The directors present the strategic report for the year ended 31 December 2025.

The Westgrove group of companies are established, innovative and independent cleaning, security and dual service providers.

There have not been any significant changes to the group's or company’s principal activities during the year under review. The Directors are not aware, at the date of this report, of any likely changes to the principal activities in the next year.

2025 has been a successful year with increases in turnover of 9.6% to over £33.9m, (2024: £30.9m). The core activity continues to be the provision of staffing services, delivering a sustainable, quality service. The directors continue to focus on turnover growth and maintaining profitability levels and are confident that growth will be achieved from continually seeking to increase market share, maintaining existing contracts and customers, in addition to securing new opportunities.

In order to implement the above, a new Strategic Leadership Team headed up by G Wilson (MD) and C McKinley-Smith (CEO) are developing high level relationships, which is contributing to enhanced turnover and profitability in 2025.

Despite inflationary pressures and the difficulties in winning new work the group has seen a slight improvement in G.P margins to 11.9% (2024: 11.4%). This level of profitability has been sustained following the year end.

Administrative costs have increased when compared to the prior year due to global cost increases, though the impact has been minimised due to close and effective cost controls.

The group has recognised the difficulties in winning new work and the erosion of margins within the traditional market of shopping centres and retail parks. It is investing heavily within its senior team with a strategy to target more varied sectors , specifically industrial and distribution sectors.

The year ended 31 December 2025 resulted in a group profit before tax of £674k (2024: £552k) which the directors are satisfied with, particularly considering the erosion of margins in traditional markets noted above.

At the year end, the group has net assets of £895k (2024: £741k). The directors are satisfied with the 2025 financial position and believes this places the company in a strong and stable financial position.

Westgrove provide industry leading solutions to both soft and technical services across retail, commercial and manufacturing, having a collaborative and flexible approach to help deliver our partner’s key Objectives. We pride ourselves on working closely with our partners to develop industry leading relationships and an unparalleled colleague centric culture. Our teams work closely with our partners to deliver a service which regularly exceeds expectations, our contract retention rate is unrivalled. Westgrove’s ESG approach is making a difference within our business, to our partners, colleagues and the communities we serve. We are conscious of our impact on the planet, it's people, colleagues, partners, and the prosperity of the communities with whom we work. We are committed to creating healthy, fair, equitable, vibrant, and safe working places and spaces and we collaborate on any initiatives that help to deliver Net Zero outcomes, social value, and equitable workplaces and systems

The directors have considered the exposure of the group to risks. The principal risks are interest rate risk, credit risk and liquidity risk.

Interest rate risk

The group is funded through its retained earnings and borrowings. The directors regularly monitor cash flow projections of the company in order to ensure that it has sufficient available funds for its continuing operations. The risk is managed by monitoring key ratios such as interest cover, as well as cash flow. The group does not use derivative financial instruments to manage this risk and, as such, no hedge accounting is applied.

Liquidity risk

The group seeks to manage financial risk by ensuring liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short-term flexibility is achieved by an invoice discounting facility.

Credit risk

The principal credit risk arises from the group's trade debtors.

The group has policies in place such that credit checks are made on all potential customers as part of the set new account procedures.

Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Foreign currency risk

The group is not exposed to any significant direct currency risk since there are no foreign subsidiaries or balances held in foreign locations, and all invoicing is in sterling.

Brexit

Following the UK leaving the European Union on 31 January 2020, the group recognise the increasing difficulty to

recruit directly employed staff and therefore are becoming more reliant on subcontract labour.

The group is committed to paying the living wages, however this along with price increases of materials and

consumables is having an adverse effect of the margins achievable.

The Directors have and will continue to monitor all of the KPI’s and daily operating controls and maintain a strong focus on increasing performance in all aspects of the business.

The main KPI’s and corresponding results are as follows:

The increased profitability has been explained in the review of business section.

The Westgrove Group have over 60 sites employing almost 1,000 site based staff, with class leading employee retention and staff benefits.

The group continues to operate with net current liabilities, primarily driven by deferred income balances; however, the directors remain satisfied that adequate resources are in place to support ongoing operations.

Net assets have increased due to profit retention in the group.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2025.

The principal activity of the company, continues to be that of a non-trading holding company.

The principal activity of the group, continues to be that of the provision of cleaning and support services.

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £341,053. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

The group focus on its core business is reflected in the systems, infrastructure, and investment in its staff in order to deliver an effective national service to all customers.

Future developments will involve focussing on growth that is complementary to our core business.

It is recognised by the directors of the Westgrove Group that the margins available within their traditional market sector of retail parks and shopping centres are being eroded. Therefore the Westgrove Group are looking at potential opportunities in other sectors  to utilise their specialist knowledge of ‘soft services‘ but have ventured into ‘hard services’ which will open up alternative markets with higher gross margins. This 'hard services' offering will also work hand in glove with the group's soft services and current partners.

The auditor, Sumer Auditco Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The directors are responsible for preparing the Annual 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 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• 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 group and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

In accordance with s414(c)(11) of the Companies Act, included in the strategic report is information relating to principal risks and uncertainties, which would otherwise be required by schedule 7 of the "Large and Medium Sized Company's (Accounts and Reports) Regulations 2008" to be contained in the directors report.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

We have audited the financial statements of Westgrove Group (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The 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.

Opinions on other matters prescribed by the Companies Act 2006

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

In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns; or

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

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

As explained more fully in the directors' responsibilities statement, 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, Westgrove Group (Holdings) Limited is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, Westgrove Group (Holdings) Limited is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the company's license to operate. We identified the following areas as those most likely to have such an effect: laws related to packaging recycling, controls of substances hazardous to health, and security.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:

• Matters are discussed amongst the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud

• Identifying and assessing the design and effectiveness of controls that management have in place to prevent and detect fraud

• Detecting and responding to the risks of fraud following discussions with management and enquiring as to whether management have knowledge of any actual, suspected or alleged fraud;

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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 parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £341,053 (2024 - £292,000 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Westgrove Group (Holdings) Limited (“the company”) is a private limited company and incorporated in England and Wales. The registered office is 940 Lakeside Drive, Centre Park, Warrington, WA1 1QY.

The group consists of Westgrove Group (Holdings) Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention, modified to include land and buildings at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

The consolidated group financial statements consist of the financial statements of the parent company Westgrove Group (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The directors recognise following Brexit there has been an increasing difficulty to recruit directly employed staff and therefore the group continues to be more reliant on subcontract labour. The group is committed to paying the living wage, however this along with price increases of materials and consumables is having an adverse effect on the margins achievable. The directors are continually monitoring the rising costs and are satisfied that they are taking all steps necessary to minimise cost increases.

At the year-end the group has net current liabilities of £1,327,324 (2024: £1,460,970). The directors have considered the future profitability of the group and its ability to continue as a going concern, and have prepared profit and cash flow forecasts for the period to 31 December 2027. Based on these projections and the items above, the directors are satisfied that, for the foreseeable future, the group can meet its projected working capital requirements. The group has access to some alternative finance facilities should this be required. Consequently, the financial statements have been prepared on a going concern basis.

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT.

The group recognises revenue from the following major sources:

· Security

· Cleaning

· Other

The nature, timing of satisfaction of performance obligations and significant payment terms of the group's major sources of revenue are as follows:

Security

Turnover related to the provision of security services is based on performance obligations of contracted work, related to the hours worked and services performed. Additional work performed is invoiced as adhoc recharges to the client, or underprovided work is credit noted.

Accrued income is recognised for services provided but not yet invoiced at the reporting date.

Cleaning

Turnover related to the provision of cleaning services is based on performance obligations of contracted work, related to the hours worked and services performed. Additional work performed is invoiced as adhoc recharges to the client, or underprovided work is credit noted.

Accrued income is recognised for services provided but not yet invoiced at the reporting date.

Other

Other income recognisable in the financial statements relates to adhoc recharges for work outside of the contract income for other services i.e. maintenance, events, or front of house. The income is recognised once all work is satisfied for the service being provided.

Accrued income is recognised for services provided but not yet invoiced at the reporting date.

Dividend income

Dividend income receivable by the company from subsidiary companies, is recognised in the period they are voted.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at cost less any provision for impairment.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred taxation is recognised in respect of all timing differences which have originated but not reversed at the balance sheet date. Timing differences are differences between taxable profits and the results as stated in the financial statements which arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised for tax purposes.

A net deferred tax asset is regarded as recoverable and therefore recognised only when it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of underlying timing differences can be deducted.

Deferred tax is measured at the average tax rates which are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws which have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tangible fixed assets includes freehold property that is recognised at fair value. The freehold property is professionally valued periodically. In the interim the directors assess the fair value of the freehold property to consider whether there has been a change in value, considering recently transacted similar properties in the area.

During the year, management performed an assessment over the valuation of land and buildings and noted that the carrying value of £1,175,758 (2024: £1,200,000) calculated based on accounting policies applied, is not materially different to the fair value of the property. The last professional valuation obtained was in January 2025. This valuation was performed by external valuers Morgan Williams Commercial LLP on the basis of market value.

During the year, no revaluation has been recognised (2024: £173,221).

Refer to note 14, showing the tangible fixed assets carrying values impacted by the key accounting estimate.

Tangible fixed assets are depreciated over their useful economic lives taking into account residual values, where appropriate. The actual lives of the tangible fixed assets and residual values are assessed annually and may vary depending on a number of factors. In reassessing asset lives, all relevant known factors are taken into account but there is inherent uncertainty present in making this assessment.

During the year a depreciation charge of £480,952 (2024: £303,300) was calculated based on accounting policies applied.

Refer to note 14, showing the tangible fixed assets carrying values impacted by the key accounting estimate.

A prior period adjustment has been processed to correct the accounting of the revaluation reserve and the associated deferred tax.

It was noted that historic transfers between the revaluation reserve and retained earnings were calculated incorrectly and excess transfers, reducing the revaluation reserve and increasing retained earnings, had been made, totalling £90,170. These have now been reversed as part of the prior year adjustment.

Additionally, deferred tax on the revaluation has been incorrectly recognised, both as part of the £92,507 prior year adjustment in 2024 (referenced below), as well as the £37,500 recognised on the revaluation in 2024. The indexation allowance on the historic cost of the property would elimate any gain on sale of property, and as such there is no deferred tax to recognise. The total deferred tax reversed by the prior year adjustment is £130,007.

Therefore the 2 above adjustments have increased the revaluation reserve by £220,177, decreased deferred tax by £130,007 and decreased retained earnings by £90,170.

The 2 above adjustments have had no effect on profit previously reported at 31 December 2024.

During the prior year, it was identified that no deferred tax provision has been calculated on the revaluation of land and buildings to fair value. An adjustment of £92,507 was posted to recognise the cumulative deferred tax provision brought forward from the last revaluation recognised in 2022.

This adjustment had no impact over net profit.

As noted above the calculation of the deferred tax was mis-calculated as indexation allowance was not taken into account, and as such this 2024 prior year adjustment has been reversed by the 2025 prior year adjustment.

A prior year adjustment has been processed to recognise the correction of the pension creditor value in the deferred tax figure at 31 December 2024.

The adjustment has increased the net profit and retained earnings for the year by £341, and has decreased the deferred tax liability by £341.

Although trivial, the adjustment has been made as part of the wider correction to deferred tax as per the notes above.

An analysis of the group's turnover is as follows:

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Land and buildings with a historical cost of £966,107 (2024: £966,107) were revalued at £1,200,000 on 17 January 2025 by Robert A Bates, MRICS, of Morgan Williams Commercial LLP, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The directors believe £1,175,758 represents a fair value as at 31 December 2025 (2024: £1,200,000), stated after depreciaton. Had the property not been revalued it would have been included at the following historical cost net book value:

Details of the company's subsidiaries at 31 December 2025 are as follows:

Registered office addresses (all UK unless otherwise indicated):

The subsidiary, Westgrove Cleaning Services Ltd, is exempt from audit under the provisions of s479a of the Companies Act 2006. Westgrove Group (Holdings) Limited, the ultimate parent company, has provided a guarantee for the liabilities of this company in connection with the financial period ended 31 December 2025.

Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.

Other creditors includes £591,975 (2024: £1,559,222) in respect of an invoice discounting facility, which is secured by a fixed charge over the book debts of the company.

Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

The deferred tax liability set out above, predominately relates to accelerated capital allowances that are expected to mature over the associated fixed assets useful economic life. Pension contributions will attract tax relief in the year paid.

The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £513,326 (2024: £457,124).

Contributions totalling £81,911 (2024: £86,350) were payable to the scheme at the year end and are included within creditors.

Called up share represents the nominal value of the shares issued. All shares carry no fixed right to income. Ordinary A and ordinary B shares hold full voting rights.

Called up share represents the nominal value of the shares issued. All shares carry no fixed right to income. Ordinary A and ordinary B shares hold full voting rights.

There is an unconditional and irrevocable guarantee in the favour of IGF Business Credit Limited dated 20 July 2022 given by Westgrove Support Services Limited, Westgrove Cleaning Services Limited and

Westgrove Group (Holdings) Limited. This contains a charge over the property held within the group. As at 31 December 2025, the total group liability stood at £591,975 (2024: £1,559,221).

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group

The group has taken advantage of the exemption available in Financial Reporting Standard (FRS) 102 "Related party disclosures" Section 33.1A whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.

During the year, a subsidiary made sales to a related company of £533,667 (2024: £417,380), and purchases of £Nil (2024: £Nil), related due to common directors. At the year end there was a balance of £42,803 (2024: £36,659) due to the group.

During the year, a subsidiary made sales to a related company of £1,489,669 (2024: £1,310,976), and purchases of £1,908,911 (2024: £1,652,697), related due to common directors. At the year end there was a balance of £296,839 (2024: £239,918) due to the group.

Other debtors includes balances owed by shareholders to a subsidiary of £271,475 (2024: £327,783). During the year, there were advances of £32,737 (2024: £58,389), repayments of £98,053 (2024: £78,627) and interest charged of £9,007 (2024: £5,897). Interest is charged at HM Revenue and Customs approved rates for beneficial loans at 3.75% (2024: 2.25%).

Related party balances (unless otherwise stated) are unsecured, non-interest bearing and repayable on demand.

Company

The company has taken advantage of the exemption available in Financial Reporting Standard (FRS) 102 "Related party disclosures" Section 33.1A whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.

Dividends totalling £162,000 (2024: £142,248) were paid in the year in respect of shares held by the company's directors.

Advances or credits have been granted by the group to its directors as follows:

During the year, HM Revenue & Customs revised the official rate of interest used in determining the taxable benefit on beneficial loans provided to employees and directors. The rate increased from 2.25% to 3.75% from 6 April 2025 onwards.