REGISTERED NUMBER: 05519367 (England and Wales)

Recarta IT Limited

Strategic Report, Report of the Directors and

Unaudited Financial Statements for the Year Ended 5 April 2026

Page

Company Information

1

Strategic Report

2

Report of the Directors

9

Chartered Accountants' Report

10

Income Statement

11

Balance Sheet

12

Notes to the Financial Statements

14

DIRECTORS:

Mr D P Bland

Mr T P Harris

SECRETARY:

Mrs S L Bland

REGISTERED OFFICE:

Units 3 & 4

Dunley Hill Court

Ranmore Common

Dorking

Surrey

RH5 6SX

REGISTERED NUMBER:

05519367 (England and Wales)

ACCOUNTANTS:

Swindells LLP

Chartered Accountants

Atlantic House

8 Bell Lane

Bellbrook Industrial Estate

Uckfield

East Sussex

TN22 1QL

The directors present their strategic report for the year ended 5 April 2026.

PRINCIPAL ACTIVITY

The principal activity of Recarta IT Limited is the design, build and run of mission critical IT infrastructure and applications. Since 2015, our managed services business specialises in hybrid and private cloud-based solutions, alongside a focus on the operation of complex IBM Enterprise IT platforms, data protection and cyber security. For the clients who wish to remain in control of their hardware, we are responsible for the architecture, supply, implementation and migration of their enterprise systems and infrastructure.

Recarta IT's support and licensing team currently manages over 850 contracts across 50+ vendors and delivers compliance services such as Software Asset Management for clients that are using Tier 1 Vendor software such as Oracle, IBM, and Microsoft.

Recarta has the recognised standard of ISO 27001:2022 and Cyber Essentials Plus. We are currently undergoing certification to ISO 22301, which is the international standard for Business Continuity Management Systems (BCMS).

Alongside this we operate from three Tier 3 ISO 27001-compliant data centres with cross-connects and multiple network and power connectivity routes.

These accreditations sit alongside our experienced and highly skilled technical teams, which provide our clients with the trust required around our data security controls, quality assurance and our capabilities around IT security.

THE MARKET

During 2025/26, clients continued to balance the need for modernisation and stronger cyber resilience against cost pressures and uncertainty in technology supply chains. Due to the overwhelming purchasing power of the AI companies, lead times for many vendors have been extended considerably and this has led to project delays. Due to the increased costs associated with hardware, this has discouraged clients from refreshing and encouraged them to consider cloud or hosted alternatives as an interim or strategic solution.

Over the past few years a large part of the marketplace has been looking to move away from on-premises IT hardware towards major public cloud providers such as AWS and Azure. However, more commonly, not all applications are suited for public cloud, and the large cost of public cloud services has led many organisations to reconsider their strategy and review workload placement with a view to bringing selected applications to on-premises, private cloud or more tightly controlled hybrid environments.

Changes in software vendor licensing models and pricing have greatly affected the marketplace over the past 12 months. Broadcom's recent purchase of VMware has left many clients with large licensing costs and the potential to be locked in for 3 years. They are not alone as we have seen the influence of "software vendor muscle" across several vendors and in turn clients have been looking to migrate away from these vendors. The marketplace will reward those customers who remain agile and not locked into long-term vendor arrangements. Migration to new platforms provides risk and uncertainty and clients require clear advice on commercial implications, platform lifecycles and practical migration routes, and Recarta is well placed to support those decisions.

Consolidation among technology vendors and channel partners continued during the year. Customers increasingly sought fewer, more capable strategic suppliers able to coordinate infrastructure, cloud, licensing, security and managed services. Recarta's broad technical capability and established vendor relationships support this requirement.

IBM remains at the heart of Recarta's solutions and services. This year we have seen IBM increase its marketing around hosted IBM, via IBM PowerVS Cloud. Recarta has spent considerable time training on these platforms to make sure that we can help clients evaluate IBM Cloud, Recarta IBM Cloud, on-premises and hybrid options against their operational, regulatory and financial requirements.

Recarta remains well positioned in this hybrid market. The Company continues to invest in technical resources, data-centre capacity, cyber security, AI, networking and vendor capability, while working with selected partners where specialist expertise adds value.

Demand from larger clients remained focused on security, resilience, AI/automation and the modernisation of critical platforms. These priorities continue to generate opportunities across our managed services, infrastructure, professional services and licensing divisions.

IBM remains an important part of Recarta's technology offering. The launch of IBM Power11, together with the continued reduction in specialist IBM skills in the market, presents opportunities for platform modernisation, managed support and consultancy. Customers increasingly value agile and responsive partners such as Recarta that can improve and adapt critical platforms over time.

REVIEW OF THE BUSINESS

Recarta continued to grow and develop its managed services, infrastructure, professional services, software, support and licensing activities during the year ended 5th April 2026. The business remained focused on recurring revenues, service quality and disciplined investment in the capabilities required by clients.

FINANCIAL PERFORMANCE

Revenue grew by a total of 6% for the period of April 25 to April 2026 to record sales of over £18M. However, both gross margin and our final net profit were down on the previous year. This was due to rising overheads and large non-repeatable revenue in 2024/25. However, Recarta continued to generate revenue across all areas of the business, from our fast-growing managed services through to infrastructure supply, professional services, software and maintenance support services.

Most importantly for the stability of the company, recurring revenue now accounts for over 73% of our total revenue. Our managed service offerings continue to compete well in the marketplace - attracting not only new clients but also clients from our competitors. Recarta has always worked closely with many partners such as ISVs and Systems Integrators - to provide its services - and many new relationships have been created over the past 12 months.

Whilst IBM is still very much the heartbeat of the business, we are also growing with non-IBM workloads and building out our Azure Local capability. Alongside this, we have made considerable investment in the managed services infrastructure to ensure we are offering our clients a stable, supported and secure footing.

Managed services remain central to the Company's strategy, supported by the demand for private and hybrid cloud, cyber resilience and the management of IBM and other enterprise-critical workloads. Recarta has continued to develop the depth and breadth of our service desk and technical consultancy teams to support larger and more complex client requirements.

During 2025/26, Recarta invested in networking and firewall technology to strengthen security across all data centres. This formed part of the Company's continuing programme of investment in data-centre infrastructure, resilience and operational control. The business now holds a 1,000-day plan across its three data centres, ensuring that all equipment is well managed, compliant and incorporating vendor support when possible.

The architecture and supply of infrastructure and software remained at around 20% of our revenue and is an important part of Recarta's overall offering whilst also driving professional services. Supply chain and lead-time issues have affected the scheduling of many projects over the past 6 months of the year which has delayed revenue from being realised in this financial year. The increase in infrastructure costs and the current long lead times are driving clients towards the consideration of hosted or cloud alternatives.

Professional services activity continued to support infrastructure, migration, security and platform-modernisation programmes. The Company's project management and specialist consultancy capabilities remain an important differentiator in delivering complex client change. Last year Recarta carried out over 1,500 days/11,250 hours of client services. Whilst much of this was direct - some of the specialist projects were carried out at a much lower gross margin utilising partners. This has shown that clients are keen for Recarta to provide a wider scope of services through its own trusted partnerships.

The support, maintenance and licensing business continued to provide clients with proactive renewal management across a broad vendor portfolio. Vendor consolidation and changing licensing policies increased the importance of independent commercial and technical advice. Our software and hardware asset management services continue to be well received by clients looking to cut costs and reduce their supplier network.

Recarta's long-standing focus on recurring and annuity-based revenues continues to provide a stable foundation for the business and supports continued investment through changing market conditions.

The implementation of a new HR system has been a successful investment and has been well received across the business. It has reduced the amount of paperwork, streamlined policies and review processes. The Company also moved to a new accounting system, reducing manual processes and creating further opportunities for automation. Upgrades to expenses and time-management processes are planned for this coming year to build on these benefits.

Growth in the scale and complexity of the business has increased the level of audit and assurance activity. Recarta continues to strengthen its governance, evidence and control framework to meet client, certification and statutory requirements.

LOOKING AHEAD

Recarta enters 2026/27 with a clear focus on secure growth, operational resilience and the continued development of its managed services platform. The Company will maintain a disciplined approach to investment while remaining responsive to changes in customer demand, vendor strategy and technology economics.

A major priority for 2026/27 will be the next phase of Recarta's data-centre and managed services strategy. The Company's 1,000-day data-centre plan will require continued investment in infrastructure, networking, security, capacity and resilience to support and maintain future client requirements. Our managed services pipeline is in good health for the coming year - and with changes to our marketing, messaging and delivery of services - we are confident of this growing considerably over the next 3 years.

The Company remains committed to achieving ISO 22301 certification, in addition to our ISO 27001 and Cyber Essentials Plus. This programme will further formalise business continuity management, improve organisational resilience and provide additional assurance to clients whose operations depend on Recarta's services.

The new accounts and HR systems provide a stronger operational platform for the next stage of growth. During 2026/27, Recarta will continue to extend AI across finance, expenses, time recording and management information, reducing manual effort and improving the quality and timeliness of information.

One growing area is that of building our cloud cost-optimisation and workload-assessment skills, so that clients can make informed decisions between public cloud, private cloud and on-premises deployment. We still see many clients encouraged by the agility of public cloud, only to realise that the workloads may not be suited and that costs are prohibitive.

Alongside our IBM specialism, we are also seeing opportunities from clients who are looking for alternatives to VMware since its acquisition by Broadcom. We are working closely with our vendors and service partners to be able to offer Azure Local and Cloud and also Nutanix as excellent alternatives. We will continue to build this pipeline over the next 12 months.

Despite continuing uncertainty in supply chains, vendor strategies and client investment cycles, the Board believes Recarta's recurring revenues, specialist skills, strong vendor relationships and continued infrastructure investment provide a sound basis for sustainable growth.

Demand for dependable, secure and cost-effective IT services remains strong. Clients need partners that can simplify increasingly complex technology choices, maintain critical platforms and demonstrate continual improvement in reliability, resilience and security.

The Board believes that Recarta is well equipped to compete and grow in this environment. Its strategy remains centred on trusted client relationships, technical excellence, recurring services and prudent investment in the people, systems and infrastructure required for the future.

ON BEHALF OF THE BOARD:

Mr D P Bland - Director

7 October 2026

The directors present their report with the financial statements of the company for the year ended 5 April 2026.

DIRECTORS

The directors shown below have held office during the whole of the period from 6 April 2025 to the date of this report.

Mr D P Bland

Mr T P Harris

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

Mr D P Bland - Director

7 October 2026

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Recarta IT Limited for the year ended 5 April 2026 which comprise the Income Statement, Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Recarta IT Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Recarta IT Limited and state those matters that we have agreed to state to the Board of Directors of Recarta IT Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Recarta IT Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Recarta IT Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Recarta IT Limited. You consider that Recarta IT Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Recarta IT Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Swindells LLP

Chartered Accountants

Atlantic House

8 Bell Lane

Bellbrook Industrial Estate

Uckfield

East Sussex

TN22 1QL

14 October 2026

TURNOVER

18,058,262

17,075,144

Cost of sales

11,479,811

10,114,212

GROSS PROFIT

6,578,451

6,960,932

Administrative expenses

5,607,141

5,252,451

971,310

1,708,481

Other operating income

53,051

23,440

OPERATING PROFIT

4

1,024,361

1,731,921

Interest receivable and similar income

34,983

17,256

1,059,344

1,749,177

Interest payable and similar expenses

5,083

3,381

PROFIT BEFORE TAXATION

1,054,261

1,745,796

Tax on profit

315,943

421,613

PROFIT FOR THE FINANCIAL YEAR

738,318

1,324,183

FIXED ASSETS

Intangible assets

5

322

1,093

Tangible assets

6

817,800

854,526

Investments

7

467,744

579,031

1,285,866

1,434,650

CURRENT ASSETS

Stocks

17,587

15,557

Debtors

8

6,390,314

3,446,179

Cash at bank

898,650

1,505,526

7,306,551

4,967,262

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

9

6,630,574

4,500,349

NET CURRENT ASSETS

675,977

466,913

TOTAL ASSETS LESS CURRENT LIABILITIES

1,961,843

1,901,563

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

10

(25,467

)

(81,487

)

PROVISIONS FOR LIABILITIES

(172,576

)

(200,094

)

NET ASSETS

1,763,800

1,619,982

CAPITAL AND RESERVES

Called up share capital

12

1,000

1,000

Retained earnings

1,762,800

1,618,982

SHAREHOLDERS' FUNDS

1,763,800

1,619,982

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 5 April 2026.

The members have not required the company to obtain an audit of its financial statements for the year ended 5 April 2026 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 7 October 2026 and were signed on its behalf by:

Mr D P Bland - Director

1.	STATUTORY INFORMATION

Recarta IT Limited 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements

The financial statements contain information about Recarta IT Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Revenue recognition

Turnover represents revenue, net of VAT, from commercial transactions under which the company supplies customers the goods and services that it is in business to provide and it is recognised when it obtains, through performance under contract, the right to consideration for those goods and services.

Revenue from service contracts is recognised over the term of the contract.

Revenue from goods is recognised upon the unconditional sale of the goods.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

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

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

at varying rates on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less any provision for impairment.

Stocks

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

Taxation

Taxation for the year 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 year 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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company contributes to employees' defined contribution pension schemes. Contributions payable to the pension schemes are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 42 (2025 - 37 ) .

4.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1.4.24

Year Ended

to

5.4.26

5.4.25

£

£

Depreciation - owned assets

382,976

354,145

Intangible assets amortisation

771

771

5.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 6 April 2025

and 5 April 2026

3,856

AMORTISATION

At 6 April 2025

2,763

Charge for year

771

At 5 April 2026

3,534

NET BOOK VALUE

At 5 April 2026

322

At 5 April 2025

1,093

6.	TANGIBLE FIXED ASSETS

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST

At 6 April 2025

43,841

346,352

1,191,452

1,581,645

Additions

1,554

211,304

134,811

347,669

Disposals

-

(46,890

)

(51,483

)

(98,373

)

At 5 April 2026

45,395

510,766

1,274,780

1,830,941

DEPRECIATION

At 6 April 2025

36,328

185,862

504,929

727,119

Charge for year

3,166

67,593

312,217

382,976

Eliminated on disposal

-

(46,890

)

(50,064

)

(96,954

)

At 5 April 2026

39,494

206,565

767,082

1,013,141

NET BOOK VALUE

At 5 April 2026

5,901

304,201

507,698

817,800

At 5 April 2025

7,513

160,490

686,523

854,526

7.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 6 April 2025

579,031

Impairments

(111,287

)

At 5 April 2026

467,744

NET BOOK VALUE

At 5 April 2026

467,744

At 5 April 2025

579,031

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2025

£

£

Trade debtors

5,265,614

2,506,605

Other debtors

1,124,700

939,574

6,390,314

3,446,179

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2025

£

£

Bank loans and overdrafts

-

55,794

Trade creditors

1,708,819

1,125,250

Amounts owed to group undertakings

240,580

240,580

Taxation and social security

1,074,449

660,566

Other creditors

3,606,726

2,418,159

6,630,574

4,500,349

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2026

2025

£

£

Bank loans

-

81,487

Other creditors

25,467

-

25,467

81,487

11.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2026

2025

£

£

Within one year

28,933

38,559

Between one and five years

5,831

36,716

34,764

75,275

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2026

2025

value:

£

£

1,000

Ordinary

£1

1,000

1,000

13.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the year ended 5 April 2026 and the period ended 5 April 2025:

2026

2025

£

£

Mr D P Bland

Balance outstanding at start of year

125,352

268,252

Amounts advanced

613,514

63,543

Amounts repaid

(509,794

)

(206,443

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

229,072

125,352

Mr T P Harris

Balance outstanding at start of year

57,839

46,955

Amounts advanced

170,240

41,347

Amounts repaid

(118,900

)

(30,463

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

109,179

57,839

These loans are unsecured and repayable on demand. Interest is charged at HMRC's official rate of interest.

14.	RELATED PARTY DISCLOSURES

At the balance sheet date, the company owed Mobius Business Technologies Limited amounts totalling £240,578 (2025: £240,578). This loan is unsecured, interest free and repayable on demand.