REGISTERED NUMBER: 08665358 (England and Wales)

Purgo Supply Services Ltd

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 30 September 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

C R Holman

A Page

REGISTERED OFFICE:

Unit 07 Tideway Yard

125 Mortlake High Street

London

SW14 8SN

REGISTERED NUMBER:

08665358 (England and Wales)

AUDITORS:

RAA Audit LLP (formerly SKS Audit LLP)

Statutory Auditors

3 Sheen Road

Richmond Upon Thames

TW9 1AD

The directors present their strategic report for the year ended 30 September 2025.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the company are reviewed in detail by the directors and no material additional risk or uncertainty has been identified other than those detailed below. These risks are broadly accompanied with competitive, operational and financial risks. The directors risk management objectives consist of identifying and monitoring those risks which could have an adverse impact on the company assets, profitability or cash flows.

The company is exposed to financial risks including credit risk, liquidity risk, and market risk, arising from the company's normal business activities. These risks and the company's approach to dealing with them are discussed below.

Credit risk

The company's principal financial assets are bank balances, trade and other receivables. The company's credit risk is primarily attributable to its trade receivables. The company gives significant attention to credit risk as significant balances, which are analysed for creditworthiness.

Liquidity risk

Liquidity risk is the risk that insufficient working capital will be generated by the company's business activities and that in this event suitable sources of funding may not be available. The company directors ensure that sufficient funds are available for on-going operations. The company controls this risk by maintaining appropriate funding levels through its operating policy. The company also exercises effective credit management and through cash flow forecasting working capital and capital expenditure requirements on an ongoing basis. The company has a funding facility through factoring and is exposed to changes in the cost of borrowing. This exposure is mitigated through internal procedures and monitoring processes.

Operational Risks

The principal operational risk facing the Company relates to the delivery of cleaning services. The Company's ability to maintain strong customer relationships and consistently provide high-quality services is fundamental to its operations. This risk is mitigated through robust operational processes, effective staff management, and ongoing quality monitoring to ensure services are delivered to the highest standards.

Competitive risk

The company operates in the facilities management sector the market remains competitive in a price sensitive market. This competitive risk is further mitigated by regular reviews of competitive offerings and market providers. Actions are taken immediately where possible.

Capital risk

The company's objectives are to safeguard the company's ability to continue as a going concern in order to provide returns to shareholders. The Company defines capital as share capital plus reserves. The company manages the risk internally through continual monitoring of profitability and growth developments in the business.

Future plans

In line with our growth strategy, we have a number of significant projects in the pipeline, with estimated values and start dates spanning into 2025/26. These projects, across various sectors including education and trusts, represent a key part of our forward-looking plan. As we continue to work on these opportunities, we anticipate substantial growth potential and long-term value creation. The inclusion of these projects in our strategic report underscores our commitment to expanding our portfolio and addressing evolving market demands.

FINANCIAL KEY PERFORMANCE INDICATORS

The directors of the group use a variety of financial performance indicators, including turnover, total operating profit, profit/(loss) after tax and shareholders funds. These are reviewed and assessed quarterly by the board and appropriate action taken to ensure growth targets are being achieved. The group's key financial and non-performance indicator for the year are as follows:

2025

2024

£

£

Turnover

22,527,364

18,622,091

Operating profit

605,938

38,324

Profit/(loss) after tax

114,716

(122,303

)

Shareholders funds

52,940

(61,776

)

The company returned to profitability during the year driven by increased turnover, improved operational efficiencies and expansion of customer contracts. The business has also invested in infrastructure and workforce to support continued growth.

ON BEHALF OF THE BOARD:

A Page - Director

6 August 2026

The directors present their report with the financial statements of the company for the year ended 30 September 2025.

PRINCIPAL ACTIVITY

The company continues to expand its cleaning services operations across multiple sectors including education and commercial clients.

DIVIDENDS

No dividends will be distributed for the year ended 30 September 2025.

DIRECTORS

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

C R Holman

A Page

QUALIFYING THIRD PARTY INDEMNITY PROVISIONS

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

DIRECTORS' RESPONSIBILITIES STATEMENT

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

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

• select suitable accounting policies and then apply them consistently;

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

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.

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.

ENGAGEMENT WITH EMPLOYEES

The Company seeks to ensure that every employee, without exception, is treated equally and fairly and that all employees are aware of their responsibilities. The company has measures in place to ensure the policies and procedures fully support our disabled colleagues. The company ensures it is responsive to the needs of its employees. Therefore, should any employee of the company become disabled during their time with us, we will actively retrain that employee and make reasonable adjustments to their working environment where possible, in order to keep the employee with the company. It is the policy of the company that the recruitment, training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

STATEMENT OF DISCLOSURE TO AUDITOR

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

AUDITORS

The auditors, RAA Audit LLP (formerly SKS Audit LLP), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A Page - Director

6 August 2026

Opinion

We have audited the financial statements of Purgo Supply Services Ltd (the 'company') for the year ended 30 September 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 September 2025 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 matters

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

-	adequate accounting records have not been kept, 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' Responsibilities Statement set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

Auditors' responsibilities for the audit of the financial statements

Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

-Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation

.-It is considered that non-compliance of Health & Safety laws and regulations may be fundamental to the operating aspects of the business.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Moganarden Chelvanaigum (Senior Statutory Auditor)

for and on behalf of RAA Audit LLP (formerly SKS Audit LLP)

Statutory Auditors

3 Sheen Road

Richmond Upon Thames

TW9 1AD

6 August 2026

Turnover

22,527,364

18,622,091

Cost of sales

(15,664,276

)

(13,341,419

)

Gross profit

6,863,088

5,280,672

Administrative expenses

(6,263,109

)

(5,251,806

)

599,979

28,866

Other operating income

5,959

9,458

Operating profit

4

605,938

38,324

Interest receivable and similar income

(110

)

326

605,828

38,650

Interest payable and similar expenses

6

(420,351

)

(123,217

)

Profit/(loss) before taxation

185,477

(84,567

)

Tax on profit/(loss)

7

(70,761

)

(37,736

)

Profit/(loss) for the financial year

114,716

(122,303

)

Profit/(loss) for the year

114,716

(122,303

)

Other comprehensive income

Profit and loss account

-

6,066

Income tax relating to other comprehensive income

-

-

Other comprehensive income for the year, net of income tax

-

6,066

Total comprehensive income for the year

114,716

(116,237

)

Fixed assets

Tangible assets

8

1,927,021

1,810,620

Current assets

Debtors: amounts falling due within one year

9

4,872,482

2,815,585

Cash at bank and in hand

325,639

486,249

5,198,121

3,301,834

Creditors

Amounts falling due within one year

10

(5,110,668

)

(3,417,804

)

Net current assets/(liabilities)

87,453

(115,970

)

Total assets less current liabilities

2,014,474

1,694,650

Creditors

Amounts falling due after more than one year

11

(1,811,872

)

(1,594,820

)

Provisions for liabilities

14

(149,662

)

(161,606

)

Net assets/(liabilities)

52,940

(61,776

)

Capital and reserves

Called up share capital

15

1,000

1,000

Retained earnings

51,940

(62,776

)

Shareholders' funds

52,940

(61,776

)

The financial statements were approved by the Board of Directors and authorised for issue on 6 August 2026 and were signed on its behalf by:

A Page - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2023

1,000

53,461

54,461

Changes in equity

Total comprehensive income

-

(116,237

)

(116,237

)

Balance at 30 September 2024

1,000

(62,776

)

(61,776

)

Changes in equity

Total comprehensive income

-

114,716

114,716

Balance at 30 September 2025

1,000

51,940

52,940

Cash flows from operating activities

Cash generated from operations

1

(410,349

)

737,567

Interest paid

(420,351

)

(78,581

)

Interest element of hire purchase and finance lease rental payments paid

-

(44,636

)

Tax paid

(3,549

)

21,090

Net cash from operating activities

(834,249

)

635,440

Cash flows from investing activities

Purchase of tangible fixed assets

(631,703

)

(724,502

)

Sale of tangible fixed assets

30,752

-

Interest received

(110

)

326

Net cash from investing activities

(601,061

)

(724,176

)

Cash flows from financing activities

Capital repayments in year

1,414,827

359,213

Amount introduced by directors

-

416,681

Amount withdrawn by directors

(140,127

)

(535,619

)

Net cash from financing activities

1,274,700

240,275

(Decrease)/increase in cash and cash equivalents

(160,610

)

151,539

Cash and cash equivalents at beginning of year

2

486,249

334,710

Cash and cash equivalents at end of year

2

325,639

486,249

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit/(loss) before taxation

185,477

(84,567

)

Depreciation charges

490,068

665,352

Profit on disposal of fixed assets

(5,520

)

-

Finance costs

420,351

123,217

Finance income

110

(326

)

1,090,486

703,676

Increase in trade and other debtors

(2,056,896

)

(327,625

)

Increase in trade and other creditors

556,061

361,516

Cash generated from operations

(410,349

)

737,567

2.	CASH AND CASH EQUIVALENTS

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

Year ended 30 September 2025

30.9.25

1.10.24

£

£

Cash and cash equivalents

325,639

486,249

Year ended 30 September 2024

30.9.24

1.10.23

£

£

Cash and cash equivalents

486,249

334,710

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.10.24

Cash flow

At 30.9.25

£

£

£

Net cash

Cash at bank and in hand

486,249

(160,610

)

325,639

486,249

(160,610

)

325,639

Debt

Hire purchase and finance leases

(1,633,283

)

(1,414,827

)

(3,048,110

)

Debts falling due within 1 year

(10,000

)

3,333

(6,667

)

Debts falling due after 1 year

(6,667

)

6,667

-

(1,649,950

)

(1,404,827

)

(3,054,777

)

Total

(1,163,701

)

(1,565,437

)

(2,729,138

)

1.	STATUTORY INFORMATION

Purgo Supply Services Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

COMPANY INFORMATION

Purgo Supply Services Limited is a private company limited by shares incorporated in England and Wales.The registered office is Unit 07 Tideway Yard, 125 Mortlake High Street, London, England, SW14 8SN.

ACCOUNTING CONVENTION

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

The company is a medium company for reporting purposes and has complied with the full disclosure requirements of FRS 102.

The disclosure requirements of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts 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.

TURNOVER

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

HIRE PURCHASE AND LEASING COMMITMENTS

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

GOING CONCERN

The financial statements have been prepared on a going concern basis.

During the year ended 30 September 2025, the company returned to profitability with a profit after tax of £114,716 and net assets of £52,940. The directors have reviewed forecasts and cash flow projections for a period of at least twelve months from the date of approval of these financial statements.

Based on this assessment, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements continue to be prepared on a going concern basis and no material uncertainties have been identified.

TANGIBLE FIXED ASSETS

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

Leasehold improvements is considered to have a finite useful life and is amortised on a systematic basis over its expected life.

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 improvements

Amortised over the lease term

Equipment

20% on cost

Fixtures and fittings

20% on cost

Computer equipment

33.33% on cost

Motor Vehicles

20% on cost

During the year, the directors reviewed the estimated useful lives of certain assets and revised depreciation rates to better reflect their expected economic usage. This change has been accounted for prospectively as a change in accounting estimate.

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 credited or charged to profit or loss.

IMPAIRMENT OF FIXED ASSETS

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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

CASH AND CASH EQUIVALENTS

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

FINANCIAL INSTRUMENTS

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and Other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares. Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and Subsequently at amortised cost, unless it qualifies as a loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the: present value of estimated cash flows: discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current' effective interest rate determined under the contract.

BASIC FINANCIAL ASSETS

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.

CLASSIFICATION OF FINANCIAL LIABILITIES

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 company after deducting all of its liabilities.

BASIC FINANCIAL 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.

EQUITY INSTRUMENTS

Equity instruments issued by the company 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 company.

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 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 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 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 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.

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 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.

RETIREMENT BENEFITS

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

LEASES

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

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

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

CRITICAL JUDGEMENTS IN APPLYING THE COMPANY'S ACCOUNTING POLICIES

The critical judgments that the directors have made in the process of applying, the company's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below:

Assessing indicators of impairment

In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairment identified during the current financial year.

Key sources of estimation uncertainty

The.key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Determining residual values and useful economic lives of property, plant and equipment

The company depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors. Including technological innovation, product life cycles and maintenance programmes.

Judgement is applied by management when, determining the residua) values of assets. When determining the residual value management aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.

Estimating value in use

Where an indication of impairment exists the directors will carry out an impairment review to determine the recoverable-amount, which is the higher of fair value less cost to sell and value in use. The value in use calculation requires the directors to estimate the. future cash flows expected to arise from the asset or the cash generating unit and a suitable discount rate in order to calculate present value.

Recoverability of receivables

If necessary, the company establishes a provision for receivables that are estimated not to be recoverable. When assessing the recoverability the directors consider factors such, as aging of receivables, past experience of recoverability, and the credit profile of. an individual or groups of customers.

Measurement of contract assets estimate

The measurement of contract assets requires management to apply judgement and estimation in determining the value of services performed but not yet invoiced at the reporting date. Estimates are based on contractual terms, the stage of completion, expected labour hours, applicable labour rates and supporting operational records.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

15,573,995

13,305,361

Social security costs

1,324,199

765,376

Other pension costs

591,118

492,485

17,489,312

14,563,222

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

2025

2024

Directors

2

2

Administration

49

28

Cleaners

1,135

1,038

1,186

1,068

Directors' remuneration

2025

2024

£

£

Remuneration for qualifying services

432,000

447,250

Company pension contributions to defined contribution schemes

9,960

9,960

422,040

457,210

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).

Remuneration disclosed above includes the following amounts paid to the highest paid director:

2025

2024

£

£

Remuneration for qualifying services

390,000

412,000

Company pension contributions to defined contribution schemes

9,960

9,960

380,040

421,960

Directors are considered the key management personnel of the company.

4.	OPERATING PROFIT

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

2025

2024

£

£

Hire of plant and machinery

119,567

154,321

Other operating leases

85,667

64,596

Depreciation - owned assets

490,070

665,350

Profit on disposal of fixed assets

(5,520

)

-

5.	AUDITORS' REMUNERATION

2025

2024

£

£

Audit remuneration of audit of the financial statements of the company

15,500

16,500

Accountancy fees

7,195

7,590

22,695

24,090

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

303

553

PAYE interest

1,437

4,128

VAT interest & penalty

16,614

13,175

Interest on corporate tax

2,575

-

Other loan interest

327,941

60,725

HP interest

71,481

44,636

420,351

123,217