ACCOUNTS - Final Accounts preparation

An analysis of turnover by class of business is as follows:

(Unaudited) 2023

Registered number: 12590048

CUTTING GROUP LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

CUTTING GROUP LIMITED

COMPANY INFORMATION

Directors	Mr J D Jolly
	Mr S Jolly (appointed 25 March 2025)


Registered number	12590048


Registered office	10-12 Arcadia Avenue
	London
	United Kingdom
	N3 2JU


Independent auditor	MHA
	Statutory Auditor
	London
	EC2Y 5AU

CUTTING GROUP LIMITED

CONTENTS

	Page
Group strategic report	1 - 2
Directors' report	3 - 4
Independent auditor's report	5 - 9
Consolidated statement of comprehensive income	10
Consolidated balance sheet	11 - 12
Company balance sheet	13
Consolidated statement of changes in equity	14
Company statement of changes in equity	15
Consolidated statement of cash flows	16
Consolidated analysis of net debt	17
Notes to the financial statements	18 - 29

CUTTING GROUP LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction

The directors present the strategic report and financial statements for the year ended 31 December 2024.

Business overview

The Group operates within the construction and facilities management sectors, providing specialist Lightning Protection and Earthing building services. Our mission is to deliver high-quality construction solutions while maintaining safety, sustainability, and client satisfaction.

Strategy and objectives

∙Our strategic priorities include:

∙Expanding project portfolio across key regions.

∙Strengthening sustainability practices in materials and processes.

∙Investing in workforce training and safety.

∙Leveraging modern construction technology (BIM, modular construction)

Business model

We operate primarily on a contract-based model, generating revenue through public and private construction projects. Our value proposition is built on quality, timely delivery, compliance, and cost-effective construction management.

Principal risks and uncertainties

Key risks include:

∙Market volatility due to inflation and materials cost.

∙Delays in regulatory approvals and permitting.

∙Health and safety incidents on sites.

∙Labour shortages and subcontractor dependencies.

Financial key performance indicators

KPI 2024 2023 Change

Revenue £8,510,195 £8,232,512 +3.3%

Operating Profit £1,224,598 £1,218,424 +0.5%

Project Completion Rate 95% 92% +3.0%

Safety Incident Rate (AFR)0.16 0.18 -0.02

Future outlook

The Group anticipates continued growth in infrastructure and residential projects. Priorities for 2025 include digitizing site operations, increasing ESG compliance, and securing long-term framework agreements.

Page 1

CUTTING GROUP LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

This report was approved by the board and signed on its behalf.

Mr J D Jolly

Director

Date: 24 September 2025

Page 2

CUTTING GROUP LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Group's financial statements and then apply them consistently;

∙make judgments 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 Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Director

The director who served during the year was:

Mr J D Jolly

Employees

The Group values its workforce and prioritizes training, diversity, and safety. Ongoing apprenticeship and site safety programs are in place.

Political and charitable contributions

The Group made charitable donations totalling £15,000 during the year. No political donations were made.

Going concern

The directors consider that the company has adequate resources to continue operations for the foreseeable future. The financial statements have been prepared on a going concern basis.

Page 3

CUTTING GROUP LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Auditor

During the year the company appointed MHA as the independent auditor. A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting.

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

Mr J D Jolly

Director

Date: 24 September 2025

Page 4

CUTTING GROUP LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CUTTING GROUP LIMITED

Opinion

We have audited the financial statements of Cutting Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, 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).

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion the financial statements:

∙give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2024 and of the Group's 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 qualified opinion

The directors took advantage of the audit exemption available under the Companies Act 2006 for the year to 31 December 2023 and there was no observation of the counting of physical inventories at the end of that year.
We were not appointed as auditor of the Group until after 31 December 2023 and were unable to obtain sufficient and appropriate audit evidence by alternative means to satisfy ourselves concerning the opening balances stated as at 1 January 2024.
As opening balances enter into the determination of financial performance in the period, we were unable to determine whether any adjustments might have been found necessary in respect of the profit for the year or amounts presented in the Statement of Comprehensive Income.
We were able to complete audit procedures to obtain comfort over the closing position as at 31 December 2024.

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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.

Page 5

CUTTING GROUP LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CUTTING GROUP LIMITED (CONTINUED)

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 Group's or the parent 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.

Opinion 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 Group 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 Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Page 6

CUTTING GROUP LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CUTTING GROUP LIMITED (CONTINUED)

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

∙the parent Company 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; or

∙the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the Directors' report.

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 3, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.

Page 7

CUTTING GROUP LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CUTTING GROUP LIMITED (CONTINUED)

Auditor's 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 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 Group financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

∙Enquiry of management and those charged with governance around actual and potential litigation and claims;

∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; and

∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance
with applicable laws and regulations.

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

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

Other matters

The financial statements for Cutting Group Limited for the year ended 31 December 2023 were unaudited.

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.

Page 8

CUTTING GROUP LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CUTTING GROUP LIMITED (CONTINUED)

Georgette Alicia Crisp BSc (Hons) FCA (Senior statutory auditor)

for and on behalf of

MHA

Statutory Auditor

London
United Kingdom

Date:29 September 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).

Page 9

CUTTING GROUP LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2024

	2024	(Unaudited) 2023
	£	£


Turnover	3	8,510,195	8,232,512
Cost of sales		(4,077,581)	(3,836,068)
Gross profit		4,432,614	4,396,444
Administrative expenses		(3,208,016)	(2,974,614)
Operating profit	4	1,224,598	1,421,830
Interest receivable and similar income		37,060	11,272
Interest payable and similar expenses		(7,360)	(1,755)
Profit before tax		1,254,298	1,431,347
Tax on profit		(234,702)	(235,376)
Profit for the financial year		1,019,596	1,195,971

Profit for the year attributable to:
Owners of the parent company	(1,019,596)	(1,195,971)
	(1,019,596)	(1,195,971)

Total comprehensive income attributable to:

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 18 to 29 form part of these financial statements.

Page 10

CUTTING GROUP LIMITED

REGISTERED NUMBER: 12590048

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		(Unaudited) 2023
Note		£		£

Fixed assets
Tangible assets	8		503,207		625,194
			503,207		625,194
Current assets
Stocks	10	595,686		694,327
Debtors: amounts falling due after more than one year	11	133,650		168,550
Debtors: amounts falling due within one year	11	2,255,948		2,610,249
Cash at bank and in hand	12	2,377,128		932,896
		5,362,412		4,406,022
Creditors: amounts falling due within one year	13	(1,125,022)		(1,003,754)
Net current assets			4,237,390		3,402,268
Total assets less current liabilities			4,740,597		4,027,462
Provisions for liabilities
Deferred tax	14	(23,224)		(50,685)
			(23,224)		(50,685)
Net assets			4,717,373		3,976,777

Capital and reserves
Called up share capital	15	2,461	2,461
Capital redemption reserve		5,031	5,031
Profit and loss account		4,709,881	3,969,285
		4,717,373	3,976,777

Page 11

CUTTING GROUP LIMITED

REGISTERED NUMBER: 12590048

CONSOLIDATED BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2024

The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Mr J D Jolly

Director

Date: 24 September 2025

The notes on pages 18 to 29 form part of these financial statements.

Page 12

CUTTING GROUP LIMITED

REGISTERED NUMBER: 12590048

COMPANY BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		(Unaudited) 2023
Note		£		£

Fixed assets
Investments	9		523,280		523,280
			523,280		523,280
Current assets
Debtors: amounts falling due within one year	11	5,001		5,001
		5,001		5,001
Creditors: amounts falling due within one year		(525,000)		(525,000)
Net current liabilities			(519,999)		(519,999)
Total assets less current liabilities			3,281		3,281


Net assets excluding pension asset			3,281		3,281
Net assets			3,281		3,281

Capital and reserves
Called up share capital	15		2,461		2,461
Profit and loss account brought forward		820		(259,180)
Profit for the year		279,000		439,000
Other changes in the profit and loss account		(279,000)		(179,000)
Profit and loss account carried forward			820		820
			3,281		3,281

The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Mr J D Jolly

Director

Date: 24 September 2025

The notes on pages 18 to 29 form part of these financial statements.

Page 13

CUTTING GROUP LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Capital redemption reserve	Profit and loss account	Total equity
	£	£	£	£
At 1 January 2023	2,461	5,031	2,952,314	2,959,806

Profit for the year	-	-	1,195,971	1,195,971
Dividends: Equity capital	-	-	(179,000)	(179,000)

At 1 January 2024	2,461	5,031	3,969,285	3,976,777

Profit for the year	-	-	1,019,596	1,019,596
Dividends: Equity capital	-	-	(279,000)	(279,000)
At 31 December 2024	2,461	5,031	4,709,881	4,717,373

The notes on pages 18 to 29 form part of these financial statements.

Page 14

CUTTING GROUP LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 January 2023	2,461	(259,180)	(256,719)
Comprehensive income for the year
Profit for the year	-	439,000	439,000
Total comprehensive income for the year	-	439,000	439,000
Contributions by and distributions to owners
Dividends: Equity capital	-	(179,000)	(179,000)
Total transactions with owners	-	(179,000)	(179,000)

At 1 January 2024	2,461	820	3,281
Comprehensive income for the year
Profit for the year	-	279,000	279,000
Total comprehensive income for the year	-	279,000	279,000
Contributions by and distributions to owners
Dividends: Equity capital	-	(279,000)	(279,000)
Total transactions with owners	-	(279,000)	(279,000)
At 31 December 2024	2,461	820	3,281

The notes on pages 18 to 29 form part of these financial statements.

Page 15

CUTTING GROUP LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

			2024	(Unaudited) 2023
			£	£

Cash flows from operating activities
Profit for the financial year	1,019,596	1,195,971
Adjustments for:
Depreciation of tangible assets	230,187	102,190
Profit on disposal of tangible assets	(20,946)	(86,063)
Interest paid	7,360	1,755
Interest received	(37,060)	(11,272)
Taxation charge	234,702	235,376
Decrease/(increase) in stocks	98,641	(227,455)
Decrease/(increase) in debtors	389,201	(606,315)
(Decrease)/increase in creditors	(31,445)	10,276
Corporation tax (paid)	(109,450)	(134,214)
Net cash generated from operating activities	1,780,786	480,249

Cash flows from investing activities
Purchase of tangible fixed assets	(120,741)	(303,944)
Sale of tangible fixed assets	33,487	246,100
Interest received	37,060	11,272
Net cash from investing activities	(50,194)	(46,572)
Cash flows from financing activities
Dividends paid	(279,000)	(179,000)
Interest paid	(7,360)	(1,755)
Net cash used in financing activities	(286,360)	(180,755)
Net increase in cash and cash equivalents	1,444,232	252,922
Cash and cash equivalents at beginning of year	932,896	679,974
Cash and cash equivalents at the end of year	2,377,128	932,896

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	2,377,128	932,896
	2,377,128	932,896

The notes on pages 18 to 29 form part of these financial statements.

Page 16

CUTTING GROUP LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2024


At 1 January 2024	Cash flows	At 31 December 2024
£	£	£

Cash at bank and in hand	932,896	1,444,232	2,377,128
Debt due within 1 year	(9,565)	6,687	(2,878)
	923,331	1,450,919	2,374,250

The notes on pages 18 to 29 form part of these financial statements.

Page 17

CUTTING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	General information

Cutting Group Limited is a private company limited by shares, incorporated in England and Wales. The registered office is detailed on the company information page.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The financial statements have been prepared in pounds sterling, rounded to the nearest £1.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.

2.3

Going concern

The company had net current liabilities of £519,999 (2023 - £519,999) at the balance sheet date. The financial statements have been prepared on a going concern basis as the company has the continued support of its fellow group companies.

Page 18

CUTTING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.4

Revenue

Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover from the sale of goods is recognised when the goods are physically delivered to the customer. Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where a contract has only been partially completed at the balance sheet date turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the balance sheet date. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.

2.5

Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date. This is normally measured by the proportion that contract costs incurred for work performed to date, bear to the estimated total contract costs, except where this would not be representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. Contract retentions are treated as deferred income until released by the client.
When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

2.6

Operating leases: the Group as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.8

Finance costs

Finance costs are charged to profit or loss 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. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 19

CUTTING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.11

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.

Page 20

CUTTING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.11

Tangible fixed assets (continued)

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.

Depreciation is provided on the following basis:

Freehold property	-	2% on written down value
Plant and machinery	-	20% on cost
Motor vehicles	-	20% on cost
Office equipment	-	20% on cost

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 in profit or loss.

2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.14

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.

Page 21

CUTTING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.16

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.

2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Lightning protection	5,873,339	5,816,365
Small works division	1,190,148	1,102,537
Testing division	1,386,453	1,258,828
Supplies division	60,255	54,782
	8,510,195	8,232,512

All turnover arose within the United Kingdom.

Page 22

CUTTING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Depreciation	76,026	36,198
Fees payable to the Group auditors for the audit of the Group's financial statements	30,000	-
Other operating lease rentals	89,861	81,817

Fees payable to the Company's auditor for the audit of the consolidated and parent Company's financial statements

30,000

Page 23

CUTTING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Employees

		Group	Group
		2024	(Unaudited) 2023
		£	£

Wages and salaries	3,706,118	4,038,042
Social security costs	405,234	374,432
Cost of defined contribution scheme	84,101	140,753
	4,195,453	4,553,227

The average monthly number of employees, including the directors, during the year was as follows:

	Group	Group	Company	Company
	2024	(Unaudited) 2023	2024	(Unaudited) 2023
	No.	No.	No.	No.

Employees	85	86	1	1

7.	Directors' remuneration
		2024	(Unaudited) 2023
		£	£

Directors' emoluments	355,262	350,325
Group contributions to defined contribution pension schemes	12,000	68,000
	367,262	418,325

	During the year retirement benefits were accruing to no directors (2023 - NIL) in respect of defined contribution pension schemes.
	The highest paid director received remuneration of £122,325 (2023 - £119,250).

Page 24

CUTTING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

8.	Tangible fixed assets
	Group

	Freehold property	Plant and machinery	Motor vehicles	Office equipment	Total
	£	£	£	£	£
Cost or valuation
At 1 January 2024	455,920	35,366	646,395	235,625	1,373,306
Additions	-	7,200	105,516	8,025	120,741
Disposals	-	-	(61,835)	-	(61,835)
At 31 December 2024	455,920	42,566	690,076	243,650	1,432,212
Depreciation
At 1 January 2024	186,082	29,339	361,317	171,374	748,112
Charge for the year	5,397	2,821	163,411	58,558	230,187
Disposals	-	-	(49,294)	-	(49,294)
At 31 December 2024	191,479	32,160	475,434	229,932	929,005
Net book value
At 31 December 2024	264,441	10,406	214,642	13,718	503,207
At 31 December 2023	269,838	6,027	285,078	64,251	625,194

The net book value of land and buildings may be further analysed as follows:
	2024	(Unaudited) 2023
	£	£

Freehold	264,441	269,838
	264,441	269,838

Page 25

CUTTING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

9.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 January 2024	523,280
	At 31 December 2024	523,280

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Registered office	Class of shares	Holding

	R C Cutting & Co Limited	10-12 Arcadia Avenue, London, N3 2JU	Ordinary	100%
	Cuttings South Limited*	10-12 Arcadia Avenue, London, N3 2JU	Ordinary	100%

*indirect holding

10.	Stocks
		Group	Group
		2024	(Unaudited) 2023
		£	£

Raw materials and consumables	595,686	694,327
	595,686	694,327

The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 26

CUTTING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

11.	Debtors
		Group	Group	Company	Company
		2024	(Unaudited) 2023	2024	(Unaudited) 2023
		£	£	£	£

Due after more than one year
Trade debtors	133,650	168,550	-	-
	133,650	168,550	-	-

Group	Group	Company	Company
2024	(Unaudited) 2023	2024	(Unaudited) 2023
£	£	£	£

Due within one year
Trade debtors	1,825,275	2,141,645	-	-
Other debtors	147,168	200,089	5,001	5,001
Prepayments and accrued income	283,505	268,515	-	-
	2,255,948	2,610,249	5,001	5,001

12.	Cash and cash equivalents
		Group	Group
		2024	(Unaudited) 2023
		£	£

Cash at bank and in hand	2,377,128	932,896
	2,377,128	932,896

Page 27

CUTTING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

13.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2024	(Unaudited) 2023	2024	(Unaudited) 2023
		£	£	£	£

Payments received on account	77,235	103,804	-	-
Trade creditors	423,455	413,788	-	-
Deferred consideration	-	9,565	-	-
Amounts owed to group companies	-	-	525,000	525,000
Corporation tax	430,771	278,058	-	-
Other taxation and social security	111,048	110,621	-	-
Other creditors	21,216	15,689	-	-
Accruals and deferred income	61,297	72,229	-	-
	1,125,022	1,003,754	525,000	525,000

14.	Deferred taxation
	Group

		2024
		£

	At beginning of year	50,685
	Charged to profit or loss	(27,461)
	At end of year	23,224

		Group	Group
		2024	(Unaudited) 2023
		£	£

Accelerated capital allowances	29,012	57,333
Tax losses carried forward	(5,788)	(6,648)
	23,224	50,685

Page 28

CUTTING GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

15.	Share capital
		2024	(Unaudited) 2023
		£	£

Allotted, called up and fully paid

2,200 (2023 - 2,200) Ordinary A Shares shares of £1.00 each	2,200	2,200
260 (2023 - 260) Ordinary D Shares shares of £1.00 each	260	260
1 (2023 - 1) Ordinary E Shares share of £1.00	1	1

	2,461	2,461

16.	Pension commitments

The Group makes payments to two defined contribution pension schemes for the benefit of the employees. The assets of the schemes are administered by trustees in funds independent from those of the Group. The pension charge represents contributions due from the Group and amounted to £47,070 (2023: £140,753). At the balance sheet date the Group owed £13,338 (2023: £6,300) in pension contributions.

17.	Related party transactions
	At the balance sheet date the company owed fellow group companies £525,000 (2023 - £525,000). The loan was unsecured, interest free and repayable on demand.

18.	Controlling party

The ultimate controlling party is Mr J D Jolly.

Page 29