REGISTERED NUMBER: 10341206 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

FOR

LGS HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Statement of Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTORS:

K R Childs

P R Hart

P A Pannell

C J Prior

REGISTERED OFFICE:

Russell Gardens

Wickford

Essex

SS11 8BH

REGISTERED NUMBER:

10341206 (England and Wales)

AUDITORS:

Goldwyns Limited

Statutory Auditors and Chartered Accountants

1 Nelson Mews

Southend on Sea

Essex

SS1 1AL

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

REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS

The business continues to benefit from employee ownership, and we are experiencing increased engagement from all co-owners year on year. We feel that these higher levels of engagement have hugely contributed to achieving improved customer service as well as increasing output levels on our core products to the highest levels in the company's history.

Our collective focus on KPI's has sustained a respectful performance for the year despite the challenges within the sector. We have navigated through these challenges and are extremely satisfied that the business remains in a strong position for growth plans.

KEY PERFORMANCE INDICATORS

The directors use the following key performance indicators to monitor the performance of the business:

2025

2024

Turnover

33,504,442

34,840,095

Profit before tax

44,556

302,305

Gross profit margin

11.12%

12.21%

PRINCIPAL RISKS AND UNCERTAINTIES

The group is subject to the normal commercial risks that arise in the ordinary course of business. These risks are reviewed by the directors as part of their ongoing corporate governance procedures.

The group continues to have access to a level of bad debt protection that the directors consider to be adequate.

The directors are satisfied with the internal controls and processes in place that control the level of uninsured bad debt. The directors acknowledge that there is always an element of risk involved when accepting orders on a credit basis and, no matter how many controls and checks are in place, the risk of bad debts cannot be entirely eliminated.

ON BEHALF OF THE BOARD:

P A Pannell - Director

24 July 2026

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

DIVIDENDS

The directors recommend that no final dividends be paid.

DIRECTORS

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

K R Childs

P R Hart

P A Pannell

C J Prior

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

P A Pannell - Director

24 July 2026

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 October 2025 and of the group's loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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. In order to address the risks of misstatements in respect of irregularities, including fraud, we have:

-

obtained an understanding of the key laws and regulations applicable to the group, including the Companies Act 2006, and applicable taxation legislation;

-

assessed the group's own internal controls and systems for the prevention and detection of irregularities and particularly the control environment within which they operate;

-

determined a materiality level and audit approach sufficient to identify most irregularities, including fraud, that may occur;

-

considered our own involvement in the preparation of the group's statutory financial statements and taxation returns;

-

conducted audit verification work, on a sample basis, on the key audit areas and risks we have identified; and

-

reflected on the outcome of our work, and the likelihood that conclusions drawn may be indicative of other areas of potential irregularity.

We therefore consider our audit approach has been sufficient to detect material irregularities, including fraud.

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.

Robert Howe BEng FCA (Senior Statutory Auditor)

for and on behalf of Goldwyns Limited

Statutory Auditors and Chartered Accountants

1 Nelson Mews

Southend on Sea

Essex

SS1 1AL

24 July 2026

TURNOVER

33,504,442

34,840,095

Cost of sales

29,777,610

30,586,280

GROSS PROFIT

3,726,832

4,253,815

Administrative expenses

3,588,146

3,886,599

138,686

367,216

Other operating income

-

1,015

OPERATING PROFIT

4

138,686

368,231

Interest receivable and similar income

25,600

6

164,286

368,237

Interest payable and similar expenses

6

119,730

65,932

PROFIT BEFORE TAXATION

44,556

302,305

Tax on profit

7

69,550

163,624

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(24,994

)

138,681

OTHER COMPREHENSIVE INCOME

Employee ownership trust contribution

(150,000

)

(111,000

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(150,000

)

(111,000

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(174,994

)

27,681

(Loss)/profit attributable to:

Owners of the parent

(24,994

)

138,681

Total comprehensive income attributable to:

Owners of the parent

(174,994

)

27,681

FIXED ASSETS

Intangible assets

9

231,703

463,887

Tangible assets

10

3,731,878

4,405,095

Investments

11

-

-

3,963,581

4,868,982

CURRENT ASSETS

Stocks

12

4,273,541

4,665,751

Debtors

13

4,992,587

5,645,474

Cash at bank and in hand

3,934,463

2,173,407

13,200,591

12,484,632

CREDITORS

Amounts falling due within one year

14

9,685,049

9,297,048

NET CURRENT ASSETS

3,515,542

3,187,584

TOTAL ASSETS LESS CURRENT LIABILITIES

7,479,123

8,056,566

CREDITORS

Amounts falling due after more than one year

15

(1,108,885

)

(1,345,893

)

PROVISIONS FOR LIABILITIES

18

(880,923

)

(1,046,364

)

NET ASSETS

5,489,315

5,664,309

CAPITAL AND RESERVES

Called up share capital

19

2,000,100

2,000,100

Retained earnings

20

3,489,215

3,664,209

SHAREHOLDERS' FUNDS

5,489,315

5,664,309

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:

P A Pannell - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

6,834,054

6,834,054

6,834,054

6,834,054

CURRENT ASSETS

Debtors

13

51

51

NET CURRENT ASSETS

51

51

TOTAL ASSETS LESS CURRENT LIABILITIES

6,834,105

6,834,105

CAPITAL AND RESERVES

Called up share capital

19

2,000,100

2,000,100

Retained earnings

20

4,834,005

4,834,005

SHAREHOLDERS' FUNDS

6,834,105

6,834,105

Company's profit for the financial year

150,000

111,000

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:

P A Pannell - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 November 2023

2,000,100

3,636,528

5,636,628

Changes in equity

Profit for the year

-

138,681

138,681

Other comprehensive income

-

(111,000

)

(111,000

)

Total comprehensive income

-

27,681

27,681

Balance at 31 October 2024

2,000,100

3,664,209

5,664,309

Changes in equity

Deficit for the year

-

(24,994

)

(24,994

)

Other comprehensive income

-

(150,000

)

(150,000

)

Total comprehensive income

-

(174,994

)

(174,994

)

Balance at 31 October 2025

2,000,100

3,489,215

5,489,315

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 November 2023

2,000,100

4,834,005

6,834,105

Changes in equity

Profit for the year

-

111,000

111,000

Other comprehensive income

-

(111,000

)

(111,000

)

Balance at 31 October 2024

2,000,100

4,834,005

6,834,105

Changes in equity

Profit for the year

-

150,000

150,000

Other comprehensive income

-

(150,000

)

(150,000

)

Balance at 31 October 2025

2,000,100

4,834,005

6,834,105

Cash flows from operating activities

Cash generated from operations

1

2,113,331

460,468

Interest paid

(119,730

)

(65,932

)

Tax paid

245,128

(206,754

)

Net cash from operating activities

2,238,729

187,782

Cash flows from investing activities

Purchase of tangible fixed assets

(49,603

)

(2,198,957

)

Sale of tangible fixed assets

3,833

83,025

Interest received

25,600

6

Net cash from investing activities

(20,170

)

(2,115,926

)

Cash flows from financing activities

New hire purchase loans in year

-

1,544,028

Loan notes and hire purchase repayments

(307,503

)

(282,067

)

Employee ownership trust contribution

(150,000

)

(111,000

)

Net cash from financing activities

(457,503

)

1,150,961

Increase/(decrease) in cash and cash equivalents

1,761,056

(777,183

)

Cash and cash equivalents at beginning of year

2

2,173,407

2,950,590

Cash and cash equivalents at end of year

2

3,934,463

2,173,407

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

2025

2024

£

£

Profit before taxation

44,556

302,305

Depreciation charges

950,028

836,900

Loss/(profit) on disposal of fixed assets

1,143

(19,574

)

Finance costs

119,730

65,932

Finance income

(25,600

)

(6

)

1,089,857

1,185,557

Decrease in stocks

392,210

326,500

Decrease/(increase) in trade and other debtors

345,934

(462,069

)

Increase/(decrease) in trade and other creditors

285,330

(589,520

)

Cash generated from operations

2,113,331

460,468

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 October 2025

31/10/25

1/11/24

£

£

Cash and cash equivalents

3,934,463

2,173,407

Year ended 31 October 2024

31/10/24

1/11/23

£

£

Cash and cash equivalents

2,173,407

2,950,590

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/11/24

Cash flow

At 31/10/25

£

£

£

Net cash

Cash at bank and in hand

2,173,407

1,761,056

3,934,463

2,173,407

1,761,056

3,934,463

Debt

Finance leases

(1,770,106

)

307,503

(1,462,603

)

(1,770,106

)

307,503

(1,462,603

)

Total

403,301

2,068,559

2,471,860

1.	STATUTORY INFORMATION

LGS Holdings 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 General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Turnover

Turnover represents net invoiced sales of goods, excluding value added tax. Turnover is recognised when the goods cease to be assets of the seller and become assets of the customer, which is when the seller transfers to the customer access to the significant benefits relating to the goods and exposure to the risks inherent in those benefits in accordance with FRS 102. These benefits are transferred once a sale has been agreed with the customer as the managerial control over the goods is relinquished and transferred to the buyer.

Goodwill

Goodwill represents the amount paid in connection with the acquisition of a business in 2016.

Initially the directors estimated the useful life of goodwill to be 5 years, but following new developments of both internal and external factors the directors have reviewed the estimate and revised the estimated useful life of goodwill to be 9 years from 1 November 2017.

This change has resulted in a revised amortisation charge per annum of £231,121 over the remaining useful life.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Depreciation commences in the month following acquisition and assets are originally carried at historical cost.

Short leasehold property

- in equal instalments over the lease period

Plant and machinery

- 25% on reducing balance

Fixtures and fittings

- 10% and 25% on reducing balance

Motor vehicles

- 20% on reducing balance

Fabrication plant and machinery

- 10% reducing balance

Stocks

Stocks and work in progress are valued at the lower of cost and net realiseable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Basis of consolidation

The group accounts consolidate the accounts of LGS Holdings Limited and all its subsidiary undertakings drawn to 31 October each year. No profit and loss account is presented for LGS Holdings Limited as permitted by section 408 of the Companies Act 2006.

Lemon Groundwork Solutions Limited and CP(WBL) Limited have been included in the group accounts using the acquisition method of accounting.

Operating leases

Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,976,963

4,263,376

Social security costs

461,535

456,796

Other pension costs

92,628

93,100

4,531,126

4,813,272

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

2025

2024

Production staff

80

79

Office and management

24

23

104

102

Included within wages and salaries are employee distributions totalling £20,001 (2024 - £40,000) paid on behalf of LGS Employee Ownership Trust.

2025

2024

£

£

Directors' remuneration

278,555

602,393

Directors' pension contributions to money purchase schemes

644

3,874

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

Money purchase schemes

1

1

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

110,964

198,850

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

7,408

1,424

Depreciation - owned assets

315,622

266,576

Depreciation - assets on hire purchase contracts

402,222

337,690

Loss/(profit) on disposal of fixed assets

1,143

(19,574

)

Goodwill amortisation

231,121

231,121

Computer software amortisation

1,063

1,514

Foreign exchange differences

6,460

454

Rent under operating leases

422,580

541,800