Cityside Electrical Co Limited operates in the competitive construction industry, providing high-quality Mechanical and Electrical, data & security solutions across various market sectors. In 2025, the group demonstrated positive financial performance, marked by significant revenue growth, which reflects strong market demand and effective business operations.
The group has been active in sectors including Data Centres, Life Sciences, Commercial Offices, Hotels and Leisure, and Rail. Turnover has increased to £379 million, with gross margin returning to previously seen levels of 13.5%. We maintain strong relationships with our existing clients, comprising main contractors and end-users in London, as well as from our regional office in Cambridge. This investment in the regional office has allowed us to diversify into a new market, delivering the same high-quality engineering solutions in and around Cambridge that we have provided in London for the past 94 years.
Following the group's successful return to Europe in 2024, the business is now delivering multiple data centres in a number of different jurisdictions. The wider European data centre market continues to see significant investment and growth which is providing the group with further opportunities for growth in this sector. Previous experience in the European market has equipped the group to deliver projects that meet the high standards that underpin the group’s core values.
The group has a very impressive secured forward orderbook of over £1,000m, the highest in the group’s history. This substantial order book is expected to drive revenue over £400 million for 2026, with further growth in revenues expected in 2027 and 2028. Demand in the targeted market sectors remains steady, contributing to continued growth and profitability for the business in the coming financial years. This forward orderbook has been supported by continued strong work winning in the core London market as well as growth in regional work within the UK and data centres both in the UK and Europe.
Market diversification, efficient cost control, effective pricing strategies, and a commitment to innovation provide stability within the forward order book margins. This indicates a positive forecast for the year ending September 2026.
We continue to be selective with our customer base. A thorough quality assurance process is undertaken for all companies that the group trade with to ensure risk and uncertainty is avoided throughout.
Cashflow and liquidity of the group are monitored at a project and group level on a regular basis, with any risks and uncertainty addressed when identified.
A strict policy of the group is to closely monitor the performance of each project so that we have sight of any emerging risks very early. Each project is reviewed in detail monthly by the Directors to ensure that we mitigate any unexpected risks as they occur.
Forward Secured Orderbook of over £1,000m
Average staff number up to 497 from 458
Staff retention rate of 90%
Accident Frequency Rate down to 0.48 from 0.65
Turnover Growth:
The group reported a turnover of £379m in 2025, an increase from £323m in 2024, representing 17% growth.
Profitability:
Gross profit increased from £37m in 2024 to £53m in 2025.
Operating profit grew significantly from £16m in 2024 to £27m
Net profit after tax rose from £11m in 2024 to £21m in 2025, a 78% increase.
Asset Growth:
Total assets increased to £181m in 2025 from £129m in 2024.
Cash at bank improved significantly from £30m to £58m, enhancing liquidity.
Liabilities Management:
Short-term liabilities rose to £108m from £81m due to the growth in turnover.
Long-term liabilities increased from £1m to £5m, these are primarily subcontractor retention payments due
Equity Growth:
Shareholder equity increased to £67m from £48m, driven by retained earnings.
Section 172 of the Companies Act 2006 requires that the directors act in a way that they consider to be in good faith, would be most likely to promote the success of the group for the benefit of its shareholders and in doing so have regard to:
• The likely consequences of any decision in the long term;
• The interests of the Group’s employees;
• The need to foster the Group’s business relationships with suppliers, customers and others;
• The impact of the Group’s operations on the community and the environment;
• The desire of the group to maintain a reputation for high standards of business conduct;
• The need to act fairly between members of the Group
The Directors have complied with these requirements. A regular strategic board meeting is held with all key decisions taken with a view to the long term health of the Group. The group regards the satisfaction and retention of staff, clients and suppliers as a key factor in the continued success of the Group, with decisions being taken that consider the views of all of these stakeholders.
On behalf of the board
The Directors present their annual report and financial statements for the year ended 30 September 2025.
The results for the year are set out on pages 11-13.
No interim dividend was paid. The directors do not recommend payment of a final dividend.
The Directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group has carried out innovative energy and cost saving engineering for mechanical and electrical design which has resulted in R&D tax credits.
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
The group will continue to invest in growing sales through its existing customer base and exploring new customers.
The auditors, HJS Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting
This report was undertaken in accordance with the Streamlined Energy and Carbon (“SECR”) Reporting requirements outlined in the Companies Act (2006) for large quoted and unlisted companies which requires the group to report on its Greenhouse Gas (GHG) emissions.
This report contains details on annual GHG emissions, total energy consumption covering our offices, transport assets, and energy efficiency and environmental management actions implemented during the reporting year. This report contains our SECR disclosure for the 2025 reporting year (1st October 2024 –
30th September 2025).
Methodology
Scope of analysis and data collection
Over 2024/25 we have collected primary data for our buildings and company vehicle activities including: electricity consumption (kWh), gas consumption (kWh), company car mileage, and grey fleet mileage. All primary data used within this report is from 1st October 2024 – 30th September 2025.
Calculation Methodology
We have used the Greenhouse Gas Protocol Corporate Reporting Standard (GHG Protocol) methodology for compiling this GHG data and have calculated our GHG emissions in accordance with the UK Government’s reporting guidelines for Company Reporting. To ensure consistency in our reporting we are reporting all GHG emissions in units of CO2e (carbon dioxide equivalent), and have used 2025 GHG Conversion Factors for Company Reporting, published annually by Defra and DESNZ.
GHG Emissions Scopes
The following reporting scopes (as outlined by the Greenhouse Gas Protocol) are included within this disclosure:
Scope 1 GHG Emissions: direct emissions from sources which the company owns or controls. This includes natural gas consumption in our buildings and emissions arising from travel in company vehicles (diesel/petrol).
Scope 2 GHG Emissions: indirect emissions relating solely to the generation of purchased electricity that is consumed by the company, as well as emissions arising from travel in company vehicles (electric).
Scope 3 GHG Emissions: indirect emissions relating to the transmission & distribution losses of purchased electricity, as well as emissions arising from business travel in privately-owned vehicles.
Energy Consumption
The table below displays our annual energy consumption for electricity, natural gas, and company vehicles for the 2025 reporting year. As per SECR reporting requirements this information is presented in Kilowatt hours (kWh).
Total GHG Emissions for Scopes 1, 2 and 3 for the reporting period 1st October 2024 – 30th September 2025 are 157.15 tonnes CO2e. Of our total GHG emissions Scope 1 accounts for 57.6%, Scope 2 for 32.0% and Scope 3 for 10.4%. Our GHG Emissions Intensity per £M turnover is 0.49 tonnes CO2e, and our GHG Emissions Intensity per employee is 0.28 tonnes CO2e.
During the reporting period, the group has been in a significant growth phase, with both employee numbers and financial turnover increasing considerably. As part of this expansion, the company took over an additional floor at its Camperdown Street head office and occupied two new units at its Cambridge site. The increased operational footprint and higher occupancy levels resulted in greater energy demand across the business, particularly for electricity and natural gas usage. Consequently, this expansion contributed to an increase in overall emissions compared with the previous reporting year, reflecting the company’s continued business growth and site development activities.
During the reporting year, we have continued to strengthen our approach to energy efficiency and environmental management across our operations. A key initiative has been the ongoing expansion of our electric vehicle leasing programme, supporting employees in transitioning away from petrol and diesel vehicles. This has contributed to reducing emissions associated with business travel and commuting, while reinforcing our commitment to lower-carbon transport solutions.
We have also engaged with our landlord to explore potential opportunities to improve the energy performance of our leased premises. In addition, plans are being developed for the refurbishment of our head office space, which will incorporate energy efficiency improvements, including upgraded lighting, to help reduce operational energy demand.
In recognition of the importance of value chain emissions, we have onboarded a carbon accounting platform to strengthen the measurement and management of our Scope 3 emissions. This will enable more robust data collection, improved emissions visibility, and enhanced engagement with suppliers and internal stakeholders, supporting more informed decision-making and targeted reduction strategies over time.
These initiatives demonstrate our ongoing commitment to continuous improvement in energy and carbon management. Through a combination of operational enhancements, digital capability, and stakeholder collaboration, we are taking practical steps to reduce our environmental impact and support progress towards our Net Zero ambitions.
Pricing
This year prices have eased a little and we have been securing work at slightly better margins although there are still signs that some competitors are being aggressive with their pricing. With a strong order book we are able to decline any business that is too competitive.
In order to maintain the balance of winning work at reasonable margins we have to manage our relationships better than ever and ensure that we maintain an excellent performance throughout the life of the contract and during the tender process. We have commenced a process of customer feedback on every project at various stages to enable us to focus on improving our service level. Ensuring we have the right supply chain and constantly monitoring operational and overhead costs enables us to work effectively in the market.
Credit
The company is exposed to credit risk on its trade and other receivables due to the credit terms offered to its customers, this risk is managed as set out in the accounting policy notes (Note 1). In the opinion of the directors there is no particular credit risk in any one customer. It is confirmed that the fair value of trade receivables is not materially different from the carrying value. Trade receivables are not interest bearing.
Liquidity
The company has policies that require appropriate credit checks on potential customers before sales are made.
Cash Flow
Financial management of our projects is critical to improving our cash flow so careful review of both upstream and downstream accounts is essential ensuring that our accounts are paid in line with terms. Our board spends a great deal of their time managing this well. The company is exposed to exchange rate risk due to their work overseas. To reduce this risk the company forward buys foreign exchange contracts to offset the income being received and reduce the impact of adverse exchange rate movements.
Financial risk management objectives and policies
Risks are a constant agenda item and are formally and regularly reviewed by the Board with appropriate processes in place to monitor and mitigate them.
We have audited the financial statements of Cityside Electrical Co Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2025 which comprise the group profit and loss account, 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, the company 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).
Basis for opinion
Conclusions relating to going concern
Other information
Opinions on other matters prescribed by the Companies Act 2006
As explained more fully in the Directors' responsibilities statement, 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
The capability of the audit in detecting irregularities, including fraud. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK regulatory principles, such as Employment Law and Health & Safety regulations. We also considered the laws and regulations which have a direct impact on the financial statements such as the Companies Act 2006.
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management bias in accounting estimates and judgmental areas of the financial statements.
Audit procedures performed by the audit engagement team included:
Discussions with senior management, including consideration of known or suspected instances of noncompliance with laws and regulations or instances of fraud;
Identifying and testing journal entries based on risk criteria;
Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing;
Testing transactions entered into outside of the normal course of the company's business;
Reviewing any potential litigation or claims against the entity which indicate any potential noncompliance issues.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or though 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.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
As permitted by s408 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 £5,527,000 (2024 - £162,000 profit).
Cityside Electrical Co Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1st Floor, 25 Camperdown Street, London, England, E1 8DZ.
The group consists of Cityside Electrical Co Ltd 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 £'000.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Cityside Electrical Co Ltd 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 30 September 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.
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 Directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Construction contracts
Revenue is derived from construction contracts.
Contract revenue is measured at the fair value of the consideration received or receivable and includes the initial amount of revenue agreed in the contract, plus variations, claims and incentive payments to the extent that it is probable that they will result in revenue and they are capable of being measured reliably. Revenue is stated net of discounts, VAT and other sales related taxes.
Interest income
Interest income is accrued on a time basis in accordance with the effective interest rate method.
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.
Tangible fixed assets are reviewed annually by the directors for impairment. Any impairment is taken to the profit and loss account.
Where costs incurred plus recognised profits less recognised losses exceed progress billings, the balance is shown as due from customers on construction contracts within trade and other receivables. Where progress billings exceed costs incurred plus recognised profits less recognised losses, the balance is shown as due to customers on construction contracts within trade and other payables.
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.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
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.
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.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Research and development
Research expenditure is expensed through the profit and loss in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit.
In the application of the group’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 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.
Construction contracts
The main area of estimation uncertainty are the construction contracts. Firstly profit is only recognised when the outcome of the project can be reliably estimated. There is uncertainty here that the outcome is incorrectly considered to be profitable.
Secondly when the project outcome can be reliably estimated the stage of completion is based on the billing to date and costs are recognised in order to include profit at the forecast overall margin on the job. There is some uncertainty over estimating future costs and any additional work or extras which may occur.
An analysis of the group's turnover is as follows:
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 30 September 2025 are as follows:
Registered office addresses (all UK unless otherwise indicated):
Details of joint ventures at 30 September 2025 are as follows:
This company is dormant and therefore no transactions are noted in the financial statements for this joint venture.
Included within trade creditors are retentions held totalling £11,595,886 (2024 - £7,077,834 ).
Included within trade creditors due in more than one year is retentions held totalling £4,755,350 (2024 - £1,004,738).
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The majority of the deferred tax liability set out above is expected to be released upon conclusion of the Norway contracts.
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.
There were contributions of £344,186 (2024: £269,601) owed to the scheme at the balance sheet date.
The company has one class of ordinary shares which carry no right to fixed income.
The company is party to a cross guarantee as security for the bank borrowings of the group.
The bank has a fixed and floating charge over the investments, property and assets of Cityside Electrical Co Ltd, Phoenix ME Limited and PhoenixTrescray Ltd.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Operating lease payments represent rentals payable by the company for its office premises and storage facilities.
The remuneration of key management personnel is as follows.
The following amounts were outstanding at the reporting end date:
The company has taken advantage of the exemption available under FRS 102 paragraph 33.1a whereby it has not disclosed transactions with any wholly owned subsidiary undertaking of the group.
The ultimate controlling party is that of the director, Mr L Compton, due to his majority shareholding.
Advances or credits have been granted by the group to its directors as follows:
One of companies within the group is working with R&D specialists to finalise the 2025 R&D claim. At the time of signing the consolidated financial statements the value of the R&D claim has been placed in as an estimate. Funds are expected to be confirmed and received during the next financial year.
Subsequent to the Reporting Date, the Group has entered discussions with a third party with a view to acquiring a percentage of the share capital of Phoenix ME and its subsidiaries, these discussions were finalised on the 5 August 2026. The Directors do not consider that the sale of shares will have an adverse impact on the group.