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Registered number: 11439011 POLLITT HOLDINGS LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
POLLITT HOLDINGS LIMITED COMPANY INFORMATION
Directors | J T Pollitt
| T E Pollitt
Company secretary | N Epton
Registered number | 11439011
Registered office | 24 Martin Lane
| London
| EC4R 0DR
Independent auditor | S&W Audit
| Chartered Accountants & Statutory Auditor
| 45 Gresham Street
| London
| EC2V 7BG
POLLITT HOLDINGS LIMITED CONTENTS
| Page
Group Strategic Report | 1 - 7
Directors' Report | 8 - 10
Directors' Responsibilities Statement | 11
Independent Auditor's Report | 12 - 16
Consolidated Statement of Comprehensive Income | 17
Consolidated Statement of Financial Position | 18 - 19
Company Statement of Financial Position | 20 - 21
Consolidated Statement of Changes in Equity | 22
Company Statement of Changes in Equity | 23
Consolidated Statement of Cash Flows | 24 - 25
Consolidated Analysis of Net Debt | 26
Notes to the Financial Statements | 27 - 49
POLLITT HOLDINGS LIMITED GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
Introduction
The directors present the Strategic Report for Pollitt Holdings Limited (the "Group") for the financial year ended 31 December 2024.
Business review
The Group Pollitt Holdings Limited owns 100% of the issued share capital of: ∙Borough Engineering Services Limited (BESL) ∙Throgmorton Mechanical & Electrical Services Limited (TMESL) ∙Pollitt Developments Holdings Limited ∙Omni Air Limited ∙Pollitt Developments (Sandbach) Limited The Group continues to operate as a specialist building engineering services provider across commercial, residential, data centre, and high-end fit-out sectors, primarily within London and the Southeast. Principal Activities of the Group Borough Engineering Services Limited (BESL) A specialist Building Services Management Contractor offering design and installation services in commercial, residential, and fit-out sectors. Throgmorton Mechanical & Electrical Services Limited (TMESL) A Mechanical, Electrical & Public Health contractor delivering design and installation solutions, with a focus on data centres, plant replacement, and super-prime residential sectors. Omni Air Limited A specialist ductwork design, manufacture, and installation company operating under the TE Group structure, servicing both internal Group projects and external clients. Pollitt Developments (Sandbach) Limited A development entity focused on identifying and delivering small-scale residential land opportunities. Page 1
POLLITT HOLDINGS LIMITED GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Group Financial Performance
The Group continues to demonstrate resilience and operational strength despite ongoing macroeconomic pressures impacting the construction sector. The Group achieved a record turnover of £124 million in 2024, the highest in its trading history. Although turnover has moderated in subsequent periods due to delayed project commencements, profitability has remained robust, underpinned by disciplined cost management and margin control. The Group has strong cash reserves at year end, and a substantial forward order book, providing significant revenue visibility into 2025 and beyond. Operational efficiency, risk management, and margin protection remain central to the Board’s strategy. The key financial parameters are as follows:
| 2024 | As restated 2023
| £000 | £000
Revenue | 123,549 | 64,807
Gross Profit | 7,730 | 6,472
Profit before Tax | 1,884 | 1,331
Cash | 15,635 | 15,084
Net Current Assets | 12,221 | 9,902
Net Assets | 15,155 | 13,597
Working Hours | 819,291 | 432,087
Page 2
POLLITT HOLDINGS LIMITED GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Group Expansion – Formation of Omni Air Limited
During 2024, the Board approved the incorporation of Omni Air Limited, a strategic addition to the Group’s structure. Omni Air Limited was established to provide specialist ductwork and air distribution services, enhancing the Group’s vertical integration and reducing reliance on third-party suppliers. The creation of this entity strengthens programme certainty, improves cost control, and enhances quality assurance across projects. In its first few months of trading during 2024, Omni Air Limited generated turnover of approximately £1.5 million, exceeding initial expectations and demonstrating immediate demand for its services. The Board anticipates that Omni Air Limited will achieve turnover in excess of £8 million by 2026, supported by: ∙Allocation of internal Group contracts ∙Expansion of external client relationships ∙Investment in manufacturing capability ∙Recruitment and development of skilled labour The Directors believe this expansion materially strengthens the Group’s competitive position and supports long-term sustainable growth. Page 3
POLLITT HOLDINGS LIMITED GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Principal Risks and Uncertainties
The Group continues to monitor and manage the following key risks: Economic and Market Risk The construction sector remains sensitive to inflationary pressures, interest rate fluctuations, and client funding constraints. The Group mitigates these risks through careful contract negotiation, early supplier engagement, and disciplined tender pricing. Supply Chain Risk Global trade disruption and material lead times continue to present challenges. The establishment of Omni Air Limited enhances supply chain resilience and reduces exposure to external subcontractor volatility. Labour Shortages The national shortage of skilled labour remains a sector-wide challenge. The Group continues to invest in apprenticeship schemes and workforce development to support sustainable growth. Financial Risk Strong cash management, debtor control, and forward planning remain core to maintaining the Group’s financial strength. Board Decision Making: Section 172 Statement The board considers the impact of their decision making on the key stakeholders of the business. The following stakeholders have been identified. We have considered how we engage with those stakeholders and what impact our decisions and strategies have upon them. Environmental, Social, and Governance (ESG) The Group remains committed to reducing its environmental impact and enhancing sustainability. The implementation of the Sustainability Strategy in 2022 enabled the Group to achieve certified carbon neutrality and full PAS 2060 compliance. Efforts to improve waste management and reduce carbon emissions are ongoing, with a particular focus on Scope 3 emissions. Streamlined Energy and Carbon Reporting (SECR) Compliance Statement This report outlines Pollitt Holding Limited’s energy use and Greenhouse Gas (GHG) emissions in compliance with the SECR requirements for the financial year ending 31 December 2024. Introduction Pollitt Holding Limited is committed to sustainable practices and environmental stewardship. This report details the company’s efforts in carbon management, social responsibility, and governance practices, with a specific focus on compliance with SECR. Page 4
POLLITT HOLDINGS LIMITED GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Overview This report outlines Pollitt Holdings Limited’s energy consumption and greenhouse gas (GHG) emissions for the year ending 31 December 2024. The company operates solely within the United Kingdom and trades as Borough Engineering Services Limited (BESL) and Throgmorton Mechanical & Electrical Services Limited (TMESL). The reporting is completed in accordance with the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 and aligns with the methodology required under PPN 06/21. Organisational and Reporting Scope The data presented covers all BESL/TMESL operations and associated offices. There were no overseas operations or subsidiaries included within the boundary. This is the first full year of SECR reporting with all Scope 3 activities for Pollitt Holdings, and the company intends to use this as a baseline for future reduction targets and monitoring.
Energy Use and Greenhouse Gas Emissions
Energy Source | Usage (kWh) | Usage (kWh) | Emissions (tCO2e) | Notes
Electricity (purchased) | 66,242.63 | 2 | 13.7 | Grid-supplied electricity
Gas | 0 | 1 | 0 | No gas used during 2024
Transport Fuel | 0 | 1 | 0 | No company vehicles in operation
Total (Scopes 1 & 2) | 66,242.63 |  | 13.7 |
Scope 3 Emissions (tCO2e):
Category | Emissions
Purchased goods and services | 63,098.1
63,098.1 | 32.5
Business travel | 0.4
Homeworking | 1.9
Capital goods | 1.9
Fuel and energy-related activities | 1.2
Waste generated in operations | 1.2
Total Scope 3 | 63,156.3
Page 5
POLLITT HOLDINGS LIMITED GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Overall total (Scopes 1, 2 & 3): 63,170 tCO2e Previous Year Comparison
Emissions Source | Amount (2023) | Amount (2024) | % Reduction
Electricity (KWh) | 48,252 | 66,243 | 0%
Gas (KWh) | 0.00 | 0.00 | 0%
Transport (CO2e) | 627.78 | 0.00 | 100%
Total Emissions Scope Summary | Calculated Emissions (tCO2e) | % Reduction
| 2023 | 2024 |
Scope 1 (direct emissions) | 0 | 0 | 0%
Scope 2 (indirect greenhouse gas emissions) | 11.94 | 13.7 | 0%
Scope 3 (other indirect greenhouse gas emissions) | 88.49 | 63,156.3 | 0%
Total | 100.4 | 63,170 | 0%
Methodology Calculations follow the Greenhouse Gas Protocol: Corporate Accounting and Reporting Standard. The latest UK Government emission conversion factors (2024) were applied. Where direct data was unavailable, reasonable assumptions and secondary data sources were used. All data was quality checked and assigned confidence rankings to ensure transparency and accuracy. Energy Intensity The company has adopted an intensity metric of tonnes of CO2e per £m turnover. With total emissions of 63,170 tCO2e and turnover of £124 million, the resulting intensity ratio is:
| 2023 | 2024 | % Reduction
Turnover | £70m | £124m |
Intensity Ratio (tCO2e) | 1.43 | 505.36 | 0%
Page 6
POLLITT HOLDINGS LIMITED GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Energy Efficiency Measures Pollitt Holdings Limited continues to take steps to reduce its energy use and carbon impact. During the 2024 reporting period, the following measures were implemented: ∙Maintained ISO 14001 Environmental Management certification. ∙Relocated to a new office with significantly lower energy demand. ∙Installed smart plugs to monitor and reduce energy consumption. ∙Introduced company-wide training and awareness sessions focused on energy efficiency and recycling. Planned initiatives for the next 12–36 months include: ∙Strengthening data collection processes to improve accuracy. ∙Collaborating with sub-contractors to identify opportunities to reduce their emissions. ∙Engaging suppliers that are actively reporting and reducing their own carbon footprints. Targets and Net Zero Commitment Pollitt Holdings Limited is committed to achieving Net Zero greenhouse gas emissions by 2050, in line with the UK Government’s target. Near-term target (by 2030): Reduce Scope 1 and 2 emissions by at least 42%, to no more than 7.9 tCO2e. Long-term target (by 2050): Achieve a minimum 90% reduction across all scopes (1, 2, and 3), reducing emissions to no more than 6,317 tCO2e, with the remainder balanced through verified offsetting measures. Governance and Approval This report has been prepared and reviewed in accordance with SECR requirements. It has been approved by the Board of Directors of Pollitt Holdings Limited. This report was approved by the board and signed on its behalf.
................................................ J T Pollitt Director
Date: 26 March 2026
Page 7
POLLITT HOLDINGS LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The directors present their report and the financial statements for the year ended 31 December 2024.
Principal activity
The principal activity of the Group in the period under review is detailed in the Strategic Report on page 1.
Results and dividends
The profit for the year, after taxation, amounted to £1,558,000 (as restated 2023 - £1,135,000). Dividends of £Nil will be distributed for the year ended 31 December 2024 (2023 - £Nil)
Directors
The directors who served during the year were:
J T Pollitt
T E Pollitt
A D Brindle (resigned 5 January 2024)
Financial instruments
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans to related parties. Debt instruments that are receivable and payable within one year, typically receivables and payables, are measured at the undiscounted amount of the cash and other considerations, expected to be received or paid. Debt instruments that are receivable or payable in more that one year, typically retentions on long term contracts, are discounted based on the deemed cost of the company but are considered immaterial and are not adjusted. Financial assets which are measured at cost and amortised cost are assessed at the end of the accounting period for objective evidence of impairment. If objective evidence of impairment is found an impairment loss is recognised in the profit and loss. Cash and cash equivalents represent cash held and bank balances. Interest income and interest expense arising for financial assets and financial liabilities measured using amortised cost is recognised in the profit and loss using the effective interest rate. Page 8
POLLITT HOLDINGS LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Research and development activities
Research and development The Group encourages research and developments. Research and development programs are managed to obtain a balance between improvements to existing products and development of new products. No costs were capitalised during the period (2023 - £Nil). Donations The Group made donations of £40,431 (2023 - £46,236) to UK charities during the period.
Engagement with suppliers, customers and others
The Group has chosen to set out information regarding engagement with suppliers, customers and others within the Company's strategic report.
Disclosure in the Strategic Report
The Group has chosen in accordance with section 414C(11) to set out information regarding the principal risks and future developments within the Company's strategic report.
Disclosure of information to auditor
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information. Page 9
POLLITT HOLDINGS LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Post balance sheet events
Subsequent to the year end, all active projects of Throgmorton Mechanical & Electrical Services Limited were novated to Borough Engineering Services Limited. Only projects that were already nearing completion have remained within Throgmorton Mechanical & Electrical Services Limited. As a result of this transfer of operations, Throgmorton Mechanical & Electrical Services Limited is significantly winding down its operational activities. Discussions regarding the future operations and strategic direction of the entity remain ongoing. As these events occurred after the reporting date and relate to conditions that arose subsequent to year end, they are classified as non-adjusting post balance sheet events. Accordingly, no adjustments have been made to the amounts recognised in these financial statements.
Auditor
The auditor, S&W Audit (a trading name of S&W Partners Audit Limited), will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board and signed on its behalf.
................................................ J T Pollitt Director
Date: 26 March 2026
Page 10
POLLITT HOLDINGS LIMITED DIRECTORS' RESPONSIBILITIES STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2024 The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group 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 for the Group's financial statements 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 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 11
POLLITT HOLDINGS LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POLLITT HOLDINGS LIMITED
Opinion
We have audited the financial statements of Pollitt Holdings Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash flows, Consolidated Analysis of Net Debt and the 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 FRS 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 Parent Company's affairs as at 31 December 2024 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.
Material uncertainty related to going concern
We draw attention to note 2.4 in the financial statements, which indicates that at the date of approval of these financial statements, the Group and Parent Company are dependent on the successful receipt of £4 million from a key customer or securing alternative financing to support short term working capital requirements. As noted in 2.4, the Directors expect the £4 million to be received following ongoing negotiations with the customer. However, at the date of approval of these financial statements, the negotiations have not been contractually finalised, and the funds have not yet been received. The Directors are also in discussions with potential thirdparty lenders regarding alternative financing to support short-term working capital requirements, however no formal financing arrangements were in place at the date of approval of these financial statements. As stated in note 2.4, these conditions indicate that a material uncertainty exists that may cast significant doubt over the Group’s and Parent Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. Page 12
POLLITT HOLDINGS LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POLLITT HOLDINGS LIMITED (CONTINUED) Notwithstanding the above, 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. 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 and financial statements, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the Annual report and financial statements. 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.
Opinion 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 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.
Matters on which we are required to report by exception
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. Page 13
POLLITT HOLDINGS LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POLLITT HOLDINGS LIMITED (CONTINUED)
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on page 9, 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 Group's and 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 Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 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 obtained an understanding of the Group's and Parent Company's legal and regulatory framework through enquiry of management concerning their understanding of relevant laws and regulations and the entities' policies and procedures regarding compliance. We understand that the Group and Parent Company complies with requirements of the framework through: ∙Updating operational procedures, manuals and internal controls as legal and regulatory requirements change. ∙The Directors’ close involvement in the day-to-day running of the business, meaning that any litigation or claims would come to their attention directly. ∙Engaging external experts as required, including assistance with tax compliance and statutory accounts preparation. Page 14
POLLITT HOLDINGS LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POLLITT HOLDINGS LIMITED (CONTINUED) In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements and which are central to the Group and the Parent Company's abilities to conduct their business and where failure to comply could result in material penalties. We identified that the principal risks of non-compliance with laws and regulations related to health and safety, competition and employment law and regulations. The Group and Parent Company must also comply with the Companies Act 2006 and FRS102 in respect of the preparation and presentation of the financial statements. We performed the following procedures to gain evidence about compliance with the significant laws and regulations identified above: ∙Enquired of management and those charged with governance as to the risks of non-compliance and any instances thereof; ∙Reviewed minutes of meetings of those charged with governance; ∙Reviewed legal expenditure incurred during the financial period and considered any indicators of significant ongoing or completed litigation procedures; and ∙Obtained written management representations regarding disclosure of any non-compliance or suspected non-compliance with laws and regulations. The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the financial statements to material misstatement, including how fraud might occur. The key areas identified as part of the discussion were with regard to manipulation of the financial statements through manual journals and incorrect recognition of revenue. The procedures we carried out to gain evidence in the above areas included: ∙Testing of manual journal entries, selected through applying specific risk assessments based on the parent Company's and group’s processes and controls surrounding manual journals; ∙Substantive work on revenue recognition, including the agreement of a sample of contracts through to supporting documentation; and ∙Challenging assumptions and judgements made by management in its accounting estimates or judgements, particularly in relation to long term contract accounting, disputes and claims. A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Page 15
POLLITT HOLDINGS LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POLLITT HOLDINGS LIMITED (CONTINUED)
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. Nicole Sexton (Senior Statutory Auditor) for and on behalf of S&W Audit Chartered Accountants Statutory Auditor 45 Gresham Street London EC2V 7BG 26 March 2026 Page 16
POLLITT HOLDINGS LIMITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024
| 2024 | As restated 2023
Note | £000 | £000
Turnover | 4 | 123,549 | 64,807
Cost of sales |  | (115,819) | (58,335)
Gross profit |  | 7,730 | 6,472
Administrative expenses |  | (5,992) | (5,239)
Operating profit | 5 | 1,738 | 1,233
Interest receivable and similar income | 9 | 146 | 101
Interest payable and similar expenses | 10 | - | (3)
Profit before taxation |  | 1,884 | 1,331
Tax on profit |  | (326) | (196)
Profit for the financial year |  | 1,558 | 1,135
There was no other comprehensive income for 2024 (2023 - £Nil).
The notes on pages 27 to 49 form part of these financial statements.
Page 17
POLLITT HOLDINGS LIMITED REGISTERED NUMBER: 11439011 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
|  | 2024 |  | As restated 2023
Note |  | £000 |  | £000
Fixed assets |  |  |  |  |
Intangible assets | 12 |  | 4,743 |  | 5,364
Tangible assets | 13 |  | 309 |  | 335
|  |  | 5,052 |  | 5,699
Current assets |  |  |  |  |
Stocks |  | 1,833 |  | - |
Debtors: amounts falling due after more than one year |  | 3,557 |  | 2,269 |
Current assets |  | - |  | - |
Debtors: amounts falling due within one year |  | 33,632 |  | 15,276 |
Cash at bank and in hand | 17 | 15,635 |  | 15,084 |
|  | 54,657 |  | 32,629 |
Creditors: amounts falling due within one year | 18 | (42,436) |  | (22,727) |
Net current assets |  |  | 12,221 |  | 9,902
Total assets less current liabilities |  |  | 17,273 |  | 15,601
Creditors: amounts falling due after more than one year | 19 |  | (1,978) |  | (1,963)
Provisions for liabilities |  |  |  |  |
Deferred tax |  | (41) |  | (41) |
Other provisions | 21 | (99) |  | - |
|  |  | (140) |  | (41)
Net assets |  |  | 15,155 |  | 13,597
Page 18
POLLITT HOLDINGS LIMITED REGISTERED NUMBER: 11439011 CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED) AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £000 |  | £000
Capital and reserves |  |  |  |  |
Called up share capital | 22 |  | 250 |  | 250
Merger reserve | 23 |  | 2,533 |  | 2,533
Profit and loss account | 23 |  | 12,372 |  | 10,814
|  |  | 15,155 |  | 13,597
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
................................................ J T Pollitt
Director
Date: 26 March 2026
The notes on pages 27 to 49 form part of these financial statements. Page 19
POLLITT HOLDINGS LIMITED REGISTERED NUMBER: 11439011 COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £000 |  | £000
Fixed assets |  |  |  |  |
Investments | 14 |  | 10,204 |  | 10,204
|  |  | 10,204 |  | 10,204
Current assets |  |  |  |  |
Debtors | 16 | 6,863 |  | 1,839 |
Cash at bank and in hand | 17 | 1,456 |  | 41 |
|  | 8,319 |  | 1,880 |
Creditors: amounts falling due within one year | 18 | (10,366) |  | (3,255) |
Net current liabilities |  |  | (2,047) |  | (1,375)
Total assets less current liabilities |  |  | 8,157 |  | 8,829
Net assets |  |  | 8,157 |  | 8,829
Capital and reserves |  |  |  |  |
Called up share capital | 22 |  | 250 |  | 250
Merger reserve | 23 |  | 2,533 |  | 2,533
Profit and loss account carried forward |  |  | 5,374 |  | 6,046
|  |  | 8,157 |  | 8,829
Page 20
POLLITT HOLDINGS LIMITED REGISTERED NUMBER: 11439011 COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED) AS AT 31 DECEMBER 2024 The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own profit and loss account in these financial statements. The loss after tax of the Parent Company for the year was £671,844 (2023 – profit £14,890). The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
................................................ J T Pollitt
Director
Date: 26 March 2026
The notes on pages 27 to 49 form part of these financial statements. Page 21
POLLITT HOLDINGS LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
| Called up share capital | Merger reserve | Profit and loss account | Total equity
| £000 | £000 | £000 | £000
At 1 January 2023 | 250 | 2,533 | 9,679 | 12,462
Comprehensive income for the year |  |  |  |
Profit for the year | - | - | 1,135 | 1,135
At 1 January 2024 | 250 | 2,533 | 10,814 | 13,597
Comprehensive income for the year |  |  |  |
Profit for the year | - | - | 1,558 | 1,558
At 31 December 2024 | 250 | 2,533 | 12,372 | 15,155
| The notes on pages 27 to 49 form part of these financial statements.
Page 22
POLLITT HOLDINGS LIMITED COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
| Called up share capital | Merger reserve | Profit and loss account | Total equity
| £000 | £000 | £000 | £000
At 1 January 2023 | 250 | 2,533 | 6,031 | 8,814
Comprehensive income for the year |  |  |  |
Profit for the year | - | - | 15 | 15
At 1 January 2024 | 250 | 2,533 | 6,046 | 8,829
Comprehensive income for the year |  |  |  |
Loss for the year | - | - | (672) | (672)
At 31 December 2024 | 250 | 2,533 | 5,374 | 8,157
| The notes on pages 27 to 49 form part of these financial statements.
Page 23
POLLITT HOLDINGS LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
|  |  | 2024 | As restated 2023
|  |  | £000 | £000
Cash flows from operating activities |  |
Profit for the financial year | 1,558 | 1,135
Adjustments for: |  |
Amortisation of intangible assets | 622 | 632
Depreciation of tangible assets | 161 | 91
Loss on disposal of tangible assets | - | 40
Interest paid | - | 3
Interest received | (146) | (101)
Taxation charge | 326 | 196
(Increase)/decrease in stocks | (1,833) | -
(Increase) in debtors | (19,824) | (2,187)
Decrease/(increase) in amounts owed by groups | 180 | (180)
Increase in creditors | 19,651 | 3,777
(Decrease)/increase in amounts owed to groups | (197) | 197
Increase in provisions | 99 | -
Corporation tax (paid) | (57) | (206)
Net cash generated from operating activities | 540 | 3,397
Cash flows from investing activities |  |
Purchase of tangible fixed assets | (135) | (282)
Sale of tangible fixed assets | - | 5
Interest received | 146 | 101
Net cash from investing activities | 11 | (176)
Page 24
POLLITT HOLDINGS LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
|  | 2024 | 2023
|  | £000 | £000
Cash flows from financing activities |  |
Interest paid | - | (3)
Net cash used in financing activities | - | (3)
Net increase in cash and cash equivalents | 551 | 3,218
Cash and cash equivalents at beginning of year | 15,084 | 11,866
Cash and cash equivalents at the end of year | 15,635 | 15,084
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 15,635 | 15,084
| 15,635 | 15,084
The notes on pages 27 to 49 form part of these financial statements.
Page 25
POLLITT HOLDINGS LIMITED CONSOLIDATED ANALYSIS OF NET DEBT FOR THE YEAR ENDED 31 DECEMBER 2024
| At 1 January 2024 | Cash flows | At 31 December 2024
| £000 | £000 | £000
Cash at bank and in hand | 15,084 | 551 | 15,635
| 15,084 | 551 | 15,635
The notes on pages 27 to 49 form part of these financial statements.
Page 26
POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1. | General information
Pollitt Holdings Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 11439011 and the registered office address and trading address is 24 Martin Lane, London, United Kingdom, EC4R 0DR. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
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, the functional currency, rounded to the nearest £1,000. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3). The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The following principal accounting policies have been applied:
| 2.2 | Basis of consolidation
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 30 June 2021. Page 27
POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.3 | Revenue and revenue recognition
Revenue is measured at the fair value of the work certified on contracts including retentions, and excluding discounts, rebates, value added tax and other sales taxes. The amount of profit attributable to the stage of completion of a long term contract is recognised when the outcome of the contract can be foreseen with reasonable certainty. Turnover for such contracts is stated at a level appropriate to their stage of completion, less amounts recognised in previous years. A provision is made for any losses as soon as they are foreseen, and are included in provisions for liabilities and charges. Amounts recoverable on contracts are included in debtors and represent turnover recognised in the year which had not been invoiced prior to the period end.
| 2.4 | Going concern
The financial statements have been prepared on a going concern basis. In assessing the Group’s and Parent Company’s ability to continue as a going concern, the Directors have considered the forecast cash flows and the availability of financial resources for a period of at least twelve months from the date of approval of these financial statements. As part of this assessment, the Directors note that the Group and Parent Company are dependent on either (i) receiving £4 million from a key customer, or (ii) securing additional financing. The £4 million relates to post year-end trading and does not affect any amounts recognised within these financial statements. The funds are expected to be received following ongoing negotiations with the customer, and discussions to date have been positive. However, at the date of approving these financial statements, the funds have not yet been received. The Directors are also in discussions with potential third-party lenders regarding alternative financing to support short-term working capital requirements during the going concern assessment period. These discussions remain ongoing, however no formal financing arrangements were in place at the date of approval of these financial statements. These conditions indicate the existence of a material uncertainty that may cast significant doubt on the Group’s and Parent Company’s ability to continue as a going concern. Notwithstanding this material uncertainty, the Directors remain confident in the outcome of the negotiations and, on the basis of the forecasts and the expected receipt of funds, consider that the going concern basis of preparation remains appropriate. The financial statements do not include any adjustments that would be required if the Group and Parent Company were unable to continue as a going concern. Page 28
POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.5 | Operating lease commitments
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
| 2.6 | Interest income
Interest income is recognised in profit or loss using the effective interest method.
| 2.7 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.8 | Pensions
Defined contribution pension plan The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds. Page 29
POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.9 | Current and deferred taxation
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 and the Group operate and generate income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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; ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and ∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future. 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.
| 2.10 | Intangible assets
Goodwill Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life of 10-14 years. Page 30
POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.11 | Tangible fixed assets
Tangible fixed assets under the cost model 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. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Long-term leasehold property | - | 20% | on cost
|  |  |  | Fixtures and fittings | - | 25% | on cost
|  |  |  | Computer equipment | - | 25% | on cost
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 profit or loss.
| 2.12 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment.
| 2.13 | Stocks
Stock represents property purchased with the intention of resale. Stock is stated at the lower of cost and net realisable value. ∙Cost includes the purchase price of the property and any directly attributable expenditure incurred in bringing the asset to its present condition. ∙Net realisable value is the estimated selling price in the ordinary course of business, less applicable selling costs. Where necessary, provisions are made for impairment to ensure stock is not carried above its recoverable amount. Page 31
POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.14 | 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.
| 2.15 | Cash and cash equivalents
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. In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
| 2.16 | 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. Page 32
POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.17 | Financial instruments
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans to related parties. Debt instruments that are receivable or payable within one year, typically receivables or payables, are measured at the undiscounted amount of the cash and other consideration, expected to be received or paid. Debt instruments that are receivable or payable in more than one year, typically retentions on long term construction contracts, are discounted based on the deemed cost of the Group where material. Financial assets which are measured at cost and amortised cost are assessed at the end of each accounting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss. Cash and cash equivalents represents cash held and bank account balances. Interest income and interest expense arising from financial assets and financial liabilities measured using amortised cost is recognised in the profit or loss using the effective interest rate.
| 2.18 | Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Page 33
POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
In preparing these financial statements, the directors have made the following judgements: Accounting for long term construction contracts Long term contracts are assessed on a contract by contract basis and are reflected in the profit and loss by recording turnover and related costs as contract activity progresses. Where the outcome of each long term contract can be assessed with reasonable certainty before its conclusion, the attributable profit is recognised in the profit and loss as the difference between the reported turnover and related costs for the contract. Where losses are foreseen a provision for the loss is made immediately in the profit and loss. Impairment of goodwill Determining whether goodwill is impaired requires an estimation of the value in the use of cash-generating unit giving rise to the goodwill, including the estimating of the timing and amount of future cash generated by the cash-generating unit and suitable discount rate. The estimation of the value in use is also used to assess the carrying value of investments in the relevant subsidiaries in the Company's financial statements.
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £000 | £000
| Contracts | 123,549 | 64,807
|  | 123,549 | 64,807
| All turnover arose within the United Kingdom.
Page 34
POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
5. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £000 | £000
| Depreciation | 161 | 91
| Amortisation | 622 | 632
| Operating leases | 220 | 99
6. | Auditor's remuneration
|  |  |  |  | 2024 | 2023
|  |  |  |  | £000 | £000
| Fees payable to the Company's auditor and its associates for the audit of the consolidated and Parent Company's financial statements | 111 | 50
| Fees payable to the Company's auditor and its associates in respect of: |  |
| All non-audit services not included above | 41 | 21
Page 35
POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
7. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  | Group | Group
|  | 2024 | 2023
|  | £000 | £000
| Wages and salaries | 3,718 | 2,796
| Social security costs | 422 | 327
| Cost of defined contribution scheme | 195 | 141
|  | 4,335 | 3,264
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2024 | 2023
|  |  | No. | No.
|  | Administrative and managerial | 17 | 20
|  | Operational | 42 | 34
|  |  | 59 | 54
Page 36
POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
8. | Directors' remuneration
|  |  |  |  | 2024 | 2023
|  |  |  |  | £000 | £000
| Directors' emoluments | 745 | 446
| Group contributions to defined contribution pension schemes | 100 | 67
|  | 845 | 513
| During the year retirement benefits were accruing to 5 directors (2023 - 3) in respect of defined contribution pension schemes.
| The highest paid director received remuneration of £235,000 (2023 - £130,000).
| The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £16,500 (2023 - £9,100).
| Key management are those persons having authority and responsibility for planning, controlling and directing the activities of the Group. Their total compensation in the year was £785,311 (2023 - £425,900)
9. | Interest receivable
|  |  |  |  | 2024 | 2023
|  |  |  |  | £000 | £000
| Bank and other interest receivable | 146 | 101
|  | 146 | 101
10. | Interest payable and similar expenses
|  |  |  |  | 2024 | 2023
|  |  |  |  | £000 | £000
| Other loan interest payable | - | 3
|  | - | 3
Page 37
POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
11. | Taxation
|  |  |  |  | 2024 | 2023
|  |  |  |  | £000 | £000
| Corporation tax |  |
| Current tax on profits for the year | 426 | 113
| Adjustments in respect of previous periods | (100) | -
| Total current tax | 326 | 113
| Deferred tax |  |
| Origination and reversal of timing differences | - | 83
| Total deferred tax | - | 83
|  | 326 | 196
Page 38
POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 11.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £000 | £000
| Profit on ordinary activities before tax | 1,884 | 1,573
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%) | 471 | 370
| Effects of: |  |
| Expenses not deductible for tax purposes | 106 | 29
| Adjustments to tax charge in respect of prior periods | (100) | -
| Goodwill amortisation | - | 149
| Adjustment in research and development tax credit leading to an increase/(decrease) in the tax charge | (202) | (213)
| Other differences leading to an increase (decrease) in the tax charge | 51 | (139)
| Total tax charge for the year | 326 | 196
| Factors that may affect future tax charges
There were no factors that may affect future tax charges. Page 39
POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
12. | Intangible assets
| Group and Company
|  | Goodwill
|  | £000
| Cost |
| At 1 January 2024 | 8,726
| At 31 December 2024 | 8,726
| Amortisation |
| At 1 January 2024 | 3,361
| Charge for the year | 622
| At 31 December 2024 | 3,983
| Net book value |
| At 31 December 2024 | 4,743
| At 31 December 2023 | 5,365
Page 40
POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
13. | Tangible fixed assets
| Group
|  | Long-term leasehold property | Fixtures and fittings | Computer equipment | Total
|  | £000 | £000 | £000 | £000
| Cost or valuation |  |  |  |
| At 1 January 2024 | 120 | 93 | 449 | 662
| Additions | 4 | 24 | 107 | 135
| At 31 December 2024 | 124 | 117 | 556 | 797
| Depreciation |  |  |  |
| At 1 January 2024 | 21 | 11 | 295 | 327
| Charge for the year | 24 | 48 | 89 | 161
| At 31 December 2024 | 45 | 59 | 384 | 488
| Net book value |  |  |  |
| At 31 December 2024 | 79 | 58 | 172 | 309
| At 31 December 2023 | 99 | 82 | 154 | 335
Page 41
POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
14. | Fixed asset investments
| Company
|  | Investments in subsidiary companies
|  | £000
| Cost or valuation |
| At 1 January 2024 | 10,204
| At 31 December 2024 | 10,204
Page 42
POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
| Subsidiary undertakings
| The following were subsidiary undertakings of the Company:
| Name | Registered office | Class of shares | Holding
| Borough Engineering Services Limited | 91-95 Southwark Bridge Road, London, England, SE1 0AX | Ordinary | 100%
| Throgmorton Mechanical & Electrical Services Limited | 91-95 Southwark Bridge Road, London, England, SE1 0AX | Ordinary | 100%
| Pollitt Developments Holdings Limited | 91-95 Southwark Bridge Road, London, England, SE1 0AX | Ordinary | 100%
| Pollitt Developments (Sandbach) Limited | 91-95 Southwark Bridge Road, London, England, SE1 0AX | Ordinary | 100%
| Omni Air Limited | 91-95 Southwark Bridge Road, London, England, SE1 0AX | Ordinary | 100%
| Omni Air Limited was incorporated on 14 May 2024. The subsidiaries Omni Air Limited (CRN: 15720544), Pollitt Developments Holdings Limited (CRN: 14305762), and Pollitt Developments (Sandbach) Limited (CRN: 14306986) have taken exemption from an audit for the year ended 31 December 2024 by virtue of s479A of the Companies Act 2006. In order to allow the subsidiaries to take the audit exemption, the Parent Company, Pollitt Holdings Limited, has given statutory guarantee, in line with s479C of the Companies Act 2006, of all the outstanding liabilities as at 31 December 2024.
15. | Stocks
|  |  |  |  | 2024 | 2023
|  |  |  |  | £000 | £000
| Property held for sale | 1,833 | -
| Stock includes a property held for sale, which is measured at the lower of cost and estimated selling price less costs to sell.
Page 43
POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
16. | Debtors
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £000 | £000 | £000 | £000
| Due after more than one year |  |  |  |
| Trade debtors | 3,557 | 2,269 | - | -
|  | 3,557 | 2,269 | - | -
| Due within one year |  |  |  |
| Trade debtors | 15,007 | 7,511 | - | -
| Amounts owed by group undertakings | - | 180 | 2,007 | 752
| Other debtors | 1,411 | 746 | 959 | 280
| Amounts owed by directors | 3,623 | 807 | 3,623 | 807
| Prepayments | 455 | 1,970 | - | -
| Amounts recoverable on long-term contracts | 12,577 | 4,062 | - | -
| Tax recoverable | 559 | - | 274 | -
|  | 37,189 | 17,545 | 6,863 | 1,839
17. | Cash and cash equivalents
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £000 | £000 | £000 | £000
| Cash at bank and in hand | 15,635 | 15,084 | 1,456 | 41
|  | 15,635 | 15,084 | 1,456 | 41
Page 44
POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
18. | Creditors: Amounts falling due within one year
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £000 | £000 | £000 | £000
| Trade creditors | 20,349 | 9,337 | - | -
| Amounts owed to group undertakings | - | 197 | 9,153 | 2,983
| Corporation tax | 1,438 | 219 | 948 | -
| Other taxation and social security | 77 | 350 | - | -
| Other creditors | 382 | 411 | 265 | 272
| Accruals and deferred income | 20,190 | 12,213 | - | -
|  | 42,436 | 22,727 | 10,366 | 3,255
19. | Creditors: Amounts falling due after more than one year
|  | Group | Group
|  | 2024 | 2023
|  | £000 | £000
| Other creditors | 1,978 | 1,963
|  | 1,978 | 1,963
Other creditors due after more than one year consist solely of long-term retentions. Secured debts There is a charge registered against the Group in favour of Emico Holdings Limited over all the assets, property and undertaking for the time being. This relates to the Share Purchase Agreement between Pollitt Holdings Limited and Emico Holdings Limited. There is an overdraft facility secured by a debenture to HSBC Bank Plc including a fixed charge over all book and other debts, chattels, goodwill and uncalled capital, both present and future, and first floating charge over all assets and undertaking both present and future. The overdraft facility was not used during the periods ended 31 December 2023 and 31 December 2024. Page 45
POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
20. | Deferred taxation
| Group
|  | 2024
|  | £000
| At beginning of year | (41)
| At end of year | (41)
|  | Group | Group
|  | 2024 | 2023
|  | £000 | £000
| Accelerated capital allowances | (41) | (41)
|  | (41) | (41)
21. | Provisions
| Group
|  | Group 2024
|  | £000
| Charged to profit or loss | 99
| At 31 December 2024 | 99
| The Group has recognised a provision for Throgmorton Mechanical & Electrical Services Limited (TMESL) for onerous contracts where the unavoidable costs of meeting contractual obligations exceed the economic benefits expected to be received. The provision represents the present value of expected net outflows and is reviewed at each reporting date.
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POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
22. | Share capital
|  |  |  |  | 2024 | 2023
|  |  |  |  | £000 | £000
|  | Allotted, called up and fully paid |  |
|  | 25,001,000 (2023 - 25,001,000) Ordinary shares of £0.01 each | 250 | 250
23. | Reserves
Merger Reserve Merger reserve of £2,533,000 (2023 - £2,533,000) is the share premium not recognised on the share for share transactions when acquiring a subsidiary in 2019. Profit and loss account This reserve relates to the cumulative retained earnings less amounts distributed to shareholders.
24. | Commitments under operating leases
| At 31 December 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  | Group | Group
|  | 2024 | 2023
|  | £000 | £000
| Not later than 1 year | 274 | 284
| Later than 1 year and not later than 5 years | 724 | 1,468
|  | 998 | 1,752
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POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
25. | Prior year adjustment
During the year, an error was identified in the prior year relating to the posting of deferred income of Borough Engineering Services Limited and Throgmorton Mechanical & Electrical Services Limited. The error resulted in revenue and cost of sales being overstated by the same amount. This correction has no impact on gross profit, operating profit, or net assets. An error was also identified in relation to the completeness of accruals of Throgmorton Mechanical & Electrical Services Limited which resulted in cost of sales and accruals being understated by the same amount. This correction results in a £242k reduction in gross profit, operating profit and net assets. As a result, the comparative figures for the year ended 31 December 2023 have been restated as follows:
|  | As previously stated | Adjustment | As restated
|  | £000 | £000 | £000
| Turnover | 70,112 | (5,305) | 64,807
| Cost of sales | (63,399) | 5,064 | (58,335)
| Profit and loss account | 11,056 | (242) | 10,814
| Accruals and deferred income | 11,971 | 242 | 12,213
26. | Related party transactions
| The Company has taken advantage of the exemption in FRS 102 Section 33.1A to not disclose transactions with wholly owned Group entities. At the year end, the Company had a loan balance receivable from a Director amounting to £3,623k (2023 - £807k). The loan is unsecured, interest-free, and repayable on demand. No guarantees have been given or received in respect of this balance.
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POLLITT HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
27. | Post balance sheet events
Subsequent to the year end, all active projects of Throgmorton Mechanical & Electrical Services Limited were novated to Borough Engineering Services Limited. Only projects that were already nearing completion have remained within Throgmorton Mechanical & Electrical Services Limited. As a result of this transfer of operations, Throgmorton Mechanical & Electrical Services Limited is significantly winding down its operational activities. Discussions regarding the future operations and strategic direction of the entity remain ongoing. As these events occurred after the reporting date and relate to conditions that arose subsequent to year end, they are classified as non-adjusting post balance sheet events. Accordingly, no adjustments have been made to the amounts recognised in these financial statements.
28. | Controlling party
The ultimate controlling party is J T Pollitt. Mr J T Pollitt owns 100% of the share capital.
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