Company Registration Number: 14773269
FOR THE YEAR ENDED 31 DECEMBER 2025
EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
COMPANY INFORMATION
EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
CONTENTS
EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors present their strategic report for Efficient Building Solutions Group Limited and its subsidiaries (together, the “Group”) for the year ended 31 December 2025. The report sets out the development and performance of the Group during the year, the principal risks and uncertainties facing the business, the key financial and non-financial matters considered by the Directors, and the Group’s outlook and strategic priorities.
The principal activities of the Group are the supply and installation of low-energy products for residential and commercial buildings. These include solar photovoltaic panels, battery storage systems, air and ground source heat pumps, mechanical ventilation and heat recovery systems, triple-glazed windows and insulation solutions.
The Group operates from offices across the United Kingdom and continues to develop a national branch and engineering structure capable of serving customers across the country. During the year, the Group invested in integrated operational systems to improve visibility over scheduling, installation quality, engineer productivity and branch performance.
No acquisitions were completed during the year, as target businesses continued to deliver mixed results themselves. The Group continued to develop its acquisition pipeline, completing due diligence on a business based in North Wales and agreeing heads of terms with a business in south-west England, both of which would expand the Group’s national footprint.
The Group secured a £7 million equity investment from a European mid-market growth investor, which allowed the Group to settle deferred considerations and working capital.
The Group operates from offices across the United Kingdom and continues to develop a national branch and engineering structure capable of serving customers across the country. During the year, the Group invested in integrated operational systems to improve visibility over scheduling, installation quality, engineer productivity and branch performance.
No acquisitions were completed during the year, as target businesses continued to deliver mixed results themselves. The Group continued to develop its acquisition pipeline, completing due diligence on a business based in North Wales and agreeing heads of terms with a business in south-west England, both of which would expand the Group’s national footprint.
The Group secured a £7 million equity investment from a European mid-market growth investor, which allowed the Group to settle deferred considerations and working capital.
The Group remains committed to operating responsibly and to supporting the transition to more energy-efficient buildings. During the year, the Group developed a carbon reporting methodology, prepared carbon footprint data and produced an ESG report for 2025. Energy and carbon audits were completed, with action plans established to enhance energy efficiency and identify further renewable energy opportunities.
ESG considerations are also embedded in procurement and people practices. Compliance with defined ESG criteria became a key requirement of the Group’s procurement process, supporting a more ethical and sustainable supply chain. Employee development continued through the Group’s Online Academy, and the Employee Purchase Scheme enabled employees to purchase renewable technologies for their own homes at cost.
ESG considerations are also embedded in procurement and people practices. Compliance with defined ESG criteria became a key requirement of the Group’s procurement process, supporting a more ethical and sustainable supply chain. Employee development continued through the Group’s Online Academy, and the Employee Purchase Scheme enabled employees to purchase renewable technologies for their own homes at cost.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors manage the risks and uncertainties at a Group level, rather than an individual company level. The principal risks and uncertainties are:
Product or systems failure. Failure of products or systems could result in reputational damage, litigation and potential loss of customers. The Group maintains risk management policies, procedures and systems across the organisation which are designed to comply with applicable regulatory requirements.
Workforce capability and retention. The Group’s ability to attract, retain and develop a sufficiently skilled and experienced workforce is critical to delivery. The Group mitigates this risk through staff training programmes, competitive compensation packages and management incentive schemes.
IT systems and cyber security. The Group’s IT systems could fail as a result of a severe IT fault or cyber crime. The outsourced IT team and employed Group IT Manager maintain access controls over data and IT systems, monitor performance and maintain disaster recovery and business continuity plans.
Market and economic conditions. A downturn in the market or wider economic conditions could affect demand. The Board believes this risk is mitigated by the Group’s exposure to a number of sectors, the compelling economics of solar photovoltaic panels and heat pump installations, and the continuing environmental drivers in the markets in which the Group operates.
Acquisition integration. Acquisitions may fail to integrate successfully into the Group or may not maintain expected revenue and profit growth. The Group mitigates this risk through its experience of acquiring and integrating businesses and by conducting due diligence before acquisition.
Third-party and subcontractor performance. Poor performance by third parties or retained subcontractors could affect service quality and delivery. The majority of work is undertaken by the Group’s own employees and, where third parties or subcontractors are used, they are processed through the Group’s vetting procedure to ensure only capable and suitable companies are engaged.
Product or systems failure. Failure of products or systems could result in reputational damage, litigation and potential loss of customers. The Group maintains risk management policies, procedures and systems across the organisation which are designed to comply with applicable regulatory requirements.
Workforce capability and retention. The Group’s ability to attract, retain and develop a sufficiently skilled and experienced workforce is critical to delivery. The Group mitigates this risk through staff training programmes, competitive compensation packages and management incentive schemes.
IT systems and cyber security. The Group’s IT systems could fail as a result of a severe IT fault or cyber crime. The outsourced IT team and employed Group IT Manager maintain access controls over data and IT systems, monitor performance and maintain disaster recovery and business continuity plans.
Market and economic conditions. A downturn in the market or wider economic conditions could affect demand. The Board believes this risk is mitigated by the Group’s exposure to a number of sectors, the compelling economics of solar photovoltaic panels and heat pump installations, and the continuing environmental drivers in the markets in which the Group operates.
Acquisition integration. Acquisitions may fail to integrate successfully into the Group or may not maintain expected revenue and profit growth. The Group mitigates this risk through its experience of acquiring and integrating businesses and by conducting due diligence before acquisition.
Third-party and subcontractor performance. Poor performance by third parties or retained subcontractors could affect service quality and delivery. The majority of work is undertaken by the Group’s own employees and, where third parties or subcontractors are used, they are processed through the Group’s vetting procedure to ensure only capable and suitable companies are engaged.
Trading during the year was challenging, reflecting softer conditions in the renewables market. With no acquisitions completed during the year, the business took the decision to focus 2025 on the integration of the four acquisitions completed in 2024. Management focused on strengthening the existing business, improving operational discipline and building a more scalable platform for future growth. Significant progress was made in procurement following the recruitment of a dedicated procurement manager. The supplier base was consolidated, and agreements were signed with strategic suppliers, delivering lower prices, increased credit limits and improved payment terms.
Turnover for the year was £21,821,964 (2024: £33,318,973). Gross profit was £4,438,072 (2024: £7,241,270), representing a gross margin of 20.34% (2024: 21.73%). EBITDA before exceptional items was negative £5,014,804 (2024: negative £6,581,248). Although after adjustments of £4,831,625 which are mainly associated with discontinued operations (£722,405), central overhead costs (£2,221,772) and procurement cost savings (£1,887,447), the adjusted EBITDA for the year was negative £183,179.
The Group also increased its penetration of the commercial and public sector markets, winning a number of six-figure private projects and being accepted onto four local authority Dynamic Purchasing System frameworks, which pre-approve the Group to tender for civic and social housing projects. Operational performance and installation quality continued to improve, with the Group rated 4.5 on Trustpilot and 4.8 on Google Reviews, and the Group began moving to a “local-first” operating model that increases the autonomy of its branches while keeping central overheads lean.
Turnover for the year was £21,821,964 (2024: £33,318,973). Gross profit was £4,438,072 (2024: £7,241,270), representing a gross margin of 20.34% (2024: 21.73%). EBITDA before exceptional items was negative £5,014,804 (2024: negative £6,581,248). Although after adjustments of £4,831,625 which are mainly associated with discontinued operations (£722,405), central overhead costs (£2,221,772) and procurement cost savings (£1,887,447), the adjusted EBITDA for the year was negative £183,179.
The Group also increased its penetration of the commercial and public sector markets, winning a number of six-figure private projects and being accepted onto four local authority Dynamic Purchasing System frameworks, which pre-approve the Group to tender for civic and social housing projects. Operational performance and installation quality continued to improve, with the Group rated 4.5 on Trustpilot and 4.8 on Google Reviews, and the Group began moving to a “local-first” operating model that increases the autonomy of its branches while keeping central overheads lean.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors expect the financial year ending 31 December 2026 to show improved performance, supported by the initiatives implemented during 2025 and early 2026.
The Group's strategic priorities for the coming year are to strengthen its national presence and grow across both residential and commercial markets, broadening its customer base and maintaining a proposition that is relevant to a wide range of customers. It will also develop integrated building performance solutions that improve whole-building energy efficiency.
The Group will seek further operational efficiencies and continue to invest in its people, training and technology to improve productivity and support employee development.
The Group's strategic priorities for the coming year are to strengthen its national presence and grow across both residential and commercial markets, broadening its customer base and maintaining a proposition that is relevant to a wide range of customers. It will also develop integrated building performance solutions that improve whole-building energy efficiency.
The Group will seek further operational efficiencies and continue to invest in its people, training and technology to improve productivity and support employee development.
The Group's stakeholders help to shape its strategy, and understanding the Company's relationships with these groups ensures that it continues to conduct business in the right way, building positive relationships within the marketplace, and minimising its impact on the environment.
Recognising and understanding our stakeholders enables the directors to fulfil their duties under Section 172(1) of the Companies Act 2006 and to take into account the interests of stakeholders and other relevant matters when making decisions. In determining what is most likely to promote the long-term success of the Group, the directors consider the potential impact of their decisions on stakeholders, local communities, the environment, and the Group's reputation. Maintaining a strong reputation as a responsible business and trusted partner is fundamental to the Group's continued success.
Employees.
The Board recognises that employees are fundamental to the Group's success. During the year the Group continued to invest in employee development through its Online Academy and migrated professional development tracking onto Odoo so that learning records are integrated with personnel information. The Employee Purchase Scheme was introduced to enable employees to purchase renewable technologies for their own homes at cost. The Directors also considered the importance of leadership capacity and clear accountability in preparing for the restructuring programme implemented after the year end.
Customers.
Customer outcomes and service quality were monitored through operational performance measures and external review platforms, with the Group rated 4.5 on Trustpilot and 4.8 on Google Reviews during the year. The Board supported continued investment in installation quality and the move towards a local-first operating model, which is intended to improve responsiveness while retaining consistent central standards. The Group's acceptance onto four local authority Dynamic Purchasing System frameworks was considered as part of broadening the customer base into civic and social housing projects.
Suppliers and subcontractors.
The Group's relationships with suppliers and retained subcontractors are central to the delivery of high-quality energy-efficiency installations. The Board supported the consolidation of the supplier base and the negotiation of improved commercial terms with strategic suppliers, delivering lower prices, increased credit limits and improved payment terms, helping to strengthen supply chain resilience and project margins. Compliance with defined ESG criteria became a key requirement of the Group's procurement process, and third parties and subcontractors are engaged through the Group's vetting procedure.
Recognising and understanding our stakeholders enables the directors to fulfil their duties under Section 172(1) of the Companies Act 2006 and to take into account the interests of stakeholders and other relevant matters when making decisions. In determining what is most likely to promote the long-term success of the Group, the directors consider the potential impact of their decisions on stakeholders, local communities, the environment, and the Group's reputation. Maintaining a strong reputation as a responsible business and trusted partner is fundamental to the Group's continued success.
Employees.
The Board recognises that employees are fundamental to the Group's success. During the year the Group continued to invest in employee development through its Online Academy and migrated professional development tracking onto Odoo so that learning records are integrated with personnel information. The Employee Purchase Scheme was introduced to enable employees to purchase renewable technologies for their own homes at cost. The Directors also considered the importance of leadership capacity and clear accountability in preparing for the restructuring programme implemented after the year end.
Customers.
Customer outcomes and service quality were monitored through operational performance measures and external review platforms, with the Group rated 4.5 on Trustpilot and 4.8 on Google Reviews during the year. The Board supported continued investment in installation quality and the move towards a local-first operating model, which is intended to improve responsiveness while retaining consistent central standards. The Group's acceptance onto four local authority Dynamic Purchasing System frameworks was considered as part of broadening the customer base into civic and social housing projects.
Suppliers and subcontractors.
The Group's relationships with suppliers and retained subcontractors are central to the delivery of high-quality energy-efficiency installations. The Board supported the consolidation of the supplier base and the negotiation of improved commercial terms with strategic suppliers, delivering lower prices, increased credit limits and improved payment terms, helping to strengthen supply chain resilience and project margins. Compliance with defined ESG criteria became a key requirement of the Group's procurement process, and third parties and subcontractors are engaged through the Group's vetting procedure.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Community and the environment.
The Directors consider environmental matters to be integral to the Group's purpose and strategy, as the Group's products support the transition to more energy-efficient buildings. During the year the Group developed a carbon reporting methodology, prepared carbon footprint data and produced an ESG report for 2025. Energy and carbon audits were completed, with action plans established to enhance energy efficiency and identify further renewable energy opportunities, and the Group reports its energy consumption and greenhouse gas emissions under the Streamlined Energy and Carbon Reporting requirements.
Members and funders.
The £7 million equity investment secured from a European mid-market growth investor during the year was used to settle deferred consideration and support working capital, strengthening the Group's financial platform. The Board continues to balance short-term trading conditions with longer-term investment in people, systems, procurement and operating discipline, and seeks to act fairly between members of the Company.
Principal decisions.
During the year the Board's principal decisions included focusing the business on the integration of the four acquisitions completed in 2024 rather than pursuing further acquisitions, investing in integrated operational systems and procurement capability, securing new equity funding to strengthen the Group's financial position, and continuing to develop the acquisition pipeline, including completing due diligence on a business based in North Wales and agreeing heads of terms with a business in south-west England. The Board also prepared the restructuring programme executed during the first half of 2026, which strengthened the leadership team and removed approximately £1.1 million of annualised cost. These decisions were taken with a view to building a more resilient, scalable and nationally capable business while improving installation quality, customer outcomes and gross margin performance over the longer term.
The Directors consider environmental matters to be integral to the Group's purpose and strategy, as the Group's products support the transition to more energy-efficient buildings. During the year the Group developed a carbon reporting methodology, prepared carbon footprint data and produced an ESG report for 2025. Energy and carbon audits were completed, with action plans established to enhance energy efficiency and identify further renewable energy opportunities, and the Group reports its energy consumption and greenhouse gas emissions under the Streamlined Energy and Carbon Reporting requirements.
Members and funders.
The £7 million equity investment secured from a European mid-market growth investor during the year was used to settle deferred consideration and support working capital, strengthening the Group's financial platform. The Board continues to balance short-term trading conditions with longer-term investment in people, systems, procurement and operating discipline, and seeks to act fairly between members of the Company.
Principal decisions.
During the year the Board's principal decisions included focusing the business on the integration of the four acquisitions completed in 2024 rather than pursuing further acquisitions, investing in integrated operational systems and procurement capability, securing new equity funding to strengthen the Group's financial position, and continuing to develop the acquisition pipeline, including completing due diligence on a business based in North Wales and agreeing heads of terms with a business in south-west England. The Board also prepared the restructuring programme executed during the first half of 2026, which strengthened the leadership team and removed approximately £1.1 million of annualised cost. These decisions were taken with a view to building a more resilient, scalable and nationally capable business while improving installation quality, customer outcomes and gross margin performance over the longer term.
This report was approved by the board and signed on its behalf.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
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.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation, amounted to £7,492,259 (2024 - £8,684,428).
No dividends were declared by the Company or Group during the year (2024: £Nil). There are no proposed dividends.
The directors who served during the year were:
The financial statements have been prepared on a going concern basis. The Group incurred a loss before taxation of £7,492,702 and had net current liabilities of £1,529,344 as at 31 December 2025. The Company had net assets of £31,794,534.
The owner of the Group has provided a letter of support confirming their intention to support the Group for at least 12 months from the date of signing of the financial statements and enable the Group to meet its financial obligations as they fall due. As a result of this, the Directors believe the business has sufficient resources to continue operations and thus are confident the Group is a going concern.
The owner of the Group has provided a letter of support confirming their intention to support the Group for at least 12 months from the date of signing of the financial statements and enable the Group to meet its financial obligations as they fall due. As a result of this, the Directors believe the business has sufficient resources to continue operations and thus are confident the Group is a going concern.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
A review of the Group’s operations and future developments is covered in the strategic report.
∙Liquidity is managed by regular monitoring of working capital (debtors, payables and inventory) and costs by the Directors. Cash flow is monitored on a weekly basis for the Group.
∙The Group monitors credit risk closely and considers that its current policies meet its objectives of managing exposure to the risk. The Group has no significant concentration of credit risk.
∙The Group operates within the UK. All customers and most suppliers are also based in the UK, therefore there is little risk from fluctuations in exchange rates.
The Group recognises that its employees are central to its ability to deliver high-quality installations, customer service and long-term growth. During the year the Group continued to invest in training and development through its Online Academy, with professional development tracking migrated onto Odoo so that learning records are integrated with personnel information. The Group also launched an Employee Purchase Scheme, enabling employees to purchase renewable technologies for their own homes at cost. Management remains focused on improving communication, supporting branch managers with better people systems and encouraging the recruitment and development of a diverse workforce across the business.
The following disclosures have been prepared for the Group in accordance with the Streamlined Energy and Carbon Reporting requirements applicable to UK companies within scope of those requirements. The Group reports energy consumption and greenhouse gas emissions for the year ended 31 December 2025. The energy the Group consumes arises almost entirely from the engineering fleet that reaches customer sites and the offices and depots from which that fleet operates. All operations are in the United Kingdom, so there is no overseas energy use to report. Reporting covers the trading subsidiaries that held premises or operated vehicles during the year.
Management re-evaluated the calculations during the year and, as a result, the prior year disclosures have been restated.
Management re-evaluated the calculations during the year and, as a result, the prior year disclosures have been restated.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Except the restructuring discussed in the strategic report, there have been no significant events affecting the Group since the year end.
The auditor, Armstrong Watson Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
We have audited the financial statements of Efficient Building Solutions Group Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2025, which comprise the Consolidated statement of comprehensive income, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of 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).
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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.
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 Group's or the Parent 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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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EFFICIENT BUILDING SOLUTIONS GROUP LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group 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 Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EFFICIENT BUILDING SOLUTIONS GROUP LIMITED (CONTINUED)
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 Auditors' 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 Group 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:
∙We obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation and occupational health and employment legislation.
∙We enquired of the directors, reviewed correspondence with HMRC and reviewed directors meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the directors have in place to ensure compliance.
∙We gained an understanding of the controls that the directors have in place to prevent and detect fraud. We enquired of the directors about any incidences of fraud that had taken place during the accounting period.
∙The risk of fraud and non-compliance with laws and regulations was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: revenue recognition and management override of controls.
∙We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above.
∙We enquired of the directors and third-party advisors about actual and potential litigation and claims.
∙We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.
∙In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgments made in making accounting estimates were indicative of a potential bias.
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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EFFICIENT BUILDING SOLUTIONS GROUP LIMITED (CONTINUED)
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 Auditors' 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.
for and on behalf of
Chartered Accountants & Statutory Auditors
Leeds
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
REGISTERED NUMBER: 14773269
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 6 October 2026.
The notes on pages 19 to 42 form part of these financial statements.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
REGISTERED NUMBER: 14773269
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 6 October 2026 .
The notes on pages 19 to 42 form part of these financial statements.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The Company is a private company limited by share capital, incorporated in England.
The principal activity of the Company is that of a holding company. The principal activity of the Group is the provision of goods and services relating to housing.
The financial statements are prepared in Pound Sterling (£), which is the functional currency of the Company and Group. All figures have been rounded to the nearest Pound.
The principal activity of the Company is that of a holding company. The principal activity of the Group is the provision of goods and services relating to housing.
The financial statements are prepared in Pound Sterling (£), which is the functional currency of the Company and Group. All figures have been rounded to the nearest Pound.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2021.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2021.
The financial statements have been prepared on a going concern basis. The Group incurred a loss before taxation of £7,492,702, and had net current liabilities of £1,529,344 as at 31 December 2025. The Company had net assets of £31,794,534.
The owner of the Group has provided a letter of support confirming their intention to support the Group for at least 12 months from the date of signing of the financial statements and enable the Group to meet its financial obligations as they fall due. As a result of this, the Directors believe the business has sufficient resources to continue operations and thus are confident the Group is a going concern.
The owner of the Group has provided a letter of support confirming their intention to support the Group for at least 12 months from the date of signing of the financial statements and enable the Group to meet its financial obligations as they fall due. As a result of this, the Directors believe the business has sufficient resources to continue operations and thus are confident the Group is a going concern.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Goodwill
Other intangible assets
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Group's Statement of financial position when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic financial liabilities
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 Group after the deduction of all its liabilities.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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, if the revision affects only that period.
If the revision affects both the current and future periods, the revision will impact both the period of the revision and future periods.
The directors consider the material estimates and judgments are applied in assessing the carrying value of investments and goodwill.
Goodwill
The Group performs an annual impairment assessment of goodwill and other indefinite life intangible assets using a value-in-use model based on discounted future cash flows. The recoverable amount of the relevant cash-generating unit ("CGU") is highly sensitive to management's assumptions regarding future revenue growth, profitability and discount rates.
In determining the recoverable amount, management has used a discounted cash flow model incorporating the Board-approved FY2027 strategic plan. The forecast assumes significant revenue growth in FY2027, driven by identified operational and commercial initiatives across the business. These initiatives include the expansion of the Farnborough operation, increased branch sales and marketing activity, development of B2B and key account revenues, organic growth initiatives, the roll-out of the "By Design" offering and growth in e-commerce and new product channels.
Management's forecast is supported by detailed branch-level plans, identified capacity expansion opportunities, existing customer relationships, framework opportunities, planned marketing investment and operational improvements. However, achieving the forecast requires the successful implementation of a significant proportion of the identified growth initiatives and therefore involves a degree of judgement regarding the timing and extent of revenue delivery.
Future cash flows have been discounted using a pre-tax discount rate of 13%, reflecting management's assessment of the time value of money and the risks specific to the CGU. Management considers the assumptions adopted to be reasonable and supportable based on current trading performance, market opportunities and the strategic initiatives available to the Group.
The impairment assessment is sensitive to changes in key assumptions. A reduction in forecast revenue growth, delays in delivering planned initiatives, lower forecast margins or an increase in the discount rate could reduce the recoverable amount and give rise to an impairment charge in future periods.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
3.Judgements in applying accounting policies (continued)
The valuation of investments is a significant area of judgement due to the absence of readily observable market values. Investments are valued at cost less accumulated impairment. An impairment assessment has been conducted and management has determined no impairment of fair value using a maintainable earnings methodology, applying an EBITDA multiple derived from comparable companies and adjusted for the specific circumstances, growth profile and risk characteristics of the underlying business.
In assessing the appropriate EBITDA multiple, management considered valuation multiples observed for comparable companies operating within the renewable energy, building services and energy efficiency sectors. Judgement was required in determining the relevance of selected comparators and the extent to which observed market multiples should be adjusted to reflect differences in scale, market position, growth prospects, profitability, customer concentration and liquidity.
A key factor in determining the valuation was the expected future growth profile of the business. Management considered the strategic growth plan approved by the board, which forecasts significant revenue growth in FY27. The forecast is supported by identified growth initiatives including increased branch sales and marketing activity, B2B and key account development, organic growth initiatives, and the expansion of e-commerce and new product offerings.
Management believes that this forecast growth profile supports the application of an EBITDA multiple towards the upper end of the range observed for comparable companies, reflecting both the anticipated increase in profitability and the significant growth opportunities available to the business.
The valuation is inherently sensitive to the assumptions applied, particularly the selection of the EBITDA multiple and the achievability of forecast revenue and earnings growth. Changes in expected trading performance, market conditions, comparable company valuation benchmarks or the successful execution of the identified growth initiatives could result in a materially different valuation of the investment. Management has reviewed the assumptions adopted and considers them to be reasonable and supportable based on the information available at the reporting date.
Analysis of turnover by country of destination:
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
12.Taxation (continued)
There were no factors that may affect future tax charges.
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