The directors present their annual report and financial statements for the year ended 31 March 2025.

The principal activity of the company continued to be that of providing groundworks, hard landscaping, structural

concreting, concrete frameworks and the creation trenches for utilities on construction projects.

The directors recommend a final dividend payment of £1,400,000 to be made in respect of the financial year end 31 March 2025. This dividend has not been recognised as a liability in the financial statements.

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

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

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

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

Principal activity

The principal activity of the company is that of providing groundworks, hard landscaping, structural concreting, concrete frameworks and the creation trenches for utilities on construction projects.

The company has continued its policy of internal investment and continual modernisation of its specialist offerings in ground works, reinforced concrete frames, external works, infrastructures and building modifications.

Over the past two years, Adana have gained a significant increase in turnover. The associated risks have been managed by adapting procurement strategies and negotiating increased credit limits with the supply chain. Resource levels have been strengthened with a successful recruitment drive and the company has invested in new accounts management software in order to manage the increase in workload.

As a result, the company remains extremely profitable with excellent working capital and anticipates maintaining a high level of turnover with a healthy profit next year.

The principal key performance indicators of the company are:

Turnover £63,214,270 (2024: £64,372,555 )
Gross margin 8.84% (2024: 14.07%)
Operating profit before tax and dividends £3,385,130 (2024: £6,818,412)
Operating profit before tax and dividends as a percentage 5.36% (2024: 10.59%)
Current assets ratio 2.04 (2024: 1.40)
Cash management (Cash as a percentage of liabilities) 66.27% (2024: 61.50%)
Accrued income management (Accrued income as a percentage of liabilities) 119.26% (2024: 57.95%)

As well as the current economic climate putting risks on the construction market, there has also been new legislation for high rise residential buildings which has seen a delay in projects commencing in this sector. During this period, Adana took the short-term decision to reduce potential profit levels on larger schemes to ensure that future workload is secured. The company also continues to manage market risks by broadening the company’s client base ensuring that numerous construction sectors are covered. This continues to come to fruition with future contracts being secured for the next 18 months.

The financial risk management objective of the company continues to ensure that sufficient cash is generated to enable the company to continue to trade profitably in the long term. This objective is achieved by ensuring solid growth in turnover and profits stemming from the provision of a high-quality bespoke service. The company ensures that this service is subject to continuous development utilising the stable and highly trained workforce with ongoing investment in appropriate plant and machinery through its associated company Nineveh Plant Hire Ltd.

Adana also aim to maintain the excellent working relationships with the supply chain and the investment in the new accounts management software will help by ensuring that payments are made on time.

Non-financial KPI's

Adana Construction Ltd aim to reduce the Co2 production from the business which will benefit the local and global environments and have now started to put measures in place to monitor performance. Adana have already invested in Hybrid / electronic vehicles, installed electronic charging points, installed solar panels to the head office, and are looking to invest in future technology that would contribute to a greener environment.

Adana are also researching the use of electric plant on site to reduce the Co2 production of the business as well as the use of HVO fuel for site plant which will decrease emissions further. Small plant emissions continue to be improved by increasing the quantity of battery-operated equipment in lieu of plant requiring the use of fossil fuels.

Principal risks and uncertainties

The principal risks and uncertainties facing the company mainly relate to pricing pressure from competitors in the marketplace. However, Adana has established itself over recent years as a standout provider of high-quality service and can undertake the most complex projects where others cannot do so or have tried but failed to complete the task. All of this means that Adana does not feel the need to chase work as opportunities are presented via well-established procurement routes with both repeat clients established over 25 years and new clients that the company has been recommended to. All of this means that the company is able to mitigate price pressure.

Due to the ongoing economic pressures with the supply of materials, Adana have adjusted the business to ensure procurement strategies are in line with the demand of the market. This flexibility within Adana shows strength and emphasises the capabilities to deliver to clients.

Adana reviews climate related risks and manages these risks by obtaining strong relationships within its customer and supplier base with the necessary checks carried out.

Adana have renewed Cyber Crime insurance for the coming year to counteract any possible impacts on IT systems. Adana also have cyber security across all networks and virtual working has not been implemented.

Health, Safety & Retention of Employees

Adana are proud of the established core staff that the company is made up of many of which have been working with the business for over 15 years. This commitment of staff allows Adana to plan works and labour allocation with ease and continues to invest in the development of employees as indicated with achieving level Gold Investors In People Accreditation.

Financial instruments

The company has a normal level of exposure to price, credit, liquidity and cashflow risks arising from trading activities which are all conducted in sterling. The company does not enter into any formally designated hedging arrangements.

Approved by the Board on 10 September 2025 and signed on its behalf by:

We have audited the financial statements of Adana Construction Limited (the 'company') for the year ended 31 March 2025 which comprise the statement of income and retained earnings, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

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.

Our approach to identifying and assessing the risks of material misstatement in respect of

irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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

• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry;

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

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

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

We assessed the susceptibility of the company’s financial statements to material misstatement,

including obtaining an understanding of how fraud might occur, by:

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

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

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

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

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates set out in the notes were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

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

• agreeing financial statement disclosures to underlying supporting documentation;

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

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

• reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company’s legal advisors.

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

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

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

The company is a private company limited by share capital, incorporated in United Kingdom.

The address of its registered office is:Adana House, 140, Higher Hilgate, Stockport, Cheshire, SK1 3QT.

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements have been prepared on a going concern basis.true

Accrued income is the amount due from customers for services performed in the ordinary course of businesses.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

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

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

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

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

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

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

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

The critical judgements made by management that have a significant effect on the amounts

recognised in the financial statements are described below.

Critical judgement - operating leases

The company has entered into number of operating leases which it obtains the use of. The

classification of such leases as operating or finance lease requires the company to determine, based on an evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position.

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

Their aggregate remuneration comprised:

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

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The amount of non-cancellable operating lease payments recognised as an expense during the year was £70,000 (2024 - £63,000).

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Summary of transactions with other related parties

There is a related party balance at 31st March 2025 for £150,000 owing to a company with a related party member (2024: £150,000).

Also during the year, the company obtained hire from a limited company who is under the same common control as of some directors and shareholders in Adana Construction Ltd. The amount of hire in the year was £4,693,895 (2024: £4,719,998) The balance owed to the limited company at the end of the year was £496,931 (2024: £1,189,414)

Some of the directors jointly own the building which Adana Construction Ltd carries out its trade and during the year rent was paid for £70,000 (2024: £63,000).