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Registered number: 05844684 Totally Local Company Limited Annual Report and Consolidated Financial Statements For the Year Ended 31 March 2026
Totally Local Company Limited Company Information
Directors | Mr Matthew Fortune
| Ms Susan Mckee
| Ms Victoria Bates
| Mr Mark Glynn
| Mr Jonathan Davies
Company secretary | Mr Matthew Fortune
Registered number | 05844684
Registered office | Endeavour House
| Bredbury Park Way
| Bredbury
| Stockport
| SK6 2SN
Independent auditors | Hurst Accountants Limited
| Chartered Accountants & Statutory Auditors
| 3 Stockport Exchange
| Stockport
| Cheshire
| SK1 3GG
Totally Local Company Limited Contents
| Page
Group Strategic Report | 1 - 2
Directors' Report | 3 - 6
Independent Auditors' Report | 7 - 10
Consolidated Statement of Comprehensive Income | 11
Consolidated Statement of Financial Position | 12
Company Statement of Financial Position | 13
Consolidated Statement of Changes in Equity | 14
Company Statement of Changes in Equity | 15
Notes to the Financial Statements | 16 - 37
Totally Local Company Limited Group Strategic Report For the Year Ended 31 March 2026
Introduction
The Directors present their Group Strategic report and the consolidated financial statements for the year ended 31 March 2026. The Board of the Company consists of two Executive Directors and three Non-Executive Directors, which governs the relationship between the Company and its Shareholder, Stockport Metropolitan Borough Council. Waste Solutions SK Limited, a subsidiary of Totally Local Company Limited, has two Directors who also serve on the Board of the parent company.
Principal activities
The principal activity of Totally Local Company and its wholly owned subsidiary company, Waste Solutions SK Limited, (together, 'the Group') during the year was to provide an array of essential services to Local Authorities (primarily Stockport Metropolitan Borough Council); Local Authority and Academy Schools; and the commercial sector. Business model The Group operates in five key divisions: - Environmental Services; - Civils and Electrical Engineering; - Facilities Management, - Other Commercial Services; and - Fleet maintenance services. The Group aims to continue to provide quality services via skilled, engaged and safety focused teams. Business review and results Operating amidst a myriad of external factors, the Group ended the year positively, delivering an end of year operating profit of £243,000 (2025: £59,000). The financial results illustrate another successful year for Totally Local Company, supported by a solid Consolidated Statement of Financial Position (Balance Sheet), based on a strong cash position; with debtors and debt risk professionally managed and creditors paid in a timely manner. The Group achieved a trading profit of £154,000 (2025: £146,000) before Defined Benefit pension scheme adjustments totalling £47,000, which reduced the final Profit after tax to £107,000 (2025 restated: £300,000). Consolidated net assets total £310,000 (2025 restated: £408,000), with the movement reflecting the Group’s £107,000 Profit after tax, and a £205,000 actuarial loss accounted for as part of Other comprehensive income, associated with the Group's defined benefit pension scheme. Totally Local Company identified and implemented several operational efficiencies during the financial year, enabling additional support to be provided to SMBC realm services. Key Performance Indicators The Group has implemented a framework of key performance indicators (financial and non-financial) to increase visibility of performance across the business. The Directors and Senior Management Team regularly review and update the budget and forecast indicators with actual results to ensure precise information is included in all performance and strategic reviews. Page 1
Totally Local Company Limited Group Strategic Report (continued) For the Year Ended 31 March 2026 The Group has continued to improve operational visibility across several service areas by migrating to existing software solutions, in addition to obtaining access to dynamic reporting via Tableau. The directors manage the business via a suite of reports including; a strategic risk register, operational risk registers at business segment level; daily and weekly operational reports and monthly business unit reviews and management accounts.
Principal risks and uncertainties
The Group has comprehensive risk management procedures to identify and manage key business risks. The Directors and Senior Management Team regularly review and update a schedule of business risks derived from departmental risk registers. This ensures that appropriate risks are identified and controlled, in addition to minimising the potential impact of other unexpected problems. The Group continues to monitor and adapt where necessary to local, national, and international situations that could have a direct or indirect impact on the business. To mitigate the impact of inflation across our supplier network the Group continues to review agreements via a strong procurement process to secure competitive pricing over medium- and long-term agreements. Adopting collaborative working arrangements with our suppliers to identify areas of improvement, enabling greater cost control and further reductions in operating costs through efficiency. Local, national, and international situations are to be closely monitored and adaptations to be adopted, where possible, to mitigate the potential impact to the Group. Whilst the business has acceptable levels of cash and a solid Statement of Financial Position it remains dependent on Stockport MBC for access to key contracts and financial support, including loan funding. Stockport MBC has confirmed its support of the Group and Company for a minimum of 12 months from the date of signing of the statutory accounts.
Future Operating Strategy
The Groups intention is to improve the quality of services, streamline and automate processes and to deliver quality services to existing customers at the lowest prices possible. The Group has realigned its focus following several years of transformational projects to a phase of continuous improvement. Existing processes are to be reviewed using efficiency focused methodologies (including Lean and Six Sigma). This will continue to enable a more agile approach with implementing swift improvements. The company also aims to strengthen its assets and reduce liabilities with the aim of improving its Consolidated Statement of Financial Position. Currently, the company can meet all its working capital requirements from existing cashflow generation and is steadily paying down longer-term liabilities to Stockport MBC. The Group will continue with its strategic objectives by collaborating closely with Stockport MBC. This report was approved by the board and signed on its behalf.
Ms Susan Mckee Director
Date: 3 June 2026
Page 2
Totally Local Company Limited Directors' Report For the Year Ended 31 March 2026 The Directors present their report and the financial statements for the year ended 31 March 2026.
Directors' responsibilities statement
The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the Directors are required to: ∙select suitable accounting policies for the Group's financial statements and then apply them consistently; ∙make judgements and accounting estimates that are reasonable and prudent; ∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Results and dividends
The profit for the year, after taxation, amounted to £107,000 (2025 as restated - £300,000). The Directors do not recommend the payment of a dividend.
Directors
The Directors who served during the year were:
Mr Matthew Fortune
Ms Susan Mckee
Ms Victoria Bates
Mr Mark Glynn
Mr Jonathan Davies
Mr David Hughes (resigned 4 July 2025)
Page 3
Totally Local Company Limited Directors' Report (continued) For the Year Ended 31 March 2026
Corporate Governance
The Board of the Company consists of two Executive Directors and three Non-Executive Directors, which governs the relationship between the Company and its Shareholder, Stockport Metropolitan Borough Council. Waste Solutions SK Limited, a subsidiary of Totally Local Company Limited, has two Directors who also serve on the Board of the parent company. The Board is responsible for the strategic direction and tasks of the Group and Board members are registered as the Company’s Directors with Companies House. They have been selected to collectively provide the skills and competencies to successfully steer the Group in accordance with its Mission, Aims, Values, the Contributor’s Agreement and the Corporate Governance Framework.
People - Employee involvement and engagement
The Group continues to place health, safety and employee engagement at the centre of its operations, with a strong safety first culture embedded across all service areas. This is reflected in the continued improvement in performance, with a record low Accident Frequency Rate achieved during the year, building on consistently strong results in prior periods. This is supported by a dedicated SHEQ function working collaboratively with an engaged and responsible workforce. Clear and consistent communication with employees remains a priority. Colleagues receive regular bulletins providing updates on business developments and employee matters, supported by standardised information boards across operational locations to ensure consistent messaging. Digital channels continue to be developed to broaden engagement, including social media platforms, alongside access to a comprehensive Employee Assistance Programme and employee discount schemes. The Group recognises the importance of ensuring all employees are able to access key information, regardless of role or access to technology. A range of targeted communications are therefore used to maintain engagement across the workforce. Initiatives introduced during the year, including safety and ‘thank you’ recognition cards, have reinforced a culture of appreciation and supported positive behaviours aligned to organisational values resulting excellent retention. Regular consultation with employees is maintained through team meetings and one-to-one discussions, enabling both individual and collective feedback to be heard and acted upon. The organisation also continues to support workforce stability and development, with colleagues developing and transitioning into permanent roles during the year. Investment in training, development and apprenticeship programmes continue to be a key focus, enabling employees to develop their skills and, where applicable, complete formal qualifications that support career progression within the Group.
Diversity and inclusion
The Group is committed to providing an inclusive working environment where all employees and job applicants are treated fairly and with respect. Employment decisions are based on merit, with equal opportunities provided regardless of ethnicity, disability, gender, religion, sexual orientation or age. Applications from disabled candidates are welcomed and considered fully where the requirements of the role can be met. Where individuals become disabled during their employment, the Group is committed to supporting their continued employment through reasonable adjustments and appropriate workplace support. Page 4
Totally Local Company Limited Directors' Report (continued) For the Year Ended 31 March 2026
Business relationships and Engagement with Suppliers and Customers
Totally Local Company continues to work closely and collaboratively with customers. Existing relationships continue to be nurtured, with new relationships developing through personnel changes and future commercial opportunities. Several large-scale operational changes were delivered during the year following a great deal of collaboration and preparation with Stockport MBC, enabling essential services to be successfully delivered during the transitional period. The Group also continues to work closely with our network of approved suppliers. Our in-house procurement team continue to maintain competitive rates across an array of essential suppliers, providing quality materials and services to the business. Supplier Policy Statement The Group’s policy is to settle terms of payments with suppliers when agreeing terms of each transaction, ensuring that suppliers are made aware of terms of payment and abide by the agreed terms.
Greenhouse gas emissions, energy consumption and energy efficiency action
The Group employs a system of monitoring and recording energy consumption across all aspects of its operations. These range from fuels consumed by vehicles and work equipment to energy consumed by the Group’s buildings, including heating, lighting and ICT systems. Data is obtained direct from either meter readings for gas and electricity, or internal and external fuel card systems for vehicle fuels. This is then converted into an overall Carbon Footprint using national standard conversion factors for each fuel type, obtained and reviewed annually from the Department for Business, Energy and Industry Strategy and Department for Environment, Food and Rural Affairs. TLC have established a benchmark which measures its output against turnover, which enables the positive impacts of newly implemented technologies and efficiency measures to be measured against previous years. During the previous year, the Group transitioned where possible from diesel to HVO fuel for a large section of the service vehicles. Over time the change will reduce carbon levels significantly and this has started to be seen in the year to 31 March 2026. The decrease in emissions is mainly attributable to the relocation of most of the Group's operations at the beginning of the year, from Enterprise House in Cheadle Heath to Endeavour House in Bredbury. TLC is developing its plan to reduce energy consumption and related carbon emissions. Current activity and future plans include: • Regular monitoring and reduction in energy consumption. • Renewal of the transport fleet with more efficient vehicles and, in collaboration with Stockport MBC, possible future replacement with electric, hydrogen or other greener vehicles. The Group believes it is appropriate to use an intensity ratio to measure its progress on reducing emissions and has elected to use the metric; tonnes of CO2 per million pounds of turnover. TLC’s mandatory carbon reporting data for the year to 31 March 2026 is summarised as follows:
|  |  |  | 2026 | 2025
Emissions resulting from activities for which the Group is responsible involving the combustion of gas or consumption of fuel for the purposes of transport (in tonnes of CO2 equivalent) | 655 | 2,319
Emissions resulting from the purchase of the electricity by the Group for its own use (in tonnes of CO2 equivalent) | 55 | 121
Energy consumed from activities for which the Group is responsible, in kWh | 595,297 | 1,514,351
Page 5
Totally Local Company Limited Directors' Report (continued) For the Year Ended 31 March 2026 The Group believes it is appropriate to use an intensity ratio to measure its progress on reducing emissions and has elected to use the metric; tonnes of CO2 per million pounds of turnover. The relevant figures for 2026 are as follows:
|  |  |  |  | 2026 | 2025
|  |  |  |  | (tCO2e)/£M | (tCO2e)/£M
| Gas | 2 | 6
| Vehicle fuels | 17 | 64
| Electricity | 2 | 4
|  | 21 | 74
Matters covered in the Group Strategic Report
Likely future developments of the Group have been discussed in the Group Strategic Report.
Disclosure of information to auditors
Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that: ∙so far as the Director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and ∙the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.
Auditors
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board and signed on its behalf.
Ms Susan Mckee Director
Date: 3 June 2026
Page 6
Totally Local Company Limited Independent Auditors' Report to the Members of Totally Local Company Limited
Opinion
We have audited the financial statements of Totally Local Company Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2026, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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's affairs as at 31 March 2026 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 United Kingdom, including the Financial Reporting Council'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 or 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. Page 7
Totally Local Company Limited Independent Auditors' Report to the Members of Totally Local Company Limited (continued)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit: ∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or ∙the parent Company financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of Directors' remuneration specified by law are not made; or ∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 3, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so. Page 8
Totally Local Company Limited Independent Auditors' Report to the Members of Totally Local Company Limited (continued)
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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Identifying and assessing potential risks related to irregularities In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: •The nature of the industry and sector in which the Group operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets. •The outcome of enquiries of management, including whether management was aware of any instances of non- compliance with laws and regulations, and if management had knowledge of any actual, suspected, or alleged fraud. •Supporting documentation relating to the Group's policies and procedures for: - Identifying, evaluating, and complying with laws and regulations - Detecting and responding to the risks of fraud •The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. •The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. •The legal and regulatory framework in which the Group operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Group, including General Data Protection requirements, and Anti-bribery and Corruption. Audit response to risks identified Our procedures to respond to the risks identified included the following: •Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements. •Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud. •Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities. •Enquiring of management about any actual and potential litigation and claims. •Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud. Page 9
Totally Local Company Limited Independent Auditors' Report to the Members of Totally Local Company Limited (continued) We have also considered the risk of fraud through management override of controls by: •Testing the appropriateness of journal entries and other adjustments. We have used audit data analytics to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error. •Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and •Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. 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 Auditors' Report.
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 an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed. John Glover (Senior Statutory Auditor) for and on behalf of Hurst Accountants Limited Chartered Accountants & Statutory Auditors 3 Stockport Exchange Stockport Cheshire SK1 3GG 3 June 2026 Page 10
Totally Local Company Limited Consolidated Statement of Comprehensive Income For the Year Ended 31 March 2026
| 2026 | As restated 2025
Note | £000 | £000
Turnover | 4 | 33,951 | 33,083
Cost of sales |  | (29,554) | (28,252)
Gross profit |  | 4,397 | 4,831
Administrative expenses |  | (4,154) | (4,772)
Operating profit | 5 | 243 | 59
Interest receivable and similar income |  | 93 | 63
Interest payable and similar expenses | 9 | (327) | (244)
Other finance income/(costs) | 10 | 25 | 422
Profit before taxation |  | 34 | 300
Tax on profit | 11 | 73 | -
Profit for the financial year |  | 107 | 300
Actuarial gains/(losses) on defined benefit pension scheme | 23 | (1,976) | 11,560
Pension surplus not recognised | 23 | 1,771 | (20,232)
Other comprehensive income/(deficit) for the year |  | (205) | (8,672)
Total comprehensive income/(deficit) for the year |  | (98) | (8,372)
The notes on pages 16 to 37 form part of these financial statements.
Page 11
Totally Local Company Limited Registered number: 05844684 Consolidated Statement of Financial Position As at 31 March 2026
|  | 2026 |  | As restated 2025
Note |  | £000 |  | £000
Fixed assets |  |  |  |  |
Tangible assets | 12 |  | 6,908 |  | 6,009
Current assets |  |  |  |  |
Stocks | 14 | 222 |  | 202 |
Debtors: amounts falling due within one year | 15 | 2,113 |  | 1,198 |
Cash at bank and in hand | 16 | 3,817 |  | 6,179 |
|  | 6,152 |  | 7,579 |
Creditors: amounts falling due within one year | 17 | (7,725) |  | (6,532) |
Net current (liabilities)/assets |  |  | (1,573) |  | 1,047
Total assets less current liabilities |  |  | 5,335 |  | 7,056
Creditors: amounts falling due after more than one year | 18 |  | (3,955) |  | (6,006)
Provisions for liabilities |  |  |  |  |
Other provisions | 20 |  | (1,087) |  | (912)
Net assets excluding pension asset |  |  | 293 |  | 138
Pension asset | 23 |  | 17 |  | 270
Net assets |  |  | 310 |  | 408
Capital and reserves |  |  |  |  |
Called up share capital | 21 |  | - |  | -
Profit and loss account | 22 |  | 310 |  | 408
Equity attributable to owners of the parent Company |  |  | 310 |  | 408
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
Ms Susan Mckee
Director
Date: 3 June 2026
The notes on pages 16 to 37 form part of these financial statements. Page 12
Totally Local Company Limited Registered number: 05844684 Company Statement of Financial Position As at 31 March 2026
|  | 2026 |  | As restated 2025
Note |  | £000 |  | £000
Fixed assets |  |  |  |  |
Tangible assets | 12 |  | 6,908 |  | 6,009
Current assets |  |  |  |  |
Stocks | 14 | 222 |  | 202 |
Debtors: amounts falling due within one year | 15 | 2,169 |  | 1,211 |
Cash at bank and in hand | 16 | 2,265 |  | 4,717 |
|  | 4,656 |  | 6,130 |
Creditors: amounts falling due within one year | 17 | (7,664) |  | (6,410) |
Net current liabilities |  |  | (3,008) |  | (280)
Total assets less current liabilities |  |  | 3,900 |  | 5,729
Creditors: amounts falling due after more than one year | 18 |  | (3,955) |  | (6,006)
Provisions for liabilities |  |  |  |  |
Other provisions | 20 |  | (1,087) |  | (912)
Net liabilities excluding pension asset |  |  | (1,142) |  | (1,189)
Pension asset | 23 |  | 17 |  | 270
Net liabilities |  |  | (1,125) |  | (919)
Capital and reserves |  |  |  |  |
Profit and loss account brought forward |  | (919) |  | 7,559 |
Loss/(profit) for the year |  | (1) |  | 194 |
Other changes in the profit and loss account |  | (205) |  | (8,672) |
Profit and loss account carried forward |  |  | (1,125) |  | (919)
|  |  | (1,125) |  | (919)
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
Ms Susan Mckee
Director
Date: 3 June 2026
The notes on pages 16 to 37 form part of these financial statements. Page 13
Totally Local Company Limited Consolidated Statement of Changes in Equity For the Year Ended 31 March 2026
| Called up share capital | Profit and loss account | Total equity
| £000 | £000 | £000
At 1 April 2025 (as previously stated) | - | 18 | 18
Prior year adjustment (Note 26) | - | 390 | 390
At 1 April 2025 (as restated) | - | 408 | 408
Comprehensive income for the year |  |  |
Profit for the year | - | 107 | 107
Actuarial losses on pension scheme | - | (205) | (205)
Total comprehensive income/(deficit) for the year | - | (98) | (98)
At 31 March 2026 | - | 310 | 310
| The notes on pages 16 to 37 form part of these financial statements.
Consolidated Statement of Changes in Equity For the Year Ended 31 March 2025
| Called up share capital | Profit and loss account | Total equity
| £000 | £000 | £000
At 1 April 2024 | - | 8,780 | 8,780
Comprehensive income for the year |  |  |
Profit for the year | - | 300 | 300
Actuarial losses on pension scheme | - | (8,672) | (8,672)
Total comprehensive income/(deficit) for the year | - | (8,372) | (8,372)
At 31 March 2025 (restated) | - | 408 | 408
| The notes on pages 16 to 37 form part of these financial statements.
Page 14
Totally Local Company Limited Company Statement of Changes in Equity For the Year Ended 31 March 2026
| Called up share capital | Profit and loss account | Total equity
| £000 | £000 | £000
At 1 April 2025 (as previously stated) | - | (1,309) | (1,309)
Prior year adjustment (Note 26) | - | 390 | 390
At 1 April 2025 (as restated) | - | (919) | (919)
Comprehensive income for the year |  |  |
Loss for the year | - | (1) | (1)
Actuarial losses on pension scheme | - | (205) | (205)
Total comprehensive income/(deficit) for the year | - | (206) | (206)
At 31 March 2026 | - | (1,125) | (1,125)
| The notes on pages 16 to 37 form part of these financial statements.
Company Statement of Changes in Equity For the Year Ended 31 March 2025
| Called up share capital | Profit and loss account | Total equity
| £000 | £000 | £000
At 1 April 2024 | - | 7,559 | 7,559
Comprehensive income for the year |  |  |
Profit for the year | - | 194 | 194
Actuarial losses on pension scheme | - | (8,672) | (8,672)
Total comprehensive income/(deficit) for the year | - | (8,478) | (8,478)
At 31 March 2025 | - | (919) | (919)
| The notes on pages 16 to 37 form part of these financial statements.
Page 15
Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026
1. | General information
Totally Local Company Limited is a private company limited by shares and incorporated in England and Wales. The Company's registered number is 05844684. The address of the registered office and the principal place of business is Endeavour House, Bredbury Park Way, Bredbury, Stockport, SK6 2SN. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The financial statements are presented in sterling (£). Amounts presented in the financial statements are rounded to the nearest thousand, unless otherwise stated. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3). The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The following principal accounting policies have been applied: Page 16
Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026 2.Accounting policies (continued)
| 2.2 | Going concern
The financial statements have been prepared on the going concern basis, the Directors believe the Going Concern assumption to be appropriate, for the following reasons: • The Group had a strong cash position at 31 March 2026. Group cash at the year-end totalled £3,817m, sufficient to meet the Group's liabilities as they fall due. • The Directors have considered forecast cashflow projections which show that the Group will generate adequate cashflows from operations for the foreseeable future, even taking into account the impact of higher inflation. • The Board has reviewed the historical accuracy of the Budget cashflow forecast compared to the actual cash balances achieved, and believe the cashflow forecast used by TLC builds in a natural prudence. • The Group’s main customer is Stockport MBC, which has committed to provide revenue contracts for key services with the Overarching Agreement extended to 31 March 2027. This formally guarantees that SMBC will provide work and revenue to TLC across the core services (i.e. the cost contract cost centres), plus first refusal work and revenue across a wider group of services, for at least one more year from the date of the statutory accounts. • In addition, Stockport MBC has confirmed that it will continue to support the Group with any necessary short term funding (if required), for at least 12 months from the signing of these accounts. • The Group has medium term loan liabilities provided by the Group’s parent, Stockport MBC. Stockport MBC has confirmed that it intends to fully support the Group as it repays the various loans over varying periods up to ten years. These factors, taken together, should enable the Group to continue to operate for the foreseeable future by meeting its liabilities as they fall due for payment. As with any Company placing reliance on other Group entities for financial support, the Directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.
| 2.3 | Financial Reporting Standard 102 - reduced disclosure exemptions
The Parent Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": ∙the requirements of Section 7 Statement of Cash Flows; ∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); ∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); ∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A; ∙the requirements of Section 33 Related Party Disclosures paragraph 33.7. This information is included in the consolidated financial statements of Stockport Metropolitan Borough Council as at 31 March 2026 and these financial statements may be obtained from Stockport Council, Town Hall, Edward Street, Stockport, SK1 3XE. Page 17
Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026 2.Accounting policies (continued)
| 2.4 | Basis of consolidation
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
| 2.5 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The Group's principal source of income is from providing multiple services to Stockport Metropolitan Borough Council. Revenue is recognised in the accounts when the service has been completed, the amount of revenue can be measured reliably and it is probable that the Group will receive the consideration due under the contract or transaction. Capital works are also performed for Stockport Metropolitan Borough Council, mainly in respect of Highways and Street Lighting. When the outcome of a capital works job can be estimated reliably, revenue and costs are recognised by reference to the stage of completion at the end of the reporting period. Reliable estimation of the outcome of capital jobs requires reliable estimates of the stage of completion, future costs and collectibility of billings. The stage of completion is measured by surveys of work performed. When the outcome of a capital works job cannot be estimated reliably, revenue is only recognised to the extent of costs incurred that it is probable will be recoverable. When it is probable that the total costs will exceed total revenue on a capital works job, the expected loss shall be recognised as an expense immediately, with a corresponding provision for an onerous contract.
| 2.6 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Statement of Comprehensive Income during the period in which they are incurred. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Page 18
Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026 2.Accounting policies (continued)
| 2.6 | Tangible fixed assets (continued)
Depreciation is provided on the following basis:
|  |  |  | Long-term leasehold property | - | Over the term of the lease
|  |  |  | Plant and machinery | - | 25% straight line
|  |  |  | Motor vehicles | - | From 2 to 8 years straight line
|  |  |  | Fixtures and fittings | - | 25% straight line
The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated Statement of Comprehensive Income.
| 2.7 | Operating leases: the Group as lessee
Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the period of the lease.
| 2.8 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment.
| 2.9 | Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
| 2.10 | Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
| 2.11 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Page 19
Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026 2.Accounting policies (continued)
| 2.12 | Financial instruments
The Group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans to and from related parties and investments in non-puttable ordinary shares. Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date. Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
| 2.13 | Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
| 2.14 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. Page 20
Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026 2.Accounting policies (continued)
| 2.15 | Pensions
Defined contribution pension plan The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. The contributions are recognised as an expense in the Income Statement when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds. Defined benefit pension plan The Group operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan. The liability recognised in the Statement of Financial Position in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the balance sheet date less the fair value of plan assets at the balance sheet date (if any) out of which the obligations are to be settled. The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate'). The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Group's policy for similarly held assets. This includes the use of appropriate valuation techniques. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'. The cost of the defined benefit plan, recognised in the Income Statement as employee costs, except where included in the cost of an asset, comprises: a) the increase in net pension benefit liability arising from employee service during the period; and b) the cost of plan introductions, benefit changes, curtailments and settlements. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in the Statement of Comprehensive Income as a 'finance expense'.
| 2.16 | Interest income
Interest income is recognised in profit or loss using the effective interest method.
| 2.17 | Borrowing costs
All borrowing costs are recognised in profit or loss in the year in which they are incurred. Page 21
Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026 2.Accounting policies (continued)
| 2.18 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss.
| 2.19 | Taxation
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and ∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date. Page 22
Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
Critical judgements in applying the Group's accounting policies The critical judgements that the directors have made in the process of applying the Group's accounting policies that have the most significant effect on the statutory financial statements are discussed below. Assessing indicators of impairment In assessing whether there have been any indicators or impairment assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairments identified during the current financial year. Key sources of estimation and uncertainty Provisions Provisions are liabilities of uncertain amount and therefore in making a reliable estimate of the quantum and timing of the liabilities judgement is applied and re-evaluated at each reporting date. The Group recognised provisions at 31 March 2026 of £1,087,000 (2025: £912,000). Defined benefit pension liability The Group uses assumptions in the calculation of the present value of the defined benefit scheme assets/liabilities. Recommendations are made by the scheme actuary and the directors review and consider these before approving the actuarial assumptions. At the year end, the value of the defined benefit pension asset was £17,000 (2025: £270,000).
4. | Turnover
| All turnover arose within the United Kingdom and relates to the principal activity of the Group.
5. | Operating profit
| The operating loss is stated after charging/(crediting):
|  |  |  |  | 2026 | 2025
|  |  |  |  | £000 | £000
| Depreciation of tangible fixed assets | 1,652 | 1,319
| (Profit)/loss on disposal | (117) | (149)
| Operating lease rentals | 265 | 259
Page 23
Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026
6. | Auditors' remuneration
| During the year, the Group paid the following fees for services for services provided by the Company's auditors:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £000 | £000
| Audit of the consolidated and parent Company's financial statements | 36 | 36
| Taxation compliance services | 5 | 5
| All other services | 4 | 4
7. | Employees
| Staff costs, including Directors' remuneration, were as follows:
|  | Group | Group
|  | 2026 | 2025
|  | £000 | £000
| Wages and salaries | 18,321 | 17,608
| Social security costs | 2,051 | 1,434
| Cost of defined benefit scheme | 1,077 | 1,336
| Cost of defined contribution scheme | 728 | 642
|  | 22,177 | 21,020
| The average monthly number of employees, including the Directors, during the year was as follows:
|  |  | Group | Group | Company | Company
|  |  | 2026 | 2025 | 2026 | 2025
|  |  | No. | No. | No. | No.
|  | Operations | 678 | 676 | 678 | 667
|  | Administration | 30 | 33 | 29 | 33
|  |  | 708 | 709 | 707 | 700
Page 24
Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026
8. | Directors' remuneration
|  |  |  |  | 2026 | 2025
|  |  |  |  | £000 | £000
| Directors' emoluments | 248 | 306
| Group contributions to defined contribution pension schemes | 47 | 65
|  | 295 | 371
| During the year retirement benefits were accruing to 3 Directors (2025 - 3) in respect of defined contribution pension schemes.
| The highest paid Director received remuneration of £137 thousand (2025 - £114 thousand).
| The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £20 thousand (2025 - £37 thousand).
9. | Interest payable and similar expenses
|  |  |  |  | 2026 | 2025
|  |  |  |  | £000 | £000
| Other loan interest payable | 327 | 244
10. | Other finance income/(costs)
|  |  |  |  | 2026 | As restated 2025
|  |  |  |  | £000 | £000
| Interest income on pension scheme assets | 4,120 | 4,330
| Net interest on net defined benefit liability | (4,095) | (3,908)
|  | 25 | 422
| Interest income on pension scheme assets includes a £3,366,000 (2025 as restated: £1,745,000) adjustment to reflect interest on the effect of the asset ceiling (see 'Prior year adjustment' Note 26).
Page 25
Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026
11. | Taxation
|  |  |  |  | 2026 | As restated 2025
|  |  |  |  | £000 | £000
| Corporation tax |  |
| Adjustments in respect of previous periods | (73) | -
| Total current tax | (73) | -
| Deferred tax |  |
| Total deferred tax | - | -
| Tax on profit | (73) | -
| Factors affecting tax charge for the year
| The tax assessed for the year is lower than (2025 - lower than) the standard rate of corporation tax in the UK of 25% (2025 - 25%). The differences are explained below:
|  |  |  |  | 2026 | As restated 2025
|  |  |  |  | £000 | £000
| Profit on ordinary activities before tax | 34 | 300
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2025 - 25%) | 9 | 75
| Effects of: |  |
| Utilisation of tax losses | - | (22)
| Fixed asset differences | (332) | (37)
| Defined benefit pension scheme timing differences | 11 | (21)
| Adjustments to tax charge in respect of prior periods | (73) | 28
| Changes in provisions leading to an increase (decrease) in the tax charge | (1) | -
| Unrelieved tax losses carried forward | 313 | -
| Other differences leading to a decrease in the tax charge | - | (23)
| Total tax charge for the year | (73) | -
| Factors that may affect future tax charges
The Group has losses available to offset against future corporation tax liabilities of approximately £5.4m (2025: £4.2m). A deferred tax asset has not been recognised on the basis that there is uncertainty over the timing of utilisation of tax losses. Page 26
Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026
12. | Tangible fixed assets
| Group
|  | Long-term leasehold property | Plant and machinery | Motor vehicles | Fixtures and fittings | Total
|  | £000 | £000 | £000 | £000 | £000
| Cost |  |  |  |  |
| At 1 April 2025 | 2,195 | 3,053 | 12,388 | 978 | 18,614
| Additions | - | 292 | 2,050 | 213 | 2,555
| Disposals | - | (4) | (2,428) | - | (2,432)
| At 31 March 2026 | 2,195 | 3,341 | 12,010 | 1,191 | 18,737
| Depreciation |  |  |  |  |
| At 1 April 2025 | 1,297 | 2,884 | 7,597 | 828 | 12,606
| Charge for the year | 86 | 85 | 1,421 | 60 | 1,652
| Disposals | - | (2) | (2,427) | - | (2,429)
| At 31 March 2026 | 1,383 | 2,967 | 6,591 | 888 | 11,829
| Net book value |  |  |  |  |
| At 31 March 2026 | 812 | 374 | 5,419 | 303 | 6,908
| At 31 March 2025 | 898 | 170 | 4,791 | 150 | 6,009
Page 27
Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026 12.Tangible fixed assets (continued)
| Company
|  | Long-term leasehold property | Plant and machinery | Motor vehicles | Fixtures and fittings | Total
|  | £000 | £000 | £000 | £000 | £000
| Cost |  |  |  |  |
| At 1 April 2025 | 2,195 | 2,670 | 12,388 | 978 | 18,231
| Additions | - | 292 | 2,050 | 213 | 2,555
| Disposals | - | (4) | (2,428) | - | (2,432)
| At 31 March 2026 | 2,195 | 2,958 | 12,010 | 1,191 | 18,354
| Depreciation |  |  |  |  |
| At 1 April 2025 | 1,297 | 2,501 | 7,597 | 828 | 12,223
| Charge for the year | 86 | 85 | 1,421 | 60 | 1,652
| Disposals | - | (2) | (2,427) | - | (2,429)
| At 31 March 2026 | 1,383 | 2,584 | 6,591 | 888 | 11,446
| Net book value |  |  |  |  |
| At 31 March 2026 | 812 | 374 | 5,419 | 303 | 6,908
| At 31 March 2025 | 898 | 170 | 4,791 | 150 | 6,009
Page 28
Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026
13. | Fixed asset investments
The Company holds a £1 investment in Waste Solutions SK Limited. The registered office of Waste Solutions SK Limited is Endeavour House, Bredbury Park Way, Bredbury, Stockport, SK6 2SN. This investments represents a 100% shareholding in the Ordinary shares of Waste Solutions SK Limited.
| Subsidiary undertaking
| The following was a subsidiary undertaking of the Company:
| Name | Registered office | Class of shares | Holding
| Waste Solutions SK Limited | Endeavour House, Bredbury Park Way, Bredbury, Stockport, SK6 2SN | Ordinary | 100%
14. | Stocks
|  | Group | Group | Company | Company
|  | 2026 | 2025 | 2026 | 2025
|  | £000 | £000 | £000 | £000
| Raw materials and consumables | 222 | 202 | 222 | 202
| The carrying value of stocks are stated net of impairment losses totalling £69,000 (2025 - £73,000).
Page 29
Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026
15. | Debtors
|  | Group | Group | Company | Company
|  | 2026 | 2025 | 2026 | 2025
|  | £000 | £000 | £000 | £000
| Trade debtors | 377 | 268 | 354 | 220
| Amounts owed by group undertakings | 582 | 327 | 667 | 404
| Other debtors | 33 | 15 | 33 | 15
| Prepayments and accrued income | 1,121 | 588 | 1,115 | 572
|  | 2,113 | 1,198 | 2,169 | 1,211
| Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
16. | Cash and cash equivalents
|  | Group | Group | Company | Company
|  | 2026 | 2025 | 2026 | 2025
|  | £000 | £000 | £000 | £000
| Cash at bank and in hand | 3,817 | 6,179 | 2,265 | 4,717
17. | Creditors: Amounts falling due within one year
|  | Group | Group | Company | Company
|  | 2026 | 2025 | 2026 | 2025
|  | £000 | £000 | £000 | £000
| Trade creditors | 2,550 | 2,143 | 2,550 | 2,138
| Amounts owed to group undertakings | 3,864 | 3,048 | 3,832 | 2,961
| Other taxation and social security | 609 | 582 | 594 | 565
| Other creditors | 11 | 9 | - | -
| Accruals and deferred income | 691 | 750 | 688 | 746
|  | 7,725 | 6,532 | 7,664 | 6,410
| Amounts owed to group undertakings are unsecured, interest free and repayable on demand, except as detailed in note 19.
Page 30
Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026
18. | Creditors: Amounts falling due after more than one year
|  | Group | Group | Company | Company
|  | 2026 | 2025 | 2026 | 2025
|  | £000 | £000 | £000 | £000
| Amounts owed to group undertakings | 3,955 | 6,006 | 3,955 | 6,006
Amounts owed to group undertakings are unsecured, interest free and repayable on demand, except as detailed in note 19.
19. | Loans
|  | Group | Group | Company | Company
|  | 2026 | 2025 | 2026 | 2025
|  | £000 | £000 | £000 | £000
| Amounts falling due in less than one year | 2,619 | 2,572 | 2,619 | 2,572
| Amounts falling due in one to two years | 984 | 2,524 | 984 | 2,524
| Amounts falling due in two to five years | 2,478 | 2,880 | 2,478 | 2,880
| Amounts falling due in over five years | 493 | 602 | 493 | 602
| Total loans | 6,574 | 8,578 | 6,574 | 8,578
| All outstanding loans of the Group and Company are repayable to Stockport MBC, the ultimate parent of the Group and Company. The loans comprise two clear groups: To fund the specific purchase of fixed assets for the business and historical loans drawn down in 2011 and 2012 to fund the long term development of the Group and Company. Interest rates on these loans are based on the Borrowing rate for Local Authorities and are fixed at the point of drawdown on each loan. Interest rates vary between 1.13% and 5.69%. At 31 March 2026, the total amount due on all long term loans was £6,574,000 (2025: £8,578,000), of which £2,619,000 (2025: £2,572,000) was due for repayment within one year and is included in creditors due in less than one year.
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Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026
20. | Provisions
| Group and Company
|  | Employee related provisions | Total
|  | £000 | £000
| At 1 April 2025 | 912 | 912
| Charged to profit or loss | 175 | 175
| At 31 March 2026 | 1,087 | 1,087
The provision for employee related provisions comprises several individual provisions for varied employment issues, the outcome of which is uncertain. All of the Group's provisions are held in the parent company.
21. | Share capital
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 2 (2025 - 2) Ordinary shares of £1.00 each | 2 | 2
22. | Reserves
Profit and loss account This reserve represents the cumulative profits and losses of the Group. Page 32
Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026
23. | Pension commitments
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £728,000 (2025: £642,000). Contributions totalling £Nil (2025: £Nil) were payable to the fund at the reporting date. The Group operates a Defined Benefit Pension Scheme. The assets of the defined scheme are held separately from those of the Group and administered independently. The only liability to the Group is the employer contributions payable by the Group and these are included in the Statement of Comprehensive Income. The Group joined the Greater Manchester Pension Fund, administered by Tameside Metropolitan Borough Council on 1 November 2006 with its employees transferring from Stockport Metropolitan Borough Council. The latest full triennial valuation of the fund was as at 31 March 2025. At 31 March 2026, the scheme's actuary undertook the annual review of the scheme and his calculations are reflected below. The valuation method used is the projected unit credit method. The Group won the tender for three local schools during the year ended 31 March 2026 and took on additional employees as a result. The Group instructed the Actuary to undertake pension expense calculations in relation to the additional schemes, to comply with FRS 102. Pension expense calculations have been performed by the Actuary at 31 March 2026, and these confirm that the additional schemes brought in an obligation totalling £239k associated with the new schools, which is immaterial. This amount has been accounted for within Actuarial gains/losses in reserves (Other comprehensive income), and movements between the point of acquisition and the year end date have been accounted for through Profit and loss and Other comprehensive income as necessary.
| Reconciliation of present value of plan liabilities:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £000 | £000
| Reconciliation of present value of plan liabilities |  |
| At the beginning of the year | 71,228 | 81,155
| Current service cost | 860 | 1,177
| Interest income | 4,095 | 3,908
| Actuarial (gains)/losses | 3,767 | (12,746)
| Contributions | 344 | 361
| Benefits paid | (3,187) | (2,786)
| Past service cost | - | 159
| Settlements | (297) | -
| At the end of the year | 76,810 | 71,228
Page 33
Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026 23.Pension commitments (continued)
| Reconciliation of present value of plan assets:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £000 | £000
| At the beginning of the year | 129,567 | 126,035
| Interest income | 7,486 | 6,075
| Actuarial gains/(losses) | 1,791 | (1,186)
| Contributions | 1,349 | 1,429
| Benefits paid | (3,187) | (2,786)
| Settlements | (514) | -
| At the end of the year | 136,492 | 129,567
| Composition of plan assets:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £000 | £000
| Equities | 88,720 | 84,219
| Bonds | 23,204 | 22,026
| Property | 12,284 | 11,661
| Cash | 12,284 | 11,661
| Total plan assets | 136,492 | 129,567
|  |  |  |  | 2026 | 2025
|  |  |  |  | £000 | £000
| Fair value of plan assets | 136,492 | 129,567
| Present value of plan liabilities | (76,810) | (71,228)
| Surplus not recognised | (59,665) | (58,069)
| Net pension scheme asset | 17 | 270
| The plan has a gross surplus at the reporting date of £59,682,000 (2025: £58,339,000) and the Group has recognised a plan asset in the balance sheet to the extent that it is able to recover the surplus either through reduced contributions in the future, or through refunds from the plan. The plan surplus ('asset ceiling') has been calculated by the scheme Actuary to be £17,000 (2025: £270,000) and surplus totalling £59,665,000 (2025: £58,069,000) has not been recognised in the balance sheet as a result.
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Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026 23.Pension commitments (continued)
| The amounts recognised in profit or loss are as follows:
|  |  |  |  | 2026 | As restated 2025
|  |  |  |  | £000 | £000
| Current service cost | (860) | (1,177)
| Past service cost | - | (159)
| Settlements | (217) | -
| Interest on pension scheme liabilities | (4,095) | (3,908)
| Interest income on plan assets | 4,120 | 4,330
| Total | (1,052) | (914)
| The cumulative amount of actuarial gains and losses recognised in the Consolidated Statement of Comprehensive Income was £(205,000) (2025 - £(10,417,000)).
| The Group expects to contribute £812,000 to its Defined Benefit Pension Scheme in 2027.
| Principal actuarial assumptions at the reporting date (expressed as weighted averages):
|  | 2026 | 2025
|  | % | %
| Discount rate | 6.18 | 5.80
| Future salary increases | 4.25 | 3.55
| Future pension increases | 2.93 | 2.75
| Mortality rates |  |
| - for a male aged 65 now | 20.39 | 19.8
| - at 65 for a male aged 45 now | 21.51 | 20.5
| - for a female aged 65 now | 23.24 | 23.4
| - at 65 for a female member aged 45 now | 20.39 | 24.8
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Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026 23.Pension commitments (continued)
| Amounts for the current and previous four periods are as follows:
| Defined benefit pension schemes
|  | 2026 | 2025 | 2024 | 2023 | 2022
|  | £000 | £000 | £000 | £000 | £000
| Defined benefit obligation | (76,810) | (71,228) | (81,155) | (80,809) | (112,759)
| Scheme assets | 136,492 | 129,567 | 126,035 | 118,685 | 113,156
| Cumulative asset restriction | (59,665) | (58,069) | (36,092) | (36,130) | -
| Surplus | 17 | 270 | 8,788 | 1,746 | 397
| Experience adjustments on scheme liabilities | (3,767) | 12,746 | (2,321) | (35,798) | (8,866)
| Experience adjustments on scheme assets | 1,791 | (1,186) | (3,131) | (3,131) | (8,012)
|  | (1,976) | 11,560 | (5,452) | (38,929) | (16,878)
| The plan has a gross surplus at the reporting date of £59,682,000 (2025: £58,339,000) and the Group has recognised a plan asset in the balance sheet to the extent that it is able to recover the surplus either through reduced contributions in the future, or through refunds from the plan. The plan surplus ('asset ceiling') has been calculated by the scheme Actuary to be £17,000 (2025: £270,000) and surplus totalling £59,665,000 (2025: £58,069,000) has not been recognised in the balance sheet as a result.
24. | Capital commitments
At 31 March 2026, the Group and Company had capital commitments totalling £2,728k (2025: £3,678k) contracted for but not provided in these financial statements.
25. | Commitments under operating leases
| At 31 March 2026 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  | Group | Group | Company | Company
|  | 2026 | 2025 | 2026 | 2025
|  | £000 | £000 | £000 | £000
| Not later than 1 year | 21 | 23 | 21 | 23
Page 36
Totally Local Company Limited Notes to the Financial Statements For the Year Ended 31 March 2026
26. | Prior year adjustment
As set out in Note 23, the Group and Company recognise a plan asset on the defined benefit pension scheme only to the extent that it is able to recover the surplus either through reduced contributions in the future, or through refunds from the plan. In the prior year financial statements, £1,745,000 interest on the effect of the asset ceiling restriction was classified as a movement in actuarial losses, as part of Other comprehensive income within reserves. This asset ceiling adjustment should have been accounted for in the profit and loss account as a reduction in interest income. A £390,000 deferred tax liability was also accounted for in the prior year financial statements, based on timing differences associated with depreciation on tangible fixed assets and capital allowances, and also taking into account the value of tax losses carried forward. In these financial statements, interest on the effect of the asset ceiling restriction has been classified as a reduction in interest income in the profit and loss account, and no deferred tax asset or liability has been accounted for. Prior year comparatives have been restated to reflect the treatment of interest on the effect of the asset ceiling as a cost impacting profit and loss. Deferred tax at 31 March 2025 has been recalculated as being £nil based on the restated Profit and loss and Balance sheet, and the prior year adjustment ensures that the restated balance sheet at 31 March 2025 reflects this. The net impact of the prior year adjustment is a £390,000 increase in the consolidated net assets of the Group, and the net assets of the Company, at 31 March 2025. Consolidated profit before tax for the year ended 31 March 2025 is £1,355,000 lower than previously stated, and the 'Pension surplus not recognised' through Other comprehensive income is £1,745,000 lower than previously stated.
27. | Related party transactions
| In preparing these financial statements, the directors have taken advantage of the exemptions available under section 33 paragraph 1A of the Financial Reporting Standard 102, and have not disclosed transactions entered into between wholly owned group undertakings.
28. | Controlling party
The Company is a subsidiary undertaking of Stockport Metropolitan Borough Council, which is the ultimate parent and controlling party. The results of the Group are consolidated in the larger Group headed by Stockport Metropolitan Borough Council. These consolidated financial statements are available to the public and may be obtained from Stockport Council, Town Hall, Edward Street, Stockport, SK1 3XE.
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