ACCOUNTS - Final Accounts preparation

An analysis of turnover by class of business is as follows:

Registered number: 08516043

LD ECO LTD

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

LD ECO LTD

COMPANY INFORMATION

Directors	Mr F Cressall
	Mr L Davies


Registered number	08516043


Registered office	Bay View Office
	Bay View Road
	Llanelli
	Carmarthenshire
	SA14 8SN


Independent auditor	MHA
	Swansea
	United Kingdom

LD ECO LTD

CONTENTS

	Page
Strategic Report	1 - 4
Directors' Report	5 - 6
Independent Auditor's Report	7 - 10
Statement of Comprehensive Income	11
Balance Sheet	12
Statement of Changes in Equity	13
Statement of Cash Flows	14
Analysis of Net Debt	15
Notes to the Financial Statements	16 - 33

LD ECO LTD

STRATEGIC REPORT

FOR THE YEAR ENDED 31 AUGUST 2025

Introduction

The directors present their strategic report for the year ended 31 August 2025.

Principal Activity

The principal activity of the company during the year was the administration and management of the installation of energy efficiency improvement measures under the Government's ECO4 scheme. The company oversees the coordination of these works through approved subcontractors on behalf of major energy suppliers. The directors note that ECO4 ended in March 2026, and future activity levels will depend on the development of any replacement schemes.

Business review

The company continued its activities as a managing agent and co-ordinator of energy efficiency improvement works under the Government's ECO4 scheme during the year ended 31 August 2025. Activity levels remained strong throughout the year, although revenue reduced to £32.3 million (2024: £47.1 million), reflecting a lower volume of projects completed compared to the previous period. Despite this reduction in turnover, the company continued to deliver strong levels of profitability through effective project management and cost control.

Gross profit for the year amounted to £5.8 million (2024: £8.8 million), representing a gross profit margin of 18.0% (2024: 18.7%). Whilst margins reduced marginally compared to the prior year, the directors consider the overall performance to be satisfactory given changing market conditions and the maturity of the ECO4 scheme. Operating profit was £3.9 million (2024: £5.5 million) and profit after taxation was £2.9 million (2024: £4.1 million).

The company maintained a strong liquidity position during the year, with cash balances of £3.7 million at the year end (2024: £5.9 million). The reduction in cash reserves principally reflects dividends paid to shareholders during the year of £3.3 million together with movements on directors' current accounts. The company continues to be cash generative and remains well placed to meet its ongoing operational commitments.

Net assets at 31 August 2025 were £1.6 million (2024: £2.0 million). The reduction in net assets primarily reflects the level of distributions made during the year, partially offset by retained profits generated from trading activities. The directors remain satisfied with the overall financial position of the company and its ability to support future operations.

The company continues to focus on maintaining strong relationships with energy suppliers, subcontractors and other key stakeholders to facilitate the delivery of energy efficiency improvement measures. Throughout the year management has continued to monitor operational performance, quality standards and warranty obligations to ensure the continued successful delivery of projects. The warranty provision at the year end reflects the directors' assessment of future obligations arising from completed installations.

The directors are pleased with the company's overall performance during the year and believe the business remains well positioned to take advantage of opportunities arising from future government-backed energy efficiency initiatives and successor schemes following the conclusion of ECO4.

Page 1

LD ECO LTD

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2025

Financial key performance indicators

The key financial highlights are as follows:

	2025	2024
	£000's	£000's

Turnover	32,317	47,132

Gross profit	5,821	8,805

GP%	18.0%	18.7%

EBITDA	3,993	5,553

Net assets	1,627	1,990

Future Developments

The directors continue to evaluate opportunities for the business following the conclusion of the ECO4 scheme. The company remains well positioned to participate in any future Government-backed energy efficiency initiatives or successor funding programmes should they become available, whilst also exploring opportunities to develop a direct-to-customer offering for energy efficiency and renewable energy installations. By maintaining its operational infrastructure, industry relationships and technical expertise, the company intends to retain the flexibility to respond to future funded schemes as well as alternative routes to market, thereby supporting the long-term sustainability and growth of the business.

Page 2

LD ECO LTD

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2025

Principal risks and uncertainties

The principles risks and uncertainties that affect the company are:

Risk Area	Nature of risk	Actions to mitigate / reduce

Installation quality and warranty obligations	The company relies on approved subcontractors to undertake installation works on its behalf. Poor workmanship, non-compliance with scheme requirements, delays in delivery or defects in completed installations may result in customer complaints, remedial works, warranty claims, reputational damage and financial loss.	The company undertakes due diligence before engaging subcontractors, including assessments of competence, experience, financial stability and regulatory compliance. Performance is monitored throughout engagements, and appropriate contractual arrangements are maintained to ensure quality standards and delivery requirements are met. The company also reviews customer complaints, remedial works and historical claims data on an ongoing basis and maintains a warranty provision to reflect the estimated cost of future obligations arising from completed installations.

Price	The company is not significantly exposed to commodity price risk as a result of its operations.	The company regularly reviews costs and supplier pricing to ensure it obtains value for money without compromising on the quality of the goods or services provided.

Liquidity	The company manages liquidity risk by maintaining sufficient funds to meet its operational requirements. Working capital is supported through Bibby Financial Services and its invoice discounting facility. The company has no other significant external sources of funding.	The company regularly monitors its liquidity position to ensure sufficient funds are available to support ongoing operations and to respond to changes in business activity or operational requirements.

Credit	The company's financial assets principally comprise cash and trade debtors. Credit risk arises primarily from amounts owed by customers and is reflected in the carrying value of trade debtors, net of allowances for doubtful debts.	The company has implemented credit control procedures, including appropriate credit checks on prospective customers before business is undertaken. Customer balances are monitored regularly, and action is taken to recover overdue debts where necessary.

Page 3

LD ECO LTD

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2025

Interest rate risk

The company has both interest bearing assets and liabilities. Interest bearing assets primarily comprise cash balances, which earn interest at variable rates.

The company's policy is to maintain borrowing arrangements at floating rates where appropriate. Management regularly reviews its financing structure and will consider alternative arrangements should the scale or nature of operations change.

This report was approved by the board on 28 August 2026 and signed on its behalf.

Mr F Cressall

Director

Page 4

LD ECO LTD

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 AUGUST 2025

The directors present their report and the financial statements for the year ended 31 August 2025.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

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

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

Results and dividends

The profit for the year, after taxation, amounted to £2,937,008 (2024 - £4,111,393).

Dividends of £3,300,000 was distributed for the year ended 31 August 2025 (31 August 2024 - £2,650,000)

Directors

The directors who served during the year were:

Mr F Cressall

Mr L Davies

Matters covered in the Strategic Report

Included in the company's strategic report is a review of the business and description of the principal risks and uncertainties facing the company.

Page 5

LD ECO LTD

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2025

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed 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 ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

Further information is disclosed in Note 28 to the financial statements.

Auditor

The auditor, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

Mr F Cressall

Director

Date: 28 August 2026

Page 6

LD ECO LTD

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LD ECO LTD

Opinion

We have audited the financial statements of LD Eco Ltd (the 'Company') for the year ended 31 August 2025, which comprise the Statement of Comprehensive Income, the Analysis of Net Debt, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, 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 31 August 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 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 United Kingdom, including the Financial Reporting Council'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.

Page 7

LD ECO LTD

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LD ECO LTD (CONTINUED)

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.

Opinion 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 Directors' Report 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.

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 Directors' Report.

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

∙adequate accounting records have not been kept, 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 5, 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.

Page 8

LD ECO LTD

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LD ECO LTD (CONTINUED)

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:

- Enquiry of management and those charged with governance around actual, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud.
- Review of legal and professional fees for evidence of legal work undertaken or fines/penalties incurred.
- Enquiry of entity staff in compliance functions and external advisors to identify any instances of non-compliance with laws and regulations.
- Reviewing of financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Performing audit work over the risk of management override, including testing of journal entries and other adjustments for appropriateness.
- Evaluating the business rationale of significant transactions outside the normal course of business.
- An assessment of the methodologies used in order to calculate estimates/provisions at the year end for evidence of bias.
- We considered where applicable alternative estimation approaches including using (where available) actual post year end outcomes in order to provide assurance over the potential for material misstatement.
- Discussions amongst the engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of fraud;
- Discussions with management over any potential or suspected fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.

Other matters

The financial statements of LD Eco Ltd for the year ended 31 August 2024 were unaudited.
Accordingly, the corresponding figures presented in these financial statements are unaudited.

Page 9

LD ECO LTD

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LD ECO LTD (CONTINUED)

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.

James Dobson BSc(Hons) FCA (Senior Statutory Auditor)

for and on behalf of

MHA

Swansea

United Kingdom

Date: 28 August 2026

MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).

Page 10

LD ECO LTD

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 AUGUST 2025

		Unaudited
	2025	2024
Note	£	£


Turnover	5	32,316,686	47,131,882
Cost of sales		(26,495,968)	(38,326,541)
Gross profit		5,820,718	8,805,341
Administrative expenses		(1,953,826)	(3,301,844)
Other operating income	6	3,135	-
Operating profit	7	3,870,027	5,503,497
Interest receivable and similar income	10	80,857	13,964
Interest payable and similar expenses	11	(1,933)	(8,215)
Profit before tax		3,948,951	5,509,246
Tax on profit	12	(1,011,943)	(1,397,853)
Profit for the financial year		2,937,008	4,111,393

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 16 to 33 form part of these financial statements.

Page 11

LD ECO LTD

REGISTERED NUMBER: 08516043

BALANCE SHEET

AS AT 31 AUGUST 2025

		Unaudited
	2025	2024
Note	£	£

Fixed assets
Tangible assets	14		62,458		81,756
			62,458		81,756
Current assets
Stocks	15	127,934		161,459
Debtors: amounts falling due within one year	16	3,227,300		1,915,222
Cash at bank and in hand		3,679,040		5,923,230
		7,034,274		7,999,911
Creditors: amounts falling due within one year	17	(3,778,713)		(4,623,619)
Net current assets			3,255,561		3,376,290
Total assets less current liabilities			3,318,019		3,458,046
Creditors: amounts falling due after more than one year	18		-		(35,428)
Provisions for liabilities
Deferred tax	21	(15,310)		(20,439)
Other provisions	22	(1,675,478)		(1,411,956)
			(1,690,788)		(1,432,395)
Net assets			1,627,231		1,990,223

Capital and reserves
Called up share capital	23	100	100
Profit and loss account	24	1,627,131	1,990,123
		1,627,231	1,990,223

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Mr F Cressall

Director

Date: 28 August 2026

The notes on pages 16 to 33 form part of these financial statements.

Page 12

LD ECO LTD

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 AUGUST 2025

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 September 2023	100	528,730	528,830
Comprehensive income for the year
Profit for the year	-	4,111,393	4,111,393
Dividends paid	-	(2,650,000)	(2,650,000)

At 1 September 2024	100	1,990,123	1,990,223
Comprehensive income for the year
Profit for the year	-	2,937,008	2,937,008
Dividends paid	-	(3,300,000)	(3,300,000)
At 31 August 2025	100	1,627,131	1,627,231

The notes on pages 16 to 33 form part of these financial statements.

Page 13

LD ECO LTD

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2025

				Unaudited
			2025	2024
			£	£

Cash flows from operating activities
Profit before tax	3,948,951	5,509,246
Adjustments for:
Depreciation of tangible assets	43,050	49,978
Interest paid	1,933	8,215
Interest received	(80,857)	(13,964)
Decrease/(increase) in stocks	33,525	(161,459)
(Increase) in debtors	(67,903)	(393,672)
(Decrease)/increase in creditors	(3,336,038)	1,193,849
Increase in provisions	263,522	1,411,956
Corporation tax paid / (received)	1,564,428	178,314
Net cash generated from operating activities	2,370,611	7,782,463

Cash flows from investing activities
Purchase of tangible fixed assets	(23,752)	(76,373)
Interest received	80,857	13,964
Net cash from investing activities	57,105	(62,409)
Cash flows from financing activities
Repayment of loans	(11,087)	(11,609)
Repayment of/new finance leases	(6,495)	(8,119)
Dividends paid	(3,300,000)	(2,650,000)
Interest paid	(1,933)	(8,215)
Amounts introduced by the directors	3,364,169	2,654,792
Drawings paid to directors	(4,716,560)	(2,857,174)
Net cash used in financing activities	(4,671,906)	(2,880,325)
Net (decrease)/increase in cash and cash equivalents	(2,244,190)	4,839,729
Cash and cash equivalents at beginning of year	5,923,230	1,083,501
Cash and cash equivalents at the end of year	3,679,040	5,923,230

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	3,679,040	5,923,230

Page 14

LD ECO LTD

ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 AUGUST 2025


At 1 September 2024	Cash flows	At 31 August 2025
£	£	£

Cash at bank and in hand	5,923,230	(2,244,190)	3,679,040
Debt due after 1 year	(10,990)	10,990	-
Debt due within 1 year	(115,817)	1,349,482	1,233,665
Finance leases	(30,933)	4,123	(26,810)
	5,765,490	(879,595)	4,885,895

The notes on pages 16 to 33 form part of these financial statements.

Page 15

LD ECO LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

1.	General information

LD Eco 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 below:

Registered number - 08516043

Registered office address - Bay View Offices, Bay View Road, Llanelli, Carmarthenshire, SA14 8SN.

The presentation currency of the financial statements is the Pound Sterling (£).

Monetary amounts in these financial statements are rounded to the nearest £.

2.	Statement of Compliance

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

3.Accounting policies

3.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 4).

During the year, management reviewed the payment profile and terms of the Company's invoice discounting facility and concluded that the related liability should be classified within creditors falling due within one year. Accordingly, a balance of £817,152 previously included within creditors falling due after more than one year has been reclassified to creditors falling due within one year in the comparative figures. This reclassification relates solely to the presentation of the liability and has no impact on the Company's reported profit, net assets, total liabilities or shareholders' funds.

The following principal accounting policies have been applied:

3.2

Going concern

In preparing these financial statements, the directors have assessed whether there are any material uncertainties related to events or conditions that cast significant doubt upon the company's ability to continue as a going concern. In making this assessment, the directors take into account all available information about the future which is at least 12 months from the date that the financial statements are authorised for issue.

The directors consider that the company has adequate resources to continue in business for the foreseeable future and that it is appropriate to adopt the going concern basis in preparing the financial statements.

Page 16

LD ECO LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

3.Accounting policies (continued)

3.3

Turnover

Turnover represents amounts receivable from ECO4-funded installation works and related services, excluding discounts, rebates, Value Added Tax and other sales taxes.

Revenue is recognised upon receipt of an advice notice from the relevant energy supplier, being the point at which completed works have been accepted and the company's entitlement to consideration has been established. Revenue is measured at the fair value of the consideration receivable, net of discounts and rebates.

3.4

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

3.5

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 17

LD ECO LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

3.Accounting policies (continued)

3.6

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery	-	25%
Motor vehicles	-	25%
Office equipment	-	25%
Computer equipment	-	25%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

3.7

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

3.8

Hire purchase and leasing commitments

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

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

3.9

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 18

LD ECO LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

3.Accounting policies (continued)

3.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

3.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

3.12

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

Page 19

LD ECO LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

3.Accounting policies (continued)

3.13

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic financial liabilities

Page 20

LD ECO LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

3.Accounting policies (continued)

3.13

Financial instruments (continued)

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

Page 21

LD ECO LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

3.Accounting policies (continued)

3.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

4.	Judgments in applying accounting policies and key sources of estimation uncertainty

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Warranty provision

The company recognises a provision in respect of expected future costs associated with warranty claims, remedial works and other obligations arising from completed ECO4 installations. The provision is based on management's assessment of the likely costs to be incurred in meeting these obligations and is calculated using historical claims experience, known issues identified at the reporting date, anticipated future claim rates and the estimated cost of remedial works.

The estimation of the warranty provision involves significant management judgement due to the nature and timing of potential future claims and the uncertainty surrounding the extent of remedial works that may be required. Changes in assumptions relating to claim frequency, claim severity or the cost of rectification could result in a material adjustment to the carrying value of the provision in future periods.

Page 22

LD ECO LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

Turnover

Eco 4 Income	32,316,686	47,131,882
	32,316,686	47,131,882

Analysis of turnover by country of destination:

						Unaudited
					2025	2024
					£	£

United Kingdom	32,316,686	47,131,882
	32,316,686	47,131,882

Other operating income	3,135	-
	3,135	-

Other operating lease rentals	19,492	16,690
Depreciation	43,050	49,977
(Profit) / Loss on disposal	938	17,745
Auditors' remuneration	22,000	-
Auditors' remuneration - Non audit services	5,000	-

Page 23

LD ECO LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

Wages and salaries	730,783	632,173
Social security costs	69,715	55,122
Cost of defined contribution scheme	133,805	302,920
	934,303	990,215

The average monthly number of employees, including the directors, during the year was as follows:

	2025	Unaudited 2024
	No.	No.

Employees	23	17

Directors' emoluments	112,570	89,711
Company contributions to defined contribution pension schemes	121,007	292,721
	233,577	382,432

During the year retirement benefits were accruing to 2 directors (2024 - 2) in respect of defined contribution pension schemes.

	Other interest receivable	80,857	13,964
		80,857	13,964

Page 24

LD ECO LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

Bank interest payable	(439)	1,683
Finance leases and hire purchase contracts	2,372	6,532
	1,933	8,215

Corporation tax
Current tax on profits for the year	1,017,072	1,387,933
	1,017,072	1,387,933

Total current tax	1,017,072	1,387,933

Deferred tax
Origination and reversal of timing differences	(5,129)	9,920
Total deferred tax	(5,129)	9,920


	Tax on profit	1,011,943	1,397,853

Page 25

LD ECO LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

12.Taxation (continued)

Profit on ordinary activities before tax

3,948,951

5,509,246

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	987,238	1,377,312
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	24,705	17,219
Capital allowances for year in excess of depreciation	-	3,447
Corporation tax not recognised	-	(125)
Total tax charge for the year	1,011,943	1,397,853

Factors that may affect future tax charges

There are no factors that affect future tax charges.

13.	Dividends
		2025	2024
		£	£

	Dividends paid (Ordinary shares of £1 each)	3,300,000	2,650,000
		3,300,000	2,650,000

The dividend amount of £3,300,000 (2024: £2,650,000) was declared and paid during the year, there are no amounts owed at the balance sheet date in respect of these dividends.

Page 26

LD ECO LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

14.	Tangible fixed assets

	Plant and machinery	Motor vehicles	Office equipment	Computer equipment	Total
	£	£	£	£	£
Cost or valuation
At 1 September 2024	7,292	109,956	24,696	20,023	161,967
Additions	-	8,734	10,750	4,268	23,752
At 31 August 2025	7,292	118,690	35,446	24,291	185,719
Depreciation
At 1 September 2024	5,925	51,064	11,980	11,242	80,211
Charge for the year	1,367	28,747	7,918	5,018	43,050
At 31 August 2025	7,292	79,811	19,898	16,260	123,261
Net book value
At 31 August 2025	-	38,879	15,548	8,031	62,458
At 31 August 2024	1,367	58,892	12,716	8,781	81,756

Raw materials and consumables	127,934	161,459
	127,934	161,459

16.

Debtors

						Unaudited
					2025	2024
					£	£


Trade debtors	761,874	1,316,757
Other debtors	2,465,426	598,465
	3,227,300	1,915,222

Page 27

LD ECO LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

Bank loans	10,509	10,606
Trade creditors	535,845	1,054,830
Corporation tax	1,021,709	1,392,570
Other taxation and social security	346,061	460,777
Obligations under finance lease and hire purchase contracts	26,810	6,495
Other creditors	1,817,779	1,674,707
Accruals and deferred income	20,000	23,634
	3,778,713	4,623,619


Invoice finance liability	252,702	817,152
	252,702	817,152

Details of security provided:

The company's obligations to Bibby Financial Services Ltd are secured by a debenture comprising fixed and floating charges over the assets of the company.

Bank loans	-	10,990
Net obligations under finance leases and hire purchase contracts	-	24,438
	-	35,428

Page 28

LD ECO LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

Amounts falling due within one year
Bank loans	10,509	10,606
	10,509	10,606

Amounts falling due 2-5 years
Bank loans	-	10,990
	-	10,990

	10,509	21,596

Within one year	26,810	6,495
Between 1-5 years	-	24,438
	26,810	30,933

Page 29

LD ECO LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

21.	Deferred taxation

	2025	Unaudited 2024
	£	£

At beginning of year	(20,439)	-
Charged to profit or loss	5,129	(20,439)
At end of year	(15,310)	(20,439)

	Accelerated capital allowances	(15,310)	(20,439)
		(15,310)	(20,439)

Page 30

LD ECO LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

22.	Provisions

		Warranty provision
		£

	At 1 September 2024	1,411,956
	Charged to profit or loss	263,522
	At 31 August 2025	1,675,478

The warranty provision represents management's best estimate of future costs expected to be incurred in respect of remedial works, warranty claims and other obligations arising from completed ECO4 installations.

The provision at 31 August 2025 amounts to £1,675,478 (2024: £1,411,956) and has been determined based on management's assessment of the potential future obligations associated with completed installations. In forming this assessment, management has considered known issues identified at the reporting date, expected future claims arising from completed works and the estimated costs of fulfilling those obligations. The provision is expected to be utilised as claims are received and remedial works are undertaken over the applicable warranty periods.

There is inherent uncertainty in estimating both the timing and amount of future claims. Actual costs incurred may differ from those estimated depending on the number of claims received, the nature and extent of any defects identified and the ultimate cost of carrying out remedial works. The provision is reviewed by management at each reporting date and adjusted where necessary to reflect current information and expectations.

Allotted, called up and fully paid

100 (2024 - 100) Ordinary shares of £1.00 each	100	100

There is only one class of shares, all shares rank equally and have full voting rights.

Page 31

LD ECO LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

24.

Reserves

Profit and loss account

The profit and loss account consists of retained profit from prior years.

25.	Transactions with directors

	31 August 2025	31 August 2024
	£	£
Mr F Cressall

Balance owed to / (by) at start of the period	44,455	(338)
Amounts withdrawn by director	(974,189)	(466,494)
Amounts introduced by director	883,592	511,287)

Balance owed to / (by) at end of the period	(46,142)	44,455

Mr L Davies

Balance owed to / (by) at start of the period	63,761	310,937
Amounts withdrawn by director	(3,742,370)	(2,390,681)
Amounts introduced by director	2,480,576	2,143,505

Balance owed to / (by) at end of the period	(1,198,033)	63,761

There were no sales or purchases made to either director during the current or previous year.

26.	Related party transactions

Other related parties

	2025	2024
	£	£
Sales	417	-
Purchases	12,657	103,760
Amounts due from related parties	1,244,175	-
Amounts due to related parties	-	108,216

During the year, a total of key management personnel compensation of £246,883 (2024: £200,847)

Related party balances arising from these transactions are unsecured, interest free and are repayable on demand. Management considers all related party balances to be fully recoverable.

Page 32

LD ECO LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

27.	Pension commitments

The company operates a defined contribution pension scheme for its employees. Contributions are charged to the profit and loss account in the year in which they are payable.

The total contributions payable to the scheme in respect of the year were £13,843 (2024: £11,427).

The total outstanding contributions payable as at the balance sheet date were £2,437 (2024: £2,715).

28.	Post balance sheet events

Subsequent to the year end, the Government's ECO4 scheme concluded in March 2026. As a result of the reduction in activity following the end of the scheme, the company undertook a restructuring of its operations, including a reduction in employee numbers through a redundancy programme.

The directors are continuing to assess future opportunities for the business, including participation in any successor energy efficiency schemes and the development of direct customer-funded installation services. As the conclusion of the ECO4 scheme and the related restructuring occurred after the reporting date, no adjustment has been made to the amounts recognised in these financial statements.

29.	Controlling party

The ultimate controlling party is Mr Lewis Davies.

Page 33