REGISTERED NUMBER: 04007482 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Period 1 January 2025 to 30 June 2025

for

Cocksedge Building Contractors Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

8

Income Statement

12

Other Comprehensive Income

13

Balance Sheet

14

Statement of Changes in Equity

15

Cash Flow Statement

16

Notes to the Cash Flow Statement

17

Notes to the Financial Statements

19

DIRECTORS:

S C Nugent

G C Gee

J P Buckingham

M A Ashworth

N R L Wood

D J Reeve

REGISTERED OFFICE:

25 Hampstead Avenue

Mildenhall

Suffolk

IP28 7AS

REGISTERED NUMBER:

04007482 (England and Wales)

AUDITORS:

Knights Lowe Limited

Chartered Accountants

and Statutory Auditors

Eldo House, Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

The directors present their strategic report for the period 1 January 2025 to 30 June 2025.

The results for the year and the financial position of the company are as shown in the annexed accounts.

Business Overview

As a Suffolk based company, established in 1938, we take pride in being an enviable business that is reliable, highly skilled and committed to delivering a service that is on time, to a high quality within budget.

Our aim is to extend this reputation by introducing new ideas and skillsets for the benefit of our clients whilst having the flexibility and courage for innovation.

Our continued objective is to provide a variety of comprehensive high quality building services to our clients, mostly as main contractors.

Objectives & Strategy

The objectives & strategies for the coming financial year are:

- To Continue to provide continue focusing on delivering high-quality building services across all areas of the business

- Building upon the healthy profitability reported in this half year, as we continue to secure new contracts, including repeat business, with a strong client base.

- Focusing on maximizing returns and meeting its targets, alongside and always providing the exceptional client service the business is renowned for.

Key Performance Indicators

The key performance indicators for the company are turnover, gross margin and direct overheads.

REVIEW OF BUSINESS

After a couple of difficult years in terms of financial results, the first half of 2025 has seen the company scale down operations to concentrate on delivering schemes and maximizing returns. The trading results over the period exceeded our budget and forecast, which the Directors are very pleased with. They see it as reward for the endeavors by key members of the team who have shown perseverance, determination and focus after a difficult period in the company's history.

With enough work secured for the remainder of 2025, focus has already turned to 2026. We are looking to secure new contracts both through repeat business with our strong client base and new clients to ensure that we deliver another profitable year in a difficult market.

Our strategy remains to secure work on our terms to limit our risks while concentrating on retaining key staff and increasing our returns.

PRINCIPAL RISKS AND UNCERTAINTIES

Management continually monitors the risks facing the company together with assessing the controls used for managing these risks. The board of directors regularly reviews the principal risk facing the business.

(a) Economic downturn

The directors are aware of the consistent requirement to monitor the wider performance and outlook of the UK economy and the likely effect on the construction industry sector.

(b) Competitor pressure

Competitive tendering is continually monitored, all tenders whether won or lost are reviewed internally to establish how pricing and the offering can be improved on future tenders.

(c) Loss of key personnel

The company recognizes the need to attract and retain excellent people to continue to manage the plans of the company. This is achieved by performance management and regular reviews of remuneration to ensure the risk is mitigated.

The availability of quality, skilled labour is still a challenge for our industry.

(d) Reliance on key suppliers

The uncertainties around the general economic climate relating to global pricing and the cost of borrowing remain a risk to the business. We continue to have good relationship with our supply chain, many of whom we have been trading with for many years and have supported us during a difficult period in the company's history.

(e) Health & Safely (H&S)

Excellent Health and Safety performance has the highest priority in the company. The company is accredited to ISO 14001:2015 and ISO 45001:2018 and is subject to regular independent audit to maintain its registration. Our aim is to ensure our offices and projects are healthy and safe places for our employees, supply chain and visitors to work..

The company has robust H&S policies are in place which are implemented on all our sites in cooperation with our clients and main contractors that we work for. Performance against H&S KPI's is monitored by senior management and corrective action is taken when required.

Regular training, including updates, is provided to Cocksedge employees and its subcontractors when required.

(f) Quality

The company is accredited to IOS 9001:2015 and prides itself on the quality of the work it carries out and its reputation in the sectors it operates in. . Our objective is to improve the deliverables to ensure the quality of completed work that we hand over.

(g) Environmental

We are committed to reducing our carbon emissions and have set up a Carbon Reduction Team who maintains environmental and carbon data collection for all projects and offices. We have a Carbon Reduction Plan aimed at reducing our carbon footprint across all our operations.

During 2024, we have been working on two passive house contracts, one of which is a large student accommodation scheme. Work has also commenced on large decarbonisation project.

The company has invested heavily its fleet of electric vehicles with all company cars now either electric or hybrid. 18 electric vehicles are now leased compared to 17 at the end of 2023, plus 1 hybrid vehicle.

ON BEHALF OF THE BOARD:

N R L Wood - Director

30 September 2025

The directors present their report with the financial statements of the company for the period 1 January 2025 to 30 June 2025.

PRINCIPAL ACTIVITIES

The principal activities of the company in the period under review were those of builders and building contractors.

DIVIDENDS

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

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

S C Nugent

G C Gee

J P Buckingham

M A Ashworth

N R L Wood

D J Reeve

STREAMLINED ENERGY AND CARBON REPORTING

This report summaries our energy usage, associated emissions, energy efficiency actions and energy performance under the government policy Streamlined Energy and Carbon Reporting (SECR), as implemented by the Companies ('Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.

Cocksedge Building Contractors Limited are a large UK incorporated business. Under SECR legislation we are mandated to include energy consumption, emissions, intensity metrics and all energy efficiency improvements implemented in our most recent financial year. An organisational boundary has been applied for the purposes of the reporting.

Certain consumption data used for SECR has been estimated to achieve adequate data coverage. This is due to the nature of some of our projects. One of our business objectives for 2025 is to introduce a more robust system to measure and manage our CO2 emissions to determine a climate strategy aimed at reducing our carbon footprint. This will also enable us to extend our SECR to include other indirect emissions relating to our supply chain.

Greenhouse gas emissions and energy consumption

Unit

2025 (half year)

2024

Emissions resulting from activities for which the company is responsible

tCO2e

144

322

Emissions resulting from the purchase of electricity by the company for its own use

tCO2e

11

19

Emissions resulting from use of fuel by employees in privately owned vehicles

tCO2e

12

34

Total Emissions

150

375

Total Energy Consumption

KWh

302,229

714,884

Tonnes CO2 per £1m turnover

6.5

6.08

Scope 2 indirect emissions (purchased electricity) for this year of reporting are 42.907 tCO2e, resulting from the consumption of 203,353 kWh of electricity purchased and consumed in day-to-day business operations. This represents a carbon decrease of 21% from last year.

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.

AUDITORS

The auditors, having expressed their willingness to continue in office, will be deemed reappointed for the financial year in accordance with the section 487(2) of the Companies Act 2006 unless the company receives notice under section 488(1) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

N R L Wood - Director

30 September 2025

Opinion

We have audited the financial statements of Cocksedge Building Contractors Limited (the 'company') for the period 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 period then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 seven, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the companies operating sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

- investigated the rationale behind significant or unusual transactions; and

- specifically tested the used stock valuation including the used stock write-down provision, maintenance contracts, and the buy-back provision. These are areas requiring some level of management judgement and so could be susceptible to management bias.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims;

- reviewing correspondence with HMRC, relevant regulators [Scania for franchise purposes] and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

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

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

Use of our report

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

James Knights BSc ACA (Senior Statutory Auditor)

for and on behalf of Knights Lowe Limited

Chartered Accountants

and Statutory Auditors

Eldo House, Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

30 September 2025

TURNOVER

25,602,879

62,053,484

Cost of sales

22,478,169

64,790,431

GROSS PROFIT/(LOSS)

3,124,710

(2,736,947

)

Administrative expenses

1,818,450

4,425,060

1,306,260

(7,162,007

)

Other operating income

695,813

506,514

OPERATING PROFIT/(LOSS)

5

2,002,073

(6,655,493

)

Interest receivable and similar income

57,329

14,318

2,059,402

(6,641,175

)

Interest payable and similar expenses

6

77,436

3,872

PROFIT/(LOSS) BEFORE TAXATION

1,981,966

(6,645,047

)

Tax on profit/(loss)

7

-

(235,243

)

PROFIT/(LOSS) FOR THE FINANCIAL PERIOD

1,981,966

(6,409,804

)

PROFIT/(LOSS) FOR THE PERIOD

1,981,966

(6,409,804

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

1,981,966

(6,409,804

)

FIXED ASSETS

Tangible assets

8

520,095

568,389

Investments

9

508

508

520,603

568,897

CURRENT ASSETS

Stocks

10

694,362

913,321

Debtors

11

15,788,531

14,806,804

Cash at bank and in hand

704,338

1,395,399

17,187,231

17,115,524

CREDITORS

Amounts falling due within one year

12

14,771,370

15,968,859

NET CURRENT ASSETS

2,415,861

1,146,665

TOTAL ASSETS LESS CURRENT LIABILITIES

2,936,464

1,715,562

CREDITORS

Amounts falling due after more than one year

13

282,862

1,043,926

NET ASSETS

2,653,602

671,636

CAPITAL AND RESERVES

Called up share capital

17

1,000

1,000

Retained earnings

18

2,652,602

670,636

SHAREHOLDERS' FUNDS

2,653,602

671,636

The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2025 and were signed on its behalf by:

S C Nugent - Director

N R L Wood - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

1,000

7,180,440

7,181,440

Changes in equity

Gift to NGB Employee Ownership Trust

-

(100,000

)

(100,000

)

Total comprehensive income

-

(6,409,804

)

(6,409,804

)

Balance at 31 December 2024

1,000

670,636

671,636

Changes in equity

Total comprehensive income

-

1,981,966

1,981,966

Balance at 30 June 2025

1,000

2,652,602

2,653,602

Cash flows from operating activities

Cash generated from operations

1

346,294

(2,298,564

)

Interest paid

(55,363

)

50,694

Interest element of hire purchase payments paid

(22,073

)

(54,566

)

Tax paid

132,835

290,550

Net cash from operating activities

401,693

(2,011,886

)

Cash flows from investing activities

Purchase of tangible fixed assets

(1,850

)

(115,655

)

Sale of tangible fixed assets

-

1,200

Interest received

57,329

14,318

Net cash from investing activities

55,479

(100,137

)

Cash flows from financing activities

New loans in year

-

700,000

Loan repayments in year

(273,438

)

(546,875

)

Capital repayments in year

(54,237

)

(156,724

)

Amount introduced by directors

21,649

-

Amount withdrawn by directors

-

(372

)

Movement in loans to group

(842,207

)

373,837

Gifts to NGB Employee Ownership Trust

-

(100,000

)

Net cash from financing activities

(1,148,233

)

269,866

Decrease in cash and cash equivalents

(691,061

)

(1,842,157

)

Cash and cash equivalents at beginning of period

2

1,395,399

3,237,556

Cash and cash equivalents at end of period

2

704,338

1,395,399

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

1.1.25

to

Year Ended

30.6.25

31.12.24

£

£

Profit/(loss) before taxation

1,981,966

(6,645,047

)

Depreciation charges

50,144

118,439

Profit on disposal of fixed assets

-

(1,200

)

Finance costs

77,436

3,872

Finance income

(57,329

)

(14,318

)

2,052,217

(6,538,254

)

Decrease in stocks

218,959

2,480,142

Increase in trade and other debtors

(874,832

)

(605,711

)

(Decrease)/increase in trade and other creditors

(1,050,050

)

2,365,259

Cash generated from operations

346,294

(2,298,564

)

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:

Period ended 30 June 2025

30.6.25

1.1.25

£

£

Cash and cash equivalents

704,338

1,395,399

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,395,399

3,237,556

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 30.6.25

£

£

£

Net cash

Cash at bank and in hand

1,395,399

(691,061

)

704,338

1,395,399

(691,061

)

704,338

Debt

Finance leases

(72,316

)

54,237

(18,079

)

Debts falling due within 1 year

(546,875

)

91,146

(455,729

)

Debts falling due after 1 year

(182,292

)

182,292

-

(801,483

)

327,675

(473,808

)

Total

593,916

(363,386

)

230,530

1.	STATUTORY INFORMATION

Cocksedge Building Contractors 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 (£).

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

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 except for the modification to a fair value basis for certain financial instruments as specified in the accounting policies below.

Going Concern Basis

The financial statements have been prepared on the going concern basis, which assumes that the Company will continue in operational existence for the foreseeable future and there will be no significant change to its business activates in the foreseeable future.

In assessing the appropriateness of the going concern basis, the Directors have considered the Company's forecasts and projections, including cash flow forecasts, for a period of at least 12 months from the date of approval of these financial statements. The Directors have also reviewed the Company's current financial position, borrowing facilities, and future commitments.

In the prior period significant losses had been incurred. The directors have taken action to mitigate these, and they related to 2 specific contracts of which both have been completed. As required by accounting standards the total of the contact loss to completion was included in the 2024 accounts. Other contracts and future contracts are profitable.

Cash requirements caused by these losses have been managed by:

- Additional external financing of £700,000

- Utilization of historic excess cash balances

- Rebasing of creditor terms to be in line with industry standards

Expected financing cashflows including bank loan repayments, HMRC liabilities and group debt have been made and maintained as expected during the period and since the year end.

Forecasts and cashflows have been considered beyond 30 June 2025 for the next 12 months, these are positive, and no additional external debt is considered necessary due to the positive cashflows of future contracts and activity. These forecasts include the repayment of the additional external financing received in 2024 and increasing generally the company's overall cash position. Cashflows are always somewhat uncertain and on this basis the directors have approached the provider of the external financing, and in principle agreed extended terms should they be required.

Based on this assessment, the Directors are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties that may cast significant doubt on the Company's ability to continue as a going concern. Accordingly, the financial statements have been prepared on a going concern basis.

Preparation of consolidated financial statements

The financial statements contain information about Cocksedge Building Contractors Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, NGB Construction Limited, .

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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.

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

Critical judgements in applying the company's accounting policies

The following are the critical judgements, including those involving estimations, that the directors have made in the process of applying the company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Depreciation of tangible fixed assets

Tangible fixed assets are recognised at cost and depreciated over the basis appropriate to charge to the profit and loss account the economic consumption of those assets during the accounting period. The charge is calculated as described below and is based on the directors' knowledge of the reduction in the residual value of trading assets on average over the investment cycle of each class of asset. The rates of depreciation are kept under review such that assets are written down to residual value at the end of their economic lives.

Outcome of long term contracts

Profit recognised on long term contracts is based on the estimated margin of the contract at completion. This margin is estimated by the directors using their knowledge of the industry and the specific contracts.

Turnover

Turnover represents net invoiced sales of goods and services, excluding value added tax.

In the case of long term contracts, turnover represents the certificated work done in the year.

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.

Plant & equipment

-

4 to 10 years straight line

Fixtures and fittings

-

5 to 7 years straight line

Motor vehicles

-

2 to 5 years straight line

Stocks and work in progress

Work in progress is measured at the lower of cost and net realisable value. For long term contracts, work in progress is calculated on a margin basis as described in further detail in the accounting policy for long term contracts.