REGISTERED NUMBER: 12353157 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

FOR

TNC GROUP HOLDINGS LIMITED

TRADING AS

KSD GROUP

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Statement of Income and Retained Earnings

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTORS:

L M Baker

P F J McDonnell

M A Ratcliffe

REGISTERED OFFICE:

Patcham Place

Patcham

Brighton

East Sussex

BN1 8YD

REGISTERED NUMBER:

12353157 (England and Wales)

SENIOR STATUTORY AUDITOR:

Simon Lawrence FCCA

AUDITORS:

Ashdown Hurrey Auditors Limited

Statutory Auditor

20 Havelock Road

Hastings

East Sussex

TN34 1BP

SOLICITORS:

Engleharts Solicitors

Vallance Hall

Hove Street

Hove

East Sussex

The directors present their strategic report of the company and the group for the year ended 31 May 2025.

The directors present hereby the strategic report of the company and the group for the year ended the 31 May 2025. TNC Group Holdings Ltd (TNC) are again pleased to report consistent performance attributed in the main to the group's trading entity, KSD Support Services Ltd (KSDSS). KSDSS provides building maintenance, building fabric and support services. The customer base includes blue-chip customers and other entities in food retail, commercial property, education and more recently transport sectors.

REVIEW OF BUSINESS

The group continued work on its own development sites and maintaining the group's property portfolio.

At the end of the period net assets totalled £31,832,591 (2024: £30,589,430). Key financial metrics and other performance indicators during the period were as follows:

31.5.25

31.5.24

EBITDAE

£5,467,188

£5,270,157

EBITDAE as % of turnover

16.5%

18.4%

KSDSS continues to maintain its ISO 14001, ISO 9001 and ISO 45001 accreditations helping the business galvanise and flourish given trying market conditions.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risk to the business is losing a contract due to unforeseen circumstances. The directors believe losing any client due to unforeseen circumstances would not have a detrimental impact as they have the ability to manoeuvre and re-purpose their substantial resources seamlessly, purposefully and efficiently.

The wide-ranging customer base helps de-risk over exposure to any one sector and for the majority of its contracts, the company is protected by resources being transferred under TUPE protocols, amongst other related directives.

Cash management remains central to our ability to meet contractual payment obligations as and when they fall due. We continually monitor cash flow models and work to ensure adequate sources of funding are always diligently explored.

FUTURE DEVELOPMENTS

There is a cautious presumption in favour of KSDSS increasing market share in the facilities management industry due to extremely dedicated, targeted marketing strategies borne from over two highly successful decades involved in this particular support-services market sector.

Revenue streams are projected to rise again in 25/26 following the successful onboarding of a major new client. We also anticipate increased metrics across all baselines including EBITDAE with several key planning applications for land scheme opportunities which continue to evolve within the group.

The Group is looking after over twenty thousand units covering pubs and retail stores and sales continue to rise in a positive manner. There are some increased overhead costs in producing this trajectory but with rising revenue the impact on gross profit is expected to minimal. The company is looking to augment and improve on this year's performance into 2026 and beyond.

ON BEHALF OF THE BOARD:

P F J McDonnell - Director

29 May 2026

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

DIVIDENDS

The total distribution of dividends for the year ended 31 May 2025 was £79,998.

DIRECTORS

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

L M Baker

P F J McDonnell

M A Ratcliffe

FINANCIAL INSTRUMENTS

The Group's principal financial instruments comprise bank balances, trade creditors, trade debtors, operating lease agreements, bank loans and directors' loans. The main purpose of these instruments is to finance the Group's operations.

Due to the nature of the financial instruments used by the Group there is no exposure to price risk. The Group's approach to managing other risks applicable to the financial instruments concerned is shown below.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest.

The CBILS loan from the bank does not have interest charged nor repayments made in the first year. The directors are aware of the Group's finance requirements and have determined that the liquidity risk inherent in this formal bank loans is acceptable with the initial repayment holiday.

The loans from the directors do not have interest charged but are repayable on demand. The directors are aware of the Group's required finance and have determined that these will only be repaid, in whole or in part, when finance is available.

The credit risk arising from loans made to directors is considered to be acceptable, given the substantial asset portfolio supporting them.

The Group's operating lease commitments are in respect of the property from which the company operates as well as motor vehicles. The liquidity risk in respect of these is managed in the same way as loans above.

The Group's trade debtors are factored thorough a financial services company although the Group retains all significant benefits and risks in respect of these. These are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

POLITICAL DONATIONS AND EXPENDITURE

Donations and sponsorship of £20,503 (2024: £4,190) have been paid to local charities.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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), 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 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

AUDITORS

The auditors, Ashdown Hurrey Auditors Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P F J McDonnell - Director

29 May 2026

Opinion

We have audited the financial statements of TNC Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2025 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 May 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on pages three and four, 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 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.

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:

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. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud was as follows:

- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the company operates;

- We focused on specific laws and regulations which we considered may have a direct impact material effect on the financial statements;

- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- Identified laws and regulations were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to involve the completeness and timing of income recognition and the override of controls by management.

To address the risk of fraud in relation to revenue recognition, we:

- Performed detailed substantive testing to address completeness and accuracy of sales;

- Assessed the appropriateness and application of the accounting policy concerning income recognition; and

- Performed detailed cut-off testing either side of the balance sheet date.

To address the risk of fraud through management bias and override of controls, we:

- Performed analytical procedures to identify any unusual or unexpected relationships;

- Tested journal entries to identify unusual transactions;

- Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

- Investigated the rationale behind significant or unusual transactions.

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

A further description of our responsibilities 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.

Simon Lawrence FCCA (Senior Statutory Auditor)

for and on behalf of Ashdown Hurrey Auditors Limited

Statutory Auditor

20 Havelock Road

Hastings

East Sussex

TN34 1BP

29 May 2026

TURNOVER

3

33,083,300

28,621,399

Cost of sales

(23,218,849

)

(18,655,159

)

GROSS PROFIT

9,864,451

9,966,240

Administrative expenses

(8,112,865

)

(6,906,998

)

1,751,586

3,059,242

Other operating income

4

2,054,974

713,205

Gain/loss on revaluation of investment property

-

700,000

OPERATING PROFIT

6

3,806,560

4,472,447

Amounts provided against loans

7

-

(1,188,260

)

3,806,560

3,284,187

Interest receivable and similar income

146,105

343,351

3,952,665

3,627,538

Interest payable and similar expenses

8

(2,062,566

)

(1,107,096

)

PROFIT BEFORE TAXATION

1,890,099

2,520,442

Tax on profit

9

(566,940

)

(834,363

)

PROFIT FOR THE FINANCIAL YEAR

1,323,159

1,686,079

Retained earnings at beginning of year as previously reported

10,036,659

7,753,951

Dividends

11

(79,998

)

-

Prior year adjustment - corrections of material errors

12

(1,296,629

)

-

RETAINED EARNINGS FOR THE GROUP AT END OF YEAR

9,983,191

9,440,030

Profit attributable to:

Owners of the parent

1,323,159

1,686,079

FIXED ASSETS

Intangible assets

13

2,588,381

3,127,107

Tangible assets

14

4,655,807

4,382,629

Investments

15

Interest in joint venture

Share of gross assets

448,096

-

Investment property

16

26,195,695

25,560,393

33,887,979

33,070,129

CURRENT ASSETS

Stocks

17

3,865,621

3,827,046

Debtors

18

16,524,714

15,732,836

Cash at bank

1,174,164

599,755

21,564,499

20,159,637

CREDITORS

Amounts falling due within one year

19

14,738,384

13,458,252

NET CURRENT ASSETS

6,826,115

6,701,385

TOTAL ASSETS LESS CURRENT LIABILITIES

40,714,094

39,771,514

CREDITORS

Amounts falling due after more than one year

20

(7,876,656

)

(8,196,945

)

PROVISIONS FOR LIABILITIES

24

(1,004,847

)

(985,139

)

NET ASSETS

31,832,591

30,589,430

CAPITAL AND RESERVES

Called up share capital

25

17,369,400

17,369,400

Fair value reserve

26

4,480,000

4,480,000

Retained earnings

26

9,983,191

8,740,030

SHAREHOLDERS' FUNDS

31,832,591

30,589,430

The financial statements were approved by the Board of Directors and authorised for issue on 29 May 2026 and were signed on its behalf by:

P F J McDonnell - Director

FIXED ASSETS

Intangible assets

13

-

-

Tangible assets

14

-

-

Investments

15

9,085,917

9,085,917

Investment property

16

10,842,184

10,556,366

19,928,101

19,642,283

CURRENT ASSETS

Stocks

17

3,471,341

3,405,023

Debtors

18

2,713,087

2,650,105

Cash at bank

28,640

13,317

6,213,068

6,068,445

CREDITORS

Amounts falling due within one year

19

6,241,555

4,748,824

NET CURRENT (LIABILITIES)/ASSETS

(28,487

)

1,319,621

TOTAL ASSETS LESS CURRENT LIABILITIES

19,899,614

20,961,904

CREDITORS

Amounts falling due after more than one year

20

(2,355,697

)

(3,230,920

)

PROVISIONS FOR LIABILITIES

24

(57,500

)

(57,500

)

NET ASSETS

17,486,417

17,673,484

CAPITAL AND RESERVES

Called up share capital

25

17,369,400

17,369,400

Fair value reserve

26

230,000

230,000

Retained earnings

26

(112,983

)

74,084

SHAREHOLDERS' FUNDS

17,486,417

17,673,484

Company's (loss)/profit for the financial year

(107,069

)

252,956

The financial statements were approved by the Board of Directors and authorised for issue on 29 May 2026 and were signed on its behalf by:

P F J McDonnell - Director

Cash flows from operating activities

Cash generated from operations

1

5,214,188

3,373,104

Interest paid

(1,830,502

)

(795,047

)

Interest element of hire purchase payments paid

(211,060

)

(196,319

)

Tax paid

(394,160

)

(538,160

)

Net cash from operating activities

2,778,466

1,843,578

Cash flows from investing activities

Purchase of tangible fixed assets

(7,540

)

(9,844

)

Purchase of fixed asset investments

(378,533

)

-

Purchase of investment property

(54,720

)

(159,202

)

Sale of tangible fixed assets

-

(1

)

Interest received

26,105

29

Movement on loans to related entities

(1,153,640

)

(643,185

)

Net cash from investing activities

(1,568,328

)

(812,203

)

Cash flows from financing activities

New loans in year

1,878,000

2,519,755

Loan repayments in year

(1,293,598

)

(2,262,043

)

Capital repayments in year

(995,675

)

(1,043,069

)

Amount introduced by directors

-

45,150

Amount withdrawn by directors

(793,972

)

(547,973

)

Financing of debtors

649,514

1,162,863

Equity dividends paid

(79,998

)

-

Net cash from financing activities

(635,729

)

(125,317

)

Increase in cash and cash equivalents

574,409

906,058

Cash and cash equivalents at beginning of year

2

599,755

(306,303

)

Cash and cash equivalents at end of year

2

1,174,164

599,755

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

31.5.25

31.5.24

as restated

£

£

Profit before taxation

1,890,099

2,520,442

Depreciation charges

1,534,575

1,414,622

Profit on disposal of fixed assets

(13,819

)

-

Gain on revaluation of fixed assets

-

(700,000

)

Impairments

-

1,188,261

Bad debt movement

3,269

7,097

Finance costs

2,062,566

1,107,096

Finance income

(146,105

)

(343,351

)

5,330,585

5,194,167

Increase in stocks

(38,574

)

(101,473

)

Increase in trade and other debtors

(217,437

)

(1,258,854

)

Increase/(decrease) in trade and other creditors

139,614

(460,736

)

Cash generated from operations

5,214,188

3,373,104

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 May 2025

31.5.25

1.6.24

£

£

Cash and cash equivalents

1,174,164

599,755

Year ended 31 May 2024

31.5.24

1.6.23

as restated

£

£

Cash and cash equivalents

599,755

15,271

Bank overdrafts

-

(321,574

)

599,755

(306,303

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.6.24

Cash flow

At 31.5.25

£

£

£

Net cash

Cash at bank

599,755

574,409

1,174,164

599,755

574,409

1,174,164

Debt

Finance leases

(2,443,997

)

(326,926

)

(2,770,923

)

Debts falling due within 1 year

(5,442,281

)

(612,605

)

(6,054,886

)

Debts falling due after 1 year

(6,596,111

)

520,173

(6,075,938

)

(14,482,389

)

(419,358

)

(14,901,747

)

Total

(13,882,634

)

155,051

(13,727,583

)

1.	STATUTORY INFORMATION

TNC Group Holdings 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 General 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.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1.

Going concern

In preparing the financial statements, the directors are required to make an assessment of the ability of the Group to continue as a going concern.

On the basis of forecasts and the fact that the Group has substantial net current assets and net assets, the directors are confident that the Group has adequate resources to continue in operational existence and to meet its liabilities as they fall due for the foreseeable future. In reaching this conclusion they are satisfied that no material uncertainty exists. As a result of the above, the directors have concluded that it remains appropriate to adopt a going concern basis of preparation in these financial statements and that no material uncertainty exists in reaching this conclusion.

Basis of consolidation

The Group financial statements consolidate the financial statements of the Company and its subsidiary undertakings drawn up to 31 May each year. The results of subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed.

Business combinations are accounted for under the merger method as these meet the requirements of FRS102 s19.27. Where necessary,adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the Group. All intra-group transactions, balances, income and expenses are eliminated on consolidation.

Significant judgements and estimates

In the application of the accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources.

The key judgements that management have made in applying the accounting policies relate to the valuation of investment property and recoverability of debtors, both trade and other.

The investment property has been valued based upon historical property prices as well as actual and anticipated rental yields. These take into accounts known future rental receipts from let areas and use these to anticipate future potential rental income for the currently void areas. Development land is valued based upon the future potential income following development, this calculation uses industry expected standards for development.

The estimates and underlying assumptions for debtors 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Turnover

Turnover is recognised when the work has been performed. Turnover represents amounts invoiced, net of value added tax, and adjusted for the value of work performed to date on contracts at the period end.

When the outcome of a construction contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to the work completed to that date.

Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable.

When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision.

Goodwill

Goodwill, being the amounts paid in connection with the acquisitions of businesses in 2020, 2022 and 2023, was previously being amortised evenly over the estimated useful life of twenty years.The useful economic life was re-assessed in 2025 and the useful economic life has been reduced to ten years.

Intangible assets

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

Computer software is being amortised evenly over its estimated useful life of four years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance and 25% on cost

Motor vehicles

-

33% on reducing balance and at varying rates on cost

Computer equipment

-

25% on reducing balance and 25% on cost

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

Stocks have been valued at the lower of cost and estimated selling price less costs to sell.

Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Work in progress comprises costs incurred for each project and is valued at cost to the company less any anticipated losses.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

31.5.25

31.5.24

as restated

£

£

Facilities management

33,083,300

28,621,399

33,083,300

28,621,399

An analysis of turnover by geographical market is given below:

31.5.25

31.5.24

as restated

£

£

United Kingdom

33,083,300

28,621,399

33,083,300

28,621,399