Space Engineering Services: Growth, resilience, and sustainable progress

Space Cooling Topco Limited and its primary operating company, Space Engineering Services, are a leading UK provider of refrigeration, HVAC, mechanical and electrical engineering solutions. Space Engineering delivers mission-critical infrastructure for national retailers, manufacturers, and commercial operators.

With around 380 employees and a strong national presence, the group operates in a market characterised by technical complexity, regulatory changes, and increasing sustainability requirements. Our relationship has focused on strengthening assurance, improving financial resilience, and supporting strategic decision-making across Audit, Tax and ESG.

Understanding the client: A business built on innovation

Space Engineering’s mission – “to understand, innovate and deliver” – reflects its commitment to designing bespoke, efficient engineering solutions. Their in-house design team uses advanced 2D and 3D AutoCAD tools to tailor solutions to customer specifications, a capability that differentiates them from competitors and underpins their long-term success.

Strategic challenges

When we began working with Space Engineering, the group faced several core challenges:

• The need for a robust, efficient and cost-effective external audit that understood the complexities of manufacturing and long-term contract accounting.
• A requirement for statutory accounts preparation aligned to sector-specific reporting considerations.
• A pressing need for strategic debt restructuring, as existing loan note levels constrained profitability and limited future growth.
• Ongoing corporate tax compliance with integrated advisory support.
• Emerging requirements around carbon reporting, with obligations cascading down supply chains.

Head of Manufacturing, Dan Phillips, with Space Engineering Head of Operations, Andy Sealy, viewing one of Space Engineering’s refrigeration units

Following a recent warehouse tour, Dan Phillips commented, “Seeing Space Engineering’s award-winning manufacturing firsthand was a privilege, and we look forward to supporting them in their continued success in the year’s ahead”.

Our approach: Insight-led and collaborative

We bring together expertise across audit, tax and ESG to deliver solutions that strengthen resilience and unlock growth.

External Audit: Rigorous, sector-aware assurance

Our audit approach, led by partner and Head of Service Lines Joe Scaife and supported by director and Head of Manufacturing Dan Phillips, combines deep sector expertise with tailored processes for:

• Long-term contract accounting and project-based revenue streams
• The group’s information systems and management reporting
• The operational complexity of multiple engineering and design functions
• International operational and financial risk management and reporting

Secure digital platforms are utilised for the provision of information, which ensures transparency, efficiency, and clear audit trails. Our AI-assisted technology provides value through critical data analyses and reporting. 

Corporate Tax - compliance and advisory

Our tax specialists reviewed the group’s financing structure to simplify and strengthen the balance sheet, ensuring sustainability and compliance with HMRC thin capitalisation rules. We also provide ongoing corporate tax compliance and forward-looking planning to help the group make tax-efficient decisions.

Key outcomes:

• Strategic debt restructuring released headroom for growth
• Compliance ensured under HMRC rules
• Improved profitability and financial resilience

Carbon footprint strategy and ESG readiness

With carbon reporting expectations increasing across manufacturing supply chains, we supported Space Engineering by mapping emissions and planning for reduction, introducing independent verification partners to support long-term sustainability goals.

The impact - a strong platform for sustainable growth and improved financial resilience

Partnering for success

Bishop Fleming provides a flexible, high-quality service built on a commitment to excellence and a genuinely inquisitive approach to understanding our business. This mindset has helped the group flourish and stay well-positioned for future success

Braden Harris, Space Engineering Finance Director

Key takeaways for manufacturing businesses

• Coordinated audit and tax approach delivers stronger insight and better decision-making
• Sector expertise ensures advisory conversations are relevant, not theoretical
• Restructuring financial models can release significant headroom for growth
• Early action on carbon reporting creates a competitive advantage
• A trusted advisor relationship helps management teams navigate complexity with confidence.

Looking forward

As Space Engineering prepares for upcoming FRS 102 changes, particularly those affecting revenue and lease accounting, we’ll continue to bring together expertise across audit, tax and advisory to ensure resilience and growth. Because it’s what we bring together that sets us apart. Contact us today to discover how we can support you.