Registered number: 10192806
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 OCTOBER 2025
The Directors present this Strategic Report for RES Energy Services Limited (the “Company” or “RES Energy Services”) for the period ended 31 October 2025. The financial information referred to in this report relates to the statutory financial statements of the Company for the same period.
During the period, the Company changed its accounting reference date in order to align its reporting period with the fiscal year of RES Group, which ends on 31 October. Accordingly, the current reporting period covers the ten months from 1 January 2025 to 31 October 2025, whereas the comparative period covers the twelve months from 1 January 2024 to 31 December 2024. As a result, comparisons with the prior period are not directly like-for-like and should also be considered in the context of the transfer of contracts and business described below.
RES Energy Services Limited is a private company limited by shares, incorporated and registered in England and Wales. The Company’s principal place of business is Third Floor STV, Pacific Quay, Glasgow G51 1PQ.
This Strategic Report has been prepared in accordance with section 414C of the Companies Act 2006 and focuses on matters considered relevant to an understanding of the development, performance, position and future prospects of the Company, with particular emphasis on the Company’s operations and maintenance (“O&M”) activities, financial performance, principal risks and employees.
Where reference is made to the wider group, this refers to RES Group (Renewable Energy Systems Holdings Limited and its subsidiaries).
Overview of RES Energy Services Limited
RES Energy Services Limited operates primarily within the operations and maintenance segment of the renewable energy sector, providing long-term services to support the safe, reliable and efficient operation of renewable energy assets across the UK.
The Company’s activities include scheduled and unscheduled maintenance, management support, performance optimisation, health and safety management and compliance services for onshore wind, offshore wind, solar and energy storage assets. These services are typically delivered under contractual arrangements that provide a recurring base of revenue.
During the period ended 31 October 2025, the Company continued to focus on operational delivery, workforce capability and health and safety performance, recognising that skilled employees and a strong safety culture remain critical to the successful delivery of O&M services.
Sector outlook
The UK renewable energy sector continues to play a central role in the country’s decarbonisation strategy and commitment to achieving net zero emissions by 2050. Demand for O&M services is expected to remain resilient, driven by the growing installed base of renewable assets and the increasing requirement for asset life extension, repowering and performance optimisation.
During the ten-month period ended 31 October 2025, market conditions for O&M services were characterised by:
During the period, the Company changed its accounting reference date in order to align its reporting period with the fiscal year of RES Group, which ends on 31 October. Accordingly, the current reporting period covers the ten months from 1 January 2025 to 31 October 2025, whereas the comparative period covers the twelve months from 1 January 2024 to 31 December 2024. As a result, comparisons with the prior period are not directly like-for-like and should also be considered in the context of the transfer of contracts and business described below.
RES Energy Services Limited is a private company limited by shares, incorporated and registered in England and Wales. The Company’s principal place of business is Third Floor STV, Pacific Quay, Glasgow G51 1PQ.
This Strategic Report has been prepared in accordance with section 414C of the Companies Act 2006 and focuses on matters considered relevant to an understanding of the development, performance, position and future prospects of the Company, with particular emphasis on the Company’s operations and maintenance (“O&M”) activities, financial performance, principal risks and employees.
Where reference is made to the wider group, this refers to RES Group (Renewable Energy Systems Holdings Limited and its subsidiaries).
Overview of RES Energy Services Limited
RES Energy Services Limited operates primarily within the operations and maintenance segment of the renewable energy sector, providing long-term services to support the safe, reliable and efficient operation of renewable energy assets across the UK.
The Company’s activities include scheduled and unscheduled maintenance, management support, performance optimisation, health and safety management and compliance services for onshore wind, offshore wind, solar and energy storage assets. These services are typically delivered under contractual arrangements that provide a recurring base of revenue.
During the period ended 31 October 2025, the Company continued to focus on operational delivery, workforce capability and health and safety performance, recognising that skilled employees and a strong safety culture remain critical to the successful delivery of O&M services.
Sector outlook
The UK renewable energy sector continues to play a central role in the country’s decarbonisation strategy and commitment to achieving net zero emissions by 2050. Demand for O&M services is expected to remain resilient, driven by the growing installed base of renewable assets and the increasing requirement for asset life extension, repowering and performance optimisation.
During the ten-month period ended 31 October 2025, market conditions for O&M services were characterised by:
∙continued growth in operational wind and solar capacity across the UK.
∙increasing focus by asset owners on availability, cost efficiency and safety performance; and
∙ongoing skills shortages in technical and field-based roles.
Looking ahead, the Directors consider that the long-term outlook for O&M services remains positive, supported by regulatory commitment to renewable energy and the increasing maturity of the UK renewable asset fleet.
Page 1
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2025
Principal activities and operations
RES Energy Services Limited delivers O&M services through experienced technical and operational teams based in the UK, supported by central functions including health and safety, quality, finance, legal, procurement and people management.
The Company’s headquarters is located in Glasgow, with operational activity carried out across multiple renewable energy sites in the UK.
Restructuring and transfer of contracts/business during the year
During the period ended 31 October 2025, the Company took on additional contracts and business activities from another RES group company as part of an internal reorganisation. This increased the scale of the Company’s operations and broadened the portfolio of services delivered by RES Energy Services during the period.
The transfer of contracts and related activity formed an important part of the Company’s development in 2025 and, together with the change in accounting reference date, should be considered when reviewing movements in revenue and profitability against the prior period. The uplift in trading activity during the period reflects both the transferred business and underlying performance across the existing O&M portfolio.
Performance during the year
During the period ended 31 October 2025, the Company continued to prioritise the safe and compliant delivery of O&M services, the retention and development of skilled technical employees and the maintenance of service quality for customers. The period also included the integration of additional contracts and business activities transferred into the Company as part of the wider group reorganisation.
The Directors consider that the Company’s diversified O&M portfolio, together with its focus on long-term service contracts, helps mitigate short-term market volatility. The provisional trading outturn for the period shows a material increase in activity compared with the prior year, although the current period is ten months rather than twelve months and is therefore not directly comparable.
RES Energy Services Limited delivers O&M services through experienced technical and operational teams based in the UK, supported by central functions including health and safety, quality, finance, legal, procurement and people management.
The Company’s headquarters is located in Glasgow, with operational activity carried out across multiple renewable energy sites in the UK.
Restructuring and transfer of contracts/business during the year
During the period ended 31 October 2025, the Company took on additional contracts and business activities from another RES group company as part of an internal reorganisation. This increased the scale of the Company’s operations and broadened the portfolio of services delivered by RES Energy Services during the period.
The transfer of contracts and related activity formed an important part of the Company’s development in 2025 and, together with the change in accounting reference date, should be considered when reviewing movements in revenue and profitability against the prior period. The uplift in trading activity during the period reflects both the transferred business and underlying performance across the existing O&M portfolio.
Performance during the year
During the period ended 31 October 2025, the Company continued to prioritise the safe and compliant delivery of O&M services, the retention and development of skilled technical employees and the maintenance of service quality for customers. The period also included the integration of additional contracts and business activities transferred into the Company as part of the wider group reorganisation.
The Directors consider that the Company’s diversified O&M portfolio, together with its focus on long-term service contracts, helps mitigate short-term market volatility. The provisional trading outturn for the period shows a material increase in activity compared with the prior year, although the current period is ten months rather than twelve months and is therefore not directly comparable.
Page 2
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2025
The Directors monitor a small number of financial indicators to assess the performance and position of the business. In particular, the Directors consider turnover, profitability, cash and net assets to be the most relevant indicators for this Company. As the current period covers ten months and the comparative period covers twelve months, and because additional contracts and business were transferred into the Company during 2025, movements in these measures are not directly comparable.
KPI 2025 2024
Turnover / revenue £34,786,006 £12,219,202
(Loss)/profit before tax £(2,000,237) £100,347
Cash at bank and in hand £3,261,184 £174,604
Net assets £12,932,909 £1,155,854
Turnover increased materially following the transfer of additional contracts and business activities into the Company during the period.
KPI 2025 2024
Turnover / revenue £34,786,006 £12,219,202
(Loss)/profit before tax £(2,000,237) £100,347
Cash at bank and in hand £3,261,184 £174,604
Net assets £12,932,909 £1,155,854
Turnover increased materially following the transfer of additional contracts and business activities into the Company during the period.
∙Turnover/revenue for the period was £34,786,006 (2024: £12,219,202), driven by the transfer of additional contracts and business activities into the Company together with strong underlying trading performance across the existing O&M portfolio. This represents a near threefold increase in revenue compared to the prior period, demonstrating the significant growth in the scale and scope of the Company's operations.
∙The enlarged activity base also resulted in a materially higher cost base during the period. Total expenditure was £36,758,610, reflecting the significant investment in people, subcontracting, and operational infrastructure required to deliver the transferred contracts and support the Company's expanded portfolio of services.
∙The result for the period was a loss of £2,000,237. This outcome reflects the one-off costs and operational investment associated with the substantial growth in the Company's activities during the period, including the integration of transferred contracts and the significant increase in headcount from 117 to 244 employees. The Directors view this as a transitional position and remain confident in the long-term earnings potential of the expanded portfolio.
∙The Company benefits from the full support of its parent company, Renewable Energy Systems Holdings Limited, which has provided a formal letter of support confirming its commitment to provide ongoing financial assistance to enable the Company to meet its obligations as they fall due. The Directors are therefore satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future, and the financial statements have been prepared on a going concern basis accordingly.
∙The balance sheet at 31 October 2025 reported cash at bank and in hand of £3,261,184 and net assets of £12,932,909 (2024: cash at bank and in hand of £174,604 and net assets of £1,155,854), reflecting a materially stronger balance sheet position compared to the prior year. The significant increase in net assets is primarily attributable to the share capital injection of £13,893,323 completed in April 2025, which substantially strengthened the Company's equity base and financial position.
Page 3
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2025
Economic and cost environment
The UK economy continues to experience cost pressures arising from inflation, labour market constraints and supply chain volatility. These factors can affect operating costs and margins within O&M contracts.
The Company mitigates these risks through active cost management, contract review, supplier diversification and ongoing monitoring of procurement strategies.
People and skills risk
The availability and retention of suitably skilled technical employees remain a key risk for O&M operations. Competition for experienced technicians and engineers continues to place pressure on recruitment and wage costs.
The Company seeks to mitigate this risk through targeted recruitment, structured training programmes, performance management processes and initiatives aimed at employee engagement and retention.
Health and safety
O&M activities involve field-based work in operational environments, making health and safety a critical risk area.
The Company maintains a strong focus on health, safety, quality and environmental management through dedicated HQSE processes, regular training, incident monitoring and continuous improvement initiatives.
Supply chain and procurement
Global supply chain uncertainty and the availability of specialist components can affect maintenance activities.
The Company continues to work with approved suppliers, maintain contingency arrangements and require compliance with the RES Group Code of Conduct.
Environmental, health and quality matters
Environmental stewardship, health and safety, and quality management are integral to the Company’s O&M operations.
The Company is committed to:
The UK economy continues to experience cost pressures arising from inflation, labour market constraints and supply chain volatility. These factors can affect operating costs and margins within O&M contracts.
The Company mitigates these risks through active cost management, contract review, supplier diversification and ongoing monitoring of procurement strategies.
People and skills risk
The availability and retention of suitably skilled technical employees remain a key risk for O&M operations. Competition for experienced technicians and engineers continues to place pressure on recruitment and wage costs.
The Company seeks to mitigate this risk through targeted recruitment, structured training programmes, performance management processes and initiatives aimed at employee engagement and retention.
Health and safety
O&M activities involve field-based work in operational environments, making health and safety a critical risk area.
The Company maintains a strong focus on health, safety, quality and environmental management through dedicated HQSE processes, regular training, incident monitoring and continuous improvement initiatives.
Supply chain and procurement
Global supply chain uncertainty and the availability of specialist components can affect maintenance activities.
The Company continues to work with approved suppliers, maintain contingency arrangements and require compliance with the RES Group Code of Conduct.
Environmental, health and quality matters
Environmental stewardship, health and safety, and quality management are integral to the Company’s O&M operations.
The Company is committed to:
∙maintaining compliance with applicable environmental and health and safety legislation.
∙promoting safe working practices across operational sites.
∙supporting the wider group ambition to reduce environmental impact and progress towards carbon-neutral operations;
∙maintaining quality standards that support reliable service delivery for customers.
Performance in these areas is monitored through internal management processes and reviewed regularly in support of continuous improvement.
Page 4
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2025
Employees are central to the Company’s ability to deliver high-quality O&M services. The Company’s people strategy focuses on creating a safe, inclusive and supportive working environment and on maintaining the technical capability required to support customers effectively.
Key areas of focus during the year included:
∙attracting and retaining skilled O&M professionals.
∙providing ongoing technical training and professional development.
∙promoting diversity, inclusion and employee wellbeing; and
∙maintaining open communication and engagement with employees.
The Directors consider that continued investment in people and safety culture supports both operational resilience and the long-term sustainability of the business.
This report was approved by the board and signed on its behalf.
Page 5
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 OCTOBER 2025
The Directors present their report and the financial statements for the period ended 31 October 2025.
The loss for the period, after taxation, amounted to £2,116,268 (2024 - profit £75,481).
The Directors who served during the period were:
The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements 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 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 to 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.
The Company has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 to set out within the company's Strategic Report the Company's Report Information Required by Schedule 7 of the Large and Medium Sized Companies (Accounts and Reports) Regulations 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.
Page 6
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2025
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
Page 7
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RES ENERGY SERVICES LIMITED
We have audited the financial statements of RES Energy Services Limited (the 'Company') for the period ended 31 October 2025, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position 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 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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.
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.
Page 8
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RES ENERGY SERVICES LIMITED (CONTINUED)
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 period 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.
Page 9
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RES ENERGY SERVICES 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:
The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:
∙The Companies Act 2006;
∙Financial Reporting Standard 102;
∙UK employment legislation;
∙UK health and safety legislation; and
∙UK Data Protection Regulations.
We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
∙Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
∙Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
∙Challenging assumptions and judgments made by management in its significant accounting estimates; and
∙Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
∙Posting of journals to the accounting software which are of a non-routine nature in terms of timing and amount; and
∙Estimates adopted by management in connection with the recognition of a stock provision, warranty and contract provisions.
∙Timing of revenue recognition
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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RES ENERGY SERVICES LIMITED (CONTINUED)
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
Chartered Accountants
Statutory Auditor
2nd Floor, Origin One
108 High Street
RH10 1BD
Page 11
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE PERIOD ENDED 31 OCTOBER 2025
Page 12
STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 29 form part of these financial statements.
Page 13
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2025
RES Energy Services Limited (Formerly Ingeteam UK Limited) is a private Company limited by shares, incorporated in the United Kingdom under the Companies Act 2006, and is registered in England & Wales. The address of the Company's registered office is disclosed on the Company information page. The Company's principal place of business is disclosed in the Strategic Report.
The Company has changed its accounting reference date from 31 December to 31 October to align with the overall group. These financial statements present the activity of the company for the 10 month period ended 31 October 2025 which are not entirely comparable to the previous 12 months ended 31 December 2024.
The Company has changed its accounting reference date from 31 December to 31 October to align with the overall group. These financial statements present the activity of the company for the 10 month period ended 31 October 2025 which are not entirely comparable to the previous 12 months ended 31 December 2024.
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 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 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 Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Renewable Energy Systems Holdings Limited as at 31 October 2025 and these financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.
Renewable Energy Systems Holdings Limited, the parent company, has confirmed that they will provide ongoing financial support for a period of at least 12 months from signing of the financial statements, so that the entity can continue to meet its financial obligations as they fall due.
As a result, the Directors continue to adopt the going concern basis of accounting in preparing the annual financial statements as they have a reasonable expectation that the Company has adequate resources to continue operational existence for the foreseeable future.
As a result, the Directors continue to adopt the going concern basis of accounting in preparing the annual financial statements as they have a reasonable expectation that the Company has adequate resources to continue operational existence for the foreseeable future.
Page 14
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2025
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Revenue on maintenance contracts is recognised evenly over the term of the contract.
Revenue on service contracts is recognised on the date that the service is provided.
Revenue on corrective works or projects which include milestones is recognised in line with the degree of completion based on costs incurred.
Revenue on corrective works or projects which include milestones is recognised in line with the degree of completion based on costs incurred.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2025
2.Accounting policies (continued)
An outflow of funds will probably be necessary to settle the obligation, and the amount may be reliably estimated. Provisions are not recognised for future operating losses.
Any provisions which are recognised are carried at the present value of forecast payments that are expected to be required to settle the obligation, using a rate before taxes that reflects the current market assessment of the time value of money and the specific risks of the obligation. Adjustments to the provision as a result of updating are recognised as a financial expense as they accrue.
Meanwhile, contingent liabilities are those possible liabilities arising as a result of past events, whose materialisation depends on whether future events that are beyond the control of the Company occur or not.
These contingent liabilities are not recognised in the financial statements, but provisions for liquidated damages are disclosed in note 22.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2025
2.Accounting policies (continued)
Contractual customer relationships
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The estimated useful lives range as follows:
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Income and Retained Earnings.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Company only enters into basic financial instrument transactions that result in the recognition of financial
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2025
2.Accounting policies (continued)
assets and liabilities such as trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:
Provision for liquidated and compensation damages, warranty, and other provisions
The Company recognises provisions for risks of incurring liquidated and compensation damages, warranty claims, and other provisions in accordance with the accounting policy indicated in Note 2.9 of these financial statements. The Company has made judgements and estimates regarding the probability of occurrence of such risks, as well as the amount thereof, and has recorded a provision when the risk has been considered probable, estimating the costs that would give rise to such obligation.
Provision for onerous contracts
The Company recognises provisions for risks of onerous contracts. A contract is considered onerous when the unavoidable costs of meeting the obligations under the contract exceed the expected economic benefits to be received.
Revenue and margin recognition
The Company's revenue and margin recognition policies are set out in note 2. These policies require forecasts of outcomes of long term service contracts. Revenue and margins are calculated based on the percentage completion of contract, which is based on costs incurred as a proportion of total contract costs, as this indicates the proportion of performance obligation complete. All costs associated with each contract are estimated using cost quotations specific to the contract. The range of potential outcomes as a result of uncertain future events could result in a materially positive or negative swing to profitability and cash flow. The Company updates its total cost estimate whenever new information arises.
Page 18
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2025
Page 19
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2025
Page 20
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2025
Page 21
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2025
11.Taxation (continued)
The Company has unrelieved losses carried forward of £2.4m, which no deferred tax asset has been recognised (2024 - £nil). There were no other factors that may affect future tax charges.
Page 22
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2025
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Page 24
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2025
A total of 13,893,323 new ordinary shares of £1 each were allotted to RES Global Services Holdings Limited, the sole shareholder and parent company, and was fully paid as at 29 April 2025 at par value in by way of capitalisation of intercompany balance.
Profit and loss account
The comparative Statement of Income and Retained Earnings and Detailed Profit and Loss Account have been restated, and this affected the presentation only.
The restatement has been recognised to reclassify direct gross wages, employers NIC and employers pension costs from administrative expenses to cost of sales totalling £4,804,381 which has also reduced gross profit by this value.
This adjustment has therefore increased cost of sales by £4,804,381 and administrative expenses have reduced by £4,804,381. This has had no impact to the opening reserves as at 1 January 2025.
The restatement has been recognised to reclassify direct gross wages, employers NIC and employers pension costs from administrative expenses to cost of sales totalling £4,804,381 which has also reduced gross profit by this value.
This adjustment has therefore increased cost of sales by £4,804,381 and administrative expenses have reduced by £4,804,381. This has had no impact to the opening reserves as at 1 January 2025.
Provision for liquidated and compensation damages and other provisions
The Company recognises provisions for risks of incurring liquidated and compensation damages and other provisions in accordance with the accounting policy indicated in Note 2.9 of these financial statements. The Company has made judgements and estimates regarding the probability of occurrence of such risks, as well as the amount thereof, and has recorded a provision when the risk has been considered probable, estimating the costs that would give rise to such obligation.
The Company recognises provisions for risks of incurring liquidated and compensation damages and other provisions in accordance with the accounting policy indicated in Note 2.9 of these financial statements. The Company has made judgements and estimates regarding the probability of occurrence of such risks, as well as the amount thereof, and has recorded a provision when the risk has been considered probable, estimating the costs that would give rise to such obligation.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £361,614 (2024 - £95,926). Contributions totalling £135,754 (2024 - £19,017) were payable to the fund at the reporting date and are included in creditors.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2025
As at the year end, the parent undertaking of the smallest group is Renewable Energy Systems Limited, a Company incorporated in the United Kingdom. The parent undertaking of the largest group, which includes the Company and for which consolidated financial statements are prepared, is Renewable Energy Systems Holdings Limited, a Company incorporated in the United Kingdom. The address of their registered office is: Beaufort Court, Egg Farm Lane Off Station Road, Kings Langley, Hertfordshire, WD4 8LR.
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