The directors present the strategic report and financial statements for the 52 week period ended 29 December 2024.

J T Mackley & Co Limited is a civil engineering contractor specialising in coastal and marine construction and the water industry. The company operates mainly in the South and East of England including the London area.

The company’s long-standing reputation, collaborative and problem-solving culture and technical expertise enables it to deliver quality projects safely, on time and at realistic cost.

The strategy of the business is to continue to focus on the existing core business, a rebalancing across the market sectors (growth in water and ports) whilst pursuing growth into neighbouring geographies. The company is working within a growth strategy covering the period to 2028.

There is a medium-term plan for investment in new and replacement plant and equipment, which is supported by the Van Oord Group (100% shareholder) and which is funded through positive cash flow.

Review of the year 2024

The company delivered good trading results in 2024 with strong turnover and profit levels that are considered to be good for the market. One legacy poor performing project, which started in 2019, was completed within cost forecast enabling any further detrimental impact on results to be avoided in the year; the write-down having been taken in prior years.

EBITDA improved from 7.7% of turnover in 2023 to 10.8% in 2024. The trajectory for turnover is upward and the volume of contracted work is unusually high, driven by one notable multi-year reservoir project.

Progress of the Mackley sustainability goals has been good with an increase in the EV fleet both for business and private use. Improvements to the workshops has reduced energy usage alongside the installation of grey water tanks for vehicle cleaning. Carbon reporting is maintained to UK Government standards and reflected in our requirements from the supply chain.

Our markets continue to be very competitive and winning work at tight margins demands good project delivery and risk management. In Mackley, open and collaborative client communications have helped post-tender negotiations to build client contingency funds and allowed timely interventions to mitigate potential over-spend to the benefit of both parties.

Sustained investment in flood and coastal erosion risk management, measures to address water scarcity, the awarding of freeport status to a number of sites plus investment in renewable energy have all had a positive impact on our sector. The high utilisation of our in-house plant and equipment together with good management of our overheads underpinned the positive result for the company.

The decline in the proportion of work for the Environment Agency – either under the outgoing Marine and Coastal Framework (MCF) or other procurement vehicles – has stabilized and we continue to be sought out for specialist and local support.

The PFI consortium Pevensey Coastal Defence Ltd, of which the company is a partner for beach frontage works for the Environment Agency, continues to be successful for all of the PFI shareholders and has provided the business with a long term maintenance contract which has less than one year to completion in May 2025.

A realistic target has been set for turnover in 2025 and, at the time of this report, the company is on course to meet this level. Overheads will continue to be strategically managed, with new systems and tools, and the plant fleet will continue to be substantially improved.

We continue to benefit from our geographical branches, with established bases in Maidstone, Eastleigh and the Isle of Wight.

Key performance indicators

The directors consider that the key performance indicators and risk mitigation measures below enable the business to be managed robustly and strategically and support the organisational growth plans.

In 2024 the company did not pay any dividend to its UK parent, to enable funding of plans to refurbish and extend the head office plus a digitalization strategy.

The Senior Leadership team (which includes the directors) meets monthly to monitor the progress of the business and to evaluate and discuss business objectives, principal risks and KPIs, and to monitor strategy. This is augmented by quarterly meetings with parent company executives. This process ensures that any risks and uncertainties are identified and understood by stakeholders as appropriate.

Principal risks and uncertainties

The directors have identified the following principal risks and uncertainties affecting the company:

Market risk - The company can be affected by delays in construction programmes and uncertainties in the client’s design and planning. We manage this by engaging with the client and the client’s representatives at the earliest opportunity, before the project is let out to tender if possible, with the aim of being a strategic partner throughout the whole project phase. This includes targeting Early Contractor Involvement (ECI) support roles. The number of our ECI contracts in 2024 has increased significantly with benefits to come in future years.

Tendering on price alone remains competitive and in order to win work we have to explore other initiatives such as innovation, quality, and added value, as part of this partnering initiative. Mackley functions well as a collaborative partner to clients and we consider this to be a particular strength.

A significant proportion of the company’s workload has been with a single reservoir project in Havant, and it is important that we protect and grow the core business around this one major project of National significance. Recruitment for the project has targeted the long-term growth potential for the business in the water sector with key staff moving into roles during start-up. We regularly monitor data on potential customers, opportunities and competitors. Accordingly, we have developed a list of target clients and assigned client account managers with responsibility for developing business with each of them. New growth strands will be pursued in line with nascent marketing plans in 2025.

Health, Safety and Quality risk – the company can be affected by compliance and reputational risks. We manage this by continuing to maintain a fully certified Integrated Management System for the management standards ISO9001, ISO14001 and OHSAS18001, within each of which there are dedicated processes that enable us to monitor and manage our organisation’s business effectively.

During 2024 there were two RIDDOR-reportable incidents. The directors recognise that accidents are always possible and are committed to avoiding work related injuries and promoting wellbeing through effective planning, training and ongoing communication. A team of Mental Health First Aiders is established in the business and proved to be a vital support during the cost of living crisis.

Environment risk - as a civil engineering contractor the company can be affected by environmental risks. We manage this through our accreditation to ISO 14001 and have effective systems in place which are subject to regular review. We have vast experience in numerous environmental fields, and continue to maintain high standards of commitment and management. The company continues its commitment to fuel efficient engines and biodegradable oils and has a strategy in place for electric, hybrid and low-emission vehicles. The company strives to continually improve its environmental performance through our ongoing sustainability initiatives.

Procurement risk – the company can be affected by inflation, currency, supply chain failure and any other risks. Inflation risks are mitigated by the (short) length of the contracts we operate and the contract conditions, and we apply protective clauses to tenders where the project period is in excess of 12 months. Currency risk is mitigated by including an item in the Risk Register for each project at time of tender, and by using our international parent to support us with hedging. Materials and energy prices have stabilised in 2024 compared to earlier volatile periods post-Covid and the earlier part of the Ukraine conflict.

People risk – the biggest risk is staff turnover and possible shortage of key resources. We mitigate this by maintaining relationships with our supply chain, particularly to manage staffing requirements, and by strategic and targeted training processes. A succession planning programme has been implemented to replace known retirees and to strengthen and expand the management team. We use the Investors in People standard, along with internal measures, to benchmark our employee engagement strategy. The HR department has led the development and implementation of career pathways, succession, recruitment and retention strategies in the year.

As referred to in the accounting policies note, the company continues to operate as a going concern.

On behalf of the board

The directors present their report and financial statements for the 52 week period ended 29 December 2024. The comparative period is also a 52 week period of 2 January 2023 to 31 December 2023.

The results for the Period are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

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

The directors believe that there are currently no major future developments requiring disclosure.

The auditor, Sumer Audit, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

The company operates management policies designed to minimise its exposure to financial risk:

Credit risk

The company operates a number of policies and procedures designed to mitigate credit risk. In particular, before entering into a transaction with a customer a detailed credit review is undertaken to determine whether or not, in the opinion of the directors, the customer has the ability to meet its debts as they fall due.

Liquidity and cash flow risk

The company operates a range of policies to ensure there is sufficient liquidity and cash to meet its liabilities. Regular cash flow forecasts are prepared to ensure the company is able to pay its debts as they fall due.

Price risk

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required to be contained in the directors' report. It has done so in respect of the company's exposure to price risk and disclosure of its principal activity.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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.

We have audited the financial statements of J T Mackley & Co Limited (the 'company') for the Period ended 29 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 29 December 2024 and of its profit for the Period then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial Period for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

• adequate accounting records have not been kept, 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.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

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

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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

• Obtaining 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 and operations;

• Obtaining an understanding of the company’s policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud;

• Discussing among the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud through our knowledge and understanding of the company and our sector-specific experience.

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: health & safety, employment law, long-term contract valuations, completeness of accruals and compliance with the UK Companies Act.

In addition to the above, our procedures to respond to risks identified included the following:

• Making enquiries of management about any known or suspected instances of non-compliance with laws and regulations and fraud;

• Reviewing minutes of contract meetings and ensuring controls are adhered to;

• Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to amounts recoverable on long-term contracts, retentions, contract valuations; and the depreciation rates and methods of property, plant and equipment.

• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transaction's reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the 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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

J T Mackley & Co Limited is a private company limited by shares incorporated in England and Wales. The registered office is Bankside House, Henfield Road, Small Dole, Henfield, West Sussex, BN5 9XQ.

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 £1.

The financial statements have been prepared on 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 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.

The company has taken advantage of the exemption under section 401 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

J T Mackley & Co Limited is a wholly owned subsidiary of the ultimate parent Van Oord NV. The registered office is Schaardijk 211, Postbus 8574, 3009 AN Rotterdam, The Netherlands. The results of J T Mackley & Co Limited are included in the consolidated financial statements of Van Oord NV which are available from http://annualreport.vanoord.com.

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have considered relevant information, including the company’s principal risks and uncertainties, the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment.  Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.true

Revenue is recognised at the fair value of the consideration received or receivable for construction services provided in the normal course of business, and is shown net of VAT and trade discounts.

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

Property, plant and equipment is initially measured at cost and subsequently measured at cost or valuation, 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:

Depreciation on leasehold improvements has not been recognised as the assets are not yet in use at the year end.

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.

Interests in subsidiaries and associates are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

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.

Inventories 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 inventories to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories 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.

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a construction contract cannot be estimated reliably, contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.

Highly material and significant contracts by size and or that are predicted to be delivered over several years are considered to be in scope for group reporting purposes. The directors consider that it is not possible to reliably predict the final outcome until the contract is at least 35% complete. As a result all such in scope contracts are treated on the basis of a breakeven reporting position until the final outcome can be reliably measured.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

Cash and cash equivalents are basic financial assets and include deposits held at call with banks.

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

Financial instruments are recognised in the company's statement of financial position when the group becomes party to the contractual provisions of the instrument.

Basic financial assets, which include trade and other receivables 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.

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

Trade payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

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

The tax currently payable is based on taxable profit for the year.

Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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 non-current 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.

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the Period they are payable.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Revenue derived from construction services include a judgement of the stage of completion at the period end. This judgement is used to determine the amount of revenue and profit to recognise in relation to each contract, which is still ongoing at the end of the reporting period. The stage of completion is calculated based on the assessment of qualified quantity surveyors of the costs incurred for work performed in conjunction with expected final contract costs and overall profitability.

The provisions for losses on contracts are included for expected losses made on contracts in progress at the period end date.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation policies have been set with regards to the expected useful economic life of the assets and the expected residual value.

Within exceptional items in the accounts are non-capital costs associated with the repairs and development of Bankside House.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (31 December 2023: 2).

The actual charge for the Period can be reconciled to the expected charge for the Period based on the profit or loss and the standard rate of tax as follows:

These financial statements are separate company financial statements for J T Mackley & Co Limited.

Details of the company's subsidiaries at 29 December 2024 are as follows:

Details of the company's associates at 29 December 2024 are as follows:

These financial statements are separate company financial statements for J T Mackley & Co Limited.

Details of the company's joint ventures at 29 December 2024 are as follows:

The joint venture has been accounted for under the gross equity method. The company's share of the joint venture's profits for the period ended 29 December 2024 were £nil (31 December 2023: £nil).

At 29 December 2024, retentions held by customers for contract work amounted to £726,742 (31 December 2023: £1,690,187). These retentions are recognised in trade receivables. Included within these retentions are amounts of £268,334 (31 December 2023: £558,043) which are due for settlement after more than 12 months.

Advances received from customers for contract work amounted to £946,712 (31 December 2023: £885,085). These are recognised in current liabilities.

In addition to the cash held on the statement of financial position, within amounts owed from group undertakings is £2,459,473 (31 December 2023: £2,178,585) that is in relation to J T Mackley cash held in a pooling account operated by the group.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The directors have considered the deferred tax assets and liabilities notes above and concluded that it is not possible to state the estimated assets and liabilities which will reverse within the next 12 months. This is due to the level of reversal being dependent on events which are not yet known.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights.

This reserve represents the excess of the issue price over the par value on shares issued less transaction costs.

There is a cross guarantee and bond between the company, Van Oord Dredging and Marine Contractors B.V, Jones Bros. Ruthin (Civil Engineering) Co. Limited, Jones Bros. Ruthin Co Limited and Future Water MJJV Limited dated 7 July 2023 in relation to one ongoing contract with the guarantors each guaranteeing their subsidiaries performance, obligations liabilities under the shareholder's joint venture agreement within Future Water MJJV Limited. The extent of the contingent liability at the year-end amounted to £74,057,613.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

During the year the company raised sales invoices totalling £143,053 (31 December 2023: £169,777) and rendered management fees totalling £4,500 (31 December 2023: £4,500) to Team Van Oord Limited, a joint venture between the company, Van Oord UK Limited, Keir MG Limited and Royal Haskoning DHV. In addition, management fees of £66,052 (31 December 2023: £nil) were paid to the same related party. Within other payables are other creditors of £13,926 (31 December 2023: £25,627). Within debtors, there are contract sales debtors of £10,800 and withing trade creditors, there is a debit balance of £62,140 (31 December 2023: £nil) .

During the year the company had raised sales invoices totalling £1,774,952 (31 December 2023: £1,519,136) with Pevensey Coastal Defence Limited, an associate. In addition, management fees of £9,814 (31 December 2023: £9,813) and non-contract sales of £95,411 (31 December 2023: £82,828) were received. Within trade debtors are contract debtors of £136,910 (31 December 2023: £332,337) year end.

During the year the company raised sales invoices totalling £11,637,742 (31 December 2023: £7,881,222) and management fees receivable totalling £308,476 (31 December 2023: £167,954 ) to Future Water MJJV Limited a joint venture between the company and Jones Bros. Ruthin (Civil Engineering) Co. Limited. Within trade debtors are contract debtors of £1,979,639 (31 December 2023: £1,756,048 ) and other debtors of £1,000,706 (31 December 2023: £638,176) at the year end.

At the year end date, the directors owed the company £3,000 (31 December 2023: £7,234).

The company is a 100% subsidiary of Van Oord UK Limited.

The ultimate parent company is Van Oord NV, a company controlled by its directors and no one party has ultimate control.

During the year the directors have reviewed the treatment in the comparative period of exceptional refurbishment costs that were recognised in the statement of recognised income. On further review of the costs in question and considering the wider project as a whole the directors have concluded that £180,397 of the costs are more appropriately recognised as capital costs as "assets under construction". As a result profit before tax and equity has increased by this same amount. There is no impact on taxable profit for the period as these costs were originally disallowed for corporation tax purposes.