant investments in HR, marketing, and business development-including international expansion-to support our sustainable growth with improving profitability trajectory. The companies HOIS, NCT, ESTL and Space Mechanism brands are instantly recognisable with the sectors as is its major hazards safety risk consulting and failure analysis expertise for energy transition including carbon capture, utilisation and storage (CCUS), wind farms, hydrogen, battery, and other clean energy technologies.

Innovation and R&D Leadership:

A substantial proportion of our activities are dedicated to research and development, with many projects qualifying for the Research and Development Expenditure Credit (RDEC). Our R&D initiatives drive genuine scientific and technological advancement, often tackling complex challenges with uncertain outcomes. This commitment to innovation not only differentiates ESR in the marketplace but also creates long-term value for our clients and investors.

Performance and Outlook:

Our order book continues to strengthen, resulting in a 9% increase in turnover for 2024 across all supported sectors. Sales growth is carefully managed to ensure we maintain our reputation for quality and reliability, even as we expand our delivery capacity and enter new markets.

Future Outlook:

ESR is well-positioned for continued growth, with a clear strategy to capitalise on opportunities in high-value sectors and a proven track record of delivering engineering, scientific led technical solutions and consulting. Our ongoing investments in people, technology, and business development will underpin our performance and create sustainable value for customers and our staff alike.

ON BEHALF OF THE BOARD:

R G Chand - Director

22 December 2025

The director presents his report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of engineering consultancy.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTOR

R G Chand held office during the whole of the period from 1 January 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

-	select suitable accounting policies and then apply them consistently;

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

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

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Armstrongs Accountancy Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R G Chand - Director

22 December 2025

Opinion

We have audited the financial statements of Esr Technology Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where 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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

-Enquiry with management, those charged with governance around actual and potential litigation and claims;

-Enquiry of entity staff to identify any instances of non-compliance with laws and regulations;

-Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with

applicable laws and regulations;

-Performing audit work over the risk of management override of controls, including testing of journal entries and other

adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course

of business and reviewing accounting estimates for bias;

-Performing audit work over the risk of understatement of turnover including analytical review and obtaining

corroborated explanations from management.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Muhammed Shabbir (Senior Statutory Auditor)

for and on behalf of Armstrongs Accountancy Ltd

Chartered Accountants and Statutory Auditor

1 & 2 Mercia Village

Torwood Close

Westwood Business Park

Coventry

West Midlands

CV4 8HX

22 December 2025

TURNOVER

7,069,107

6,470,218

Cost of sales

4,889,354

4,997,641

GROSS PROFIT

2,179,753

1,472,577

Administrative expenses

2,106,199

1,899,472

73,554

(426,895

)

Other operating income

(62,293

)

18,254

OPERATING PROFIT/(LOSS)

4

11,261

(408,641

)

Interest receivable and similar income

14,115

429

25,376

(408,212

)

Interest payable and similar expenses

5

17,391

21,295

PROFIT/(LOSS) BEFORE TAXATION

7,985

(429,507

)

Tax on profit/(loss)

6

(363,502

)

(139,526

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

371,487

(289,981

)

PROFIT/(LOSS) FOR THE YEAR

371,487

(289,981

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

371,487

(289,981

)

FIXED ASSETS

Intangible assets

7

2,596

438

Tangible assets

8

266,161

435,116

268,757

435,554

CURRENT ASSETS

Debtors

9

4,750,197

4,290,480

Cash at bank

597,716

682,776

5,347,913

4,973,256

CREDITORS

Amounts falling due within one year

10

1,753,998

1,863,569

NET CURRENT ASSETS

3,593,915

3,109,687

TOTAL ASSETS LESS CURRENT LIABILITIES

3,862,672

3,545,241

CREDITORS

Amounts falling due after more than one year

11

392,383

446,439

NET ASSETS

3,470,289

3,098,802

CAPITAL AND RESERVES

Called up share capital

15

1,535,314

1,535,314

Share premium

16

2,096,000

2,096,000

Retained earnings

16

(161,025

)

(532,512

)

SHAREHOLDERS' FUNDS

3,470,289

3,098,802

The financial statements were approved by the director and authorised for issue on 22 December 2025 and were signed by:

R G Chand - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

1,535,314

(242,531

)

2,096,000

3,388,783

Changes in equity

Total comprehensive income

-

(289,981

)

-

(289,981

)

Balance at 31 December 2023

1,535,314

(532,512

)

2,096,000

3,098,802

Changes in equity

Total comprehensive income

-

371,487

-

371,487

Balance at 31 December 2024

1,535,314

(161,025

)

2,096,000

3,470,289

Cash flows from operating activities

Cash generated from operations

1

38,695

(329,027

)

Interest paid

(17,391

)

(21,295

)

Tax paid

138,855

86,786

Net cash from operating activities

160,159

(263,536

)

Cash flows from investing activities

Purchase of intangible fixed assets

(5,859

)

-

Purchase of tangible fixed assets

(63,475

)

(141,084

)

Interest received

14,115

429

Net cash from investing activities

(55,219

)

(140,655

)

Cash flows from financing activities

New loans in year

(110,000

)

(147,000

)

Loan repayments in year

(80,000

)

(80,000

)

Net cash from financing activities

(190,000

)

(227,000

)

Decrease in cash and cash equivalents

(85,060

)

(631,191

)

Cash and cash equivalents at beginning of year

2

682,776

1,313,967

Cash and cash equivalents at end of year

2

597,716

682,776

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit/(loss) before taxation

7,985

(429,507

)

Depreciation charges

236,129

223,668

Amounts recoverable on contract

(198,956

)

167,921

Movement on payments on account

(12,825

)

(35,539

)

Finance costs

17,391

21,295

Finance income

(14,115

)

(429

)

35,609

(52,591

)

Decrease/(increase) in trade and other debtors

73,888

(478,705

)

(Decrease)/increase in trade and other creditors

(70,802

)

202,269

Cash generated from operations

38,695

(329,027

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

597,716

682,776

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

682,776

1,313,967

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

682,776

(85,060

)

597,716

682,776

(85,060

)

597,716

Debt

Debts falling due within 1 year

(80,000

)

-

(80,000

)

Debts falling due after 1 year

(146,667

)

80,000

(66,667

)

(226,667

)

80,000

(146,667

)

Total

456,109

(5,060

)

451,049

1.	STATUTORY INFORMATION

Esr Technology 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 (£), rounded to the nearest £.

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" 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 the receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover is as follows:

Rendering of services:

When the outcome of a transaction can be estimated reliably, turnover from contracts is recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to the services agreed with the customer within the intial contract.

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 three years.

Tangible fixed assets

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

Improvements to property

-

10% on cost

Plant and machinery

-

at varying rates on cost

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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

2024

2023

£

£

Wages and salaries

3,785,916

3,509,254

Social security costs

359,310

332,477

Other pension costs

256,858

241,581

4,402,084

4,083,312

The average number of employees during the year was as follows:

2024

2023

Staff members

81

78

2024

2023

£

£

Director's remuneration

68,344

65,945

4.	OPERATING PROFIT/(LOSS)

The operating profit (2023 - operating loss) is stated after charging/(crediting):

2024

2023

£

£

Hire of plant and machinery

6,247

6,890

Other operating leases

189,744

190,643

Depreciation - owned assets

232,430

204,210

Computer software amortisation

3,701

19,458

Auditors' remuneration

16,750

-

Foreign exchange differences

62,293

(17,988

)

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank loan interest

17,391

21,295

6.

TAXATION

Analysis of the tax credit

The tax credit on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

85,588

-

Withholding tax

2,399

1,629

R & D Credit

(451,489

)

(141,155

)

Tax on profit/(loss)

(363,502

)

(139,526

)

7.	INTANGIBLE FIXED ASSETS

Computer

software

£

COST

At 1 January 2024

545,747

Additions

5,859

At 31 December 2024

551,606

AMORTISATION

At 1 January 2024

545,309

Amortisation for year

3,701

At 31 December 2024

549,010

NET BOOK VALUE

At 31 December 2024

2,596

At 31 December 2023

438

8.	TANGIBLE FIXED ASSETS

Improvements

to

Plant and

property

machinery

Totals

£

£

£

COST

At 1 January 2024

1,772,890

1,855,845

3,628,735

Additions

-

63,475

63,475

At 31 December 2024

1,772,890

1,919,320

3,692,210

DEPRECIATION

At 1 January 2024

1,500,231

1,693,388

3,193,619

Charge for year

183,447

48,983

232,430

At 31 December 2024

1,683,678

1,742,371

3,426,049

NET BOOK VALUE

At 31 December 2024

89,212

176,949

266,161

At 31 December 2023

272,659

162,457

435,116

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

1,100,384

1,206,720

Amounts owed by group undertakings

2,587,851

2,477,851

Amounts recoverable on contract

438,136

239,178

Other debtors

24,419

22,484

Tax

365,901

141,254

Prepayments

233,506

202,993

4,750,197

4,290,480

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Bank loans and overdrafts (see note 12)

80,000

80,000

Payments on account

944,139

956,964

Trade creditors

186,457

262,083

Social security and other taxes

107,263

94,905

VAT

106,622

85,444

Other creditors

52,308

56,361

Accrued expenses

277,209

327,812

1,753,998

1,863,569