REGISTERED NUMBER: 05536599 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

FOR

ARC GROUP LONDON LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

8

Income Statement

12

Other Comprehensive Income

13

Balance Sheet

14

Statement of Changes in Equity

15

Cash Flow Statement

16

Notes to the Cash Flow Statement

17

Notes to the Financial Statements

18

DIRECTORS:

Mr C J Langbridge

Mrs R L Mason

Mr A C Mason

REGISTERED OFFICE:

Nalken House

Unit 4a Noble Road

Upper Edmonton

London

N18 3BH

REGISTERED NUMBER:

05536599 (England and Wales)

SENIOR STATUTORY AUDITOR:

Thurairatnam Sudarshan FCCA

AUDITORS:

Xeinadin Audit Limited

Statutory Auditor

8th Floor, Becket House

36 Old Jewry

London

EC2R 8DD

REVIEW OF BUSINESS

The directors are pleased to report another strong year of trading for the company for the year ended 31 August 2025, with continued growth in turnover, profitability and shareholders' funds despite ongoing economic and sector-wide challenges.

During the year, each of the key trading divisions made a positive contribution to the growth and success of the business. Our property services division continued to work in collaboration with local authorities and housing associations to deliver solutions aligned with our clients' long-term goals.

With recent investment in new plant and machinery, resulting in a strengthened in-house capability, our mechanical and electrical division continued to make a positive contribution to the company's growth catering to the fast-growing demand for its site temporary services.

Our Waterproofing division continued to work closely with its core clients providing comprehensive roofing and waterproofing services. The division continued to make a positive contribution to the business with its effective project management and cost control. The division delivered complex projects within budget and increased margins, helping to offset the impact of rising material and labour costs.

Turnover for the year increased to £42.1 million from £38.1 million in the prior year, representing a growth of 10.5%. The increase reflects continued demand for the company's services helped by the successful delivery of a number of significant projects during the year.

Gross profit increased to £4.74 million compared with £4.03 million in the previous year. Gross profit margin improved from 10.6% in 2024 to 11.3% in 2025, reflecting improved operational efficiency, effective contract management and stronger project performance across a number of contracts. The directors consider the improvement in margin performance to be particularly encouraging given the ongoing inflationary pressures affecting labour, subcontractor and material costs within the industry.

Operating profit increased to £1.38 million from £1.23 million in the prior year, while profit before taxation increased to £1.32 million (2024: £1.17 million). Pre-tax profit margin improved from 3.01% in 2024 to 3.13% in 2025, demonstrating the resilience of the business and the company's disciplined approach to overhead management and operational control despite continued cost inflation and market uncertainty.

Administrative expenses increased modestly during the year to £3.62 million (2024: £3.46 million), reflecting ongoing investment in infrastructure, compliance, systems and operational support functions required to sustain the company's growth and project delivery capabilities. The directors continued to maintain careful control over overhead expenditure while ensuring the business remained appropriately resourced to support future activity levels.

The company continued to maintain a strong balance sheet position with net assets increasing to £6.97 million from £6.35 million in the prior year. Retained earnings increased to £6.22 million following the retention of profits generated during the year.

The directors continued to focus closely on working capital management throughout the year. Net current assets improved to £4.87 million compared with £4.58 million in the prior year, despite the increased scale of operations and continued investment in project delivery. Current liabilities reduced from £9.18 million to £7.89 million during the year, reflecting improved creditor management.

REVIEW OF BUSINESS CONTINUED

Trade debtor balances increased in line with turnover growth and project activity levels, however management continued to maintain close oversight of collections and customer credit exposure. Cash balances at the year-end were £1.42 million (2024: £2.73 million). The reduction in cash reserves principally reflected increased investment in plant and machinery together with working capital movements associated with higher trading activity and dividend payments made during the year. Notwithstanding this reduction, the directors remain satisfied with the company's liquidity position, available banking facilities and overall financial resilience.

The company continued to invest in capital expenditure during the year, primarily in plant and machinery, in order to support operational efficiency, project delivery capability and future growth requirements, particularly to meet the growing demand for its site temporary services.

The directors remain encouraged by the company's performance and its ability to continue generating profitable growth despite ongoing economic uncertainty, labour market pressures and inflationary cost challenges affecting the wider construction industry. The business continues to maintain a healthy pipeline of opportunities and remains focused on sustainable long-term growth, operational excellence and maintaining strong client relationships.

PRINCIPAL RISKS AND UNCERTAINTIES

The board recognises that effective risk management is essential to the long-term success and sustainability of the business. The company operates within the construction sector, which is influenced by economic conditions, project delivery performance, labour availability and regulatory requirements. The directors continually review the key operational and financial risks facing the business and implement measures designed to mitigate exposure where possible.

Economic and Market Conditions

The construction sector continues to experience uncertainty arising from inflationary pressures, interest rate movements, supply chain disruption and fluctuations in client investment levels. These conditions may impact project margins, customer confidence and the timing of contract awards.

To mitigate these risks, the company maintains a diversified client base across a range of sectors and continues to focus on securing repeat business through long-standing customer relationships and quality project delivery. The directors closely monitor market conditions, tender pipelines and operational performance to ensure the business remains responsive to changes in demand.

Contract Delivery and Operational Performance

The successful delivery of projects within agreed timescales and budgets is critical to the company's performance. Delays, cost overruns, subcontractor performance issues or unforeseen site conditions could adversely affect profitability and reputation.

The company mitigates these risks through experienced project management teams, detailed pre-contract assessments, regular project reviews and ongoing monitoring of project costs and programme performance. Contractual risks are reviewed carefully prior to acceptance, and operational management maintains regular communication with clients and subcontractors throughout project delivery.

Inflation and Cost Pressures

The company remains exposed to increases in labour, subcontractor, fuel, plant and material costs, which may impact project profitability where costs cannot be recovered through contractual arrangements. Management continually reviews procurement practices, supplier relationships and contract pricing mechanisms to minimise exposure to inflationary pressures. The business also seeks to negotiate appropriate commercial terms and maintain flexibility within its operational cost base.

Labour Availability and Retention

The business relies on the availability of skilled employees, subcontractors and specialist labour within a competitive market. Recruitment challenges or labour shortages could affect operational capacity and project delivery. To reduce this risk, the company continues to invest in employee development, training and workforce engagement. The directors seek to maintain a positive working environment, competitive remuneration structures and strong relationships with trusted subcontractors and supply chain partners.

Health and Safety Compliance

The nature of the company's operations involves inherent health and safety risks associated with construction activities. Failure to maintain high standards of health, safety or environment compliance could result in financial penalties, reputational damage or operational disruption.

The company maintains robust health and safety policies and procedures supported by regular training, site monitoring and compliance reviews. Management remains committed to promoting a strong safety culture throughout the organisation and ensuring compliance with all applicable legislation and industry standards.

Credit Risk

The company is exposed to credit risk through trade receivables and recoverability of amounts due on construction contracts. Delayed payments or customer insolvency could impact working capital and cash flow.

The directors closely monitor customer creditworthiness, aged receivables and contract recoverability on an ongoing basis. Management applies prudent controls over invoicing, debt collection and contract valuation procedures to minimise exposure to bad debts and disputed balances.

Liquidity and Cash Flow Management

The business requires effective working capital management due to the timing of contract receipts, supplier payments and operational expenditure. Increase in turnover and project activity can place additional pressure on

Cash Flow requirements.

The directors regularly review detailed cash flow forecasts, banking arrangements and financing requirements to ensure the company maintains sufficient liquidity to support operational activities and future growth. Banking facilities and debt obligations are monitored carefully and remain within manageable levels.

Regulatory and Compliance Risk

The company operates within a regulated environment and is subject to changes in taxation, employment legislation, construction regulations and environmental standards. Failure to comply with regulatory requirements could lead to financial or reputational consequences.

The company engages professional advisers where appropriate and maintains internal procedures designed to ensure compliance with relevant legal and regulatory obligations. The directors monitors legislative developments and assess the impact of regulatory changes on the business.

Cyber Security and Information Management

As the business continues to rely increasingly on digital systems and electronic communications, exposure to cybersecurity threats and data loss remains an ongoing risk.

The company maintains appropriate IT controls, system protections, backup procedures and access restrictions designed to safeguard company information and operational systems. External IT support providers are utilised here necessary to maintain system resilience and security standards.

Financial Risk Management

The company's exposure to financial risk is managed through ongoing review procedures by the directors. The principal financial risks relate to liquidity, credit risk and interest rate exposure. The directors regularly review cash flow forecasts, debtor recoverability and financing arrangements to ensure the company maintains adequate working capital and financial flexibility.

Employees

The directors recognise that employees are fundamental to the success of the business. The company remains committed to providing a safe and supportive working environment, promoting employee engagement and investing in training and professional development.

Stakeholder Engagement

The directors understand the importance of maintaining strong relationships with customers, suppliers, subcontractors, employees and other stakeholders. The company seeks to operate responsibly and maintain high standards of business conduct across all areas of operation.

.

ON BEHALF OF THE BOARD:

Mr C J Langbridge - Director

29 May 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company continued to be that of construction and associated support services across London and the South-East. The business operates across a broad range of sectors to both commercial and public sector clients.

The company continues to focus on delivering high-quality projects, maintaining strong client relationships and investing in operational capability and skilled personnel. The directors believe that the company's reputation for reliability, technical expertise and responsiveness remains central to its continued success.

DIVIDENDS

No interim dividend was paid during the year. The directors recommend a final dividend of 296000 per share.

The total distribution of dividends for the year ended 31 August 2025 will be £ 296,000 .

FUTURE DEVELOPMENTS

The director remains cautiously optimistic regarding the company's prospects for the forthcoming year. The business continues to maintain a healthy pipeline of opportunities and remains focused on sustainable growth, operational efficiency and long-term client partnerships.

Investment will continue in people, plant, technology and operational processes to support future growth and enhance service delivery. The directors believe the company is well positioned to respond to changing market conditions and continue delivering profitable growth.

DIRECTORS

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

Mr C J Langbridge

Mrs R L Mason

Mr A C Mason

FINANCIAL INSTRUMENTS

The company has various financial instruments that are directly from operations. The company does not enter into derivative transactions.

The main financial risks arising from the company's activities are credit risk and liquidity risk. These are monitored by the senior management were not considered to be significant at the balance sheet date. No extended credit terms are offered to clients and outstanding debts regularly monitored. Directors continuously explore new lines of credit to enable a contingency plan to be established.

POLITICAL DONATIONS AND EXPENDITURE

During the year, the company made charitable donations totalling £2,555 (2024: £3,500) to various UK registered charities. No political donations were made during the current or previous year.

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:

Mr C J Langbridge - Director

29 May 2026

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 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 seven, 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, 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 company's sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, employment, health and safety legislation.

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where necessary.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

- performed analytical procedures to identify any unusual or unexpected transactions;

- tested the appropriateness of journal entries;

- tested authorisation of expenditure;

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

- investigated the rationale behind significant or unusual transactions.

To address the risk that revenue could be misstated due to fraud, we:

- obtained an understanding of the company's revenue recognition policies and compared these to the accounting standard;

- performed a walkthrough to confirm our understanding of the processes and controls through which the business initiates, records, processes and reports revenue transactions;

- tested a sample of revenue transactions to supporting evidence; and

- tested, on a sample basis, revenue related balances in the balance sheet.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC and relevant regulators.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Thurairatnam Sudarshan FCCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Statutory Auditor

8th Floor, Becket House

36 Old Jewry

London

EC2R 8DD

29 May 2026

TURNOVER

3

42,125,462

38,133,844

Cost of sales

(37,384,286

)

(34,102,180

)

GROSS PROFIT

4,741,176

4,031,664

Administrative expenses

(3,619,367

)

(3,459,109

)

1,121,809

572,555

Other operating income

256,094

653,880

OPERATING PROFIT

5

1,377,903

1,226,435

Interest receivable and similar income

29,757

43,084

1,407,660

1,269,519

Amounts written off investments

6

-

(80

)

1,407,660

1,269,439

Interest payable and similar expenses

7

(87,836

)

(102,596

)

PROFIT BEFORE TAXATION

1,319,824

1,166,843

Tax on profit

8

(400,598

)

(360,152

)

PROFIT FOR THE FINANCIAL YEAR

919,226

806,691

PROFIT FOR THE YEAR

919,226

806,691

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

919,226

806,691

FIXED ASSETS

Tangible assets

10

3,211,466

2,948,768

CURRENT ASSETS

Stocks

11

114,230

134,138

Debtors

12

9,994,026

9,496,776

Prepayments and accrued income

1,223,242

1,403,770

Cash at bank

1,420,617

2,727,581

12,752,115

13,762,265

CREDITORS

Amounts falling due within one year

13

7,886,719

9,182,456

NET CURRENT ASSETS

4,865,396

4,579,809

TOTAL ASSETS LESS CURRENT LIABILITIES

8,076,862

7,528,577

CREDITORS

Amounts falling due after more than one year

14

(600,132

)

(752,074

)

PROVISIONS FOR LIABILITIES

19

(504,898

)

(427,897

)

NET ASSETS

6,971,832

6,348,606

CAPITAL AND RESERVES

Called up share capital

20

2

2

Revaluation reserve

21

750,000

750,000

Retained earnings

21

6,221,830

5,598,604

SHAREHOLDERS' FUNDS

6,971,832

6,348,606

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:

Mr C J Langbridge - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 September 2023

2

4,942,913

750,000

5,692,915

Changes in equity

Dividends

-

(151,000

)

-

(151,000

)

Total comprehensive income

-

806,691

-

806,691

Balance at 31 August 2024

2

5,598,604

750,000

6,348,606

Changes in equity

Dividends

-

(296,000

)

-

(296,000

)

Total comprehensive income

-

919,226

-

919,226

Balance at 31 August 2025

2

6,221,830

750,000

6,971,832

Cash flows from operating activities

Cash generated from operations

1

160,147

1,780,210

Interest paid

(64,591

)

(80,297

)

Interest element of hire purchase or finance lease rental payments paid

(2,932

)

(2,932

)

Finance costs paid

(20,313

)

(19,367

)

Tax paid

(282,096

)

(234,096

)

Net cash from operating activities

(209,785

)

1,443,518

Cash flows from investing activities

Purchase of tangible fixed assets

(678,994

)

(610,430

)

Interest received

29,757

43,084

Net cash from investing activities

(649,237

)

(567,346

)

Cash flows from financing activities

Bank loan repayments in year

(151,942

)

(141,453

)

Equity dividends paid

(296,000

)

(151,000

)

Net cash from financing activities

(447,942

)

(292,453

)

(Decrease)/increase in cash and cash equivalents

(1,306,964

)

583,719

Cash and cash equivalents at beginning of year

2

2,727,581

2,143,862

Cash and cash equivalents at end of year

2

1,420,617

2,727,581

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

2025

2024

£

£

Profit before taxation

1,319,824

1,166,843

Depreciation charges

410,436

312,276

Loss on disposal of fixed assets

5,861

80

Finance costs

87,836

102,596

Finance income

(29,757

)

(43,084

)

1,794,200

1,538,711

Decrease/(increase) in stocks

19,908

(27,013

)

Increase in trade and other debtors

(316,721

)

(2,238,008

)

(Decrease)/increase in trade and other creditors

(1,337,240

)

2,506,520

Cash generated from operations

160,147

1,780,210

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 August 2025

31.8.25

1.9.24

£

£

Cash and cash equivalents

1,420,617

2,727,581

Year ended 31 August 2024

31.8.24

1.9.23

£

£

Cash and cash equivalents

2,727,581

2,143,862

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.24

Cash flow

At 31.8.25

£

£

£

Net cash

Cash at bank

2,727,581

(1,306,964

)

1,420,617

2,727,581

(1,306,964

)

1,420,617

Debt

Debts falling due within 1 year

(154,844

)

-

(154,844

)

Debts falling due after 1 year

(752,074

)

151,942

(600,132

)

(906,918

)

151,942

(754,976

)

Total

1,820,663

(1,155,022

)

665,641

1.	STATUTORY INFORMATION

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

The presentation currency of the financial statements is the Pound Sterling (£).

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 as modified by the revaluation of certain assets.

Going concern

After reviewing the group's forecast and projections, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing its financial statements.

Significant judgements and estimates

The company may be required to make estimates and assumptions concerning the future. These estimates and judgements are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The principle area where judgement was exercised are as follows:

Amounts recoverable on contracts: Amounts recoverable on long-term contracts represents the difference between the value of works completed on live construction projects at the balance sheet date and the amounts billed to customers. The value of work done is assessed by the management with reference to stage of completion of the project and the contract price. Management continuously review the balance to assess whether a provision needs to be entered against the amounts which may not be recoverable.

Turnover

Turnover is measured at fair value of the consideration received or receivable, excluding discounts, value added tax and other sales tax from rendering of service. In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done during the year, including estimates of amounts invoiced.

Turnover in respect of long-term contracts and contracts for on-going services is recongised by reference to the stage of completion of the contract. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

Tangible fixed assets

Tangible fixed assets are held at cost less accumulated depreciation and any impairment losses. Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Freehold property - Land is not depreciated. Building is depreciated at 2% on straight line basis.

Plant & machinery - 25% on reducing balance

Fixtures & fittings - 25% on reducing balance

Motor vehicles - 25% on reducing balance

Investments in subsidiaries

Investment in subsidiary undertaking are recognised at cost less provision for impairment.

Stock

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

Financial instruments

The company only enters into basic financial instrument transactions that result in recognisition of financial assets and liabilities.

Short term debtors are measured at transaction price, less impairment. Loans receivable are measured initially at fair value, net of transaction costs and are measured at amortised cost using effective method, less any impairment.

Short term trade creditors are measured at transaction price. Other financial liabilities, including bank loan are measured initially at fair value net of transaction costs, and subsequently at amortised cost using effective interest method.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

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

Leasing commitments

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

Pension costs and other post-retirement benefits

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

Revaluation reserve

Revaluation reserve represents fair value gains/losses on the freehold property net of related deferred tax.

3.

TURNOVER

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

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

2025

2024

£

£

Social housing & regeneration

13,698,380

15,717,394

Waterproofing

22,386,171

15,544,977

M&E / site temporaries

6,040,911

6,871,473

42,125,462

38,133,844

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,891,853

4,092,425

Social security costs

427,934

428,455

Other pension costs

58,246

66,373

4,378,033

4,587,253

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

2025

2024

Administrative staff

19

20

Site staff

60

65

Directors

3

3

82

88

2025

2024

£

£

Directors' remuneration

167,702

167,702

5.	OPERATING PROFIT

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

2025

2024

£

£

Hire of plant and machinery

439,142

376,472

Other operating leases

135,287

109,442

Depreciation - owned assets

410,435

312,276

Loss on disposal of fixed assets

5,861

-

Auditors' remuneration

49,369

41,190

Foreign exchange differences

(8

)

-

6.

AMOUNTS WRITTEN OFF INVESTMENTS

2025

2024

£

£

Amounts written off investments

-

80