The director presents the strategic report for the year ended 31 January 2026.
APS Group is an international marketing services business providing solutions to leading brands in both the private and public sectors. Our proposition is built around our purpose to make more possible for our clients every day. We are proud to serve some of the world’s most forward-thinking brands and businesses across a wide range of sectors including government, retail, automotive, charity and financial services. Delivering award winning work through our global team of over 1,000 creatives, thinkers, managers, makers and subject matter experts.
Our customer solutions are underpinned by a broad range of services delivered through three core service lines across all our regions, supported by great people, enabling technology and significant infrastructure. We differentiate in the marketplace by our ability to integrate services and solutions which reduce complexity, deliver efficiencies, reduce lead times and maximise return for our customers.
Our core service lines are:
Creative & Content
Providing end-to-end creative services, APS delivers strategic and visually compelling content through:
Research, Insight & Strategy
Creative Ideation, Art Direction, and Photography
Copywriting, Proofreading, and Accessibility
Motion & Animation, Illustration, and Artwork Production
Web/App Development and Digital Marketing (SEO/PPC)
Customer Communications
Specialising in printed and digital communication, this pillar enhances customer engagement via:
Transactional Print and Direct Mail
Premiums, Giveaways, and Loyalty Management
Digital Engagement and Technology Innovation
Accessibility and Cross-Channel Communication Solutions
Retail & Brand Services
Focusing on immersive brand experiences and operational execution, services include:
Events, Promotions, and Experiential Retail
Retail Environments and Display Fixtures
Programme Management and Strategic Planning
Design, Prototyping, Production, and Implementation
The core values of the group remain:
Great People
Our commitment to hiring and nurturing top talent drives exceptional service delivery.
Operational Excellence
Lean Six Sigma-driven processes ensure consistent, timely, and cost-effective project execution.
Enabling Technology
Cloud-based tools streamline production and reporting, with a focus on data-driven decision-making.
Integral Sustainability
Every solution is underpinned by sustainability, with innovations such as EcoVadis and tailored client solutions.
APS operates on a global basis working collaboratively through a combination of APS sites and client on-site locations in 14 countries with localised teams capable of deploying global strategies for brands across a wide range of sectors.
Over the past 12 months the group has continued to operate in a challenging environment as the economy emerges from stagnation with continued supply chain pressure as well as significant political uncertainty. APS has continued to experience soft underlying customer spend consistent with the last few years. Against this background the leadership team is again proud to have achieved a solid year of progress at APS. Overall performance has broadly been maintained whilst, at the same time, APS has continued to make significant investments in core technology, new client wins and the expansion of secure communications, luxury packaging, retail display and branded merchandise service lines.
In this financial year our investments have increased the Group’s ability to deliver integrated end-to-end services as a trusted partner to customers and as a result has secured a significant number of new contracts which provides a solid based for the coming 12 months.
We look forward to a successful 2026-27 and the continued evolution of the business as we explore new growth opportunities and strategic partnerships globally.
This year we’ve continued to focus on innovation developing cloud and AI led platforms to increase our agility, reduce costs, drive revenue growth and create brilliant digital first customer experiences. As part of our technology overhaul, we have now completed a move to a cloud-based infrastructure reducing upfront costs whilst enhancing our ability to manage IT resources securely and globally.
Reported revenue was £212m up 2% (prior year: £208m).Gross profit was £56.7m which was down by 6.6% (prior year: £60.7m). Margins continued to be squeezed in the sector resulting in the gross margin percentage in the year reducing from 29.2% to 26.7%
Overhead cost control was a focus during the year which resulted in the effect of this margin reduction being partially offset as it flowed through to the bottom line On this basis, Operating profit reduced from £5.0m to £4.2m.
APS continues to demonstrate growth in its balance sheet position with net assets of £16.7m up 12% (prior year: £14.9m). The cash balance is reported as £10.8m up 11% (prior year: £9.7m). Cashflow from operations improved in the period due to favourable working capital management, offset somewhat by further investment in our production facilities and reduction in the group’s borrowings.
A review of the business, future developments and principal risks and uncertainties have been included within the strategic report. The directors do not foresee any changes to the principal activity of the company.
The process of risk acceptance and risk management is addressed through a framework of policies, procedures and internal controls. Where risks are identified that are not acceptable, action plans are developed to mitigate these with clear allocation of responsibilities and progress towards completion is monitored and reported on. The directors have identified the following key business risks that could have a material impact on the future performance of the company and the controls in place to manage the risk:
Liquidity risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitability. Short term flexibility is achieved through its banking facilities. The company also has long term bank borrowing against which some of its assets are secured.
Credit risk
The company's principal financial assets are cash and trade debtors. The principal credit risk arises therefore from its trade debtors. In order to manage credit risk, the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history.
Foreign exchange risk
Foreign exchange gains and losses arise in the normal course of business from the recognition of receivables and payables and other monetary items in currencies other than an entity’s functional currency. The Group allows its trading entities to settle liabilities denominated in their functional currency with the cash generated from their own operations in that currency. Where there are any significant exposures to foreign exchange risk, the company will consider options to mitigate the risk including appropriate financial instruments such as forward currency contracts.
Engaging with Shareholders
The success of our business is dependent on the support of all our stakeholders. Building positive relationships with stakeholders that share our values is important to us and working together towards shared goals assists us in delivering long-term sustainable success.
The leadership team of the Group make decisions with a long-term view in mind and with the highest standards of conduct. In order to fulfil their duties, the Directors take care to have regard to the likely consequences on all stakeholders of the decisions and actions which they take. Where possible, decisions are carefully discussed with the affected groups and are therefore fully understood and supported when taken.
The Board is well informed about the views of stakeholders, and it uses this information to assess the impact of decisions on each stakeholder group as part of its own decision-making process. Details of the Group’s key stakeholders and how we engage with them are set out below.
Shareholders and employees
Our people are key to our success, and we want them to be successful individually and as a team. As an employee-owned Group this empowers employees to have a greater influence over the future strategic direction and protection of the long-term values. Our people’s key concerns are to know that their voice is heard and creating and sustaining employment. We have an open dialogue with shareholders and employees through the board of directors by way of face-to-face, briefings and annual report and general meetings. Discussions through briefings cover a wide range of topics including financial performance, outlook, development opportunities, pay and benefits, governance and the opportunity to feed back to the leadership team following these discussions.
Customers
Our ambition is to provide best-in-class service to our customers. We build strong lasting relationships with our customers and spend considerable time working together with them to understand their needs and views and listen to how we can improve our offer and service for them. We use this knowledge to inform our decision-making and our use of resources for our core services.
Suppliers
We build strong relationships with our suppliers to develop mutually beneficial and lasting partnerships. Supplier engagement is primarily through a series of interactions and formal reviews. Key areas of focus include sustainability, innovation, value for money and quality. The Board recognises the relationships with suppliers are important to the Group’s long-term success and is briefed on supplier feedback and issues on a regular basis.
Community and the Environment
Sustainability is at the heart of every decision the Group makes and have consistently invested in this area for both our internal processes and that of clients. APS Group is committed to being Carbon Net Zero by 2040 and we regularly engage with environmental initiatives and charities to strive towards this goal and mitigate our impact on the environment in the short term, such as being committed members of the woodland carbon capture scheme, we offset the carbon emissions on all the paper we use.
Government and regulators
We engage with the Government and regulators through a range of industry consultations, forums and meetings to communicate our views to policy makers relevant to our business. Key areas of focus are compliance with laws and regulations, health and safety and product safety. The Board is updated on legal and regulatory developments and takes these into account when considering future actions.
Principal decisions made during the year
During the period APS has continued to invest in the expansion of service lines to include secure communications, global luxury packaging, retail display and branded merchandise and new core print asset acquisitions to support our secure communication service lines. The board carefully considered the long-term benefits of these investments in support of its future growth and key efficiency goals.
The board had adopted a hybrid working model for employees and has continued to invest in technologies to allow remote and flexible working.
On behalf of the board
The director presents his annual report and financial statements for the year ended 31 January 2026.
The results for the year are set out on page 12.
No ordinary dividends were paid. The director does not recommend payment of a further dividend.
The director who held office during the year and up to the date of signature of the financial statements was as follows:
The group operates a treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the group’s activities.
The group's principal financial instruments include invoice finance facilities. bank facilities and loans, the main purpose of which is to raise finance for the group's operations. In addition, the group has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations.
The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.
The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans.
The group’s principal foreign currency exposures arise from trading with overseas companies.
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
The group's policy is to consult and discuss with employees likely to affect the employees interests.
In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the group will be put at a General Meeting.
APS is committed to a programme of continual environmental performance in support of our overall ambition of achieving carbon neutrality by 2040 and to satisfy the core principles of ISO 14001: 2015 accreditation. Recognising these commitments, we are exploring the following improvement strategies.
| Improvement |
1. | Following the year end, the company continued to engage with specialist contractors to extend the solar generation capacity at Chetham House. This solar array is expected to generate around 462,000 kWh of electricity each year, 89% of which will be consumed by our manufacturing operations. |
2. | Continue to the programme of implementing utility usage reductions to gas, electricity and water consumption through lighting systems upgrade to CAT2 LED with PIR motion sensors, linking those same sensors to air conditioning and water systems. Commission de-stratification fans to recover process heat. Targeting reduction in electricity consumption of 1.7 million kWh, gas consumption 197,000 kWh and water consumption of 7,700 litres. |
3. | As our carbon emissions strategy continues to evolve, we recognise the need to go further than the requirements introduced by both the streamlined Energy and Carbon Reporting Regulations and PPN 06/21 to achieve true net zero carbon emissions. We therefore propose to introduce carbon monitoring across the remaining ten activities within the scope 3 framework. |
4. | APS will continue to refine its data capture of scope 3 with the goal of eliminating the need to sample or estimate emissions. We will achieve this through the ongoing project to develop our Sustainability Dashboard and seek assistance from third parties where necessary. |
5. | In 2022 we introduced an Environmental Awareness e-Learning course as a means of building staff engagement in our overall sustainability agenda, which we have further supported by the creation of a quarterly Social Value Forum, bringing representatives from across the business together to share best practice on environmental and sustainability action and to suggest ideas for consideration at senior management level. During 2026 we will build on this by targeting full completion of the Environmental Awareness course. |
We have audited the financial statements of APS Group Holdco Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2026 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the director's report have been prepared in accordance with applicable legal requirements.
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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we 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. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk 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.
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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £Nil (2025 : £Nil)
APS Group Holdco Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Chetham House, Birdhall Lane, Stockport, Cheshire, United Kingdom, SK3 0ZP.
The group consists of APS Group Holdco Limited and all of its subsidiaries.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company APS Group Holdco Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 January 2026. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues 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 the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
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 it is probable will be recovered.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group 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).
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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 is estimated to be less than its carrying amount, the carrying amount of the asset 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 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 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.
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
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 group 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 group 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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group 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 group.
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 profit and loss account 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 group’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 if, and only if, there is 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.
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 retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 leased asset are consumed.
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 group’s accounting policies, the director is 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.
Management have deemed there to be no key accounting estimates.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.
The actual 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:
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Freehold land and buildings with a carrying amount of £4,535,000 (2025: £4,535,000) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.
The land and buildings were revalued on 4 October 2023 at £4,535,000 by Lambert Smith Hampton at open market value. The directors consider that this valuation is appropriate at the year end.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Details of the company's subsidiaries at 31 January 2026 are as follows:
On 3 January 2026, APS Group Singapore Pte. Ltd. was voluntarily struck off the relevant register. Included in these financial statements are profits of £nil arising from the company's interests in APS Group Singapore PTE up to the date of its disposal.
Included within other creditors are liabilities owing of £7,156,822 (2025: £5,456,021) in relation to the invoice financing facility.
The invoice financing liabilities are secured by a floating charge covering all property and undertaking of the group.
The finance lease liabilities are secured by fixed charges over registered land, disclosed chattels from across group companies and the certain secured accounts.
The long-term loans are secured by fixed chares over registered land, disclosed chattels from across group companies and certain secured accounts.
The interest rate is charged at 2% over SONIA.
The long-term loans are secured by fixed charges over registered land, disclosed chattels from across group companies and the certain secured accounts.
The interest rate is charged at 2% over SONIA.
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
There are liabilities for the group outstanding of £194,115 (2025: £199,917) as at 31 January 2026 in relation to pensions.
The rights of the shares are included in the Articles of Association.
The revaluation reserve represents the cumulative increase in the fair value of fixed assets that have been revalued above their historical cost.
Profit and loss reserves represent accumulated profits less equity dividends paid.
On 3 January 2026 the group disposed of its 100% holding in APS Group Singapore PTE as the subsidiary was wound up. Included in these financial statements are profits of £nil arising from the company's interests in APS Group Singapore PTE up to the date of its disposal.
The company is a party to a cross company guarantee with the other members of the group. The total amount of the facility being utilised in the year ended 31 January 2026 amounts to £7,156,822 (2025: £5,456,451).
The facility has been secured against specified plant and machinery as well as approved land and buildings owned within the group.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Included within debtors are amounts totalling £943,645 (2025: £943,645) which relate to amounts owed by The Employee Ownership Trust (EOT).