Elmech Ltd

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—6

1. General Information

Elmech Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 08525803 . The registered office is Unit13 30 B Wilds Rents, London, Southwark, SE1 4QG.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Going Concern Disclosure

The company incurred a loss before tax of £6,027,521 (2025: £225,107) and at 30 April 2026 had net liabilities of £4,032,478 (2025: net assets of £1,995,043), net current liabilities of £3,575,879 and cash at bank and in hand of £90,918. At the date of approval, the company had no contracts in progress generating income and the director is actively seeking new contracts and expects further projects. The company has significant borrowings outstanding, and PAYE and CIS liabilities are being settled under an instalment arrangement with HM Revenue & Customs. The company also continues to receive VAT repayments as a repayment trader. No formal funded twelve-month cash-flow plan had been finalised at the date these financial statements were prepared. The director has considered the support available to the company, the prospects of securing new contracts and expected recoveries from ongoing legal proceedings. These conditions indicate a material uncertainty which may cast significant doubt on the company's ability to continue as a going concern. The financial statements have nevertheless been prepared on the going concern basis and do not include the adjustments that would result if the company were unable to continue as a going concern.

2.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

2.4. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Motor Vehicles	20% straight line
Fixtures & Fittings	20% straight line
Computer Equipment	20% straight line

2.5. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

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Elmech Ltd

Notes to the Financial Statements (continued)

For The Year Ended 30 April 2026

2.6. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

2.7. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

2.8. Taxation

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 38 (2025: 35)

4. Tangible Assets

	Motor Vehicles	Fixtures & Fittings	Computer Equipment	Total
	£	£	£	£
Cost
As at 1 May 2025	646,024	11,830	95,868	753,722
Additions	68,609	-	16,350	84,959

As at 30 April 2026	714,633	11,830	112,218	838,681

Depreciation
As at 1 May 2025	332,894	10,798	28,237	371,929
Provided during the period	142,927	1,032	22,444	166,403

As at 30 April 2026	475,821	11,830	50,681	538,332

Net Book Value
As at 30 April 2026	238,812	-	61,537	300,349

As at 1 May 2025	313,130	1,032	67,631	381,793

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Elmech Ltd

Notes to the Financial Statements (continued)

For The Year Ended 30 April 2026

5. Stocks

	2026	2025
	£	£
Stock	9,589	-

6. Debtors

	2026	2025
	£	£
Due within one year
Trade debtors	904,068	500,232
Amounts owed by group undertakings	130,386	130,386
Other debtors	483,068	6,146,949

	1,517,522	6,777,567

7. Creditors: Amounts Falling Due Within One Year

	2026	2025
	£	£
Net obligations under finance lease and hire purchase contracts	132,000	121,772
Trade creditors	3,662,894	3,929,411
Bank loans and overdrafts	836,324	323,612
Other creditors	329,761	22,132
Taxation and social security	232,929	270,085

	5,193,908	4,667,012

8. Creditors: Amounts Falling Due After More Than One Year

	2026	2025
	£	£
Net obligations under finance lease and hire purchase contracts	245,721	277,918
Bank loans	505,653	510,289

	751,374	788,207

9. Obligations Under Finance Leases and Hire Purchase

	2026	2025
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	132,000	121,772
Later than one year and not later than five years	245,721	277,918

	377,721	399,690

	377,721	399,690

10. Share Capital

	2026	2025
	£	£
Allotted, Called up and fully paid	100	100

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Elmech Ltd

Notes to the Financial Statements (continued)

For The Year Ended 30 April 2026

11. Contingent Liabilities

A claim of £95,974 has been made against the company by Crystal Sigma Ltd, which the company is defending. Without-prejudice settlement discussions were in progress at the date of approval and no provision has been recognised. Other disputes involving BEW, Novenco and the company's former accountants are not expected to result in material outflows. The company is the referring party in an adjudication against Fairview; any potential recovery has not been recognised. The Paragon Bank loan is supported by a corporate guarantee from Elmech London Ltd and personal guarantees have been provided by the director in respect of certain other facilities.

12. Post Balance Sheet Events

After the year end, HM Revenue & Customs repaid £167,228 in settlement of the VAT return for the quarter ended 30 April 2026. The company received £250,000 from Elmech London Ltd on 11 May 2026 in part settlement of amounts outstanding at the year end.

On 18 June 2026 the company drew a further loan from Federal Capital under agreement FC80632. The loan is repayable by twelve monthly instalments of £5,829 from July 2026 to June 2027.

Invoices raised after the year end to Berkeley and Fairview included approximately £104,355 of income earned before 30 April 2026. This amount had been recognised as accrued income at the reporting date.

13. Related Party Transactions

Elmech London Ltd, a company of which Mr Przemyslaw Szczypulkowski is also a director and 50% shareholder, provided construction services to the company during the year and purchased materials and services from the company. At 30 April 2026, balances included £2,024,866 payable by the company for services, £114,991 of expenditure recharges payable, and £897,042 receivable from Elmech London Ltd. A payment of £250,000 was received from Elmech London Ltd on 11 May 2026. Elmech London Ltd has also guaranteed the company's Paragon Bank loan.

Companies Management Systems Ltd, a related company, supplied labour and services during the year. Payments to that company totalled approximately £6.41 million and £5,386 was due from it at 30 April 2026.

Property Office Services Ltd, a company under common control, owed the company £125,000 at 30 April 2026. The balance is interest-free and repayable on demand.

During the year the director advanced funds to the company. At 30 April 2026 the company owed the director £280,623. No interest is charged and no repayment terms have been agreed. No dividends were paid during the year.

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		2026		2025
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	4		300,349		381,793

			300,349		381,793
CURRENT ASSETS
Stocks	5	9,589		-
Debtors	6	1,517,522		6,777,567
Cash at bank and in hand		90,918		296,476

		1,618,029		7,074,043
Creditors: Amounts Falling Due Within One Year	7	(5,193,908 )		(4,667,012 )

NET CURRENT ASSETS (LIABILITIES)			(3,575,879 )		2,407,031

TOTAL ASSETS LESS CURRENT LIABILITIES			(3,275,530 )		2,788,824

Creditors: Amounts Falling Due After More Than One Year	8		(751,374 )		(788,207 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(5,574 )		(5,574 )

NET (LIABILITIES)/ASSETS			(4,032,478 )		1,995,043

CAPITAL AND RESERVES
Called up share capital	10		100		100
Profit and Loss Account			(4,032,578 )		1,994,943

SHAREHOLDERS' FUNDS			(4,032,478)		1,995,043