The directors present the strategic report for the year ended 31 December 2024.

Jackson Civil Engineering Limited remains one of the leading regionally based, privately owned civil engineering contractors and the Directors are pleased to report another successful year of trading.

This year has seen the business operate in an ever increasingly competitive market but even set against this backdrop the business has still seen growth in the period against its key financial indicators as follows:

2023 2024

Turnover £120.6m £140.4m

Gross Profit margin 11.1% 11.4%

Operating Profit 4.36% 4.6%

Given the pressures that have been seen across the industry with regards to the availability of people, plant and resource this once again represents an extremely satisfying year’s trading. The financial and operational controls that have been in place across the business and the ability for the business to flex in response to the changes in the marketplace and adapt accordingly has been key to the ongoing success and growth of the business.

One of the key drivers to this reported margin is the high calibre of people working for the business as well as the strength and competence of the valued supply chain to the business.

It is vital that as a business we continue to have a positive impact in our industry and have a steady forward workbook, as this ensures both stability to the business as well as our people. This period we have continued to win many projects across a number of industry sectors. These include but are not limited to, Flood and Coastal works, central Government funded projects, local Government projects as well as projects from the private sector. Some of our key clients from previous years have continued to provide the business with a strong order book through 2023 and 2024, which demonstrates confidence in the business from our clients and a continuation of our strong client relationships. A varied spread of work across all of our operating regions and industry sectors continues to be a strength of our business and will continue to be going forward.

Central to the ongoing success of the business is the commitment driven by the Directors around our core values of Health and Safety, Supply Chain, Environment, Collaboration and People. As a business we are fully committed to ensure that the business remains at the leading edge of our industry around these pillars and that we are not only continuously improving and learning but also share our knowledge wherever possible.

Health Safety and Wellbeing

The Health Safety and Wellbeing of our staff and all of our stakeholders is of the utmost importance to the business and the Board. It is for this reason that health, safety and wellbeing are two of the 5 principal pillars for the business. Each year the business has an extensive training and communication programme around this topic and we are driven to ensure continuous improvement across the business wherever possible. Unfortunately, in this reporting period the company has had 2 reportable incidents (RIDDOR). This is an increase from 2023 where we had 1 reportable, but for the business 1 is still too many.

The business continues to be heavily focused on wellbeing and through the course of 2024 we have continued with the initiatives started in 2020 and improved upon a number of these across the company with one of our key areas being the provision of mental health training. During 2024 we have trained an additional 19 staff members to become qualified mental health first aiders across the business.

Supply Chain

The strength and continued success of the business is dependent on having a valued and supported supply chain, who can offer technical and specialist support to our business and where the business offers a platform to train and support suppliers. During this reporting period through our Supply Chain Manager, we have continued to offer support, advice and feedback to our suppliers through our structured supply chain framework which we call “Synergy”. This provides our supply chain with the confidence that both their and our performance is being measured on an annual basis to promote growth and learning for both parties. This will in turn result in the organisation having stronger, mutually beneficial relationships throughout our supply chain.

Environment

During this reporting period we have continued to be focused on ensuring that our construction activities have the smallest environmental footprint as possible. This has been achieved by focusing our efforts on reducing our carbon footprint by installing renewable energy wherever possible on our remote sites and promoting and implementing greater utilisation of Hybrid and electronic solutions in our vehicle fleet and hired plant. We continue to promote wherever possible the use of sustainable resources and material across our projects.

During the period we have continued our journey on meeting our objectives set out in our Carbon Net Zero Policy. Jackson’s Carbon Commitment explains our policies, procedures and activities to meet targets for 2035 and beyond. Our primary target is to be Net Zero by 2035 for all Scope 1 and 2 emissions and any Scope 3 emissions under our direct control. We will also encourage low-carbon material choices by our suppliers, and carbon-efficient approaches and methods in discussion with our clients and subcontractors. In 2024 the business achieved a major milestone in our carbon journey by implementing a carbon offsetting scheme for the entire business. This means that the business is now carbon neutral for all of our Scope 1 and 2 emissions. In 2024 we have continued on our pathway to Net Zero with the target date of 2035 for our direct emissions. This target will be challenging and require strong collaboration across all our departments, and we will need all our stakeholders to play a role.

Collaboration

The Directors of the business see the importance of collaboration across the business both with our clients as well as our supply chain. During the period we have strengthened our collaborative relationships with our clients and continued to promote and support our supply chain through our BSI 44001 - Collaborative Business Relationships Standards.

We will continue to ensure that our collaborative behaviours are seen as a strength to our business both internally and externally.

Social Value

As a privately owned regional contractor, we both understand and appreciate the importance of our business having a positive impact on the communities that we work in. During this reporting period we have promoted the use of local labour and supply chain partners wherever possible and have continued to provide STEM (Science, Technology, Engineering and Maths) programmes to local education trusts. During this period, we have delivered in excess of 750 hours of STEM based activities with the support of our in-house STEM Ambassadors.

We continue to run a programme of behavioural training to all our staff as well as promoting the use of local apprentices where possible. The Directors of the business are focused on ensuring that the business is seen as giving back to our local communities and seen as a positive local employer to all.

In 2024 we have been successful in reaching our target of using 50% local labour on all of our sites, thereby leaving a legacy in the communities that we work.

As a construction company, the market sector that the business operates in is subject to a number of risks. The Directors continuously review and monitor the risks that the business face and involve the senior management in this process. These risks are recorded in a Company Risk Register. Along with this register the company also operates a PESTLE analysis to review any risks that are external to the business.

These ongoing reviews have highlighted the following key areas of potential risk and the company strategy to mitigate them:

• People

During this reporting period the number of suitably skilled and trained people within our industry has continued to be a key risk to the business. With this in mind the Board has had a focused drive during the period to ensure we both retain and recruit staff into the business. During the reporting period a number of initiatives have been formalised in order to demonstrate to our staff their value to the business. We have continued to offer hybrid working arrangements to both our office and site-based employees in order to ensure that we maximise on work life balance.

• Market Risk

Global uncertainty and market volatility continues to have an impact on material prices, however over the period this is not as pronounced as in previous periods. This continues to be felt across the industry and is a key risk that is reviewed and addressed on tenders with volatile commodities. On our projects during the period the company has also focused where possible to front order and stockpile materials to ensure not only availability but also fixed prices to help mitigate this risk.

• Credit risk

The main financial assets of the company are cash and trade debtors. The credit risk associated with cash balances is limited as counterparties are banks with high credit ratings assigned by international credit agencies. The principal credit risk therefore arises from its trade debtors.

In order to manage credit risk, the Directors consider information such as independent credit ratings for prospective clients before contracts are taken on. All invoices are monitored to ensure timely payment and aged debtor listings are reviewed for overdue accounts.

• Liquidity risk

The company monitors cash flow on a daily basis and produces weekly cash flow forecasts. The objective being to ensure an overall neutral or positive cash flow to ensure sufficient liquidity is available to meet foreseeable needs.

• Financial

The Directors monitor the performance of a number of competitors operating in the construction sector and in particular pay close attention to gross profit, operating profit and return on capital employed.

For the current year, Jackson Civil Engineering Limited delivered operating profit margin of 4.6% (2023 4.3%) and return on capital employed of 75.7% (2023 72%). These ratios represent an excellent trading performance for the year and these ratios compare favourably to competitors in the sector.

• Non Financial

The company also measures its performance by reference to non-financial indicators.

Health and safety

At the forefront of the non-financial indicators is the monitoring of health and safety incidents. Unfortunately, in 2024 we have had to report 2 incidents during the year (2023 one reportable).

Future Developments

The company has continued to deliver reasonable performances over recent years. The company is currently engaged on a number of Frameworks with clients with whom they have worked with over a number of years and these Frameworks continue to provide a high level of turnover and support a secured order book at the end of the second quarter of 2024 which is in excess of £150m for the remainder of 2025 and beyond. The company continues to look to expand and explore new opportunities and new market sectors should they arise. Undoubtedly in the short term there remains uncertainty around availability of staff and material shortages. Notwithstanding this, with a strong balance sheet developed over a number of years, the Directors are confident that the business is well placed to explore new opportunities or conversely tackle the challenges that may be presented.

Employee engagement

The company continues to work closely with the employees to drive efficiencies through process improvement. We continue to improve our engagement and communication with our staff through the use of remote technologies such as Teams where the company has seen an increase in employee engagement through virtual seminars and training sessions, and this will continue going forward.

The comprehensive PDR (personal development review) process provides invaluable input and is a key source of ideas for business improvement and staff wellbeing. PDRs are undertaken with all employees on an annual basis. Actions and objectives arising therefrom are monitored and evaluated to drive forward continuous improvement for the employees and the business.

Business relationships

The Board recognises that it is essential for the continued success and reputation of the business to maintain positive relationships with clients, suppliers and our subcontractors.

The Board regularly reviews the Company’s principal stakeholders and how it engages with them. This is achieved through information provided by senior management and by direct engagement with the stakeholders themselves. The most desirable engagement is to hold face to face meetings, and this has been actively promoted across the business wherever possible.

The fundamental overriding principals in the governance of the company are that of ensuring transparent conduct which reflects fairness in all dealings with the shareholders, employees, clients and the supply chain whilst having due consideration for the wider community and environment.

S172 (1) Statement

Section 172 of the Companies Act 2006 requires Directors to take into consideration the interests of stakeholders and other matters in their decision making. The Directors continue to have regard to the interests of the Company’s employees and other stakeholders, including the impact of its activities on the community, the environment and the Company’s reputation for good business conduct, when making decisions. In this context, acting in good faith and fairly, the Directors consider what is most likely to promote the success of the Company for its members in the long term.

During 2024 there were no key decisions made by the Board of Directors which were determined to impact employees or have a long-term impact on the business.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2024.

The principal activity of the company during the year was that of civil engineering contractors and consultants.

The results for the year are set out on page 11.

The board proposed and approved a dividend of £3,750,000 (2023: £2,750,000).

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

Business review

The Directors have included a business review within the strategic report. Also included in the strategic report are details of the future developments of the Company, the principal risks and uncertainties and a review of the key performance indicators as assessed by the Directors.

The company does not actively use financial instruments as part of its financial risk management. It is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through credit control procedures. The company aims to finance working capital through retained earnings and where necessary through borrowings at prevailing market rates.

The company's exposure to the price risk of financial instruments is therefore minimal. As the counterparty to all financial instruments is its bankers, it is also exposed to minimal credit and liquidity risks in respect of these instruments.

The directors do not consider any other risk attaching to the use of the financial instruments within the company to be material to an assessment of its financial position or profit.

In accordance with paragraph 20A of The Companies (Directors' Report) and Limited Liability Partnership (Energy and Carbon Report) Regulations 2018, the company is exempted from reporting on its emissions, energy consumption or energy efficiency activities on the basis that it is a subsidiary undertaking at the end of the financial year and included in the group report of a parent undertaking.

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:

• so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware; and

• the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.

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 (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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• 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.

We have audited the financial statements of Jackson Civil Engineering Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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 December 2024 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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

• obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company are complying with the legal and regulatory framework;

• enquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known, actual, suspected or alleged instances of fraud;

• discussed matters about non-compliance with laws or regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of potential bias, and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

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.

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.

The income statement has been prepared on the basis that all operations are continuing operations.

Jackson Civil Engineering Limited is a private company limited by shares incorporated in England and Wales under the Companies Act 2006. The address of the registered office is given on the company information page and the nature of the company's operations and its principal activities are set out in the directors' report.

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).

The presentational and functional current of these financial statements is GBP. Values have been rounded to the nearest £.

The following principal accounting policies have been applied:

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions 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;

• the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

• the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iv), 11.48(b) and 11.48(c);

• the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;

• the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Jackson Civil Engineering Group Limited as at 31 December 2024 and these financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

The Company is part of the group headed by One Group Construction Limited. Detailed forecasts of the Company and Group for a period of at least 12 months from the approval of these financial statements have been considered. Taking into account the current economic climate and reasonably possible downsides, the directors have a reasonable expectation that the Company and the Group has sufficient resources to meet their obligations as they fall due and continue in operational existence for the foreseeable future.true

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

Turnover consists of income derived from short term and long term contracts on a variety of differing commercial projects. Invoices for short term contracts are raised as the work progresses and turnover is realised accordingly. Turnover for such contracts is stated at cost appropriate to their stage of completion plus attributable profits, less amounts recognised in previous periods. The amounts of profit attributable to the stage of completion of a long term contract is recognised when the outcome can be foreseen with reasonable certainty. Provision is made for any losses which are foreseen. Applications for stage payments are issued on a monthly basis and are net of value added tax, where appropriate, and trade discounts.

Long-term contracts

Amounts recoverable on contracts are included in debtors and represent turnover recognised in excess of payments received from clients. Payments received from clients in excess of the turnover recognised are included within payments on account in creditors. Amounts included within work in progress represent costs incurred on contracts in their initial stages as at the year end for which no application for payment has been made.

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

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.

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.

The tax expense for the year comprises current and deferred tax. Tax is recognised in the statement of comprehensive income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the statement of financial position date, except that:

•    The recognition of deferred tax assets is limited to the extent that it is probable that they will be

recovered against the reversal of deferred tax liabilities or other future taxable profits; and

•    Any deferred tax balances are reversed if and when all conditions for retaining associated tax

allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations. when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred taxis determined using tax rates and laws that have been enacted or substantively enacted by the reporting data.

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.

Administrative expenses

Administrative expenses comprise management charges levied by the company's immediate parent entity during the year in relation to overhead costs incurred. The amounts charged are proportional based on direct contract costs incurred.

Amounts charged include staff costs attributable to contracts undertaken by the company and a proportion of other directly attributable overhead costs in relation to overhead costs incurred.

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.

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.

Contract accounting (see note 10)

The company applies its policies on turnover and long term contracts when recognising revenue and profit on partially completed contracts. The application of this policy requires judgements to be made in respect of the total expected costs to complete and the profit margin achievable on each contract. The company has in place established internal control estimated to ensure that the evaluation of costs and revenues is based upon appropriate estimates.

The whole of the turnover is attributable to civil engineering contracting and consulting.

All turnover arose within the United Kingdom.

Audit and accountancy fees totaling £49,820 (2023: £47,000) and tax fees totaling £2,230 (2023: £2,100) during the year were borne by the company's immediate parent company and were recharged by way of a management charge.

The company has no employees other than the directors.

During the year, management charges totalling £26,930,247 (2023: £24,364,623) were recharged to the company by the company's immediate parent undertaking.

These management charges are broken down as follows:

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 proposed final dividend for the year ended 31 December 2024 is:

Amounts recoverable on long term contracts includes some balances outstanding for periods of up to two years. Swift resolution of amounts recoverable on contracts occurs when contractual issues are simple and agreed by all parties. Long protracted resolutions occur when contractual disagreement arises on complex interpretation to additional works carried out, or additional costs incurred, and the relevant liability of all the various parties to the contract for these additional costs. Resolution occurs through a combination of negotiation, adjudication and legal action.

Trade creditors relate to subcontractor retentions which do not fall due for payment until 1 January 2026 at the earliest.

The company's reserves are as follows:

Called up share capital

Called up share capital represents the nominal value of the shares issued.

Profit and loss account

The profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.

There is a contingent liability in respect of guarantees given by the company, in common with fellow subsidiaries, to its bankers for loan and overdraft facilities granted to the ultimate parent company, One Group Construction Limited and its subsidiaries.

At the year end other companies had gross overdrafts amounting to £13,327,967 (2023: £11,940,789). The group has a right of set off between overdrafts and current account balances. At the year end other group companies had current account balances totaling £21,518,872 (2023: £9,139,101) fully off­setting the gross overdraft balances when combined with the current account balance of the individual company.

During the year the company entered into the following transactions with related parties:

The balance owed to Jackson Civil Engineering Group Limited includes creditor of £4,232,606 (2023 - £4,274,396) in respect of the company's share of the group VAT liability, £3,750,000 in respect of dividends declared (2023 - £2,750,000) and £2,596,126 (2023 - £3,456,999) in respect of other amounts payable.

The following amounts were outstanding at the reporting end date:

During the year, the company paid management charges of £9,458,412 (2023 - £8,411,271) to its parent company, Jackson Civil Engineering Group Limited.

During the year, the company received interest of £nil (2023 - £2,339) from its parent company, SEH (Property and Administration) Limited.

The company is controlled by Jackson Civil Engineering Group Limited. The smallest group into which the accounts of the company are consolidated is the group headed by Jackson Civil Engineering Group Limited. The largest group into which the accounts of the company are consolidated into is headed by One Group Construction Limited, the company's ultimate parent undertaking and controlling party, which is registered in England and Wales. Copies of the consolidated accounts are available from Companies House, Crown Way, Cardiff, CF14 3UZ. The registered office of One Group Construction Limited is 30 White House Road, Ipswich, Suffolk, IP1 5LT.