Company registration number 02176652 (England and Wales)
TENON FM LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Faulkner House
Victoria Street
Rayner Essex LLP
St Albans
Chartered Accountants
Hertfordshire
AL1 3SE
TENON FM LIMITED
COMPANY INFORMATION
Directors
Mr M Rajain
Mr I D Mcilroy
Mr A Rajain
(Appointed 29 April 2025)
Secretary
Mr K Singh
Company number
02176652
Registered office
Harman House
Ground Floor
1 George Street
Uxbridge
Middlesex
UB8 1QQ
Auditor
Rayner Essex LLP
Faulkner House
Victoria Street
St Albans
Hertfordshire
AL1 3SE
TENON FM LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 7
Independent auditor's report
8 - 10
Statement of comprehensive income
11
Statement of financial position
12 - 13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16 - 36
TENON FM LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2026
- 1 -

The directors present the strategic report for the year ended 31 March 2026.

Principal activities

The company's principal activity is the provision of integrated facilities management services across both the public and private sectors. Our core markets are education, blue light, retail spaces and corporate facility providers.

The company's service offers a bespoke package for customers covering cleaning, housekeeping, building maintenance, pest management and mechanical and electrical services.

Review of the business

The company has generated revenue in 2026 of £38,794,015 against the prior year of £38,521,251, the increase in revenue is owing to inflation.
The results for the company are on page 11. The company has achieved an operating profit of £977,478 (2025 - £997,699). Gross margins have increased slightly from 11.2% to 11.9% in the year.

Principal risks and uncertainties

The company's financial instruments are Group borrowings, an invoice discounting facility and bank loans along with asset lease agreements. These are monitored and controlled within the company using cash forecasting and projections.

Further details regarding risk has been disclosed in the Directors Report.

Future developments

The company will continue to invest in technology over the coming year, having this year invested in a new finance system, and a new payroll software and enhanced time and attendance system going live from 1 May 2026.

The above combined with our proprietary workforce management software M-Neo will enable us to remove time-consuming manual tasks and automate where possible, allowing managers and the operations team to focus on our clients’ needs and service delivery.

We will continue to grow our existing contracts organically with a focus on increasing our market share within sectors that we currently have the greatest success whilst combatting the economic factors faced by ourselves and the clients, we serve, most notably the current global crisis. By embracing technology, we aim to reduce the increase of current and future legislative changes by becoming more efficient and providing more cost effective, tailor-made solutions for our current and prospective clients.

Key performance indicators

The key performance indicators of the company include client retention, expanding the client portfolio and therefore reducing reliance on the top 20 contracts and conversion rates for successful bid tenders.

The financial KPI's are the revenue, gross profit and operating profit.

Revenue increased from £38.5m to £38.8m. This is mainly because of the annual price increases.

Operating profit decreased from £0.998m to £0.977m. This is due to increased overheads in the year.

The gross margin has increased from 11.2% to 11.9%, owing to the increase in turnover and costs of sales marginally decreasing.

Administrative expenses are at 9.4% to revenue which have increased against the previous year of 8.7%.

TENON FM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 2 -
Other information and explanations

Environment
The company recognises its corporate responsibility to carry out its operations whilst minimising environmental impacts. The directors continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible.
Human resources
The company's most important resource is its people, their professionalism and expertise is crucial to meeting customer requirements.

Health and safety
The company is committed to achieving the highest practicable standards in health and safety management and strived to make its sites and offices safe environments for employees and customers alike.

Section 172 statement

In accordance with section 172 of the Companies Act, each of our directors acts in the way he considers, in good faith, would most likely promote the success of the company for the benefit of its members as a whole. Our directors have regard, amongst other matters, to the:

- likely consequences of any decisions in the long term;

- interests of the company's employees;

- need to foster the company's business relationships with suppliers, customers and others;

- impact of the company's operations on the community and environment;

- desirability of the company maintaining a reputation for high standards of business conduct; and

- need to act fairly as between members of the company.

As is normal for large companies, we delegate authority for day to day management of the company to senior managers and then engage management in setting, approving and overseeing the execution of strategy and related policies. During the year, we reviewed the company's financial and operational performance, key transactions, regulations, funding and pension matters, mechanisms of stakeholders engagement and diversity and inclusion. The Board review, discuss and approve, as necessary, all of these matters.

Fostering Business Relationships with Suppliers, Customers, and Others

During the financial year, the directors of the company have had regard to the need to foster strong, collaborative relationships with our clients, service partners, suppliers, and other stakeholders, recognising that these relationships are essential to delivering high-quality facility management services.

Key actions have included:

- Client engagement through regular monthly and quarterly reviews, providing an informative management reporting pack, and tailored solutions to meet client requirements across services delivered.

- Supplier and contractor monthly and quarterly reviews to enhance working partnerships, as well as to improve service quality, safety standards, and environmental performance.

- Stakeholder collaboration with local authorities, industry bodies, and community organisations to promote best practice, support local employment, and enhance sustainability outcomes.

These considerations have influenced principal decisions during the year, and the directors believe these actions have strengthened trust, improved delivery, and reinforced the company’s reputation as a reliable, responsible integrated facilities management services provider.

As set out above, decisions taken by the Board consider the interests of our key stakeholders and the impacts of these decisions.

TENON FM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 3 -

On behalf of the board

Mr I D Mcilroy
Director
30 July 2026
TENON FM LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2026
- 4 -

The directors present their annual report and financial statements for the year ended 31 March 2026.

Results and dividends

The results for the year are set out on page 11.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Mr S K Gupta
(Resigned 30 April 2025)
Mr M Rajain
Mr I D Mcilroy
Mr A Rajain
(Appointed 29 April 2025)
Supplier payment policy

The Companies Act 2006, as amended, requires the company to make a statement of its policies and practice on the payment of creditors.

It is, and will continue to be, the policy of the company to negotiate with suppliers so as to obtain the best available terms taking account of quality, delivery, price and period settlement and, having agreed those terms, to abide by them.

Financial instruments

Liquidity risk

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The company closely monitors its access to bank and other credit facilities on comparison to its outstanding commitments to ensure it has sufficient fund to meet its obligations as they fall due. The Company's finance function prepares and reviews management accounts on a monthly basis, so that management can ensure that sufficient financing is in place as it is required.
The main source of finance is the use of its invoice discounting facility. The company also makes use of loans from fellow group companies.

Interest rate risk

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. The company's exposure to the risk if changes in market interest rates relates primarily to the Company's long and short term debt obligations.

TENON FM LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 5 -
Cash flow and price mitigation risk

Cash flow / credit risk predominantly arises from trade receivables cash and cash equivalents and deposits with banks. The Company's exposure to bad debts is not significant.

IFRS 9 has been applied to calculate any credit risk and credit losses. Trade receivables are usually due within 30 to 90 days. All trade receivables are subject to credit risk exposure.

The Company manages cash flow risk through regular monitoring of ageing of receivables, cash balances, forecasts, and expected funding requirements. The risk is further migrated as we have an internal credit control team whose primary responsibility is to monitor the ageing of receivables and chase debt promptly once it becomes overdue. Furthermore, the directors review cash flow projections to ensure the Company maintains sufficient liquidity to meet its operational and financial obligations as they fall due. Cash resources are held with reputable financial institutions and, where appropriate, facilities are maintained to provide additional liquidity. The directors consider the Company's cash position and forecast cash requirements to be adequate to support the business and its planned activities.

The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern to provide returns for shareholders, benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. To maintain or adjust the capital structure, the Company may adjust the amount of dividend paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company is exposed to price risk arising from fluctuations in the cost of goods, services, raw materials, energy, and other inputs required for its operations. The directors monitor market conditions and seek to mitigate the impact of adverse price movements through supplier management, contractual arrangements, pricing reviews, and operational efficiencies where appropriate. The Company continually assesses the potential impact of market price changes on profitability and cash flow and takes action to manage these risks where commercially viable.

Disabled persons

The company's policy is to give full and fair consideration to applications for employment made by disabled persons, having regard to their particular attributes and abilities.

Disabled employees receive appropriate training to promote their career development within the company.

Employees who become disabled are retained in their existing posts where possible or retained for suitable alternative posts.

Employee involvement

Regular meetings are held between senior management and employee representatives to discuss matters of concern. The Board remains committed to maintaining effective engagement with employees across the business Employees are kept well informed about the progress and position of the company by means of regular departmental meetings, newsletters and journals.

The directors believe that effective employee engagement contributes to the long-term success of the Company. Employee feedback is considered when making principal decisions during the year, helping to ensure that the interests of employees are appropriately considered alongside those of shareholders, customers, suppliers, and other stakeholders.

Post reporting date events

There have been no significant events after the reporting period requiring disclosure. There have been no dividends declared or proposed during this time.

Future developments

Disclosed within the Strategic report.

Auditor

Rayner Essex LLP are deemed to be re-appointed under section 487(2) of the Companies Act 2006.

TENON FM LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 6 -
Energy and carbon report

The below sets out the emissions details for the company during the period:

2026
2025
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
962,243
947,902
2026
2025
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
1.78
1.74
- Fuel consumed for owned transport
212.84
216.82
214.62
218.56
Scope 2 - indirect emissions
- Electricity purchased
0.58
0.97
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
-
-
Total gross emissions
215.20
219.53
Intensity ratio
Tonnes of CO2 per £1 million of turnover
5.616
5.702
Quantification and reporting methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

Intensity measurement

The company's intensity measurement is based on tonnes of C02 per £1million of revenue.

Measures taken to improve energy efficiency

In order to reduce our carbon footprint and aid energy efficiencies, management have undertaken the following initiatives:

- Implementation of vehicle checklists, driver awareness campaigns and telematics to reduce fuel useage,

- Upgrade lighting to LEDs in offices within or direct control,

- Introduce electric and hybrid vehicles into our operational fleet,

- Streamlined mobile supervisor travel through Tenon Hub central contract management,

- Continued ISO 50001 - certified energy management, with quarterly reviews and action tracking,

- Delivered energy moments discussions during the monthly QuESH forums, including ISO50001 and reducing carbon emissions in our operations,

- Implementation of a mandatory scheduling protocol to optimise the frequency of site visits by company vehicles, including those to locations operated by our supply chain partners, in order to reduce unnecessary travel and associated emissions.

- Introduction of a flexible working policy enabling mobile managers to work remotely one day per week, reducing the need for vehicle travel and contributing to a measurable reduction in work-related transport emissions.

TENON FM LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 7 -
Statement of directors' responsibilities

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

United Kingdom 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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, International Accounting Standard 1 requires that directors:

- properly select and apply accounting policies;

- present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

- provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and

- make an assessment of the company's ability to continue as a going concern.

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

Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

- so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

- the director has taken all the steps that he / she ought to have taken as a director in order to make himself / herself aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the business review and details of the principal risks and uncertainties.

On behalf of the board
Mr I D Mcilroy
Director
30 July 2026
TENON FM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TENON FM LIMITED
- 8 -
Opinion

We have audited the financial statements of Tenon FM Limited (the 'company') for the year ended 31 March 2026 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the s tatement of c hanges in e quity, the s tatement of c ash f lows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law International Financial Reporting Standards (IFRSs) as adopted by the UK.

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 March 2026 and of its profit for the year t hen ended;

- have been properly prepared in accordance IFRSs as adopted by the UK; 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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 directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

TENON FM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TENON FM LIMITED (CONTINUED)
- 9 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

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

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

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

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

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, 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 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 directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 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.

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.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collecti vely had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with the directors and other management, and from our commercial knowledge and experience of the se rvices sector;

- we focused on specific laws and regulations which we considered m ay ha v e a direct material effect on the financ ial statements or the operations of the company, including the Companies act 2006, taxation legislation and data protection, anti-bribery, employment law, Health and Safety, Environmental legislation and other re levant regulations;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of no n-compliance throughout the audit.

TENON FM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TENON FM LIMITED (CONTINUED)
- 10 -

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested joumal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to ac tual and potential litigation and claims; and

- reviewing correspondence with HMRC and relevant regulators.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 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 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Antony Federer FCA FCCA CF (Senior Statutory Auditor)
For and on behalf of Rayner Essex LLP, Statutory Auditor
Chartered Accountants
Faulkner House
Victoria Street
St Albans
Hertfordshire
AL1 3SE
30 July 2026
TENON FM LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2026
- 11 -
2026
2025
Notes
£
£
Revenue
4
38,794,015
38,521,251
Cost of sales
(34,161,595)
(34,189,651)
Gross profit
4,632,420
4,331,600
Administrative expenses
(3,654,942)
(3,333,901)
Operating profit
5
977,478
997,699
Finance costs
9
(188,973)
(206,808)
Profit before taxation
788,505
790,891
Income tax expense
10
(295,549)
(119,646)
Profit and total comprehensive income for the year
492,956
671,245
TENON FM LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2026
31 March 2026
- 12 -
2026
2025
Notes
£
£
ASSETS
Non-current assets
Intangible assets
11
147,987
77,349
Property, plant and equipment
12
724,175
463,032
872,162
540,381
Current assets
Inventories
14
68,070
89,439
Trade and other receivables
15
13,779,657
13,300,036
Cash and cash equivalents
122,068
120,772
13,969,795
13,510,247
Total assets
14,841,957
14,050,628
EQUITY
Called up share capital
25
1,000
1,000
Retained earnings
5,786,346
5,293,390
Total equity
5,787,346
5,294,390
LIABILITIES
Non-current liabilities
Lease liabilities
22
319,728
4,344
Deferred tax liabilities
23
77,355
77,355
397,083
81,699
Current liabilities
Trade and other payables
21
5,774,047
5,847,958
Current tax liabilities
295,549
140,152
Borrowings
18
2,494,762
2,627,665
Lease liabilities
22
93,170
58,764
8,657,528
8,674,539
Total liabilities
9,054,611
8,756,238
Total equity and liabilities
14,841,957
14,050,628
TENON FM LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 MARCH 2026
31 March 2026
- 13 -
The financial statements were approved by the board of directors and authorised for issue on 30 July 2026 and are signed on its behalf by:
Mr I D Mcilroy
Director
Company registration number 02176652 (England and Wales)
TENON FM LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2026
- 14 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 April 2024
1,000
4,622,145
4,623,145
Year ended 31 March 2025:
Profit and total comprehensive income
-
671,245
671,245
Balance at 31 March 2025
1,000
5,293,390
5,294,390
Year ended 31 March 2026:
Profit and total comprehensive income
-
492,956
492,956
Balance at 31 March 2026
1,000
5,786,346
5,787,346
TENON FM LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2026
- 15 -
2026
2025
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
685,262
137,849
Interest paid
(188,973)
(206,808)
Income taxes paid
(140,152)
(87,959)
Net cash inflow/(outflow) from operating activities
356,137
(156,918)
Investing activities
Purchase of intangible assets
(84,105)
(77,349)
Purchase of property, plant and equipment
(482,402)
(101,192)
Proceeds from disposal of property, plant and equipment
(5,221)
-
0
Net cash used in investing activities
(571,728)
(178,541)
Financing activities
Repayment of bank loans
(132,903)
165,409
Payment of lease liabilities
349,790
(58,763)
Net cash generated from financing activities
216,887
106,646
Net increase/(decrease) in cash and cash equivalents
1,296
(228,813)
Cash and cash equivalents at beginning of year
120,772
349,585
Cash and cash equivalents at end of year
122,068
120,772
TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
- 16 -
1
Accounting policies
Company information

Tenon FM Limited is a private company limited by shares incorporated in England and Wales. The registered office is Harman House, Ground Floor, 1 George Street, Uxbridge, Middlesex, UB8 1QQ. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with the requirements of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

The directors have at the time of approving the financial statements, a reasonable expectation that the true company has adequate resources to continue in operational existence for the foreseeable future. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements. We do not expect any material liquidity issues and are confident of our ability to meet the existing invoice discounting facility obligation with HSBC.

1.3
Revenue

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.

The revenue shown in the profit and loss statement is measured using the principles of IFRS 15 by applying the following five steps:

1. Identify the contract with a customer

2. Identify the performance obligations

3. Determine the transactions price

4. Allocate the transactions price to the performance obligations

5. Recognise re venue when performance obligation is satisfied

TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
1
Accounting policies
(Continued)
- 17 -
1.4
Goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less impairment losses and amortisation.
Goodwill is amortised over 10 years on a straight line basis.

The gain on a bargain purchase is recognised in profit or loss in the period of the acquisition.

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. An impairment loss recognised for goodwill is not subsequently reversed.

1.5
Intangible assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

- Software - 20% straight line

1.6
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Assets transferred from fellow group companies are initially measured at their net book value and subsequently 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:

Leasehold property
Over the term of the lease
Fixtures and fittings
12.5% Straight line
Plant and machinery
20% Straight line
Office machinery
20% Straight line
Motor vehicles
20% Straight line

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 income statement.

TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
1
Accounting policies
(Continued)
- 18 -
1.7
Impairment of tangible and intangible assets

At each reporting end date, the company 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.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

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.

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.

1.8
Inventories

Inventories are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.9
Cash and cash equivalents

Cash and cash equivalents 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.

1.10
Financial assets

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
1
Accounting policies
(Continued)
- 19 -
Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Financial assets at fair value through other comprehensive income

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

The company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.

Impairment of financial assets

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

For trade receivables, the simplified approach permitted by IFRS 9 is applied, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
1
Accounting policies
(Continued)
- 20 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.11
Financial liabilities

The company recogni s es financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities

Other financial liabilities, including borrowings, t rade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.12
Equity instruments

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

1.13
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 income statement, 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 when the company has 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.

TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
1
Accounting policies
(Continued)
- 21 -
1.14
Employee benefits

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 inventories or non-current 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.

1.15
Retirement benefits

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

1.16
Leases
As lessee

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently adjusted for remeasurements of the lease liability and applies the relevant cost model, fair value model or revaluation model as set out within the accounting policies for the applicable asset class. Where the cost model is applied, the asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term, and is periodically reduced by impairment losses, if any.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is re assessed at each financial period end to reflect lease modifications and any changes to the factors considered at initial measurement, as set out above. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 22 -
2
Adoption of new and revised standards and changes in accounting policies

In the current year, the following new and revised Standards and Interpretations have been adopted by the company and have an effect on the current period or a prior period or may have an effect on future periods:

Practice Statement 1
Management Commentary
Annual reporting periods beginning on or after 23
June 2025 (voluntary adoption)
IAS 21 Lack of Exchangeability
The effects of changes in foreign exchange rates - lack of - effective 01/01/2025
Disclosures about uncertainties in the financial statements
Disclosure of climate related and other uncertainties in the financial statements - no effective date
Standards which are in issue but not yet effective

At the date of authorisation of these financial statements, the following Standards and Interpretations, which have not yet been applied in these financial statements, were in issue but not yet effective (and in some cases had not yet been adopted by the EU) and have not been early adopted:

Amendments to IFRS 9 and IFRS 7
Amendments to the Classification and Measurement of
Financial Instruments mandatorily effective from 01/01/2026
IFRS 9 and IFRS 7 amendments to contracts referencing Nature dependent Electricity
Financial instruments: Disclosures - financial effects of power purchase agreements in naure dependent contracts
Annual improvements to IFRS accounting standards - volume 11
Improvements to clarify working in IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7 - mandatorily effective from 01/01/2026
IFRS 18 Presentation and disclosure in financial statements
Published 9 April 2024 and effective for reporting periods beginning on or after 1 January 2027.
IFRS 19 Subsidiares without public accountability disclosures
Publised 9 May 2024 and effective for reporting periods beginning on or after 1 January 2027.
Amendments to IAS 21 Translation to a hyperinflationary presentation currency
Effective for reporting periods beginning on or after 1 January 2027.
TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 23 -
3
Critical accounting estimates and judgements

In the application of the company’s accounting policies, the directors are 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There are not considered to be any estimates or assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities of the company.

4
Revenue
2026
2025
£
£
Revenue analysed by class of business
Facilities Management Services
38,794,015
38,521,251
2026
2025
£
£
Revenue analysed by geographical market
United Kingdom
38,794,015
38,521,251
5
Operating profit
2026
2025
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of property, plant and equipment
226,480
178,393
(Profit)/loss on disposal of property, plant and equipment
-
223
Amortisation of intangible assets (included within administrative expenses)
13,467
45,330
Cost of inventories recognised as an expense
9,862,815
7,743,533
6
Auditor's remuneration
2026
2025
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
26,250
25,000
For other services
Tax services
9,975
9,500
Other services
2,100
2,000
Total non-audit fees
12,075
11,500
TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 24 -
7
Employees

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

2026
2025
Number
Number
Production staff
1,268
1,539
Admin staff
65
32
Management
3
3
Total
1,336
1,574

Their aggregate remuneration comprised:

2026
2025
£
£
Wages and salaries
20,912,504
22,443,673
Social security costs
2,223,585
1,379,517
Pension costs
340,784
366,543
23,476,873
24,189,733
8
Directors' remuneration
2026
2025
£
£
Remuneration for qualifying services
220,802
108,114
Remuneration disclosed above include the following amounts paid to the highest paid director:
2026
2025
£
£
Remuneration for qualifying services
220,802
106,610
9
Finance costs
2026
2025
£
£
Interest on lease liabilities
12,563
24,982
Interest on invoice finance arrangements
165,153
179,181
Other interest payable
11,257
2,645
Total interest expense
188,973
206,808
TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 25 -
10
Income tax expense
2026
2025
£
£
Current tax
UK corporation tax on profits for the current period
295,549
140,153
Adjustments in respect of prior periods
-
0
(97,862)
Total UK current tax
295,549
42,291
Deferred tax
Origination and reversal of temporary differences
-
0
77,355
Total tax charge
295,549
119,646

The charge for the year can be reconciled to the profit per the income statement as follows:

2026
2025
£
£
Profit before taxation
788,505
790,891
Expected tax charge based on a corporation tax rate of 25.00% (2025: 25.00%)
197,126
197,723
Effect of expenses not deductible in determining taxable profit
424
20,383
Group relief
-
0
(112,461)
Permanent capital allowances in excess of depreciation
31,481
12,877
Under/(over) provided in prior years
-
0
(97,862)
Deferred tax adjustments in respect of prior years
-
0
77,355
Transfer pricing adjustment
66,518
62,841
Other short term timing differences
-
0
(41,210)
Taxation charge for the year
295,549
119,646
TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 26 -
11
Intangible assets
Goodwill
Software
Total
£
£
£
Cost
At 1 April 2024
171,830
-
0
171,830
Additions
-
77,349
77,349
Revaluation
81,170
-
81,170
At 31 March 2025
253,000
77,349
330,349
Additions - purchased
-
0
84,105
84,105
At 31 March 2026
253,000
161,454
414,454
Amortisation and impairment
At 1 April 2024
126,500
-
0
126,500
Charge for the year
45,330
-
0
45,330
Reversal of impairment loss
81,170
-
0
81,170
At 31 March 2025
253,000
-
0
253,000
Charge for the year
-
13,467
13,467
At 31 March 2026
253,000
13,467
266,467
Carrying amount
At 31 March 2026
-
0
147,987
147,987
At 31 March 2025
-
0
77,349
77,349
At 31 March 2024
45,330
-
45,330
12
Property, plant and equipment
Leasehold property
Plant and machinery
Fixtures and fittings
Office machinery
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2024
-
0
1,536,426
133,585
1,268,685
641,071
3,579,767
Additions
-
0
70,757
-
0
30,435
-
0
101,192
Disposals
-
0
(1,121,687)
(104,116)
(1,008,616)
-
0
(2,234,419)
At 31 March 2025
-
0
485,496
29,469
290,504
641,071
1,446,540
Additions
417,556
9,943
2,235
24,329
28,339
482,402
Disposals
-
0
-
0
(329)
-
0
-
0
(329)
At 31 March 2026
417,556
495,439
31,375
314,833
669,410
1,928,613
TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
12
Property, plant and equipment
Leasehold property
Plant and machinery
Fixtures and fittings
Office machinery
Motor vehicles
Total
£
£
£
£
£
£
(Continued)
- 27 -
Accumulated depreciation and impairment
At 1 April 2024
-
0
1,265,866
105,916
1,077,337
590,192
3,039,311
Charge for the year
-
0
92,570
3,967
63,909
17,947
178,393
Eliminated on disposal
-
0
(1,121,601)
(104,076)
(1,008,519)
-
0
(2,234,196)
At 31 March 2025
-
0
236,835
5,807
132,727
608,139
983,508
Charge for the year
36,306
127,470
4,036
35,339
23,329
226,480
Eliminated on disposal
-
0
-
0
-
0
(5,550)
-
0
(5,550)
At 31 March 2026
36,306
364,305
9,843
162,516
631,468
1,204,438
Carrying amount
At 31 March 2026
381,250
131,134
21,532
152,317
37,942
724,175
At 31 March 2025
-
248,661
23,662
157,777
32,932
463,032

Property, plant and equipment includes right-of-use assets, as follows:

Right-of-use assets
2026
2025
£
£
Net values at the year end
Property
381,250
-
Motor vehicles
22,041
-
403,291
-
0
Total additions in the year
445,895
-
Depreciation charge for the year
Property
36,306
-
Motor vehicles
6,298
-
42,604
-
TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 28 -
13
Credit risk

The companies receivables of which are subject to credit terms and therefore carry credit risk are trade receivables, inter group loans and cash at bank balances.

In order to reduce the company's exposure to credit risk for trade receivables, management regularly monitors the credit rating of its customers and alters the credit limit. Receivables of which exceed the credit terms are chased promptly and management closely consider providing additional services to customer before they have cleared the outstanding debt.

IFRS 9 has been applied to calculate any credit risk and credit losses, in measuring the expected losses the trade receivables have been reported on days overdue and provision made accordingly.

Inter group loans have been considered however these are repayable on demand and no formal contract in place.

The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses, represents the company's maximum exposure to credit risk.

The company does not hold any collateral or other credit enhancements to cover this credit risk.

Past due and impaired financial asset investments

Trade receivables are usually due within 30 to 90 days. All trade receivables are subject to credit risk exposure. Based on historical default rates, the Company believes that no impairment allowance is necessary in respect of trade and other receivables not past due or past due but not impaired.
The total amount of trade receivables of which are included in the statement of financial position that have exceeded their credit terms total of £952,034.

Credit risk management

The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

14
Inventories
2026
2025
£
£
Finished goods
68,070
89,439

The cost of finished goods recognized as an expenses and included in cost of sales amounted to £9,862,815 (2025: £7,743,533).

TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 29 -
15
Trade and other receivables
2026
2025
£
£
Trade receivables
6,975,264
6,186,883
Provision for bad and doubtful debts
(127,373)
(32,259)
6,847,891
6,154,624
Amounts owed by fellow group undertakings
5,830,046
5,565,592
Other receivables
39,507
4,802
Prepayments
1,062,213
1,575,018
13,779,657
13,300,036
16
Trade receivables - credit risk
Fair value of trade receivables

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

Impaired trade receivables

Receivables are impaired either on the knowledge that the debt will not be collected or estimated at 50% of debts over 180 days.

Movement in the allowances for impairment of trade receivables
2026
2025
£
£
Balance at 1 April 2025 and at 31 March 2026
127,373
32,259
17
Secured assets

The company's bankers HSBC have security over all cash at bank balances.
The company bankers also have fixed and floating charges over all assets of the company.

18
Borrowings
2026
2025
£
£
Borrowings held at amortised cost:
Invoice discounting facility
2,494,762
2,627,665

An amount of £2,494,762 (2025: £2,627,665) included within loans are related to an agreement between the company and HSBC. The company sells its debts to the latter in return for a funding loan of a proportion of the total trade receivables. The company remains responsible for the control and collection of trade receivables and any funds collected by the company thereto belong to HSBC. The sum outstanding to HSBC is secured on the trade receivables as disclosed in note 14.

This facility carries daily interest at 5.70% on the outstanding balance each day.

TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 30 -
19
Liquidity risk

The following table details the remaining contractual maturity for the company's financial liabilities with agreed repayment periods. The contractual maturity is based on the earliest date on which the company may be required to pay.

Less than 6 months
Between 6 months and 1 year
Between 1 and 5 years
Total
£
£
£
£
At 31 March 2025
Loans - invoice discounting
2,627,665
-
-
2,627,665
Hire purchase agreements
29,172
29,592
4,344
63,108
Trade payables
1,254,696
-
-
1,254,696
Other payables
4,302,165
-
-
4,302,165
Amounts owed to fellow group undertakings
508,604
-
-
508,604
8,722,302
29,592
4,344
8,756,238
At 31 March 2026
Loans - invoice discounting
2,494,762
-
-
2,494,762
Hire purchase agreements
50,801
42,369
319,728
412,898
Trade payables
1,389,833
-
-
1,389,833
Other payables
4,248,514
-
-
4,248,514
Amounts owed to fellow group undertakings
508,604
-
-
508,604
8,692,514
42,369
319,728
9,054,611
Liquidity risk management

The company manages its liquidity risk by closely monitoring its access to bank and other credit facilities in comparison to its outstanding commitments to ensure it has sufficient funds to meet its obligations as they fall due. The Company's finance function prepares and reviews management accounts on a monthly basis, so that management can ensure that sufficient financing is in place as it is required.
The company has an invoice discounting facility with its bankers allowing for readily available access to funds.

20
Market risk
Market risk management
Interest rate risk

Interest rate risk is the risk that the fair value of future cash flow of a financial instrument will fluctuate because of change in market rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's long and short term debt obligations with floating interest rate.

TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 31 -
21
Trade and other payables
2026
2025
£
£
Trade payables
1,389,833
1,254,696
Amounts owed to fellow group undertakings
508,604
508,604
Accruals
2,472,126
2,733,009
Social security and other taxation
1,403,484
1,351,649
5,774,047
5,847,958
22
Lease liabilities
2026
2025
Net amounts due
£
£
Within one year
93,170
58,764
After more than one year
319,728
4,344
412,898
63,108
2026
2025
Maturity analysis of future lease payments
£
£
Within one year
93,170
65,649
In two to five years
319,728
10,626
Total undiscounted liabilities
412,898
76,275
Future finance charges and other adjustments
-
(13,167)
Lease liabilities in the financial statements
412,898
63,108

The average effective interest rate applying to leased assets is 6.69%.

Assets are financed over periods ranging from 3 years to 5 years, depending on the asset.

Other leasing information is included in note 27.
23
Deferred taxation
Liabilities
2026
2025
£
£
Deferred tax balances
77,355
77,355
TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
23
Deferred taxation
(Continued)
- 32 -

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Accelerated capital allowances
£
Balance at 1 April 2024
-
0
Deferred tax movements in prior year
Charge/(credit) to profit or loss
77,355
Liability at 1 April 2025 and 31 March 2026
77,355
24
Retirement benefit schemes
2026
2025
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
340,784
366,543

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

25
Share capital
2026
2025
2026
2025
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1,000
1,000
1,000
1,000
26
Contingent liabilities

The company has guaranteed the bank borrowings of Tenon Facility Management UK Limited by way of an inter-group cross guarantee with accession made between Tenon Facility Management UK Limited and Tenon FM Limited. As at 31 March 2026, the bank borrowings of Tenon Facility Management UK Limited secured under these agreements were £9,349 (2025: £119,735).

TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 33 -
27
Other leasing information
As lessee

Operating lease commitments - Company as lessee.
The Company has entered into commercial leases on certain items of office equipment and buildings.

Land and building leases are for a fixed period up to 2 years. Other leased items consist of office equipment. The office equipment lease has already been extended past its initially fixed term and has the option at the end of the new revised term.

The Company's lease of land and buildings are subject to rent review at various intervals specified in the leases.

The effective interest rate used on these leases being an average of 6.69%.

2026
2025
Amounts recognised in profit or loss:
£
£
Expense relating to short-term leases
-
10,575

Short term and low value asset leases have been expensed on a straight line basis.

Set out below are the future cash outflows to which the lessee is potentially exposed that are not reflected in the measurement of lease liabilities:

2026
2025
Land and buildings
£
£
Within one year
95,853
67,308
Between two and five years
123,520
46,632
219,373
113,940
2026
2025
Operating leases apart from land and buildings
£
£
Within one year
46,632
50,375
Between two and five years
-
144,112
46,632
194,487
Information relating to lease liabilities is included in note 22.
TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 34 -
28
Capital risk management

The company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance,

The capital structure of the company consists of debt, cash and cash equivalents and equity comprising share capital, reserves and retained earnings. The company reviews the capital structure annually and as part of this review considers that cost of capital and the risks associated with each class of capital.

Externally imposed capital requirements to which the company is subject have been complied with in the period.

29
Events after the reporting date

There have been no significant events after the reporting period.

30
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel, including directors, is the same as directors remuneration, as disclosed in note 8.

Other transactions with related parties

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

2026
2025
£
£
Parent company
96,000
96,000

Transaction during the period with a parent entity relate to a management fee paid.

Transactions during the period with a fellow subsidiary relate to expenses incurred by Elite Cleaning & Environmental Services Limited on behalf of this company.

The following amounts were outstanding at the reporting end date:

2026
2025
Amounts due to related parties
£
£
Other related parties
508,604
508,604

The amounts outstanding are unsecured and have been provided interest free and repayable on demand.

TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
30
Related party transactions
(Continued)
- 35 -

The following amounts were outstanding at the reporting end date:

2026
2025
Amounts due from related parties
£
£
Parent company
2,902,862
2,902,862
Other related parties
2,927,183
2,662,730
5,830,045
5,565,592

The amounts outstanding are unsecured and have been provided interest free and repayable on demand.

Other information

Related party | Balance at 31.03.2 6 | Balance at 31.03.2 5
Tenon Facility Management UK Limited (Fellow subsidiary) | £2,927,183 | £2,662,730
Office & General Group Ltd (Parent company) | £2,902,862 | £2,902,862
Elite Cleaning & Environmental Services Ltd (Fellow subsidiary) | (£508,604) | (£508,604)

Expenses incurred by fellow subsidiary Elite Cleaning & Environmental Services Ltd on behalf of the company £Nil (2025: £Nil)

Management fee paid to parent company Tenon Facility Management UK Limited £96,000 (2025: £96,000).

31
Controlling party

The immediate parent company is Office & General Group Limited. The ultimate parent company and controlling party is Tenon Facility Management (India) Private Limited, a company registered in India.

TENON FM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 36 -
32
Cash generated from operations
2026
2025
£
£
Profit for the year before taxation
788,505
790,891
Adjustments for:
Finance costs
188,973
206,808
(Gain)/loss on disposal of property, plant and equipment
-
223
Amortisation and impairment of intangible assets
13,467
45,330
Depreciation and impairment of property, plant and equipment
226,480
178,393
Movements in working capital:
Decrease in inventories
21,369
21,312
Increase in trade and other receivables
(479,621)
(546,245)
Decrease in trade and other payables
(73,911)
(558,863)
Cash generated from operations
685,262
137,849
33
Analysis of changes in net debt
1 April 2025
Cash flows
31 March 2026
£
£
£
Cash at bank and in hand
120,772
1,296
122,068
Borrowings excluding overdrafts
(2,627,665)
132,903
(2,494,762)
Lease liabilities
(63,108)
(349,790)
(412,898)
(2,570,001)
(215,591)
(2,785,592)
1 April 2024
Cash flows
31 March 2025
Prior year:
£
£
£
Cash at bank and in hand
349,585
(228,813)
120,772
Borrowings excluding overdrafts
(2,462,256)
(165,409)
(2,627,665)
Lease liabilities
(121,871)
58,763
(63,108)
(2,234,542)
(335,459)
(2,570,001)
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