REGISTERED NUMBER: 01224597 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2025

FOR

M.A.C. (ROOFING & CONTRACTING) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

10

Statement of Income and Retained Earnings

14

Statement of Financial Position

15

Notes to the Financial Statements

16

DIRECTORS:

T R Cavanagh

L J Cavanagh

SECRETARY:

K Hughes

REGISTERED OFFICE:

17 Moor Park Avenue

Preston

PR1 6AS

REGISTERED NUMBER:

01224597 (England and Wales)

SENIOR STATUTORY AUDITOR:

Christopher Bond

AUDITORS:

SBCA Statutory Auditor

17 Moor Park Avenue

Preston

Lancashire

PR1 6AS

SOLICITORS:

Caytons Law

10a Tower 42

25 Old Broad Street

London

EC2N 1HQ

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

BACKGROUND

The company is a privately owned CAT1 roofing and contracting business, carrying out works throughout the whole of the UK. We have grown to be one of the largest and most respected envelope contractors servicing the entire of the United Kingdom via strategic regional offices down the spine of the country. We have developed our reputation over the years based on the ethos of being recognised as providing the highest quality roofing and cladding services delivered by trained, formally qualified professionals and as such our customer base has grown in both size and stature.

The company's strength lies in the following:

o Its' longevity.

o Its' collaborative approach to projects

o Its' outstanding technical support

o Its' ability to continually adapt.

o Its' ability to gain and retain client partnerships through fair negotiations and quality of supply.

o Its' people - highly trained, supported and motivated.

MAC is committed to being a market leader in the roofing and cladding industry - we have made it our mission to provide and deliver, reliable, quality services through a well trained and qualified workforce at every level.

We believe that the quality of our business is dependent upon the quality of our people. We treat both customers and employees with respect, fostering high standards of integrity, honesty, and professionalism at all times.

The company holds the ISO 9001,14001,14064-1 and 45001 accreditations, and many other sector standards such as Safe Contractor, SMAS Worksafe, Achilles, CHAS, Exor, and we were the first company in the north west to be accredited in the CITB pilot scheme for BeFair.

REVIEW OF BUSINESS

The company delivered another strong year of trading, reporting a profit before tax of £1,349k (2024: £952k). This continued growth reflects the success of our strategy to manage risk more effectively, particularly through selective bidding and avoiding fixed-price contracts without appropriate inflation protection.

Despite the impact of a £402k bad debt arising from the collapse of ISG Construction, the business has remained resilient and profitable.

The balance sheet has strengthened further to £2.8m (2024: £2.1m), supported by healthy cash reserves and disciplined financial management.

Our forward order book remains robust, with a high success rate in the infrastructure and public sector markets, providing a solid foundation for the year ahead.

PRINCIPAL RISKS AND UNCERTAINTIES

The following specific risks identified in our industry:

o Client or supply chain failure

o Volatility of raw material prices for fixed price contracts

o Low margin work where risk is disproportionate to potential returns

o Greater incidence of litigation and contractual disputes.

Internal processes are in place for assessing and managing the exposure to the above, and this has seen a move to working with a number of large, well established main contractors, as well as our continued work with local authorities.

Bidding risk

The company tenders selectively for contracts each year, with a thorough process for estimating and identifying risks associated with each contract before any formal tender is submitted. Further detailed reviews are undertaken by the board with the estimating division pre contract prior to us sanctioning permission to proceed.

Delivery risk

The delivery of contracts is controlled and managed through the Board and the team of contract managers and quantity surveyors. The company has monthly reviews on the progress of each contract, with items such as health and safety performance, issues affecting delivery and any consequential impact on costs to completion. This approach is underpinned by management's desire to identify any operational and commercial issues in good time so as to ensure appropriate actions can be taken to address them in the most effective way.

Changing government policies

With a number of large contracts being won from local authority work, the risk and uncertainty to our business, and that of many others, from changes in government spending policy cannot be ignored. Our increase in turnover has mainly being due to a much higher percentage being won from the private sector, therefore bringing this risk to an acceptable level.

Financial risk

Financial risks include liquidity/cashflow risk and credit risk. The company has being managing these risks by retaining profits to build our financial strength. The board regularly reviews the financial requirements of the company and we do not use complex financial instruments.

Volatility of raw material prices for fixed price contracts

As described above, we now have a policy of only entering into fixed priced contracts if there are fluctuation clauses for specific materials included coupled with inflationary increase should the project construction periods prolong outside of the agreed contract durations.

SECTION 172(1) STATEMENT

The directors of M.A.C. (Roofing & Contracting) Limited consider that they have acted in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members a a whole (having regard to the stakeholders and matters set out in S172(1) (a) - (f) of the Companies Act 2006) in the decisions take during the year ended 31 March 2025:

1. Our plan was designed to have a long term beneficial impact on the company and to contribute to its success in delivering a high quality of service across all areas of our business.

2. Our team members are fundamental to the delivery of our plan. We aim to be a responsible employer in our approach to the pay and benefits our team members receive. The health, safety and well being of our team members is one of our primary considerations in the way we do business.

3. Engagement with suppliers and customers is key to our success. We meet with our major manufacturing partners regularly throughout the year and take appropriate action, where necessary, to prevent involvement in modern slavery, corruption, bribery and breaches of competition law.

4. Our plan takes into account the impact of the company operations on the community, environment and our wider social responsibilities, in particular, how we comply with environmental legislation, pursue waste saving opportunities and react promptly to local community concerns.

5. Our intention is to behave responsibly and ensure that management operate the business in a responsible manner. Operating within the high standards of business conduct and good governance expected for a business such as ours and in doing so, will contribute to the delivery of our plan. The intention is to nurture our reputation, through both the construction and delivery of our plan, that reflects our responsible behavior.

EXPECTED FUTURE DEVELOPMENTS

The Board remains optimistic about the year ahead, supported by a solid pipeline of secured and targeted work across our core markets, including education, healthcare, and public sector refurbishment. While wider economic conditions remain mixed, recent stability in material costs and easing financing pressures are providing a more predictable trading environment.

Demand for large-scale roofing and cladding projects continues to strengthen, particularly within infrastructure, public estate remediation, and energy-efficient refurbishments.

The company will continue to focus on delivering fewer, larger projects with strong design, compliance, and quality control to protect margins and support sustainable growth.

Opportunities linked to building safety and energy performance are also expected to generate new project streams, and the Board anticipates another year of steady progress and positive financial performance.

KEY PERFORMANCE INDICATORS

The company implements a number of key performance indicators which are reviewed on a regular basis. These are listed below:

o Monthly management accounts, including profit and loss and balance sheet, with supporting commentary on significant variances over budget and prior period comparatives.

o Monthly contracts meeting with contract managers to review progress, together with reasons for any slippage, health and safety issues, and a review of any financial consequences which these may have.

o Contract reviews to highlight matters which require proactive solutions and Board involvement to mitigate risk.

o "Live" cashflow projections, which are updated daily to reflect movement in the company's liquid resources.

A summary of the tracked key performance indicators are as follows:

2023 (18m)

2024 (12m)

2025 (12m)

Forecast

Turnover

£78m

£55m

£55m

£60m

Gross Profit %

11%

18%

18%

18%

Net Profit / (Loss) before tax

(£2.1m)

£0.95m

£1.3m

£1.4m

Reserves

£1.6m

£2.1m

£2.8m

£3.8m

The Board are confident they can deliver the forecast results outlined above based on the current trading performance.

ON BEHALF OF THE BOARD:

T R Cavanagh - Director

10th 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 roofing contractors.

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.

T R Cavanagh

L J Cavanagh

STRATEGIC REPORT

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 considered in the directors' report.

DISABLED PERSONS

Applications for employment by disabled pensions are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

EMPLOYEE INVOLVEMENT

The company's policy is to consult and discuss with employees matters that are likely to affect employees' interest. Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

Customers

Our customers key interest is the availability of a range of our roofing and cladding services. We engage with our customers through social media, website, regular satisfaction surveys and regular meetings to build long-term relationships and service and product updates. Engagement with our customers enables to understand our customers needs, empowers us to deliver relevant products whilst retaining existing customers and attracting new ones.

Employees

Our employees key interests are career progression, remuneration and benefits, training and development, employee interaction and well-being. We engage with our employees through a recognition and reward environment with regular training programmes and a bonus scheme alongside the completion of annual surveys. Engagement with our employees is fundamental in delivering the customer experience and the key to our business success.

Suppliers

Our suppliers key interests are our logistical efficiencies, cost efficiencies, maintenance of quality product supply and good working relationships. We engage with our suppliers with regular conversations built upon long term relationships and product updates. Engagement with our supply chain ensures that we are able to supply our customers with the services they desire whilst maintaining supply security as far as possible.

Government

The governments key interest in our company is the payment of correct tax at the correct times along with compliance of laws and regulations. We engage with the government via HMRC with the submission and payment of tax returns. Engagement with the government ensures that policies and regulation changes are adhered to.

STREAMLINED ENERGY AND CARBON REPORTING

As a large UK company operating in the construction industry, M.A.C (Roofing & Contracting) Limited is committed to transparency in reporting its environmental impact. In accordance with Financial Reporting Standard 102 (FRS 102), we present our annual carbon emissions report covering the period from 1 April 2024 to 31 March 2025. This summary provides an overview of our greenhouse gas (GHG) emissions across all scopes.

Summary of Greenhouse Gas Emissions

Scope 1 (Direct Emissions): These are emissions from sources that are owned or controlled by the company, such as fuel combustion in company vehicles and equipment. Total Scope 1 emissions for the reporting period are 430.36 tonnes of CO2e (2024: 505.63 tonnes of CO2e).

Scope 2 (Indirect Emissions from Purchased Energy): These emissions result from the generation of purchased electricity, heat, or steam consumed by the company. Total Scope 2 emissions are 13.41 tonnes of CO2e (2024: 11.72 tonnes of CO2e).

Scope 3 (Other Indirect Emissions): This includes emissions that occur in the value chain, such as business travel, waste disposal, and supply chain activities. Total Scope 3 emissions are 5.62 tonnes of CO2e (2024: 7.03 tonnes of CO2e).

Methodology

The calculation of our GHG emissions has been conducted in line with the UK Government's Environmental Reporting Guidelines and industry best practices for the construction sector. Emission factors were sourced from the latest data published by the Department for Business, Energy & Industrial Strategy (BEIS).

Environmental Commitment

M.A.C (Roofing & Contracting) Limited recognises the importance of environmental stewardship. We are dedicated to monitoring our carbon footprint and exploring opportunities to reduce emissions in future reporting periods.

Forward-Looking Statements

We acknowledge that understanding and managing our environmental impact is an ongoing process. Moving forward, we aim to develop strategies and initiatives that contribute to sustainability and environmental responsibility within the construction industry.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and 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 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 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 auditor, SBCA Statutory Auditor, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

T R Cavanagh - Director

10th October 2025

Opinion

We have audited the financial statements of M.A.C. (Roofing & Contracting) Limited (the 'Company') for the year ended 31st March 2025 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position 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 eight, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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.

Based on our understanding of the company and sector, we identified that the principal risks of non-compliance with laws and regulations related to, but were not limited to, the Companies Act 2006, UK tax, employment, pension and health and safety legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements and fraudulent income recognition.

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct impact on the financial statements;

- enquiring of management about actual and potential litigation and claims, their policies and procedures to prevent and detect fraud as well as whether they have knowledge of any actual, suspected or alleged fraud;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- obtaining an understanding of provisions and holding discussions with management to understand the basis of recognition or non-recognition of tax provisions; and

- in addressing the risk of fraud through management override of controls: testing the appropriateness of journal entries; assessing whether the accounting estimates, judgements and decisions made by management are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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

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 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.

Christopher Bond (Senior Statutory Auditor)

for and on behalf of SBCA Statutory Auditor

17 Moor Park Avenue

Preston

Lancashire

PR1 6AS

10th October 2025

TURNOVER

4

54,567,878

54,783,310

Cost of sales

(44,793,841

)

(45,169,966

)

GROSS PROFIT

9,774,037

9,613,344

Administrative expenses

(9,233,224

)

(8,649,272

)

540,813

964,072

Other operating income

2,231,965

182,082

2,772,778

1,146,154

Exceptional Item

7

(1,276,703

)

-

1,496,075

1,146,154

Interest receivable and similar income

17,549

26,485

1,513,624

1,172,639

Interest payable and similar expenses

8

(164,349

)

(220,760

)

PROFIT BEFORE TAXATION

9

1,349,275

951,879

Tax on profit

10

(695,830

)

(476,213

)

PROFIT FOR THE FINANCIAL YEAR

653,445

475,666

Retained earnings at beginning of year

2,060,195

1,584,529

RETAINED EARNINGS AT END OF YEAR

2,713,640

2,060,195

FIXED ASSETS

Tangible assets

11

841,497

959,529

CURRENT ASSETS

Stocks

12

137,984

228,001

Debtors

13

19,076,646

19,063,963

Cash at bank

2,883,462

488,677

22,098,092

19,780,641

CREDITORS

Amounts falling due within one year

14

(14,537,427

)

(12,641,337

)

NET CURRENT ASSETS

7,560,665

7,139,304

TOTAL ASSETS LESS CURRENT LIABILITIES

8,402,162

8,098,833

CREDITORS

Amounts falling due after more than one year

15

(5,446,602

)

(5,808,491

)

PROVISIONS FOR LIABILITIES

18

(191,920

)

(180,147

)

NET ASSETS

2,763,640

2,110,195

CAPITAL AND RESERVES

Called up share capital

19

50,000

50,000

Retained earnings

20

2,713,640

2,060,195

SHAREHOLDERS' FUNDS

2,763,640

2,110,195

The financial statements were approved by the Board of Directors and authorised for issue on 10th October 2025 and were signed on its behalf by:

T R Cavanagh - Director

L J Cavanagh - Director

1.	STATUTORY INFORMATION

M.A.C. (Roofing & Contracting) 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 prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended give a true and fair view of assets, liabilities, financial position and profit and loss of the group. The company has therefore taken advantage of the exemptions from the following disclosure requirements:

- Section 4 'Statement of Financial Position' - Reconciliation of the opening and closing number of shares;

- 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 each category of financial instrument; 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 33 'Related Party Disclosures': Compensation for key management personnel.

The company is a wholly owned subsidiary and the financial statements of the company are consolidated in the financial statements of Cavanagh Commercial Holdings Limited. These consolidated financial statements are available from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has 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.

Turnover

Turnover represents the invoice value of work carried out during the year, net of Value Added Tax, adjusted for contractual work in progress as follows:

The amount by which recorded turnover is in excess of payments on account is classified as "amounts recoverable on contracts" and separately disclosed, as appropriate, within debtors due within one year and after more than one year.

The value of the recorded turnover has been determined by the following methods:

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The "percentage of completion method" is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as amounts recoverable on contracts, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

Tangible fixed assets

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

Improvements to property

-

10% on cost

Plant and machinery

-

25% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

25% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

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

Basic financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future cash flows 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 the 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 rate method.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability. Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Cash and cash equivalents

Cash is represented by cash in hand and deposits held with financial institutions repayable without penalty on notice.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, which are described in note 2, the director's are required to make judgements, estimates and assumptions about the carrying amounts 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 recongnised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision effects both current and future periods. The critical estimates made by the directors in preparing these financial statements relate to the useful economic life of tangible fixed assets, of which depreciation rates are disclosed in note 2.

Critical Judgements

The following judgements (apart from those involving estimates) could have had the most significant effect on amounts recognised in the financial statements:

Recognition of contract revenue and profit

This is a natural area of estimation uncertainty given the industry in which the company operates. The narrative to the turnover accounting policy in the financial statements provides further information.

The company uses suitably qualified Quantity Surveyors to assess the level of work done, associated revenue and thus profit recognition. These assessments are then reviewed by the company's finance team, providing an additional level of internal assurance that reduces the estimation uncertainty to an appropriate level.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Provision for irrecoverable trade debtors

At each balance sheet date, management undertake a review of the outstanding trade debtor balances and estimate the balance that should either be impaired or provided against. This calculation is based on the financial position of the customers, the historical speed of payment and any ongoing discussions.

4.

TURNOVER

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

An analysis of turnover by class of business is given below:

31.3.25

31.3.24

£

£

Construction contracts

54,567,878

54,783,310

54,567,878

54,783,310

An analysis of turnover by geographical market is given below:

31.3.25

31.3.24

£

£

United Kingdom

54,567,878

54,783,310

54,567,878

54,783,310

5.	EMPLOYEES AND DIRECTORS

31.3.25

31.3.24

£

£

Wages and salaries

4,891,521

4,647,094

Social security costs

577,647

536,202

Other pension costs

165,961

161,331

5,635,129

5,344,627

The average employee number of employees for the year were as follows:

31.3.25

31.3.24

Project delivery

99

90

Administration

10

10

Director

2

2

111

102

6.	DIRECTORS' EMOLUMENTS

31.3.25

31.3.24

£

£

Directors' remuneration

17,264

17,264

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

Money purchase schemes

2

2

7.	EXCEPTIONAL ITEMS

During the year, the company wrote off an amount of £1,276,703 due from a connected company. The write-off followed a review of historic intercompany balances and was undertaken to simplify and align accounting records. The transaction was administrative in nature and does not reflect any deterioration in the financial position of either company, nor any trading loss.

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.25

31.3.24

£

£

Interest

125,276

190,904

HMRC interest

6,159

9,292

Hire purchase interest

32,914

20,564

164,349

220,760

9.	PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

31.3.25

31.3.24

£

£

Hire of plant and machinery

1,931,727

1,790,932

Depreciation - owned assets

370,316

281,937

Loss/(profit) on disposal of fixed assets

845

(169,597

)

Auditors' remuneration

21,968

17,801

Hire of Motor Vehicles

266,258

268,033

Fees payable to the company's auditor for Non audit services

17,459

19,423

10.

TAXATION

Analysis of the tax charge

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

31.3.25

31.3.24

£

£

Current tax:

UK corporation tax

684,057

-

Deferred tax

11,773

476,213

Tax on profit

695,830

476,213

UK corporation tax was charged at 25%) in 2024.