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

Our History

KCE FM was established in the UK in 1993 as a business unit within one of the world's largest design, development and construction companies. We were delighted to receive the opportunity to purchase the company under a management buy-out deal and commenced operations under the business trading name of KCE FM Limited on the 1st of January 2008.

In November 2025, the company was sold to a new holding company. Management has remained in place throughout, and KCE FM continues to operate independently, with the same values, team and personal approach to service that our clients have come to expect. The new structure will allow KCE to receive the funds and expertise to roll out a new software throughout the business to continue to be a market leading FM provider.

It is the aim of KCE FM to continually develop and further establish the professional capabilities of our company and to continue to provide our clients with a uniquely professional yet personal and tailored level of facilities management, mechanical & electrical maintenance and aftercare service. We are extremely proud of our history and of our team, and we have generated a strong database of successful facilities management and M&E maintenance contracts, many of which we have held since the onset of the company, together with numerous ongoing building fabric and M&E refurbishment and capital plant replacement projects.

Our Vision

It is our aim to continue to develop our extremely capable and professional Facilities Management business within KCE FM Limited and to provide our company & shareholders with a valuable and commercially viable asset which can support all facades of the business requirements, whilst serving our hugely valued clients with an extremely high yet personal level of facilities management, ensuring the name of KCE FM Limited remains upheld and unequalled in our service commitment and delivery capabilities.

Our Values

We strive to inspire confidence, fairness and openness, leading performance whilst creating and maintaining operational excellence.

Our Objectives

We remain absolutely focused on the provision of facilities management, maintenance and repair services that surpasses all competitors within our industry. We will continue to develop customer relationships and reinforce their confidence in KCE FM, retaining all of our valued clients and securing the employment of our staff as the business continues to grow from strength to strength.

Our Targets

We will deliver all of our contracts and projects on time, within budget, safely, with a strong quality, health & safety and environmental approach, and to the complete satisfaction of our clients. We will monitor and continue to improve customer satisfaction and working relationships to ensure strong levels of contract retention. We will improve on our already high tender conversion ratio which comes as a direct result of high customer satisfaction levels, and we will treat our supply chain very fairly and in the true spirit of a partnership to ensure they want to work with us and support our business needs and demands whenever called upon.

Inflation is the number one risk currently. It creates uncertainty and makes long-term planning difficult. The labour market, particularly in London, has been difficult over the recent years. We have seen a shortage of skilled engineers and the price has been driven up. General inflationary pressures are making this situation more difficult. We are preparing for the same with a new intake of engineering and administration apprentices which, given time, will improve stability. Rising energy prices are a major concern to our clients. In recent years we have been successful in implementing energy saving schemes for some of our most prestigious sites. We anticipate clients will have an increased appetite to spend on projects that will show good returns.

To maintain business momentum and stability for KCE FM we need to know and incorporate many important things into our KPIs such as but not limited to the following:

a - Is the quality of our client service delivery exactly how and where it needs to be?

b - Are we performing well financially and operating at peak efficiency?

c - Where are our opportunities and challenges and how can we address the same?

d - Are our customers delighted with the service KCE FM provide?

KCE FM articulate the most important priorities of the board, reflecting the board's strategic goals and concerns about risks facing the organisation.

The metrics that KCE FM use to measure and track our KPIs are tailored to reflect our business goals and objectives. Firstly, we ask ourselves what it is that we want to achieve. Next, we consider how we can measure the progress made towards our goals, and then we monitor the KPI number that tells us whether we are getting closer to our goal or indeed if an alternative approach is required, and we constantly review these metrics to ensure our targets are achieved and maintained.

KCE FM is an autonomous 1st class building services engineering company providing installation, maintenance and repair services to our clients 24 hours a day, 7 days a week, 365 days a year.

At KCE FM, we offer our clients a wide range of planned preventative maintenance, part comprehensive and fully comprehensive contracts, covering all aspects of mechanical, electrical, public health and life safe system maintenance and repair, and by tailoring these contracts to suit our client's needs we simplify and personalise the entire process.

KCE FM continue to work closely with each of our clients to create an excellent and amicable working relationship together with a bespoke and uniquely tailored service for each building we maintain. With our asset management system, and our team of highly experienced staff and engineers, KCE FM continue to put into place a detailed schedule of planned preventative maintenance (PPM's) to eliminate any potential issues before they even occur.

We currently manage over 270 sites. These sites range in size from multi-manned sites to smaller properties maintained by our mobile engineering team. We obtain around 50% of our income from planned preventative maintenance contracts with the rest of our income coming from additional works associated with the sites we maintain. These additional services range from emergency call outs to large capital plant replacement projects. We have a fantastic team of skilled engineers in-house and we call upon a small number of approved, tried and trusted sub-contractors whenever required. Our strategy for the next two years is to focus on the retention of all of our existing contracts whilst growing the business by securing additional manned sites which produce stability and strength to the business.

2025 was another strong year for growth. We increased our turnover from £22.2m to £24.8m (11.7% increase), driven largely by new inbound business won on the strength of our reputation and the quality of service provided to our existing clients. The business recorded a loss before tax of £3.9m for the year, reflecting significant one-off costs associated with the sale of the company to its new holding company in November 2025. Excluding these transaction-related costs, the underlying business remained profitable, consistent with the continued growth in turnover.

Since the start of 2026 performance has maintained an upward trend, with significant contract wins secured at the end of 2025 and continuing through 2026. We are targeting a turnover of £28.0m for the year, and our strategy for the road ahead is to continue with our focus of improved operational control whilst retaining our focus on absolute client satisfaction and improved performance delivery.

During 2025 we have continued to pick up many new prestigious maintenance contracts, and our strategy remains that we will spread our client data base, thereby reducing the impact risk to the business, and we continue to open new doors. We do not have a sales department, and all our new work is the result of client referrals.

We continue to place great emphasis on developing the capabilities of the team. We achieved gold status in the 5% club (at least 5% of all employees actively involved in training). We are also very proud that one of our apprentice engineers won a BESA national award and another one made the top three.

KCE FM have a strong management and staff team with a great team spirit across the business, and I am extremely proud of the way we are all pulling together to keep the business rock steady.

On behalf of the board

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

The principal activity of the company continued to be that of the provision of facilities management services.

The results for the year are set out on page 9.

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

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

In accordance with the company's articles, a resolution proposing that Moore NHC Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information 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.

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; and

• 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.

We have audited the financial statements of KCE FM Limited (the 'company') for the year ended 31 December 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its loss 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' 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.

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.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach was as follows:

• We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.

• We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.

• We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

• We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.

• We reviewed minutes of meetings of management and those charged with governance to identify any indicators of non-compliance or fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

The profit and loss account has been prepared on the basis that all operations are continuing operations.

KCE FM Limited is a private company limited by shares incorporated in England and Wales. The registered office is 80 Mount Street, Nottingham, NG1 6HH.

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

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for the provision of 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.

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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.

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).

Work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of work in progress over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss.

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.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments (including bank loans) are subsequently carried at amortised cost, using the effective interest rate method.

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

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The 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 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 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.

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

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

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. In the directors' opinion, there are no significant judgements or key sources of estimation uncertainty.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024 - 3).

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

The carrying value of land and buildings comprises:

In the year there were some related party transactions sitting within the trade creditors of £12,154.

The following are the major deferred tax liabilities and assets recognised by the company:

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

Contributions totalling £111,484 (2024 - £44,495) were payable to the scheme at the end of the year and are included in creditors.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Included within other debtors is a directors loan account for Callum Yates, at the year-end £37,889 (2024: £1,690,436) was owed to the company. Interest of £nil (2024: £24,110) was charged on the loan account. The loan is unsecured and is repayable on demand.

During the year, the company sold a property to Willow Croft Propco Limited, a company in which Callum Yates is also a director. The property was sold for consideration of £1,344,000 which was received in full by the reporting date.

At the year-end the company was owed £250 (2024: £250) by Daniel Curwood.

During the year the company was charged £143,021 (2024: £27,073) by Half Full Solutions Ltd, a company controlled by Kenneth Dunne. At the year-end the company owed £14,148 to Half Full Solutions Ltd, (2024: £3,132).

At the year-end the company owed £248,231 to Eight Group Service Partners Bidco Limited (2024: £Nil), an intermediate parent company.

The company's immediate parent is KCE FM Holdings Limited, a company registered in England and Wales

The ultimate controlling party of the group is Alpine Fund Vehicles, a company registered in the United States of America. Copies of the financial statements can be obtained from One California Street, Suite 2900, San Francisco, CA 94111, USA