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

The principal activity of the company was that of providing access, encapsulation and sheeting. Principal activities are mainly carried out in the Marine sector.

SCA Group is a dynamic, specialist access, scaffolding, and containment business headquartered on the South Coast of the UK. We deliver contract scaffolding and associated services on a national scale through our dedicated divisions and strategic partnerships. These carefully cultivated relationships, along with our unwavering focus on quality and safety, have driven sustained growth and significant expansion across multiple sectors.

The directors continued to focus on the company’s core strategy of increasing operational activity through a collaborative approach with our clients to make their projects successful. We also continue to provide the best access solutions to our clients through the highest possible levels of service, operational support and safety standards.

Financial key performance indicators

Method of calculation

Gross profit margin = Gross profit/Sales expressed as a percentage

EBITDA = Earnings before interest, tax, depreciation and amortisation

Operating cash flow = Cash generated from operating activities

SCA Group have delivered a much-improved financial performance with a top line growth of over 30% and more than doubling EBITDA. These improvements can be attributed to the following:

Debt – CBILS loan repaid in full one year early and other loans reduced significantly in the year.

Assets – Considerable investments in scaffolding to position SCA Group for existing opportunities and future growth. All investments in Capex funded from operating cash.

Cash – Operating cash flow increased substantially following excellent working capital management.

SCA Group has delivered strong operational and financial results during the year. Our Marine division, which operates across several major UK shipyards, continues to perform well. The long-term project in Govan, Scotland has progressed in line with expectations and will gather pace as the shipbuilding programme ramps up. We also maintain established support contracts at shipyards in Falmouth and the North East, working with long-standing clients. Our forward order book provides a high level of secured turnover for the years ahead, underpinning our strategic focus on the Marine Defence sector, with substantial orders already in place through to 2032.

The Non-Marine division also enjoyed a successful year, securing several major contracts for cladding replacement and Ministry of Justice prison works. The division continues to target large, well-funded projects across sectors such as schools, universities, and prisons.

We are delighted to once again receive the RoSPA Gold Award for Health and Safety. This prestigious recognition from the Royal Society for the Prevention of Accidents reflects our continued commitment to safeguarding our people, clients, and contractors, and highlights the high standards we maintain across all areas of our work.

Safety remains a central focus for SCA Group, and we are proud to have maintained strong performance with our key clients, all of whom share a robust safety culture that we actively support. During the year, we introduced a fully digital, real-time safety reporting system, embraced by both our workforce and management, which will help drive further improvements in the years ahead.

Now in its 69th year, the RoSPA Awards are recognised worldwide as the largest and most respected health and safety awards programme. With almost 2,000 entries annually from over 50 countries, achieving Gold places SCA Group among the leading organisations setting the highest standards in accident prevention.

Overall, the Group continues to perform strongly, with good visibility of its order backlog and a healthy pipeline of opportunities extending many years ahead.

SCA Group places great importance on transparent financial reporting, providing high-quality management information to support effective decision-making and business development, while also enabling close monitoring of risks. The Group maintains a dedicated focus on working capital, with debtors, creditors, and both short-term and long-term cash flow forecasts managed on a regular basis.

The continued success of the business is subject to a number of risks, outlined below. A comprehensive risk management framework is in place to regularly review, mitigate, and monitor these risks. The principal risks and uncertainties facing the Group are grouped under four key areas: Health and Safety, Competition, Financial, and External factors.

Health and safety

SCA Group works in close partnership with its clients, maintaining a strong focus on safety compliance and culture. We are committed to not only meeting but exceeding all legal and industry standards.

Competition

SCA Group operates predominantly in the marine and public sectors, delivering a range of long-term contracts. Our aim is to be our clients’ contractor of choice by consistently providing high standards of quality, safety, and on-site performance. Strong working relationships underpin repeat business and long-term partnerships, contributing to the success of our clients as well as our own. The company continues to invest in renewing, expanding, and developing its plant and equipment, ensuring we deliver the most innovative and efficient access solutions available.

Financial

Credit risk is managed through the company’s established credit policy, under which all new clients are subject to thorough credit checks using external ratings. Credit scores and ratings are reviewed regularly, supported by our own client knowledge. The company’s exposure to foreign exchange and interest rate risks is limited.

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 June 2025.

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

Ordinary dividends were paid amounting to £275,000. The directors do not recommend payment of a further dividend.

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

The company’s principal financial instruments comprise short and medium term borrowings and cash. The main purpose of these instruments is to raise funds for operational and capital expenditure, largely funded from operating cash flow. The company also holds financial instruments such as trade receivables and trade payables arising directly from its operations. The company does not engage in derivative transactions or trading activities.

The principal risks associated with these financial instruments are interest rate risk, liquidity risk, and credit risk. The board reviews and approves policies for managing each of these risks, summarised below:

Interest rate risk

The directors review all interest rates to ensure they are commercially competitive and do not expose the company to significant risk.

Liquidity risk

The company aims to maintain an appropriate balance in its principal financial instruments to ensure continuity of funding and flexibility. This is managed through cash at bank, bank borrowings, and asset finance facilities.

Credit risk

The company trades only with creditworthy third parties. Clients wishing to trade on credit terms are subject to credit vetting procedures. Receivable balances are monitored continuously, and as a result, the company’s exposure to bad debts is not significant.

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; and

• 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.

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.

We have audited the financial statements of SCA Group Limited (the 'company') for the year ended 30 June 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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 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.

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 year 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We considered the potential for non-compliance with laws and regulations, including fraud, that could have a material effect on the financial statements. Our audit procedures were designed to respond to the risk of material misstatement in the financial statements, whether due to fraud or error. However, the primary responsibility for the prevention and detection of fraud rests with those charged with governance.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, we considered the nature of the company, the sector in which it operates, its control environment, and the company’s policies and procedures regarding compliance with laws and regulations. We also made enquiries of management and those charged with governance concerning any actual or suspected non-compliance and considered whether there was any evidence of such through our audit procedures.

Based on our understanding of the company and its environment, we assessed the areas of the financial statements most susceptible to material misstatement due to fraud to be:

• Revenue recognition, particularly the completeness and timing of service contracts;

• Existence and valuation of fixed assets, to ensure assets are real and appropriately valued;

• Management override of controls, through the posting of manual journals and adjustments; and

• Use of estimates and judgements, particularly in relation to fixed asset depreciation policies and revenue recognition

These areas were considered susceptible either due to the level of management judgement involved or the opportunity for intentional misstatement. Our audit procedures were designed accordingly to respond to these risks.

As part of this process, we considered both those laws and regulations that have a direct impact on the preparation of the financial statements (such as the Companies Act 2006 and UK tax legislation) and those with an indirect effect that are fundamental to the entity’s operations. These included regulations relevant to the construction and scaffolding industry, such as health and safety legislation and employment law. We also considered other relevant laws, including data protection legislation and environmental regulations, to the extent that non-compliance might reasonably be expected to impact the financial statements.

Our audit procedures included:

• Revenue recognition: Test a sample of service contracts and perform cut-off and analytical procedures to ensure revenue is complete, accurate, and recorded in the correct period.

• Existence and valuation of fixed assets: Verify a sample of assets through physical inspection, ownership documentation, and review of depreciation and impairment calculations.

• Management override of controls: Review and test manual journals and other adjustments for unusual, unsupported, or irregular entries.

• Use of estimates and judgements: Assess the reasonableness and supporting evidence for key estimates, including depreciation and revenue recognition assumptions.

• Compliance with laws and regulations: Review adherence to relevant legislation, including health and safety, to ensure non-compliance does not materially impact the financial statements.

Because of the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though our audit was properly planned and performed in accordance with auditing standards. This is particularly the case in relation to irregularities involving collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

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 profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 13 to 26 form part of these financial statements.

The notes on pages 13 to 26 form part of these financial statements.

SCA Group 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.

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 have been prepared under the historical cost convention.

The comparative figures have been restated to conform with the current year’s presentation. The changes are immaterial and have no impact on profit or net assets

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 £.

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

• the requirement of paragraph 33.7.

Atruet 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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover represents the value of services provided in the normal course of business, net of discounts and value added tax. Revenue from the rendering of services is recognised when the significant risks and rewards of ownership have been transferred to the customer and is measured by reference to the stage of completion of the contract, when this can be measured reliably.

Amounts for services delivered but not yet invoiced at the reporting date are recognised as accrued income. Any amounts invoiced in advance of work performed are included within deferred income.

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Tangible fixed assets are 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 or valuation of assets less their residual values over their useful lives on the following bases:

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.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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 balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors 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.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, 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.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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 fixed 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 pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

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 balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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 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 is provided at differing rates in order to write off each asset over its estimated useful life. At each reporting date, management review several factors, such as changes in market prices, to ensure the depreciable amount of an asset is allocated over its estimated useful life.

Revenue from service contracts are recognised by reference to the stage of completion of the contract. The stage of completion is estimated by management assisted by Quantity Surveyors.

The fair value of share-based payments is estimated using the Black–Scholes model, which is appropriate for options with no market conditions. Key assumptions include the share price at vesting, expected time to exit, the risk-free interest rate, and share price volatility. The risk-free interest rate is based on UK government gilt yields of a term consistent with the expected option life, and volatility is estimated using historical volatility of the FTSE All-Share Index.

The turnover and profit before taxation are attributable to the one principal activity of the company.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024 - 3).

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

The company has entered into an invoice discounting agreement whereby outstanding trade debtor balances totalling £792,268 have been assigned to the facility provider. The company retain the risk of bad debts. The carrying amount of the associated liability amounts to £1,823.

The bank loans creditor represents one loan which is secured, repayable monthly and matures in July 2026. All other bank loans were repaid in full during the year.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

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.

During the year, the company recognised total share-based payment expenses of £293,888 (2024 - £-) which related to equity settled share based payment transactions.

The share premium reserve records the amount above the nominal value received for shares sold, less transaction costs.

The capital redemption reserve is a non-distributable reserve into which amounts are transferred following the purchase of the company's own shares out of retained earnings.

The share option reserve represents the cumulative fair value of share-based payment awards granted to employees under the company’s share option schemes, recognised over the vesting period. This reserve is non-distributable and will be transferred to share capital and share premium when options are exercised, or reclassified within equity if the options lapse.

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 entered into the following transactions with related parties: