REGISTERED NUMBER: 05839536 (England and Wales)

Dunton Environmental Limited

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2024

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

Mr M D Deary

Mr M Lacazedieu

Mr N A Roe

REGISTERED OFFICE:

Soterion House Northgate

Aldridge

Walsall

West Midlands

WS9 8TH

REGISTERED NUMBER:

05839536 (England and Wales)

AUDITORS:

Advance Audit Limited

Statutory Auditor

71/73 Hoghton Street

Southport

Merseyside

PR9 0PR

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

The Company's principal activity is remediation activities and other waste management services.

BUSINESS MODEL

Dunton Environmental Ltd is a leading ground remediation and waste management contractor. The Company is part of the worldwide foundation group, Soletanche Freyssinet, itself one of the largest and most diverse soil improvement and remediation specialists for the construction industry. The Company carries out projects nationally for a wide range of major clients. The Company views health, safety and training as priority areas to ensure that its human resources are well equipped to deal with the challenges that the Company's business sector presents. Increasing control and regulation related to plant, site operations and the environment are regarded as positive factors throughout all levels of the Company's personnel.

REVIEW OF BUSINESS

The 2024 financial year has been a significant period for Dunton Environmental Limited, marked by exceptional performance and strategic progress.

Revenue for the year grew to almost double that of 2023, reflecting both increased demand for our specialist solutions and successful execution of our growth strategy. This strong top-line expansion was underpinned by robust operational delivery, enhanced market positioning, and the continued trust of our expanding customer base. Our ability to secure and deliver high-value projects across diverse sectors demonstrates the resilience and adaptability of our business model.

A key driver of this success has been the development of a strong customer relations pipeline. By deepening relationships with existing clients, we have built a healthy forward order book that provides both revenue visibility and opportunities for sustainable growth in future years.

Profitability has been strong, supported by disciplined cost management, operational efficiency, and a focus on high-margin service offerings. This financial strength enables us to reinvest in our people, technology, and sustainable practices, ensuring we remain at the forefront of our industry.

We continue to be well-supported by our group shareholder company, which provides us with a stable financial backing. This support enables us to invest in innovation, enhance operations, and ensure timely payments and reliable performance.

We appreciate the continued support of our supply chain and customers and the confidence in our business, and we understand the importance of maintaining trust and confidence.

With our return to profit, a strong order book, substantial investment in our infrastructure, and robust group support, we are well-positioned to continue delivering high-quality products and services.

Looking ahead; the foundations laid in 2024 position Dunton Environmental Limited for continued growth. We remain committed to delivering innovative, sustainable solutions whilst strengthening our market presence and generating long-term value for our stakeholders.

KEY PERFORMANCE INDICATORS

The Company views turnover, profitability and growth as the main indicators in the business. Turnover, including management fees in 2024 was £14.153 million, £6.642 million up from the same period in 2023. The 2024 Return on physical assets ("ROPA") was £1.062 million compared to -£1.488 million loss in 2023.

The business has continued to invest inwardly in the following areas: infrastructure, staff growth and training, marketing and sales, and new technology.

PRINCIPAL RISKS AND UNCERTAINTIES

The business team has identified the following risks which are currently being monitored and managed. These items are raised at regular board meetings for review.

Materials and wages inflation in the industry is having an impact on fixing long term tendering opportunities. As such the business is monitoring the input costs of materials and labour and ensuring this is regularly addressed and updated when tendering.

There is an inherent risk of competition in the market but the Company is always looking to provide the best technological solution at the best value for the clients and is expanding our geographical footprint into other areas of the country known to have high demand for our services.

The other main risk is the non-payment of clients debts but the Company regularly monitors the financial health of its Clients to ensure bad debts are not a significant issue in the Company strategic report.

SECTION 172(1) STATEMENT

The Board confirm they have carried out their s.172 duties under the Companies Act 2006. The Board

developed a detailed strategic action plan which focuses on 5 key areas: Health & Safety, Turnover growth, increased profitability, People and Innovation.

These areas, whilst having independent actions, are also interdependent and the success of the action plan will provide benefits to multiple stakeholders ensuring our staff are valued, rewarded and motivated to provide innovative and quality solutions to our Clients.

EMPLOYEE ENGAGEMENT STATEMENT

The company is committed to maintaining high levels of employee engagement and clear, consistent communication across all teams. We achieve this through a range of initiatives, including regular one-to-one meetings, personalised learning and development plans to support our future leaders, and comprehensive onboarding programmes for new joiners. Our Dunton Academy offers continuous training and upskilling opportunities, while regular town halls ensure everyone stays informed and connected to the company's vision.

To widen our reach and keep communication flowing, we utilise WhatsApp groups and in-house newsletters, ensuring important updates and achievements are shared across the business. We also celebrate individual and team successes through our Glimpse of Brilliance awards, recognising and rewarding outstanding contributions and fostering a culture of appreciation and engagement.

ENGAGEMENT WITH OTHER STAKEHOLDERS

Customers

The Company works closely and collaboratively with our customers to ensure effective and efficient delivery of our services that meet their specific needs. We believe open communication at all stages of the works is vital to ensure our customers receive the outcome they are happy with.

Suppliers

The Company has a number of national framework agreements with key suppliers which provides visibility and consistency for those suppliers as well as ensuring we have access to the key products and services we require. The Company operates out of national client sites and recognises the importance of working with local smaller suppliers ensuring the local regions will benefit economically from our presence there.

Community

The Company has a well-established apprenticeship programme providing an excellent training programme. Both the Company and its employees provide regular support and donations to local charities.

SUSTAINABILITY STATEMENT

At Dunton, sustainability is embedded in our long-term strategy and day-to-day operations. We recognise our responsibility to operate in a way that minimises environmental impact, supports our people and communities, and upholds strong ethical standards. Our approach is guided by a commitment to environmental stewardship, social responsibility, and robust governance (ESG).

Environmental:

We are actively working to reduce our carbon footprint through improved energy efficiency, waste reduction, and responsible resource management across all our sites. We continue to explore and invest in sustainable technologies and practices that contribute to long-term environmental resilience.

Social:

Our people are central to our success. We are committed to creating an inclusive, supportive, and safe workplace where everyone can thrive. Initiatives such as mental health and wellbeing workshops help support this.

We also collaborate with local charities, organising company wide events for fundraising efforts.

Governance:

Dunton maintains high standards of corporate governance, ensuring transparency, accountability, and ethical decision-making. We regularly review our practices to remain compliant with evolving regulatory requirements and best practices.

Sustainability is not a standalone goal - it is an integral part of how we deliver long-term value for our stakeholders, now and into the future.

FUTURE DEVELOPMENTS

The strategic priorities of the business are to build robust control systems and deliver projects that really focus on our unique selling points. The goal is to increase top-line growth and enhance profitability. The business will also focus on innovation at every operational level and particularly drive new technology development in soil and waste remediation. The group investment in the business, new waste treatment facilities and networks will help support both our future growth plans and optimal value for our customers.

ON BEHALF OF THE BOARD:

Mr N A Roe - Director

3 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of remediation activities and other waste management services.

DIVIDENDS

The total distribution of dividends paid during the year ended 31 December 2024 was NIL.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

Mr M D Deary

Mr M Lacazedieu

Mr N A Roe

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Advance Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr N A Roe - Director

3 September 2025

Opinion

We have audited the financial statements of Dunton Environmental Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

- Enquiry of management and those charged with governance around actual and potential litigation and claims;

- Reviewing minutes of meetings of those charged with governance;

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

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

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

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

Jennifer Tobin FCCA (Senior Statutory Auditor)

for and on behalf of Advance Audit Limited

Statutory Auditor

71/73 Hoghton Street

Southport

Merseyside

PR9 0PR

3 September 2025

TURNOVER

3

13,732,962

7,085,800

Cost of sales

10,199,131

6,367,408

GROSS PROFIT

3,533,831

718,392

Administrative expenses

2,954,327

2,843,645

579,504

(2,125,253

)

Other operating income

482,686

637,044

OPERATING PROFIT/(LOSS)

5

1,062,190

(1,488,209

)

Interest payable and similar expenses

6

259,188

192,143

PROFIT/(LOSS) BEFORE TAXATION

803,002

(1,680,352

)

Tax on profit/(loss)

7

(4,658

)

(405,219

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

807,660

(1,275,133

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

807,660

(1,275,133

)

FIXED ASSETS

Tangible assets

8

703,580

1,372,058

CURRENT ASSETS

Debtors

9

6,243,518

3,923,852

Cash at bank and in hand

869,856

830,679

7,113,374

4,754,531

CREDITORS

Amounts falling due within one year

10

5,106,154

3,819,586

NET CURRENT ASSETS

2,007,220

934,945

TOTAL ASSETS LESS CURRENT LIABILITIES

2,710,800

2,307,003

CREDITORS

Amounts falling due after more than one year

11

2,325,107

2,728,970

NET ASSETS/(LIABILITIES)

385,693

(421,967

)

CAPITAL AND RESERVES

Called up share capital

15

100

100

Retained earnings

385,593

(422,067

)

SHAREHOLDERS' FUNDS

385,693

(421,967

)

The financial statements were approved by the Board of Directors and authorised for issue on 3 September 2025 and were signed on its behalf by:

Mr N A Roe - Director

Mr M Lacazedieu - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

853,066

853,166

Changes in equity

Total comprehensive income

-

(1,275,133

)

(1,275,133

)

Balance at 31 December 2023

100

(422,067

)

(421,967

)

Changes in equity

Total comprehensive income

-

807,660

807,660

Balance at 31 December 2024

100

385,593

385,693

1.	STATUTORY INFORMATION

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

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Going concern

The Company's business model results in a positive working capital cycle which generates sufficient cash flows to fund the business. The Company does show a net asset position at 31 December 2024. The directors have reviewed the current performance and prepared cash flow forecasts for the next 12 months. The realisation of these forecasts may be affected by a number of factors, including changes in customer behaviour, however, the directors are confident that the Company has adequate resources to continue its operations for the foreseeable future and has the financial backing of its parent company.

For these reasons, they continue to adopt the going concern basis in preparing the financial statements. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company's ultimate parent undertaking, Vinci S.A. includes the Company in its consolidated financial statements. The consolidated financial statements of Vinci S.A. are prepared in accordance with International Financial Reporting Standards as adopted by the EU and are available to the public and may be obtained from the address given in note 16. In these financial statements, the Company is considered to be a qualifying entity (for the purposes of this FRS) and has applied the exemptions available under FRS 102 in respect of the following disclosures:

- Reconciliation of the number of shares outstanding from the beginning to end of the period;

- Cash Flow Statement and related notes; and

- Key Management Personnel compensation.

As the consolidated financial statements of Vinci S.A. include the equivalent disclosures, the Company has also taken the exemptions under FRS 102 available in respect of the following disclosures:

- Certain disclosures required by FRS 102.26 Share Based Payments; and,

- The disclosures required by FRS 102.11 Basic Financial Instruments and FRS 102.12 Other Financial Instrument Issues in respect of financial instruments not falling within the fair value accounting rules of Paragraph 36(4) of Schedule 1.

The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements.

The Company proposes to continue to adopt the reduced disclosure framework of FRS 102 in its next financial statements.

Related party exemption

As the company is a wholly-owned subsidiary of Soletanche Freyssinet S.A., the company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to labour and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

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

Leasehold improvements - straight line over the useful life of the asset

Plant and machinery - straight line over the useful life of the asset

Fixtures and fittings - straight line over the useful life of the asset

Computer equipment - straight line over the useful life of the asset

Motor vehicles - straight line over the useful life of the asset

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to income 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 lease asset are consumed.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

3.

TURNOVER

The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the company.

4.	EMPLOYEES AND DIRECTORS

The average number of persons employed by the Company (including directors) during the year was as follows:

Number of employees

2024

2023

Employees

52

52

52

52

The aggregate payroll costs of these persons were as follows:

2024

2023

Wages and salaries

2,674,661

2,642,824

Social security costs

297,423

285,994

Other pension costs

99,179

93,020

3,071,263

3,021,838

2024

2023

£

£

Directors' remuneration

170,097

147,636

5.	OPERATING PROFIT/(LOSS)

The operating profit (2023 - operating loss) is stated after charging/(crediting):

2024

2023

£

£

Depreciation - owned assets

304,565

196,001

Depreciation - assets on hire purchase contracts

-

96,861

Profit on disposal of fixed assets

(13,113

)

(61

)

Foreign exchange differences

(78

)

1,467

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Loan interest

257,859

184,322

Hire purchase

1,329

7,821

259,188

192,143

7.

TAXATION

Analysis of the tax credit

The tax credit on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

(139,072

)

-

Deferred tax

134,414

(405,219

)

Tax on profit/(loss)

(4,658

)

(405,219

)

Reconciliation of total tax credit included in profit and loss

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

2024

2023

£

£

Profit/(loss) before tax

803,002

(1,680,352

)

Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.500%)

200,751

(394,883

)

Effects of:

Expenses not deductible for tax purposes

382

3,030

Depreciation in excess of capital allowances

13,107

9,239

Adjustments to tax charge in respect of previous periods

(13,490

)

1,817

Change in rate of tax

-

(24,422

)

Research and development

(205,408

)

-

Total tax credit

(4,658

)

(405,219

)

8.	TANGIBLE FIXED ASSETS

Fixtures

Leasehold

Plant and

and

improvements

machinery

fittings

£

£

£

COST

At 1 January 2024

671,253

2,608,860

301,652

Additions

-

9,974

-

Disposals

-

(1,492,544

)

-

At 31 December 2024

671,253

1,126,290

301,652

DEPRECIATION

At 1 January 2024

231,398

1,788,455

203,379

Charge for year

79,294

164,363

59,696

Eliminated on disposal

-

(1,118,657

)

-

At 31 December 2024

310,692

834,161

263,075

NET BOOK VALUE

At 31 December 2024

360,561

292,129

38,577

At 31 December 2023

439,855

820,405

98,273

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 January 2024

33,429

30,071

3,645,265

Additions

-

-

9,974

Disposals

-

-

(1,492,544

)

At 31 December 2024

33,429

30,071

2,162,695

DEPRECIATION

At 1 January 2024

19,904

30,071

2,273,207

Charge for year

1,212

-

304,565

Eliminated on disposal

-

-

(1,118,657

)

At 31 December 2024

21,116

30,071

1,459,115

NET BOOK VALUE

At 31 December 2024

12,313

-

703,580

At 31 December 2023

13,525

-

1,372,058

The carrying value of assets purchased through hire purchase agreements is £12,313 (2023: £274,862).

9.

DEBTORS

2024

2023

£

£

Amounts falling due within one year:

Trade debtors

961,433

505,308

Amounts owed by group undertakings

71,436

-

Amounts owed by associates

-

172,007

Work in progress

2,358,327

2,518,152

Other debtors

24,910

-

Retentions

436,392

-

Tax

139,072

-

VAT

148,929

48,150

Deferred tax asset

286,126

420,540

Prepayments

105,841

259,695

4,532,466

3,923,852

Amounts falling due after more than one year:

Amounts owed by group undertakings

1,711,052

-

Aggregate amounts

6,243,518

3,923,852