RED CONSTRUCTION SOUTH WEST LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31ST MARCH 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

8

Statement of Income and Retained Earnings

11

Balance Sheet

12

Notes to the Financial Statements

13

DIRECTORS:

R Brooks

J A Devey

G J Millar

D A Quinn

G J Sturge

REGISTERED OFFICE:

Oakley House

The Drive, Church Lane

Oakley

Bedford

Bedfordshire

MK43 7ST

REGISTERED NUMBER:

13628775 (England and Wales)

SENIOR STATUTORY AUDITOR:

Alberto Di Lorenzo FCA

AUDITORS:

HW Bedford Limited

First Floor, Woburn Court

2 Railton Road

Woburn Rd Ind Est

Kempston

Bedfordshire

MK42 7PN

The board of directors present their strategic report for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of construction, working directly with end use clients and property asset owners, as a specialist main contractor.

BUSINESS REVIEW AND GENERAL OUTLOOK

In accordance with RED group’s strategic vision, the board is committed to a cautious, yet ambitious growth plan as demonstrated by the ongoing increase in the scale of the business activities, profitably delivering annual revenue in excess of £40m in the year ended 31 March 2025.

Based in Bristol, RED South West, is a firmly established local presence offering unparalleled regional expertise and market knowledge, delivering an extensive portfolio of high-profile projects consistent with regional requirements, including commercial, PBSA,residential, hotel & leisure, education and industrial buildings. Whilst dedicated to the South West, the team is fully aligned with RED group’s straightforward approach, work ethic and exceptional technical capabilities.

The focus for the division’s leadership is on driving an increased market share with plans well advanced to open a new office in Exeter. RED South West’s portfolio includes the award winning Zeal Hotel Exeter (Hotels), Moon Street (Student Accommodation) and The Crescent & Harbourside (Façade Remediation).

Our Values and approach

RED South West’s core values are driven by relationships, channelling our enthusiasm into delivering on our promises and creating value in all that we do. Our clients choose us for our specialist knowledge, our employees choose us for our ambition and inclusive mindset. It is our mission to operate in an ethical and transparent manner that creates client value, embracing the innovation that keeps us evolving and helps us deliver best outcomes. We believe in creating an enjoyable, inclusive and safe environment, focused on empowering and training our teams to maximise their potential.

This is our operating model which is built on three key components:

- Relationships building positive trusting, connections with our clients, teams and stakeholders to empower growth and success.

- Enthusiasm exerting passion and determination for service excellence, through innovation, engagement of positive opportunities and providing solutions to all challenges.

- Delivery on our promises, with pride, integrity, and transparency, for all stakeholders through the utmost respect for the environment and communities, creating a lasting legacy.

FINANCIAL REVIEW

The company generated revenue of £41.1m in the financial year ended 31 March 2025 (2024: £12.1m).

No dividend was paid during the year (2024: £nil).

The company has secured a strong order book for the financial year ending March 2026 and is forecasting revenues of circa £40.0m with £28.8m currently secure. The company maintains strong working capital disciplines and finances its working capital requirements from operating activities without the need for recourse to any external sources of funding. The board remains confident in the ‘pipeline’ of known and identified opportunities in its core markets. In the opinion of the directors the prospects for the business are very positive.

KEY PERFORMANCE INDICATORS

The Board uses key performance indicators (KPI’s) to monitor the company’s performance and management regularly reviews the key risks and opportunities of the business.

In addition to regular management reporting, the Board monitors KPI’s on a range of activities including health & safety, training competencies, staff turnover, environmental issues, considerate contractors scheme scores, order book, profitability, working capital management and other financial and non-financial measures.

- Cash generated from operating activities is reviewed through monitoring debtors and work in progress.

- Profit and total comprehensive income for the financial year is another key measure and is included in the financial review.

SECTION 172 STATEMENT AND STAKEHOLDER ENGAGEMENT

In line with our core values, the board recognises that the ongoing success of the business is dependent on strong relationships with stakeholders. Accordingly, when making decisions, the directors consider their likely impact on promoting the success of the business for the benefit of stakeholders as a whole, be they employees, clients, suppliers, subcontractors or the wider public. In doing so the board consider:

- The likely consequences of any decisions in the long term

- The interests of employees

- The need to foster ongoing positive relationships with suppliers, subcontractors, clients and others

- The impact of the business¡¦ operations on the community and the environment.

- The desire of the business to maintain a reputation for high standards of conduct

- The need to act fairly as between stakeholders.

Likely long-term consequences of decisions

The board of directors have invested in developing, communicating, and deploying a coherent strategy for the business, which focuses on long-term objectives and sustainable growth in line with our core values.

The interests of employees

Our people are the foundation of RED South West. The company is an equal opportunity employer and fully accepts its obligations under all relevant legislation. We value the mix of strengths and insights this approach brings, and we are proud to have built a team with a diversity of perspectives and backgrounds. All employees are encouraged to work towards additional competencies reflective of their role in the company. Our active in-house graduate recruitment and training programmes play a key role in creating an effective and united team whilst also helping foster the industry’s next generation.

Fostering ongoing, positive relationships

At RED South West, investing in relationships is a core value. Building long-term, mutually beneficial relationships is paramount to successfully delivering our projects and our strategy.

Close relationships with clients from the earliest point in the project lifecycle is integral to the business success and stability. The board meet regularly with clients to ensure that our service delivery meets fully with their needs and requirements.

We highly value our supply chain partnerships and maintain a select list of preferred subcontractors and suppliers that uphold our agreed-upon standards. We actively engage with our supply chain both before and after tender stages to ensure that when we secure projects, we proceed in a manner that considers the needs of all parties involved.

Impact on communities and environment

The company is very aware of the dangers inherent in construction site environments. Health, safety and wellbeing are an integral part of our building process, embedded within the team and running through from planning to procurement and delivery of the scheme. The business has a robust process of regular independent inspections, the results of which are issued directly to the operations directors and the business owners. We are indebted to our people for creating a safe working environment but at the same time, we are not complacent about our desire to drive continuous improvements.

‘’RED to Green’’ is the company’s ESG strategy which provides the roadmap to a sustainable workplace, delivering our construction activities in a sustainable way, minimising our impact on the environment and the communities we support. As a responsible business, we acknowledge the impact construction activities can have on the environment and we are passionate about minimising these whenever possible by taking a proactive, hands-on approach with both internal business activities and project deliverables. Our ‘’RED to Green’’ journey will continue to evolve, building on innovation and targets that will ultimately benefit the company, our clients and the communities we support through construction.

High standards of conduct

Compliance with regulation, legal and ethical standards is a priority for the company. The Board is committed to ensuring top-down compliance through a framework of policies, procedures and internal controls. All policies are subject to board approval and ongoing review by management.

Acting fairly between all stakeholders

The board understands that it is only by engaging with key stakeholders that it can truly understand their needs and concerns and the impact of its decision making on those key stakeholders. The business uses a variety of methods to engage both formally and informally, believing that much can be gained from personal interaction. The Board acknowledges that situations may arise where stakeholder groups have conflicting priorities.

PRINCIPAL RISKS AND UNCERTAINTIES

The company’s operations expose it to various risks including health & safety risk, credit & cash flow risk, and supply chain risk. The company has delegated authorities in place to ensure its commitments are made at the appropriate level. Tenders are reviewed prior to acceptance to identify risk and ensure risks are at an acceptable level or can be managed to an acceptable level.

Health & Safety Risk

The responsibility for Health & Safety on a project is with the project lead, underpinning our belief that Health & Safety needs to be owned by the site team as a whole as an integral part of the building process and not just an add-on to our way of working. The ownership embedded within the team runs from planning to procurement and throughout the delivery of the scheme. The company has a dedicated health & safety department which continually strives for improvement in behaviours and processes on site with the aim of achieving zero accident rates.

Credit & Cash Flow Risk

New clients are approved as part of the tender process with the aim of ensuring those clients have committed funding in place before contractual commitments are undertaken. Existing clients are monitored for signs of potential credit risk. Debtors and work in progress is closely monitored throughout the construction process.

Construction is a capital intensive business with significant initial outlays when projects are mobilised. The company maintains a strong focus on working capital management. Cash flow forecasts are reviewed on a frequent basis to ensure that the company is not operating beyond its financial means.

Supply Chain Risk

The company monitors its supply chain to ensure that subcontractors have the required technical, operational and financial capabilities before appointment. The availability of materials, subcontract labour and plant can have an impact on construction programmes. Inflationary pressures on those inputs can impact on construction margins as in some instances additional costs cannot be passed on to clients.

ON BEHALF OF THE BOARD:

G J Sturge - Director

1st October 2025

The directors present their report with the financial statements of the company for the year ended 31st March 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of construction, working directly with end use clients and property asset owners, as a main contractor.

DIVIDENDS

No dividends will be distributed for the year ended 31st March 2025.

DIRECTORS

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

R Brooks

J A Devey

G J Millar

D A Quinn

G J Sturge

POLITICAL DONATIONS AND EXPENDITURE

No donations were made for political purposes (2024: £nil).

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;

-	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, HW Bedford Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

G J Sturge - Director

1st October 2025

Opinion

We have audited the financial statements of Red Construction South West Limited (the 'company') for the year ended 31st March 2025 which comprise the Statement of Income and Retained Earnings, Balance Sheet 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 31st March 2025 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 six, 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.

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:

- Identifying and assessing the controls management has in place to prevent and detect fraud;

- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;

- Challenging assumptions and judgments made by management in its significant accounting estimates and judgments pertaining to the assessment and evaluation of the stage of completion of construction contracts, amounts recoverable on contract, deferred revenue and accrued expenses recognition.

- Identifying and testing journal entries, in particular journal entries posted with unusual account combinations; and

- Assessing the extent of compliance with the relevant laws and regulations.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusions.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the accounting policy disclosure pages.

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.

Alberto Di Lorenzo FCA (Senior Statutory Auditor)

for and on behalf of HW Bedford Limited

First Floor, Woburn Court

2 Railton Road

Woburn Rd Ind Est

Kempston

Bedfordshire

MK42 7PN

1st October 2025

TURNOVER

41,093,123

12,147,136

Cost of sales

35,695,343

10,317,590

GROSS PROFIT

5,397,780

1,829,546

Administrative expenses

3,757,356

1,614,286

OPERATING PROFIT

4

1,640,424

215,260

Interest receivable and similar income

51,364

107

1,691,788

215,367

Interest payable and similar expenses

5

570

201

PROFIT BEFORE TAXATION

1,691,218

215,166

Tax on profit

6

432,245

-

PROFIT FOR THE FINANCIAL YEAR

1,258,973

215,166

Retained earnings at beginning of year

258,685

43,519

RETAINED EARNINGS AT END OF YEAR

1,517,658

258,685

FIXED ASSETS

Tangible assets

7

20,437

37,739

CURRENT ASSETS

Debtors

8

4,257,479

3,168,878

Cash at bank

12,084,603

3,692,100

16,342,082

6,860,978

CREDITORS

Amounts falling due within one year

9

13,866,555

6,546,024

NET CURRENT ASSETS

2,475,527

314,954

TOTAL ASSETS LESS CURRENT LIABILITIES

2,495,964

352,693

CREDITORS

Amounts falling due after more than one year

10

(976,446

)

(91,282

)

PROVISIONS FOR LIABILITIES

12

(1,560

)

(2,426

)

NET ASSETS

1,517,958

258,985

CAPITAL AND RESERVES

Called up share capital

13

300

300

Retained earnings

14

1,517,658

258,685

SHAREHOLDERS' FUNDS

1,517,958

258,985

The financial statements were approved by the Board of Directors and authorised for issue on 1st October 2025 and were signed on its behalf by:

G J Sturge - Director

1.	STATUTORY INFORMATION

Red Construction South West 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.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

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 requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirement of paragraph 33.7.

Critical accounting judgements and key sources of estimation uncertainty

In applying the Company's accounting policies, the Directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The Directors' Judgements, estimates and assumptions are based on· the best and most reliable evidence available at the time when the decisions are made and are based on historical experience and other factors that are considered applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ, however, a conservative position is taken in all such estimates and judgements. The estimates and underlying assumptions are reviewed on an ongoing basis and revisions to accounting estimates are recognised in the period in which the estimate is revised.

Critical judgements in applying the Company's accounting policies

The critical judgements that the directors have made in the process of applying the Company's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.

Revenue recognition on long term contracts

Determining the value of turnover to recognise prior to completion of a long term contract requires an estimation of the percentage of the contract that has been completed at the reporting date.

Profit recognition on long term contracts

The amount of profit or loss recognised is based upon the forecast outcome of the contract. Whilst every effort is made to ensure profit is only recognised when the outcome of the contract is reasonably certain, there remains a risk that the outcome is less favourable than originally anticipated.

Accruals and provisions

The board makes judgements regarding whether it is appropriate to accrue of provide for various

liabilities, as well as estimating the sums it is appropriate to provide or accrue.

Revenue

Revenue is recognised to the extent that it is probable that the economic benefit will flow to the company and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the company will receive consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably.

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.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Leasehold improvements

- Over the term of the lease

Plant & machinery

- 25% straight line

Office equipment

- 25% straight line

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss 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.

Going concern

The directors have considered the budgets and cash flow forecasts for the company. The company has the continued support of Red Construction Group Limited in meeting its liabilities as they fall due. Therefore, the financial statement have been prepared on a going concern basis.

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 risk of with insignificant change in value.

Retentions

Retentions represent amounts withheld by clients & suppliers under construction contracts until the completion of the project and the rectification of any defects. These amounts typically range from 2.5% - 5% of the contract value. Retentions receivable are initially recorded at fair value and subsequently measured at amortised cost as reduced by allowances for estimated irrecoverable amounts and expected credit losses. Retentions payable are initially recognised at cost. Retentions are disclosed in line with the expected completion and rectification release period specific to each contract.

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.

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.

Short and long - term contracts

Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.

Trade debtors includes the projects certified value at the year end. This includes both invoiced amounts and uninvoiced amounts in the form of retentions receivable on work certified to date. Payments on accounts, included in creditors, represents where amounts received and receivable for a project exceeds the project's value at the year end.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,991,211

1,420,717

Social security costs

60,285

47,786

Other pension costs

95,709

84,429

3,147,205

1,552,932

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

2025

2024

Directors

4

4

Other

24

10

28

14

2025

2024

£

£

Directors' remuneration

473,232

382,664

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

139,381

119,152

4.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Hire of plant and machinery

39,048

9,031

Depreciation - owned assets

17,302

14,867

Auditors' remuneration

13,585

10,100

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Other interest payable

570

201

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

433,111

-

Deferred tax

(866

)

-

Tax on profit

432,245

-

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

1,691,218

215,166

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

422,805

53,792

Effects of:

Expenses not deductible for tax purposes

8,675

4,338

Capital allowances in excess of depreciation

-

(412

)

Depreciation in excess of capital allowances

4,044

-

Utilisation of tax losses

-

(10,727

)

Movement of deferred tax

(866

)

-

R&D tax credits

(2,413

)

-

Group relief

-

(46,991

)

Total tax charge

432,245

-

The R&D tax credit is included based on qualifying staff costs only, and is expected to be uplifted once all subcontractor and other costs have been accounted for.

7.	TANGIBLE FIXED ASSETS

Leasehold

Plant and

Office

improvements

machinery

equipment

Totals

£

£

£

£

COST

At 1st April 2024

and 31st March 2025

52,060

15,533

819

68,412

DEPRECIATION

At 1st April 2024

27,473

2,517

683

30,673

Charge for year

13,283

3,883

136

17,302

At 31st March 2025

40,756

6,400

819

47,975

NET BOOK VALUE

At 31st March 2025

11,304

9,133

-

20,437

At 31st March 2024

24,587

13,016

136

37,739

8.

DEBTORS

2025

2024

£

£

Amounts falling due within one year:

Trade debtors

1,748,858

2,471,571

Amounts owed by related parties

1,095,795

-

Amounts recoverable on contracts

91,147

301,702

Other debtors

27,629

111,528

Tax

-

16

Called up share capital not paid

120

120

Prepayments and accrued income

4,153

5,581

2,967,702

2,890,518

Amounts falling due after more than one year:

Other debtors

1,289,777

278,360

Aggregate amounts

4,257,479

3,168,878

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade creditors

5,864,337

1,669,646

Amounts owed to group undertakings

35,574

139,780

Corporation tax

371,645

-

Social security and other taxes

112,855

50,232

VAT

433,724

528,621

Other creditors

36,781

112,581

Net wages outstanding

-

1,529

Accruals and deferred income

7,011,639

4,043,635

13,866,555

6,546,024

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Other creditors

976,446

91,282

11.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2025

2024

£

£

Within one year

67,066

8,721

Between one and five years

134,941

2,960

202,007

11,681

12.	PROVISIONS FOR LIABILITIES

2025

2024

£

£

Deferred tax

1,560

2,426

Deferred

tax

£

Balance at 1st April 2024

2,426

Credit to Statement of Comprehensive Income during year

(866

)

Balance at 31st March 2025

1,560

The deferred tax balance related to accelerated capital allowances.