Strategic Report, Report of the Directors and

Financial Statements

for the Period 1 January 2025 to 31 January 2026

for

E-Tech Southern Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

R Lane

J Lynott

D K Sweeting

P Todd

REGISTERED OFFICE:

146 High Street

Billericay

Essex

CM12 9DF

REGISTERED NUMBER:

06754667 (England and Wales)

AUDITORS:

Michael Letch & Partners LLP

Accountants and Statutory Auditors

146 High Street

Billericay

Essex

CM12 9DF

The directors present their strategic report for the period 1 January 2025 to 31 January 2026.

REVIEW OF BUSINESS

The company delivered an exceptional operating performance during its extended 13-month financial period ended 31 January 2026, navigating a successful transition of ownership control under the corporate Management Buy-Out (MBO) which completed on 24 January 2025. The company generated total turnover of £14,691,955 during the period, yielding a gross profit of £4,535,667 and an improved gross profit margin of 30.87% .

Operating profit for the period reached £2,434,287. Administrative overheads of £2,101,605 were carefully managed to protect contracting yields..

Net profit after tax closed at £2,010,522, providing strong liquidity to support the wider group capital structure

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the company are:

Subcontractor Performance, Availability, and Quality Control

As we rely heavily on external sub-contractors for project delivery, any shortage of skilled third-party labor, poor workmanship, or project delays on their part directly impacts our reputation, client relationships, and margins.

To mitigate this risk we maintain a strict, regularly reviewed Approved Subcontractor Register. All partners must undergo rigorous pre-qualification checks, including verification of insurance, JIB/ECA accreditation, and past performance history. Our internal project managers conduct frequent site inspections to ensure quality control.

Health, Safety, and Legal Liability

Commercial electrical works carry high inherent risks. Even though works are subcontracted, the company retains significant legal, regulatory, and reputational liability as the principal contractor if a serious safety incident occurs on site.

To mitigate this risk, we enforce strict site induction protocols and require detailed Risk Assessments and Method Statements (RAMS) from all subcontractors before work begins. Our internal compliance team conducts unannounced site safety audits, and we maintain comprehensive Public and Employers’ Liability insurance policies.

Fixed-Price Commercial Contract Pressures

A substantial portion of commercial electrical tenders are won on a fixed-price basis. Fluctuations in the cost of raw materials (such as copper cabling and switchgear) or unexpected site delays can erode our margins if the subcontractor's costs rise faster than budgeted.

To mitigate this we actively negotiate back-to-back fixed-price agreements with our subcontractors to mirror our client commitments. Additionally, where feasible, we incorporate material price variation clauses into major client contracts to share the risk of extreme material cost inflation.

Credit Risk and Cash Flow Management

Operating in the commercial sector exposes the company to payment delays or insolvencies of main contractors or commercial clients, which could severely disrupt our working capital cycle and ability to pay our subcontractors.

We conduct thorough credit checks on all new clients and closely monitor payment terms. Subcontractor payment structures are, where contractually permitted, aligned with client milestones to preserve operational liquidity.

Future Developments

The demand for commercial electrical infrastructure, particularly energy-efficient upgrades and smart commercial building integrations, remains stable. The directors believe that the company's flexible, subcontract-led model positions it well to navigate changing economic conditions without the burden of high fixed labour costs, ensuring a sustainable outlook for the coming financial year.

ON BEHALF OF THE BOARD:

R Lane - Director

27 October 2026

The directors present their report with the financial statements of the company for the period 1 January 2025 to 31 January 2026.

DIVIDENDS

An interim dividend of £145,520 per share was paid on 25 January 2025. The directors recommend that no final dividend be paid.

The total distribution of dividends for the period ended 31 January 2026 will be £ 3,638,000 .

DIRECTORS

R Lane has held office during the whole of the period from 1 January 2025 to the date of this report.

Other changes in directors holding office are as follows:

J Lynott - appointed 1 April 2025

D K Sweeting - appointed 1 April 2025

P Todd - appointed 1 April 2025

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 (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 are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

The 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Michael Letch & Partners LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R Lane - Director

27 October 2026

Opinion

We have audited the financial statements of E-Tech Southern Limited (the 'company') for the period ended 31 January 2026 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

Auditors' responsibilities for the audit of the financial statements

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

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

Enquiry of management and the directors actual and potential litigation claims.

Enquiry of management in compliance functions to identify any instances of non-compliance with laws and regulations.

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

Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluation of the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.

On occasion we may also have determined that certain matters relating to non-compliance with laws and regulations are key audit matters, we must still include the required explanation, in our report, as to what extent the audit was considered capable of detecting irregularities, including fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to 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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Other Matters

The financial statements of the Company for the year ended 31st December 2024 were not audited, as the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The corresponding figures for the year ended 31st December 2024 are therefore unaudited. Our opinion on the current period's financial statements is not modified in respect of this matter.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

MICHAEL LETCH (Senior Statutory Auditor)

for and on behalf of Michael Letch & Partners LLP

Accountants and Statutory Auditors

146 High Street

Billericay

Essex

CM12 9DF

27 October 2026

TURNOVER

14,691,955

15,587,141

Cost of sales

10,156,288

12,644,045

GROSS PROFIT

4,535,667

2,943,096

Administrative expenses

2,101,380

1,846,877

OPERATING PROFIT

4

2,434,287

1,096,219

Interest receivable and similar income

1,913

3,291

2,436,200

1,099,510

Interest payable and similar expenses

5

225

5,781

PROFIT BEFORE TAXATION

2,435,975

1,093,729

Tax on profit

6

425,453

301,918

PROFIT FOR THE FINANCIAL PERIOD

2,010,522

791,811

PROFIT FOR THE PERIOD

2,010,522

791,811

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

2,010,522

791,811

FIXED ASSETS

Tangible assets

8

8,470

11,368

CURRENT ASSETS

Stocks

9

-

15,750

Debtors

10

4,251,811

4,217,152

Cash at bank

392,155

1,926,635

4,643,966

6,159,537

CREDITORS

Amounts falling due within one year

11

2,498,775

2,389,460

NET CURRENT ASSETS

2,145,191

3,770,077

TOTAL ASSETS LESS CURRENT LIABILITIES

2,153,661

3,781,445

PROVISIONS FOR LIABILITIES

13

2,381

2,687

NET ASSETS

2,151,280

3,778,758

CAPITAL AND RESERVES

Called up share capital

14

25

25

Capital redemption reserve

15

100

100

Retained earnings

15

2,151,155

3,778,633

SHAREHOLDERS' FUNDS

2,151,280

3,778,758

The financial statements were approved by the Board of Directors and authorised for issue on 27 October 2026 and were signed on its behalf by:

R Lane - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2024

25

2,986,822

100

2,986,947

Changes in equity

Total comprehensive income

-

791,811

-

791,811

Balance at 31 December 2024

25

3,778,633

100

3,778,758

Changes in equity

Dividends

-

(3,638,000

)

-

(3,638,000

)

Total comprehensive income

-

2,010,522

-

2,010,522

Balance at 31 January 2026

25

2,151,155

100

2,151,280

1.	STATUTORY INFORMATION

E-Tech Southern Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Going Concern

Having reviewed the company's financial projections, trading pipelines, and capital structure, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future .

The company's liquidity position is supported by robust cash conversion from its core electrical contracting operations.

Consequently, the directors continue to adopt the going concern basis of accounting in preparing the financial statements

Change in financial accounting period and mismatch

The company has altered its accounting reference date to lengthen the current financial period. Consequently, the current financial statements have been prepared for a 13-month period from 1 January 2025 to 31 January 2026.

The comparative figures presented in these financial statements and the accompanying notes relate to the 12-month financial year ended 31 December 2024. As a result, the income statement, statement of cash flows, statement of changes in equity, and related notes are not entirely comparable.

First-time adoption of full FRS 102

This is the first financial period in which the company has prepared its financial statements under full FRS 102, having previously applied Section 1A (Small Entities) of FRS 102.

The transition from FRS 102 Section 1A to full FRS 102 has impacted presentation and disclosure requirements only, specifically requiring expanded note disclosures. There have been no material adjustments required to the recognition or measurement of the company's assets, liabilities, equity, or profit as a result of this transition.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of financial statements requires management to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 a continuing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

Revenue and margin recognition

The company's revenue recognition and margin recognition policies are central to how the company values the work it has carried out in the financial year.

These policies require forecasts to be made of the outcomes of construction contracts which require assessments and judgements to be made on the recovery of changes in the scope of the work, contract programme issues, maintenance and defects liabilities and changes in costs.

Recoverability of retentions and trade receivables

Trade debtors include retention balance withheld by commercial clients until the expiration of contractual defect liability periods, often extending 12 to 24 months beyond practical completion. Management reviews the recoverability of trade debtors and retentions on an individual contract by contract basis.

Estimating the required provision for credit losses and rectification costs involves assessing the financial stability and insolvency risks of main contractors, historical collection tracks and the status of any unresolved technical disputes or snagging lists.

Retentions receivable represent amounts withheld by customers until the expiry of defect liability periods. Management assesses the recoverability of these balances based on historical collection rates, the financial stability of the main contractors, and any known technical disputes. A provision for credit losses or rectification costs is established when evidence suggests the full retention may not be recovered.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

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

Plant and machinery

-

25% on reducing balance

Computer equipment

-

33% on cost

Stocks

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

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

Projects

Where the income of a contact can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date.

Costs are recognised as incurred and revenue is recognised on the basis of the proportion of total costs at the reporting date to the estimated total costs of the contract.

Provision is made for all known or expected losses on individual contracts once such losses become reasonably apparent.

3.	EMPLOYEES AND DIRECTORS

Period

1.1.25

to

Year Ended

31.1.26

31.12.24

£

£

Wages and salaries

1,410,164

1,160,800

Social security costs

151,076

135,295

Other pension costs

6,692

54,972

1,567,932

1,351,067

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

Period

1.1.25

to

Year Ended

31.1.26

31.12.24

Directors

4

1

Direct wages

5

6

Administrative

6

8

Managerial

1

3

16

18

Period 1.1.25 to 31.1.26

Year Ended 31.12.24

£

£

Directors' Remuneration

766,603

12,000

Information regarding the highest paid director for the period ended 31 January 2026 is as follows:

Period 1.1.25 to 31.1.26

£

Emoluments etc

266,667

The total directors' remuneration recognised within administrative expenses includes £282,370 (2024: £Nil) paid to third-party personal service companies for providing the strategic and operational management services of individuals who serve as directors of the company and or the immediate parent undertaking, E-Tech Holdings Limited .These individuals actively direct the primary trading operations of this company.

4.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1.1.25

to

Year Ended

31.1.26

31.12.24

£

£

Hire of plant and machinery

94,340

83,274

Depreciation - owned assets

6,159

18,917

Auditors' remuneration

20,000

-

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1.1.25

to

Year Ended

31.1.26

31.12.24

£

£

Bank loan interest

225

5,781

6.

TAXATION

Analysis of the tax charge

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

Period

1.1.25

to

Year Ended

31.1.26

31.12.24

£

£

Current tax:

UK corporation tax

425,759

306,613

Deferred tax

(306

)

(4,695

)

Tax on profit

425,453

301,918

Reconciliation of total tax charge included in profit and loss

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

Period

1.1.25

to

Year Ended

31.1.26

31.12.24

£

£

Profit before tax

2,435,975

1,093,729

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

608,994

273,432

Effects of:

Expenses not deductible for tax purposes

24,933

28,485

Depreciation in excess of capital allowances

695

4,695

Group loss relief

(208,863

)

-

Change in deferred tax

(306

)

(4,694

)

Total tax charge

425,453

301,918

7.

DIVIDENDS

Period

1.1.25

to

Year Ended

31.1.26

31.12.24

£

£

Ordinary shares of £1 each

Interim

3,638,000

-

8.	TANGIBLE FIXED ASSETS

Plant and

Computer

machinery

equipment

Totals

£

£

£

COST

At 1 January 2025

68,682

87,636

156,318

Additions

1,462

1,799

3,261

At 31 January 2026

70,144

89,435

159,579

DEPRECIATION

At 1 January 2025

60,449

84,501

144,950

Charge for period

2,424

3,735

6,159

At 31 January 2026

62,873

88,236

151,109

NET BOOK VALUE

At 31 January 2026

7,271

1,199

8,470

At 31 December 2024

8,233

3,135

11,368

9.

STOCKS

2026

2024

£

£

Stocks

-

15,750

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2024

£

£

Trade debtors

2,426,091

2,316,743

Amounts owed by group undertakings

1,576,574

-

Other debtors

11,529

37,583

VAT

129,316

81,083

Directors' current accounts

-

1,735,050

Prepayments

108,301

46,693

4,251,811

4,217,152

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2024

£

£

Bank loans and overdrafts (see note 12)

-

83,671

Trade creditors

1,882,381

1,839,788

Tax

425,759

306,613

Social security and other taxes

100,751

134,907

Other creditors

32,351

17,481

Invoice factoring

36,236

-

Accrued expenses

21,297

7,000

2,498,775

2,389,460