Erc Accountants & Business Advisers Limited

	Page
Statement of Financial Position	1—2
Notes to the Financial Statements	3—7

1. General Information

Erc Accountants & Business Advisers Limited is a private company, limited by shares, incorporated in England & Wales, registered number 06815821 . The registered office is Hanover Buildings, 11-13 Hanover Street, Liverpool, Merseyside, L1 3DN.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

2.2. Turnover

Turnover is the total amount estimated to be receivable for services rendered and disbursements charged to clients during the period, excluding Value Added Tax.

Turnover is recognised when a right to consideration has been obtained through performance under each contract and reflects the contract activity during the year having regard to the stage of completion of each contract and the relative uncertainty of predicting ultimate profitability on long term assignments.

2.3. Intangible Fixed Assets and Amortisation - Goodwill

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. The directors have chosen not to amortise the goodwill.

2.4. Tangible Fixed Assets and Depreciation

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Leasehold	Over the term of the lease
Motor vehicles	25% reducing balance
Fixtures and fittings	15% - 33% reducing balance

2.5. Leasing and Hire Purchase Contracts

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the income statement so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to income statement as incurred.

2.6. Stocks and Work in Progress

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. An element of profit is included in the valuation of work in progress, in line with UITF 40.

Page 3

Page 4

Erc Accountants & Business Advisers Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

2.7. Financial Instruments

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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

2.8. Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

2.9. Pensions

The company operates a defined pension contribution scheme. Contributions are charged to the income statement as they become payable in accordance with the rules of the scheme.

2.10. Government Grant

Government grants are recognised in the income statement in an appropriate manner that matches them with the expenditure towards which they are intended to contribute.

Grants for immediate financial support or to cover costs already incurred are recognised immediately in the income statement. Grants towards general activities of the entity over a specific period are recognised in the income statement over that period.

Grants towards fixed assets are recognised over the expected useful lives of the related assets and are treated as deferred income and released to the income statement over the useful life of the asset concerned.

All grants in the income statement are recognised when all conditions for receipt have been complied with.

2.11. Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 31 (2025: 23)

Page 4

Page 5

Erc Accountants & Business Advisers Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

4. Intangible Assets

	Goodwill
	£
Cost
As at 1 April 2025	1,588,551

As at 31 March 2026	1,588,551

Net Book Value
As at 31 March 2026	1,588,551

As at 1 April 2025	1,588,551

5. Tangible Assets

	Land & Property
	Leasehold	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£
Cost
As at 1 April 2025	818,739	334,570	78,685	1,231,994

As at 31 March 2026	818,739	334,570	78,685	1,231,994

Depreciation
As at 1 April 2025	77,395	95,863	63,123	236,381
Provided during the period	5,608	59,677	2,643	67,928

As at 31 March 2026	83,003	155,540	65,766	304,309

Net Book Value
As at 31 March 2026	735,736	179,030	12,919	927,685

As at 1 April 2025	741,344	238,707	15,562	995,613

Included above are assets held under finance leases or hire purchase contracts with a net book value as follows:

	2026	2025
	£	£
Motor vehicles	179,030	238,707

6. Stocks

	2026	2025
	£	£
Work in progress	94,603	84,564

Page 5

Page 6

Erc Accountants & Business Advisers Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

7. Debtors

	2026	2025
	£	£
Due within one year
Trade debtors	352,383	364,653
Prepayments and accrued income	48,975	43,632
Other debtors	-	174

	401,358	408,459

8. Creditors: Amounts Falling Due Within One Year

	2026	2025
	£	£
Net obligations under finance lease and hire purchase contracts	49,146	49,146
Trade creditors	54,748	47,192
Corporation tax	8,360	112,077
Other taxes and social security	16,240	13,365
VAT	97,972	86,367
Other creditors	86,454	77,486
Accruals and deferred income	90,368	90,811
Directors' loan accounts	163,248	234,983

	566,536	711,427

9. Creditors: Amounts Falling Due After More Than One Year

	2026	2025
	£	£
Net obligations under finance lease and hire purchase contracts	150,122	200,232

10. Secured Creditors

Of the creditors the following amounts are secured.

	2026		2025
	£		£
Net obligations under finance lease and hire purchase contracts	199,268		249,378

11. Obligations Under Finance Leases and Hire Purchase

	2026	2025
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	49,146	49,146
Later than one year and not later than five years	150,122	200,232

	199,268	249,378

	199,268	249,378

Page 6

Page 7

Erc Accountants & Business Advisers Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

12. Share Capital

	2026	2025
	£	£
Allotted, Called up and fully paid	100	100

13. Directors Advances, Credits and Guarantees

No director received advances, credits or guarantees during the current or previous accounting periods.

14. Dividends

	2026	2025
	£	£
On equity shares:
Final dividend paid	69,000	80,151

15. Related Party Transactions

The following related party transactions were undertaken during the year:

The directors were owed £163,248 (2025: £234,982) as at the reporting date.

No further transactions with related parties were undertaken such as are required to be disclosed in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Page 7

		2026		2025
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		1,588,551		1,588,551
Tangible Assets	5		927,685		995,613

			2,516,236		2,584,164
CURRENT ASSETS
Stocks	6	94,603		84,564
Debtors	7	401,358		408,459
Cash at bank and in hand		258,288		375,753

		754,249		868,776
Creditors: Amounts Falling Due Within One Year	8	(566,536 )		(711,427 )

NET CURRENT ASSETS (LIABILITIES)			187,713		157,349

TOTAL ASSETS LESS CURRENT LIABILITIES			2,703,949		2,741,513

Creditors: Amounts Falling Due After More Than One Year	9		(150,122 )		(200,232 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(31,960 )		(44,425 )

NET ASSETS			2,521,867		2,496,856

CAPITAL AND RESERVES
Called up share capital	12		100		100
Income Statement			2,521,767		2,496,756

SHAREHOLDERS' FUNDS			2,521,867		2,496,856