REGISTERED NUMBER: 08185229 (England and Wales)

MENAI HEATING LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

14

DIRECTORS:

K L D Maher

Mrs S A Maher

REGISTERED OFFICE:

Sanremo

13 Trinity Square

Llandudno

CONWY

LL30 2RB

REGISTERED NUMBER:

08185229 (England and Wales)

AUDITORS:

Williams Denton Cyf

Chartered Certified Accountants

Statutory Auditors

Glaslyn

Ffordd y Parc

Parc Menai

Bangor

Gwynedd

LL57 4FE

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

REVIEW OF BUSINESS

The financial statements for the year ended 31 August 2025, show the following:

- Profit after taxation for the financial year of £1,177,624

- A dividend cover of 5 times

- Bank balances totalling £3,543,730

- Net current assets of £8,112,392

The management accounts for the 7 months ended 31 March 2026, show the following:

- Profit before taxation for the period of £789,287

- Bank Balances totalling £4,541,097

- Net current assets of £8,231,564

The profit and loss account forecast for the year ending 31 August 2026 shows a projected profit before taxation in the region of £400,000.

PRINCIPAL RISKS AND UNCERTAINTIES

Menai Heating Limited's primary source of income has been through the Energy Company Obligation (ECO) scheme in recent years. The Energy Company Obligation (ECO 4) scheme ended 31 March 2026 with no direct like for like replacement ready.

Funding is likely to be redirected toward a Warm Homes Plan, but details, delivery model and timeliness remain unclear or delayed.

In the 12 months prior to 31 March 2026, and because of disruptions suffered in the Energy Company Obligation scheme, the directors had been refocusing on generating turnover from the private market, registered social landlords and commercial buildings Solar PV (Photovoltaics) installations.

This has resulted in:

- Numerous Solar PV (Photovoltaics) installations for registered social landlords between November and March 2026

- Private customer installations have increased by 88% in 7 months to 31 March 2026

- The first commercial solar installation contract was completed in April 2026.

- Menai Heating Limited has many skilled and highly trained staff, who are capable of being outsourced

- The servicing department has been extended to include the servicing and maintenance of Air Source Heat Pumps.

ON BEHALF OF THE BOARD:

Mrs S A Maher - Director

18 May 2026

The directors present their report with the financial statements of the company for the year ended 31 August 2025.

DIVIDENDS

Interim dividends per share were paid as follows:

£35,500

- 1 December 2024

£100,000

- 6 April 2025

£100,000

- 1 June 2025

£235,500

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 August 2025 will be £ 235,500 .

DIRECTORS

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

K L D Maher

Mrs S A Maher

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

Mrs S A Maher - Director

18 May 2026

Opinion

We have audited the financial statements of Menai Heating Limited (the 'company') for the year ended 31 August 2025 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 August 2025 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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

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

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company 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 focussed 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 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Martin Barrett (Senior Statutory Auditor)

for and on behalf of Williams Denton Cyf

Chartered Certified Accountants

Statutory Auditors

Glaslyn

Ffordd y Parc

Parc Menai

Bangor

Gwynedd

LL57 4FE

18 May 2026

TURNOVER

14,167,328

19,521,705

Cost of sales

9,717,409

10,274,194

GROSS PROFIT

4,449,919

9,247,511

Administrative expenses

2,772,185

2,033,036

1,677,734

7,214,475

Other operating income

-

10,610

OPERATING PROFIT

5

1,677,734

7,225,085

Interest receivable and similar income

79,223

73,036

1,756,957

7,298,121

Interest payable and similar expenses

6

175,913

392,928

PROFIT BEFORE TAXATION

1,581,044

6,905,193

Tax on profit

7

403,420

1,763,413

PROFIT FOR THE FINANCIAL YEAR

1,177,624

5,141,780

PROFIT FOR THE YEAR

1,177,624

5,141,780

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,177,624

5,141,780

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

438,802

339,186

438,802

339,186

CURRENT ASSETS

Stocks

11

83,126

216,908

Debtors

12

5,560,206

3,562,830

Cash at bank and in hand

3,543,730

5,235,295

9,187,062

9,015,033

CREDITORS

Amounts falling due within one year

13

1,074,670

1,655,053

NET CURRENT ASSETS

8,112,392

7,359,980

TOTAL ASSETS LESS CURRENT LIABILITIES

8,551,194

7,699,166

PROVISIONS FOR LIABILITIES

15

109,701

199,797

NET ASSETS

8,441,493

7,499,369

CAPITAL AND RESERVES

Called up share capital

16

2

2

Retained earnings

17

8,441,491

7,499,367

SHAREHOLDERS' FUNDS

8,441,493

7,499,369

The financial statements were approved by the Board of Directors and authorised for issue on 18 May 2026 and were signed on its behalf by:

K L D Maher - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 September 2023

2

2,797,587

2,797,589

Changes in equity

Dividends

-

(440,000

)

(440,000

)

Total comprehensive income

-

5,141,780

5,141,780

Balance at 31 August 2024

2

7,499,367

7,499,369

Changes in equity

Dividends

-

(235,500

)

(235,500

)

Total comprehensive income

-

1,177,624

1,177,624

Balance at 31 August 2025

2

8,441,491

8,441,493

Cash flows from operating activities

Cash generated from operations

1

1,135,870

4,832,219

Interest paid

(175,913

)

(392,928

)

Tax paid

(1,436,330

)

(934,246

)

Net cash from operating activities

(476,373

)

3,505,045

Cash flows from investing activities

Purchase of tangible fixed assets

(263,472

)

(535,297

)

Sale of tangible fixed assets

-

838,520

Interest received

79,223

73,036

Net cash from investing activities

(184,249

)

376,259

Cash flows from financing activities

Amount introduced by directors

-

1,695

Amount withdrawn by directors

(795,443

)

-

Equity dividends paid

(235,500

)

(440,000

)

Net cash from financing activities

(1,030,943

)

(438,305

)

(Decrease)/increase in cash and cash equivalents

(1,691,565

)

3,442,999

Cash and cash equivalents at beginning of year

2

5,235,295

1,792,296

Cash and cash equivalents at end of year

2

3,543,730

5,235,295

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

1,581,044

6,905,193

Depreciation charges

163,856

111,353

Loss on disposal of fixed assets

-

133,862

(Decrease)/increase in other provisions

(115,000

)

115,000

Finance costs

175,913

392,928

Finance income

(79,223

)

(73,036

)

1,726,590

7,585,300

Decrease in stocks

133,782

379,927

Increase in trade and other debtors

(1,204,509

)

(3,047,671

)

Increase/(decrease) in trade and other creditors

480,007

(85,337

)

Cash generated from operations

1,135,870

4,832,219

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 August 2025

31.8.25

1.9.24

£

£

Cash and cash equivalents

3,543,730

5,235,295

Year ended 31 August 2024

31.8.24

1.9.23

£

£

Cash and cash equivalents

5,235,295

1,792,296

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.24

Cash flow

At 31.8.25

£

£

£

Net cash

Cash at bank and in hand

5,235,295

(1,691,565

)

3,543,730

5,235,295

(1,691,565

)

3,543,730

Total

5,235,295

(1,691,565

)

3,543,730

1.	STATUTORY INFORMATION

Menai Heating Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

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

Plant and machinery

-

20% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

20% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

Pension contributions paid on behalf of directors and employees are charged against profits in the accounting period in which they are paid.

Trade and other debtors

Trade and other debtors are initially recognised at their transaction price, less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of 3 months or less.

Trade and other creditors

Trade and other creditors are initially recognised at their transaction price.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,791,851

1,160,958

Social security costs

164,535

115,536

Other pension costs

51,737

140,035

2,008,123

1,416,529

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

2025

2024

Employees and directors

40

32

4.	DIRECTORS' EMOLUMENTS

2025

2024

£

£

Directors' remuneration

63,395

18,192

Directors' pension contributions to money purchase schemes

20,604

120,157

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

5.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Hire of plant and machinery

13,743

7,161

Other operating leases

3,014

6,974

Depreciation - owned assets

163,856

111,352

Loss on disposal of fixed assets

-

133,862

Auditors' remuneration

10,450

8,000

Operating lease costs

86,330

68,045

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Other interest paid

20,054

14

Factoring charges

155,859

392,914

175,913

392,928

7.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

378,516

1,736,330

Deferred tax

24,904

27,083

Tax on profit

403,420

1,763,413

UK corporation tax has been charged at 25% (2024 - 25%).

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

1,581,044

6,905,193

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

395,261

1,726,298

Effects of:

Expenses not deductible for tax purposes

8,159

3,648

Capital allowances in excess of depreciation

(24,904

)

(27,082

)

Loss on disposal of assets

-

33,466

Deferred tax

24,904

27,083

Total tax charge

403,420

1,763,413

8.

DIVIDENDS

2025

2024

£

£

Ordinary shares of £1 each

Interim

235,500

440,000

9.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 September 2024

and 31 August 2025

86,934

AMORTISATION

At 1 September 2024

and 31 August 2025

86,934

NET BOOK VALUE

At 31 August 2025

-

At 31 August 2024

-