REGISTERED NUMBER: 05456138 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

K & N SURFACING LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

M Kirby

N N Neseyif

SECRETARIES:

Ms K Jenkins

A Snelgrove

REGISTERED OFFICE:

Addington Business Centre

24 Vulcan Way

New Addington

Surrey

CR0 9UG

REGISTERED NUMBER:

05456138 (England and Wales)

AUDITORS:

Edwards Chartered Accountants

Statutory Auditor

409-411 Croydon Road

Beckenham

Kent

BR3 3PP

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

REVIEW OF BUSINESS

The company continues to successfully provide asphalt surfacing, construction and maintenance services in all sectors. The principal activities are the provision of skilled surfacing operatives.

RESULTS AND PERFORMANCE

The results of the company for the year show a profit on the ordinary activities before tax of £4,627,397. The shareholders' funds of the company total £10,422,496.

The performance of the company during the year has produced encouraging results.

BUSINESS ENVIRONMENT

The company's main clients include many of the biggest contractors throughout the UK.

STRATEGY

The company's success is dependent on the service quality, pricing, and ongoing management of its costs.

The company will continue to consolidate its position and concentrate its efforts on achieving maximum growth in its existing market segments and also hope to provide new services with more margins. We aim to improve efficiency in all areas of our operations with technology, innovation and creativity.

FUTURE DEVELOPMENTS

We are hoping the company will increase its turnover in the forthcoming year and continue to be profitable. The performance of the company will be linked to the Government and local authorities' decisions on how to spend their budgets.

ON BEHALF OF THE BOARD:

N N Neseyif - Director

15 September 2025

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

DIVIDENDS

Interim dividends per share were paid as follows:

£26,920

- 31 March 2024

£2,380

- 30 June 2024

£11,410

- 1 July 2024

£14,880

- 30 September 2024

£21,120

- 31 December 2024

£76,710

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £ 3,068,400 .

Periodic dividends were voted during the year, totalling £76,710 per share.

DIRECTORS

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

M Kirby

N N Neseyif

CHARITABLE DONATIONS AND EXPENDITURE

During the year, the company made charitable donations of £7,100 (2023: £2,635).

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, Edwards Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

N N Neseyif - Director

15 September 2025

Opinion

We have audited the financial statements of K & N Surfacing Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 three, 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:

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 can detect irregularities, including fraud is detailed below:

Our approach was as follows:

a) We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that relate to include the Companies Act 2006, and relevant tax legislation. In addition, we have considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

b) We communicated identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

c) We examined the company's regulatory and legal correspondence and discussed with management any known or suspected instances of fraud or non-compliance with laws and regulations.

d) We assessed the risks of material misstatement in respect of fraud as follows:

i) We considered the use of remuneration incentive schemes and performance targets for management and did not identify any additional fraud risks

ii) The audit team discussed whether there were any areas that were susceptible to misstatement as part of their fraud discussion.

iii) In addressing the risk of management override of controls, we tested the appropriateness of journal entries. We also challenged assumptions and judgements made by management in their significant accounting estimates and judgements.

iv) We incorporated an element of unpredictability in the selection of the nature, timing and extent of our audit procedures.

Based on the results of our risk assessment we designed our audit procedures to identify and to address material misstatements in relation to fraud, including:

Designing audit procedures to address, for example:

a) The possibility of fraudulent or corrupt payments made through third parties.

b) The risk of bribery and corruption.

c) The opportunity to segregate duties within the entity.

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above.

Using our general commercial and sector experience and through discussions with management, we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements as well as those arising from management's own assessment of the risks that irregularities may occur either because of fraud or error.

The engagement partner considers the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations.

Under ISA 240 (UK) there is a presumed risk that revenue may be misstated due to the improper recognition of revenue. To address this risk, we obtained an understanding of the company's revenue recognition policies and compared these to the accounting standard, performed a walkthrough to confirm our understanding of the processes and controls through which the business initiates, records, processes and reports revenue transactions.

We tested a sample of revenue transactions to supporting evidence and tested, on a sample basis, revenue related balances in the balance sheet.

We considered the extent to which the audit was considered capable of detecting irregularities: There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.

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.

John Duggan (Senior Statutory Auditor)

for and on behalf of Edwards Chartered Accountants

Statutory Auditor

409-411 Croydon Road

Beckenham

Kent

BR3 3PP

15 September 2025

TURNOVER

21,020,803

19,120,552

Cost of sales

13,628,034

14,190,159

GROSS PROFIT

7,392,769

4,930,393

Administrative expenses

2,787,986

2,314,027

4,604,783

2,616,366

Other operating income

28,450

27,900

OPERATING PROFIT

4

4,633,233

2,644,266

Interest receivable and similar income

143,394

95,541

4,776,627

2,739,807

Interest payable and similar expenses

5

149,230

67,049

PROFIT BEFORE TAXATION

4,627,397

2,672,758

Tax on profit

6

1,058,175

397,873

PROFIT FOR THE FINANCIAL YEAR

3,569,222

2,274,885

PROFIT FOR THE YEAR

3,569,222

2,274,885

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,569,222

2,274,885

FIXED ASSETS

Tangible assets

8

5,344,614

4,826,029

CURRENT ASSETS

Debtors

9

4,873,776

4,937,843

Cash at bank and in hand

4,307,682

4,322,677

9,181,458

9,260,520

CREDITORS

Amounts falling due within one year

10

3,008,689

3,090,143

NET CURRENT ASSETS

6,172,769

6,170,377

TOTAL ASSETS LESS CURRENT LIABILITIES

11,517,383

10,996,406

CREDITORS

Amounts falling due after more than one year

11

1,094,887

1,074,732

NET ASSETS

10,422,496

9,921,674

CAPITAL AND RESERVES

Called up share capital

13

40

40

Retained earnings

14

10,422,456

9,921,634

SHAREHOLDERS' FUNDS

10,422,496

9,921,674

The financial statements were approved by the Board of Directors and authorised for issue on 15 September 2025 and were signed on its behalf by:

N N Neseyif - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

40

9,148,349

9,148,389

Changes in equity

Dividends

-

(1,501,600

)

(1,501,600

)

Total comprehensive income

-

2,274,885

2,274,885

Balance at 31 December 2023

40

9,921,634

9,921,674

Changes in equity

Dividends

-

(3,068,400

)

(3,068,400

)

Total comprehensive income

-

3,569,222

3,569,222

Balance at 31 December 2024

40

10,422,456

10,422,496

Cash flows from operating activities

Cash generated from operations

1

5,643,271

4,183,219

Interest paid

(51,934

)

-

Interest element of hire purchase payments paid

(97,296

)

(67,049

)

Tax paid

(866,206

)

(557,164

)

Net cash from operating activities

4,627,835

3,559,006

Cash flows from investing activities

Purchase of tangible fixed assets

(1,815,443

)

(2,045,729

)

Sale of tangible fixed assets

14,230

3,542

Interest received

143,394

95,541

Net cash from investing activities

(1,657,819

)

(1,946,646

)

Cash flows from financing activities

Capital repayments in year

83,389

419,693

Equity dividends paid

(3,068,400

)

(1,501,600

)

Net cash from financing activities

(2,985,011

)

(1,081,907

)

(Decrease)/increase in cash and cash equivalents

(14,995

)

530,453

Cash and cash equivalents at beginning of year

2

4,322,677

3,792,224

Cash and cash equivalents at end of year

2

4,307,682

4,322,677

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit before taxation

4,627,397

2,672,758

Depreciation charges

1,276,980

1,029,534

Loss on disposal of fixed assets

5,649

33,689

Finance costs

149,230

67,049

Finance income

(143,394

)

(95,541

)

5,915,862

3,707,489

Decrease/(increase) in trade and other debtors

64,067

(500,879

)

(Decrease)/increase in trade and other creditors

(336,658

)

976,609

Cash generated from operations

5,643,271

4,183,219

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

4,307,682

4,322,677

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

4,322,677

3,792,224

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank and in hand

4,322,677

(14,995

)

4,307,682

4,322,677

(14,995

)

4,307,682

Debt

Finance leases

(1,752,318

)

(83,389

)

(1,835,707

)

(1,752,318

)

(83,389

)

(1,835,707

)

Total

2,570,359

(98,384

)

2,471,975

1.	STATUTORY INFORMATION

K & N Surfacing 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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

in accordance with the property

Long leasehold

-

in accordance with the property

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on cost

Motor vehicles

-

33% on cost

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

5,632,141

4,522,290

Social security costs

(32,234

)

1,184,593

Other pension costs

146,921

74,000

5,746,828

5,780,883

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

2024

2023

Administrative and direct staff

98

86

2024

2023

£

£

Directors' remuneration

35,200

24,000

4.	OPERATING PROFIT

The operating profit is stated after charging:

2024

2023

£

£

Hire of plant and machinery

526,393

472,251

Equipment hire

97,252

76,336

Depreciation - owned assets

771,125

565,931

Depreciation - assets on hire purchase contracts

505,854

463,604

Loss on disposal of fixed assets

5,649

33,689

Auditor's remuneration

8,500

8,000

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Interest on overdue taxes

51,934

-

Hire purchase

97,296

67,049

149,230

67,049

6.

TAXATION

Analysis of the tax charge

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

2024

2023

£

£

Current tax:

UK corporation tax

1,058,175

397,873

Tax on profit

1,058,175

397,873

7.

DIVIDENDS

2024

2023

£

£

Ordinary shares of £1 each

Interim

3,068,400

1,501,600

8.	TANGIBLE FIXED ASSETS

Freehold

Long

Plant and

property

leasehold

machinery

£

£

£

COST

At 1 January 2024

431,171

409,247

5,918,991

Additions

-

-

1,186,665

Disposals

-

-

(177,500

)

At 31 December 2024

431,171

409,247

6,928,156

DEPRECIATION

At 1 January 2024

-

7,094

2,728,658

Charge for year

-

3,274

744,512

Eliminated on disposal

-

-

(177,500

)

At 31 December 2024

-

10,368

3,295,670

NET BOOK VALUE

At 31 December 2024

431,171

398,879

3,632,486

At 31 December 2023

431,171

402,153

3,190,333

Fixtures

and

Motor

fittings

vehicles

Totals

£

£

£

COST

At 1 January 2024

76,315

2,191,277

9,027,001

Additions

6,856

621,922

1,815,443

Disposals

-

(149,380

)

(326,880

)

At 31 December 2024

83,171

2,663,819

10,515,564

DEPRECIATION

At 1 January 2024

66,781

1,398,439

4,200,972

Charge for year

6,140

523,053

1,276,979

Eliminated on disposal

-

(129,501

)

(307,001

)

At 31 December 2024

72,921

1,791,991

5,170,950

NET BOOK VALUE

At 31 December 2024

10,250

871,828

5,344,614

At 31 December 2023

9,534

792,838

4,826,029

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

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1 January 2024

3,869,713

167,560

4,037,273

Additions

917,312

-

917,312

Transfer to ownership

(902,763

)

(167,560

)

(1,070,323

)

At 31 December 2024

3,884,262

-

3,884,262

DEPRECIATION

At 1 January 2024

1,419,340

103,127

1,522,467

Charge for year

505,854

-

505,854

Transfer to ownership

(596,215

)

(103,127

)

(699,342

)

At 31 December 2024

1,328,979

-

1,328,979

NET BOOK VALUE

At 31 December 2024

2,555,283

-

2,555,283

At 31 December 2023

2,450,373

64,433

2,514,806