REGISTERED NUMBER: 01458946 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Period 1 January 2025 to 30 September 2025

for

SOWGA LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

T Robinson

S Barron

J Clarke

REGISTERED OFFICE:

Preston Park House

South Road

Brighton

East Sussex

BN1 6SB

BUSINESS ADDRESS:

Units 1 & 2

Broomers Hill Park

Codmore Hill

Pulborough

West Sussex

RH20 2RY

REGISTERED NUMBER:

01458946 (England and Wales)

AUDITORS:

Feist Hedgethorne Limited

Statutory Auditors

Chartered Accountants

Preston Park House

South Road

Brighton

East Sussex

BN1 6SB

The directors present their strategic report for the period 1 January 2025 to 30 September 2025.

PRINCIPAL ACTIVITY

The principal activities of the company are the provision of Mechanical, Electrical, and Public Health systems maintenance and installation services within the UK facilities management market, with a core focus on the corporate real estate and the luxury residential property verticals.

OUR PURPOSE

Our purpose is helping our customers stay in control of the performance and compliance requirements of their properties. By combining our technical capabilities, use of technology, and high-quality service delivery we meet the core needs of our customers ensuring their properties are operating at their optimal efficiency, meeting all the required legislation, and by doing so providing their occupiers with great places to work.

Our success as a business depends on us delivering to our purpose consistently but not complacently. We are focused on the continuous improvement of our service delivery to ensure we can provide our customers with an overall experience that not only meets their needs but exceeds their expectations.

REVIEW OF BUSINESS

The results for the period and the financial position are shown in the annexed financial statements.

Following the implementation of our strategic plan the company has continued its revenue growth during the period ending 30 September 2025 achieving a 18% increase in revenue growth, using a pro-rated basis.

The financial year was shortened to 9 months to align with the parent company's year end, for this reason the figures are not entirely comparable to the year ended 31 December 2024.

The key financial highlights are as follows:

Period ending 30.09.25

Year ended 31.12.24

£

£

Turnover

18,361,602

20,708,164

Gross profit

3,814,460

5,189,167

Profit before taxation

342,789

931,729

Gross profit %

20.8%

25.06%

Profit before taxation %

1.9%

4.5%

Revenue growth has been achieved through the development of existing long-term, strong and trusted customer relationships, along with the acquisition of new customers, underpinned by continuous improvements in operational and commercial activities, business systems, and processes.

Operating profit for the year has been reduced by the expensing of exceptional items amounting to £498,341. The majority of these costs relate to a one-off bad debt arising on a project completed during the year, resulting in a write-off of £449,855. Management considers these items to be non-recurring in nature and not reflective of the underlying trading performance of the business

PRINCIPAL RISKS AND UNCERTAINTIES

There are several risks and uncertainties that can impact the performance of the company, some of which are beyond the control of its board.

The key risks and uncertainties facing the company are outlined below.

Economic Risk

Adverse changes in the UK economy negatively affecting the market and verticals in which we operate.

Economic risks are monitored and analysed to ensure we are aware of their potential impact should they arise. Understanding the impact of economic risks on our customers helps us to define strategies to help mitigate any serious issues. Cost management and debt management are key strategies in managing economic risk.

Commercial Risk

The principal risk affecting the company is sales performance and retention of market share to enable the company to continue to generate and grow revenue in future years.

Customers disposing of properties, or no longer managing properties, resulting in the termination of contracts or customer losses through the end of fixed term contract re-tender processes are the main risks to sales performance.

Our commercial risks are mitigated through ensuring the company provides excellent service delivery, and maintains a strong and trusted relationship with our customers. This reduces the likelihood of customers wishing to change service provider. In the event of an asset disposal or management change, we want our customers to continue to recommend our services.

Employee Retention

The main risk here being the importance of retaining key personnel, and the importance of being able to recruit new talent when it is required, in what is a very challenging employment market in our industry. Wage growth has been higher than inflation, meaning we have needed to find the balance between providing our employees with attractive and competitive remuneration packages, whilst also ensuring our pricing structures are competitive, offering value for money to our customers, but also able to return profits for the company.

Staff are frequently targeted by our competitors on the promise of inflated salaries, and when recruiting new talent, salary expectations are ever increasing. To mitigate these issues, we ensure we can offer not just very competitive salaries, but other perks and benefits we consider may not be being offered by our competitors, along with continuous investment and people training and development to fuel career growth. We also work on our company culture and EVP 'Employer Value Proposition' to make Sowga an attractive place to work.

Operational Risk

The main risk here being the importance of having robust technology systems and processes in place to ensure profitable, efficient, successful, and compliant service delivery along with maintaining the accuracy, safety, and security of company and customer data and information.

To mitigate this risk, we have invested and continue to invest in powerful technology which allows us to integrate the key operational, personnel, commercial, and financial functions of the business to optimise success and security for the company and its customers.

Our operational risks noted are managed through the development of a company culture of engagement, empowerment, accountability, and development, supported by robust business systems and processes.

Credit Risk

Credit risk is managed through an effective credit control process which ensures debt levels are as low as possible and cash levels are as high as possible.

FINANCIAL KEY PERFORMANCE INDICATORS (KPI'S)

The Directors have end-to-end business information and management systems in place to monitor and report on the financial performance of the business in detail. As such, the directors do not believe that it is necessary, or beneficial, to implement financial KPI's.

GOING CONCERN

The directors have a reasonable expectation that the company has adequate resources to continue in existence for the forseeable future.

The company therefore continues to adopt the going concern basis in preparing its financial statements.

FUTURE DEVELOPMENTS

We will continue to deliver on our purpose of helping our customers stay in control of the performance and compliance of their properties.

By focusing on staff development, we will continue to seek the improvement of our systems, processes, and service offering so that we are able to meet the needs of our customers now and in the future.

ON BEHALF OF THE BOARD:

S Barron - Director

24 June 2026

The directors present their report with the financial statements of the company for the period 1 January 2025 to 30 September 2025.

DIVIDENDS

The total distribution of dividends for the period ended 30 September 2025 will be £Nil (2024: £97,500).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

T Robinson

S Barron

Other changes in directors holding office are as follows:

J Clarke - appointed 19 March 2025

B Kenny - appointed 19 March 2025

B Kenny and A Guidice ceased to be directors after 30 September 2025 but prior to the date of this report.

B Kenny - resigned 01 October 2025

A Guidice - resigned 17 October 2025

POLITICAL DONATIONS AND EXPENDITURE

During the year the company made charitable donations of £1,610 (2024: £2,632). No political donations were made.

DIRECTORS INDEMNITIES

The company has made no qualifying third party indemnity provisions for the benefit of the Directors.

DISCLOSURE IN THE STRATEGIC REPORT

Certain matters required by regulation to be dealt with in the annual report have been dealt with in the Strategic Report rather than the Directors' Report. These include principle risks and uncertainties, going concern, future development and principal activity.

DIRECTORS' RESPONSIBILITIES STATEMENT

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Feist Hedgethorne Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S Barron - Director

24 June 2026

Opinion

We have audited the financial statements of Sowga Ltd (the 'company') for the period ended 30 September 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 September 2025 and of its profit for the period then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

-

obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;

-

inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

-

discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, and tax compliance regulations. We performed audit procedures to detect non-compliance which may have a material impact on the financial statements which included reviewing financial statement disclosures, inspecting correspondence where relevant authorities, and evaluating advice received from external tax advisors.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business.

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

Use of our report

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

Chris Morey (Senior Statutory Auditor)

for and on behalf of Feist Hedgethorne Limited

Statutory Auditors

Chartered Accountants

Preston Park House

South Road

Brighton

East Sussex

BN1 6SB

24 June 2026

TURNOVER

3

18,361,602

20,708,164

Cost of sales

(14,547,142

)

(15,518,997

)

GROSS PROFIT

3,814,460

5,189,167

Administrative expenses

(3,431,577

)

(4,226,438

)

OPERATING PROFIT

5

382,883

962,729

Interest receivable and similar income

7,531

26,780

390,414

989,509

Interest payable and similar expenses

7

(47,625

)

(57,780

)

PROFIT BEFORE TAXATION

342,789

931,729

Tax on profit

8

(91,807

)

(107,325

)

PROFIT FOR THE FINANCIAL PERIOD

250,982

824,404

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

250,982

824,404

FIXED ASSETS

Tangible assets

10

478,064

659,989

CURRENT ASSETS

Stocks

11

16,000

16,000

Debtors

12

5,310,465

3,997,749

Cash at bank and in hand

641,423

1,991,695

5,967,888

6,005,444

CREDITORS

Amounts falling due within one year

13

(3,171,110

)

(3,358,104

)

NET CURRENT ASSETS

2,796,778

2,647,340

TOTAL ASSETS LESS CURRENT LIABILITIES

3,274,842

3,307,329

CREDITORS

Amounts falling due after more than one year

14

(209,637

)

(445,985

)

PROVISIONS FOR LIABILITIES

17

(107,586

)

(154,707

)

NET ASSETS

2,957,619

2,706,637

CAPITAL AND RESERVES

Called up share capital

18

30,000

30,000

Retained earnings

19

2,927,619

2,676,637

SHAREHOLDERS' FUNDS

2,957,619

2,706,637

The financial statements were approved by the Board of Directors and authorised for issue on 24 June 2026 and were signed on its behalf by:

S Barron - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

30,000

1,949,733

1,979,733

Changes in equity

Dividends

-

(97,500

)

(97,500

)

Total comprehensive income

-

824,404

824,404

Balance at 31 December 2024

30,000

2,676,637

2,706,637

Changes in equity

Total comprehensive income

-

250,982

250,982

Balance at 30 September 2025

30,000

2,927,619

2,957,619

Cash flows from operating activities

Cash generated from operations

1

(1,153,706

)

695,504

Interest paid

-

(69

)

Interest element of hire purchase payments paid

(47,625

)

(57,711

)

Tax paid

(43,029

)

(220,837

)

Net cash from operating activities

(1,244,360

)

416,887

Cash flows from investing activities

Purchase of tangible fixed assets

(26,590

)

(473,330

)

Sale of tangible fixed assets

98,993

47,531

Interest received

7,531

26,780

Net cash from investing activities

79,934

(399,019

)

Cash flows from financing activities

Capital repayments in year

(185,846

)

188,211

Amount introduced by directors

-

214,540

Equity dividends paid

-

(97,500

)

Net cash from financing activities

(185,846

)

305,251

(Decrease)/increase in cash and cash equivalents

(1,350,272

)

323,119

Cash and cash equivalents at beginning of period

2

1,991,695

1,668,576

Cash and cash equivalents at end of period

2

641,423

1,991,695

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

Period

1.1.25

to

Year Ended

30.9.25

31.12.24

£

£

Profit before taxation

342,789

931,729

Depreciation charges

118,541

190,480

(Profit)/loss on disposal of fixed assets

(9,360

)

15,249

Finance costs

47,625

57,780

Finance income

(7,531

)

(26,780

)

492,064

1,168,458

Increase in trade and other debtors

(1,312,718

)

(1,236,018

)

(Decrease)/increase in trade and other creditors

(333,052

)

763,064

Cash generated from operations

(1,153,706

)

695,504

2.	CASH AND CASH EQUIVALENTS

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

Period ended 30 September 2025

30.9.25

1.1.25

£

£

Cash and cash equivalents

641,423

1,991,695

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,991,695

1,668,576

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.1.25

Cash flow

At 30.9.25

£

£

£

Net cash

Cash at bank and in hand

1,991,695

(1,350,272

)

641,423

1,991,695

(1,350,272

)

641,423

Debt

Finance leases

(573,810

)

185,846

(387,964

)

(573,810

)

185,846

(387,964

)

Total

1,417,885

(1,164,426

)

253,459

1.	STATUTORY INFORMATION

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

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

Amounts in these financial statements are rounded to the nearest Pound (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements and estimates and these estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The items in the financial statements where these judgements and estimates have been made include the useful economic life of tangible fixed assets, the depreciation of these assets and recoverability of debtors.

Key sources of estimation uncertainty:

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are depreciated over the approved depreciation rates. The carrying amount of tangible fixed assets is £478,064 (2024: £659,989) as noted in note 10.

The recoverability of trade debtors is a key source of estimation uncertainty because it depends on the assessment of customers' ability to settle outstanding balances. The actual amounts collected may differ from those estimates.

No significant judgements have been made by management in preparing these financial statements.

Turnover

Service contracts

Revenue derived from service contracts is recognised in equal instalments, over the term of the contract based on the contractual terms.

Project work

Project revenue is derived from one-off works and is invoiced as the work progresses. The overarching contract price is agreed before the work commences and is billed in stages to reflect the value of the work performed to date.

Revenue for work that has been completed but not yet billed is included in debtors as accrued income and turnover in the Statement of Comprehensive Income.

Service extra works

Service extra works consists of ad-hoc work, which is generally in excess of the work agreed for those customers with service contracts. Bills are issued when the work is completed.

Revenue for work that has been completed but not yet billed is included in debtors as accrued income and turnover in the Statement of Comprehensive Income.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended by management.

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

Plant & machinery

-

25% on reducing balance

Fixtures & fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Impairment policy

At each balance sheet date, the company reviews the carrying amount of its assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any.

Stocks

Stock is stated at the lower of cost and estimated selling price less costs to complete and sell.

Cost comprises purchase price and directly attributable costs incurred in bringing the stock to its present location and condition.

Net realisable value is assessed at each reporting date. Provision is made for slow-moving, obsolete or damaged stock where the carrying value exceeds its expected recoverable amount, based on management's best estimate of future sales and conditions.

Financial instruments

Financial liabilities, financial assets 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 entity after deducting all of its financial liabilities.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

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

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

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

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 the Profit and Loss Account 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.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

3.

TURNOVER

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

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

Period

1.1.25

to

Year Ended

30.9.25

31.12.24

£

£

Service contracts

8,408,732

10,259,622

Project work

3,207,520

3,727,482

Service extra works

6,745,350

6,721,060

18,361,602

20,708,164

4.	EMPLOYEES AND DIRECTORS

Period

1.1.25

to

Year Ended

30.9.25

31.12.24

£

£

Wages and salaries

6,360,184

6,925,275

Social security costs

860,633

845,250

Other pension costs

240,236

331,532

7,461,053

8,102,057

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

Period

1.1.25

to

Year Ended

30.9.25

31.12.24

Operational and administration

163

145

Period

1.1.25

to

Year Ended

30.9.25

31.12.24

£

£

Directors' remuneration

303,750

947,449

Directors' pension contributions to money purchase schemes

30,030

111,936

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

Money purchase schemes

5

6

Information regarding the highest paid director is as follows:

Period

1.1.25

to

Year Ended

30.9.25

31.12.24

£

£

Emoluments etc

121,365

372,727

Pension contributions to money purchase schemes

17,250

7,270

5.	OPERATING PROFIT

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

Period

1.1.25

to

Year Ended

30.9.25

31.12.24

£

£

Hire of plant & machinery

85,727

55,829

Other operating leases

118,945

124,327

Depreciation - owned assets

65,050

74,912

Depreciation - assets on hire purchase contracts

53,495

115,568

(Profit)/loss on disposal of fixed assets

(9,360

)

15,249

Auditors' remuneration

9,095

12,091

Exceptional items (Note 6)

498,341

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