REGISTERED NUMBER: 07468643 (England and Wales)

SER Contractor Ltd

Strategic Report, Director's Report and

Financial Statements

for the Year Ended 31 December 2024

Page

Company Information

1

Strategic Report

2

Director's Report

4

Independent Auditors' Report

5

Income Statement

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTOR:

C Serban

REGISTERED OFFICE:

Hunters Hall Farm

Epping Upland

Eppimg

Essex

CM16 6PL

REGISTERED NUMBER:

07468643 (England and Wales)

AUDITORS:

Gravita Audit II Ltd

Chartered Accountants & Statutory Auditors

Aldgate Tower

2 Leman Street

London

E1 8FA

The director presents his strategic report on the company for the year ended 31 December 2024.

BUSINESS MODEL

Our core business is carrying out building repairs which primarily involves the supply of contractors and building materials to carry out the building contract to an agreed specification of works for an agreed price.

The charge to the Client is calculated to include site based labour costs, non-site based management and supervision costs, materials and machinery costs, training costs, overheads and an operating surplus.

The key components of the business model leading to profit are:-

- Marketing to generate quotations and tender opportunities.

- The preparation of quotations and tender submissions.

- Client presentations to win business.

- Staff training and general compliance.

- Regular Client liaison to ensure satisfactory delivery of service and best practice and value at all times.

- Administration support.

PRINCIPAL OBJECTIVES AND STRATEGY

Our principal objectives are to provide "Best Value" to our Clients. Our strategy to achieve our principal objectives includes understanding our Clients' needs and managing their expectations, managing and developing our workforce by paying wages correctly and on time, and providing all staff with a safe working environment and full training and support at all times.

REVIEW OF BUSINESS

The gross profit of the company has decreased by 4% to 20% which is primarily due to the company carrying out more work which was labour orientated rather than material orientated. Turnover increased by 19% to £27.73m in the year. Operating profit decreased to £2,161,588 (2023:£3,302,131) reflecting similar administrative expenses in the year.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risk and uncertainty in the coming year relates to the ability of the company to obtain materials for use in our contracts and we are confident we will be able to.

SUMMARY OF KEY PERFORMANCE INDICATORS

The Director is committed to the monitoring of Key Performance Indicators and consider the following three to be of high importance.

- Turnover increased in the year by 19% to £27.73m.

- Gross margin - During the year this decreased from 24% to 20%.

- Net Operating Profit decreased by £1,140,543 to £2,161,588.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company uses financial instruments, other than derivatives, comprising cash and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to finance the companies operations.

The company has no interests in the trade of financial instruments, interest rate swaps or forward interest rate agreements.

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

Price risk

The company seeks to minimise price risk by agreeing prices of goods and services into contracts to avoid price fluctuations due to competitive pressures. The company does not hold any listed security investments and therefore has no exposure to securities price risk.

Credit risk

The company has implemented policies that require appropriate credit checks on potential customers before sales are made. Where debt finance is utilised, this is subject to pre-approval by the Director and such approval is limited to financial institutions with good credit ratings. The amount of exposure to any individual counterparty is subject to a limit, which is reassessed from time to time by the Director.

Interest rate risk

Interest and charges are agreed with lenders in order to minimise the companies expenditure.

Capital management risk

The companies objectives when managing capital are to safeguard the companies ability to continue as a going concern, so that it can continue to provide returns for the shareholder.

The company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure the company may adjust the amount of dividends paid to the shareholder. The company mainly monitors capital by ensuring that annual interest payments have been adequately estimated and planned to meet the necessary repayments to the lender on a timely basis.

FUTURE DEVELOPMENTS

The 2024 successful performance will continue into the future with an expected increase in contracts. The company is always looking for new opportunities which will result in further growth.

ON BEHALF OF THE BOARD:

C Serban - Director

11 September 2025

The director presents his report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company continued to be that of building contracting.

DIVIDENDS

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £2,436,412. The director does not recommend payment of a final dividend.

DIRECTOR

C Serban held office during the whole of the period from 1 January 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

- select suitable accounting policies and then apply them consistently;

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

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

continue in business.

The director is 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. He is 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 OF DISCLOSURE TO AUDITOR

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 company's auditor 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 company's auditor is aware of that information.

AUDITORS

Gravita Audit II Ltd were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

C Serban - Director

11 September 2025

Opinion

We have audited the financial statements of SER Contractor Ltd (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, 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 director's 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 director 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 director is 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 director's report for the financial year for which the financial

statements are prepared is consistent with the financial statements; and

- the strategic report and the director's report 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 director's 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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the director's responsibilities statement set out on page 4, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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 an Auditors' 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence,

capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other

management, and from our commercial knowledge and experience of the property industry;

- we focused on specific laws and regulations which we considered may have a direct material effect on the

financial statements or the operations of the company, including the Companies Act 2006.

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of

management, legal team and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to

instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- understanding the business model as part of the control and business environment;

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of

actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of

potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims;

- enquiring of management of actual and potential non-compliance with laws and regulations; and

- reviewing correspondence with HMRC and enquiring with the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment by for example forgery, or intentional misrepresentation or through collusion. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

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 Auditors' 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 Auditors' 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.

Bashir Khan ACCA (Senior Statutory Auditor)

for and on behalf of Gravita Audit II Ltd

Chartered Accountants & Statutory Auditors

Aldgate Tower

2 Leman Street

London

E1 8FA

12 September 2025

TURNOVER

3

27,739,618

23,327,168

Cost of sales

22,160,597

17,505,864

GROSS PROFIT

5,579,021

5,821,304

Administrative expenses

3,456,683

2,519,173

2,122,338

3,302,131

Other operating income

4

39,250

-

OPERATING PROFIT

6

2,161,588

3,302,131

Interest receivable and similar income

7

44,163

5,019

2,205,751

3,307,150

Interest payable and similar expenses

8

27,056

20,015

PROFIT BEFORE TAXATION

2,178,695

3,287,135

Tax on profit

9

583,941

788,345

PROFIT FOR THE FINANCIAL YEAR

1,594,754

2,498,790

FIXED ASSETS

Tangible assets

11

763,312

597,391

CURRENT ASSETS

Stocks

12

4,730,006

3,522,308

Debtors

13

2,045,832

3,838,579

Cash at bank and in hand

2,305,251

1,487,807

9,081,089

8,848,694

CREDITORS

Amounts falling due within one year

14

8,535,845

7,171,058

NET CURRENT ASSETS

545,244

1,677,636

TOTAL ASSETS LESS CURRENT LIABILITIES

1,308,556

2,275,027

CREDITORS

Amounts falling due after more than one year

15

(244,925

)

(406,250

)

PROVISIONS FOR LIABILITIES

18

(171,934

)

(135,422

)

NET ASSETS

891,697

1,733,355

CAPITAL AND RESERVES

Called up share capital

19

1

1

Retained earnings

20

891,696

1,733,354

SHAREHOLDERS' FUNDS

891,697

1,733,355

The financial statements were approved by the director and authorised for issue on 11 September 2025 and were signed by:

C Serban - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

1

1,160,798

1,160,799

Changes in equity

Profit for the year

-

2,498,790

2,498,790

Total comprehensive income

-

2,498,790

2,498,790

Dividends

-

(1,926,234

)

(1,926,234

)

Balance at 31 December 2023

1

1,733,354

1,733,355

Changes in equity

Profit for the year

-

1,594,754

1,594,754

Total comprehensive income

-

1,594,754

1,594,754

Dividends

-

(2,436,412

)

(2,436,412

)

Balance at 31 December 2024

1

891,696

891,697

1.	COMPANY INFORMATION

SER Contractor Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Hunters Hall Farm, Epping Upland, Epping, Essex, CM16 6PL.

2.	ACCOUNTING POLICIES

2.1 Accounting convention

These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006.

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 financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

- Section 7 'Statement of Cash Flows': Presentation of a statement of cash flow and related notes and disclosures;

- Section 33 'Related Party Disclosures': Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of SER Holdings Limited. These consolidated financial statements are available from its registered office, Hunters Hall Farm, Epping Upland, Epping, Essex, CM16 6PL.

2.2 Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

2.3 Turnover

Revenue comprises building contractor services, rental income and sale of properties net of value added tax.

Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to the consideration by reference to the value of the work performed. Revenue not billed to clients is included in debtors and payments on account in excess of the relevant amount of revenue are included in creditors. Fee income that is contingent on events outside the control of the firm is recognised when the contingent event occurs.

Revenue from the sale of properties are accounted for on an exchange of unconditional contracts, namely where contracts are exchanged and where appropriate, construction is complete. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts and value added tax.

Rental income is recognised at the fair value of the rents received or receivable based on the rent agreements and to the extent that it is probable that the economic benefits will flow to the company and it can be reliably measured.

2.4 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:

Plant and equipment 25% straight line

Fixtures and fittings 25% straight line

Computers 33% straight line

Motor vehicles 25% reducing balance

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.

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

2.5 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.

2.6 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

2.7 Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' 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.

Other financial assets

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.

Impairment of financial assets

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.

Derecognition of financial assets

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.

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.

2.7 Financial instruments - continued

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

2.8 Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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 company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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 profit and loss account, 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 when the company has 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.

2.9 Leases

As lessee

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 profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

As lessor

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

2.10 Retirement benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

2.11 Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

2.12 Equity instruments

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

2.13 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.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.12.24

31.12.23

£

£

Building contractors

26,983,918

23,262,851

Sale of properties

735,000

-

Other

20,700

64,317

27,739,618

23,327,168

An analysis of turnover by geographical market is given below:

31.12.24

31.12.23

£

£

United Kingdom

27,739,618

23,327,168

27,739,618

23,327,168

4.	OTHER OPERATING INCOME

The company also received £44,163 (2023: £5,019) of interest income in the year.

5.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

410,664

346,597

Social security costs

38,862

31,921

Other pension costs

11,618

10,691

461,144

389,209

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

31.12.24

31.12.23

Total

11

9

31.12.24

31.12.23

£

£

Director's remuneration

12,576

12,608

Director's pension contributions to money purchase schemes

190

193

6.	OPERATING PROFIT

The operating profit is stated after charging:

31.12.24

31.12.23

£

£

Depreciation - owned assets

155,513

107,381

Depreciation - assets on hire purchase contracts

81,375

-

Loss on disposal of fixed assets

3,618

24,633

Auditors' remuneration

28,000

11,250

7.

INTEREST RECEIVABLE AND SIMILAR INCOME

31.12.24

31.12.23

£

£

Deposit account interest

44,163

5,019

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£

£

Bank interest

241

145

HMRC interest & penalties

4,445

-

Loan

12,588

19,870

Hire purchase

9,782

-

27,056

20,015

9.

TAXATION

Analysis of the tax charge

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

31.12.24

31.12.23

£

£

Current tax:

UK corporation tax

547,429

753,089

Deferred tax

36,512

35,256

Tax on profit

583,941

788,345

Reconciliation of total tax charge included in profit and loss

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

31.12.24

31.12.23

£

£

Profit before tax

2,178,695

3,287,135

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

544,674

772,477

Effects of:

Expenses not deductible for tax purposes

13,436

50,020

Capital allowances in excess of depreciation

(93,765

)

(64,487

)

Adjustments to tax charge in respect of previous periods

23,862

-

Group relief

-

(5,579

)

Depreciation on assets not qualifying for tax allowances

59,222

-

Other permanent differences

-

658

Deferred tax

36,512

35,256

Total tax charge

583,941

788,345

10.

DIVIDENDS

31.12.24

31.12.23

£

£

Ordinary share of £1

Interim

2,436,412

1,926,234

11.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2024

326,998

29,683

596,360

95,787

1,048,828

Additions

157,840

20,000

224,173

16,414

418,427

Disposals

-

-

(27,902

)

(64,242

)

(92,144

)

At 31 December 2024

484,838

49,683

792,631

47,959

1,375,111

DEPRECIATION

At 1 January 2024

23,496

19,086

324,756

84,099

451,437

Charge for year

119,134

7,795

96,792

13,167

236,888

Eliminated on disposal

-

-

(12,284

)

(64,242

)

(76,526

)

At 31 December 2024

142,630

26,881

409,264

33,024

611,799

NET BOOK VALUE

At 31 December 2024

342,208

22,802

383,367

14,935

763,312

At 31 December 2023

303,502

10,597

271,604

11,688

597,391

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

£

COST

Additions

43,500

Reclassification/transfer

282,000

At 31 December 2024

325,500

DEPRECIATION

Charge for year

81,375

At 31 December 2024

81,375

NET BOOK VALUE

At 31 December 2024

244,125

12.

STOCKS

31.12.24

31.12.23

£

£

Stocks

4,730,006

3,522,308