The director presents the strategic report for the year ended 31 October 2025.

The principal activity of the group continues to be that of a supplier of fully integrated, waste management solutions, specifically the processing of commercial/Industrial and Construction/Demolition waste. The group works in line with the waste hierarchy by mechanically separating waste streams for recycling such as wood, plastics, paper, card and metals, soils, soil conditioning additives and aggregates.

The remaining non-recyclable fractions are used in the production of Solid Recovered Fuel (SRF), Refuse Derived Fuel (RDF) which are used by energy intensive industries to replace finite fossil fuels.

During the 12 month period to 31st October 2025, the group has continued to operate as a key supplier of fully integrated waste management solutions within the UK.

The UK waste management market remains challenging particularly with respect to higher operating costs, energy costs and labour shortages, the market continues to improve and we are seeing more stability with respect to operating costs, albeit at a higher level.

Eco-Power continues to concentrate on its more traditional recycling and recovery markets derived from UK’s construction and demolition sector.

These market changes have enabled the business to maintain stability from a lower turnover position due to a reduction in operating and disposal cost and an increase in commodity returns.

The group will continue to focus on its key operations, and specifically its aim to divert 95% of material that it manages from landfill, with a capacity to handle more than 1.2million tonnes of material per year, and additionally develop complimentary supply chain offerings to strategically grow the business.

The principal risks and uncertainties faced by the company are the general uncertain economic climate in which it currently trades.

The directors and management team continually monitor suck risks and meet to discuss how best to protect the business.

The directors utilise the following key performance indicators to assess the performance of the group.

On behalf of the board

The director presents his annual report and financial statements for the year ended 31 October 2025.

The principal activity of the company and group continued to be that of managing the waste recycling operations of the group as detailed in the Strategic report on page 1.

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £396,507. The director does not recommend payment of a further dividend.

The director who held office during the year and up to the date of signature of the financial statements was as follows:

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

United Kingdom company law requires the director to prepare financial statements for each financial year. Under that law, the director has elected to prepare the group and parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and parent company, and of the profit or loss of the group for that period.

In preparing these financial statements, the director is required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

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

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

We have audited the financial statements of Eco-Power Environmental Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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 the parent company's 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 director's 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 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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.

Opinions on other matters prescribed by the Companies Act 2006

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

• The information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the director's report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

We have nothing to report in respect of the following matters in relation to which 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.

As explained more fully in the director's responsibilities statement, the director is 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 director determines is 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 director is responsible for assessing the group's and 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 director either intends to liquidate the group or parent company or to cease operations, or has no realistic alternative but to do so.

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 auditor's 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.

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

• Reviewed the nature of the industry and sector, the control environment and business performance for the year.

• Identifying the laws and regulations the company operates within and enquiring with management if they are aware of any non compliance issues.

• Discussed how and where fraud may occur with all members of the audit engagement team.

• In line with all audits under ISAs (UK) we were required to perform tests to respond to the risk of management override. We tested the appropriateness of journal entries, evaluated the judgements made for accounting estimates to assess if any bias, and assessed the rationale behind any significant or unusual transactions.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the parent 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 parent company’s members those matters we are required to state to them in an auditor's 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

The notes on pages 15 to 36 form part of these financial statements.

The notes on pages 15 to 36 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The notes on pages 15 to 36 form part of these financial statements.

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £422,340 (2024 - £60,464 profit).

The notes on pages 15 to 36 form part of these financial statements.

The notes on pages 15 to 36 form part of these financial statements.

Eco-Power Environmental Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

The group consists of Eco-Power Environmental Holdings Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Eco-Power Environmental Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 October 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

At the time of approving the financial statements, the director has a reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is [XXXX].

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

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

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The income included as exceptional in the prior year relates to money received during the period entered into by the group for the potential sale of assets, licences and intellectual property at its Hull Plant. The sale didn't complete with this buyer but under the terms of the legal agreement entered into the payments received during the exclusivity period belong to Eco-Power Environmental Limited absolutely. Also included in the prior year is a correction to an amount written off in error in 2023.

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

Included in amounts written off loans are various amounts no longer considered recoverable by the directors. These reflect a charge to the profit and loss account in the prior year which are not reflective of the underlying trade.

On 11 March 2024 the group sold its shares in Eco-power Green Energy Limited, a 100% owned subsidiary. The resulting gain on disposal of these shares is shown in other gains and losses. This includes the contingent consideration detailed below.

Earn out

As part of the share sale agreement there is contingent consideration linked to EBITDA performance in the 4 years following completion of the deal. This was stated in the agreement as being a minimum of £8m, less various warranty claims and deductions. The buyer has calculated the contingent consideration to be £4.2m based on the current expectations in their latest audited accounts and therefore this figures has been included in the gain on disposal of Eco-power Green Energy Limited as accrued income.

The actual charge/(credit) for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:

Land with a carrying amount of £640,000 was revalued at 31 July 2017 by Bardill Barnard Ltd, independent valuers not connected with the group on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The directors do not consider the current value at October 2025 to be materially different.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

Details of the company's subsidiaries at 31 October 2025 are as follows:

Included within borrowings is a secured loan facility of £3million with Lux Park Limited, originally agreed on 15 December 2023 and varied in 2024. The loan is repayable over 60 months at an interest rate 2.5% per annum. The facility is secured by fixed and floating charges over the assets of the group. The group is in compliance with all loan covenants. At the year end, the balance was £2,927,259.

Finance lease obligations are secured against the assets which they relate.

The following are the major deferred tax liabilities and assets recognised by the group and company:

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

First contingent liability

HM Revenue & Customs has entered into correspondence with the company in respect of additional corporation tax and VAT that they consider is due. Various assessments have been received for the corporation tax but not formal assessment has been raised by HM Revenue & Customs for the VAT element.

Assessments received for additional corporation tax due total £2,166,036, which included interest to the date of the assessment. Potential penalties would be due in addition to these amounts.

The company strongly disputes the basis of the assessments received and the potential assessments for the VAT and, having taken professional advice, considers that it has strong grounds for contesting the claim. Accordingly, no provision has been made in the financial statements. HM Revenue & Customs completed an internal review of the assessments on 30 June 2026 and upheld their initial assessments subject to certain downward revisions. The Company has appealed the assessments to the first-tier tribunal with the appeals lodged in July 2026.

Second contingent liability

In addition, the company historically received payments under a contractual arrangement in relation to a business deal. Under the terms of the agreement, the amounts received may be repayable although the company does not believe this to be the case and therefore no liability is included. The potential liability would have a material affect on the financial statements.

Guarantees

The group has granted a fixed and floating charge over its assets in favour of Lux Park Limited as continuing security for borrowings of £3million made to Eco-Power Environmental Holdings Limited. The company has not received any direct proceeds from the loan but benefits indirectly through group funding arrangements. No amounts have been demanded under this guarantee.

Mr M Jepson and Mr D Colakovic are beneficial shareholders in the ultimate parent undertaking, Eco-Power Environmental Holdings Limited.

During the year, the company entered into the following transactions with related parties:

ESC Investments Limited

ESC Investments Limited is a company in which Mr D Colakovic is a director and shareholder.

At the year end, the company owed £92,899 (2024: £284,100 owed from) to ESC Investments Limited. This amount is included in related party creditors.

Eco Power Properties Limited

Eco Power Properties Limited is a company under the control of Mr D Colakovic, Mr M Jepson and Mr L Higgins.

At the year end, the company owed £101,957 (2024: £255,557 owed from) to Eco Power Properties Limited. This amount is included in related party creditors.

Eco Power Wood Fuels Limited

Eco Power Wood Fuels Limited is a company in which Mr M Jepson is a director and both Mr M Jepson and Mr D Colakovic have an interest.

£136,800 was written off in the prior year, no amounts have been written off in the current year.

At the year end, the company owed £1,838,207 (2024: £61,589) to Eco Power Wood Fuels Limited. This amount is included in related party creditors.

Eco Tyres Limited

Eco Tyres Limited is a company indirectly controlled by Mr D Colakovic.

During the year the company made purchases of £7,390 (2024: £1,304) from Eco Tyres Limited.

At the year end, the company owed £4,430 (2024: £643) to Eco Tyres Limited. This amount is included in related party creditors.

Eco-Power Plant Hire Limited

Eco-Power Plant Hire Limited is a company in which Mr D Colakovic has an interest.

During the year the company made purchases of £6,400 (2024: £23,321) from Eco-Power Plant Hire Limited.

At the year end, the company owed £34,232 (2024: £30,213) to Eco-Power Plant Hire Limited. This amount is included in related party creditors.

Eco-Power Skips Limited

Eco-Power Skips Limited is a company in which Mr L Calders and Mr M Graves were directors and Mr M Jepson and Mr D Colakovic have an interest.

During the year the company made sales of £1,884,196 (2024: £646,98) from Eco-Power Skips Limited. During the year the company made £nil purchases (2024: £12,217) from Eco-power Skips Limited.

At the year end, the company was owed £2,126,394 (2024: £1,865,492) from Eco-Power Skips Limited. This amount is included in related party debtors.

Eco Power Health and Wellness Clinic Limited

Eco Power Health and Wellness Clinic Limited is a company in which Mr D Colakovic has an interest.

During the year the company made sales of £165 (2024: purchases of £1,286) from Eco Power Health and Wellness Clinic Limited .

At the year end, the company was owed £448,099 (2024: £405,013) from Eco Power Health and Wellness Clinic Limited. This amount is included in related party debtors.

Eco-Power Fuels Limited

Eco-Power Fuels Limited is a company in which Mr L Calders and Mr M Graves were directors during the year and hold an interest. In addition, Mr D Colakovic and Mr M Jepson hold an interest.

At the year end, the company owed £nil (2024: £nil) by Eco-Power Fuels Limited. £nil was written off in 2024. No amounts have been written off in the current year.

Eco Power Surfacing Limited

Eco Power Surfacing Limited is a company in which Mr M Jepson and Mr D Colakovic have an interest.

At the year end, the company owed £nil (2024: £10,266) by Eco Power Surfacing Limited.

Commercial Heating & Drying Limited

Commercial Heating & Drying Limited is a company in which Mr M Jepson and Mr D Colakovic have an interest.

During the year, the company has made sales £nil (2024: £24,669) to Commercial Heating & Drying Limited.

At the year end, the company owed £527 (2024: £410,314) by Commercial Heating & Drying Limited.

Eco Power Civil Engineering Limited

Eco Power Civil Engineering Limited is a company in which Mr M Jepson and Mr D Colakovic have an interest.

During the year, the company made sales credit notes of £nil (2024: £16,958) to Eco Power Civil Engineering Limited. During the year the company made purchases of £103,571 (2024: £212,816) from Eco Power Civil Engineering Limited.

At the year end, the company was owed £nil (2024: £717,689) by Eco Power Civil Engineering Limited.

Eco Power Metals Limited

Eco Power Metals Limited is a company in which Mr M Jepson and Mr D Colakovic have an interest.

During the year, the company made sales £160,305 (2024: £26,122) to Eco Power Metals Limited.

At the year end, the company was owed £330,520 (2024: £454,497) by Eco Power Metals Limited.

Eco Power Racing Limited

Eco Power Racing Limited is a company in which Mr D Colakovic has an interest.

During the year, the company made sales £2,052 (2024: £8,542) to Eco Power Metals Limited and purchases from of £9,235 (2024: £nil).

At the year end, the company was owed £2,410,616 (2024: £1,709,758) by Eco Power Metals Limited.

Directors’ Current Accounts

Directors’ current account balances included in other debtors at the year end total £6,282 (2024: £52,100). The outstanding amounts are repayable on demand and interest has been charged at the HMRC rate of interest in the year.

Eco-Power Engineering Limited

Eco-Power Engineering Ltd is a company which Mr M Jepson has an interest and Mr L Calders is a director.

During the year, the company made sales of £nil (2024: £363) to Eco-Power Engineering Limited. During the year the company made purchases of £nil (2024: £73,610) from Eco-power Engineering Limited.

At the year end, the company was owed £nil (2024: £nil) by Eco Power Engineering Limited. £62,477 was written off in the prior year.

Eco Power Star Design Interiors Limited

Eco Power Star Design Interiors Limited is a company which Mr M Jepson and Mr D Colakovic have an interest and Mr L Calders is a director.

During the year, the company made sales of £nil (2024: £8,590) to Eco Power Star Design Interiors Limited. During the year the company made purchases of £nil (2024: £21,160) from Eco-power Engineering Limited.

At the year end, the company was owed £nil (2024: £nil) by Eco Power Star Design Interiors Limited. In the prior year £360,946 was written off.

Eco-Power Priority One Security Limited

Eco-Power Priority One Security Limited is a company which Mr M Jepson and Mr D Colakovic have an interest and Mr L Calders is a director.

During the year, the company made sales of £nil (2024: £3,855) to Eco-Power Priority One Security Limited. During the year the company made purchases of £nil (2024: £43,196) from Eco-Power Priority One Security Limited.

At the year end, the company owed £nil (2024: £12,988) by Eco-Power Priority One Security Limited.

Eco-Power Facilities Management Limited

Eco-Power Facilities Management Limited is a company which Mr L Higgins and Mr D Colakovic have an interest and Mr L Calders is a director.

During the year, the company made sales of £27,000 (2024: £27,000) to Eco-Power Facilities Management Limited.

At the year end, the company owed £nil (2024: £nil) by Eco-Power Facilities Management Limited. During the prior year £62,080 was written off.