wk-2025-12-31-ixbrl

Aspire Defence Services Limited

31 December 2025

Strategic Report

The Directors present the annual report and financial statements of Aspire Defence Services Limited (referred

to as “ADSL” or “the Company”) for the year ended 31 December 2025.

Principal activities

The Company is a special purpose company which has been set up to execute an element of the Ministry of

Defence’s Project Allenby/Connaught (“the Project”). The project is a 35-year concession to maintain the

estates in Aldershot and the Salisbury Plain areas under the Government’s Private Finance Initiative ("PFI").

The Company is providing management services, maintenance services (“Hard FM”), and a range of soft

services comprising security services, other support services, stores services and transport services as well as

discharging their contractual obligations to manage Aspire Defence Services’ (“ADS”) other sub-contractors,

MUJV (provides utilities services) and Sodexo (provides retail and accommodation services – largely cleaning

and catering).

Section 172 Statement

The Directors promote the success of the Company through recognising the requirements of the key

stakeholders and ensuring that the operating business address these. The table below identifies key

stakeholders, outlines how the business engages with them, highlights key considerations and the key metrics

against which the business is measured.

Aspire Defence Services Limited

31 December 2025

Strategic Report (continued)


Key stakeholders	How ADSL engage with them	Stakeholder considerations	Key metrics
End Customers (Defence Infrastructure Organization ("DIO") , Army)	• Contractually defined reporting • Customer surveys • Ongoing engagement at garrisons and centrally	• Making soldiers lives better • Providing a statutorily compliant estate • Project delivery to agreed timescales • Flexibility and responsiveness to customer needs • Respect for the military ethos • Partnering approach to solve problems	• Reporting statistics • Customer surveys
Aspire Defence Ltd ("ADL")	• Contractually defined reporting • Developing the Annual Maintenance Plan("AMP") • Developing the Lifecycle Programme • Delivering Lifecycle work	• Contractual compliance • Lifecycle performance • Providing value for money	• Reporting statistics • Customer surveys • Lifecycle project performance
ADS	• Contractual delivery • Management of ADS other sub-contractors	• Contractual compliance • ADS sub-contractor performance	• Contractual reporting
Suppliers	• Long term relationships • Performance reviews • H&S engagement • Promoting Zero Harm Health & Safety (H&S) initiative	• Payments to agreed timescales • Safe working environment • Effective working relationships • Visibility of future opportunities	• Supplier performance reviews • Supply chain H&S statistics • Supplier audits

Aspire Defence Services Limited

31 December 2025

Strategic Report (continued)

Section 172 Statement (continued)


Key stakeholders	How ADSL engage with them	Stakeholder considerations	Key metrics
KBR (Parent)	• Board meetings • Business reporting • H&S meetings and incident reviews • Shared knowledge • Functional engagement • Implementing practices and policies • Supporting KBR initiatives	• Financial Performance • H&S performance • Operational performance • Statutory compliance • Corporate compliance • Ethical behaviour • Sustainability • Social value • Diversity and inclusion policy	• Performance vs budget • Cash balances • H&S statistics • Contractual KPI performance • Prompt payment KPI • HR statistics • Sustainability reporting
Staff	• Regular communications through various media • Team meetings • Intranet site • Various forums –H&S (Zero Harm Engagement Groups), Wellbeing, “Your Voice”(employee forum) Values • Risk assessments	• Job security • Reward and recognition • Job satisfaction • Career development opportunities • H&S, including wellbeing support • Training and development • Being treated with care and Respect • Business engagement • Positive work environment • Zero harm policy • Whistleblowing ‘hotline’	• Staff turnover • H&S statistics • Training • Internal promotions • Staff surveys such as investors in people
Local Communities	• Supporting local events • Fund raising activities • Supporting military charities	• Support for the Army community • Providing employment opportunities • Opportunities for local suppliers • Support for local schools	• Sponsoring military sports tournaments • Social values reporting

Aspire Defence Services Limited

31 December 2025

Strategic Report (continued)


Environment	• Employing a dedicated environmental team • Promoting habitats • Reducing the carbon footprint • Energy efficiency initiatives	• Zero waste to landfill for office, workshop and residential waste • Implementation of habitat improvement initiatives including specialist habitat for pollinators, reptiles and insects	• 100% of Green Waste recycled • Zero general waste to landfill • New woodlands and community nature trails created • Move to electric fleet for engineering teams

Performance against key metrics is covered within the Strategic Report sections concerning Financial

Performance, Key Performance Indicators, H&S performance.

The Directors exercise their authority through ongoing review of the performance of ADSL, including a bi-

monthly board meeting, which covers ADSL, ADS and Aspire Defence Capital Works (“ADCW”) but reviews

the full scope of activities from financial and H&S performance, operational performance, human resource and

staffing issues, commercial and an update on the status of capital projects. The Transaction Approval Matrix

defines transaction values and specific activities where Board approval is required, providing additional

governance. In addition, there is an ongoing dialogue concerning significant business issues and active

involvement in managing H&S, including the performance of leadership visits through which Board members

visit operational facilities, assess the H&S climate but also engage with the workforce.

Through the board meetings the Directors are apprised of any customer issues or concerns and the contractual

and H&S performance of ADSL’s sub-contractors, also ADS’s other sub-contractors (MUJV and Sodexo) that

ADSL manage on ADS’s behalf. Through customer surveys the Directors have visibility of customer

perceptions of the services being provided. They recognise the obligations ADSL has towards its customer and

encourage ADSL to focus upon satisfying the customer and reflecting appropriate business behaviours.

Business Model

ADS holds the contract placed by ADL for the delivery of services under the project to the Ministry of Defence

and outsources these services through a number of sub-contracts to delivery sub-contractors – ADSL, Sodexo

and MUJV. In addition, ADSL delivers project work within the project framework on behalf of ADS.

All performance obligations flow through ADS to the delivery sub-contractors, with ADSL assuming

responsibility for its own performance but also for managing the performance of MUJV and Sodexo.

Under the terms of the project, ADS have a 35-year contract running until 2041, with the hard facility

management sub-contracts to ADSL (Facilities Maintenance and Management Services) and MUJV having a

similar duration. However, other sub-contracts to ADSL (transport services, stores, other support services and

security) have a 10- year duration (from 2023).

In delivering its range of services ADSL utilises its own staff and for more specialised or irregular activities

engages sub-contractors. Project work is delivered by sub-contractors under ADSL project management.

Aspire Defence Services Limited

31 December 2025

Strategic Report (continued)

Employing approximately 1,000 staff, ADSL is accredited as an Investors in People employer, having secured

Silver status in 2022, with ISO9001 /ISO14001/ISO45001/ISO44001 certifications. ADSL had a 5-year

strategy based on strategic perspectives – safety and wellbeing, customer and community, innovation and

sustainability, future capital expenditure, operational excellence and people perspective - and sets annual

business objectives within that framework. These are cascaded throughout the business and reflected in

individual objectives. The business actively promotes Company values – safety first, delivering together,

achieving excellence and customer focus.

ADSL was formed to deliver Project Allenby Connaught comprising both services and projects activity and

this remains its substantial focus,the remit has been expanded by the addition of the Army Basing Programme

("ABP"). It is fully committed to supporting the military customer through efficient and effective service and

project delivery and is keen to develop and offer innovative solutions. It is also committed to the training and

development of staff and pursuing sustainable business model.

Business Review

The Company commenced operations on 5 January 2004. The principal activities through to July 2006 were

the set- up and establishment of the Company’s organisation and associated facilities, and the development of

the contract management systems and contract mobilisation activity. Service Commencement marked the

Company taking responsibility for the delivery of services under its contract in July 2006.

During 2025,the Company has continued to provide services to the ultimate customer, the Ministry of Defence

(MOD) and to continue to deliver project work to MOD and ADL. The profit and cash flow projections remain

positive and the financial stability of ADSL as a trading entity is secure, underwritten by a contract running for

a further 16 years and the support of KBR.

Key Performance Indicators

The Senior Leadership Team and the Board of Directors regularly monitor the performance of the Company

through a range of key performance indicators.

The Services contract has a broad range of contractual KPI’s covering all aspects of ADSL’s business

performance which are reported to the customer monthly and summarised in the Board report. In respect of the

year ended 31 December 2025, the Company’s performance against these measures was satisfactory, with the

total unavailability financial penalties of £275k relating to 2025 performance and no performance deductions.

Throughout 2025 the ADSL help desk received 477 Compliments, and 71 Complaints of which 7 were verified

Complaints resulting in performance penalty points – however no financial performance penalties were

incurred.

The help desk took 39,131 calls of which 38,283 were answered within 30 seconds, a 99.7% response rate

compared against a contractual requirement of 95%. This contractual performance threshold was exceeded

every month.

Additional reviews are conducted by the Senior Leadership Team and the Board of Directors cover a diverse

range of topics including customer satisfaction surveys, management system compliance, energy management,

labour efficiency and financial compliance (with UK requirements and the provisions of the US Sarbanes

Oxley Act).

Aspire Defence Services Limited

31 December 2025

Strategic Report (continued)

Financial and H&S performance is monitored monthly and discussed in the board meetings as reflected in the

sections below.

Financial Performance

The Company develops detailed annual budgets and forecasts providing a 3-year outlook which are reviewed

regularly. The Company monitors actual financial performance against anticipated performance. In 2025

ADSL reported a profit before tax of £18.4m compared to £22.3m in 2024.

For the year ended 31 December 2025, the Company’s performance (profit before tax of £18,424k) exceeded

the budgetary expectations of ADSL's Shareholders, with the favourable variance largely reflecting the level of

project work performed in the year.

In addition, the cash generation exceeded expectations, with cash being paid as dividends totaling £13.8m in

relation to the 2025 financial performance, compared against £16.7m paid in 2024.

Health and Safety performance

The Company is committed to providing a safe environment for its employees and those impacted by its

activities. The Company monitors actual performance against a number of reporting metrics, most significantly

the Recordable Incident Rate (RIR) reflecting reportable incidents per 200,000 worked hours. Results are

discussed at the monthly Board Meetings which also consider any specific incidents reported.

In addition, metrics are provided concerning leadership visits performed by senior managers (including Board

members), safety conversations held with staff and courage to care reports received (a mechanism through

which staff are encouraged to report any H&S concerns).

In respect of the year ended 31 December 2025, the Company’s performance against target set were the highest

that ADSL have ever achieved with Zero reportable incidents being incurred the RIR of 0.00 against the 2025

target of 0.25. Our safety record has been enhanced during 2025 from further visible Leadership visits which

40 were conducted which exceeded the target of 38 and 417 Safety conversations held exceeding the target of

380, and a Monthly Safety Energy Score averaging 99% exceeded the target of 95%.

Principal risks and uncertainties

The principal financial and operational risks of the business revolve around the business’ ability to maintain the

accommodation at the required standard and to manage the cost of carrying out this maintenance and building

improvement. Through 2025 the mitigation of the operational risks was robustly addressed, without impact to

the business performance. Performance is monitored through business systems and reported to the customer

(this being a contractual requirement) with further management information being reviewed by local

management, the Senior Leadership Team and the Board.

Whilst contractually ADSL faces both operational and financial risk, it has financial protection from inflation

due to the indexation provisions within the services sub-contracts it delivers. In this context the net impact to

ADSL of these factors has been limited.

As the defect period attached to the Project Allenby/Connaught construction activities undertaken by ADCW

came to an end, ADL had commenced a review process (Project Silk) to seek to establish the existence of any

defects. Whilst by definition any defects are an issue for ADCW to address, the output of Project Silk requires

ADSL to remediate any issues where the root cause was related to maintenance.

Project Silk has progressed throughout 2025 and issues identified requiring remediation, as the activity will

extend to further buildings as their defect period approaches expiry the Directors have considered the available

evidence and consider that no contingent liability still exists in respect of the Project.

Aspire Defence Services Limited

31 December 2025

Strategic Report (continued)

Overall government funding constraints are likely to continue to limit MOD funding for discretionary project

work awarded through the Contract Change mechanism..However, the scope and scale of the Lifecycle

programme delivered to ADL affords ADSL protection against the direct impact of any such reductions in

MOD funding reducing project income.

The operation of a defined benefit pension scheme introduces risk due to the potential impact of changes in

economic conditions which can impact assumptions reflected in the actual valuation and charge to the Profit

and Loss Account. These accounts report gross assets of £15.4m and liabilities of approximately £13.3m, so

significant adverse volatility could have a material impact on ADSL’s financial results. The triennial valuation

of the scheme as at April 2022 had identified a requirement for a recovery plan of minimal additional funding,

indicating that the funding levels are sufficient.

Going Concern

The Directors have prepared the statutory financial statements on a going concern basis which they consider

appropriate for the following reasons.

At the balance sheet date, the Company was in a net asset position of £7.4m and net current asset position of

£2.5m, (including cash at bank of £6.6m) and is the holder of a long-term facilities management contract until

2041 as part of a PFI (the ultimate customer being the MOD). Contractual arrangements entitle ADSL to make

a contractual margin on sub-contracted activities, and the impact of the Performance and Unavailability

provisions of the contract has been low. In addition, Project work is largely secured and profitable.

As noted under the business model section of this report, the soft services elements ( transport services, stores,

other support services and security) of the contract are subject to market testing and benchmarking on a

periodic basis. The last review concluded in July 2023, with the reappointment of the existing service providers

being confirmed and agreement reached to price changes to be implemented from 1^st July 2023 and to last 10

years.

Consequently, the Directors are confident that the Company will have sufficient funds to continue to meet its

liabilities as they fall due for at least 12 months from the date of approval of the financial statements and

therefore have prepared the financial statements on a going concern basis.

ADSL have no risk exposure to financial instruments.

By order of the board


L Pratley	Aspire Business Centre
	Ordnance Road
	Tidworth
	SP9 7QD

	22nd May 2026

Aspire Defence Services Limited

31 December 2025

Directors’ Report

Directors and Directors’ interests

The Directors who held office during the year ended 31 December 2025 and subsequently were as follows:


L Pratley	Appointed on	21 January 2025
B Donohoe	Resigned on	21 January 2025
M Carr
J Hagen

Company Secretary

S Galindo

Employees

There were 1,072 employees at 31 December 2025 (2024: 1,055).

The Directors have ensured that employees have been provided with appropriate information about the

business, frameworks have operated effectively to ensure employees are made aware of financial and economic

factors affecting the performance of the Company.

Equal opportunities

The Company’s policy with regards to disabled people is to provide equal employment opportunity by giving

full and fair consideration to their applications for employment and to provide continuing employment,

wherever possible, of employees who become disabled, including opportunities for their training, career

development and promotion.

Suppliers, customers and other business relationships

ADSL has an extensive supply chain reflecting the diversity of its serviced and project obligations. The

relationship with Sodexo and MUJV, which operates due to ADSL managing the performance of those

suppliers on behalf of ADS, is very effective, reflecting the integrated nature of the service provision. This is

evidenced by working together on H&S initiatives and in engagement with the customer concerning service

delivery and any contract changes under engagement. There are also strong relationships with strategic

suppliers whether delivering defined services or with regular projects sub-contractors.

The relationship with our ultimate customer is very strong extending beyond the contractual obligations such

that we work with the customer to help provide solutions to their problems. Internal surveys that we carry out

amongst our staff highlight the genuine pride in working to support the soldiers and the understanding of the

military requirements exhibited by our staff and sub-contractors is a key source of strength.

In addition, ADSL work closely with ADL, who place the contract on ADS and KBR whose expertise further

enhances ADSL's capability and the innovation we continue to provide.

ADSL’s contract places an obligation to undertake customer surveys which evidence the positive relationships

we have developed and reputation we have secured whilst also identifying any areas where our performance is

causing concerns. Clearly these sit alongside the contractual KPIs which demonstrate our performance.

Aspire Defence Services Limited

31 December 2025

Directors’ Report (continued)

Energy and Carbon Reporting Disclosure

ADSL are committed to minimising any adverse environmental effects resulting from the operations of our

business and engage in environmental audits to demonstrate compliance to our environmental requirements.

We ensure that this policy is communicated and understood by our employees and subcontractors. We work in

partnership with the MoD and our supply chain to promote best practice environmental management.

We ensure that our core environmental principles are implemented through our business processes as part of

the management system. Our management system complies with the requirements of BS EN ISO14001.

Within this policy framework, during 2025 ADSL installed new LED lighting at our offices. Following

successful trials throughout 2023 ADSL will increasingly transition towards an electric vehicle fleet during

2025.

We address environmental aspects of our work at planning and delivery stages in order to minimise the

significant environmental impact of our operations relating to the prevention of pollution, the conservation of

natural resources and the minimisation of waste. We establish meaningful objectives and targets to monitor and

report our environmental performance. ADSL’s Management Systems provides the framework for setting and

reviewing these objectives and targets.

Consumption and emissions data is summarised below:


Energy Consumption	2025	2024
Gas	868,793kWh	801,538kWh
Diesel	1,943,519kWh	2,430,407kWh
Electricity	1,423,410kWh	608,928kWh
Fuel	451,191kWh	605,148kWh
Total energy consumption	4,686,913kWh	4,446,021kWh

Emissions
Combustion of Gas (Scope 1)	158.95tCO2e	146.68tCO2e
Combustion of Diesel from Company fleet (Scope 1)	504.44tCO2e	617.44tCO2e
Purchased Electricity (Scope 2)	157.56tCO2e	126.08tCO2e
Combustion of Fuel from business travel claims (Scope 3)	208.03tCO2e	155.32tCO2e
Total gross emissions for which SECR reporting is required	1,028.98tCO2e	1,045.52tCO2e

In 2025 this represented an intensity ratio of 6.02tCO2e (2024; 5.9 tCO2e) per £1m sales revenue.

Political contributions

The Company made political contributions during the year of £Nil (2024: £Nil).

Financial Instruments

The company is fully funded by normal trading operations, have no credit facilities and face limited business

risk due to operating a long-term government contract underwritten by Parent Company Guarantees.

Aspire Defence Services Limited

31 December 2025

Directors’ Report (continued)

Going Concern

In all the scenarios considered by the Directors, the Company is forecast to have sufficient funds to meet its

liabilities as the fall due. Please also refer to note 1.1 and Strategic Report.

Dividends

All declared dividends for 2025 of £13,800,000 were paid during the year (2024: £16,700,000).

Events after the balance sheet date

In September 2025, KBR announced that it was planning to split into two, separately listed groups, with one

primarily operating in the energy sector, and the other servicing the defence sector. This had no impact on the

trading activity of the company in 2025.

During 2026, the ultimate shareholder of the company is anticipated to change, and be listed separately from

KBR, Inc. KBR, Inc is intending to retain a minority stake in the separated group. KBR management continues

to evaluate the steps required to effect the split of the businesses and to the extent that these have been

determined at the point at which the 2025 accounts are finalised, these are set out in the notes to the accounts

under "Events After the Balance Sheet Date".

By order of the board.


L Pratley	Aspire Business Centre
	Ordnance Road
	Tidworth
	SP9 7QD

	22nd May 2026

Aspire Defence Services Limited

31 December 2025

STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE STRATEGIC

REPORT, THE DIRECTORS’ REPORT AND THE FINANCIAL STATEMENTS

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 they

have elected to prepare the financial statements in accordance with UK accounting standards and applicable

law (UK Generally Accepted Accounting Practice), including FRS I 02 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 and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether the financial statements have been prepared in accordance with applicable accounting

standards,identify those standards, and note the effect and the reasons for any material departure from

those standards; 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 group and company’s transactions and disclose with reasonable accuracy at any time the financial position

of the group and company's and enable them to ensure that the financial statements comply with the Companies

Act 2006. The directors are also responsible for safeguarding the assets of the group and company and hence

for taking reasonable steps for prevention and detection of fraud and other irregularities.

Disclosure of Information to the auditors

The directors at the time when this Directors' report is approved have confirmed that

• So far as they are aware, there is no relevant audit information of which the group's auditor is

unaware; and

• They have taken all the steps that out to have been taken as directors in order to be aware of any

relevant audit information and to establish that the group's auditors are aware of that information.

Auditor

The auditors, Grant Thornton, continue in office in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 22nd May 2026 and signed on its behalf.


L Pratley	Aspire Business Centre
	Ordnance Road
	Tidworth
	SP9 7QD

	22nd May 2026

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

ASPIRE DEFENCE SERVICES LIMITED

Opinion

We have audited the financial statements of Aspire Defence Services Limited (“the company”), which

comprise the statement of Profit and Loss Account and Other Comprehensive Income, Balance Sheet,

Statement of Changes in Equity and related notes to the financial statements, including a summary of

significant accounting policies, for the year ended 31 December 2025.

The financial reporting framework that has been applied in the preparation of the financial statements is

applicable law and FRS 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 in accordance with United Kingdom Generally Accepted Accounting

Practice of the assets, liabilities and financial position of the company as at 31 December 2025 and of

its financial performance for the year then ended; and

• have been properly 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 ‘Responsibilities of the

auditor 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 FRC’s Ethical Standard and the ethical pronouncements established by Chartered

Accountants Ireland, applied as determined to be appropriate in the circumstances for the entity. 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 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 the date 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.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

ASPIRE DEFENCE SERVICES LIMITED ( continued)

Other information

Other information comprises information included in the annual report, other than the financial statements and

our auditor’s report thereon, including the Directors’ Report and the Strategic Report. The directors are

responsible for the other information. Our opinion on the financial statements does not cover the other

information and, except to the extent otherwise explicitly stated in our report, we do not express any form of

assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and,

in doing so, consider whether the other information is materially inconsistent with the financial statements or

our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify such

material inconsistencies in the financial statements, we are required to determine whether there is a material

misstatement in the financial statements or a material misstatement of the other information. If, based on the

work we have performed, we conclude that there is a material misstatement of this other information, we are

required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the Strategic Report and the 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 any material misstatements in the Strategic Report and the Directors’ Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to

report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been

received from branches not visited by us; or

• the financial statements and the part of the Directors’ remuneration report to be audited 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.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

ASPIRE DEFENCE SERVICES LIMITED ( continued)

Responsibilities of management and those charged with governance for the financial statements

As explained more fully in the Directors' responsibilities statement, Management is responsible for the

preparation of the financial statements, which give a true and fair view in accordance with United Kingdom

Generally Accepted Accounting Practice, including FRS 102, and for such internal control as the directors

determine necessary to enable the preparation of financial statements that are free from material misstatement,

whether due to fraud or error.

In preparing the financial statements, management is 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 management either intends to liquidate the company or to cease operations,

or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the company’s financial reporting process.

Responsibilities of the auditor for the audit of the financial statements

The objectives of an auditor 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 their 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.

A further description of an auditor’s 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including

fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design

procedures in line with our responsibilities, to detect material misstatements in respect of irregularities,

including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material

misstatement in the financial statements may not be detected, even though the audit is properly planned and

performed in accordance with the ISAs (UK). The extent to which our procedures are capable of detecting

irregularities, including fraud is detailed below:

Based on our understanding of the company and industry, we identified that the principal risks of non-

compliance with laws and regulations related to compliance with Data Privacy law, Employment Law,

Environmental Regulations, and Health & Safety, and we considered the extent to which non-compliance

might have a material effect on the financial statements. We also considered those laws and regulations that

have a direct impact on the preparation of the financial statements such as local tax legislation. The Audit

engagement partner considered the experience and expertise of the engagement team including ITGC

specialists, pension valuation experts to ensure that the team had appropriate competence and capabilities to

identify or recognise non compliance with the laws and regulation.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

ASPIRE DEFENCE SERVICES LIMITED ( continued)

Responsibilities of the auditor for the audit of the financial statements (continued)

Explanation as to what extent the audit was considered capable of detecting irregularities, including

fraud (continued)

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial

statements (including the management risk of override of controls), and determined that the principal risks

were related to posting inappropriate journal entries to manipulate financial performance and management bias

through judgements and assumptions in significant accounting estimates, in particular in relation to significant

one-off or unusual transactions. We apply professional scepticism through the audit to consider potential

deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the

financial statements.

In response to these principal risks, our audit procedures included but were not limited to:

• enquiries with the board on the policies and procedures in place regarding compliance with laws and

regulations, including consideration of known or suspected instances of non-compliance and whether

they have knowledge of any actual, suspected or alleged fraud;

• inspection of the Company’s regulatory and legal correspondence and review of minutes of board

meetings during the year to corroborate enquiries made;

• gaining an understanding of the internal controls established to mitigate risk related to fraud;

• discussion amongst the engagement team in relation to the identified laws and regulations and

regarding the risk of fraud, and remaining alert to any indications of non-compliance or opportunities

for fraudulent manipulation of financial statements throughout the audit;

• identifying and testing journal entries to address the risk of inappropriate journals and management

override of controls;

• designing audit procedures to incorporate unpredictability around the nature, timing or extent of our

testing;

• challenging assumptions and judgements made by management in their significant accounting

estimates; and

• review of the financial statement disclosures to underlying supporting documentation and inquiries of

management.

The primary responsibility for the prevention and detection of irregularities including fraud rests with those

charged with governance and management. As with any audit, there remains a risk of non-detection or

irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of

internal controls.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

ASPIRE DEFENCE SERVICES LIMITED ( continued)

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the company’s members, as a body, in accordance with terms of our engagement

letter. 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.

Blaithin O’Neill (Senior Statutory Auditor)

For and on behalf of

Grant Thornton

Chartered Accountants & Statutory Auditors

Dublin

22nd May 2026

Aspire Defence Services Limited

31 December 2025

Profit and Loss Account and Other Comprehensive Income

for the year ended 31 December 2025


	Note	2025	2024
		£000	£000

Turnover	2	170,677	175,315
Cost of sales		(152,618)	(153,389)

Operating profit	3	18,059	21,926

Net interest receivable and similar income/(expense)	6	365	376

Profit on ordinary activities before taxation		18,424	22,302

Tax on profit on ordinary activities	7	(4,628)	(5,604)

Profit for the financial year		13,796	16,698

Other comprehensive income

Remeasurement (loss)/ gain of the net defined benefit pension scheme	14	815	370
Deferred tax on other comprehensive income /(loss)	7	(204)	(93)

Other comprehensive (loss)/ income for the year, net of income tax		611	277

Total comprehensive income for the year		14,407	16,975

All profit arose from continuing operations.

The accompanying notes form an integral part of these financial statements.

Aspire Defence Services Limited

31 December 2025

Balance Sheet

at 31 December 2025


	Note	2025	2025	2024	2024
		£000	£000	£000	£000
Fixed assets
Intangible assets	8	1,089		1,429
Tangible assets	9	2,120		2,325
			3,209		3,754

Pension Asset	14		2,112		972

Current assets
Debtors	10	22,892		18,869
Cash at bank	11	6,629		5,575
		29,521		24,444

Creditors: amounts falling due within one year	12	(27,029)		(22,106)

Net current assets			2,492		2,338
Total assets less current liabilities			7,813		7,064

Creditors: amounts falling due after one year

Deferred tax liability	13	(418)		(276)

Net assets			7,395		6,788

Equity
Called up share capital	15		0		0
Profit and loss account	15		7,395		6,788
Total Equity			7,395		6,788

The accompanying notes form an integral part of these financial statements.These financial statements were

approved by the board of Directors on 22nd May 2026 and were signed on its behalf by:

L Pratley

Company registered number: 04556471

Aspire Defence Services Limited

31 December 2025

Statement of Changes in Equity


	Called up share capital	Profit and loss account	Total Equity
	£000	£000	£000

Balance at 1 January 2024	—	6,513	6,513

Profit for the year	—	16,698	16,698

Other comprehensive loss	—	277	277

Total comprehensive income for the year	—	23,488	23,488

Dividends paid	—	(16,700)	(16,700)

Balance at 31 December 2024	—	6,788	6,788


	Called up share capital	Profit and loss account	Total Equity
	£000	£000	£000

Balance at 1 January 2025	—	6,788	6,788

Profit for the year	—	13,796	13,796

Other comprehensive income	—	611	611

Total comprehensive income for the year	—	21,195	21,195

Dividends paid	—	(13,800)	(13,800)

Balance at 31 December 2025	—	7,395	7,395

The accompanying notes form an integral part of these financial statements.

Aspire Defence Services Limited

31 December 2025

Notes

(forming part of the financial statements)

1Accounting policies

Aspire Defence Services Limited (the “Company”) is a company limited by shares and incorporated and

domiciled in the UK. The address of the office is Ordnance Road, Tidworth, SP9 7QD, United Kingdom.

These financial statements were prepared in accordance with Financial Reporting Standard 102 The Financial

Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102”). The presentation currency of

these financial statements is sterling. All amounts in the financial statements have been rounded to the nearest

£1,000.

The Company’s ultimate parent undertaking, KBR, Inc. includes the Company in its consolidated financial

statements. The consolidated financial statements of KBR, Inc. are prepared in accordance with Generally

Accepted Accounting Principles (US) and are available to the public and may be obtained from 601 Jefferson

Street, Houston, TX 77002. In these financial statements, the Company is considered to be a qualifying entity

(for the purposes of this FRS) and has applied the exemptions available under FRS 102 in respect of the

following disclosures:

• Key Management Personnel compensation

• the requirements of Section 7 Statement of Cash Flows;

• the requirements of Section 3 Financial Statement Presentation paragraph 3.17 (d);

• the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47,

11.48(a) (iii), 11.48(a)(iv), 11.48 (b), 11.48 (c); and

• the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29 (a),

12.29 (b), and 12.29A.

The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods

presented in these financial statements.

These accounts have been prepared under the historic cost convention.

1.1Going concern

The Directors have prepared the financial statements on a going concern basis which they consider appropriate

for the following reasons.

At the balance sheet date, the Company was in a net asset position of £7.3m, a net current asset position of

£2.4m (including cash at bank of £6.6 m) and is the holder of a long-term facilities management contract as

part of a private finance initiative (the ultimate customer being the UK Ministry of Defence). ADSL holds no

external debt and does not face any restrictions due to covenant arrangements.

The Directors have prepared cash flow forecasts for a period of at least 12 months from the date of approval of

these financial statements (and financial analysis to the end of 2026) which indicate that, taking account of

reasonably possible downsides, the Company will have sufficient funds to meet its liabilities as they fall due

for that period.

In all scenarios considered by the Directors, the Company is forecast to have sufficient funds to meet its

liabilities as they fall due.

Consequently, the Directors are confident that the Company will have sufficient funds to continue to meet its

liabilities as they fall due for at least 12 months from the date of approval of the financial statements and

therefore have prepared the financial statements on a going concern basis.

Aspire Defence Services Limited

31 December 2025

Notes (continued)

1.2Basic financial instruments

Trade and other debtors/creditors

Trade and other debtors/creditors are recognised initially at transaction price less attributable transaction costs.

Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less

any impairment losses. If the arrangement constitutes a financing transaction, for example if payment is

deferred beyond normal business terms, then it is measured at the present value of future payments discounted

at a market rate of instrument for a similar debt instrument.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits.

1.3Tangible assets

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Where parts of an item of tangible assets have different useful lives, they are accounted for as separate items of

tangible assets, for example land is treated separately from buildings.

Leases in which the Company assumes substantially all the risks and rewards of ownership of the leased asset

are classified as finance leases. All other leases are classified as operating leases.

Depreciation is charged to the profit and loss account on a straight-line basis over the estimated useful lives of

each part of an item of tangible assets. Leased assets are depreciated over the shorter of the lease term and their

useful lives. Land is not depreciated. The estimated useful lives are as follows:


Freehold land and buildings	-	35 years
IT equipment	-	3 years
Tools and equipment	-	10 years

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant

change since last annual reporting date in the pattern by which the Company expects to consume an asset’s

future economic benefits.

1.4Intangible assets

Amortisation

Amortisation is charged to the profit or loss on a straight-line basis over the estimated useful lives of intangible

assets. Intangible assets are amortised from the date they are available for use. The estimated useful lives are

as follows:


Software	-	3 to 10 years

Aspire Defence Services Limited

31 December 2025

Notes (continued)

Software and software under development includes the cost of development of both an invoice approval system

and an ERP system, which the Directors believe have different useful lives. Software and development costs

are amortised from the date they are available for use.

Intangible assets are tested for impairment in accordance with Section 27 Impairment of assets when there is an

indication that an intangible asset may be impaired.

1.5Impairment of financial and non-financial assets

Financial assets (including trade and other debtors)

A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine

whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence

indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a

negative effect on the estimated future cash flows of that asset that can be estimated reliably.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference

between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s

original effective interest rate. For financial instruments measured at cost less impairment an impairment is

calculated as the difference between its carrying amount and the best estimate of the amount that the Company

would receive for the asset if it were to be sold at the reporting date. Interest on the impaired asset continues to

be recognised through the unwinding of the discount. Impairment losses are recognised in profit or loss. When

a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is

reversed through profit or loss.

Non-financial assets

The carrying amounts of the Company’s non-financial assets, other than stocks, are reviewed at each reporting

date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s

recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of

its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are

discounted to their present value using a pre-tax discount rate that reflects current market assessments of the

time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that

cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows

from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the

“cash-generating unit”).

An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated

recoverable amount. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect

of CGUs are allocated to reduce the carrying amounts of the assets in the unit (group of units) on a pro rata

basis.

An impairment loss is reversed if and only if the reasons for the impairment have ceased to apply.

Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the

loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset’s

carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or

amortisation, if no impairment loss had been recognised.

Aspire Defence Services Limited

31 December 2025

Notes (continued)

1.6Employee benefits

Defined contribution plans and other long term employee benefits

A defined contribution plan is a post-employment benefit plan under which the Company pays fixed

contributions into a separate entity and will have no legal or constructive obligation to pay further amounts.

Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit

and loss account in the periods during which services are rendered by employees.

Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The

Company’s net obligation in respect of defined benefit plans is by estimating the amount of future benefit that

employees have earned in return for their service in the current and prior periods; that benefit is discounted to

determine its present value. The fair value of any plan assets is deducted. The Company determines the net

interest expense / (income) on the net defined benefit liability / (asset) for the period by applying the discount

rate as determined at the beginning of the annual period to the net defined benefit liability / (asset) taking

account of changes arising as a result of contributions and benefit payments.

The discount rate is the yield at the balance sheet date on AA credit rated bonds denominated in the currency

of, and having maturity dates approximating to the terms of the Company’s obligations. A valuation is

performed annually by a qualified actuary using the projected unit credit method.

The Company recognises net defined benefit plan assets to the extent that it is able to recover the surplus either

through reduced contributions in the future or through refunds from the plan.

Changes in the net defined benefit liability arising from employee service rendered during the period, net

interest on net defined benefit liability, and the cost of plan introductions, benefit changes, curtailments and

settlements during the period are recognised in profit or loss.

Re-measurement of the net defined benefit asset is recognised in other comprehensive income in the period in

which it occurs.

1.7Turnover

Turnover represents the value of work performed for customers (net of value added tax and other sales taxes).

Turnover in respect of services is recognised as the Company fulfils its contractual obligations in respect of

those services and in line with the fair value of the consideration receivable in respect of those services.

For Services, Turnover is recognised based on amounts invoiced to the Customer in accordance with the

contractual terms and conditions, adjusted to reflect an assessment of deferred income where work has yet to

be performed.

For Projects, Invoices are raised when the risks and rewards have transferred to the Customer, reflecting

project or milestone completion, with an adjustment to reflect part completed projects to align turnover

recognition with the percentage completion calculated using input method.

Aspire Defence Services Limited

31 December 2025

Notes (continued)

ADSL has an entitlement to Lifecycle Gainshare revenue in accordance with the payment terms of the Services

Contract, which outlines the basis of calculation and payment conditions. Revenue is recognised when it is

considered reasonably certain that right over payment is established. No Lifecycle Gainshare revenue is

reflected in the 2025 accounts.

1.8Expenses

Operating lease

Payments (excluding costs for services and insurance) made under operating leases are recognised in the profit

and loss account on a straight-line basis over the term of the lease unless the payments to the lessor are

structured to increase in line with expected general inflation in which case the payments related to the

structured increases are recognised as incurred. Lease incentives received are recognised in profit and loss over

the term of the lease as an integral part of the total lease expense.

Interest receivable and Interest payable

Interest payable and similar expenses include interest payable. Other interest receivable and similar income

include interest receivable on funds invested. The net pension scheme interest is presented either as interest

receivable or interest payable.

Interest income and interest payable is recognised in profit or loss as it accrues, using the effective interest

method.

1.9Taxation

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss

account except to the extent that it relates to items recognised directly in equity or other comprehensive

income, in which case it is recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates

enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of

previous years.

Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax

assessments in periods different from those in which they are recognised in the financial statements. The

following timing differences are not provided for: differences between accumulated depreciation and tax

allowances for the cost of a fixed asset if and when all conditions for retaining the tax allowances have been

met. Deferred tax is not recognised on permanent differences arising because certain types of income or

expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or

smaller than the corresponding income or expense.

Any taxable losses made by Group companies are surrendered to other Group companies as Group Relief for

payment. All Group Relief surrenders and claims are managed by Kellogg Brown & Root Limited as the

representative entity of the Group for corporation tax. Companies claiming and surrendering Group Relief will

therefore recognize a payable or receivable balance from Kellogg Brown & Root Limited

Aspire Defence Services Limited

31 December 2025

Notes (continued)

Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using

tax rates enacted or substantively enacted at the balance sheet date.

2Turnover


	2025	2024
	£000	£000

Services	100,532	95,934
Projects	70,145	79,381

Total turnover	170,677	175,315

All activities are undertaken in the UK.

3Expenses and auditor’s remuneration


	2025	2024
	£000	£000

Profit on ordinary activities before taxation is stated after charging

Depreciation and other amounts written off tangible fixed assets (note 8,9)	478	451
Depreciation and other amounts written off intangible fixed assets (note 8,9)	463	468
Amounts payable under operating leases (note 16)	2,167	1,768

Auditor’s remuneration:
Amounts receivable by the auditors and their associates in respect of:
Audit of these financial statements	156	180

Aspire Defence Services Limited

31 December 2025

Notes (continued)

4Staff numbers and costs

The average number of persons employed by the Company (including Directors) during the year, analysed by

category, was as follows:


	Number of employees
	2025	2024

Direct labour and operatives	673	665
Management and administrative	399	390

Total average number of staff	1,072	1,055

The aggregate payroll costs of these persons were as follows:


	2025	2024
	£000	£000

Wages and salaries	42,864	40,395
Social security costs	4,878	3,932
Other pension costs	2,920	2,531
Termination benefits	175	24

	50,837	46,882

5Directors’ remuneration

Mark Carr directly receives remuneration from ADSL. The remaining Director do not receive any direct

remuneration with respect to services provided to the Company. These Directors were remunerated by KBR

with ADSL being charged £10,000 per Director per year for the services they provide.


	2025	2024
	£000	£000

Kellogg Brown & Root Limited	20	28

Total Remuneration	20	28

Aspire Defence Services Limited

31 December 2025

Notes (continued)

5Directors’ remuneration (Cont.)


	2025	2024
	£000	£000

Director emoluments	225	176
Amounts payable under incentive scheme	142	132
Company contributions to defined contribution pension scheme	19	15
	386	323

6Net interest receivable and similar income


	2025	2024
	£000	£000


Related Party Interest Received	2	3
Net pension scheme interest	73	28
Interest Received	290	345
Total net interest (paid) / receivable and similar income	365	376

Aspire Defence Services Limited

31 December 2025

Notes (continued)

7Taxation

Total tax expense recognised in the profit and loss account, other comprehensive income and equity.


	2025		2024
	£000	£000	£000	£000
Current tax
Current tax on income for the year	4,690		5,571
Adjustments in respect of prior years	—		1

Total current tax		4,690		5,572

Deferred tax
Accelerated Capital Allowances	(143)		(80)
Pension scheme timing differences	285		205

Total deferred tax		142		125
Total taxation charge		4,832		5,697


		2025			2024
	Current tax	Deferred tax	Total tax	Current tax	Deferred tax	Total tax
	£000	£000	£000	£000	£000	£000

Recognised in profit and loss	4,690	(62)	4,628	5,572	32	5,604
Recognised in other comprehensive income	—	204	204	—	93	93

Total taxation charge/(credit)	4,690	142	4,832	5,572	125	5,697

Aspire Defence Services Limited

31 December 2025

7Taxation (continued)

Reconciliation of effective tax rate:


	2025	2024
	£000	£000

Profit for the financial year	13,796	16,698
Total tax expense	(4,628)	(5,604)

Profit excluding taxation	18,424	22,302

Tax using the UK corporation tax rate	4,606	5,576
Non-deductible expenses	28	28
Adjustments in respect of prior years	(6)	—
Difference between current and deferred tax rate	—	—
Deferred tax prior year adjustment	—	—

Total tax expense included in profit or loss	4,628	5,604

For the financial year ended 31 December 2024 and 2025, the current and deferred tax rate was 25%

Deferred taxes at the balance sheet date, have been measured using these enacted tax rates and reflected in

these financial statements.

8Intangible assets


	Software	Total
	£000	£000
Cost
Balance at 1 January 2025	4,868	4,868
Additions	123	123

Balance at 31 December 2025	4,991	4,991

Amortisation
Balance at 1 January 2025	3,439	3,439
Amortisation for the year	463	463

Balance at 31 December 2025	3,902	3,902

Net book value
At 1 January 2025	1,429	1,429

At 31 December 2025	1,089	1,089

Aspire Defence Services Limited

31 December 2025

Notes (continued)

Amortisation

The amortisation is recognised within cost of sales.

9Tangible assets


	Freehold land and buildings	Tools and equipment	IT equipment	Total
	£000	£000	£000	£000
Cost
Balance at 1 January 2025	2,879	4,408	2,807	10,094
Additions	—	35	240	275
Disposals	—	—	(92)	(92)

Balance at 31 December 2025	2,879	4,443	2,955	10,277

Depreciation
Balance at 1 January 2025	1,484	3,786	2,499	7,769
Charge for the year	82	181	215	478
Disposals	—	—	(90)	(90)

Balance at 31 December 2025	1,566	3,967	2,624	8,157

Net book value
At 1 January 2025	1,395	622	308	2,325

At 31 December 2025	1,313	476	331	2,120

10Debtors


	2025	2024
	£000	£000

Trade debtors	67	63
Amounts owed by related parties	19,398	15,021
Prepayments , accrued income and VAT	3,427	3,785

Due within one year	22,892	18,869

All debtors are due within one year and are interest free.

Aspire Defence Services Limited

31 December 2025

Notes (continued)

11Cash at bank


	2025	2024
	£000	£000

Cash at bank	6,629	5,575

12Creditors: amounts falling due within one year


	2025	2024
	£000	£000

Trade creditors	6,089	4,884
Amounts owed to related parties	5,199	4,529
Taxation and social security	1,674	1,516
Accruals and deferred income	14,067	11,177

	27,029	22,106

Amounts owed to related parties are interest free, unsecured and payable on demand. Included in amounts

owed to related parties is a group relief payable to Kellogg Brown & Root Limited amounting to £ 4,694k

(2024 - £3,272k).

13Deferred Tax Liability


	2025	2024
	£000	£000

Accelerated capital allowances	(110)	34
Employee benefits, net	528	242

	418	276

Aspire Defence Services Limited

31 December 2025

Notes (continued)

14Employee benefits

Defined contribution pension scheme

Aspire Defence Services Limited operates a Federated defined contribution pension scheme. The pension cost

charge for the year represents contributions payable by the Company to the scheme and amounted to £ 2,528k

(2024: £2,266k). There were no outstanding or prepaid contributions at either the beginning or end of the

financial year.

Defined benefit pension scheme

The Company also operates a pension scheme providing benefits based on final pensionable pay which started

in April 2008. The latest full actuarial valuation was carried out as at 5 April 2022 by a qualified independent

actuary, the valuation determined that additional funding contributions of £46k per annum are required for the

next year (2025). Regular contributions are set at 62%

The pension scheme was reviewed as part of a due diligence review by Aspire and the Pension Trustee.

The estimated GMP (guaranteed minimum pension) equalisation impact for the scheme in an increase of

0.03% of the value of the scheme liabilities. Following discussion with the Company’s actuary, the Directors

consider that the potential range of impact for the scheme to be between 0.02% and 0.04% of the total value of

the scheme liabilities. Due to the immaterial impact of the increase in liability (c£3,400), no amendment has

been made by the Directors in respect of GMP.

The information disclosed below is in respect of the plan for which the Company is the sponsoring employer

throughout the periods shown.

Net pension liability


	2025	2024
	£000	£000

Defined benefit obligation	(13,265)	(13,187)
Plan assets	15,378	14,159

Net pension asset	2,112	972

Aspire Defence Services Limited

31 December 2025

Notes (continued)

Movements in present value of defined benefit obligation


	2025	2024
	£000	£000

At 1 January	13,187	14,279
Current service cost	397	429
Expenses	142	119
Interest expense	714	659
Actuarial gains	(415)	(1,385)
Contributions by members	35	37
Benefits paid	(795)	(950)

At 31 December	13,265	13,188

Movements in fair value of plan assets


	2025	2024
	£000	£000

At 1 January	14,159	14,432
Interest income	787	687
Contributions by employer	790	968
Contributions by members	35	37
Benefits paid	(795)	(950)
Actuarial (losses)/gains	401	(1,015)

At 31 December	15,378	14,159

Expense recognised in the profit and loss account


	2025	2024
	£000	£000

Current service cost	(396)	(428)
Expenses	(142)	(119)
Net interest receivable/(payable) on net defined benefit liability	73	28

Total expense recognised in profit or loss	(465)	(519)

Aspire Defence Services Limited

31 December 2025

Notes (continued)

The fair value of the plan assets and the return on those assets were as follows:


	2025	2024
	Fair value	Fair value
	£000	£000

Equities	7,709	7,548
Corporate bonds	3,507	3,417
Liability driven investment	4,058	3,045
Cash and cash equivalents	103	149

	15,377	14,159

The return on plans assets amounted to a profit of £401k, (2024: £1,015k loss)

Principal actuarial assumptions (expressed as weighted averages) at the year-end were as follows:


	2025	2024
	%	%

Discount rate	5.65	5.55
Future salary increases	2.50	2.50
Inflation (RPI)	3.00	3.20

Last full actuarial valuation was performed as at 5 April 2022. The actuarial valuation for the purpose of these

accounts was undertaken by a qualified actuary applying appropriate economic assumptions to value liabilities

and assets.

In valuing the liabilities of the pension fund at 31 December 2025, mortality assumptions have been made as

indicated below.

The assumptions relating to longevity underlying the pension liabilities at the balance sheet date are based on

standard actuarial mortality tables and include an allowance for future improvements in longevity. The

assumptions are equivalent to expecting a 60-year-old to live for a number of years as follows:

• Current pensioner aged 60: 24.6 years (male), 27.6 years (female).

• Future retiree upon reaching 60: 26.2 years (male), 29.2 years (female).

Aspire Defence Services Limited

31 December 2025

Notes (continued)

15Capital and reserves

Called up share capital


	Ordinary shares
	2025	2024

Allotted, called up and fully paid
Ordinary share capital £1	2	2

Profit & Loss Account


	2025	2024
	£000	£000

The reserve relates to the cumulative retained earnings less amounts distributed to shareholders as dividends.	7,395	6,788

16Operating leases

Non-cancellable operating lease rentals are payable as follows:


	2025	2024
	£000	£000

Less than one year	2,056	1,897
Between two and five years	2,769	4,126

	4,825	6,023

During the year £ 2,167 k was recognised as an expense in the profit and loss account in respect of operating

leases (2024: £1,768k).

17Commitments

Capital commitments

The Company had no contractual commitments as at the 31 December 2025 ( 2024: £Nil ).

Aspire Defence Services Limited

31 December 2025

Notes (continued)

18Related parties

Kellogg Brown & Root Limited has 100% control of Aspire Defence Services Limited . The ultimate parent

company of Kellogg Brown & Root Limited is KBR, Inc. which is incorporated in the US and whose

registered address is 601 Jefferson Street Houston, TX 77002 , United States of America. During the year

ADSL contracted with other entities controlled or partly owned by the ultimate parent company:

– Aspire Defence Capital Works, an unincorporated joint venture between KBR (Aspire Construction

Ventures) Ltd and KBR (Aspire Construction) Ltd, with ADSL providing IT and infrastructure support

and delivering projects as a sub-contractor within the framework of the Army Basing programme.

– Aspire Defence Services, an unincorporated joint venture between KBR (Aspire Services Ventures) Ltd

and KBR (Aspire Services) Ltd, is responsible for the delivery of Services to ADL within Project Allenby

Connaught, the majority of which it sub-contracts to ADSL with a flow-down of related contractual

provisions.

Aspire Defence Limited is a wholly owned subsidiary of Aspire Defence Holdings Limited. Aspire Defence

Holdings Limited is owned 45% by KBR (UK) Investments Limited, 37.5% by Innisfree Nominees Limited as

nominee for and on behalf of Innisfree PFI Secondary Fund, 12.5% by Infrastructure Investment Holdings

Limited and 5% by InfraRed Infrastructure Yield Holdings Limited. The ultimate parent company of KBR

(UK) Investments Limited is KBR, Inc. The ultimate parent company of Infrastructure Investment Holdings

Limited is HICL Infrastructure PLC.

Aspire Defence Limited receive information technology and security management support from ADSL.

Other related party transactions


	Sales		Cost of Sales
	2025	2024	2025	2024
	£000	£000	£000	£000

Kellogg Brown & Root Limited	156	89	6,662	8,007
Aspire Defence Limited	132	133	179	14
Aspire Defence Services	169,718	174,784	—	—
Aspire Defence Capital Works	22	192	201	88
Kellogg Brown & Root (U.K.) Limited	—	—	—	13
	170,028	175,198	7,042	8,123

During the year management charges were made to Aspire Defence Limited £199K (2024: £199K) and Aspire

Defence Capital Works £2,875K (2024:£2,743K), these are not included in the above sales. Dividends were

paid during 2025 to Kellogg Brown & Root Limited totaling £13,800,000 (2024: £16,700,000).

Aspire Defence Services Limited

31 December 2025

Notes (continued)


	Receivables outstanding			Creditors outstanding
	2025		2024	2025	2024
	£000		£000	£000	£000

Aspire Defence Limited	32		47	—	—
Aspire Defence Services	19,100		14,741	—	—
Aspire Defence Capital Works	251		233	(63)	—
Kellogg Brown & Root Inc	—	—	—	(319)
Kellogg Brown & Root Limited	15		—	(4,694)	(4,529)
Kellogg Brown & Root (U.K.) Limited	—		—	(123)	—
	19,398		15,021	(5,199)	(4,529)

Group relief is due to Kellogg Brown & Root Limited totaling £4,694k, in 2024 the Group Relief due to

Kellogg Brown & Root Limited was £3,272k.

There is a guarantee in the form of a legal charge over the Aspire contract. On insolvency of KBR, Inc. the

shares owned by KBR, Inc. in Aspire Defence Services Limited, KBR (U.K.) Investments Limited, KBR

(Aspire Construction) Holdings No. 2 Limited, KBR (Aspire Construction Ventures) Holdings No. 2 Limited,

KBR (Aspire Services) Holdings No. 2 Limited and KBR (Aspire Services Ventures) Holdings No. 2 Limited

would transfer to the Kellogg Brown & Root (U.K.) Limited defined benefit pension plan scheme. The Kellogg

Brown & Root (U.K.) Limited defined benefit pension plan scheme will have access to this guarantee.

19Events after the reporting date

In September 2025, KBR announced that it was planning to split into two, separately listed groups, with one

primarily operating in the energy sector, and the other servicing the defence sector. This had no impact on the

trading activity of the company in 2025.

During 2026, the ultimate shareholder of the company is anticipated to change, and be listed separately from

KBR, Inc. KBR, Inc is intending to retain a minority stake in the separated group. KBR management continues

to evaluate the steps required to affect the split of the business

20Accounting estimates and judgements

The preparation of the financial statements requires the Directors to make judgements, estimates and

assumptions that affect the application of policies and reported amounts of assets and liabilities, income and

expenses.

The estimates and associated assumptions are based on historical experience and various other factors that are

believed to be reasonable under the relevant circumstances. Actual results may differ from these estimates. The

estimates and underlying assumptions are reviewed by the Directors on an on-going basis.

Sources of estimation uncertainty

The Directors do not consider there to be any key sources of estimation uncertainty that may have a significant

risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial

year.

Aspire Defence Services Limited

31 December 2025

Notes (continued)

Defined Benefit Pensions Scheme

ADSL has obligations to operate a Defined Benefit pension scheme for staff that transferred into ADSL with

protected pensions rights. Details of the Company’s defined benefit arrangements are set out in Note 14,

including key assumptions which are estimates. The cost of these benefits and the present value of the

obligation depend on a number of factors, including life expectancy, salary increases, asset valuations and the

discount rate on corporate bonds. The adoption of different assumptions could result in a range of outcomes for

the defined benefit obligation. The Directors utilise the experience of the Company’s actuary with reference to

the assumptions adopted by similar schemes in the market in order to select the appropriate assumptions.

The effects of changes in the actuarial and demographic assumptions underlying the scheme’s obligations,

together with experience gains or losses and the return on assets excluding amounts recognised in net financing

costs are classified as remeasurements in the defined benefit liability.

Judgements

Revenue Recognition on Project Work

Revenue derived from project works, measured on a percentage of completion basis and in progress at the

balance sheet date involves judgment and estimates, particularly as it relates to the process of estimating total

forecasted costs of the contracts