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Registered number: 09070750 PARETO FACILITIES MANAGEMENT LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
PARETO FACILITIES MANAGEMENT LIMITED COMPANY INFORMATION
Directors | Mr D Richards (resigned 14 October 2024)
| Mr J Clarke
| Mr B Kenny (appointed 19 March 2025, resigned 1 October 2025)
| Mr C Kimber (appointed 14 October 2024)
Registered number | 09070750
Registered office | 193-197 High Holborn
| Holborn Town Hall
| London
| England
| WC1V 7BD
Independent auditor | James Cowper Kreston Audit
| Chartered Accountants and Statutory Auditor
| 201 Cumnor Hill
| Cumnor
| Oxford
| Oxfordshire
| OX2 9PJ
PARETO FACILITIES MANAGEMENT LIMITED CONTENTS
| Page
Strategic report | 1 - 4
Directors' report | 5 - 7
Directors' responsibilities statement | 8
Independent auditor's report | 9 - 11
Statement of comprehensive income | 12
Balance sheet | 13
Statement of changes in equity | 14
Notes to the financial statements | 15 - 32
PARETO FACILITIES MANAGEMENT LIMITED STRATEGIC REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2025
Introduction
The Directors present their report and the financial statements for the year ended 30 September 2025.
Business review
Pareto Facilities Management Limited (hereafter "the Company" or "Pareto") is a facilities services provider predominantly servicing high end commercial office space, museums and public attractions. The Company delivers technical, mechanical and electrical facilities services and workspace solutions to its clients. Where it is beneficial to the client and the operation of the contract it will also provide a managed service for a range of other facilities services including front of house, cleaning, and security. These services are delivered through a combination of in-house resources and outsourced contractors. The business is based in the UK, however, it has operations in a few international locations, mostly European, where it services customers who already have operations in the UK. Revenue decreased by 3.5% year on year from £44.6m to £43m. This decrease was the result of the loss of two significant customers in the first half of the financial year which was not fully offset by new contract wins which started later in the second half of the year. Momentum in new sales, particularly in the second half of the year, resulted in second half revenues which were stronger than the first half and means the business is carrying good revenue growth momentum into the next financial year. EBITDA before exceptionals reduced year on year by £2m to £1.7m from £3.7m reflecting the additional investment in overheads, mainly people, reflecting the need to invest ahead of the growth curve and ambition of the business. This investment has been necessary to ensure there are solid foundations in capability and capacity to win, mobilise and run the number of anticipated new contracts either already won or in the sales pipeline and anticipated to be won. In addition to this investment, the business also incurred a number of one-off exceptional costs which increased to £2.6m, up by £1.1m from £1.5m in the prior year. Most of this increase was in respect of transformation costs and M&A activities including abortive due diligence fees both legal and accounting, market intelligence reports, capital structuring reports and lending specialists. While this activity resulted in the one completed acquisition of Sowga Limited, there were several other potential targets which did not complete or did not meet our exacting criteria. As a result of the additional costs in overheads and the increased exceptional costs, the business reported an operating loss of £1.5m which was a reduction in profit of £3.1m from the prior year. Acquisition of Sowga Limited During the financial year, in December 2024 we announced the Company’s largest acquisition to date through the acquisition of Sowga Limited (“Sowga”), a specialist building and technical facilities management provider with revenues of more than £20m. The acquisition strengthens Pareto’s technical service delivery capabilities, broadens its client base, particularly within the commercial managed and tenanted office space within London and the Southeast and broadens the range of services it can self-deliver and offer to our customers. Integration activity has begun to bring the two businesses closer together and a number of new customers have been jointly won through the combined expertise and delivery capabilities of the Group. Retention of key customers There were several key customer retentions during the year, the largest of which was the retention of ASOS securing annual revenues in excess of £1m. This retention reflects not only the ability to win in the midst of the competitive landscape but reaffirms Pareto’s difference in approach to its people, customer collaboration and focus on the customer experience. The renewal also offers an opportunity to demonstrate our market leading proposition on energy efficiency through remote technologies and engineering to deliver a better working environment for ASOS colleagues as well as cost efficiencies through reduction in consumption. Page 1
PARETO FACILITIES MANAGEMENT LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025 Recognition and awards Growth and Market position During the year ended 30 September 2025, we have seen strong customer growth both in terms of new customers and growth within existing relationships, and recognition from within the marketplace. We were recognized as partners of expert services at the PFM awards, testament to our strong technical services competencies and cost reduction strategies within our partnerships. Pareto were awarded the accolade of Business of the Year at The Great British Industry 2025, highlighting positive impact on the economy. ESG and Innovation Our focus on ESG continued to be central throughout the year evidenced by Pareto being recognised with CSR Initiative of the Year at the FM Awards, testament to our continued commitment to sustainable partnerships. We also won the prestigious accolade of a Gold Green Apple in partnership with Cross Country Trains, a rare accolade and one of the UK's leading honors for environmental excellence. Social Value and Inclusivity Social Value and EDI remains a focus, with a newly created role of Culture and Engagement Director to ensure momentum, fulfilled by Colin Kimber. Colin has made a significant impact within the industry, also being named on the INvolve - The Inclusion People – Outstanding LGBTQ+ Executives Role Model List.
Principal risks and uncertainties
The key business risks are set out below. Risks are carefully considered by the board and mitigated appropriately. Market risk The principal market risk for the Company continues to be the future of the office workspace and how customers use their space. Many customers are beginning to mandate a return-to-office approach which is changing the demands on their spaces compared to the previous few years. As ever, the Company is well positioned to support clients in this transition thanks to our agile model that allows us to quickly and effectively respond to client needs. Our agility, recognised as a competitive advantage during the pandemic, continues to enable us to gain market share amid further workplace disruptions. Loss of customer risk The Company’s main risks and uncertainties are customer related, such as loss of a key customer. This is mitigated by delivering high quality services, typically through multiple year service contracts. Financial risk management Credit risk Credit risk is managed through appropriate credit checking of our customers and management of customer payments to ensure they are in line with contractual terms. Liquidity risk The Company seeks to manage risks to ensure sufficient liquidity is available to meet future needs and ensure loan repayments are made on time. The directors monitor cash flow regularly to identify any potential short-term funding issues early. The Company has structured term borrowing in place as well as access to additional revolving credit facilities should they be needed to manage short-term working capital requirements. Page 2
PARETO FACILITIES MANAGEMENT LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025 Currency risk The Company is exposed to foreign exchange risk in connection with its ongoing operating activities, which are transacted in British pounds and Euro. To help minimise foreign exchange risk, the Company operates bank accounts in these currencies.
Financial key performance indicators
One of the key indicators which is proactively managed is the business cash position, which the Company has comfortably managed throughout the year, with a cash balance as at 30 September 2025 of £796,976 (2024: £2,644,546). Other key indicators include revenue noted in the business review, which has decreased by 3.5% during the year reflecting the timing of contracts lost versus contracts which have been won later in the year. Gross profit has also decreased during the year and has decreased by 24.2% from £5.5m to £4.2m in line with the revenue decrease because of the timing of customer losses. EBITDA before exceptionals reduced by 54% year on year to £1.7m from £3.7m reflecting the additional investment in overheads, mainly people, reflecting the need to invest ahead of the growth curve and ambition of the business. This investment has been necessary to ensure there are solid foundations in capability and capacity to win, mobilise and run the number of anticipated new contracts either already won or in the sales pipeline and anticipated to be won.
Other key performance indicators
The Company also monitors a range of other performance indicators across Health and Safety including safety conversations, near miss reporting and reportable incidents to ensure the Company can identify any trends in accidents which could be avoided through training and awareness. Statistics on our employees, including leavers, joiners, gender and diversity, are also regularly monitored to support our commitment to a diverse and balanced workforce. Operationally we continually monitor our delivery service and where we are maintaining assets which require statutory compliance that we have maintained these to the required standards and ensuring that any follow-up remedial actions are closed out timely. No ratios have been included as the Company deem these to be commercially sensitive. Page 3
PARETO FACILITIES MANAGEMENT LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025
Directors' statement of compliance with duty to promote the success of the Company
The Board of Directors (the "Board") of the Company is fully aware of its duties under Section 172 of the Companies Act 2006 to act in a way that, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole. In fulfilling this duty, the Board has taken into consideration, amongst other things, the following factors: ∙Long-term consequences: The Board ensures that decisions consider the potential long-term impacts on the Company's sustainability and growth, rather than prioritizing short-term gains at the expense of future prospects. This involves a careful assessment of risks and opportunities related to market trends, technological developments, and other factors shaping the industry landscape. ∙Interests of employees: The Board recognizes the crucial role of employees in the company's success and strives to foster a positive and inclusive work environment. ∙Business relationships: The Board understands the importance of strong relationships with customers, suppliers and other stakeholders which foster trust and mutual benefit. ∙Impact on the community and environment: The Board is committed to operating responsibly and minimizing the negative impact the Company’s operations have. ∙Reputation for high standards of business conduct: The Board recognizes the value of maintaining a strong reputation and operates with integrity and ethical principles in all aspects of its business dealings. ∙Fairness between members: The Board ensures that decisions are made fairly and equitably between all members of the Company recognizing the importance of transparency and accountability. ∙The Board regularly reviews the Company’s performance against these factors and assess the effectiveness of its approach to stakeholder engagement and responsible business practices. The Board is confident that these measures contribute to the long-term success of the Company and benefit to its members as a whole. This report was approved by the board and signed on its behalf.
Mr J Clarke Director
Date: 26 February 2026
Page 4
PARETO FACILITIES MANAGEMENT LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2025 The Directors present their report and the financial statements for the year ended 30 September 2025.
Results and dividends
The loss for the year, after taxation, amounted to £1,453,275 (2024 - profit £1,441,706). No dividend was paid during the year (2024: Nil).
Directors
The Directors who served during the year were:
Mr D Richards (resigned 14 October 2024)
Mr J Clarke
Mr B Kenny (appointed 19 March 2025, resigned 1 October 2025)
Mr C Kimber (appointed 14 October 2024)
Future developments
The directors anticipate that the business environment will remain competitive, however the Group is in a good financial position and the business risks are being well managed. We will continue to focus on maintaining organic revenue growth through bidding and winning new contracts while retaining our existing customers. Following the change in ownership this is likely to be complemented by carefully considered acquisitions as the opportunity arises. These are likely to be in niches of our service offering that we either currently subcontract or do not offer, and this will continue to enhance the services quality for our customers. Through this careful and considered approach the directors are confident of the continued profitable success of the business. Page 5
PARETO FACILITIES MANAGEMENT LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025
Greenhouse gas emissions, energy consumption and energy efficiency action
At Pareto Facilities Management Limited, we recognise the importance of environmental stewardship and are committed to reducing our carbon footprint as part of our broader sustainability strategy. The Annual Energy and Carbon Report is a key component of our transparency and accountability initiatives, providing stakeholders with detailed insights into our energy consumption, greenhouse gas emissions, and the actions we are taking to enhance energy efficiency. By sharing this information, we aim to demonstrate our commitment to responsible energy management and our progress toward achieving our sustainability goals. In this report, we present a comprehensive overview of our energy consumption across various sources, including electricity and natural gas. We also provide a detailed account of our greenhouse gas emissions, categorized by scope, and highlight the energy efficiency measures we have implemented over the reporting period. The Company's greenhouse gas emissions and energy consumption are as follows:
|  |  |  | 2025 | 2024
Emissions resulting from activities for which the Company is responsible involving the combustion of gas or consumption of fuel for the purposes of transport (in tonnes of CO2 equivalent) | 22.08 | 20.64
Emissions resulting from the purchase of the electricity by the Company for its own use, including the purposes of transport (in tonnes of CO2 equivalent) | 1.46 | 1.36
Energy consumed from activities for which the Company is responsible involving the combustion of gas, or the consumption of fuel for the purposes of transport, and the annual quantity of energy consumed resulting from the purchase of electricity by the Company for its own use, including for the purposes of transport, in kWh | 113,845 | 106,397
Assumptions and Methodology The estimate is based on the certified emissions reported in the Planet Mark Certification Report for the period 1 October 2022 to 30 September 2023 (FY23), and an assumption that emissions will scale linearly with employee headcount. ∙Emissions are assumed to scale linearly with employee headcount ∙Per-employee emissions for scope 1 and scope 2 were calculated based on the 2022-23 data and applied to the average headcount for 2024-25. We used the latest conversion factors provided by the UK Department for Business, Energy & Industrial Strategy (BEIS) to convert energy consumption from kWh to CO2e. The specific factors applied are as follows: Electricity: 0.20705 kg CO2e/kWh Natural Gas: 0.20264 kg CO2e/kWh Formula Used: CO2e Emissions = Energy Consumption (kWh) x Emissions Factor (kg CO2e/kWh). Page 6
PARETO FACILITIES MANAGEMENT LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025 Energy Efficiency Actions ∙In order to continue our progress to achieving Net Zero, we have adopted the following carbon reduction targets: ∙Move from head office premises to shared workspace locations thus reducing head office emissions further. ∙Reduce commuter car usage by introducing cycle to work scheme. ∙Invest in a three-acre forest of 1600 trees in the UK to begin the long-term investment in carbon storage. ∙Where applicable, transition client site based vehicles to electric. ∙Partnering with Planet Mark to become certified in 2024 beginning the transition to Net Zero. Intensity Metrics In this section, we present the intensity metrics used to evaluate the efficiency and sustainability of our energy use and greenhouse gas (GHG) emissions. These metrics are crucial for assessing our performance relative to our operational scale and for benchmarking against industry standards. Below, we outline the key intensity metrics calculated for this report. Carbon Intensity: Carbon intensity measures the amount of CO2e emissions produced per employee. This metric helps us understand the carbon footprint of our economic activities. Carbon Intensity = 22,080 CO2e / 539 = 40.82 (2024: 40.95) CO2e per employee.
Disclosure of information to auditor
Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that: ∙so far as the Director is aware, there is no relevant audit information of which the Company's auditor is unaware, and ∙the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Post balance sheet events
There were no significant events affecting the Company since the year end.
Auditor
The auditor, James Cowper Kreston Audit, 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.
Mr J Clarke Director
Date: 26 February 2026
Page 7
PARETO FACILITIES MANAGEMENT LIMITED DIRECTORS' RESPONSIBILITIES STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2025 The Directors are responsible for preparing the Strategic report, the Directors' report 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 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 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 for the Company's financial statements and then apply them consistently; ∙make judgments and accounting estimates that are reasonable and prudent; ∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; ∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 8
PARETO FACILITIES MANAGEMENT LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PARETO FACILITIES MANAGEMENT LIMITED
Opinion
We have audited the financial statements of Pareto Facilities Management Limited (the 'Company') for the year ended 30 September 2025, which comprise the Statement of comprehensive income, the Balance sheet, the 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 Company's affairs as at 30 September 2025 and of its loss for the year then ended; ∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ∙have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company 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 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 other information comprises the information included in the Annual Report other than the financial statements and our Auditor's 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. Page 9
PARETO FACILITIES MANAGEMENT LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PARETO FACILITIES MANAGEMENT LIMITED (CONTINUED)
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit: ∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept, 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 Directors' responsibilities statement set out on page 8, 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 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. Page 10
PARETO FACILITIES MANAGEMENT LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PARETO FACILITIES MANAGEMENT LIMITED (CONTINUED)
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 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. The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows: ∙Enquiry of management and those charged with governance around actual and potential litigation and claims; ∙Enquiry of management and those charged with governance to identify any material instances of non-compliance with laws and regulations; ∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; ∙Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias. 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 Auditor's 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 Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed. James Pitt BA(Hons) BFP FCA (Senior Statutory Auditor) for and on behalf of James Cowper Kreston Audit Chartered Accountants and Statutory Auditor 201 Cumnor Hill Cumnor Oxford Oxfordshire OX2 9PJ 27 February 2026 Page 11
PARETO FACILITIES MANAGEMENT LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 SEPTEMBER 2025
| 2025 | 2024
Note | £ | £
Turnover | 4 | 43,010,475 | 44,611,291
Cost of sales |  | (38,419,571) | (39,119,087)
Exceptional cost of sales | 12 | (428,531) | -
Gross profit |  | 4,162,373 | 5,492,204
Administrative expenses |  | (3,548,275) | (2,490,969)
Exceptional administrative expenses | 12 | (2,170,571) | (1,480,486)
Operating (loss)/profit | 5 | (1,556,473) | 1,520,749
Interest receivable and similar income | 9 | 109,702 | 43,162
Interest payable and similar expenses |  | (162,833) | (109,820)
(Loss)/profit before tax |  | (1,609,604) | 1,454,091
Tax on (loss)/profit | 11 | 156,329 | (12,385)
(Loss)/profit for the financial year |  | (1,453,275) | 1,441,706
There were no recognised gains and losses for 2025 or 2024 other than those included in the statement of comprehensive income.
There was no other comprehensive income for 2025 (2024:£NIL).
The notes on pages 15 to 32 form part of these financial statements.
Page 12
PARETO FACILITIES MANAGEMENT LIMITED REGISTERED NUMBER: 09070750 BALANCE SHEET AS AT 30 SEPTEMBER 2025
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 13 |  | 2,285,341 |  | 2,802,283
Tangible assets | 14 |  | 126,774 |  | 194,448
Investments | 15 |  | 8,429,426 |  | -
|  |  | 10,841,541 |  | 2,996,731
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 16 | 13,666,665 |  | 14,105,918 |
Cash at bank and in hand | 17 | 796,976 |  | 2,644,546 |
|  | 14,463,641 |  | 16,750,464 |
Creditors: amounts falling due within one year | 18 | (19,992,439) |  | (13,004,765) |
Net current (liabilities)/assets |  |  | (5,528,798) |  | 3,745,699
Total assets less current liabilities |  |  | 5,312,743 |  | 6,742,430
Provisions for liabilities |  |  |  |  |
Deferred tax | 19 |  | (23,588) |  | -
Net assets |  |  | 5,289,155 |  | 6,742,430
Capital and reserves |  |  |  |  |
Called up share capital | 20 |  | 325 |  | 325
Share premium account | 21 |  | 99,800 |  | 99,800
Other reserves | 21 |  | (153,322) |  | (153,322)
Profit and loss account | 21 |  | 5,342,352 |  | 6,795,627
|  |  | 5,289,155 |  | 6,742,430
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
Mr J Clarke
Director
Date: 26 February 2026
The notes on pages 15 to 32 form part of these financial statements. Page 13
PARETO FACILITIES MANAGEMENT LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 SEPTEMBER 2025
| Called up share capital | Share premium account | Other reserves | Profit and loss account | Total equity
| £ | £ | £ | £ | £
At 1 October 2024 | 325 | 99,800 | (153,322) | 6,795,627 | 6,742,430
Loss for the year | - | - | - | (1,453,275) | (1,453,275)
At 30 September 2025 | 325 | 99,800 | (153,322) | 5,342,352 | 5,289,155
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 SEPTEMBER 2024
| Called up share capital | Share premium account | Other reserves | Profit and loss account | Total equity
| £ | £ | £ | £ | £
At 1 October 2023 | 325 | 99,800 | (153,322) | 5,353,921 | 5,300,724
Profit for the year | - | - | - | 1,441,706 | 1,441,706
At 30 September 2024 | 325 | 99,800 | (153,322) | 6,795,627 | 6,742,430
| The notes on pages 15 to 32 form part of these financial statements.
Page 14
PARETO FACILITIES MANAGEMENT LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
1. | General information
Pareto Facilities Management Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page. 2.Accounting policies
| 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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3). The following principal accounting policies have been applied:
| 2.2 | Financial Reporting Standard 102 - reduced disclosure exemptions
The 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 Juran Midco Limited as at 30 September 2025 and these financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ. Page 15
PARETO FACILITIES MANAGEMENT LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 2.Accounting policies (continued)
| 2.3 | Going concern
The Company has generated an EBITDA before exceptionals of £1,740,493 (2024: £3,685,484) during the year ended 30 September 2025, has net current liabilities as at 30 September 2025 of £5,528,798 (2024: net current assets of £3,745,699) and net assets of £5,289,155 (2024: £6,742,430). Forecasts have been prepared using what the directors consider to be reasonable assumptions relating to the Company’s financial performance, current financial position and existing financial resources for a period of a period of least 12 months from the signing of the financial statements which show the Company to have sufficient liquidity to meet its financial obligations as they fall due. The Company is reliant on group borrowings not being called in for repayment for a period of at least 12 months from the signing of the financial statements unless the Company has sufficient resources to do so. The Company has obtained confirmation that these borrowings will not be recalled unless there are sufficient financial resources to do so. The Group has bank borrowings subject to various covenants. During the year, the ultimate parent company invested £6 million of equity in the Group which was used to repay £4m of the bank borrowings and the facilities were amended. The forecasts prepared show that Group will meet its financial covenants for at least 12 months from the signing of the financial statements. The Group has considered the expected financial performance, current financial position, existing financial resources and compliance with borrowing covenants for a period of at least 12 months from the date of signing of the financial statements which show the Group and Company to be a going concern. Based on the above, The directors are of the opinion that the going concern principle is applicable and that the Company has the necessary resources to continue as a going concern for the foreseeable future.
| 2.4 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'. Page 16
PARETO FACILITIES MANAGEMENT LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 2.Accounting policies (continued)
| 2.5 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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 following criteria must also be met before revenue is recognised: Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: ∙the amount of revenue can be measured reliably; ∙it is probable that the Company will receive the consideration due under the contract; ∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and ∙the costs incurred and the costs to complete the contract can be measured reliably. When the outcome of the transaction involving the rendering of services cannot be estimated reliably, the Company recognises revenue only to the extent of the expenses recognised that it is probable will be recovered.
| 2.6 | Operating leases: the Company as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
| 2.7 | Government grants
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
| 2.8 | Interest income
Interest income is recognised in profit or loss using the effective interest method.
| 2.9 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.10 | Pensions
Defined contribution pension plan The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds. Page 17
PARETO FACILITIES MANAGEMENT LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 2.Accounting policies (continued)
| 2.11 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet 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; and ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. 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 balance sheet date.
| 2.12 | Exceptional items
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
| 2.13 | Intangible assets
Goodwill Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of comprehensive income over its useful economic life. Other intangible assets Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. Amortisation is provided on the following bases: Goodwill is amortised over its useful economic life which is deemed to be between 6 and 10 years. Page 18
PARETO FACILITIES MANAGEMENT LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 2.Accounting policies (continued)
| 2.14 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as follows. Depreciation is provided on the following basis:
|  |  |  | Plant and machinery | - | 25% | Reducing balance
|  |  |  | Motor vehicles | - | 25% | Reducing balance
|  |  |  | Computer equipment | - | 33% | 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 profit or loss.
| 2.15 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment. Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment. Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period. Contingent consideration Contingent consideration is initially recognised at an estimated amount where the consideration is probable and can be measured reliably. Where the contingent consideration is not considered probable or cannot be reliably measured but subsequently becomes probable and measurable or contingent consideration previously measured is adjusted, the amounts are recognised as an adjustment to the cost of the investment.
| 2.16 | 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.
| 2.17 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. Page 19
PARETO FACILITIES MANAGEMENT LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 2.Accounting policies (continued)
| 2.18 | 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.
| 2.19 | Holiday pay accrual
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.
| 2.20 | 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 charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance sheet. Page 20
PARETO FACILITIES MANAGEMENT LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 2.Accounting policies (continued)
| 2.21 | Financial instruments
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102. Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument. Basic financial assets Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Impairment of financial assets At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. Basic financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Page 21
PARETO FACILITIES MANAGEMENT LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 2.Accounting policies (continued)
| 2.21 | Financial instruments (continued)
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Derecognition of financial instruments Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled. Page 22
PARETO FACILITIES MANAGEMENT LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amount reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effects on amounts recognised in the financial statements. Principal Vs Agent Management has considered each sales contract and whether it is exposed to the significant risks and rewards associated with the rendering of services. Management consider the Company to be acting as a principal in relation to all sales contracts. Goodwill useful economics life Management recognised goodwill for the consideration paid in excess of the fair value of net assets acquired under the purchase method. Management have estimated the useful economic life to be 6 years based on their customer retention. Cost accruals Management has considered costs incurred but not invoiced at the year end in relation to the rendering of services. Management make an estimate of the expected costs to be invoiced based on the profit margins achieved on contracts. Contingent consideration Management has considered the contingent consideration payable in respect of the acquisition of Sowga Limited. Management do not consider any contingent consideration to be probable and therefore no liability has been recognised.
4. | Turnover
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Turnover | 43,010,475 | 44,611,291
|  | 43,010,475 | 44,611,291
Analysis of turnover by country of destination:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| United Kingdom | 39,269,027 | 41,071,677
| Rest of Europe | 3,704,645 | 3,512,261
| Rest of the world | 36,803 | 27,353
|  | 43,010,475 | 44,611,291
Page 23
PARETO FACILITIES MANAGEMENT LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
5. | Operating (loss)/profit
| The operating (loss)/profit is stated after charging:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Exchange differences | (69,248) | 9,511
| Depreciation | 76,076 | 72,685
| Amortisation | 621,788 | 611,564
6. | Auditor's remuneration
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Fees payable to the Company's auditor and its associates for the audit of the Company's financial statements | 26,000 | 25,000
| The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.
7. | Employees
| Staff costs, including Directors' remuneration, were as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Wages and salaries | 15,916,902 | 14,044,528
| Social security costs | 1,688,999 | 1,365,862
| Cost of defined contribution scheme | 377,788 | 383,284
|  | 17,983,689 | 15,793,674
| The average monthly number of employees, including the Directors, during the year was as follows:
|  |  | 2025 | 2024
|  |  | No. | No.
|  | Employees | 539 | 504
Page 24
PARETO FACILITIES MANAGEMENT LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
8. | Directors' remuneration
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Directors' emoluments | 419,575 | 369,546
| Company contributions to defined contribution pension schemes | 53,010 | 46,159
|  | 472,585 | 415,705
| During the year retirement benefits were accruing to 3 Directors (2024 - 3) in respect of defined contribution pension schemes.
| The highest paid Director received remuneration of £186,146 (2024 - £182,210).
| The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £26,507 (2024 - £20,127).
9. | Interest receivable
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Other interest receivable | 109,702 | 43,162
10. | Interest payable and similar expenses
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Loans from group undertakings | 162,833 | 109,820
|  | 162,833 | 109,820
Page 25
PARETO FACILITIES MANAGEMENT LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
11. | Taxation
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | - | 99,149
| Adjustments in respect of previous periods | (260,896) | 6,516
| Total current tax | (260,896) | 105,665
| Deferred tax |  |
| Origination and reversal of timing differences | 25,793 | (93,280)
| Adjustments in respect of prior periods | 78,774 | -
| Total deferred tax | 104,567 | (93,280)
|  | (156,329) | 12,385
| Factors affecting tax charge for the year
| The tax assessed for the year is lower than (2024 - lower than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| (Loss)/profit on ordinary activities before tax | (1,609,604) | 2,100,930
| (Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | (402,401) | 525,233
| Effects of: |  |
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 50,915 | 26,506
| Fixed asset differences | 152,677 | -
| Adjustments to tax charge in respect of prior periods | (171,000) | 6,516
| Losses carried back | 22,175 | -
| Adjustments in deferred tax charge in respect of prior periods | (11,122) | -
| Movement in deferred tax not recognised | 202,427 | -
| Group relief | - | (545,870)
| Total tax charge for the year | (156,329) | 12,385
| Factors that may affect future tax charges
There were no factors that may affect future tax charges. Page 26
PARETO FACILITIES MANAGEMENT LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
12. | Exceptional items
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bad debt expense | 97,832 | 96,911
| Business transformation costs | 2,337,914 | 984,959
| Acquisition related costs | 163,356 | 398,616
|  | 2,599,102 | 1,480,486
| The exceptional items relate to the ordinarily non-recurring profit and loss items which arise from the Group’s strategy of buying and building scale within the technical facilities engineering market. The will consist of a mixture of acquisition related activities including M&A due diligence costs of completed and abortive transactions, consulting across market intelligence, capital structuring and lending specialists, insight reports into potential targets, and restructuring costs relating to acquired businesses. Business transformation costs include staff and external contractor costs relating to business process improvement and internal reorganization to ensure the group continues to be at the leading edge of providing services to our customers. At the point the strategy is complete these costs would be expected to reduce to minimal levels and not be part of the recurring cost base. Included within the above is £428,531 (2024: Nil) relating to exceptional cost of sales for the business transformation costs. All remaining exceptional items are classified as administrative.
13. | Intangible assets
|  | Computer software | Goodwill | Total
|  | £ | £ | £
| Cost |  |  |
| At 1 October 2024 | - | 3,822,706 | 3,822,706
| Additions | 104,846 | - | 104,846
| At 30 September 2025 | 104,846 | 3,822,706 | 3,927,552
| Amortisation |  |  |
| At 1 October 2024 | - | 1,020,423 | 1,020,423
| Charge for the year on owned assets | 10,224 | 611,564 | 621,788
| At 30 September 2025 | 10,224 | 1,631,987 | 1,642,211
| Net book value |  |  |
| At 30 September 2025 | 94,622 | 2,190,719 | 2,285,341
| At 30 September 2024 | - | 2,802,283 | 2,802,283
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PARETO FACILITIES MANAGEMENT LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
14. | Tangible fixed assets
|  | Plant and machinery | Motor vehicles | Computer equipment | Total
|  | £ | £ | £ | £
| Cost or valuation |  |  |  |
| At 1 October 2024 | 68,116 | 71,424 | 133,865 | 273,405
| Additions | - | - | 8,402 | 8,402
| At 30 September 2025 | 68,116 | 71,424 | 142,267 | 281,807
| Depreciation |  |  |  |
| At 1 October 2024 | 18,027 | (1,941) | 62,871 | 78,957
| Charge for the year on owned assets | 12,522 | 18,341 | 45,213 | 76,076
| At 30 September 2025 | 30,549 | 16,400 | 108,084 | 155,033
| Net book value |  |  |  |
| At 30 September 2025 | 37,567 | 55,024 | 34,183 | 126,774
| At 30 September 2024 | 50,089 | 73,365 | 70,994 | 194,448
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PARETO FACILITIES MANAGEMENT LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
15. | Fixed asset investments
|  | Investments in subsidiary companies
|  | £
| Cost or valuation |
| Additions | 8,429,426
| At 30 September 2025 | 8,429,426
| Subsidiary undertaking
| The following was a subsidiary undertaking of the Company:
| Name | Registered office | Class of shares | Holding
| Sowga Limited | Preston Park House, South Road, Brighton, East Sussex, BN1 6SB | Ordinary | 100%
16. | Debtors
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade debtors | 5,134,375 | 7,493,959
| Amounts owed by group undertakings | 5,470,047 | 5,445,242
| Other debtors | 671,560 | 294,503
| Prepayments and accrued income | 2,390,683 | 791,235
| Deferred taxation | - | 80,979
|  | 13,666,665 | 14,105,918
| Amounts owed by group undertakings are non-interest bearing and repayable on demand.
17. | Cash and cash equivalents
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Cash at bank and in hand | 796,976 | 2,644,546
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PARETO FACILITIES MANAGEMENT LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
18. | Creditors: Amounts falling due within one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade creditors | 4,805,947 | 5,145,827
| Amounts owed to group undertakings | 11,624,042 | 3,673,819
| Corporation tax | - | 335,520
| Other taxation and social security | 1,480,252 | 1,589,527
| Other creditors | 442,058 | 390,715
| Accruals and deferred income | 1,640,140 | 1,869,357
|  | 19,992,439 | 13,004,765
| Included in amounts owed to group undertakings is £1,186,085 (2024: £1,277,779) in which interest is charged at 11% per annum. All other owed to group undertakings are non-interest bearing and repayable on demand.
19. | Deferred taxation
|  | 2025 | 2024
|  | £ | £
| At beginning of year | 80,979 | (12,301)
| Charged to profit or loss | (104,567) | 93,280
| At end of year | (23,588) | 80,979
| The deferred taxation balance is made up as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Accelerated capital allowances | (44,795) | 55,474
| Short term timing differences | 18,714 | 25,505
| Losses and other deductions | 2,493 | -
|  | (23,588) | 80,979
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PARETO FACILITIES MANAGEMENT LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
20. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 100 (2024 - 100) Ordinary A shares of £1.00 each | 100 | 100
|  | 100 (2024 - 100) Ordinary B shares of £1.00 each | 100 | 100
|  | 100 (2024 - 100) Ordinary C shares of £1.00 each | 100 | 100
|  | 25 (2024 - 25) Ordinary D shares of £1.00 each | 25 | 25
|  |  | 325 | 325
21. | Reserves
Share premium account Share premium is the amount received for share capital in excess of their nominal value. Other reserves Other reserves reflects the goodwill amortisation that would have been accounted for had the hive up of Support Maintenance Services Limited during the year ended 30 September 2023 occurred immediately upon acquisition, in accordance with merger accounting principles. Profit and loss account The profit and loss account is a Company's accumulated profits up to the date of the balance sheet.
22. | Pension commitments
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £377,788 (2024 - £360,734). Contributions totalling £153,418 (2024 - £204,035) were payable to the fund at the balance sheet date and are included in creditors.
23. | Commitments under operating leases
| At 30 September 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Not later than 1 year | 242,294 | 128,759
| Later than 1 year and not later than 5 years | 461,985 | 126,671
|  | 704,279 | 255,430
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PARETO FACILITIES MANAGEMENT LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
24. | Related party transactions
| The Company has taken advantage of the exemption under section 33 of FRS 102 not to disclose transactions with wholly owned group companies.
25. | Post balance sheet events
There are no post balance sheet events to disclose.
26. | Controlling party
In the opinion of the directors, the directors believe the ultimate controlling party is Pictet Private Equity Feeder Fund, SICAV-RAIF, incorporated in Luxembourg. The registered office is Avenue J.F. Kennedy 15a, Lucembourg, 1855, Luxembourg. The largest and smallest group in which the results of the Company are consolidated is that headed by Juran Midco Limited, incorporated in Great Britain. The consolidated accounts of this Company are available to the public and can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ. No other group accounts include the results of the Company.
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