The directors present the strategic report for the year ended 30 September 2025.

The year ended 30 September 2025 was a challenging period for the Company. Market conditions within the housebuilding and construction sectors remained difficult, with delays arising from Gateway Two regulations alongside the continued impact of elevated inflation and interest rates on customer activity and project commencement. These conditions resulted in increased pressure across the sector and contributed to a reduction in demand and delays in contract delivery.

In response to these challenges, the directors undertook a comprehensive review of the Company's structure, operations, controls and policies to improve resilience and position the business for long-term growth. As part of this review, the Company implemented a restructuring programme, strengthened operational controls and management reporting processes and revised certain business procedures.

The results for the year were significantly impacted by the costs associated with the restructuring programme, including non-recurring costs of £651k, together with the effect of a revised revenue recognition methodology which delayed the recognition of certain revenues and profits by £233k. In addition, shortly before the year end, a significant customer entered administration, resulting in losses from bad debts of £684k adversely affecting the Company's financial performance for the year.

To support future growth and strengthen liquidity, the Company introduced an invoice discounting facility and secured additional funding through a government-backed loan scheme. These facilities have enhanced working capital management and provide flexibility to support future operations.

Notwithstanding the losses incurred during the year, the directors believe that the actions taken have established a stronger operating platform for the future. Overheads have been reduced, key areas of expertise have been strengthened, and investment has been made in technology and infrastructure to improve operational efficiency and support growth.

The Company entered the new financial year with a healthy order book, stable work in hand and a strong pipeline of opportunities. Trading since the year end has shown a significant improvement and management has seen a return to profitable trading.

Market Risk

The Company operates within the specialist construction and housebuilding sector and is therefore exposed to economic conditions, changes in regulatory requirements, inflationary pressures and fluctuations in interest rates. These factors can influence customer confidence, project commencements and overall levels of construction activity.

The directors monitor market conditions closely and seek to mitigate these risks through maintaining strong customer relationships, focusing on specialist technical expertise and diversifying the Company's client base where possible.

Liquidity Risk

The directors recognise the importance of maintaining adequate financial resources to support operations and future growth. Cash flow forecasts are prepared and reviewed regularly to monitor working capital requirements and funding needs.

Following the implementation of the restructuring programme and the introduction of additional funding facilities, the directors are satisfied that the Company has access to sufficient resources to meet its obligations as they fall due. However, liquidity management remains an important focus given the challenging market conditions experienced during the year.

Credit Risk

The Company's principal financial assets comprise cash balances and trade receivables.

The directors seek to manage credit risk through customer credit assessments, reference checks, ongoing monitoring of outstanding balances and the use of credit insurance where appropriate. During the year, the insolvency of a significant customer highlighted the potential exposure to credit risk within the sector. As a result, the Company has strengthened its credit control procedures and enhanced monitoring of customer balances to reduce future exposure.

Employees

The directors recognise that employees are fundamental to the continued success of the Company. During the year the business undertook organisational changes to ensure that resources were aligned with strategic objectives and future growth plans.

The Company remains committed to attracting, developing and retaining skilled employees through investment in training, support and professional development.

Future Outlook

Although economic uncertainty and sector-specific challenges remain, the directors are encouraged by the Company's performance since the year end. The benefits of the restructuring programme, together with improved controls, strengthened management information and investment in infrastructure, are beginning to be realised.

The directors remain focused on improving profitability, generating positive cash flows and delivering sustainable growth. Based on the current order book, work in hand and pipeline of opportunities, the directors believe the Company is well positioned to capitalise on future opportunities and achieve its strategic objectives.

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 September 2025.

The principal activity of the company continued to be that of supply and installation of fire prevention systems.

The results for the year are set out on page 8.

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:

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.

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.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

We have audited the financial statements of FDS Contracting Limited (the 'company') for the year ended 30 September 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 30 September 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.

- Identify and assess the risk of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company's internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and the related disclosures made by the directors.

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to event or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosure in the financial statements or, if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

FDS Contracting Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hawley Mill, Hawley Road, Dartford, Kent, DA2 7SY.

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. 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 represents the fair value of consideration receivable for services provided during the year, net of VAT and trade discounts.

Revenue from contracts is recognised over time as performance obligations are satisfied. Progress towards completion is measured by reference to the value of work certified and applications for payment submitted to customers at the reporting date, adjusted where necessary to reflect the directors' assessment of the recoverability and status of uncertified work.

Under this method, turnover includes amounts attributable to work performed but not yet invoiced at the reporting date. Amounts recognised in excess of invoices raised are included within gross amounts owed by contract customers.

The directors consider that recognition of revenue by reference to applications for payment provides a reliable measure of performance and reflects the value of work completed and the transfer of services to customers during the period.

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.

During the year, the directors reviewed the useful economic lives of certain items of property, plant and equipment and revised the depreciation rates accordingly. This change has been treated as a change in accounting estimate and applied prospectively. The impact of the change on the financial statements for the year is not material.

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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. 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 which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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.

These financial statements for the year ended 30 September 2025 are the first financial statements of FDS Contracting Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 October 2023. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.

These financial statements for the year ended 30 September 2025 are the first financial statements of FDS Contracting Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 October 2023. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.

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 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.

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

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.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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.

During the year, the company changed its accounting policy for recognising revenue on long-term contracts.

Previously, contract revenue was recognised by reference to the stage of completion determined using a cost-to-complete methodology. Under the revised policy, revenue is recognised by reference to applications for payment submitted to customers, adjusted where appropriate for the directors' assessment of work completed and recoverability.

The directors believe that the revised policy provides more relevant and reliable information to users of the financial statements as it better reflects the value of work performed and the basis upon which contracts are managed, monitored and charged to customers.

The change has been applied retrospectively in accordance with FRS 102. Accordingly, comparative information has been restated and a prior period adjustment has been recognised.

The company’s revised accounting policies are set out in Note 1 and the effect of the change on the comparative period is set out in Note 26.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The directors exercise judgement in determining the value of work completed at the reporting date and the recoverability of amounts due under contracts.

Revenue is recognised by reference to applications for payment submitted to customers, adjusted where necessary to reflect the directors' assessment of work completed and recoverable.

These assessments are based on contractual arrangements, project progress and discussions with customers. Actual outcomes may differ from these estimates, which could result in adjustments to revenue and contract asset balances in future periods.

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

Their aggregate remuneration comprised:

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 company's banking facilities are secured by fixed and floating charges over the assets and undertaking of the company and certain fellow group undertakings in favour of Arbuthnot Commercial Asset Based Lending Limited.

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.

The company operates an invoice discounting facility secured against certain trade receivables. At 30 September 2025, £3,654,879 of trade receivables and applications had been assigned as security and £71,123 was drawn under the facility. The associated liability is included within other creditors.

Key management personnel are considered to be the company's directors, see note 7 for details of their remuneration.

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

All loans are interest free and repayable on demand.

The company has taken advantage of the exemption available under FRS 102 paragraph 33.1A and has not disclosed transactions and balances entered into between wholly-owned members of the group.

The ultimate parent company is GSAR Group Holdings Limited. Copies of the consolidated accounts can be obtained from 152-154 London Road, Greenhithe, United Kingdom, DA9 9JW.

During the year, the company changed its accounting policy for recognising revenue on long-term contracts. Previously, contract revenue was recognised by reference to the stage of completion determined using a cost-to-complete methodology. Under the revised policy, revenue is recognised by reference to applications for payment submitted to customers, adjusted where appropriate for the directors' assessment of work completed and recoverability. Comparative figures have been restated and the resulting adjustment has been recognised through opening reserves.