ACCOUNTS - Final Accounts preparation

Commitments under operating leases

At 31 March 2026 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

Registered number: 07308930

GRAIN COMMUNICATIONS LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

GRAIN COMMUNICATIONS LIMITED

REGISTERED NUMBER: 07308930

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2026

		2026		2025
Note		£000		£000

Fixed assets
Intangible assets	5		385		115
Tangible assets	6		123,544		103,260
			123,929		103,375
Current assets
Debtors: amounts falling due after more than one year	7	7,852		6,632
Debtors: amounts falling due within one year	7	28,842		20,182
Cash at Bank and in hand		140		201
		36,834		27,015
Creditors: amounts falling due within one year	8	(166,457)		(133,045)
Net current liabilities			(129,623)		(106,030)
Total assets less current liabilities			(5,694)		(2,655)
Creditors: amounts falling due after more than one year	9		(3,233)		(2,720)

Net liabilities			(8,927)		(5,375)

Capital and reserves
Called up share capital	10	-	-
Profit and loss account		(8,927)	(5,375)
		(8,927)	(5,375)

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GRAIN COMMUNICATIONS LIMITED

REGISTERED NUMBER: 07308930

STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 MARCH 2026

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Mr Roland Barzegar

Director

Date: 15 July 2026

The notes on pages 3 to 9 form part of these financial statements.

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GRAIN COMMUNICATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

1.	General information

Grain Communications Limited is a private company, limited by shares, incorporated in England & Wales, registered number 07308930. The registered office is Clifford House Cooper Way, Parkhouse, Carlisle, CA3 0JG.

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 requirements and the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements have been prepared to the nearest thousand pounds.

The following principal accounting policies have been applied:

2.2

Going concern

The company had net liabilities of £8,927k (2025: net liabilties of £5,376k) and net current liabilities of £129,623k (2025: net current liabilities of £106,031k).

The company is building network infrastructure for use by its parent company, Grain Connect Limited. Charges are being levied for the use of that network infrastructure, but because charges are only levied for completed networks, the income generated by the assets is lagging the cost of the building of those assets. The infrastructure build is being financed via loans from the parent company which is repayable on demand totalling £160,511k, causing the net current liability position. However, these amounts would not be recalled if doing so would prejudice the ability of this company to continue as a going concern.

As such, the directors consider the company to be a going concern and have prepared the accounts on that basis.

2.3

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.

Use of network assets

Revenue includes a contractual sum due from a group company in respect of the use of Grain Communications Limited’s network assets.

2.4

Interest income

Interest income is recognised in profit or loss using the effective interest method.

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GRAIN COMMUNICATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

2.Accounting policies (continued)

2.5

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 reporting 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 reporting date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; 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 reporting date.

2.6

Intangible fixed assets and amortisation - other intangible

Other intangible assets consist of a licence from Ofcom to operate fibre networks. It is amortised to profit and loss account over its estimated useful economic life of 10 years.

2.7

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, using the straight-line method.

Depreciation is provided on the following basis:

				Long-term leasehold property	-	12 years straight line
				Plant and machinery	-	3 to 25 years 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.

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GRAIN COMMUNICATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

Recognition of deferred tax asset

Deferred tax assets should only be recognised where it is probable that future taxable profits will be made against which the potential asset can be utilised.

The directors have considered the performance of the company against business plans at the group level, since these losses could be offset against the taxable profits of other companies in the group in future. Performance is tracking favourably against those plans, which forecast profitability in the medium term. The directors have determined that there is a probability that the assets will be utilised in future on the grounds that the forecast profitability is more likely than not to arise. The directors have determined that, because the company would be required to consent to any relief of losses to group companies, it is appropriate to recognise the asset as an asset of this company.

This is a significant judgement taken in the preparation of these accounts, given the magnitude of the deferred tax asset recognised. There is inherently uncertainty as to whether the forecast profitability will be realised.

Depreciation

Tangible fixed assets are depreciated over their estimated useful economic life, to a residual value at the end of that useful economic life.

Determining both the useful economic life and residual values for assets involve forecasting future events, and as such there is inherently uncertainty in these estimates. Because of the materiality of tangible fixed assets to these accounts, and the early-stage nature of the company meaning that there is limited track record against which to benchmark these estimates, the directors have identified depreciation as a key source of estimation uncertainty in these accounts.

Work has been undertaken to determine accurate estimates for both the useful economic lives and residual values, particularly by benchmarking those values against industry averages.

Employees

The Company has no employees other than the directors, who did not receive any remuneration (2025 - £NIL).

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GRAIN COMMUNICATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

5.	Intangible assets

		License
		£000
	Cost
	At 1 April 2025	153
	Additions	313
	At 31 March 2026	466
	Amortisation
	At 1 April 2025	37
	Charge for the year on owned assets	44
	At 31 March 2026	81
	Net book value
	At 31 March 2026	385
	At 31 March 2025	115

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GRAIN COMMUNICATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

6.	Tangible fixed assets

	Leasehold property	Network infrastructure, plant, and machinery	Total
	£000	£000	£000
Cost or valuation
At 1 April 2025	40	114,089	114,129
Additions	-	26,545	26,545
Disposals	-	(676)	(676)
At 31 March 2026	40	139,958	139,998
Depreciation
At 1 April 2025	38	10,832	10,870
Charge for the year on owned assets	2	6,172	6,174
Disposals	-	(590)	(590)
At 31 March 2026	40	16,414	16,454
Net book value
At 31 March 2026	-	123,544	123,544
At 31 March 2025	3	103,257	103,260

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GRAIN COMMUNICATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

7.	Debtors
		2026	2025
		£000	£000

Due after more than one year
Deferred tax asset	7,852	6,632
	7,852	6,632

					2026	2025
					£000	£000

Due within one year
Prepayments and accrued income	36	16
Other debtors	1,381	1,519
Amounts owed by group undertakings	27,425	18,647
	28,842	20,182

Amounts due from group undertakings are unsecured, bear no interest and are repayable on demand.

8.	Creditors: Amounts falling due within one year
		2026	2025
		£000	£000

Trade creditors	2,346	1,081
Amounts owed to group undertakings	160,511	129,773
Other taxation and social security	-	44
Accruals and deferred income	3,600	2,147
	166,457	133,045

Amounts due to group undertakings are unsecured, bear no interest and are repayable on demand.

9.	Creditors: Amounts falling due after more than one year
		2026	2025
		£000	£000

Other creditors	3,233	2,720
	3,233	2,720

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GRAIN COMMUNICATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

10.	Share capital
		2026	2025
		£000	£000

Allotted, called up and fully paid

100 (2025 - 100) Ordinary shares of £1.00 each	-	-

Not later than 1 year	6	6
Later than 1 year and not later than 5 years	4	10
	10	16

12.	Controlling party

The ultimate parent company of the entity and the parent of the largest group that consolidates these accounts is Grain Connect Topco Limited. The company's immediate parent company is Grain Connect Limited. The registered office address of both of these companies is Clifford House, Cooper Way, Parkhouse, Carlisle, United Kingdom, CA3 0JG.

There is no individual ultimate controlling party.

13.	Auditors' information

The auditors' report on the financial statements for the year ended 31 March 2026 was unqualified.

The audit report was signed on 16 July 2026 by Joanna Gray (Senior Statutory Auditor) on behalf of Armstrong Watson Audit Limited.

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