REGISTERED NUMBER: 05279323 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2025

for

Swietelsky Construction Company Ltd

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

C S Goldie

M Zeidler

Mrs A E Cox

SECRETARY:

Mrs A E Cox

REGISTERED OFFICE:

Holybrook House

63 Castle Street

Reading

RG1 7SN

REGISTERED NUMBER:

05279323 (England and Wales)

INDEPENDENT AUDITORS:

Gillespie & Anderson

Statutory Auditors

Chartered Accountants

147 Bath Street

Glasgow

G2 4SN

The directors present their strategic report for the year ended 31 March 2025.

Founded in Austria, the Swietelsky group of companies is one of the leading railway constructors in Europe. Swietelsky Construction Company Ltd was established in the UK in 2004 to provide track renewal and repair services to Network Rail through a joint operation with Babcock Rail.

REVIEW OF BUSINESS

In the year ended 31 March 2025 turnover has increased by 7% (2024 - 12%). The average number of staff increased by 10% (2024 - 10%) in the year.

The profit before tax has decreased to £2,590,282 (2024 - £4,948,835). This decrease is primarily due to profit on the sale of a machine in the previous year and increased staff costs.

A final dividend in respect of the year ended 31 March 2024 of £2,500,000 was paid in the current year (2024 - £2,300,000) reducing shareholders' equity to £13,518,387 (2024 - £14,134,769).

Financial key performance indicators

2025

2024

Change

£

£

%

Turnover

25,591,950

23,945,221

+7%

Operating profit

2,776,705

5,164,292

-46%

Profit before tax

2,590,282

4,948,835

-48%

Shareholder's equity

13,518,387

14,134,769

-4%

Other key performance indicators

Current assets as % of current liabilities (%)

184

229

Average number of employees

125

114

Future developments

The SB Rail Joint Venture successfully retendered the Framework Contract with Network Rail which has an expected contract duration of at least 8 years and commenced 1st April 2025. The company continues to invest in its operations and the current work bank is strong. Swietelsky continue to have the ability to undertake Major Overhauls for external customers. The business is currently involved in the East Coast Digital Programme which is the introduction of digital signalling to the East Coast Main Line. The directors continue to seek opportunities in the UK and are optimistic that new work will be generated.

PRINCIPAL RISKS AND UNCERTAINTIES

Competitive risk

In order to win new and retain existing contracts the company must tender competitively in a market which contains a number of large companies who are willing to reduce margins to win work. Once the contracts have been won they are normally of a duration of at least five years, but in some cases are being increased to up to 10 years, after which time they are usually retendered.

Legislative risk

The railway construction and maintenance business is highly regulated, and health and safety is of critical importance. Any failures in its operating processes could cost the company its reputation and also incur heavy financial penalties. For this reason great emphasis is placed throughout the company on operating to the highest standards of safety and quality.

Credit risk

Since the company's revenues are subject to detailed contracts which provide for regular cash flow, and the customers are large public institutions, the credit risk is not high.

Liquidity risk

Cash flow is strong as evidenced by high levels of cash and cash equivalents after dividends paid in the year. Cash and debtors at 31 March 2025 are 1.7 times current liabilities (2024 - 2.2 times).

Foreign exchange risk and hedging

Most business activities are undertaken locally and in GBP. Where there are significant foreign currency capital commitments derivative financial instruments are used to manage foreign exchange currency risk.

ON BEHALF OF THE BOARD:

C S Goldie - Director

25 September 2025

The directors present their report with the financial statements of the company for the year ended 31 March 2025.

DIVIDENDS

A final dividend of £2,500,000 in respect of the year ended 31 March 2024 was paid during the year. After the year end, a dividend of £1,800,000 was paid in respect of the year ended 31 March 2025.

FUTURE DEVELOPMENTS

The directors have elected to provide an indication of likely future developments in the business within the strategic report.

EVENTS SINCE THE END OF THE YEAR

After the year end, the company purchased plant & machinery of £7,650,000, which was financed in part by a loan from the parent company of £4,500,000.

DIRECTORS

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

C S Goldie

M Zeidler

Other changes in directors holding office are as follows:

Mrs A E Cox - appointed 1 July 2024

FINANCIAL INSTRUMENTS

The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are largely conducted in sterling, with a policy of covering any significant foreign currency capital commitments with suitable currency contracts to minimise exposure to exchange rate volatility.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Gillespie & Anderson, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C S Goldie - Director

25 September 2025

Opinion

We have audited the financial statements of Swietelsky Construction Company Ltd (the 'company') for the year ended 31 March 2025 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 March 2025 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 four, 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:

Our approach and assessment were 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.

Enquire of management and review supporting documentation concerning the company's policies and procedures relating to:

- identify, evaluate and comply with laws and regulations and their awareness of any instances of non-compliance;

- detect and respond to the risks of irregularities, fraud and their knowledge of any actual, suspected or alleged fraud;

- internal controls established to mitigate risks related to, unusual items, fraud or non-compliance with laws and regulations.

Obtain an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included the Companies Act 2006 and Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", together with health and safety regulations, railways regulations, environmental regulations, money laundering regulations, employment legislation and data protection legislation.

Discuss among the engagement team how and where irregularities might occur in the financial statements and potential indicators of fraud. Identify potential audit risks in relation to income recognition, authorisation of expenses and possible management override of controls.

Communicate relevant identified laws and regulations and potential irregularity risks to all engagement team members and remain alert to any indications of unusual items, fraud or non-compliance with laws and regulations throughout the audit.

Review Minutes of Meetings of those charged with governance, Reports and correspondence with HMRC and legal advisers.

Perform audit testing which covers the audit assumptions of: existence, completeness, rights and obligations, accuracy and valuation in respect of income recognition and expenditure incurred.

Evaluate the overall presentation, structure and content of the financial statements, including disclosures, by performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to an irregularity or fraud. Agree financial statement disclosures to underlying documents.

Assess whether the financial statements represent the underlying transactions and events in a manner that achieves compliance with relevant laws and regulations.

To address the risk of fraud through management override of controls and management bias, we: assess the rationale behind significant or unusual transactions identified through audit testing and assess where management judgement used in determining accounting estimates were indicative of potential bias.

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.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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.

Alastair Stewart BA (Hons) CA (Senior Statutory Auditor)

for and on behalf of Gillespie & Anderson

Statutory Auditors

Chartered Accountants

147 Bath Street

Glasgow

G2 4SN

25 September 2025

TURNOVER

3

25,591,950

23,945,221

Cost of sales

18,096,964

15,360,776

GROSS PROFIT

7,494,986

8,584,445

Administrative expenses

4,718,281

3,420,153

OPERATING PROFIT

5

2,776,705

5,164,292

Interest receivable and similar income

7

79,729

73,367

2,856,434

5,237,659

Interest payable and similar expenses

8

266,152

288,824

PROFIT BEFORE TAXATION

2,590,282

4,948,835

Tax on profit

9

706,664

1,180,458

PROFIT FOR THE FINANCIAL YEAR

1,883,618

3,768,377

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,883,618

3,768,377

FIXED ASSETS

Tangible assets

11

14,315,432

16,401,631

Investments

12

1

1

14,315,433

16,401,632

CURRENT ASSETS

Stocks

13

1,092,194

752,778

Debtors

14

8,964,641

4,908,059

Cash at bank and in hand

11,033,137

12,252,085

21,089,972

17,912,922

CREDITORS

Amounts falling due within one year

15

11,477,127

7,832,500

NET CURRENT ASSETS

9,612,845

10,080,422

TOTAL ASSETS LESS CURRENT LIABILITIES

23,928,278

26,482,054

CREDITORS

Amounts falling due after more than one year

16

(8,797,026

)

(10,617,708

)

PROVISIONS FOR LIABILITIES

20

(1,612,865

)

(1,729,577

)

NET ASSETS

13,518,387

14,134,769

CAPITAL AND RESERVES

Called up share capital

21

100,000

100,000

Retained earnings

22

13,418,387

14,034,769

SHAREHOLDERS' FUNDS

13,518,387

14,134,769

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2025 and were signed on its behalf by:

C S Goldie - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

100,000

12,566,392

12,666,392

Changes in equity

Profit for the year

-

3,768,377

3,768,377

Total comprehensive income

-

3,768,377

3,768,377

Dividends

-

(2,300,000

)

(2,300,000

)

Balance at 31 March 2024

100,000

14,034,769

14,134,769

Changes in equity

Profit for the year

-

1,883,618

1,883,618

Total comprehensive income

-

1,883,618

1,883,618

Dividends

-

(2,500,000

)

(2,500,000

)

Balance at 31 March 2025

100,000

13,418,387

13,518,387

1.	STATUTORY INFORMATION

Swietelsky Construction Company Ltd is a private company, limited by shares, registered in England and Wales. The company's registered number is 05279323 and registered office address is Holybrook House, 63 Castle Street, Reading, Berkshire, RG1 7SN. The nature of the company's operations and its principal activities are set out in the strategic report.

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, apart from where certain items are measured at fair value in accordance with the accounting policies outlined below.

The financial statements are presented in Sterling, which is the functional currency of the company, and rounded to the nearest £1.

Going concern

After making appropriate enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

The SB Rail Joint Venture successfully retendered the Framework Contract with Network Rail which has a duration of at least 8 years commencing 1 April 2024. Our work bank has not diminished, our revenue has increased in comparison to previous financial years due to investment, and our cash flow is strong. We are still able to meet all our capital commitments and our fiscal obligations.

The directors have prepared forecasts including scenarios with reduction in revenue to contractual minimums and these indicate that the company has sufficient cash liquidity to meet its obligations as they fall due for a period of at least 12 months from approval of the financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirements of paragraphs 29.28(b) and 29.29;

•

the requirement of paragraph 33.7.

Significant judgements and estimates

The Directors have made judgements, estimates and assumptions that affect the amounts reported within the financial statements during the year. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. The Directors' estimates, assumptions and judgements that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the financial statements are addressed and detail is provided below.

Classification of leases

The company is party to leasing arrangements as a lessee. Accounting for leases is determined by judging whether the lease is a finance lease or operating lease. Management look at the substance of the transaction and terms and conditions of the leasing arrangements in judging whether all the risks and rewards of ownership are transferred.

Turnover provision

Turnover is recognised based on costs incurred in the period. The company and its Joint Operation partner complete final accounting for each financial period subsequent to the year-end. The company estimates a provision for turnover being the amount that could be reclaimed by the Joint Operations partner. This provision is calculated by applying a percentage to turnover recognised in the financial period. The percentage is based on management's expectation and is a key source of estimation uncertainty.

Stock impairment

The company holds a stock of parts to maintain its machines. Stock parts held which relate to older machines are written down at percentages determined by management. This is calculated based on the proportion of stock estimated to relate to these older machines before applying management's relevant write down percentages. The percentages are based on management's expectation and this is a key source of estimation uncertainty.

Turnover

Turnover represents net sales of goods and services, excluding value added tax and discounts offered. Income is recognised when the company becomes entitled to the income, it can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the entity.

In respect of contracts for on-going services, turnover represents the value of work done in the period, including estimates of amounts not invoiced. Turnover in respect of contracts for on-going services is recognised by reference to the value of costs incurred for the period, making allowances for future uncertainties and warranty works.

Tangible fixed assets

Tangible fixed assets are measure at cost less accumulated depreciation and any accumulated impairment losses.

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

Buildings - 14% or 33% straight line method

Plant and machinery - 10% - 33% straight line method

Office equipment - 33% straight line method

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

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

Basic financial instruments

The company holds basic financial instruments including cash at bank, debtors and creditors.

Cash and cash equivalents comprise cash at bank and on hand, foreign currency on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. A bank overdraft would be shown within current liabilities.

Trade and other debtors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less losses for bad debts except where the effect of discounting would be immaterial. In such cases, trade and other debtors are stated at cost less losses for bad debts.

Trade and other creditors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate unless the effect of discounting would be immaterial. In such cases, trade and other creditors are stated at cost.

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

Employee benefits

The total cost of employee benefits to which employees have become entitled as a result of service rendered to the entity during the reporting period are recognised and charged to the profit and loss account in the period to which they relate.

Provisions for liabilities

A provision is initially recognised when there is an obligation at the balance sheet date as the result of a past event, it is probable that there will be the transfer of funds in settlement and the amount of the obligation can be estimated reliably. The provision is subsequently measured by placing a charge against the provision only for expenditure for which the provision was originally recognised.

Joint operations and jointly controlled entities

A joint operation is a joint arrangement in which the parties that share joint control have rights to the assets, and obligations for the liabilities, relating to the arrangement. This includes situations where the parties benefit from the joint activity through a share of output, rather than by receiving a share of the results of trading. In relation to its interest in a Joint Operation, the company recognises: its share of assets and liabilities; revenue from the sale or use of its share of the output; and its share of expenses. All such amounts are measured in accordance with the terms of the arrangement, which is usually in proportion to the companies operations within the Joint Operation. These amounts are recorded in the Companies financial statements on the appropriate lines.

Investments in jointly controlled entities are measured at cost less any accumulated impairment losses.

3.

TURNOVER

The company's activities consist solely of provision of railway construction and maintenance services in the United Kingdom.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

9,471,341

8,124,543

Social security costs

1,051,018

923,955

Other pension costs

397,356

338,804

10,919,715

9,387,302

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

2025

2024

Administration

30

26

Track Maintenance

95

88

125

114

2025

2024

£

£

Directors' remuneration

764,360

512,622

Directors' pension contributions to money purchase schemes

17,671

8,904

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

1

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

291,289

280,286

Remuneration for directors includes a bonus pool that has not yet been allocated or finalised.

5.	OPERATING PROFIT

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

2025

2024

£

£

Hire of plant and machinery

1,996,967

1,753,633

Other operating leases

177,228

169,160

Depreciation - owned assets

1,844,958

1,744,793

Depreciation - assets on finance leases

1,110,667

1,110,668

Profit on disposal of fixed assets

-

(1,025,220

)

Foreign exchange differences

26,077

7,323

6.	AUDITORS' REMUNERATION

2025

2024

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

36,300

35,000

Taxation compliance services

6,550

6,000

7.

INTEREST RECEIVABLE AND SIMILAR INCOME

2025

2024

£

£

Deposit account interest

79,729

69,997

Corporation tax interest

-

3,370

79,729

73,367

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

115,996

137,002

Corporation tax interest

20,425

-

Leasing

129,731

151,822

266,152

288,824

9.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

823,376

1,239,225

Deferred tax

(116,712

)

(58,767

)

Tax on profit

706,664

1,180,458

UK corporation tax has been charged at 25% (2024 - 25%).

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:

2025

2024

£

£

Profit before tax

2,590,282

4,948,835

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

647,571

1,237,209

Effects of:

Expenses not deductible for tax purposes

59,093

48,829

Income not taxable for tax purposes

-

(256,305

)

Depreciation in excess of capital allowances

-

209,492

Deferred tax - origination and reversal of timing differences

-

(58,767

)

Total tax charge

706,664

1,180,458

The company expects to be within the scope of Pillar Two legislation as member of a large multinational group.

10.

DIVIDENDS

2025

2024

£

£

Ordinary shares of £1 each

Final

2,500,000

2,300,000

11.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

leasehold

machinery

fittings

Totals

£

£

£

£

COST

At 1 April 2024

442,128

30,148,229

62,335

30,652,692

Additions

-

869,426

-

869,426

At 31 March 2025

442,128

31,017,655

62,335

31,522,118

DEPRECIATION

At 1 April 2024

389,346

13,799,380

62,335

14,251,061

Charge for year

37,865

2,917,760

-

2,955,625

At 31 March 2025

427,211

16,717,140

62,335

17,206,686

NET BOOK VALUE

At 31 March 2025

14,917

14,300,515

-

14,315,432

At 31 March 2024

52,782

16,348,849

-

16,401,631

Fixed assets, included in the above, which are held under finance leases are as follows:

Plant and

machinery

£

COST

At 1 April 2024

and 31 March 2025

11,104,427

DEPRECIATION

At 1 April 2024

4,295,264

Charge for year

1,110,667

At 31 March 2025

5,405,931

NET BOOK VALUE

At 31 March 2025

5,698,496

At 31 March 2024

6,809,163

12.	FIXED ASSET INVESTMENTS

Interest

in joint

venture

£

COST

At 1 April 2024

and 31 March 2025

1

NET BOOK VALUE

At 31 March 2025

1

At 31 March 2024

1