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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2025
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Burns & McDonnell Europe (UK) Limited
COMPANY INFORMATION
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Burns & McDonnell Europe (UK) Limited
CONTENTS
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Burns & McDonnell Europe (UK) Limited
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors present their strategic report for the year ended 31 December 2025.
In 2025, Burns & McDonnell Europe (UK) Limited ("the Company") is a Company in the UK providing full-service advisory, engineering and construction services to industry and government, across a range of sectors including transmission and distribution, power and global facilities. These services are provided to third-party clients as well as other affiliated companies within the Burns & McDonnell family of companies where another entity may act as the prime contractor.
The Company provides these services primarily in the transmission and distribution, power, and global facilities sectors. The Company will also undertake projects in other sectors when there is a clear strategic link to long-term business goals and the Company has competencies to perform such services. The Company continues to execute these services including engineering, procurement, and construction (EPC) projects. Certain EPC projects incurred additional costs driving increased losses in 2024. The additional costs were due to cost escalation, project delays, and scope changes. The Company continues to get support from their US parent company as they execute certain EPC projects. The Statement of comprehensive income is set out on page 13 and shows a loss for the year ended 31 December 2025 of £21.0million (2024: loss of £37.8 million) with revenue of £46.9 million (2024: £42.1 million). The Company is continuing to expand by executing previously awarded contracts, tendering additional contracts with existing and new clients, and building capabilities for future execution of new projects. Total net liabilities at year-end amounted to £83.8 million (2024: £62.8 million). Revenue growth for the year was driven by contract execution on the back of business development efforts commenced in prior years and new awards secured during the year.
Market risks primarily relate to cost escalation, geopolitical, foreign exchange rates, and labour productivity. At this stage of the business, the primary risks and uncertainties are around cost escalation and labour productivity as the Company continues executing EPC projects.
Contractual delivery risk arises from contracts with customers and varies depending on the nature of the work undertaken. The primary risks include failure to deliver to schedules and design specification. These risks are actively managed by project management and regular project reviews. Development of local leadership and continuing to establish business systems and capabilities, particularly around executing EPC projects, will allow the business to grow and execute projects successfully. The US Parent will continue to support the business from other parts of the global business which have existing controls and processes and will be deployed locally to ensure appropriate governance and oversight of the business. Credit risk arises from cash and cash equivalents and deposits with banks, as well as credit exposure to customers, primarily outstanding receivables. Credit risk with customers is managed through credit checks and credit rating reviews with new and existing customers, respectively. The UK Government has committed to a net-zero future which will require our clients to make investments in new infrastructure to meet the new lower carbon future. This will also place expectations on businesses to respond with their own commitments and to find new lower carbon ways of executing projects. The Directors are satisfied that other business risks remain manageable and do not represent any unusual risks compared to the parent Company in the United States.
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Burns & McDonnell Europe (UK) Limited
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Company monitors performance using both financial and non-financial key performance indicators (KPIs).
Non-financial key performance indicators
The Company uses a range of non-financial KPIs to monitor performance and support the delivery of its strategy. Employee-related KPIs include the number of employees, which was 176 at 31 December 2025 (2024: 138), providing an indication of workforce capacity and supporting the delivery of the Company’s projects and services, including growth in operational activity during the year. Environmental KPIs relating to energy consumption and greenhouse gas emissions are reported in the group Directors’ Report of the Company’s parent undertaking, Burns & McDonnell Enterprises Limited, in accordance with the Streamlined Energy and Carbon Reporting (SECR) requirements.
Directors' statement of compliance with duty to promote the success of the Company
The Directors of the Company are required under Section 172(1) of the Companies Act 2006 to act in a way that they consider, in good faith, would most likely promote the success of the Company for the benefit of its members as a whole. In doing so, the Directors have regard to a range of factors, including the likely long-term consequences of decisions, the interests of employees, relationships with suppliers and customers, the impact of the Company’s operations on the community and the environment, the importance of maintaining a reputation for high standards of business conduct, and the need to act fairly between members of the Company. The Directors’ consideration of these matters is undertaken primarily through the review and monitoring of the activities, performance, and strategic direction of the Company. The Board engages regularly with management of the Company and receives reports on operational and financial performance, principal risks and uncertainties, and key strategic initiatives. These discussions incorporate consideration of longer-term factors, including market conditions, project execution risks, and the development of the Company’s capabilities and resources. During the year, in evaluating the Company’s strategic initiatives, project execution priorities, and resource allocation decisions, the Board considered the potential impact on key stakeholders, including employees, clients, and suppliers, as well as the long-term sustainability of the Company’s operations, in determining the appropriate course of action. In this context, the Directors recognise that the success of the Company depends on its employees, clients, suppliers, and other stakeholders. The Board considers the interests of employees through regular updates from management on workforce development, recruitment, retention, and training initiatives. The importance of maintaining strong relationships with clients, suppliers, and other business partners is considered in the oversight of project delivery and business development activities. The Directors also consider the broader impact of the Company’s operations on the community and environment, including through the Company’s approach to energy usage, emissions, and sustainability practices. Further information in relation to energy use and emissions is provided in the group Directors’ Report of the Company’s parent undertaking, Burns & McDonnell Enterprises Limited.
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Burns & McDonnell Europe (UK) Limited
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Board seeks to promote high standards of business conduct through the application of Company policies, procedures, and governance frameworks, and by maintaining oversight of compliance and risk management processes. In carrying out their duties, the Directors aim to balance the interests of stakeholders and the long-term success of the Company while acting fairly between members of the Company.
The Company remains focused on developing local leadership, continuing to align business systems and processes with the Burns & McDonnell family of companies, and executing EPC projects across a range of sectors.
This report was approved by the board on 21 July 2026 and signed on its behalf.
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Burns & McDonnell Europe (UK) Limited
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors present their report and the financial statements for the year ended 31 December 2025.
Objectives of the business, principal activity and future direction
The principal activity of the Company covers the provision of advisory, engineering and construction services to the UK transmission & distribution and global facilities sectors. The Directors remain positive about the long-term growth potential for the business across all business lines and client types. This is supported by government commitment to infrastructure projects and long-term investment in the transmission and distribution markets through the RIIO regulatory regime. The mission critical projects within the global facilities market in the UK and around the globe also present the business with opportunities for growth. The objectives of the business are as follows:
1. Realising financial performance 2. Presence and positioning 3. Business performance The UK Managing Director is tasked with growing the business in terms of resources, long-term client relationships and a pipeline of work. He is being supported by full-time and part-time resources from the US Parent. The next few years should see steady growth in activity across the three areas of technical consultancy, engineering services and EPC work. There is a solid pipeline of opportunities and continued interest from clients in a new delivery partner in the UK market.
Business relationships
The Directors recognise the importance of maintaining strong relationships with the Company’s key stakeholders, including clients, suppliers, and other business partners, in supporting the long-term success of the Company. The Directors receive regular updates from management on project delivery, client relationships, and supply chain matters, which are considered as part of the Board’s oversight of the Company’s operations and performance. In making decisions during the year, the Directors have had regard to the need to foster these relationships, and this has informed decisions relating to project execution, business development activities, and operational performance. The Directors recognise that maintaining strong and collaborative relationships with clients and suppliers is critical to the successful delivery of projects and the continued growth of the Company.
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Burns & McDonnell Europe (UK) Limited
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The loss for the year ended 31 December 2025, after taxation, amounted to £20,950,286 (2024: loss of £37,826,637).
The Directors did not recommend payment of a dividend for 2025 (2024: £nil).
The Directors who served during the year were:
On 1 May 2026 K N Roberts was appointed as a director.
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Burns & McDonnell Europe (UK) Limited
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Company uses various financial instruments including cash, funding from group undertakings, trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Company's operations. However, their existence exposes the Company to a number of financial risks which are described in more detail below.
Currency risk
Transaction exposures, including those associated with forecast transactions, are assessed and hedging is considered where risks facing the Company are outside acceptable limits. Whilst the aim is to achieve an economic hedge, the Company does not adopt an accounting policy of hedge accounting for these financial statements. Foreign exchange differences on retranslation of these assets and liabilities are taken to the Statement of comprehensive income. Liquidity risk The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. The objective is to ensure a mix of funding methods offering flexibility and cost effectiveness to match the needs of the Company. Longer term borrowing is achieved by utilising finance leases. Interest rate risk During the reported year, the Company financed its operations through a mixture of funding from group undertakings and finance leases. Group funding is repayable on demand and interest free. The Company's policy during the year was to arrange finance leases with fixed interest rates. Credit risk The principal credit risk arises from trade debtors. To manage credit risk, management sets limits for customers based on a combination of payment history and third-party credit references. Credit limits are reviewed by the finance department on a regular basis in conjunction with debt ageing and collection history.
Streamlined Energy and Carbon Reporting
The Company is a subsidiary undertaking of Burns & McDonnell Enterprises Limited. The energy and carbon information required under the Streamlined Energy and Carbon Reporting regulations is included within the Group's Directors' Report of the parent company.
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Burns & McDonnell Europe (UK) Limited
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Company's net liabilities at 31 December 2025 amounted to £83.8 million (2024: £62.8 million). The Directors have received a commitment in writing from Burns & McDonnell Engineering Company Inc., a company incorporated in the United States of America (the 'US parent company'), to provide adequate financial support to the Company, if required, for a period of at least 12 months from the approval date of the Balance sheet to enable it to meet its liabilities as and when they fall due.
The US parent company is confident, based on its review of projected revenues and cash-flows, including taking into account the application of downside sensitivities, that it has adequate resources to continue operations and provide financial support to the Company for a period of at least 12 months from the approval date of the Balance sheet. Based on the confirmation of support received from the US parent company, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for a period of at least 12 months from the approval of the Balance sheet. Accordingly, the Directors have prepared the accounts under the going concern basis, which they consider to be appropriate.
Greenhouse gas emissions, energy consumption and energy efficiency action
The Company is a subsidiary undertaking of Burns & McDonnell Enterprises Limited. The energy and carbon information required under the Streamlined Energy and Carbon Reporting regulations is included within the group Directors’ Report of the parent company.
There have been no significant events affecting the Company since 31 December 2025.
The auditors, PKF Smith Cooper Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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Burns & McDonnell Europe (UK) Limited
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BURNS & MCDONNELL EUROPE (UK) LIMITED
We have audited the financial statements of Burns & McDonnell Europe (UK) Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
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Burns & McDonnell Europe (UK) Limited
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BURNS & MCDONNELL EUROPE (UK) LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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Burns & McDonnell Europe (UK) Limited
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BURNS & MCDONNELL EUROPE (UK) LIMITED (CONTINUED)
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 Auditors' 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.
Based on our understanding of the Company and the industry, key laws and regulations that we identified included:
∙Tax legislation;
∙Health and safety legislation; and
∙Employment legislation.
We identified that the principal risk of fraud or non-compliance with laws and regulations related to:
∙management bias in respect of accounting estimates and judgements made;
∙management override of controls; and
∙posting of unusual journals or transactions.
We focused on those areas that could give rise to a material misstatement in the Company's financial statements.
Our procedures included, but were not limited to:
∙Enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;
∙Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. In particular, revenue recognition on long-term contracts and the assessment of whether to recognise a deferred tax asset.
It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
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Burns & McDonnell Europe (UK) Limited
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BURNS & MCDONNELL EUROPE (UK) LIMITED (CONTINUED)
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 Auditors' report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditors
Cornerblock
2 Cornwall Street
B3 2DX
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Burns & McDonnell Europe (UK) Limited
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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Burns & McDonnell Europe (UK) Limited
REGISTERED NUMBER: 09913412
BALANCE SHEET
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 33 form part of these financial statements.
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Burns & McDonnell Europe (UK) Limited
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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Burns & McDonnell Europe (UK) Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Burns & McDonnell Europe (UK) Limited (09913412) (the "Company") is a private Company limited by shares which is incorporated in England and Wales and domiciled in the United Kingdom. The address of the registered office is shown on the company information page. The places of business are Cornwall Street, Birmingham, B3 2DL, Bishops Square, London, E1 6AD and Duart House, Strathclyde Business Park, Bellshill, Lanarkshire, ML4 3PR. For details on the Company’s principal activities, see the Strategic Report on page 1.
2.Accounting policies
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 101 ''Reduced Disclosure Framework' - (FRS101) and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The financial statements level of rounding is to the nearest £1.
The Company has taken advantage of the following disclosure exemptions under FRS 101:
∙the requirements of IFRS 7 Financial Instruments: Disclosures
∙the requirements of IAS 7 Statement of Cash Flows
∙the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
∙the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
This information is included in the consolidated financial statements of Burns & McDonnell Enterprises Limited as at 31 December 2025 and these financial statements may be obtained from Companies House.
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Burns & McDonnell Europe (UK) Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Company's net liabilities at 31 December 2025 amounted to £83.8 million (2024: £62.8 million). The Directors have received a commitment in writing from Burns & McDonnell Engineering Company Inc., a company incorporated in the United States of America ( the 'US parent company'), to provide adequate financial support to the Company, if required, for a period of at least 12 months from the approval date of the Balance sheet to enable it to meet its liabilities as and when they fall due.
The US parent company is confident, based on its review of projected revenues and cash-flows, including taking into account the application of downside sensitivities, that it has adequate resources to continue operations and provide financial support to the Company for a period of at least 12 months from the approval date of the Balance sheet. Based on the confirmation of support received from the US parent company, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for a period of at least 12 months from the approval of the Balance sheet. Accordingly, the Directors have prepared the accounts under the going concern basis, which they consider to be appropriate. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Amounts due from customers for contract work are valued at anticipated net value of work done after provision for contingencies and anticipated future losses on contracts. Claims by the Company which are included in the valuation of contracts are credited to the Statement of comprehensive income when entitlement has been established and the amount of economic benefit has been established and the amount of the economic benefit receivable can be established reliably. Amounts recognised in excess of amounts invoiced are recorded in debtors as contract assets.
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Burns & McDonnell Europe (UK) Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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. Income from engineering is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
The Company accounts for leases in accordance with IFRS 16. The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities representing future lease payment commitments and right-of-use assets representing the right to use the underlying assets.
i) Right-of-use assets
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of (a) the lease term and (b) the estimated useful lives of the assets.
ii) Lease liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. The lease term includes a renewal option when it is reasonably certain of being exercised. Variable lease payments that do not depend on an index or a rate are recognised as expenses in the period in which the event or condition that triggers the payment occurs.
Page 17
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Burns & McDonnell Europe (UK) Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date unless the interest rate implicit in the lease is readily determinable. Subsequent to the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. The carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.
The Company's right-of-use assets and lease liabilities are presented within separate line items within the Balance sheet.
iii) Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemptions to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). Low-value assets are considered to be less than £4,000. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.
Defined contribution pension plan
Contributions to defined contribution plans are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet.
∙deferred income tax assets are recognised only to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, carried forward tax creditors or tax losses can be utilised.
Income tax expense / (credit) represents the sum of the taxes currently payable and deferred tax.
Deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply when the related asset is realised or liability is settled, based on tax rates and laws enacted or substantively enacted at the Balance sheet date. The carrying amount of deferred income tax assets is reviewed at each Balance sheet date. Deferred income tax assets and liabilities are offset only if a legally enforceable right exists to set off deferred tax assets against deferred tax liabilities, the deferred income taxes relate to the same taxation authority and that authority permits the company to make a single net payment. Income tax is charged or credited to other comprehensive income if it relates to items that are charged or credited to other comprehensive income. Similarly, income tax is charged or credited directly to equity if it relates to items that are credited or charged directly to equity. Otherwise, income tax is recognised in the Statement of comprehensive income.
Page 18
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Burns & McDonnell Europe (UK) Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Page 19
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Burns & McDonnell Europe (UK) Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Tangible fixed assets are stated at historic purchase cost less accumulated depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use.
Depreciation is recorded in order to recognise the cost of assets (less their residual value) over their estimated useful lives using the straight line method.
Depreciation is recorded based on the following estimated useful lives:
Furniture, fixtures and equipment 5-7 years Computer software 3 years Leasehold improvements shorter of lease term or useful life Motor vehicles 5 years 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 the Statement of comprehensive income.
Trade and other payables are obligations to pay for goods or services that have been acquired from suppliers in the ordinary course of business.
Trade and other payables are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.
Page 20
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Burns & McDonnell Europe (UK) Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Financial assets
Initial recognition and measurement
Financial assets are recognised when, and only when, the Company becomes a party to the contractual provisions of the financial instruments.
At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through the Statement of comprehensive income, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through the Statement of Comprehensive Income are expensed as incurred.
Trade debtors are measured at the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of a third party, if the trade debtors do not contain a significant financing component at initial recognition.
Subsequent measurement
Investments in debt instruments
Subsequent measurement of debt instruments depends on the Company's business model for managing the asset and the contractual cash flow characteristics of the asset. The three measurement categories for classification of debt instruments are:
(i) Amortised cost
Financial assets that are held for the collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Financial assets are measured at amortised cost using the effective interest method, less impairment. Gains and losses are recognised in the Statement of comprehensive income when the assets are derecognised or impaired, and through amortisation process.
(ii) Fair value through other comprehensive income ("FVOCI")
Financial assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets' cash flows represent solely payments of principal and interest, are measured at FVOCI. Financial assets measured at FVOCI are subsequently measured at fair value. Any gains or losses from changes in fair value of the financial assets are recognised in other comprehensive income, except for impairment losses, foreign exchange gains and losses and interest calculated using the effective interest method are recognised in the Statement of comprehensive income.
The cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit and loss reserves as a reclassification adjustment when the financial asset is de-recognised.
Page 21
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Burns & McDonnell Europe (UK) Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
(iii) Fair value through the Statement of comprehensive income
Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss. A gain or loss on a debt instruments that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognised in the Statement of comprehensive income in the period in which it arises.
Derecognition
A financial asset is derecognised where the contractual right to receive cash flows from the asset has expired. On derecognition of a financial asset in its entirety, the difference between the carrying amounts and the sum of the consideration received and any cumulative gain or loss that had been recognised in other comprehensive income is recognised in the Statement of comprehensive income.
Initial recognition and measurement
Financial liabilities are recognised when, and only when, the Company becomes a party to the contractual provisions of the financial instrument. The Company determines the classification of its financial liabilities at initial recognition.
All financial liabilities are recognised initially at fair value plus in the case of financial liabilities not at fair value through the Statement of comprehensive income, directly attributable transaction costs.
Subsequent measurement
After initial recognition, financial liabilities that are not carried at fair value through the Statement of comprehensive income are subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised in the Statement of comprehensive income when the liabilities are derecognised, and through the amortisation process.
Derecognition
A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. On derecognition, the difference between the carrying amounts and the consideration paid is recognised in the Statement of comprehensive income.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount reported in the Balance sheet if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.
Page 22
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Burns & McDonnell Europe (UK) Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Company recognises an allowance, where material, for expected credit losses ("ECLs") for all debt instruments not held at fair value through the Statement of comprehensive income. ECLs are based on the difference between the contractual cash flows and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of any collateral held or other credit enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is recognised for credit losses expected over the remaining life of the exposure, irrespective of timing of the default (a lifetime ECL). For trade debtors, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance, where material, based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. If a financial asset is found to be in default a provision is raised against the open balance on account. However, in certain cases, the Company may also consider a financial asset to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.
The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's fair value less costs to sell and its value in use and is determined for an individual asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets.
Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. Impairment losses are recorded in the Statement of comprehensive income in the period they occur. An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses no longer exist or may have decreased. If such indication exists, the Company makes an estimate of recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset's recoverable amount since the last increase to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior periods. Such reversal is recognised in the Statement of comprehensive income unless the asset is carried at the re-valued amount, in which case the reversal is treated as a revaluation increase.
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Burns & McDonnell Europe (UK) Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects.
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Burns & McDonnell Europe (UK) Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 25
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Burns & McDonnell Europe (UK) Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 26
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Burns & McDonnell Europe (UK) Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 27
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Burns & McDonnell Europe (UK) Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
There is no expiry date for the utilisation of taxable losses carried forward which would mitigate future taxable profits.
Page 28
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Burns & McDonnell Europe (UK) Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 29
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Burns & McDonnell Europe (UK) Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 30
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Burns & McDonnell Europe (UK) Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 31
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Burns & McDonnell Europe (UK) Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
14.Leases (continued)
Page 32
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Burns & McDonnell Europe (UK) Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Profit and loss account
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in independently administered funds. The pension cost charge represents contributions payable by the Company to the fund and amounted to £1,965,987 (2024: £1,471,493). Contributions totalling £653,212 (2024: £28,687) were payable to the fund at the balance sheet date and are included in creditors.
The Company's immediate parent undertaking is Burns & McDonnell Enterprises Limited, a Company registered in England and Wales. Burns & McDonnell Enterprises Limited is the parent undertaking of the smallest group to consolidate the results of the Company. The financial statements of the smallest group are publicly available and can be obtained from 5 Churchill Place, 10th Floor, London, E14 5HU.
The Company's ultimate parent undertaking and the parent of the largest group for which consolidated financial statements are prepared which include the Company is Burns & McDonnell, Inc., incorporated in the United States of America. The consolidated financial statements of the largest group are not publicly available.
Page 33
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