FMO Property Limited (Consolidated)
Annual Report and Financial Statements
For the year ended 31 January 2025
Company Registration No. 12436724 (England and Wales)
FMO Property Ltd
Company Information
Directors
E Ismailanji
B Ismailanji
Company number
12436724
Registered office
532 Wellingborough Road
Northampton
England
NN3 3HZ
Auditor
Lawrence Johns
164 Field End Road
Eastcote
HA5 1RH
FMO Property Ltd
Contents
Page
Directors' report
1
Directors' responsibilities statement
2
Independent auditor's report
3 - 7
Group statement of income and retained earnings
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 28
FMO Property Ltd
Directors' Report
For the year ended 31 January 2025
Page 1

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

Principal activities

The principal activity of the company and group continued to be that of Groundswork and Civil Engineering.

Directors

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

E Ismailanji
B Ismailanji
Auditor

The auditor, Lawrence Johns, is deemed to be reappointed under Section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
E Ismailanji
Director
7 October 2025
FMO Property Ltd
Directors' Responsibilities Statement
For the year ended 31 January 2025
Page 2

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 group and company, 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 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;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

FMO Property Ltd
Independent Auditor's Report
To the Members of FMO Property Ltd
Page 3
Opinion

We have audited the financial statements of FMO Property Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2025 which comprise the Group Statement of Income and Related Earnings, Group Balance Sheet, the Company Balance Sheet, the Group Statement of Change in Equity, the Company Statement of Change in Equity, Group Cash Flow Statement 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 group's and the parent company's affairs as at 31 January 2025 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 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 group and parent 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 group's and 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.

FMO Property Ltd
Independent Auditor's Report (Continued)
To the Members of FMO Property Ltd
Page 4

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 Directors' R eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the directors' report has 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 group and parent company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the Directors' R eport.

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 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 take advantage of the small companies exemption from the requirement to prepare a strategic report.

Responsibilities of directors

As explained more fully in the Directors' R esponsibilities S tatement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

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 financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

FMO Property Ltd
Independent Auditor's Report (Continued)
To the Members of FMO Property Ltd
Page 5

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

FMO Property Ltd
Independent Auditor's Report (Continued)
To the Members of FMO Property Ltd
Page 6

Explanation as to what extent the audit was considered capable of detecting irregularities, including

fraud

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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

- We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.

- We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.

- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

- We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.

- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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 collusion.

FMO Property Ltd
Independent Auditor's Report (Continued)
To the Members of FMO Property Ltd
Page 7

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 for no purpose other than to draw to the attention of the company’s members those matters we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party 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.

Tim O'Keeffe
Senior Statutory Auditor
for and on behalf of Lawrence Johns
8 October 2025
Chartered Accountants
Statutory Auditor
Lawrence Johns
164 Field End Road
Eastcote
HA5 1RH
FMO Property Ltd
Group Statement of Income and Retained Earnings
For the year ended 31 January 2025
Page 8
2025
2024
Notes
£
£
Turnover
3
20,003,838
15,124,595
Cost of sales
(17,775,127)
(12,683,609)
Gross profit
2,228,711
2,440,986
Administrative expenses
(1,152,079)
(1,043,117)
Other operating income
63,765
62,695
Operating profit
4
1,140,397
1,460,564
Interest receivable and similar income
8
11,349
4,888
Interest payable and similar expenses
9
(28,242)
(43,317)
Profit before taxation
1,123,504
1,422,135
Tax on profit
10
(237,898)
(345,471)
Profit for the financial year
885,606
1,076,664
Retained earnings brought forward
4,604,281
3,527,617
Dividends
(783,600)
-
0
Retained earnings carried forward
4,706,287
4,604,281
Profit for the financial year is all attributable to the owners of the parent company.
FMO Property Ltd
Group Balance Sheet
As at 31 January 2025
31 January 2025
Page 9
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
12
582,319
477,717
Investment properties
13
2,456,545
1,482,342
3,038,864
1,960,059
Current assets
Debtors
16
4,164,269
3,570,583
Cash at bank and in hand
802,978
1,652,901
4,967,247
5,223,484
Creditors: amounts falling due within one year
17
(2,917,820)
(2,346,740)
Net current assets
2,049,427
2,876,744
Total assets less current liabilities
5,088,291
4,836,803
Creditors: amounts falling due after more than one year
18
(242,090)
(119,122)
Provisions for liabilities
Deferred tax liability
(139,892)
(113,378)
(139,892)
(113,378)
Net assets
4,706,309
4,604,303
Capital and reserves
Called up share capital
20
22
22
Profit and loss reserves
4,706,287
4,604,281
Total equity
4,706,309
4,604,303
The financial statements were approved by the board of directors and authorised for issue on 7 October 2025 and are signed on its behalf by:
07 October 2025
E Ismailanji
Director
FMO Property Ltd
Company Balance Sheet
As at 31 January 2025
31 January 2025
Page 10
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
12
4,514
15,548
Investment properties
13
2,456,545
1,482,342
Investments
14
2
2
2,461,061
1,497,892
Current assets
Debtors
16
872,671
1,916,421
Cash at bank and in hand
604,236
590,973
1,476,907
2,507,394
Creditors: amounts falling due within one year
17
(271,506)
(204,026)
Net current assets
1,205,401
2,303,368
Total assets less current liabilities
3,666,462
3,801,260
Provisions for liabilities
Deferred tax liability
(1,129)
(3,887)
(1,129)
(3,887)
Net assets
3,665,333
3,797,373
Capital and reserves
Called up share capital
20
22
22
Profit and loss reserves
3,665,311
3,797,351
Total equity
3,665,333
3,797,373

As permitted by s408 Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s profit for the year was £651,560 (2024 - £512,770 profit).

The financial statements were approved by the board of directors and authorised for issue on 7 October 2025 and are signed on its behalf by:
07 October 2025
E Ismailanji
Director
Company Registration No. 12436724 (England and Wales)
FMO Property Ltd
Group Statement of Changes in Equity
For the year ended 31 January 2025
Page 11
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2023
22
3,527,617
3,527,639
Year ended 31 January 2024:
Profit and total comprehensive income for the year
-
1,076,664
1,076,664
Balance at 31 January 2024
22
4,604,281
4,604,303
Year ended 31 January 2025:
Profit and total comprehensive income for the year
-
885,606
885,606
Dividends
11
-
(783,600)
(783,600)
Balance at 31 January 2025
22
4,706,287
4,706,309
FMO Property Ltd
Company Statement of Changes in Equity
For the year ended 31 January 2025
Page 12
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2023
22
3,284,581
3,284,603
Year ended 31 January 2024:
Profit and total comprehensive income for the year
-
512,770
512,770
Balance at 31 January 2024
22
3,797,351
3,797,373
Year ended 31 January 2025:
Profit and total comprehensive income for the year
-
651,560
651,560
Dividends
11
-
(783,600)
(783,600)
Balance at 31 January 2025
22
3,665,311
3,665,333
FMO Property Ltd
Group Statement of Cash Flows
For the year ended 31 January 2025
Page 13
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
629,880
1,121,874
Interest paid
(28,242)
(43,317)
Income taxes paid
(232,842)
(333,207)
Net cash inflow from operating activities
368,796
745,350
Investing activities
Purchase of tangible fixed assets
(80,905)
(281,896)
Proceeds from disposal of tangible fixed assets
19,995
13,749
Purchase of investment property
(974,203)
(68,598)
Loans
-
(783,600)
Interest received
11,349
4,888
Net cash used in investing activities
(1,023,764)
(1,115,457)
Financing activities
(Repayment) / Proceeds of bank loans
-
(280,000)
Net (payments) / Proceeds from borrowings
(194,955)
30,748
Net cash used in financing activities
(194,955)
(249,252)
Net decrease in cash and cash equivalents
(849,923)
(619,359)
Cash and cash equivalents at beginning of year
1,652,901
2,272,260
Cash and cash equivalents at end of year
802,978
1,652,901
FMO Property Ltd
Notes to the Group Financial Statements
For the year ended 31 January 2025
Page 14
1
Accounting policies
Company information

FMO Property Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 532 Wellingborough Road, Northampton, England, NN3 3HZ.

The group consists of FMO Property Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

FMO Property Ltd
Notes to the Group Financial Statements (Continued)
For the year ended 31 January 2025
1
Accounting policies
(Continued)
Page 15
1.2
Business combinations

In the parent company financial statements, t he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. I nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company FMO Property Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 January 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the g roup.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

FMO Property Ltd
Notes to the Group Financial Statements (Continued)
For the year ended 31 January 2025
1
Accounting policies
(Continued)
Page 16
1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group and company ha ve adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage

of completion when the stage of completion, costs incurred and costs to complete can be estimated

reliably. The stage of comþletion is calculated by comparing costs incurred, mainly in relation to

contrattual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be

estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is

probable will be recovered.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
25 % Straight-line
Fixtures and fittings
33 % Straight-line
Motor vehicles
25 % Straight-line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value a t the reporting end date. Changes in fair value are recognised in profit or loss.

FMO Property Ltd
Notes to the Group Financial Statements (Continued)
For the year ended 31 January 2025
1
Accounting policies
(Continued)
Page 17
1.8
Fixed asset investments

Equity in vest ments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

I n the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the g roup’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

In the parent c ompany financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

FMO Property Ltd
Notes to the Group Financial Statements (Continued)
For the year ended 31 January 2025
1
Accounting policies
(Continued)
Page 18

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest m ethod unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

FMO Property Ltd
Notes to the Group Financial Statements (Continued)
For the year ended 31 January 2025
1
Accounting policies
(Continued)
Page 19
Impairment of financial assets

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

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

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

Derecognition of financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

FMO Property Ltd
Notes to the Group Financial Statements (Continued)
For the year ended 31 January 2025
1
Accounting policies
(Continued)
Page 20
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

FMO Property Ltd
Notes to the Group Financial Statements (Continued)
For the year ended 31 January 2025
1
Accounting policies
(Continued)
Page 21
1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

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

1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease d asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by class of business
Civil engineering and groundworks
20,003,838
15,124,595
FMO Property Ltd
Notes to the Group Financial Statements (Continued)
For the year ended 31 January 2025
3
Turnover and other revenue
(Continued)
Page 22
2025
2024
£
£
Other revenue
Interest income
11,349
4,888
4
Operating profit
2025
2024
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
220,141
181,734
Profit on disposal of tangible fixed assets
(5,833)
(11,859)
Cost of stocks recognised as an expense
1,999,346
1,688,009
Operating lease charges
8,345
18,330
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
7,500
7,500
Audit of the financial statements of the company's subsidiaries
10,500
10,000
18,000
17,500
6
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
10
9
2
2
FMO Property Ltd
Notes to the Group Financial Statements (Continued)
For the year ended 31 January 2025
6
Employees
(Continued)
Page 23

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
300,365
336,138
26,916
60,000
Social security costs
28,861
22,629
1,273
5,836
Pension costs
2,726
1,597
-
0
-
0
331,952
360,364
28,189
65,836
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
-
60,000
8
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
8,155
4,888
Other interest income
3,194
-
Total income
11,349
4,888
9
Interest payable and similar expenses
2025
2024
£
£
Interest on bank overdrafts and loans
-
19,577
Other interest on financial liabilities
422
-
Interest on finance leases and hire purchase contracts
24,984
23,740
Other interest
2,836
-
Total finance costs
28,242
43,317
FMO Property Ltd
Notes to the Group Financial Statements (Continued)
For the year ended 31 January 2025
Page 24
10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
258,571
327,637
Adjustments in respect of prior periods
(47,187)
(683)
Total current tax
211,384
326,954
Deferred tax
Origination and reversal of timing differences
26,514
18,517
Total tax charge
237,898
345,471

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:

2025
2024
£
£
Profit before taxation
1,123,504
1,422,135
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 24.03%)
280,876
341,739
Tax effect of expenses that are not deductible in determining taxable profit
67,034
4,408
Tax effect of income not taxable in determining taxable profit
(3,467)
-
0
Adjustments in respect of prior years
(47,187)
-
0
Permanent capital allowances in excess of depreciation
(85,089)
7
Adjustments in respect of financial assets
(783)
-
0
Under/(over) provided in prior years
-
0
(683)
Deferred tax
26,514
-
0
Taxation charge
237,898
345,471
11
Dividends
2025
2024
Recognised as distributions to equity holders:
£
£
Final paid
783,600
-
FMO Property Ltd
Notes to the Group Financial Statements (Continued)
For the year ended 31 January 2025
Page 25
12
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 February 2024
5,959
48,719
892,289
946,967
Additions
308,000
18,905
12,000
338,905
Disposals
-
0
-
0
(121,383)
(121,383)
At 31 January 2025
313,959
67,624
782,906
1,164,489
Depreciation and impairment
At 1 February 2024
1,070
32,948
435,232
469,250
Depreciation charged in the year
20,021
12,100
188,020
220,141
Eliminated in respect of disposals
-
0
-
0
(107,221)
(107,221)
At 31 January 2025
21,091
45,048
516,031
582,170
Carrying amount
At 31 January 2025
292,868
22,576
266,875
582,319
At 31 January 2024
4,889
15,771
457,057
477,717
Company
Motor vehicles
£
Cost
At 1 February 2024
40,000
Disposals
(10,000)
At 31 January 2025
30,000
Depreciation and impairment
At 1 February 2024
24,452
Depreciation charged in the year
9,166
Eliminated in respect of disposals
(8,132)
At 31 January 2025
25,486
Carrying amount
At 31 January 2025
4,514
At 31 January 2024
15,548
FMO Property Ltd
Notes to the Group Financial Statements (Continued)
For the year ended 31 January 2025
Page 26
13
Investment property
Group
Company
2025
2025
£
£
Fair value
At 1 February 2024
1,482,342
1,482,342
Additions
974,203
974,203
At 31 January 2025
2,456,545
2,456,545
The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 January 2025 by the directors on an open market existing use basis
14
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
2
2
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2024 and 31 January 2025
2
Carrying amount
At 31 January 2025
2
At 31 January 2024
2
15
Subsidiaries

Details of the company's subsidiaries at 31 January 2025 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
B & E Construction Ltd
UK
Ordinary shares
100.00
FMO Property Ltd
Notes to the Group Financial Statements (Continued)
For the year ended 31 January 2025
Page 27
16
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,161,511
2,299,499
-
0
6,000
Amounts owed by group undertakings
-
-
474,308
587,284
Other debtors
893,229
1,174,059
390,973
999,250
Prepayments and accrued income
109,529
97,025
7,390
323,887
4,164,269
3,570,583
872,671
1,916,421
17
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
£
£
£
£
Obligations under finance leases
149,226
209,149
-
0
4,242
Trade creditors
1,320,135
680,672
65,958
27,402
Corporation tax payable
249,929
271,387
53,312
54,696
Other taxation and social security
376,132
358,261
13,999
38,919
Other creditors
101,541
95,504
65,492
66,272
Accruals and deferred income
720,857
731,767
72,745
12,495
2,917,820
2,346,740
271,506
204,026
18
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
£
£
£
£
Obligations under finance leases
242,090
119,122
-
0
-
0
19
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
2,726
1,597

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

FMO Property Ltd
Notes to the Group Financial Statements (Continued)
For the year ended 31 January 2025
Page 28
20
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
22
22
22
22
21
Related party transactions

During the year, B&E Construction Ltd paid dividends of £50 0,000 (202 4: £3 50,000) to FMO Property Limited who is shareholder of the company.

22
Controlling party

The directors do not consider that there is an ultimate controlling party, as the shareholders each own 50% of the company.

23
Cash generated from group operations
2025
2024
£
£
Profit for the year after tax
885,606
1,076,664
Adjustments for:
Taxation charged
237,898
345,471
Finance costs
28,242
43,317
Investment income
(11,349)
(4,888)
Gain on disposal of tangible fixed assets
(5,833)
(11,859)
Depreciation and impairment of tangible fixed assets
220,141
181,734
Movements in working capital:
Decrease in stocks
-
34,189
Increase in debtors
(1,377,286)
(312,667)
Increase/(decrease) in creditors
652,461
(230,087)
Cash generated from operations
629,880
1,121,874
24
Analysis of changes in net funds - group
1 February 2024
Cash flows
31 January 2025
£
£
£
Cash at bank and in hand
1,652,901
(849,923)
802,978
Obligations under finance leases
(328,271)
(63,045)
(391,316)
1,324,630
(912,968)
411,662
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