REGISTERED NUMBER: 07407919 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025

FOR

AB REFRIGERATION CONTRACTING LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

N A Bromley

J Espin

J Washington

Ms L N Dilger

REGISTERED OFFICE:

Bank Chambers

2 Church Street

Reigate

Surrey

RH2 0AN

REGISTERED NUMBER:

07407919 (England and Wales)

AUDITORS:

Vista Audit LLP

Chartered Accountants

Statutory Auditor

Chancery House

3 Hatchlands Road

Redhill

Surrey

RH1 6AA

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

REVIEW OF BUSINESS AND KEY PERFORMANCE INDICATORS

The company has three service divisions and the directors consider that the key financial performance indicators are those that monitor the performance in respect of each of these divisions. The revenue of the company from the rendering of services analysed by division is as follows:

2025

2024

£

£

Construction including design

24,851,121

17,255,200

Refrigeration

8,357,751

3,908,000

Mechanical

5,376,370

5,479,950

38,585,242

26,643,150

Overall sales have seen an increase of £11.9m from 2024, an uplift of 45%. £7.6m of the increase was in the construction division and the remainder in the refrigeration division.

The directors also monitor gross profit margin as another key performance indicator and this remains consistent with last year at 24%. The company continues to widen its supplier base and implement steps to introduce efficiencies with the intention of improving its gross profit margin in challenging economic conditions.

The company is committed to delivering high-quality, industry recognised services in an efficient and effective way, they focus on client service, innovation and, above all, quality has driven their position in the market and the relationships they have with key stakeholders in the fit-out supply chain.

Due to the nature of its projects and good relationships with key customers there is generally good visibility over future business. They track these opportunities on a weekly basis, using management information tools.

PRINCIPAL RISKS AND UNCERTAINTIES

The company faces a number of business risks and uncertainties due to trading conditions and new competition. In view of this, the directors look carefully at both existing and potential new markets. In particular the following key risks have been identified together with the company's approach to mitigating those risks.

Changes in technology

In terms of energy saving solutions, the industry is fast moving and there are risks associated with investing too heavily in designing an energy saving solution for the retail industry that then becomes obsolete. In particular, this can lead to wasted development costs and the opportunity cost of time that could have been invested in other areas. There is also a reputational risk in providing customers with less energy efficient designs.

The company continues to monitor advances within its trade and is aware of updates in technology and is working closely with experts in energy saving technology which allows identification of trends and continued enhancement of its energy saving solutions to its customers.

New entrants to the market

The barriers to entry for the industry are fairly low and new entrants who specialise in providing only one service can make cost savings. New entrants can therefore potentially offer low selling prices to gain initial market share which would directly affect sales.

However the company has an established, loyal, customer base who carry out a comprehensive review of performance and financial stability of their suppliers in order for them to become approved. These customers also prefer to deal with a single supplier for a range of services.

PRINCIPAL RISKS AND UNCERTAINTIES - CONTINUED

Exposure to bad debts

The directors minimise the exposure to this risk by regular management reviews of trade debts and the credit worthiness of key customers.

Delivery risk

The aim of the company is to satisfy the requirements of its customers, stakeholders and interested parties by delivering its services safely, on time, within budget and to the highest quality.

The directors recognise the importance of innovation in design and delivery of customer expectations to maintain a competitive advantage. Customer management is vital for a successful business together with an understanding of the marketplace and implementation of effective marketing and sales activities.

The company continues to focus on delivering its customer's expectations in the most efficient way possible, monitoring resource requirements to ensure the business can operate efficiently and effectively.

Non-conformance procedures are used to record any actual or potential shortfalls in quality standards or internal processes / procedures that may threaten its delivery success, and action taken to ensure improvements have taken place, or potential problems avoided. The preventative action taken in order to avoid recurrence of any such activities is similarly recorded.

Price risk

The company has basic financial instruments. The company's financial assets comprise cash, trade debtors, other debtors, amounts advanced to directors and amounts owed by group undertakings. The company's financial liabilities comprise hire purchase contracts, trade creditors, other creditors, accruals and deferred income. Due to the nature of the financial instruments used by the company there is minimal exposure to price risk.

Interest rate risk

The company's interest rate exposure arises mainly from its interest-bearing borrowings. However, all existing borrowings are on a fixed rate; therefore the risk is deemed to be minimal. Furthermore, the directors regularly review the company's funding arrangements to ensure they are competitive.

Credit risk

Credit risk is the risk that of financial loss to the company on failure of a customer or counterparty to meet their obligations as they fall due. The company is exposed to credit risk primarily in respect of its trade debtors and cash.

Exposure to credit risk in respect of trade debtors is mitigated through regularly reviewing trade debtors and periodically reassessing customers' credit limits. In respect of cash, the counterparty is one of the major banks in England and management do not expect the bank to fail to meet its obligations.

Liquidity/ cashflow risk

The objective of the company in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The company monitors its ability to meet its financial obligations through rolling profit and cash flow projections. In the unlikely event that operating cash flows did not cover all the financial obligations, the company has credit facilities available and further support from its Directors. The company has successfully secured loans after the balance sheet date to provide additional working capital to further mitigate this risk.

ON BEHALF OF THE BOARD:

J Espin - Director

24 July 2026

The directors present their report with the financial statements of the company for the year ended 31 October 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the provision of integrated design and construction services, including refrigeration, mechanical and electrical installations.

DIVIDENDS

No dividends will be distributed for the year ended 31 October 2025.

RESEARCH AND DEVELOPMENT

The company's innovation-led approach is helping to ensure the reliability and efficiency of a wide range of heating and cooling systems. The company continues to invest in people. The company's in-house design and engineering teams, utilise the latest tools to calculate technical requirements. The company has been able to resolve technological uncertainty and deliver advancements that lead to safer, more efficient refrigeration and HVAC services. The company continues to carry out research and development activities and continually pushing boundaries of designing a heating and cooling system that is suitable for customer's requirements.

FUTURE DEVELOPMENTS

The directors anticipate that the business environment will remain competitive, with careful focus on appropriate diversification in addition to constant monitoring of its market and the activities of competitors, the directors are confident in the company's ability to maintain and build on its position, albeit with cautious growth expectations.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 November 2024 to the date of this report.

N A Bromley

J Espin

J Washington

Other changes in directors holding office are as follows:

Ms L N Dilger - appointed 28 April 2025

FINANCIAL INSTRUMENTS

The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are summarised in the strategic report. The company does not enter into any formally designated hedging arrangements.

GOING CONCERN

The accounts have been prepared on a going concern basis. In determining the appropriate basis for the preparation of the financial statements, the directors are required to consider whether the company can continue in operational existence for the foreseeable future, this being a period of at least 12 months from the date of the approval of these financial statements.

The company has considered its most recent board-approved forecasts to carry out its assessment. The forecasts prudently assume reduced levels of turnover and gross profit margin coupled with implemented reductions in overhead expenditure. The company has secured additional short-term funding after the year end and has further support available if required.

Having given due consideration to the above analysis, the directors are satisfied that the company has adequate resources to meet its liabilities as and when they fall due in the 12 months following the date of approval of the financial statements. Accordingly they continue to adopt the going concern basis in preparing these financial statements.

DISCLOSURE IN THE STRATEGIC REPORT

Information on financial exposure and risk management is disclosed within the Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Vista Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J Espin - Director

24 July 2026

Opinion

We have audited the financial statements of AB Refrigeration Contracting Limited (the 'company') for the year ended 31 October 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 October 2025 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

Extent to which the audit was considered capable of detecting irregularities, including fraud 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.

The objectives of our audit:

-

in respect of fraud, are to identify and assess the risks of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management; and

-

in respect of irregularities, considered to be non-compliance with laws and regulations, are to obtain sufficient appropriate audit evidence regarding compliance with the provisions of those laws and regulations generally recognised to have a direct effect on the determination of material amounts and disclosures in the financial statements, and perform other audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements. We are not responsible for preventing non-compliance with laws and regulations and our audit procedures cannot be expected to detect non-compliance with all laws and regulations.

Our approach was as follows:

-

The senior statutory auditor ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; and

-

Obtaining an understanding of the entity's risk assessment process, including the risk of fraud. Designing our audit procedures to respond to our risk assessment; and

-

Performing analytical procedures to identify any unusual or unexpected transactions. Obtaining an understanding and testing the assumptions and calculations involved in the recognition of contracts, including cost allocation testing and a review of the completeness of provisions for loss making contracts; and

-

Assessing whether judgements and assumptions made in determining the accounting estimates set out in note 4 were indicative of potential bias; and

-

Performing audit testing 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

-

We determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (FRS 102), the UK Companies Act and tax legislation; and

-

We identified the key laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid material penalty. These included the Bribery Act, the Data Protection Act 2018, UK employment law, environmental health and safety legislation.

We obtained a general understanding of how the company complies with these legal and regulatory frameworks by making enquiries of management and those responsible for legal and compliance matters. We also reviewed minutes of the Board and gained an understanding of the company's approach to governance.

There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. The primary responsibility for the prevention and detection of fraud rests with those charged with governance of the group and parent company and management. We are not responsible for preventing non-compliance with laws and regulations and our audit procedures cannot be expected to detect non-compliance with all laws and regulations.

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.

Susan Jones FCA (Senior Statutory Auditor)

for and on behalf of Vista Audit LLP

Chartered Accountants

Statutory Auditor

Chancery House

3 Hatchlands Road

Redhill

Surrey

RH1 6AA

24 July 2026

TURNOVER

5

38,585,242

26,643,150

Cost of sales

29,523,391

20,149,488

GROSS PROFIT

9,061,851

6,493,662

Administrative expenses

5,629,466

4,728,650

3,432,385

1,765,012

Other operating income

111,266

108,919

OPERATING PROFIT

7

3,543,651

1,873,931

Provision for uncollectible

receivables

8

17,929

420,099

3,525,722

1,453,832

Interest receivable and similar income

121,171

56,132

3,646,893

1,509,964

Interest payable and similar expenses

9

94,133

26,411

PROFIT BEFORE TAXATION

3,552,760

1,483,553

Tax on profit

10

789,092

245,034

PROFIT FOR THE FINANCIAL YEAR

2,763,668

1,238,519

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,763,668

1,238,519

FIXED ASSETS

Tangible assets

12

370,860

271,215

CURRENT ASSETS

Debtors

13

13,876,493

10,395,294

Cash at bank

549,995

1,737,528

14,426,488

12,132,822

CREDITORS

Amounts falling due within one year

14

9,129,887

9,606,046

NET CURRENT ASSETS

5,296,601

2,526,776

TOTAL ASSETS LESS CURRENT LIABILITIES

5,667,461

2,797,991

CREDITORS

Amounts falling due after more than one year

15

(170,432

)

(103,491

)

PROVISIONS FOR LIABILITIES

19

(69,097

)

(30,236

)

NET ASSETS

5,427,932

2,664,264

CAPITAL AND RESERVES

Called up share capital

20

100

100

Retained earnings

21

5,427,832

2,664,164

SHAREHOLDERS' FUNDS

5,427,932

2,664,264

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

J Espin - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 November 2023

100

2,055,645

2,055,745

Changes in equity

Dividends

-

(630,000

)

(630,000

)

Total comprehensive income

-

1,238,519

1,238,519

Balance at 31 October 2024

100

2,664,164

2,664,264

Changes in equity

Total comprehensive income

-

2,763,668

2,763,668

Balance at 31 October 2025

100

5,427,832

5,427,932

1.	STATUTORY INFORMATION

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

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

All amounts in the financial statements have been rounded to the nearest £.

2.	STATEMENT OF COMPLIANCE

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

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis. In preparing the financial statements the Directors have taken into account available information regarding the twelve month period from the date of approval of the financial statements. The company has used its most recent board approved forecasts to 31 October 2027 to carry out an assessment of the ability of the company to fund its plans for a period of at least twelve months from the issuance of these financial statements. These cash flow forecasts have considered typical cash cycles and levels of turnover.

Having given due consideration to the above analysis, the directors of the company have a reasonable expectation that the company has adequate resources to meet its liabilities as and when they fall due in the twelve months following the date of approval of the financial statements. In addition, the company has obtained loans since the balance sheet date to provide additional working capital. The directors of the company have therefore adopted the going concern basis in preparing these financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be measured reliably. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, VAT and other sales taxes.

Revenue in respect of contracts is recognised in accordance with the stage of completion of contractual obligations to the client. The stage of completion of the contract at the reporting date is assessed by reference to the value of work done, which is based on a third party survey.

If the outcome of a contract can be assessed reliably, contract revenue and associated costs are recognised as revenue and costs respectively by reference to the percentage of completion of the contract activity at the reporting date. Full provision is made for losses on all contracts in the period in which the loss is first foreseen.

If the outcome of a contract cannot be assessed reliably, contract revenue is recognised only to the extent of contract costs incurred that it is probable (i.e. more likely than not) will be recoverable and contract costs are recognised in the period in which they are incurred.

The amount by which recorded turnover is in excess of payments on account is classified in the accounts as 'Amounts recoverable on contracts' and is included in 'Debtors'.

The balance of payments on account, which are in excess of amounts matched with turnover, are classified as 'Payments on account - contracts' and are separately disclosed within creditors falling due within one year.

Interest income

Interest income is recognised using the effective interest rate method.

Tangible fixed assets

Tangible fixed assets, held for the company's own use, are stated at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Leasehold property -Over the lease term

Plant and machinery etc -25% or 50% on cost and 25% on reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed annually and are adjusted if appropriate, or if there is an indication of significant change since the last reporting date.

Profits and losses on disposal of assets are determined by comparing the proceeds with the carrying amounts and are recognised in profit or loss.

Financial instruments

All basic financial assets and liabilities are initially measured at transaction price, including transaction costs, except for those financial assets classified at fair value through profit or loss, which are initially measured at fair value (at transaction price excluding transaction costs) unless the arrangement constitutes a financing transaction.The company has no financial assets or financial liabilities measured at fair value. Alternative the company has external borrowings it is not exposed to risk arising from the interest rate, as all of the borrowings are at a fixed rate of interest.

Financial assets and financial liabilities are only offset in the company balance sheet when, and only when, there is a legally enforceable right to set off the recognised amounts and the company intends to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Basic financial assets and liabilities are subsequently carried at their amortised cost less any provision for impairment unless the arrangement constitutes a financing transaction where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Interest bearing borrowings

Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs.

Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest method.

Creditors

Short-term creditors are measured at transaction price. Other financial liabilities, including other loans, are measured initially at fair value, net of transaction costs, and are subsequently measured at amortised cost using the effective interest method.

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are subsequently measured at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash is represented by cash on hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

Finance leases: Company as lessee

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

For assets held under finance leases when the company acts as lessee, the finance leases are capitalised and disclosed under tangible fixed assets at their fair value, or, if lower, the present value of the minimum lease payments. The capital element of the future payments is treated as a liability in the balance sheet and the interest is charged to profit or loss using the effective interest method. Assets which are held under finance leases are depreciated in the same manner as owned assets. If there is no reasonable certainty that the company will obtain ownership at the end of the lease term, the asset is fully depreciated over the shorter of the lease term and its useful life.

Lease payments are apportioned between capital repayment and finance charge, using the effective interest rate method, to produce a constant rate of charge on the balance of the capital repayments outstanding.

Operating leases: Company as lessee

Operating lease rentals are charged to the company profit and loss account on a straight-line basis over the lease term, except where the directors consider that another systematic basis would be more representative of the time pattern in which the economic benefits associated with the leased asset are consumed. Contingent rentals which arise under operating lease agreements are recognised as an expense in the period in which they are incurred. Lease incentives are recognised on a straight-line basis over the lease term.

Pension costs

The company operates a defined contribution pension plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a scheme whose assets are held separately in independently administered funds. Once the contributions have been paid, the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are presented as other creditors within creditors falling due within one year. Amounts paid in excess of contributions due are shown as prepayments within current assets.

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which has accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.

4.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, which are described in note 3, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

In the directors' opinion, the following are the critical judgements (excluding those involving estimations which are shown below) which have the most significant effect on the amounts recognised in the company's financial statements:

Critical judgement

Recognition of service and construction contract revenues

The company enters into contracts for the design and installation of refrigeration units in exchange for a fixed fee and recognises the related revenue over time. To depict the progress by which the company transfers control of the refrigeration units to the customer, and establish when and to what extent revenue can be recognised, the company measures its progress towards complete satisfaction of the performance obligation by obtaining a third party survey. If a third party survey is not available, revenue is assessed by management's best estimate of stage of completion. This includes the assessment of the profitability of on-going contracts and comparing actual costs incurred to date with the total estimated costs to complete, which are subject to significant estimation.

Recoverability of accrued income under contracts

The directors considered the recoverability of the company's accrued income under contracts which is included in the balance sheet date at £2,446,625 (2024: £953,326). The directors review the invoices raised after the balance sheet date and whether these invoices have been settled promptly on presentation. Based on these reviews, the directors are satisfied with the recoverability of accrued income under contracts at the balance sheet date.

Provision for uncollectible receivables

In determining whether there are indicators of impairment of the company's financial assets, as described in note 8 to the financial statements, the directors have decided to recognise a provision for uncollectible receivables of £274,722 in relation to amounts advanced to companies with common directors. The decision was made on the basis that it is more likely that these amounts will not be recovered.

Key sources of estimation uncertainty

Other key sources of estimation uncertainty which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities in the next financial year are as follows:

Depreciation of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates.

Impairment of tangible assets

In determining whether there are indicators of impairment of the company’s tangible assets factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Leases

In determining whether leases entered into by the company either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

5.

TURNOVER

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

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

2025

2024

£

£

Construction including design

24,851,121

17,255,200

Refrigeration

8,357,751

3,908,000

Mechanical

5,376,370

5,479,950

38,585,242

26,643,150

A further analysis of the company's turnover is as follows:

2025

2024

£

£

Contract revenue

38,585,242

26,643,150

6.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,834,369

2,492,043

Social security costs

418,208

317,804

Other pension costs

300,992

167,103

3,553,569

2,976,950

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

2025

2024

Head office

19

13

Refrigeration division

7

7

Mechanical division

4

4

Design and consultancy division

5

5

Construction division

19

19

Directors

4

3

58

51

2025

2024

£

£

Directors' remuneration

260,727

139,338

Directors' pension contributions to money purchase schemes

121,108

58,321

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

Money purchase schemes

4

3

Information regarding the highest paid director for the year ended 31 October 2025 is as follows:

2025

£

Emoluments etc

110,550

Pension contributions to money purchase schemes

30,550

7.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Depreciation - owned assets

59,128

47,659

Depreciation - assets on hire purchase contracts

46,961

48,934

Loss on disposal of fixed assets

11,722

-

Auditors' remuneration

41,700

36,750

Foreign exchange differences

1,707

571

R&D Expenditures

166,223

-

8.	PROVISION FOR UNCOLLECTIBLE RECEIVABLES

2025

2024

£

£

Provision for uncollectible receivables

274,722

420,099

Reversal of provision in prior years

(256,793

)

-

17,929

420,099

The above provision relates to amounts owed to the company which the directors consider highly unlikely to be recovered.

9.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

1,618

7,561

Other interest

76,236

1,838

Hire purchase interest

16,279

17,012

94,133

26,411