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

The Jackson Civil Engineering Group 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 £140.5m

Gross Profit margin 11.9% 12.2%

Operating Profit 4.4% 5.2%

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 Social Value. 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 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 group, 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 Group 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 Group 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 Group delivered operating profit margin of 5.4% (2023: 4.4%) and return on capital employed of 43.3% (2023: 36.5%). These ratios represent an excellent trading performance for the year and these ratios compare favourably to competitors in the sector.

• Non Financial

The Group 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 Group has continued to deliver reasonable performances over recent years. The Group 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 Group 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 Group 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.

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.

By order of the board

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 group and company, and of the profit or loss of the group 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;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

The principal activity of the Company is the provision of the Group management and administrative function. This includes the Company's share of activity within JacksonHyder Limited under virtue of the contractual arrangement.

The two subsidiary companies, Jackson Civils Limited and Jackson Civil Engineering Limited, operate in the civil engineering sector.

The results for the year are set out on page 16.

Ordinary dividends were paid amounting to £3,200,000. The directors do not recommend payment of a further dividend.

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

The group gives full and fair consideration to the employment of disabled persons, having regard to their particular aptitudes and abilities. Continuing employment and training is provided wherever possible for any employee who, for any reason, becomes disabled.

Employee information is systematically provided by the use of meetings and notice boards. Employees are encouraged to give their views to management as the need arises. Staff are kept informed of the financial and economic factors affecting the group's performance by regular meetings.

Jackson Civil Engineering Group Limited complies with laws and regulations of the UK. In compliance with the UK government's Streamlined Energy and Carbon Reporting (SECR) policy, Jackson Civil Engineering Group has completed an evaluation of energy usage and emissions for the financial year 2023. The assessment of compliance is done at group level as it is not possible to isolate the SECR qualifying organisation within the individual subsidiaries.

The energy usage and emissions of the group has been evaluated for 1 April 2024 - 31 March 2025 as part of an ongoing emissions trend analysis, begun by the organisation in 2008. Data comparisons are included and presented as both absolute energy use and emissions and normalised against turnover. The below quantifies and presents greenhouse gas emission relating to direct (scope 1) and indirect (scope 2) energy consumption for carbon dioxide (CO2) and hydrofluorocarbons (HFCs). The report does not consider greenhouse gas emissions from activities the group does not own or control, referred to as scope 3 emissions.

Energy data is collected from energy and water data form. The form is completed at site and regional level and evaluated by our QHSE- Environmental Lead. Greenhouse gas emissions have been captured from various sources across our Scope 1-3 footprint that we are responsible for. Considering The Department for Business, Energy, and Industrial Strategy's - 2023 conversion factors (BEIS, 2023). The table below presents the energy usage and emissions sources, how they have been measured and evaluated.

Table 2. JCE, Emissions and Energy Summary FY- 2024/2025.

The Directors have included a business review within the group strategic report. Also included in the group 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.true

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

We have audited the financial statements of Jackson Civil Engineering Group Limited subgroup (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, 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).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2024 and of the group's 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 group and parent 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 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 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 group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company 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 parent 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 parent 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 parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

As permitted by section 408 of the 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 £4,429,294 (2023 - £3,351,086 profit).

In preparing these financial statements, the Directors have made the following judgements:

• Determine whether leases entered into by the Group either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

• Determine whether there are indicators of impairment of the Group's tangible and intangible assets, including goodwill. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Other key sources of estimation uncertainty:

Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Long term contracts

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 processes to ensure that the evaluation of costs and revenues is based upon appropriate estimates.

All turnover arose within the United Kingdom

Jackson Civil Engineering Group 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 Group'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 group management to exercise judgement in applying the Company's accounting policies (see note 2).

Parent company disclosure exemptions

In preparing the separate financial statements of the Parent Company, advantage has been taken of the following disclosure exemptions available in FRS 102:

• Only one reconciliation of the number of shares outstanding at the beginning and end of the period

has been presented as the reconciliations for the Group and the Parent Company would be identical;

• No cash flow statement has been presented for the Parent Company;

• Disclosures in respect of the Parent Company's financial instruments have not been presented as equivalent disclosures have been provided in respect of the Group as a whole;

• No disclosure has been given for the aggregate remuneration of the key management personnel of the Parent Company as their remuneration is included in the totals for the Group as a whole; and

• The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

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 consolidated financial statements present the results of Jackson Civil Engineering Group Limited and its own subsidiaries ("the Group") as they formed a single entity. lntercompany transactions and balances between Group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

The Company and its subsidiaries are part of the wider group headed by One Group Construction Limited. Detailed forecasts of the Company, its subsidiaries and the wider 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.

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 long term 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.

Goodwill represents the excess of the cost of a business combination over the fair value of the Group's share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill on acquisitions of subsidiaries is included in 'intangible assets'. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is carried at cost less accumulated amortisation and accumulated impairment losses. Goodwill amortisation is calculated by applying the straight-line method to its estimated useful life. If a reliable estimate cannot be made, the useful life of goodwill is presumed to be 5 years. Goodwill is being amortised to 'administrative expenses' over periods ranging from 3 to 10 years.

Estimates of the useful economic life of goodwill are based on a variety of factors such as the expected use of the acquired business, the expected useful life of the cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses.

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the profit or loss during the period in which they are incurred.

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

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

The company's investments in subsidiaries and joint ventures are measured at cost less accumulated impairment.

Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit "CGU" to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

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.

In the consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the consolidated statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined, under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that,the Group would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the consolidated statement of financial position when there is an 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.

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.

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 income statement 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 income statement, 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.

Contributions to the Group's defined contribution pension scheme are charged to profit or loss in the year in which they become payable.

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

Long-term contracts and debtors

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.

Debtors

Short term debtors are measured at transaction price, less any impairment.

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.

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

Their aggregate remuneration comprised:

During the year retirement benefits were accruing to 5 Directors (2023: 5) in respect of defined contribution pension schemes.

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:

Fixed assets investments are investments in subsidiaries and a joint arrangement that are all measured at cost.

Details of the company's subsidiaries at 31 December 2024 are as follows:

The company has a 50% Holding in a joint venture in JacksonHyder Limited together with its partner, Arcadis Consulting (UK) Limited.

JacksonHyder Limited's registered office address is 30 White House Road, Ipswich, Suffolk, IP1 5LT

Amounts recoverable on long term contracts consists of balances outstanding for periods 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.

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

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

The Finance Act 2021 was substantially enacted in May 2021 and has increased the corporation tax rate to 25% with effect from 1 April 2023. The deferred taxation balances have been measured using the rates expected to apply in the reporting periods when the timing differences reverse.

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.

In the event of winding up of the Company, the Ordinary 'A' shares have first rights for repayment of up to £1,700,000 in proportion to the number of Ordinary 'A' shares held. Thereafter, any amount above £1,700,000 up to £2,900,000, the remaining assets of the Company will be distributed as follows; 87.5% to the holder of Ordinary 'A' shares and 6.25% to each of the holders of Ordinary 'B' shares. Thereafter, the remaining assets of the Company will be distributed as follows; 81.25% to the holder of Ordinary 'A' shares, 6.25% to each of the holders of Ordinary 'B' shares, 6.25% to the holder of Ordinary 'C' shares and 3. 75% to the holder of Ordinary 'D' shares.

The right to vote and any dividend declared shall by received, 81.25% to the holder of Ordinary 'A' shares, 6.25% to each of the holders of Ordinary 'B' shares, 6.25% to the holder of Ordinary 'C' shares and 3.75% to the holder of Ordinary 'D' shares.

The Group'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. Debt is further secured by legal charges over property owned by the Group.

At the year end, 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 totalling £ 25,590,999 (2023: £ 20,287,011 ) fully off-setting the gross overdraft balances when combined with the current account balance of the individual company.

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:

The Company operates a defined contribution pension scheme.

Contributions made by the Company to the scheme during the year amounted to £2,208,915 (2023: £1,653,864).

Contributions totaling £190,736 (2023: £152,785) payable to the scheme at the year end are included within other creditors.

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

Related party transactions - Jackson Civil Engineering Group Limited and subsidiaries

During the year, the Company received management charges of £429,760 (2023: £458,265) from SEH (Property and Administration) Limited, a fellow group subsidiary.

During the year, the Company was charged rent of £160,341 (2023: £160,341) by SEH (Property and Administration) Limited, and £13,032 (2023: £Nil) by SEHBAC Limited, fellow group subsidiaries.

During the year, the Company received rent totaling £46,872 (2023: £46,872) from SEH French Limited, £3,618 (2023: £7,236) from Sandlings Properties Limited, £53,735 (2023: £Nil) from Anchor Freight Limited, fellow group subsidiaries.

During the year the Company proposed dividends amounting to £3,200,000 (2023: £2,300,000). Of these dividends £2,560,000 (2023: £1,840,000) were payable to SEH Group Limited (see note 17), the immediate parent undertaking and £640,000 (2023: £460,000) were payable to the Directors of the Company.

During the year, the Company received interest of £93,879 (2023: £66,683) from SEH (Property and Administration) Limited and there was £Nil interest received from SEHBAC Limited (2023: £13,032), fellow group subsidiaries.

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

The Company is controlled by One Group Construction Limited. The smallest and 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.