The Directors present the strategic report for the year ended 31 March 2026 for Kane Group Building Services Ltd, herein referred to as "the Company".

This year has seen some stabilization in the market in terms of material prices. Labour costs and available skills remain a challenge. The market remains slow in terms of new residential construction activity, largely due to mandatory changes being implemented through the new Building Safety Act 2022 (BSA).

We continue to benefit from our strategy of diversifying into new sectors and remain committed to expanding our presence across these markets. Our core strengths in design, offsite manufacturing, and the delivery of high-quality installations have enabled us to achieve continued success with both existing and new clients.

In March 2026, we achieved our strategic revenue target of £100 million, a significant milestone established as part of our 2019 strategic plan. This achievement reflects the successful execution of our growth strategy, underpinned by a sustained focus on health and safety, quality, and operational excellence.

During the year, we also continued to strengthen our in-house design capabilities and increase the adoption of digital technologies across the business, enhancing collaboration, efficiency, and project delivery. In addition, we expanded our offsite manufacturing capacity, supporting improved productivity, quality, and scalability to meet future client demand.

The construction industry has continued to experience a number of insolvencies during the year, highlighting the importance of maintaining a selective and considered approach to client engagement. While insolvency risk remains an inherent feature of the sector, we have continued to manage our exposure through careful assessment of both clients and supply chain partners. The interconnected nature of the industry can make indirect risk exposure difficult to identify; however, ongoing monitoring and strong relationship management help us to mitigate potential impacts and maintain resilience.

We have developed our Strategy for Growth for delivery through to 2030, which will provide a clear guidance on the allocation of company resources and investment. Our Strategy is built around three key pillars:

• People – developing, supporting and retaining a highly skilled workforce while fostering a positive, safe and inclusive working culture.

• Technology – embracing innovation and digital solutions to improve efficiency, collaboration and project outcomes.

• Facilities – investing in our operational infrastructure and working environments to support future growth and enhance capability.

Through our Strategy for Growth, we aim to further enhance the quality of our working environment for our people, while continuing to improve the quality, value and consistency of the solutions delivered to our clients.

This investment will ensure the business remains well positioned for sustainable long-term growth and continued operational excellence. We understand that our people are our greatest asset and will continue to invest in training to improve the quality of our leadership team and the performance of our overall team through our Learning & Development programme.

Operational performance

We continue to grow and invest in our Operational teams, adding new personnel and maintaining our focus on training across the team. We understand that investment here will provide an educated and engaged workforce capable of delivering projects with increasing complexity for the years ahead.

Our Quality Management remains a focus, by increasing the frequency of site audits and developing a Lessons Learnt procedure internally to ensure we continue to focus on improving our performance.

Facilities Management is a new service we provide, and we can see great potential as a growth sector for the Business. It will ensure our clients can enjoy a complete service from building concept to completion and operation.

Digital Expertise

We recognise the significant benefits that digital technology can deliver across all areas of the business and remain committed to embracing innovative solutions that enhance quality, efficiency and decision-making. We will continue to invest in leading software platforms and applications to support operational excellence and drive continuous improvement.

During the year, we have seen tangible benefits from the implementation of our new ERP system, which has improved access to real-time business data and enhanced visibility, control and reporting across the organisation. This strengthened insight supports more informed decision-making and enables greater operational agility.

We have also begun our journey to integrate and maximise the potential of Artificial Intelligence (AI) within the business. While our approach remains measured and responsible, we are already exploring opportunities to improve productivity, streamline processes and support innovation, whilst ensuring that appropriate governance and risk management frameworks are in place.

Our company’s operations expose it to a variety of financial risks that include price risk, credit risk, liquidity risk and interest rate risk. Our company has in place a risk management program that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs. Given the size of the company, the Directors have assumed responsibility for the monitoring of financial risk management.

Our company has no exposure to equity securities price risk as it holds no listed equity investments.

Credit risk

Our company is exposed to credit risk due to its policy of giving credit to customers. In these instances, the company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the Directors.

Liquidity risk

Our company maintains appropriate funding levels relative to the level of current and future requirements. Cashflow forecasts are prepared and are closely monitored. Having performed detailed analysis, we consider the degree of headroom within our current facilities to be adequate.

Operational risk

Our company recognises the risks involved in the various stages of project completion. Budgets are prepared for all projects prior to commencement with detailed planning performed in advanced to support planned onsite and offsite operations. Budgets are reviewed on an ongoing basis.

Interest rate cash flow risk

Our company has interest bearing liabilities. The company has a policy of monitoring its debt finance to ensure certainty of future interest cash flows. The Directors will revisit this policy should the company's operations change in size or nature or otherwise be deemed necessary.

Compliance risk

Our Company notes that this risk arises from the increasingly complex landscape of regulatory standards, including safety regulations, environmental directives, and international trade laws. Failure to adhere can result in operational disruptions, financial penalties, and reputational damage. We have strategic monitoring of evolving legislation implemented. This alongside ongoing internal audits, and the implementation of robust compliance management systems are essential to mitigate these risks, ensuring operational continuity.

The Directors have included a summary below of the necessary key performance indicators for the understanding of the development, performance or position of the business.

Health and Safety

Health and Safety remains the Company’s foremost priority and is embedded throughout all levels of the organisation. We continue to strengthen our health and safety culture through increased awareness, rigorous performance monitoring, and the targeted deployment of resources to areas of greatest need.

Our commitment to continuous improvement has been recognised through a number of significant industry achievements, including the attainment and maintenance of a perfect score audit under the Considerate Constructors Scheme, receipt of the Contractor Health & Safety Award for Overall Health and Safety Performance in January 2026, and being named Contractor of the Year at the BESA Industry Awards 2025. These accolades reflect the effectiveness of our health and safety management framework and the dedication of our people across the business to maintaining the highest standards.

As the business continues to grow, we remain committed to ensuring that health and safety performance is sustained and enhanced in line with our expanding operations.

Wellbeing

The Company remains committed to fostering a culture that places employee wellbeing at the heart of its operations, recognising the importance of supporting both the physical and mental health of its workforce. To reinforce this commitment, a dedicated Wellbeing Committee has been established to promote wellbeing initiatives, encourage employee engagement, and provide support in addressing the challenges that can impact individuals both within and beyond the workplace.

As part of our ongoing investment in employee wellbeing, we have introduced state-of-the-art gym facilities at our offices, providing employees with access to resources that encourage healthier lifestyles and support overall wellbeing. In addition, the Company has trained a network of Mental Health First Aiders and regularly delivers mental health awareness seminars, ensuring employees have access to both guidance and support when needed.

These initiatives form part of a broader commitment to creating a positive, inclusive and supportive working environment. Respect remains one of the Company’s core values, and we take pride in fostering a workplace culture where every employee is treated with dignity, fairness and consideration. By investing in the wellbeing of our people, we aim to enhance engagement, strengthen performance and support the long-term success of both our employees and the business.

Our People

Our people are the Company’s most valuable asset, and their knowledge, skills and experience are fundamental to delivering exceptional outcomes for our customers. Attracting, developing and retaining talented individuals remains a key strategic priority, recognising the critical role our people play in the continued success and growth of the business.We are committed to investing in the ongoing development of our workforce through a comprehensive Learning and Development programme, providing employees with the training, support and opportunities required to achieve their full potential. This investment not only strengthens individual capabilities but also enhances the overall resilience and performance of the organisation.

Developing future talent remains an important element of our long-term strategy. We continue to recruit and support apprentices and Higher Level Apprentices (HLAs) across the business, creating opportunities for young people to build successful careers while ensuring a strong pipeline of skills and future leaders. Through this commitment to learning, development and succession planning, we are well positioned to meet the evolving needs of our customers and support the sustainable growth of the business.

Our company continues to push the boundaries on conventional construction methods. Our increased investment in design enables us to develop, integrate and operate better quality, more environmentally friendly, safer and more efficient methods of delivering M&E projects.

As part of our commitment to innovation and long-term growth, the Company has invested in the development of a new state-of-the-art offsite manufacturing facility. The project, which is scheduled for completion in July 2026, represents a significant strategic investment in our operational capabilities.

The expanded facility will substantially increase our offsite manufacturing capacity, enabling us to meet growing client demand for our innovative solutions while further enhancing efficiency, quality and scalability. This investment will strengthen our ability to deliver complex projects, support future growth opportunities and reinforce our position as a leader in offsite construction and engineering solutions.

Section 172 of The Companies Act 2006 states that a Director of a company must act in the way the Director considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole. In doing so a Director of a company must have regard (amongst other matters) to:-

1. The likely consequences of any decision in the long term,

2. The interest of the company’s employees,

3. The need to foster the company’s business relationships with suppliers, customers and others,

4. The impact of the company’s operations on the community and the environment,

5. The desirability of the company maintaining a reputation for high standards of business conduct;

6. The need to act fairly between members of the company.

Decision making

The Directors fulfil their duties to act in good faith to promote the success of the company through the implementation of the Kane Group 1, 3 and 10-year plans and strategies. As part of the strategy the Directors aim to actively shape the future services and products we offer.

The company strategy allows us to be competitive, flexible and resilient while also responding to a rapidly changing marketplace which has proven to be a critical requirement over the past two years.

Employee engagement

We believe that every employee should be treated with the same respect and dignity. All judgements about people for the purposes of recruitment, hiring, compensation, development and promotion are made solely on the basis of a person's ability, experience, behaviour, work performance and demonstrated potential. As part of this, we are committed to complying with the provisions of the Disability Discrimination Act 1995, and judgements on recruitment, development and promotion are made solely on ability and potential, taking into account only matters relevant to the performance of the role.

Our company recognises that its employees are crucial to its success and is committed to creating a working environment where everyone has the opportunity to learn, develop and contribute to the success of the company, working within a common set of values.

Our company strives to be an employer of choice and to employ a diverse workforce with the skills, abilities, and attitudes to meet business goals and objectives. The company's aim is to create an environment in which aII people are valued and can be successful at work.

Supplier engagement

The Directors have implemented a clear business approach with an established procurement and supply chain function which facilitates regular contact and provides continuous professional development opportunities for the company's core supply chain.

The company aims to treat its supply chain partner fairly, pay them within agreed timescales and closely monitors supply chain partner payment practices and performance. The Company undertakes regular assessments of the financial stability and creditworthiness of key suppliers and subcontractors to mitigate supply chain risks and support the successful delivery of ongoing projects. In addition, the Company maintains formal supply chain agreements with many of its principal suppliers and subcontractor partners, underpinned by long-standing and well-established relationships developed over many years of collaboration.

The company works with its supply chain partners to ensure that they have effective controls in place to protect its client's health and safety and the security and privacy of their data.

Business relationships

The Directors do access a wide group of stakeholders, including customers, suppliers, regulators, and employees to inform and enable a balanced decision that incorporates multiple viewpoints, whilst maintaining the company's overall strategies.

The Directors fully understand the important role each of these stakeholders play within the environment in which Kane Group operates and we endeavour to fully take on board these views when considering the future direction.

Community and environment

The Company remains committed to continuously reviewing and improving its sustainability performance and environmental impact. We actively invest in modern technologies and processes that enhance operational efficiency, reduce energy consumption and support more sustainable ways of working across the business.

Effective waste management and recycling practices are embedded throughout our operations, with established processes in place to maximise the recycling of consumable materials. We also regularly review our waste streams to identify opportunities for further reduction, reuse and recovery, supporting our commitment to responsible resource management and continuous environmental improvement.

Beyond our environmental responsibilities, we recognise the importance of making a positive contribution to the communities in which we operate. Each year, the Company selects a dedicated charity partner and organises a range of fundraising initiatives that encourage employee participation and raise valuable funds for worthwhile causes. We also provide ongoing support to local community and sporting organisations, recognising the important role they play in promoting wellbeing, inclusion and community development.

Through these environmental and community-focused initiatives, we aim to create lasting value for our stakeholders while supporting a more sustainable and socially responsible future.

Culture and values

We have recently undertaken a company wide refresh of our Vision, Mission and Values to ensure that while we expand in line with our Business Strategy, we remain aligned with our Vision for the future and focused on the values which have developed such a strong Culture within the business.

Following Company wide engagement and discussion, we believe 4 core values best represent how we conduct ourselves as a team.

• Respect

• Ownership

• Courage

• One Team

We ensure our values become embedded into all that we do as a business.

On behalf of the board

The Directors present their annual report and financial statements for the year ended 31 March 2026.

The principal activity of the company continued to be that of mechanical and electrical services contractors.

The results for the year are set out on page 14.

Ordinary dividends were paid amounting to £6,200,000. The directors do not recommend payment of a further dividend.

The Directors who held office during the year and up to the date of signature of the financial statements were as follows:

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

There have been no significant events affecting the company since the year end.  The Directors believe there are no material uncertainties that may cast significant doubt on the companies abilities to continue as a going concern.

The auditor, Moore (N.I.) LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Streamlined Energy and Carbon Reporting

We are focused on reducing our environmental impact with the commitment to achieving Net Zero by 2050. The Company’s energy and carbon data presented below relates to year ended 31 March 2026, in line with the ‘Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance’.

The figures above cover all Scope 1 & 2 emissions in addition to Scope 3 emissions associated with waste generated in operations and business travel.

Methodology Used

This report was produced in accordance with ‘GHG Reporting Protocol - Corporate Standard’ methodology. The UK Government Conversion Factors for Greenhouse Gas (GHG) reporting for years 2024 and 2025 have been used in the production of the figures presented above.

Energy Efficiency Action Taken

The following energy saving initiatives have been implemented during this reporting year:

• Microsoft teams meetings encouraged where possible to minimise travel.

• Operation & Maintenance Engineer ongoing improvement projects for energy and plant efficiency at our Head Office.

• Compliance with waste regulations and recycling promotion throughout company operations.

• Continued integration of electric vehicles into our fleet.

• LED light fittings and occupancy sensors installed in offices. Energy usage monitored monthly. Standby modes enabled for office equipment.

• Warner St (London Office) – energy efficiency rating now “A” - up from “E” - after fitout upgrading insulation, windows, air con, heating and lighting

• Dismantling of non-energy efficient paint spraying shed and store at Head Office to create a new purpose-built paint spraying booth with specialist ventilation / a sand blasting shed where sand will be recycled and re-used / an x-ray welding booth

• New energy efficient Offsite welfare facilities built to include Canteen, WCs, Showers, Changing rooms, Drying room

• End of life Gas heating boilers to be replaced asap with renewable energy source – Air source heat pumps

• 1 No. Diesel forklift replaced with electric forklift at Head Office and another electric one to be purchased later this year for warehouse

The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice including FRS 102 (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the Directors required to:

• select suitable accounting policies 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 company 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a Director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the Directors individually have taken all the necessary steps that they ought to have taken as Directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of Kane Group Building Services Ltd (the 'company') for the year ended 31 March 2026 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 March 2026 and of its profit for the year 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the Directors' report.

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

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

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

• certain disclosures of Directors' remuneration specified by law are not made; or

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

As explained more fully in the Directors' responsibilities statement, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

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

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

• We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.

• Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims.

• Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business on ISA 700 A39-1 to A39-5.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.

• Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

The 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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

There is no other comprehensive income and notes on pages 18 to 32 form part of these financial statements.

Kane Group Building Services Ltd is a private company limited by shares incorporated in Northern Ireland. The registered office is Unit 18-19, Scarva Industrial Estate, Banbridge, BT32 3QD.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Atruet the time of approving the financial statements, the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus Directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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 credited or charged to profit or loss.

The directors reviewed the depreciation method applied to the tangible assets during the year and determined that a straight-line basis more accurately reflects the pattern of consumption of the assets' economic benefits than the reducing balance method previously adopted.

The change has been accounted for prospectively as a change in accounting estimate in accordance with FRS 102. Comparatives have not been restated.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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 (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Work in progress is measured on a project by project basis as cost of work completed less previously invoiced. Sales retentions outstanding on projects are also included within work in progress.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company 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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Warranty provisions

The company provides warranties at the time of sale to the purchasers of its products or services. Under the terms of the contract for sale the manufacturer undertakes to make good, by repair or replacement, manufacturing defects that become apparent within a certain time limit from the date of sale as per the contract. On past experience, it is probable that there will be some claims under the warranties.

A provision is recognised for the best estimate of the costs of making good under the warranty products sold before the balance sheet date. Because warranty estimates are forecasts that are based on the best available information, mostly historical claims experience, claims may differ from amounts provided.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution pension plan are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

An analysis of the company's turnover is as follows:

Grant income represents income received in relation to Invest N.I Skills for Growth.

The average monthly number of persons (including Directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Other provisions relates to the present obligation to meet warranty costs for past sales and is calculated based on managements' experience and best estimates.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The net deferred tax liability expected to reverse in 12 months is £12,917. This primarily relates to the reversal of tax timing differences on capital allowances.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The ordinary shares entitle the shareholders to:

• full voting rights;

• full rights to participate in dividends, as voted; and

• full rights to participate in a distribution including in a winding up situation.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

There have been no significant events affecting the company since the year end.

As the company is a wholly owned subsidiary and consolidated financial statements have been prepared for the group which are publicly available, the company is exempt from the requirements of FRS 102 Section 33 Related Party Disclosures paragraph 33.11 to disclose transactions with other members of the group which are party to the transaction.

There are no transactions with Directors or senior management which require disclosure.

The immediate parent company is Bann Commercial NI Limited, a company incorporated in Northern Ireland. Registered address: Unit 18-19 Scarva Road Industrial Estate, Scarva Road, Banbridge, Northern Ireland, BT32 3QD.

The ultimate parent company and controlling party is MCMU Holdings Limited.

Consolidated financial statements for the group are publicly available and copies may be obtained from the registered office of MCMU Holdings Limited, Unit 18-19 Scarva Road Industrial Estate, Banbridge, BT32 3QD

The parent undertaking of the smallest and largest group of which this company is a member, and for which consolidated financial statements are prepared is MCMU Holdings Limited, a company incorporated in Northern Ireland.

The results and business review of MCMU Holdings Limited and subsidiaries are included in the financial statements of MCMU Holdings Limited, which are publicly available at Companies House, Crown Way, Cardiff.