REGISTERED NUMBER: 11563035 (England and Wales)

COTSWOLD ENERGY GROUP LTD

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE PERIOD 1 APRIL 2026 TO 31 AUGUST 2026

Page

Company Information

1

Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

DIRECTOR:

S A H Bones

REGISTERED OFFICE:

Unit 1 Upper Mills

Stonehouse

Gloucestershire

GL10 2BJ

REGISTERED NUMBER:

11563035 (England and Wales)

AUDITORS:

MC Audit Limited

Statutory Auditors

Lake House

2 Port Way

Port Solent

Portsmouth

Hampshire

PO6 4TY

Cotswold Energy Group Limited is a UK-based provider of renewable energy solutions, delivering sustainable technologies for homes and businesses. The company provides integrated advice on and installation and maintenance of energy saving technologies including solar PV/batteries, heat pumps and smart cooling, building fabric and insulation measures, and EV charging infrastructure. The company's core mission is to help reduce carbon emissions and energy bills through tailored energy-saving installations.

PRINCIPAL ACTIVITIES

The entity specializes in:

1. Solar Photovoltaic (PV) Systems: Installation of solar panels for homes and businesses to generate clean energy, often with associated battery storage to optimize self-usage and make use of time-of-use tariffs.

2. Heat Pumps: Offering both ground and air-source heat pumps, dramatically reducing energy consumption associated with heating, supporting smart cooling where required, and supporting the shift to cleaner electricity use.

3. Insulation Upgrades: Improving energy efficiency through insulation and building fabric solutions. These works are typically subcontracted rather than being directly delivered.

4. EV Charging: Supporting electric vehicle infrastructure with dedicated home and commercial chargers.

These services aim to enhance energy independence, lower costs, and reduce carbon emissions.

BUSINESS MODEL

The company operates on a project-based model, generating revenue primarily through:

1. Residential Installations: Home energy upgrades that include solar PV, heat pumps, and insulation as appropriate on both a funded and able-to-pay bas is, and serving owner-occupiers as well as social and private landlords.

2. Commercial Projects: Tailored energy solutions for businesses seeking to reduce operational costs and achieve sustainability goals, typically focused on renewable generation, storage and heating/cooling.

3. Consulting and Design Services: Providing detailed feasibility assessments and energy-saving project designs, typically as part of installation projects.

Cotswold Energy also offers long-term support, including maintenance and servicing of installed systems, ensuring optimal performance.

Key Performance Indicators (KPIs)

The company evaluates success using the following KPIs:

1. Profit growth: Sustained increase in profitability through sales growth and enhanced cost effectiveness

2. Cash management: ensuring operating cash conversion is optimized through working capital management and commercial structuring

3. Carbon Reduction: Measured by tonnes of CO2 saved through installed systems.

4. Overall quality: Positive customer feedback and high levels of customer satisfaction are key, as is provision of the right solutions for clients, ensuring installations and commissioning give the right benefits, and optimum product selection

PRINCIPAL RISK AND UNCERTAINTIES

1. Technological Advances: Rapid changes in renewable technology require the company to stay abreast of product innovation and to support and enhance that innovation in what is presented to customers and how that is done. Technology is also driving operational change, which the company is actively looking to lead through its tech-enabled business model.

2. Market Competition: A mix of small players who typically compete on price rather than quality and larger companies who are prepared to invest heavily on marketing and customer acquisition.

3. Regulatory Risks: Dependency on government grants and incentives for customer affordability as well as broader Net Zero government policy and regulations around fuel pricing, building standards, lending etc.

4. Supply Chain Risks: Potential delays or disruptions in sourcing components for installations as well as dependency on the company's own field engineers and subcontracted service provider

To mitigate these risks, Cotswold Energy diversifies its product offerings and market segments targeted and stays in line with government energy policies.

FINANCIAL PERFORMANCE

The period since the acquisition of Cotswold Energy Group on 2 April (broadly aligning with this financial period) has been one of turnaround for the company, following a difficult financial year ended 31 March 2026.

The key financial data are as follows:

1. Revenue: £7.9m (£18.8m annualized on a 12/5 basis), representing a 12.0% decrease compared to the previous year as the company withdrew from loss-making works predominantly in the Residential sector and focused on remediating and closing out historic works prior to a growth push, which is expected in the upcoming financial year.

2. Gross profit: Improvement in gross margin from 24.5% to 27.9%, driven by focused service delivery, reduction in higher-cost in-house labour and improved contract mix.

3. Operating costs: Operating costs of £2.0m (£4.9m annualized) represents a 4% reduction over the prior period, reflecting the success of the '100 days' turnaround plan implemented immediately post-acquisition. This gives the business a fitter base on which to operate.

4. Profit after tax: The net of the above, plus an improvement in other below-the-line items mean a 5.7% profit after tax of £446k (£1.1m annualised) vs -6.7% (-£1.4m) in the prior period; this return to profitability positions the company for future profitable growth

5. Balance Sheet improvement: The company had a significant overdue creditor position at the point of acquisition (including HMRC) as well as poor liquidity metrics. All uncontested aged debt has since been paid down - while this resulted in a negative operating cash position for the period, it is not expected to repeat and puts the company on a more stable financial footing and improved relations with relevant counterparties. The company has moved its net assets before long-term director loans (a balance sheet KPI) from -£952k to +£707k

The company has successfully reversed the last two years of losses to deliver a profitable financial period with a strengthened balance sheet and now represents a robust platform for future success.

GOING CONCERN:

The director has reviewed the forecast future performance of the company and has prepared financial forecasts for 12 months from the date of approval of these financial statements. The director considers that the company has sufficient cash reserves to continue trading, whilst meeting the financial obligations set within any lending facilities. Accordingly, the director continue to adopt the going concern basis in preparing the company's accounts. Further details regarding the adoption of the going concern basis can be found in note 20 to the accounts.

FUTURE OUTLOOK

The outlook remains positive as demand for renewable energy continues to grow and government policy and residential and commercial customers alike continues to move towards renewables.

Cotswold Energy Group Limited is a key player in the UK's renewable energy sector, with strong financial performance and a clear strategy for growth. Its customer-centric approach, combined with innovative technologies, positions it for continued success in helping homes and businesses reduce their carbon footprints. Management remains focused on maintaining operational efficiency, driving a return to growth, and delivering long-term sustainability.

ON BEHALF OF THE BOARD:

S A H Bones - Director

8 October 2026

The director presents his report with the financial statements of the company for the period 1 April 2026 to 31 August 2026.

DIVIDENDS

No dividends were disbursed in the 2026 year.

DIRECTORS

The directors who have held office during the period from 1 April 2026 to the date of this report are as follows:

N M I Gillanders - resigned 2 April 2026

S A H Bones - appointed 2 April 2026

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, MC Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S A H Bones - Director

8 October 2026

Opinion

We have audited the financial statements of Cotswold Energy Group Ltd (the 'company') for the period ended 31 August 2026 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, 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).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 August 2026 and of its profit for the period then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies 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.

Other matter

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

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

From discussion with management and those charged with governance information about the entity is documented to assess the activity within the organisation. We discuss management's assessment of risk in respect of irregularities, fraud and going concern.

Based on these discussions and our own assessments we determined that the key risk areas were income recognition in respect of cut off issues, management override concerning the size of the organisation.

We set financial statement materiality level based on the level of revenue. This has been selected as the benchmark as it provides a more stable and relevant measure of the company’s scale of operations for users of the financial statements. This is because the prior year reflected a significant loss, while the current period covers only five months and reflects a profit, resulting in volatility in profitability. Our overall assessment of risk was used to determine performance materiality at an appropriate level.

Substantive audit tests were designed after assessing and testing systems and controls. The systems and controls which have been designed to act as a preventative measure against fraud and error were operating as documented. Substantive testing tested a sample of the population, representative of the population, to identify errors. The testing did not identify any material misstatements in areas tested.

Audit substantive tests concluded no material errors over the key risk areas of income recognition and management override.

The audit considers the organisation is not exposed to material risk of error as a result of assessing laws and

regulations that are appropriate to the organisation.

Management assessed there is no going concern risk. The audit undertook a review of budgets and management accounts and came to the same conclusion as management.

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 Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.

Paul Underwood (Senior Statutory Auditor)

for and on behalf of MC Audit Limited

Statutory Auditors

Lake House

2 Port Way

Port Solent

Portsmouth

Hampshire

PO6 4TY

8 October 2026

TURNOVER

7,852,876

21,422,469

Cost of sales

5,660,695

16,183,534

GROSS PROFIT

2,192,181

5,238,935

Distribution costs

266,002

742,602

Administrative expenses

1,783,137

4,395,275

2,049,139

5,137,877

OPERATING PROFIT

4

143,042

101,058

Exceptional items

5

205,477

(1,452,495

)

348,519

(1,351,437

)

Interest payable and similar expenses

6

97,244

123,919

PROFIT/(LOSS) BEFORE TAXATION

251,275

(1,475,356

)

Tax on profit/(loss)

7

(195,209

)

(47,084

)

PROFIT/(LOSS) FOR THE FINANCIAL PERIOD

446,484

(1,428,272

)

PROFIT/(LOSS) FOR THE PERIOD

446,484

(1,428,272

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

446,484

(1,428,272

)

FIXED ASSETS

Tangible assets

8

803,347

1,070,971

CURRENT ASSETS

Stocks

9

287,686

303,125

Debtors

10

2,950,201

6,277,552

Cash at bank

621,628

11,749

3,859,515

6,592,426

CREDITORS

Amounts falling due within one year

11

3,573,379

7,868,738

NET CURRENT ASSETS/(LIABILITIES)

286,136

(1,276,312

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,089,483

(205,341

)

CREDITORS

Amounts falling due after more than one year

12

(1,594,848

)

(562,082

)

PROVISIONS FOR LIABILITIES

15

-

(184,426

)

NET LIABILITIES

(505,365

)

(951,849

)

CAPITAL AND RESERVES

Called up share capital

16

78

78

Retained earnings

17

(505,443

)

(951,927

)

SHAREHOLDERS' FUNDS

(505,365

)

(951,849

)

The financial statements were approved by the director and authorised for issue on 8 October 2026 and were signed by:

S A H Bones - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2025

78

476,345

476,423

Changes in equity

Total comprehensive income

-

(1,428,272

)

(1,428,272

)

Balance at 31 March 2026

78

(951,927

)

(951,849

)

Changes in equity

Total comprehensive income

-

446,484

446,484

Balance at 31 August 2026

78

(505,443

)

(505,365

)

Cash flows from operating activities

Cash generated from operations

1

(771,973

)

621,475

Interest paid

(709

)

(3,648

)

Lease interest paid

(96,535

)

(120,271

)

Tax paid

(3,413

)

(118,550

)

Net cash from operating activities

(872,630

)

379,006

Cash flows from investing activities

Purchase of tangible fixed assets

(6,286

)

(420,830

)

Sale of tangible fixed assets

80,418

11,296

Net cash from investing activities

74,132

(409,534

)

Cash flows from financing activities

Loan proceeds in period

450,000

-

Loan repayments in period

(17,721

)

-

Payment of lease liabilities

(236,550

)

(63,775

)

Amount introduced by directors

1,223,551

-

Amount withdrawn by directors

(10,903

)

-

Net cash from financing activities

1,408,377

(63,775

)

Increase/(decrease) in cash and cash equivalents

609,879

(94,303

)

Cash and cash equivalents at beginning of period

2

11,749

106,052

Cash and cash equivalents at end of period

2

621,628

11,749

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

1.4.26

to

Year ended

31.8.26

31.3.26

£

£

Profit/(loss) before taxation

251,275

(1,475,356

)

Depreciation charges

266,002

627,627

(Profit)/loss on disposal of fixed assets

(72,510

)

32,924

Non cash adjustment - Bad debts

240,102

280,771

Impairment loss

-

114,974

Non cash adjustment - HP Leases

23,155

(340,810

)

Exceptional item

(205,477

)

1,452,495

Finance costs

97,244

123,919

599,791

816,544

Decrease in stocks

15,439

201,101

Decrease/(increase) in trade and other debtors

3,390,586

(1,741,861

)

(Decrease)/increase in trade and other creditors

(4,777,789

)

1,345,691

Cash generated from operations

(771,973

)

621,475

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Period ended 31 August 2026

31.8.26

1.4.26

£

£

Cash and cash equivalents

621,628

11,749

Year ended 31 March 2026

31.3.26

1.4.25

£

£

Cash and cash equivalents

11,749

106,052

At the end of the previous financial period, a significant amount of overdue creditor liabilities were on the balance sheet. Management has made a deliberate effort to pay these down over this financial period, driving the reduction in trade and other creditors compared to the reduction in trade and other debtors.

Trade and other debtor balances have materially decreased in the period and include a £1,452,495 balance sheet reduction in the debts (already written off) owed by previous sister company South Coast Insulation Services Limited as these debts are not expected to be recoverable.

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.26

Cash flow

At 31.8.26

£

£

£

Net cash

Cash at bank

11,749

609,879

621,628

11,749

609,879

621,628

Debt

Finance leases

(1,111,998

)

236,550

(875,448

)

Debts falling due within 1 year

-

(432,279

)

(432,279

)

(1,111,998

)

(195,729

)

(1,307,727

)

Total

(1,100,249

)

414,150

(686,099

)

1.	STATUTORY INFORMATION

Cotswold Energy Group Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Reporting period

These financial statements cover the five-month period from 1 April 2026 to 31 August 2026. The accounting reference date was changed from 31 March to 31 August to align the company’s reporting date with that of its new parent entity. Accordingly, the comparative figures for the year ended 31 March 2026 are not entirely comparable.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company, the revenue can be reliably measured and the revenue can be matched in the same period the service was rendered to the customer. Revenue is measured at fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Contract Income and Installation Services

The entity undertakes installation-based contracts including solar, air source heat pumps and commercial works. Revenue from these contracts is recognised over time as the customer simultaneously receives and consumes the benefits of the services, or where the asset is created on the customer’s premises with no alternative use to the entity and the entity has an enforceable right to payment for work performed to date.

The stage of completion is measured by reference to costs incurred relative to total estimated costs or certified work performed.

Solar Installations

Revenue is recognised over time based on stage of completion. Customer billing typically consists of a 25% deposit and 75% on completion. Revenue is recognised in line with work performed rather than invoice timing.

Air Source Heat Pump (ASHP) Installations

Revenue is recognised over time as installation progresses. Billing is staged (deposit, goods ordered, completion invoice), however revenue is recognised based on stage of completion of the installation works.

Commercial Contracts

Revenue is recognised over time using the percentage of completion method. Monthly Applications for Payment (AFP) are prepared based on certified work completed and revenue is recognised accordingly.

Accrued and Deferred Income

At each reporting date, revenue is adjusted to ensure appropriate matching of income and costs. Accrued income is recognised where revenue has been earned but not invoiced. Deferred income is recognised where payment has been received in advance of performance

Expenses

Expenses are recognised when it is probable that an outflow of resources embodying economic benefits will result from the settlement of a present obligation and the amount of the expense can be measured reliably.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

33% on cost

Fixtures and fittings

-

33% on cost

Motor vehicles

-

25% on cost

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss.

Stocks

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

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties and investments in non-puttable ordinary shares.

Trade and other debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, deposits with banks and other short-term highly liquid investments and bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities.

Trade and other creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Long term loans

Long-term loans requires that they be initially recognized at the transaction price, which is typically the amount of cash received or the fair value of other consideration given. Subsequently, long-term loans are measured at amortized cost using the effective interest rate method. This approach involves recognizing interest expense in profit or loss over the period of the loan in such a way that the interest rate is constant over the term of the loan.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Leases

At the commencement date, the Company recognises a right-of-use asset and corresponding lease liability for leases, except for short-term leases and leases of low-value assets for which the recognition exemptions have been applied.

Lease liabilities are initially measured at the present value of unpaid lease payments, discounted using the interest rate implicit in the lease or, where that rate cannot readily be determined, an appropriate obtainable or incremental borrowing rate. Lease liabilities are subsequently increased for interest and reduced by payments made.

Right-of-use assets are initially measured at cost and subsequently depreciated and assessed for impairment. Where ownership transfers to the Company, or the Company is reasonably certain to exercise a purchase option, the asset is depreciated over its useful economic life. Otherwise, it is depreciated over the shorter of its useful life and the lease term.

Payments for exempt short-term and low-value leases are recognised as an expense over the lease term.

3.	EMPLOYEES AND DIRECTORS

Period

1.4.26

to

Year ended

31.8.26

31.3.26

£

£

Wages and salaries

1,672,707

5,337,246

Social security costs

214,948

344,833

Other pension costs

47,287

102,834

1,934,942

5,784,913

The average number of employees during the period was as follows:

Period

1.4.26

to

Year ended

31.8.26

31.3.26

Employees

90

115

Period

1.4.26

to

Year ended

31.8.26

31.3.26

£

£

Directors' remuneration

-

-

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

Period

1.4.26

to

Year ended

31.8.26

31.3.26

£

£

Depreciation - owned assets

266,002

627,627

Profit on disposal of fixed assets

(72,510

)

(11,614

)

Auditors' remuneration for non audit work

1,500

1,500

Auditors' remuneration

5,500

7,300

5.	EXCEPTIONAL ITEMS

Period

1.4.26

to

Year ended

31.8.26

31.3.26

£

£

Exceptional items

205,477

(1,452,495

)

The exceptional items arose following the disposal of the Company by its former group and the subsequent insolvency of companies within that group.

During the period, the Company recognised an exceptional gain of £205,477 following the cancellation of an intercompany loan previously payable to a member of the former group.

In the prior year, South Coast Insulation Services Limited, a company within the former group with which the Company had a material trading relationship, entered administration. Management concluded that the outstanding balance of £1,452,495 was irrecoverable and the amount was written off.

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1.4.26

to

Year ended

31.8.26

31.3.26

£

£

Interest payable

709

3,648

Hire purchase interest

96,535

120,271

97,244

123,919

7.

TAXATION

Analysis of the tax credit

The tax credit on the profit for the period was as follows:

Period

1.4.26

to

Year ended

31.8.26

31.3.26

£

£

Deferred tax

(195,209

)

(47,084

)

Tax on profit/(loss)

(195,209

)

(47,084

)

Reconciliation of total tax credit included in profit and loss

The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below:

Period

1.4.26

to

Year ended

31.8.26

31.3.26

£

£

Profit/(loss) before tax

251,275

(1,475,356

)

Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25% (2026 - 25%)

62,819

(368,839

)

Effects of:

Expenses not deductible for tax purposes

984

3,132

Income not taxable for tax purposes

(69,497

)

(2,904

)

Depreciation in excess of capital allowances

53,551

160,969

Utilisation of tax losses

(47,857

)

-

Deferred tax movement – charge

(195,209

)

(47,084

)

Benefit of tax losses carried forward

-

207,642

Total tax credit

(195,209

)

(47,084

)