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

The group continues to provide full external façade packages including cladding, windows, structural steel, architectural metalworks and internal plastering drylining. The group has in-house design and manufacturing facilities. It is a specialist business combining design, direct procurement of raw materials, fabrication and site installations on a wide variety of construction projects.

The group will continue to invest in freehold land and buildings both to provide office, factory and warehouse spaces for its own operations and as investments.

The group continues to inspire development and leadership in its sector by providing innovative measures including Quality Assurance procedures, internal management training programs and continually, strives to improve its financial system to mitigate all wasted costs.

The group was awarded the prestigious Fast Payer Award for 2025. This award is given to companies that have consistently paid their suppliers (on average) in 27 days or less and paid 95% or more of their invoices on time.

The principal risks are the sluggish housing market and the shortage of labour in the future. There are also delays on new housing starts due to Building Safety Regulator (BSR) approvals. With the changes at BSR, it seems to be resolving itself.

With these challenges, the group feels that it is in a strong position to carry on working with clients where sites are built for housing associations, local authorities and build to rent.

The group has also always had strong presence outside of London and on low rise sites where BSR approvals are not required.

The group works in a close relationship with its supply chain and has been fully supported by material suppliers and manufactures to stabilise prices. As a result of this, the group saw no increase in material prices in the past 12 months. The group will continue to improve efficiencies in its processes and in its buying decisions.

The group has had its share of Grenfell affected sites from the past and has been dealing with them proactively in the interests of all involved.

The group is of a size and has a sound financial base which together with its experience and knowledge enables it to deliver high quality work on contracts of all sizes.

Exposure to liquidity, credit, cash flow and interest rate risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Group policies are aimed at minimising such losses, and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. Details of the group’s debtors including retentions are shown in Note 19 to the financial statements. The group’s clients are well recognised ‘Blue Chip’ companies and the debtors are well spread over these clients.

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The group aims to mitigate liquidity risk by managing cash generation by its operations, and by applying rigorous procedures for settling final accounts and collecting debtors as they fall due, including retentions.

Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability, such as future interest payments on a variable rate debt. The group managers this risk by ensuring that there are sufficient ongoing cash reserves to meet obligations.

The group’s turnover has been similar to the previous year reflecting the general outlook of the economy.

The group's gross profit margin is 25.10%.

Turnover is forecasted to be similar in the next 12 months to 31 March 2026.

Looking beyond 31 March 2026, the directors expect a reduction in the number of sites available due to the BSR delays which may have an affect on the group's turnover for the year to 31 March 2027.

Whenever decisions are made, consideration is always given to the effect of these decisions in the long-term. The directors consider the long-term consequences on the group and on its employees to be of paramount importance.

The group works closely across all its business relationships which it has always found to provide mutual benefit. Maintaining a reputation for high standards in all areas of the business and with all stakeholders is a core element of the group and shows in positive feedback received from clients, suppliers and staff.

The group employs its own inspectors to continually monitor health, safety and quality control procedures ensuring that high standards are maintained throughout.

By investing in training, staff are able to take on new opportunities and challenges, this in turn brings benefit to the group in terms of improved procedures, products, health, safety and customer services.

At its offices, the group has taken over 20 fresh graduates in this year's intake who have either finished their degrees or are studying on day release.

In the wider community the group looks to make decisions that improve wellbeing, encouraging participation in sport, investing in fuel-efficient vehicles, electric cars and waste reduction measures. The group has also continued to support charitable activities during the year.

The directors are aware of their requirement to act fairly between the members and take this requirement into account whenever major operational or financial decisions are made.

On behalf of the board

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

The principal activity of the company and group continued to be that of providing full facade and drylining packages principally for the housing sector, together with property investment.

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £1,042,000. The directors do not recommend payment of a further dividend.

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

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

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

Information about 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.

The group will continue to provide full external facade packages and internal plastering drylining works.

The group will continue to invest in property when the right opportunities arise.

In accordance with the company's articles, a resolution proposing that Perrys Audit Limited be reappointed as auditor of the group will be put at a General Meeting.

Reporting Boundary and Methodology

The reporting period for compliance is from 1 April 2024 to 31 March 2025. The reporting boundary includes Scope 1, Scope 2 and Scope 3 emissions from electricity and gas consumption. The group has utilized the Greenhouse Gas (GHG) Protocol under the Science-Based Targets initiative (SBTi) framework to calculate its carbon emissions.

The calculations for the reporting period indicate the group’s total electricity use was 86,635 kWh, with no Greenhouse Gas (GHG) emissions recorded during the year. Location Based Emissions related to electricity Scope 2 - 15.334 tCO₂e .

The group reports emissions associated with purchased electricity (FERA). These are not included in Scope 1 or Scope 2. FERA - Electricity (Scope 3): 5.926 tCO₂e .

Energy Efficiency Actions Taken

Over the year, the group has focused on establishing a robust foundation for achieving future reduction targets. This includes refining and formalizing data collection practices in line with the GHG Protocol. By improving data accuracy, the group aims to correctly measure emissions and prioritize efforts on the most critical areas for reduction.

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 auditor of the company 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 auditor of the company 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 group and company, and of the profit or loss of the group 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;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £4,858,182 (2024 - £204,616 profit).

Akaal Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 2nd Floor (Right) Downe House, 303 High Street, Orpington, Kent, England, BR6 0NN.

The group consists of Akaal Group Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of 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 £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties at fair value. The principal accounting policies adopted are set out below.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Akaal Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 March 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

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

Turnover represents amounts receivable during the period based on applications for payments raised for works undertaken in the period to date. Turnover is recorded net of value added tax.

Revenue from long-contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. 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 it is probable will be recovered.

Rental income receivable is recognised in the period that the rent relates to.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.

Goodwill, being the amount paid in connection with the acquisition of a business in 2019, is being amortised evenly over its estimated useful life of ten years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Freehold land is not depreciated.

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

Freehold land is not depreciated. The freehold land is included in the accounts at cost.

Investment property, which is property held to earn rentals and for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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

Stocks are valued at the lower of cost and estimated selling prices less costs to sell, after making due allowance for obsolete and slow moving items.

Stocks represents properties held for development and the cost comprises the total acquisition cost

and other overheads that have been incurred in bringing the stocks to their present location and

condition.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

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

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

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

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

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

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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

In the application of the group’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 basis of measurement of the company's investment properties is fair value which contains judgements, estimates and assumptions on the fair value of the investment properties. As at 31 March 2025, the investment properties were tenanted and the director's valuation takes into consideration that these properties can be let to both tenants or operational businesses. The director has assessed the open market value of the properties by reference to the purchase price of the properties, and by reference to conducting estimates of comparable properties in the same areas and has assessed the open market value to be £25,464,929.

Included within freehold buildings in tangible fixed assets is freehold land which is not depreciated. The value of freehold land is estimated by the director as a proportion of the total cost of the property at acquisition.

An analysis of the group's turnover is as follows:

During the year, the parent company waived a loan owed from an unconnected company.

The average monthly number of persons (including directors) employed by the group and 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:

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

The investment properties above are stated at fair value in the opinion of the directors. Other investment properties held have been included at fair value by the directors on the basis of the open market value by reference to market evidence of transaction prices for similar properties.

Details of the company's subsidiaries at 31 March 2025 are as follows:

Manak Homes Limited (company number 05282843) and Stanmore Steel Limited (company number (08510574) are exempt from the requirements of the Companies Act relating to the audit of individual accounts by virtue of s479A of the Companies Act.

Stock comprises of properties held for development of £24,227,583 (2024: £5,514,783).

The group's overdraft facility is secured by fixed and floating charges over the group's assets present and future. The groups overdraft position at 31 March 2025 totalled £nil (2024 - £7,811).

The company has entered into a cross guarantee arrangement with its bankers in relation to its subsidiaries Stanmore Contractors Limited and Stanmore Steel Limited. At 31 March 2025, the liabilities in the other companies guaranteed by this company amount to £Nil.

As at 31 March 2025, loans and overdrafts in the parent company, subject to the above guarantee, amounted to £2,007,213 (2024 - £2,415,630). These loans are also secured by way of legal mortgages over the group's freehold and investment properties.

Hire purchase liabilities totalling £3,673 (2024 - £307,496) are secured by the group on the assets purchased under the hire purchase agreements.

Interest rates on these loans is variable based on the risk profile of the borrowing at the time and any other factors as appropriate.

An analysis of the maturity of loans is given below:

Finance lease payments represent rentals payable by the company or group 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 3 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 group and company, and movements thereon:

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

As at the balance sheet date, the group was owed £2,509,883 (2024: £2,489,993) from a company under ownership of a family member of the director.

As at the balance sheet date, the company was owed £38,975 (2024: £38,794) from a company under ownership of a family member of the director.

Dividends totalling £1,042,000 (2024 - £550,053) were paid in the year in respect of shares held by the company's directors.

At the 31 March 2025 there was an overdrawn director's loan account of of £645,852 (2024 - £nil), this is included within other debtors. This includes interest charged of £6,276 (2024: £nil).

The director's loan account balance has been repaid within nine months of the year-end.

R S Manak, a director, controls the company by virtue of his shareholding.

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

The consolidated group accounts of Akaal Group Limited are available from its registered office at Stanmore House Gyproc Business Park, Church Manorway, Erith, Kent, United Kingdom, DA8 1DE.

A prior period adjustment has been made to reclassify assets previously held as investment property to stock. This is on the basis that these assets were held for development and resale.

The cost value of these properties totals £5,514,783. The fair value of these properties previously recorded in investment property totals £7,818,441.

A further prior period adjustment has been made to reclassify an asset which was previously held as freehold land and buildings to investment property. This is on the basis that this asset was being used to generate rental income, hence the reclassification to investment property.

The cost value of this property totals £522,120. The net book value of this property previously recorded in freehold land and buildings totals £419,436.

The total impact of the above prior period adjustments results in an overall reversal of fair value increase and deferred tax on investment property of £2,024,321.

We have audited the financial statements of Akaal Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows 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 group's and the parent company's affairs as at 31 March 2025 and of the group's 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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent 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 group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We gained an understanding of the legal and regulatory framework applicable to the group and the industry in which it operates, and considered the risk of acts by the group that were contrary to applicable laws and regulations, including fraud.

We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, UK tax legislation, Health and Safety and ISO regulations. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and review of health and safety and various accreditations records.

We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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 parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.