REGISTERED NUMBER: 04045742 (England and Wales)

LEDWOOD MECHANICAL ENGINEERING LIMITED

STRATEGIC REPORT, DIRECTORS' REPORT AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Strategic Report

2

Directors' Report

5

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

A T Davies

C Ferguson

N D Revell

L N Revell

SECRETARY:

A Miller

REGISTERED OFFICE:

Units 9 - 11

Waterloo Industrial Estate

Pembroke Dock

Pembrokeshire

SA72 4RR

REGISTERED NUMBER:

04045742 (England and Wales)

INDEPENDENT AUDITORS:

Bevan Buckland LLP

Chartered Accountants

And Statutory Auditors

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

The directors present their strategic report for the year ended 31 December 2024.

BUSINESS REVIEW AND FULL YEAR HIGHLIGHTS

2024 was an exciting year that saw an excellent turnover of £57.3 million, up 79% on the prior year. Turnover was driven by the full mobilisation and ramp-up of the Hinkley Point C Contract, awarded in 2022, as well as several new contract awards. This strong revenue growth was achieved despite uncertain market conditions.

Gross margin was 8.9%, a slight drop on the prior year. This reflects the increase in lower-margin revenue from the Hinkley Point contract, alongside inflationary cost pressures and higher labour requirements.

The Hinkley Point contract is expected to run until 2028, providing long-term stability for the business.

The demand for energy and infrastructure projects in the UK remains stable, with a number of promising opportunities emerging. While the timing of these projects remains uncertain, the company is well positioned to capitalise on them as they arise.

At the end of 2024, the company had open contracts worth over £62 million, providing visibility of work for the next three years. Combined with continued business development in existing and new markets, a strong industry reputation, and significant new opportunities, the company is confident in its platform for sustainable growth.

PRINCIPAL ACTIVITIES

The company's principal activities remain engineering, fabrication, coating, and construction, serving as a trusted partner to leading UK and global energy producers and processors. Services include project management, design, supply chain management, fabrication, construction, maintenance, and decommissioning. The company is also pursuing new green market sectors to position itself as a leader in emerging sustainable industries.

BUSINESS STRATEGY & OBJECTIVES

The company's strategy is to strengthen its position as the leading service provider to the energy sector, supporting existing and future clients, employees, and the wider communities in which it operates. Alongside this, the company aims to maximise shareholder returns through operational excellence, investment in systems and new technologies, and ongoing employee development.

KEY PERFORMANCE INDICATORS

The directors consider the following indicators most relevant to communicating the company's financial performance and overall strength:

Order Book

2024

2023

£

£

Live Contracts

95 Million

141 Million

Open Contracts Value

62 Million

73 Million

Order Book Horizon

2027

2027

Financials

2024

2023

2022

£'000

£'000

£'000

Revenue

57,292

31,926

18,588

Revenue Growth % YoY

79%

70%

-32%

Operating Profit

376

636

1,954

Profit Before Tax

103

556

1,943

Return on Capital

5%

40%

169%

FT Employees

329 FTE

231 FTE

154 FTE

Revenue per Employee

174

138

121

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties faced by the company include fluctuating demand for services, competition and pricing pressures, and ongoing economic uncertainty, particularly from inflation and cost increases. The company mitigates these risks by diversifying into new markets, securing longer-term contracts, and improving project pricing.

Operations are also exposed to financial risks such as interest rate changes and geopolitical uncertainty. The company operates a risk management programme to limit financial exposure.

SECTION 172(1) STATEMENT

In accordance with Section 172 of the Companies Act 2006, the directors of Ledwood Mechanical Engineering confirm that they have acted in a way they consider, in good faith, would most likely promote the success of the Company for the benefit of its members as a whole.

In doing so, the directors have had regard to:

the long-term impact of decisions;

the interests of employees;

relationships with customers, suppliers and other stakeholders;

the effect of operations on the community and environment;

the Company's reputation for high standards of business conduct; and

the need to act fairly between members.

The directors also consider relevant legal and regulatory obligations when making decisions, ensuring these factors are embedded in the Company's governance and strategic planning.

EMPLOYMENT POLICIES AND EMPLOYEE INVOLVEMENT

The company fosters a culture of continuous improvement, investing in employees at all levels. The key employment risk is the availability of suitably qualified personnel, which is addressed through long-term project planning and ongoing training and development.

The company is committed to equal opportunities and ensuring no bias or discrimination in its treatment of people.

ENVIRONMENT, SUSTAINABILITY, GOVERNANCE (ESG) DISCLOSURES & PRIORITIES

Ledwood Mechanical Engineering employs over 250 skilled professionals across its operations. As a responsible employer, the company is committed to fostering a safe, inclusive, and empowering workplace where employees can thrive.

The Board of Directors actively engages with employees through structured feedback mechanisms, regular site visits, and open forums. These interactions ensure that employee views are considered in strategic decision-making, particularly in areas such as health and safety, training, and operational improvements.

Ledwood promotes equal opportunities and invests in continuous professional development, offering training programmes that support career progression and technical excellence. The company also encourages employee participation in ESG initiatives, including sustainability projects and community outreach programmes.

By maintaining transparent communication and valuing employee input, Ledwood ensures that its workforce remains motivated, informed, and aligned with the company's long-term goals.

FUTURE DEVELOPMENTS

Over the next five years a Ledwood is likely to see steady demand growth driven mainly by large energy & infrastructure programs such as offshore wind, hydrogen/CCS and nuclear, but growth will be uneven.

HyNet, the North West decarbonization project, is now firmly in its construction-ready phase, with financial close achieved for the backbone element of the cluster. £2bn in contracts have already been awarded with £3-4bn worth of contracts to be awarded over the next five years. Similarly the decarbonization projects in the North East are progressing albeit at a slightly slower pace. However Net Zero Teesside has reached financial close and £4bn worth of contracts have been awarded.

Sizewell C reached FID in July this year for the £38bn nuclear power plant.

Offshore wind continues to develop with some UK-based fabrication contractors now supplying secondary steelwork and platforms to offshore windfarms. In the Celtic Sea, both Equinor and Gwynt Glas were awarded leases for windfarms totaling 3GW in capacity and we await the outcome of the current AR 7 round to see if developers of the Test and Demonstration wind farms submit Contract for Difference bids. If they do, it will open up the opportunity to supply anchors and possibly secondary steelwork to these projects.

Offshore wind projects also offer the opportunity to bid for Clean Industry Bonus investments where the developer is encouraged to put significant amounts of money in to local manufacturing infrastructure.

ON BEHALF OF THE BOARD:

N D Revell - Director

16 September 2025

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

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

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

A T Davies

C Ferguson

N D Revell

L N Revell

POLITICAL DONATIONS AND EXPENDITURE

During the year, the company made donations totalling £12,184 to various charities.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Directors' 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;

-	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, Bevan Buckland LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

N D Revell - Director

16 September 2025

Opinion

We have audited the financial statements of Ledwood Mechanical Engineering Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 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 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 Directors' Report, 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 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.

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 Directors' Report.

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 five, 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, and then, design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

We discussed our audit independence complying with the Revised Ethical Standard 2019 with the engagement team members whilst planning the audit and continually monitored our independence throughout the process.

Identifying and assessing potential risks related to irregularities.

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

-

enquiring of management, including obtaining and reviewing support documentation, concerning the company's policies and procedures relating to:

-

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

-

detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

-

internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

-

discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud.

-

obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the company, The key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation.

Audit response to risks identified

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

-

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations;

-

enquiring of management concerning actual and potential litigation and claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

-

reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC;

-

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments;

-

assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and

-

evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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

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.

Henry Lloyd-Davies (Senior Statutory Auditor)

for and on behalf of Bevan Buckland LLP

Chartered Accountants

And Statutory Auditors

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

16 September 2025

TURNOVER

3

57,292,571

31,925,516

Cost of sales

(52,179,427

)

(28,293,142

)

GROSS PROFIT

5,113,144

3,632,374

Administrative expenses

(4,741,543

)

(3,001,099

)

371,601

631,275

Other operating income

4,254

4,254

OPERATING PROFIT

5

375,855

635,529

Interest receivable and similar income

82,948

112,867

458,803

748,396

Amounts written off investments

6

(200,000

)

(150,000

)

258,803

598,396

Interest payable and similar expenses

7

(155,711

)

(41,930

)

PROFIT BEFORE TAXATION

103,092

556,466

Tax on profit

8

(84,203

)

(132,790

)

PROFIT FOR THE FINANCIAL YEAR

18,889

423,676

PROFIT FOR THE YEAR

18,889

423,676

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

18,889

423,676

FIXED ASSETS

Tangible assets

9

2,034,225

1,378,204

CURRENT ASSETS

Debtors

10

20,247,672

16,792,001

Cash at bank and in hand

11

4,337,952

1,170,265

24,585,624

17,962,266

CREDITORS

Amounts falling due within one year

12

12,334,625

6,239,432

NET CURRENT ASSETS

12,250,999

11,722,834

TOTAL ASSETS LESS CURRENT LIABILITIES

14,285,224

13,101,038

CREDITORS

Amounts falling due after more than one year

13

(1,063,957

)

(57,731

)

PROVISIONS FOR LIABILITIES

16

(247,302

)

(88,231

)

NET ASSETS

12,973,965

12,955,076

CAPITAL AND RESERVES

Called up share capital

17

93,500

93,500

Share premium

18

19,500

19,500

Revaluation reserve

18

-

960,717

Capital redemption reserve

18

200,000

200,000

Retained earnings

18

12,660,965

11,681,359

SHAREHOLDERS' FUNDS

12,973,965

12,955,076

The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2025 and were signed on its behalf by:

N D Revell - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 January 2023

93,500

11,257,683

19,500

Changes in equity

Total comprehensive income

-

423,676

-

Balance at 31 December 2023

93,500

11,681,359

19,500

Changes in equity

Total comprehensive income

-

979,606

-

Balance at 31 December 2024

93,500

12,660,965

19,500

Capital

Revaluation

redemption

Total

reserve

reserve

equity

£

£

£

Balance at 1 January 2023

960,717

200,000

12,531,400

Changes in equity

Total comprehensive income

-

-

423,676

Balance at 31 December 2023

960,717

200,000

12,955,076

Changes in equity

Total comprehensive income

(960,717

)

-

18,889

Balance at 31 December 2024

-

200,000

12,973,965

1.	STATUTORY INFORMATION

Ledwood Mechanical Engineering 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.

Financial Reporting Standard 102 - reduced disclosure exemptions

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

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirement of paragraph 33.7.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be appropriate and reasonable in the circumstances.

a) Critical judgements in applying the company's accounting policies

The directors do not consider there to be any critical accounting judgements to the financial statements.

b) Key accounting estimates and assumptions

i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 9 for the carrying amount of the property plant and equipment, and note 2 for the useful economic lives for each class of assets.

ii) Long term contracts

Where the Company enters into long term contracts, revenue is recognised on the percentage of completion basis. Under the percentage of completion method, the Company makes an estimate of the percentage to complete for a project and recognises the proportion of revenue and profit accordingly. In forecasting the profitability of contracts, management makes best estimates of the impact of customer disputes and claims brought by contractors. Any expected losses on long term contracts are recognised immediately and are written off to the Statement of comprehensive income.

Revenue recognition

Revenue, which excludes value added tax and trade discounts is the fair value of the consideration received and receivable and represents the invoiced value of goods and services supplied and the value of contract work undertaken during the year.

Long term contract balances are assessed on a contract by contract basis and are reflected in the Statement of Comprehensive Income as contract activity progresses. Any expected losses on long term contract balances are recognised immediately and are written off to the profit and loss account. Where it is considered that the outcome of a long term contract can be assessed with reasonable certainty before its conclusion, the prudently calculated attributable profit is recognised in the profit and loss account as the difference between reported turnover and related costs for that contract.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Statement of Comprehensive Income during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. The estimated useful lives range as follows:

The estimated useful lives range as follows:

%

Freehold buildings 4

Plant, machinery and equipment 20 - 33.33

Fixtures and fittings 20

Leasehold land and buildings are depreciated over 25 years or over the remaining term of the lease, whichever is the shorter. Freehold land is not depreciated. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'administrative expenses' in the Statement of Comprehensive Income.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Leased assets

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

At inception the company assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is, or contains, a lease based on the substance of the arrangement.

Operating leased assets

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease.

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.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash

Cash includes cash in hand and at bank, along with restricted cash balances held in escrow in support of contractual commitments. Bank overdrafts, when applicable, are shown within borrowings in current liabilities.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the profit and loss account in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

Distribution to equity holders

Dividends and other distributions to the company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the shareholders. These amounts are recognised in the statement of changes in equity.

Related party transactions

The company discloses transactions with related parties which are not wholly owned within the same group. It does not disclose transactions with members of the same group that are wholly owned.

Financial Instruments

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

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.

Impairment of financial assets

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.

Derecognition of financial assets

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.

Classification of financial liabilities

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

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies 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.

Derecognition of financial liabilities

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

Going concern

The financial statements have been prepared on a going concern basis. The directors have assessed the company's ability to continue as a going concern and are confident that it remains appropriate to adopt this basis of preparation.

In making this assessment, the directors have considered the company's current financial position, cash flow forecasts, and the impact of slower payments from certain customers. While these delays have placed some pressure on working capital, the company has continued to manage its cash flow carefully and effectively.

The directors are confident that the company has access to sufficient resources to meet its obligations as they fall due. If required, they are also confident that alternative sources of funding can be obtained to support the company's operations. Accordingly, the directors believe that there are no material uncertainties that cast significant doubt over the company's ability to continue as a going concern for the foreseeable future.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

57,292,571

31,925,516

57,292,571

31,925,516

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

22,797,677

13,969,066

Social security costs

2,281,181

1,375,250

Other pension costs

90,917

84,668

25,169,775

15,428,984

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

2024

2023

Production

289

193

Admin

40

38

329

231

2024

2023

£

£

Directors' remuneration

427,786

522,945

Directors' pension contributions to money purchase schemes

9,294

9,719

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

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

2024

2023

£

£

Emoluments etc

192,917

294,583

Pension contributions to money purchase schemes

790

1,215

5.	OPERATING PROFIT

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

2024

2023

£

£

Hire of plant and machinery

2,277,914

723,749

Other operating leases

81,075

291,714

Depreciation - owned assets

205,562

155,357

Profit on disposal of fixed assets

(7,300

)

-

Foreign exchange differences

9,607

14,854

Auditor's remuneration - audit fees

15,000

15,000

Auditor's remuneration - non audit fees

10,000

10,000

Release of deferred grants

(4,254

)

(4,254

)

6.

AMOUNTS WRITTEN OFF INVESTMENTS

2024

2023

£

£

Amounts w/o invs

200,000

150,000