REGISTERED NUMBER: 01818688 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 December 2024

for

T Balfe Construction Limited

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

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

DIRECTORS:

S D Balfe

S R Balfe

D E Balfe

SECRETARY:

D E Balfe

REGISTERED OFFICE:

Richmond House

Brant Road

FULBECK

Grantham

Lincolnshire

NG32 3JF

REGISTERED NUMBER:

01818688 (England and Wales)

AUDITORS:

Nicholsons Audit (Statutory Auditor)

Newland House

The Point

Weaver Road

LINCOLN

Lincolnshire

LN6 3QN

The principal activity of the company throughout the reporting period was groundwork and the construction of residential property.

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

The company continues to construct residential properties and operate as a subcontractor to the UK's major housing developers. In addition to these areas of work, the company is now a preferred contractor to two local councils, constructing, and managing their social housing and commercial building projects. It remains fully focused in these areas during 2025 and continues to be active with private commercial construction projects forecast for 2025.

During the year, the business faced further unprecedented external pressures. The industry continued to face rising prices of materials, supply chains unable to keep up with demand, rising cost of labour and a slowing down of the housing market which all had a continued impact on profitability. During the period we have successfully negated the full impact on the company by these external factors by renegotiating and implementing contract price increases.

.

During 2024, there remained uncertainty for the UK economy not only for the current year but also moving into 2025, with high costs, inflation, and a slowing in the housing market. These factors forced our clients and the company to operate at reduced output levels. During 2025 we have seen stronger demand from customers.

The company prepared for economic uncertainty, putting measures in place to ensure the company returns to profitability for future periods. This is supported by a strong first 8 months performance in 2025. The management has kept borrowing down to a manageable level, keeping gearing well below what would be deemed average for the industry sector. This has helped to reduce the company's exposure to increasing interest rates.

Despite the economic climate causing a contraction in output within the industry. Sound management has allowed the company to maintain a robust working capital and reserves. We believe with the strength of the reserves, an order book of over twice the annual turnover and a large market share in the local economy the company is well prepared to continue its trade in the future.

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company, these being gross margin, net margin, and reserves on the balance sheet. The results for the year were as follows: -

Gross margin 6.98% (2023 7.54%)

Net margin -2.16% (2023 -2.70%)

Reserves £7.5m (2023 £8.7m)

PRINCIPAL RISKS AND UNCERTAINTIES

Credit risk

The company seeks to manage its credit risk by dealing with established customers or otherwise checking the creditworthiness of new customers, establishing clear contractual relationships with those customers and by identifying and addressing any credit issues arising in a timely manner.

Interest rate risk

The company's exposure to market risk for the changes in interest rates relates primarily to its bank and finance lease borrowings. The company seeks to manage this risk using a combination of variable and fixed rates.

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short-term flexibility is achieved by overdraft facilities.

Compliance risk

The financial statements have been prepared under the requirements of FRS 102.

Overall, the directors are satisfied with the results for the year when considering the circumstances. The results demonstrate the hard work and commitment from the employees in the year as well as strong management, leadership and decision making from the directors. The directors are confident that the company will continue to perform strongly with an excellent forward order book for 2025 and beyond.

The directors nevertheless recognise there are also risks and uncertainties still, but believe the company is well placed to deal with them as they arise.

ON BEHALF OF THE BOARD:

S D Balfe - Director

29 September 2025

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

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 will be £ 570,000 .

DIRECTORS

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

S D Balfe

S R Balfe

D E Balfe

Other changes in directors holding office are as follows:

J E Boyle ceased to be a director after 31 December 2024 but prior to the date of this report.

GOING CONCERN

The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons. The directors have prepared cash flow forecasts for a period of 12 months from the date of approval of these financial statements which indicate that, taking account of reasonably possible downsides, the company will have sufficient funds to meet its liabilities as they fall due for the period. Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch.7 to be contained in the directors' report, and has done so in respect of a review of its business, its principal risks, and future developments.

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;

-	state whether applicable 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

S D Balfe - Director

29 September 2025

Opinion

We have audited the financial statements of T Balfe Construction Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss 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:

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.

Based on our understanding of the company and its industry we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations and in identifying and assessing the risk of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

- Inquiring of management and where appropriate those charged with governance as to whether the company is in compliance with laws and regulations.

- Inspecting correspondence, if any, with relevant licensing authorities.

- Communicating to our engagement team identified laws and regulations and remaining alert to any instances of non-compliance throughout our audit; and

- Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.

We also considered those laws and regulations which have a direct effect on the preparation of the financial statements such as tax legislation, the Companies Act 2006 and the reporting framework (FRS102).

Further to this, we evaluated the Director's and managements incentives and opportunities for fraudulent manipulation of the financial statements including the risk of management override of controls and determined the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular provisions around stock, work in progress and retentions, as well as estimates around the calculation of costs pertaining to revenue recognition and significant one off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

- Making enquiries of the director and management on whether they had knowledge of any actual, suspected or alleged fraud;

- Gaining an understanding of internal controls established to mitigate risks related to fraud;

- Discussing amongst the engagement team the risks of fraud;

- Addressing the risks of fraud through management override of controls by performing journal entry testing;

- Testing of assumptions and reperforming calculations; and

- Sensitivity analysis around assumptions used.

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.

JOANNE BROWN (Senior Statutory Auditor)

for and on behalf of Nicholsons Audit (Statutory Auditor)

Newland House

The Point

Weaver Road

LINCOLN

Lincolnshire

LN6 3QN

30 September 2025

TURNOVER

27,572,296

30,945,775

Cost of sales

25,646,494

28,612,917

GROSS PROFIT

1,925,802

2,332,858

Administrative expenses

2,585,900

3,238,124

(660,098

)

(905,266

)

Other operating income

163,910

202,155

OPERATING LOSS

5

(496,188

)

(703,111

)

Interest receivable and similar income

6

60,590

54,561

(435,598

)

(648,550

)

Interest payable and similar expenses

7

161,024

185,835

LOSS BEFORE TAXATION

(596,622

)

(834,385

)

Tax on loss

8

94,047

(16,689

)

LOSS FOR THE FINANCIAL YEAR

(690,669

)

(817,696

)

OTHER COMPREHENSIVE INCOME

Revaluation of freehold property

64,738

-

Deferred tax movement

(4,569

)

(55,422

)

Reverse brought forward depreciation

59,341

-

Income tax relating to components of other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

119,510

(55,422

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(571,159

)

(873,118

)

FIXED ASSETS

Tangible assets

11

2,509,517

3,186,046

Investments

12

-

-

Investment property

13

1,763,017

1,332,465

4,272,534

4,518,511

CURRENT ASSETS

Stocks

14

667,511

1,495,016

Debtors

15

9,464,628

9,638,624

Cash at bank and in hand

13,261

13,097

10,145,400

11,146,737

CREDITORS

Amounts falling due within one year

16

5,333,054

5,428,213

NET CURRENT ASSETS

4,812,346

5,718,524

TOTAL ASSETS LESS CURRENT LIABILITIES

9,084,880

10,237,035

CREDITORS

Amounts falling due after more than one year

17

(769,814

)

(668,912

)

PROVISIONS FOR LIABILITIES

21

(788,257

)

(900,155

)

NET ASSETS

7,526,809

8,667,968

CAPITAL AND RESERVES

Called up share capital

22

100

100

Revaluation reserve

23

508,842

389,332

Fair value reserve

23

943,886

594,549

Retained earnings

23

6,073,981

7,683,987

SHAREHOLDERS' FUNDS

7,526,809

8,667,968

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

S D Balfe - Director

Called up

Fair

share

Retained

Revaluation

value

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

100

8,303,500

-

1,237,486

9,541,086

Changes in equity

Total comprehensive income

-

(619,513

)

389,332

(642,937

)

(873,118

)

Balance at 31 December 2023

100

7,683,987

389,332

594,549

8,667,968

Changes in equity

Dividends

-

(570,000

)

-

-

(570,000

)

Total comprehensive income

-

(1,040,006

)

119,510

349,337

(571,159

)

Balance at 31 December 2024

100

6,073,981

508,842

943,886

7,526,809

Cash flows from operating activities

Cash generated from operations

1

334,735

1,662,267

Interest paid

(131,278

)

(134,384

)

Interest element of hire purchase payments paid

(29,746

)

(51,451

)

Finance costs paid

21,528

21,286

Tax paid

(478,222

)

273,249

Net cash from operating activities

(282,983

)

1,770,967

Cash flows from investing activities

Purchase of tangible fixed assets

(175,126

)

(177,341

)

Sale of tangible fixed assets

604,901

304,808

Interest received

60,590

54,561

Net cash from investing activities

490,365

182,028

Cash flows from financing activities

New loans in year

801,400

68,965

Loan repayments in year

(150,000

)

(1,538,275

)

Capital repayments in year

(459,284

)

-

Amount introduced by directors

1,272,435

1,105,921

Amount withdrawn by directors

(881,787

)

(1,857,293

)

Equity dividends paid

(570,000

)

-

Net cash from financing activities

12,764

(2,220,682

)

Increase/(decrease) in cash and cash equivalents

220,146

(267,687

)

Cash and cash equivalents at beginning of year

2

(636,135

)

(368,448

)

Cash and cash equivalents at end of year

2

(415,989

)

(636,135

)

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

2024

2023

as

restated

£

£

Loss before taxation

(596,622

)

(834,385

)

Depreciation charges

441,034

576,443

Profit on disposal of fixed assets

(70,201

)

(119,505

)

Gain on revaluation of fixed assets

(430,552

)

-

Finance costs

161,024

185,835

Finance income

(60,590

)

(54,561

)

(555,907

)

(246,173

)

Decrease in stocks

827,505

1,514,348

(Increase)/decrease in trade and other debtors

(123,793

)

1,363,304

Increase/(decrease) in trade and other creditors

186,930

(969,212

)

Cash generated from operations

334,735

1,662,267

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

13,261

13,097

Bank overdrafts

(429,250

)

(649,232

)

(415,989

)

(636,135

)

Year ended 31 December 2023

31.12.23

1.1.23

as restated

£

£

Cash and cash equivalents

13,097

479

Bank overdrafts

(649,232

)

(368,927

)

(636,135

)

(368,448

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

13,097

164

13,261

Bank overdrafts

(649,232

)

219,982

(429,250

)

(636,135

)

220,146

(415,989

)

Debt

Finance leases

(954,760

)

459,284

(495,476

)

Debts falling due within 1 year

(150,000

)

(325,788

)

(475,788

)

Debts falling due after 1 year

(212,500

)

(325,612

)

(538,112

)

(1,317,260

)

(192,116

)

(1,509,376

)

Total

(1,953,395

)

28,030

(1,925,365

)

1.	STATUTORY INFORMATION

T Balfe Construction 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.

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 as modified by the revaluation of certain assets.

Turnover

In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to stage of completion.

Revenue from contracts for the provision of professional 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. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Tangible fixed assets

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

Freehold property

-

2% on reducing balance

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

33% on reducing balance

Motor vehicles

-

25% on reducing balance

Freehold land is not depreciated.

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.

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.

Investment property

Investment property is property that is held to generate rental income and/or held for capital appreciation. Investment property is initially measured at cost and subsequently revalued to fair value at each reporting date with changes in fair value recognised in other comprehensive income when they arise.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present condition and location.

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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the Statement of Financial Position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the Income Statement so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

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.

Going concern

The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons. The directors have prepared cash flow forecasts for a period of 12 months from the date of approval of these financial statements which indicate that, taking account of reasonably possible downsides, the company will have sufficient funds to meet its liabilities as they fall due for the period.

Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Recoverability of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When making the assessment, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Amount recoverable on contracts

The company recognises income in relation to long term contracts in line with the requirements of FRS102 and so management are required to recognise profit as the job progresses. In order to do this management review the expected revenue and costs on a job by job basis and, once a cash inflow become probable, recognise the relevant profits on the basis of the stage of completion. Where a job is expected to make a loss then the full loss is immediately recognised in the profit and loss account.

4.	EMPLOYEES AND DIRECTORS

2024

2023

as

restated

£

£

Wages and salaries

2,384,117

2,844,416

Social security costs

265,745

301,083

Other pension costs

47,421

55,504

2,697,283

3,201,003

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

2024

2023

as

restated

Production staff

41

44

Administrative staff

18

19

Management staff

3

3

62

66