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Registered number: 08570351
The Drainage Repair Company Ltd
Financial statements
For the year ended 31 December 2025
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The Drainage Repair Company Ltd
Company Information
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The Drainage Repair Company Ltd
Contents
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Independent auditor's report
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Statement of comprehensive income
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Statement of financial position
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Statement of changes in equity
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Notes to the financial statements
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Detailed profit and loss account and summaries
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The Drainage Repair Company Ltd
Directors' report
For the year ended 31 December 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
Directors' responsibilities statement
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The directors are responsible for preparing the Directors' report and the financial statements in accordance with applicable law.
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-adopted international accounting standards in conformity with the requirements of the Companies Act 2006.
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 the financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgments and estimates that are reasonable and prudent;
∙state whether they have been prepared in accordance with UK-adopted international accounting standards in conformity with the requirements of the Companies Act 2006, subject to any material departures disclosed and explained in the financial statements;
∙assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
∙use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
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 such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
The principal activity of the Company is that of drainage repair services.
The loss for the year, after taxation, amounted to £159,748 (2024 - loss £2,766,126).
The loss for the year included an exceptional write off of a balance due from the parent company and a fellow subsidiary, both of which have entered administration, of £493,026. If this was excluded, the Company would have made a profit for the year, after taxation, of £333,278.
The directors who served during the year were:
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The Drainage Repair Company Ltd
Directors' report (continued)
For the year ended 31 December 2025
Disclosure of information to auditor
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Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
The auditor, Kreston Reeves Audit LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
Small companies' exemption note
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In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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P A Stanley
Director
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The Drainage Repair Company Ltd
Independent auditor's report to the members of The Drainage Repair Company Ltd
We have audited the financial statements of The Drainage Repair Company Ltd for the year ended 31 December 2025 which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of material accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK-adopted international accounting standards in conformity with the requirements of the Companies Act 2006.
In our opinion the financial statements:
∙give a true and fair view of the state of the Company's affairs as at 31 December 2025 and of its loss for the year then ended;
∙have been properly prepared in accordance with UK-adopted international accounting standards in conformity with the requirements of the Companies Act 2006; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
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 United Kingdom, including the Financial Reporting Council'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.
Material uncertainty related to going concern
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We draw attention to note 4.1 in the financial statements, which indicates a loss of £159,748 for the year ended 31 December 2025 and, as of that date, the company had net current liabilities of £436,658 and net liabilities of £435,318. Note 4.1 also refers to specific material uncertainties. As stated in note 4.1, these events or conditions, along with the other matters as set forth in this note, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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.
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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The Drainage Repair Company Ltd
Independent auditor's report to the members of The Drainage Repair Company Ltd (continued)
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.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙ the Directors' report has 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 material misstatements in 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.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement on page 1, 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.
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The Drainage Repair Company Ltd
Independent auditor's report to the members of The Drainage Repair Company Ltd (continued)
Auditor's responsibilities for the audit of the financial statements
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Capability of the audit in detecting irregularities, including fraud
Based on our understanding of the company and industry, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. 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 the Companies Act 2006 and taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue or expenditure and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included:
∙Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud; and
∙Assessment of identified fraud risk factors; and
∙Challenging assumptions and judgements made by management in its significant accounting estimates; and
∙Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
∙Performing analytical procedures with automated data analytics tools to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and
∙Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and
∙Identifying and testing journal entries, in particular any manual entries made at the year-end for financial statement preparation.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
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The Drainage Repair Company Ltd
Independent auditor's report to the members of The Drainage Repair Company Ltd (continued)
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks 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 purpose of expressing an opinion of the effectiveness of the Company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and 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 events 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 auditor's report to the related disclosures 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.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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.
Jonathan Timms BSc FCCA (Senior statutory auditor)
for and on behalf of
Kreston Reeves Audit LLP
Statutory Auditor
Chichester
2 October 2026
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The Drainage Repair Company Ltd
Statement of comprehensive income
For the year ended 31 December 2025
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Total comprehensive income
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The notes on pages 11 to 25 form part of these financial statements.
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Page 7
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The Drainage Repair Company Ltd
Registered number: 08570351
Statement of financial position
As at 31 December 2025
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Property, plant and equipment
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Trade and other receivables
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Cash and cash equivalents
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Trade and other liabilities
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Issued capital and reserves
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The financial statements on pages 7 to 25 were approved and authorised for issue by the board of directors and were signed on its behalf by:
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P A Stanley
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The notes on pages 11 to 25 form part of these financial statements.
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The Drainage Repair Company Ltd
Statement of changes in equity
For the year ended 31 December 2025
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Comprehensive income for the year
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Total comprehensive income for the year
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Comprehensive income for the year
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Total comprehensive income for the year
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The notes on pages 11 to 25 form part of these financial statements.
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Page 9
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The Drainage Repair Company Ltd
Statement of cash flows
For the year ended 31 December 2025
Cash flows from operating activities
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Depreciation of property, plant and equipment
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Movements in working capital:
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Decrease in trade and other receivables
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Increase in trade and other payables
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Net cash from/(used in) operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Net cash used in investing activities
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Cash flows from financing activities
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Payments of lease creditors
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Net cash used in financing activities
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Net increase/(decrease) in cash and cash equivalents
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Cash and cash equivalents at the beginning of year
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Cash and cash equivalents at the end of the year
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The notes on pages 11 to 25 form part of these financial statements.
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The Drainage Repair Company Ltd
Notes to the financial statements
For the year ended 31 December 2025
The Drainage Repair Company Ltd (the 'Company') is a limited company incorporated in England and Wales. The Company's registered office is at Bourne House, 475 Godstone Road, Whyteleafe, Surrey, CR3 0BL. The Company's principal activity is drainage repair services.
The financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations as adopted by the UK (collectively IFRSs).
Details of the Company's accounting policies, including changes during the year, are included in note 4.
In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of the Company accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
The financial statements have been prepared on the historical cost basis except where set out in note 4.
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2.2 Changes in accounting policies
i) New standards, interpretations and amendments effective
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In the current year, the Company has applied a number of new standards and amendments to existing IFRSs issued by the International Accounting Standards Board (IASB) that are mandatorily effective for an accounting period that begins on or after 1 January 2025. Their adoption has not had any material impact on the disclosures or on the amounts reported in the financial statements:
- Lack of Exchangeability (Amendments to IAS 21); effective 1 January 2025
All of the amendments listed above did not have an impact on the amounts recognised in the current period and are not expected to significantly affect future periods.
There are no other IFRSs or IFRS IC interpretations that are effective for the first time for the financial year beginning on or after 1 January 2025 that would be expected to have a material impact on the Company.
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The Drainage Repair Company Ltd
Notes to the financial statements
For the year ended 31 December 2025
2.Basis of preparation (continued)
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New standards, interpretations and amendments not yet effective
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The following new standards, interpretations and amendments, which are not yet effective and have not been adopted early in these financial statements, will or may have an effect on the Company's future financial statements:
- Amendments IFRS 9 and IFRS 7 regarding the classification and measurement of financial instruments (Effective 1 January 2026)
- Annual Improvements to IFRS Accounting Standards - Volume 11 (Effective 1 January 2026)
- Amendments to IFRS 9 and IFRS 7 regarding power purchase arrangements (Effective 1 January 2026)
None of the other standards, interpretations and amendments which are effective for periods beginning after 31 December 2025 and which have not been adopted early are expected to have a material effect on the financial statements. Management anticipates that all relevant pronouncements will be adopted for the first period beginning on or after the effective date of the pronouncement.
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Functional and presentation currency
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These financial statements are presented in pound sterling, which is the Company's functional currency. All amounts have been rounded to the nearest pound, unless otherwise indicated.
4.Accounting policies
The company has made a loss for the year of £159,748 (2024: loss £2,766,126) and as at the year end
it has net current liabilities of £436,658 (2024: net current liabilities of £291,260) and net liabilities of
£435,318 (2024: net liabilities of £275,570).
The loss for the year has arisen as the directors have made a provision of £493,026 (2024: £3,376,836) against the amount receivable due from the parent company, GNL Realisations 2026 Limited (formally 360Globalnet Ltd), following that company going into administration on 4 March 2026. Had the provision not been required, the company would have reported a profit for the year ended 31 December 2025 of £333,278 (2024: £610,710).
The directors have prepared cash flow forecasts covering the period of at least 12 months from the date
of approval of these financial statements. At this date, the company has a large debtor book which the directors are confident of collecting in the coming months and which will significantly improve the cash flow position of the company. Further to this, the exceptional dry weather conditions experienced in the UK recent months have had a positive impact on the company’s future order book and the drainage and site investigation network is currently close to capacity. The cash flow forecasts show that the underlying trade of the company is expected to continue to be profitable and that the company will generate sufficient funds to continue operating for a period of at least 12 months from the date of approval of the financial statements.
As at the date of approval of these financial statements, notwithstanding the continued underlying
profitability referred to above, there are a number of uncertainties affecting the company which create a
material uncertainty with regard to the company’s ability to continue as a going concern, as follows:
∙DXC UK International Operations Limited ("DXC") hold a fixed and floating debenture over the
company in relation to a debt owed by the parent company to DXC. On 4 March 2026 the parent
company went into administration. The company itself is not in administration, and the directors are in regular communication with the Administrators and are confident that this charge will be satisfied in full in due course.
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The Drainage Repair Company Ltd
Notes to the financial statements
For the year ended 31 December 2025
4.Accounting policies (continued)
∙The company has a corporation tax liability of £329,474 based on its taxable profits for the year ended
31 December 2024 and 31 December 2025. In previous accounting periods, the company has been able to obtain group relief of taxable losses from GNL Realisations 2026 Limited and fellow subsidiaries of that company to set off against its taxable profits, resulting in the company not having a liability to corporation tax. The Administrators have formally written to HMRC on 30 September 2026 giving consent to the surrender of tax losses in the sum of £1,302,482 from GNL Realisations 2026 Limited to the company in respect of the years ended 31 December 2024 and 31 December 2025. The directors expect that the group relief claims will be successful, but to remain prudent, the directors have included a provision of £329,474 for corporation tax in these financial statements until such time as the claims have been processed and accepted by HMRC. In the unlikely event that they are not accepted, they forecast that the corporation tax will be paid from the cash generated from future trading profit.
Finally, the directors have secured a small invoice discounting facility and one director has also expressed a willingness to support the company with a short-term cash flow injection, in the form of a director’s loan, in the unlikely event that the company is unable to trade through the recent challenging trading conditions which solely arose from the Administration of its parent company which has now been acquired by Keylane a large European Insurance software company.
Having considered the matters above, and based on the information currently available, the directors are confident that the company will continue in operational existence for at least 12 months from the date of approval of these financial statements. The directors have, therefore, concluded that it is appropriate to prepare the company’s financial statements on a going concern basis. The financial statements do not include any adjustments that would result if the company were unable to continue as a going concern.
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The Company recognises revenue when it transfers control over a product or service to a customer.
The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.
To determine whether to recognise revenue, the Company follows a 5-step process:
1. Identify the contract with a customer
2. Identifying the performance obligations
3. Determining the transaction price
4. Allocating the transaction price to the performance obligations
5. Recognising revenue when/as performance obligation(s) are satisfied.
Where a sale may involve a range of the Company's products and services, the total transaction price for a contract is allocated amongst the various performance obligations based on their relative stand-alone prices. The transaction price for a contract excludes any amounts collected on behalf of third parties.
Revenue is recognised over time or at a point in time as the Company satisfies performance obligations depending upon the services provided.
If the Company satisfies a performance obligation before it receives the consideration, the Company recognises either accrued income or a trade receivable in its statement of financial position, depending upon whether it has been invoiced or not as at the year end.
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The Drainage Repair Company Ltd
Notes to the financial statements
For the year ended 31 December 2025
4.Accounting policies (continued)
The Company assesses whether a contract is or contains a lease, at inception of a contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low-value assets. For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate.
Lease payments included in the measurement of the lease liability comprise fixed lease payments (including in-substance fixed payments), less any lease incentives.
The lease liability is included in the 'Loans and borrowings' line in the Statement of financial position.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.
The right-of-use assets are included in the 'Motor vehicles' lines in Note 11.
The Company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in note 4.7.
As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has used this practical expedient.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
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The Drainage Repair Company Ltd
Notes to the financial statements
For the year ended 31 December 2025
4.Accounting policies (continued)
Retirement benefit costs and termination benefits
Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current and deferred tax for the year
Current and deferred tax are recognised in profit or loss, except when they relate to items that are
recognised in other comprehensive income or directly in equity, in which case, the current and deferred
tax are also recognised in other comprehensive income or directly in equity respectively. Where current
tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included
in the accounting for the business combination.
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Property, plant and equipment
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Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.
An item of property, plant and equipment is derecognised on disposal or when no future economic benefits are expected. Any gain or loss on derecognition of an asset is included in profit or loss.
An item of property, plant and equipment is impaired where the recoverable amount is less than the carrying amount. The recoverable amount is the amount the Company could recover through use or sale of the asset. Where this occurs, an impairment loss is recognised in profit or loss.
Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term. Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates:
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Straight line basis for 36 & 60 months
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Over the term of the lease
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The Drainage Repair Company Ltd
Notes to the financial statements
For the year ended 31 December 2025
4.Accounting policies (continued)
Trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets.
Trade receivables are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.
Trade payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
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Cash and cash equivalents
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Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments maturing within 90 days from the date of acquisition that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
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Defined contribution schemes
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Contributions to defined contribution pension schemes are charged to the statement of comprehensive income in the year to which they relate.
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The Drainage Repair Company Ltd
Notes to the financial statements
For the year ended 31 December 2025
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The following is an analysis of the Company's revenue for the year from continuing operations:
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Timing of revenue recognition:
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Goods and services transferred at a point in time
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Goods and services transferred over time
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Employee benefit expenses
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Employee benefit expenses (including directors) comprise:
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Defined contribution pension cost
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None of the directors received any remuneration from the company during the year (2024: £Nil). All directors emoluments are borne by GNL Realisations 2026 Limited.
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The monthly average number of persons, including the directors, employed by the Company during the year was as follows:
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Page 17
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The Drainage Repair Company Ltd
Notes to the financial statements
For the year ended 31 December 2025
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Exceptional items (note 8)
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Auditor's remuneration - audit
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Non-audit remuneration charged by an associate of the Auditor
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Exceptional items relates to a provision made against balances due from the parent company, GNL Realisations 2026 Limited, and a fellow subsidiary, 360Claimservices Ltd, both of which went into administration after the year end.
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Finance income and expense
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Recognised in profit or loss
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Other interest receivable
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Leases (interest portion)
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Net finance income recognised in profit or loss
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Page 18
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The Drainage Repair Company Ltd
Notes to the financial statements
For the year ended 31 December 2025
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10.1 Income tax recognised in profit or loss
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The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to losses for the year are as follows:
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Income tax expense (including income tax on associate, joint venture and discontinued operations)
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Tax using the Company's domestic tax rate of 25% (2024: 25%)
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Expenses not deductible for tax purposes
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Depreciation in excess of capital allowances
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Short-term timing difference leading to an increase/(decrease) in taxation
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Changes in tax rates and factors affecting the future tax charges
There were no factors that may affect future tax charges.
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The Drainage Repair Company Ltd
Notes to the financial statements
For the year ended 31 December 2025
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Property, plant and equipment
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Accumulated depreciation and impairment
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Charge owned for the year
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Charged financed for the year
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Charge owned for the year
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Charged financed for the year
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11.1. Assets held under leases
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The net book value of owned and leased assets included as "Property, plant and equipment" in the Statement of financial position is as follows:
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Property, plant and equipment owned
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Page 20
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The Drainage Repair Company Ltd
Notes to the financial statements
For the year ended 31 December 2025
11.Property, plant and equipment (continued)
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11.1 Assets held under leases (continued)
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Information about right-of-use assets is summarised below:
Net book value
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Depreciation charge for the year ended
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Page 21
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The Drainage Repair Company Ltd
Notes to the financial statements
For the year ended 31 December 2025
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Trade and other receivables
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Receivables from related parties
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Prepayments and accrued income
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Total current trade and other receivables
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The carrying value of trade and other receivables classified as financial assets measured at amortised cost approximates to their fair value.
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Other payables - tax and social security payments
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Total current trade and other payables
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The carrying value of trade and other payables classified as financial liabilities measured at amortised cost approximates to their fair values.
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Page 22
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The Drainage Repair Company Ltd
Notes to the financial statements
For the year ended 31 December 2025
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Total loans and borrowings
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The parent company, GNL Realisations 2026 Limited entered into a funding agreement with DXC UK International Operations Limited (DXC). As part of the agreement, fixed and floating charges over the property of The Drainage Repair Company Ltd have been filed with Companies House in securing amounts due to DXC.
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Ordinary shares of £1 each
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Ordinary shares of £1 each
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At 1 January and 31 December
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Page 23
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The Drainage Repair Company Ltd
Notes to the financial statements
For the year ended 31 December 2025
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At 31 December 2025, the Company is committed to £6,446 (2024: £20,897) in future lease payments, none of which relate to short term leases. The carrying amount of the lease liability approximates to fair value.
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The following amounts in respect of leases have been recognised in profit or loss:
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Interest expense on lease liabilities
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Depreciation on right-of-use assets
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Financial instruments - fair values and risk management
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17.1 Financial risk management objectives
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The Company is exposed to various risks in relation to financial instruments. The Company's risk
management is coordinated by its board of directors. The Company does not actively engage in the
trading of financial assets for speculative purposes. The most significant financial risks to which the
Company is exposed are described below.
The Company is exposed to market risk through its use of financial instruments which result from its
operating and investing activities.
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17.3 Credit risk management
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Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is
exposed to credit risk from financial assets including cash and cash equivalents held at banks, trade and
other receivables.
Credit risk is managed based on the Company's credit risk management policies and procedures.
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17.4 Financial instruments
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Trade and other receivables
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Page 24
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The Drainage Repair Company Ltd
Notes to the financial statements
For the year ended 31 December 2025
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Related party transactions
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Details of transactions between the Company and its related parties are disclosed below.
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18.1 Other related party transactions
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Other related party transactions are as follows:
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Related party relationship
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During the year the company made net payments to the parent of £262,186 and charged interest on the outstanding loan balance of £227,205. The gross balance receivable from the parent as at 31 December 2025 was £3,866,227.
During the year the company made net payments to the fellow subsidiary of £3,635. The gross balance receivable from the fellow subsidiary as at 31 December 2025 was £6,042.
Following the parent and fellow subsidiary both entering administration post year end, the year end balances receivable from the parent and fellow subsidiary have been fully provided for at the year end. The total provision recognised as an expense in the year is £493,026.
At the year end, the ultimate parent company was GNL Realisations 2026 Limited, incorporated in England and Wales.
On 4 March 2026, GNL Realisations 2026 Limited went into administration.
At the year end, the ultimate controlling party was P A Stanley.
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