REGISTERED NUMBER: 02238872 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

FOR

A.F. CONNELL 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

16

DIRECTORS:

Mrs S W Connell

D D Connell

S Parkin

N J Thornton

REGISTERED OFFICE:

Newcombe Mill

Rosemount Estates

Halifax

West Yorkshire

HX5 0EE

REGISTERED NUMBER:

02238872 (England and Wales)

SENIOR STATUTORY AUDITOR:

Adam John Brosnan

AUDITORS:

Brosnans

Chartered Accountants

and Statutory Auditors

Birkby House

Bailiff Bridge

Brighouse

West Yorkshire

HD6 4JJ

The directors present their strategic report for the year ended 30 June 2025.

REVIEW OF BUSINESS

The results of the company for the year show a profit on ordinary activities before tax of £602,862 (2024: £717,247). The shareholders funds now show a surplus of £340,717 (2024: Deficit of £106,625) which is an improvement in reserves of £447,342.

The turnover for the year was £19,274,518 (2024: £12,801,686) and the gross margin is to 20.5% (2024: 28.7%).

The Company currently has a full order book and is trading profitably in the current year. The directors remain confident that the Company has positive prospects and will look to taking full advantage of its opportunities.

PRINCIPAL RISKS AND UNCERTAINTIES

Financial risk management objectives and policies;

The company operates in the UK and seeks to mitigate exposure to all forms of both internal and external risks.

Customers and Suppliers;

The company is not wholly dependant on any one main customer or supplier.

Credit Risk;

The company seeks to reduce risk by carrying out credit checks on new customers and operating strict credit control on its debtor ledger.

Laws and Regulations;

The company complies with all relevant laws and regulations, including health and safety and employment law, and takes its responsibilities very seriously.

Employees;

The average number of employees in the year was 88.

The company continues to be an equal opportunities employer. In employment related decisions the company complies with anti-discrimination requirements concerning matters of race, colour, national origin, marital status, sexual orientation, religious belief, age and physical or mental ability. Disabled people are given full and equal consideration for employment and their development is assisted and encouraged.

ON BEHALF OF THE BOARD:

Mrs S W Connell - Director

23 September 2025

The directors present their report with the financial statements of the company for the year ended 30 June 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of electrical and mechanical contractors.

DIVIDENDS

No dividends will be distributed for the year ended 30 June 2025.

DIRECTORS

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

Mrs S W Connell

D D Connell

S Parkin

N J Thornton

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 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, Brosnans, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs S W Connell - Director

23 September 2025

Opinion

We have audited the financial statements of A.F. Connell Limited (the 'company') for the year ended 30 June 2025 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 30 June 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.

-

based on the work undertaken in the course of the audit, the strategic report and directors' report is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.

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.

Material uncertainty related 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:

Audit response to risks identified

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

- the nature of the industry and sector, control environment and business performance;

- results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- any matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance

- detecting and responding to the risks of fraud and whether they have knowledge of any actual,

suspected or alleged fraud;

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We obtained an understanding of the legal and regulatory frameworks that the group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. In addition, we 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.

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- obtaining an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of provisions and;

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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

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

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

Use of our report

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

Adam John Brosnan (Senior Statutory Auditor)

for and on behalf of Brosnans

Chartered Accountants

and Statutory Auditors

Birkby House

Bailiff Bridge

Brighouse

West Yorkshire

HD6 4JJ

23 September 2025

TURNOVER

19,274,518

12,801,686

Cost of sales

(15,324,070

)

(9,123,931

)

GROSS PROFIT

3,950,448

3,677,755

Administrative expenses

(3,321,894

)

(2,924,170

)

628,554

753,585

Other operating income

-

7,900

OPERATING PROFIT

5

628,554

761,485

Interest payable and similar expenses

6

(25,692

)

(44,238

)

PROFIT BEFORE TAXATION

602,862

717,247

Tax on profit

7

(155,520

)

(180,073

)

PROFIT FOR THE FINANCIAL YEAR

447,342

537,174

PROFIT FOR THE YEAR

447,342

537,174

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

447,342

537,174

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

89,375

38,599

89,375

38,599

CURRENT ASSETS

Stocks

10

481,712

348,458

Debtors

11

2,531,461

4,520,204

Cash at bank

255,875

-

3,269,048

4,868,662

CREDITORS

Amounts falling due within one year

12

(2,972,625

)

(4,776,426

)

NET CURRENT ASSETS

296,423

92,236

TOTAL ASSETS LESS CURRENT LIABILITIES

385,798

130,835

CREDITORS

Amounts falling due after more than one year

13

(45,081

)

(237,460

)

NET ASSETS/(LIABILITIES)

340,717

(106,625

)

CAPITAL AND RESERVES

Called up share capital

18

200

200

Share premium

19

4,573

4,573

Retained earnings

19

335,944

(111,398

)

SHAREHOLDERS' FUNDS

340,717

(106,625

)

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2025 and were signed on its behalf by:

Mrs S W Connell - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 July 2023

200

(648,572

)

4,573

(643,799

)

Changes in equity

Total comprehensive income

-

537,174

-

537,174

Balance at 30 June 2024

200

(111,398

)

4,573

(106,625

)

Changes in equity

Total comprehensive income

-

447,342

-

447,342

Balance at 30 June 2025

200

335,944

4,573

340,717

Cash flows from operating activities

Cash generated from operations

1

694,776

127,640

Interest paid

(25,692

)

(44,238

)

Tax paid

-

1,297

Net cash from operating activities

669,084

84,699

Cash flows from investing activities

Purchase of tangible fixed assets

(79,213

)

-

Sale of tangible fixed assets

18,750

5,208

Net cash from investing activities

(60,463

)

5,208

Cash flows from financing activities

Loan repayments in year

(188,813

)

(188,814

)

Amount introduced by directors

10,210

-

Amount withdrawn by directors

-

(12,187

)

Government Grants

-

7,900

Net cash from financing activities

(178,603

)

(193,101

)

Increase/(decrease) in cash and cash equivalents

430,018

(103,194

)

Cash and cash equivalents at beginning of year

2

(174,143

)

(70,949

)

Cash and cash equivalents at end of year

2

255,875

(174,143

)

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

2025

2024

£

£

Profit before taxation

602,862

717,247

Depreciation charges

13,285

13,227

(Profit)/loss on disposal of fixed assets

(3,598

)

2,837

Government grants

-

(7,900

)

Finance costs

25,692

44,238

638,241

769,649

Increase in stocks

(133,254

)

(158,552

)

Decrease/(increase) in trade and other debtors

1,823,012

(1,589,837

)

(Decrease)/increase in trade and other creditors

(1,633,223

)

1,106,380

Cash generated from operations

694,776

127,640

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 30 June 2025

30.6.25

1.7.24

£

£

Cash and cash equivalents

255,875

-

Bank overdrafts

-

(174,143

)

255,875

(174,143

)

Year ended 30 June 2024

30.6.24

1.7.23

£

£

Bank overdrafts

(174,143

)

(70,949

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.7.24

Cash flow

At 30.6.25

£

£

£

Net cash

Cash at bank

-

255,875

255,875

Bank overdrafts

(174,143

)

174,143

-

(174,143

)

430,018

255,875

Debt

Debts falling due within 1 year

(188,814

)

1

(188,813

)

Debts falling due after 1 year

(188,813

)

188,813

-

(377,627

)

188,814

(188,813

)

Total

(551,770

)

618,832

67,062

1.	STATUTORY INFORMATION

A.F. Connell 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 (£).

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

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.

SIGNIFICANT JUDGEMENTS AND ESTIMATES

The Company accounts for contract revenue and costs in the form of work-in-progress and deferred income. These are measured based on actual costs to date and forecasted profit percent on cost, and therefore, these balances are key accounting estimates.

TURNOVER

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

REVENUE FROM CONSTRUCTION CONTRACTS

Revenue amounts of £19,274,518 (2024: £12,801,685) have been recognised in the year as revenue from construction contracts. Retentions owed from the Company as at 30 June 2025 amount to £347,712 (2024: £286,155) and retentions due to the Company amount to £573,246 (2024: £568,984).

GOODWILL

In accordance with FRS 102, the goodwill was written off within five years.

TANGIBLE FIXED ASSETS

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.

Fixtures and fittings

-

20% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

STOCKS AND WORKS IN PROGRESS

Stock is valued at the lower of cost and net realisable value.

Works in progress represents work completed by the year end but not yet billed taking account of appropriate costs.

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. In the year, a deferred tax asset has been recognised for £1,499,498 unused losses to be carried forward.

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 the profit or loss in the period to which they relate.

GRANTS RECEIVED

Grants received in the year were for the apprenticeship scheme.

OPERATING LEASE COMMITMENTS

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

3.	EMPLOYEES AND DIRECTORS

2025

2024

Wages and Salaries

3,960,961

3,912,586

Social security

446,964

378,547

Pension

279,840

243,204

4,687,765

4,534,337

The average no. of employees in the year were;

2025

2024

Director

4

4

Staff and administration

22

22

Site employees

62

65

4.	DIRECTORS' EMOLUMENTS

2025

2024

£

£

Directors' remuneration

382,667

271,455

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

Money purchase schemes

4

4

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

99,330

69,073

5.	OPERATING PROFIT

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

2025

2024

£

£

Other operating leases

243,253

169,846

Depreciation - owned assets

13,285

13,227

(Profit)/loss on disposal of fixed assets

(3,598

)

2,837

Auditors' remuneration

15,000

15,000

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

25,692

44,238

7.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Deferred tax

155,520

180,073

Tax on profit

155,520

180,073

8.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 July 2024

and 30 June 2025

185,000

AMORTISATION

At 1 July 2024

and 30 June 2025

185,000

NET BOOK VALUE

At 30 June 2025

-

At 30 June 2024

-

9.	TANGIBLE FIXED ASSETS

Fixtures

Short

and

Motor

Computer

leasehold

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 July 2024

90,693

12,023

232,041

79,926

414,683

Additions

41,684

37,529

-

-

79,213

Disposals

(90,693

)

(12,023

)

(97,618

)

-

(200,334

)

At 30 June 2025

41,684

37,529

134,423

79,926

293,562

DEPRECIATION

At 1 July 2024

90,693

12,023

193,442

79,926

376,084

Charge for year

2,084

3,749

7,452

-

13,285

Eliminated on disposal

(90,693

)

(12,023

)

(82,466

)

-

(185,182

)

At 30 June 2025

2,084

3,749

118,428

79,926

204,187

NET BOOK VALUE

At 30 June 2025

39,600

33,780

15,995

-

89,375

At 30 June 2024

-

-

38,599

-

38,599

10.

STOCKS

2025

2024

£

£

Stocks

30,000

30,000

Work-in-progress

451,712

318,458

481,712

348,458

11.

DEBTORS

2025

2024

£

£

Amounts falling due within one year:

Amounts recoverable on contract

2,225,231

3,868,338

Directors' current accounts

17,653

27,864

Tax

5,039

5,039

VAT

-

139,788

Deferred tax asset

32,634

188,154

Prepayments

149,678

139,671

2,430,235

4,368,854