| RES Group Limited |
| Strategic Report |
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| The directors present their Strategic Report for the financial year ended 31st December 2025. |
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| Review of business |
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| The principal activity of the company throughout the year has remained the provision of electrical engineering, plumbing & drainage services, together with the installation & maintenance of lifts and air conditioning systems. |
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| With a continued and measured approach, the business remains committed to its core strategy and is well positioned to secure new opportunities, supported by its strong reputation for quality and its proven ability to respond effectively to emerging challenges and market demands. The loss of a key customer in October 2025 resulted in a reduction in turnover for the year, and the associated contract transfer led to 34 employees moving to the incoming supplier. However, the onboarding of new contracts in late 2025 and early 2026 has helped stabilise the profit margin, which remains steady—albeit lower than the previous year due to the disposals linked to the transferred contract. |
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| Post–year end, the company underwent a significant leadership transition, marked by the retirement of the Chief Executive Officer. This change was facilitated through a management buyout undertaken by the existing directors, ensuring continuity of strategic direction and operational stability. The management buyout structure allowed the outgoing Chief Executive Officer to step down smoothly while empowering the current leadership team to assume full ownership and drive the next phase of the company’s development. |
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| The directors are pleased to report that the company has delivered another successful year of performance. The business continues to focus on the reactive and maintenance elements of its service offering rather than long‑term contracting, a strategic emphasis that has supported consistent results and contributed to a robust order book across an increasingly diverse customer base. |
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| The company remains committed to continuous improvement, with ongoing refinement of its core strategy, including investment in staff development, training, and internal progression. Looking ahead, the directors anticipate the onboarding of new contracts and further expansion of the customer base —progress that is already reflected in the 2026 figures to date. |
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| Taking into account the current economic environment and recent changes within the core customer base, the directors consider the company’s overall position to be highly positive and well aligned for continued growth. |
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| The company's key financial performance indicators during the year were as follows: Gross profit - £2,161,133 (2024: £2,310,171), Profit on ordinary activities before taxation - £82,175 (2024: £348,228). |
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The directors have identified several principal risks that could influence the company’s operational performance and strategic objectives. These include:
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• Credit risk — the potential for client payment delays or defaults, which may affect cash flow management and financial stability.
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• Inflationary pressures — rising costs and economic uncertainty may impact the spending capacity and procurement behaviour of the core customer base.
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• Client departures — evolving customer strategies and service requirements may lead to contract losses or shifts in demand.
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• Liquidity risk — maintaining sufficient working capital to meet operational and financial commitments remains a key priority.
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| • Material and labour availability — volatility in supply chains and labour markets may disrupt service delivery and project timelines. |
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| The directors closely monitor these risks through established governance processes and internal controls designed to identify emerging issues at an early stage. This proactive approach enables the company to respond effectively, mitigate potential impacts, and maintain resilience within a changing economic and operational environment. |
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| The directors remain confident in the company’s strategic direction and its ability to navigate evolving market conditions, and they are committed to driving sustainable growth and long term value for all stakeholders. |
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| Future developments |
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| The company’s strategy of investing in key management personnel and strengthening internal controls is now firmly embedded within its operations. During the period, the company underwent a management buyout, enabling the retirement of the former Chief Executive Officer and ensuring continuity of leadership under the existing directors. |
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| The directors have continued to diversify the customer base, reducing reliance on individual clients. Following the year end, the company moved away from a major customer, resulting in a significant reduction in turnover. Staffing levels were subsequently adjusted in a controlled manner, with no adverse impact on trading activities or cash reserves. |
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| The directors have reviewed the long term profitability and financial position of the company and, notwithstanding the reduction in turnover, are satisfied that the company remains a going concern and is expected to generate acceptable future profits. New customers have already been onboarded, and improvements to the company’s web presence are supporting further diversification of the customer base. |
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| The directors consider the company to be in a stable financial position and appropriately structured to continue operating as a going concern. |
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| This report was approved by the board on 29 July 2026 and signed on its behalf. |
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| S Champion |
| Director |
| Director |
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| 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. |
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| 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. |
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| 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. |
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| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
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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 |
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the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. |
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| Matters on which we are required to report by exception |
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| In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
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We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. |
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We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006 and the Health and Safety at Work Act. |
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We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly. |
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Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment. |
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| The key procedures we undertook to detect irregularities including fraud during the course of the audit included: |
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Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual. |
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Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied. |
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Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to stocks and the provision for bad debts. |
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Assessing the extent of compliance, or lack of, with the relevant laws and regulations. |
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Testing key revenue lines. |
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Performing a physical verification of key assets . |
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Documenting and verifying all significant related party balances and transactions. |
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Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud. |
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| Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors. |
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