REGISTERED NUMBER: 00644141 (England and Wales)

Pitkin & Ruddock Limited

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

For The Year Ended

31st December 2025

Page

Company Information

1

Group Strategic Report

2

to

4

Report of the Directors

5

Report of the Independent Auditors

6

to

7

Consolidated Statement of Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

to

28

DIRECTORS:

Mrs S Ashford

D W Clackett

D Nunn

Mrs A W Ruddock

M J Cole

SECRETARY:

Mrs A W Ruddock

REGISTERED OFFICE:

Unit 1 Capital Estate

Whapload Road

Lowestoft

Suffolk

NR32 1TY

REGISTERED NUMBER:

00644141 (England and Wales)

INDEPENDENT AUDITORS:

TC Group

Statutory Auditor

1 Rushmills

Northampton

NN4 7YB

The directors present their strategic report of the company and the group for the year ended 31st December 2025.

The business was established in 1954 by 2 friends, Pat Pitkin and Derrick Ruddock, and was incorporated 5 years later. Now in its third generation of the Ruddock family, the company has grown significantly and is one of East Anglia's leading Refrigeration and Air Conditioning companies that has over 65 years of experience; delivering complete temperature-controlled solutions, service and planned maintenance.

In 2025 the group purchased Derek Austin Heating Ltd to add commercial heating and plumbing to their portfolio.

The group is based in East Anglia with over 90 employees serving customers throughout the UK from 4 key locations; Bury St Edmunds, Ipswich, Bishop's Stortford and Lowestoft.

The company's success has derived from ensuring people are at the heart of our decision making, they are our most important asset. Ambitious and challenging thinking whilst taking personal ownership to ensure our customers are served to the best of our capabilities; this is achieved by:

- investing in our employees to allow us to meet the challenges of an ever-changing world of technical and regulatory climate;

- establishing innovative and long-term supplier relationships;

- family friendly company ethos that has a dynamic and agile culture to ensure all our customers feel valued and supported. Our employees are specialists; their expert knowledge and insight help us better understand our customer needs so we can serve them better.

We support customers across a range of sectors, from hospitality to office, commercial and industrial environments, including the following specialist sectors; data centres, brewery refrigeration, sports and fitness venues, education, healthcare and veterinary practices as well as the marine sector. No matter the size of the customer or project, the same high standards of refrigeration and air conditioning engineering are consistently upheld, and the friendly personal attention of enthusiastic staff never varies.

REVIEW OF BUSINESS

The statement of comprehensive income discloses the full results.

The key financial performance indicators are noted below; these are used by the directors to monitor the progress of the company's performance. As such, the challenges within the UK economy in 2025 were monitored and tracked; this encouraged the company to flex its operating model to ensure revenue and gross margin were ahead of the previous year.

2025

2024

£

£

Revenue

11,601

10,345

Gross Profit

4,856

3,950

Gross Margin (%)

42%

38%

Operating Profit

1,333

906

Debtor days

81.1

66.1

The increased revenue reflects the acquisition of Derek Austin Heating in the year, the acquisition contributed £482K alongside organic group growth, £774K (7.5% overall growth). Growth was sustained in both revenue class types; service & maintenance and installation. The organic growth and improved profit margins reflect the operating branches' focus on building and fostering long term relationships with colleagues, customers and suppliers. Each company has a deep understanding of their customer and supplier needs; this is one of the factors that distinguishes the group from our competitors.

Operating profit includes the sale of Mercers Road. Excluding the impact of this on the operating profit, the profit margin of the company increased from 8.7% to 10.81%. The increase reflects the strong performance of the subsidiaries with the enhanced group structure being able to assist and support when required. Whilst the group has increased its revenue and size, the family orientated culture remains at the heart of the group. The culture gives each of our employees the opportunity to perform to the best of their capabilities and solidifies good supplier and customer relationships.

PRINCIPAL RISKS AND UNCERTAINTIES

The more clearly we understand risk the better position we put ourselves in in terms of making well informed decisions that move the company forward. Risk management allows the company to pursue its growth strategy with a full and balanced picture of potential impacts rather than putting a brake on decision making.

Economic instability

The UK economy has faced large disturbances since 2019; the COVID pandemic caused huge economic disruptions, and energy prices surged following Russia's full-scale invasion of Ukraine in 2022. High inflation rates coupled with increased interest rates have influenced weak productivity growth within the UK economy. Demand for our products and services could be impacted by the general economic instability.

The macro-economic environment is discussed by the directors. The company has a diverse revenue portfolio that provides us with resilience to navigate through specific downturns. We have good visibility of revenues, and our annual maintenance portfolio supports the fluctuations in installation revenue. In addition, our strong balance sheet gives the company confidence that it can withstand any unexpected shocks.

Reliance on key partnerships

We work with a range of business partnerships but if a significant service provision were disrupted or failed it could affect the delivery of normal business activity.

All critical partnerships are actively monitored, and we have diversified any key relations, so we are not dependent upon any one customer or supplier. In addition, our strong liquidity ensures we are not reliant upon external funding.

Technology failure

Technology underpins our business operations. A prolonged loss of critical systems and networks could disrupt the delivery of our products and services, impacting revenues, customer experience and our reputation.

In 2025 we deployed cloud computing-based services that have built resilience and the capacity to scale. Risk of downtime is mitigated by outsourcing our IT to technology specialists, and we can work remotely if one of our branches were affected by a technology outage.

Cyber threats

Cyber threats are evolving and attacks are increasing. A cyber breach or loss could create losses for our stakeholders, affect our reputation and disrupt the business. In 2026 the group achieved the Cyber Essentials Accreditation.

We protect our data robustly and have a layered defence approach to protect the confidentiality, availability and integrity of our key systems.

Inability to attract and retain key talent

Our employees are crucial to serving our customers; the loss of key talent in critical functions and inadequate succession planning for senior managers could affect our growth and business success.

We put considerable time and investment into creating an engaging, inclusive and rewarding work environment. We incentivise key talent alongside establishing short and long term succession plans. We invest in developing talent from within, and review career opportunity programs alongside benefit programs.

Environmental and Refrigerant regulations

We are aware of the stricter environmental and refrigerant regulations; specifically, the move away from R-410A, and ensuring our maintenance and servicing of equipment are fully compliant with these regulations. Similarly, we are advising customers that use old refrigerants of the need to upgrade and look at more efficient equipment.

Health and safety incidents

We want our workplaces to be safe and secure environments for everyone. Incidents or mismanagement of this risk which could injure our employees, customers or the general public, could affect our reputation, and lead to fines and claims for damages.

We focus on preventing incidents by establishing good health and safety operating standards, and building awareness and personal accountability into our culture. We have a dedicated health and safety team that have documented standards and frameworks that are embedded into everyday work. We assess and audit compliance to these standards and monitor any actions that are required.

FUTURE DEVELOPMENTS

The group's strategy remains focused on expanding our operational footprint in the UK by ensuring strong trading growth in each of its key locations and consolidating the integration of the commercial heating and plumbing acquisition into our underlying revenue. The strong structural foundations that have been implemented into the company have underpinned our business and growth prospects for 2026 and our forecast growth is on track for 2026

FINANCIAL INSTRUMENTS

The group's financial instruments comprise cash and cash equivalents, trade and other debtors, trade and other creditors. These financial instruments arise directly from the group's operations and are managed in accordance with the group's treasury policies.

The main risks arising from the group's financial instruments are credit risk and liquidity risk. Credit risk is managed through regular monitoring of outstanding receivables and the assessment of customer creditworthiness. Liquidity risk is managed by maintaining adequate cash balances and monitoring forecast cash flows to ensure sufficient funds are available to meet liabilities as they fall due.

The group is not exposed to significant market risks and does not enter into derivative transactions or other complex financial instruments. The directors consider that the group's exposure to financial risk is appropriately managed and proportionate to the size and nature of its operations.

FURTHER INFORMATION

Information relating to matters required to be disclosed in the Directors' Report has not been duplicated in the Strategic Report where it is presented elsewhere in the Annual Report. The Strategic Report should be read in conjunction with the Directors' Report, which provides additional information on the governance and management of the Group.

ON BEHALF OF THE BOARD:

Mrs S Ashford - Director

17th July 2026

The directors present their report with the financial statements of the company and the group for the year ended 31st December 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of installation, service and maintenance of industrial equipment.

DIVIDENDS

The total distribution of dividends for the year ended 31st December 2025 will be £ 101,622 .

DIRECTORS

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

Mrs S Ashford

D W Clackett

D Nunn

Mrs A W Ruddock

Other changes in directors holding office are as follows:

M J Cole - appointed 1st January 2025

POLITICAL DONATIONS AND EXPENDITURE

During the year the company made charitable donations totalling £2,261 (2024: £935). No political donations or expenditure were incurred during the year and in previous year..

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group for that period. In preparing these

financial statements, the directors are required to:

- select suitable accounting policies 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.

- state whether applicable accounting standard have been followed, subject to any material departures

disclosed and explained in the financial statements.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs S Ashford - Director

17th July 2026

Opinion

We have audited the financial statements of Pitkin & Ruddock Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31st 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

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

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:

- We have performed our own assessment of the susceptibility of the financial statements to material misstatement, including how fraud might occur, and concentrated our audit work in these areas in order to detect any material misstatements which may exist.

- We have performed substantive testing of all material year end balances, and also performed substantive testing of a sample of other transactions during the year and of other year end balances.

- We have performed preliminary analytical procedures to identify any unusual or unexpected relationships that may indicate an increased risk of material misstatement as a result of fraud.

- We have selected a sample of journal entries made in the period for substantive testing, in order to address the risk of fraud due to management override of controls.

- We have made enquiries of management of any known instances of non-compliance or suspected non-compliance with laws and regulation.

- We performed walk-through tests of sales, purchases, payroll, VAT and bank systems to ensure that systems operated as documented.

- The engagement team was selected to ensure that they collectively had the appropriate competences and capabilities to identify and recognise non-compliance with laws and regulations. We have communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

- We have tested amounts recorded as owed to and receivable from other group companies and agreed these amounts to the corresponding accounting records of those other group companies.

Our audit did not identify any matters relating to the detection of irregularities including fraud.

However, because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Antonia Aldridge-Brown (Senior Statutory Auditor)

for and on behalf of TC Group

Statutory Auditor

1 Rushmills

Northampton

NN4 7YB

20th July 2027

TURNOVER

4

11,600,690

10,345,379

Cost of sales

6,744,198

6,395,859

GROSS PROFIT

4,856,492

3,949,520

Administrative expenses

3,523,341

3,043,217

OPERATING PROFIT

6

1,333,151

906,303

Interest receivable and similar income

16,493

11,707

PROFIT BEFORE TAXATION

1,349,644

918,010

Tax on profit

7

355,920

205,321

PROFIT FOR THE FINANCIAL YEAR

993,724

712,689

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

993,724

712,689

Profit attributable to:

Owners of the parent

993,724

712,689

Total comprehensive income attributable to:

Owners of the parent

993,724

712,689

FIXED ASSETS

Intangible assets

10

182,877

-

Tangible assets

11

2,742,342

2,820,129

Investments

12

-

-

2,925,219

2,820,129

CURRENT ASSETS

Stocks

13

144,025

286,888

Debtors

14

3,273,758

2,192,037

Cash at bank and in hand

1,508,916

1,489,490

4,926,699

3,968,415

CREDITORS

Amounts falling due within one year

15

1,958,964

1,838,319

NET CURRENT ASSETS

2,967,735

2,130,096

TOTAL ASSETS LESS CURRENT LIABILITIES

5,892,954

4,950,225

CREDITORS

Amounts falling due after more than one year

16

(6,271

)

-

PROVISIONS FOR LIABILITIES

18

(236,844

)

(192,488

)

NET ASSETS

5,649,839

4,757,737

CAPITAL AND RESERVES

Called up share capital

19

1,070

1,070

Revaluation reserve

20

97,477

166,841

Retained earnings

20

5,551,292

4,589,826

SHAREHOLDERS' FUNDS

5,649,839

4,757,737

The financial statements were approved by the Board of Directors and authorised for issue on 17th July 2026 and were signed on its behalf by:

Mrs S Ashford - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

1,910,743

2,130,087

Investments

12

434,837

69,469

2,345,580

2,199,556

CURRENT ASSETS

Debtors

14

73,656

21,807

Cash at bank and in hand

1,387,493

1,489,456

1,461,149

1,511,263

CREDITORS

Amounts falling due within one year

15

1,990,844

1,950,274

NET CURRENT LIABILITIES

(529,695

)

(439,011

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,815,885

1,760,545

PROVISIONS FOR LIABILITIES

18

41,535

34,230

NET ASSETS

1,774,350

1,726,315

CAPITAL AND RESERVES

Called up share capital

19

1,070

1,070

Revaluation reserve

97,477

166,841

Retained earnings

1,675,803

1,558,404

SHAREHOLDERS' FUNDS

1,774,350

1,726,315

Company's profit for the financial year

149,657

437,355

The financial statements were approved by the Board of Directors and authorised for issue on 17th July 2026 and were signed on its behalf by:

Mrs S Ashford - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1st January 2024

1,070

3,998,436

166,841

4,166,347

Changes in equity

Dividends

-

(121,299

)

-

(121,299

)

Total comprehensive income

-

712,689

-

712,689

Balance at 31st December 2024

1,070

4,589,826

166,841

4,757,737

Changes in equity

Dividends

-

(101,622

)

-

(101,622

)

Total comprehensive income

-

993,724

-

993,724

Revaluation reserve transfer

-

69,364

(69,364

)

-

Balance at 31st December 2025

1,070

5,551,292

97,477

5,649,839

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1st January 2024

1,070

1,242,348

166,841

1,410,259

Changes in equity

Dividends

-

(121,299

)

-

(121,299

)

Total comprehensive income

-

437,355

-

437,355

Balance at 31st December 2024

1,070

1,558,404

166,841

1,726,315

Changes in equity

Dividends

-

(101,622

)

-

(101,622

)

Total comprehensive income

-

149,657

-

149,657

Revaluation reserve transfer

-

69,364

(69,364

)

-

Balance at 31st December 2025

1,070

1,675,803

97,477

1,774,350

Cash flows from operating activities

Cash generated from operations

1

735,786

1,987,116

Tax paid

(269,259

)

(185,229

)

Net cash from operating activities

466,527

1,801,887

Cash flows from investing activities

Purchase of tangible fixed assets

(436,247

)

(1,026,751

)

Sale of tangible fixed assets

396,437

19,125

Acquisition of subsidiary

(236,269

)

-

Interest received

16,493

11,707

Net cash from investing activities

(259,586

)

(995,919

)

Cash flows from financing activities

Capital repayments in year

(7,279

)

-

Repayment of director's loan account

(78,614

)

-

Equity dividends paid

(101,622

)

(121,299

)

Net cash from financing activities

(187,515

)

(121,299

)

Increase in cash and cash equivalents

19,426

684,669

Cash and cash equivalents at beginning of year

2

1,489,490

804,821

Cash and cash equivalents at end of year

2

1,508,916

1,489,490

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

2025

2024

£

£

Profit before taxation

1,349,644

918,010

Depreciation charges

343,221

218,652

(Profit)/loss on disposal of fixed assets

(147,519

)

5,621

Dilapidation provision

2,000

15,000

Warranty provision

(3,287

)

12,387

Finance income

(16,493

)

(11,707

)

1,527,566

1,157,963

Decrease/(increase) in stocks

142,863

(80,775

)

(Increase)/decrease in trade and other debtors

(972,367

)

203,805

Increase in trade and other creditors

37,724

706,123

Cash generated from operations

735,786

1,987,116

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:

Year ended 31st December 2025

31/12/25

1/1/25

£

£

Cash and cash equivalents

1,508,916

1,489,490

Year ended 31st December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

1,489,490

804,821

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/25

Cash flow

At 31/12/25

£

£

£

Net cash

Cash at bank and in hand

1,489,490

19,426

1,508,916

1,489,490

19,426

1,508,916

Debt

Finance leases

-

(35,655

)

(35,655

)

-

(35,655

)

(35,655

)

Total

1,489,490

(16,229

)

1,473,261

4.	ACQUISITION OF BUSINESS

During the year, the Group acquired 100% of the share capital of Derek Austin Heating Limited and Icebox Air Conditioning Limited. The total cost of acquisition, including directly attributable legal and professional fees of £12,368, was £365,368. The fair value of the net assets acquired was £157,163, resulting in goodwill of £197,705.

After deducting non-cash settlement items of £10,500, the cash consideration paid was £354,868.

The net cash outflow arising on acquisition was:

Total

£

Cash consideration paid

354,868

Less: cash and cash equivalents acquired

(118,599

)

Net cash outflow on acquisition

236,269