ARMAC DEMOLITION LIMITED 31/12/2024 iXBRL

Company registration number: 02790049

ARMAC DEMOLITION LIMITED

Annual report and financial statements

For the year ended

31 December 2024

ARMAC DEMOLITION LIMITED

Contents

Directors and other information

Strategic report

Directors report

Directors responsibilities statement

Independent auditor's report to the members

Statement of comprehensive income

Statement of financial position

Statement of changes in equity

Statement of cash flows

Notes to the financial statements

ARMAC DEMOLITION LIMITED

Directors and other information


	Directors	Mr M Dudley
		Mr A McLean
		Mr N McLean


	Secretary	Mr N McLean


	Company number	02790049


	Registered office	Stonebridge House
		Kenilworth Road
		Meriden
		West Midlands
		CV7 7LJ


	Auditor	Ballards LLP
		Oakmoore Court
		Droitwich
		Worcs
		WR9 0QH

ARMAC DEMOLITION LIMITED

Strategic report

Year ended 31 December 2024

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

Fair review of the business

Armac Demolition Limited (the "company") principal activities are providing Demolition, Land Reclamation, Remediation and Environmental services to the Public Sector, Industrial, Residential Developers and Landowners. Furthermore, Armac are the preeminent market leader in technical, design led, complex deconstruction. With a repeat order book from national agencies such as HS2, Network Rail & National Highways, Armac continue to excel in the specialist dismantling sector.

The business has performed well in the current financial period with strong growth and profitability.

The profit for the period, after taxation is £391,382 (2023: £633,842).

Principal risks and uncertainties

The business continues to research efficiency and sustainability opportunities both with our plant and vehicle fleet as well as the recycling of waste from site to resale of reusable items.

We are consolidating and seeking to expand further our specialist work and client base.

The principal risks and uncertainties facing the company are the lack of confidence in the economy and erratic public sector spend.

Recruitment continues to be challenging with a shortage of younger applicants for both apprenticeships and on site work.

The new financial year shows continued activity levels, our current order book remains steady and enquiries are strong for future projects both with existing customers and new clients.

Competitive risks

Armac continue to look at innovative solutions to retain a competitive advantage on tendering opportunities and pursue early contractor involvement with clients to produce cost and program efficient solutions.

Legislative risks

As part of a high risk industry the Armac team and directors consider our approach to Health & Safety critical to the future of the business and we maintain a fully trained and accredited workforce to help achieve that goal.

Development and performance

The company's key financial and other performance indicators during the period were as follows: £,000 £,000 Years 2024 2023 Turnover 14,186 22,704 Change-37.5% Operating Profit 392 715Change-45.2%Shareholder's equity as % of current liabilities 127.3% 199.6%Change-36.2%Current assets as % of current liablities 167% 201%Change -17.0%

Key performance indicators

The Company has faced higher than normal cost increases in materials and plant costs which we continually monitor and assess ways of cost reduction and alternative suppliers and products.

Salary and wage increases are within industry guidelines

-

This report was approved by the board of directors on 10 October 2025 and signed on behalf of the board by:

Mr N McLean

Director

Mr A McLean

Director

ARMAC DEMOLITION LIMITED

Directors report

Year ended 31 December 2024

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

Principal activities

The principal activity of the company continued to be that of crushing and demolition services.

Directors

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

Mr M Dudley

Mr A McLean

Mr N McLean

Results and dividends

The results for the year are set out on Page 10

Dividends have been paid for the period, on the Ordinary "A" Shares of £1 each. Dividends of £300,000 were paid on the Ordinary "A" Shares.

Auditor

The auditor, Ballards LLP, is deemed to have been appointed in accordance with section 487 of the Companies Act 2006.

Statement of disclosure to auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

A resolution to reappoint Ballards LLP as auditor will be proposed at the forthcoming Annual General Meeting.

Strategic Report

The company has chosen in accordance with the companies act 2006, S414 C (11) to set out in the companies strategic report information required by large and medium sized companies and groups (Accounts and Reports) Regulations 2008, sch 7 to be contained in the directors report.

Medium-sized companies exemption

This report has been prepared in accordance with the previous applicable to companies entitled to the medium-sized companies exemption.

This report was approved by the board of directors on 10 October 2025 and signed on behalf of the board by:

Mr N McLean Mr A McLean

Director Director

ARMAC DEMOLITION LIMITED

Directors responsibilities statement

Year ended 31 December 2024

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

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

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

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

ARMAC DEMOLITION LIMITED

Independent auditor's report to the members of

ARMAC DEMOLITION LIMITED

Year ended 31 December 2024

Opinion

We have audited the financial statements of ARMAC DEMOLITION LIMITED (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other Information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters 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 the 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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.

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

Identifying and assessing potential risks related to irregularities.

In identifying and assessing risks of material misstatement in respect of irregularities, including

- the nature of the industry and sector, control environment and business performance;

- results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- any matters we identified having obtained and reviewed the company’s documentation of their policies and procedures relating to:

– identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

– detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

– the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following area: revenue recognition.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts

and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK Bribery Act as well as pensions legislation and tax legislation.

Audit response to risks identified.

As a result of performing the above, we identified revenue recognition as an audit matter related to the potential risk of fraud.

In addition to the above, our procedures to respond to risks identified included the following:

- reviewing revenue to supporting documentation

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

- reading minutes of meetings of those charged with governance; and

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments;

assessing whether the judgements made in making accounting estimates 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.

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

Use of our report

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

James Syree Bsc FCA (Senior Statutory Auditor)

For and on behalf of

Ballards LLP

Oakmoore Court

Droitwich

Worcs

WR9 0QH

10 October 2025

ARMAC DEMOLITION LIMITED

Statement of comprehensive income

Year ended 31 December 2024

As restated

		Year ended	Period ended
			As restated
		31/12/24	31/12/23
	Note	£	£

Turnover	4	14,186,370	22,704,247
Cost of sales		( 11,234,907)	( 18,118,422)
		_______	_______
Gross profit		2,951,463	4,585,825

Administrative expenses		( 2,559,915)	( 3,871,108)
Other operating income	5	-	416
		_______	_______
Operating profit	6	391,548	715,133

Other interest receivable and similar income	9	139,061	53,302
Interest payable and similar expenses	10	( 28,361)	( 7,980)
Profit before taxation		502,248	760,455

Tax on profit	11	( 110,866)	( 126,613)
		_______	_______
Profit for the financial year		391,382	633,842
		_______	_______
Total comprehensive income for the year		391,382	633,842
		_______	_______

All the activities of the company are from continuing operations.

Company registration number: 02790049

ARMAC DEMOLITION LIMITED

Statement of financial position

31 December 2024

As restated

Year ended Period ended

		31/12/24		31/12/23
	Note	£	£	£	£

Fixed assets
Tangible assets	13	3,428,743		3,429,141
		_______		_______
			3,428,743		3,429,141

Current assets
Debtors	14	3,859,573		3,205,635
Cash at bank and in hand		4,215,642		2,904,283
		_______		_______
		8,075,215		6,109,918
Creditors: amounts falling due
within one year	16	(4,828,830)		( 3,033,073)
		_______		_______
Net current assets			3,246,385		3,076,845
			_______		_______
Total assets less current liabilities			6,675,128		6,505,986

Creditors: amounts falling due
after more than one year	17		( 233,000)		( 151,043)

Provisions for liabilities	19		( 838,106)		( 842,303)

			_______		_______
Net assets			5,604,022		5,512,640
			_______		_______

Capital and reserves
Called up share capital	23		202		202
Profit and loss account			5,603,820		5,512,438
			_______		_______
Shareholders funds			5,604,022		5,512,640
			_______		_______

These financial statements have been prepared in accordance with the provisions relating to the medium-sized companies.

These financial statements were approved by the board of directors and authorised for issue on 10 October 2025 , and are signed on behalf of the board by:

Mr N McLean Mr A McLean

Director Director

Company registration number: 02790049

ARMAC DEMOLITION LIMITED

Statement of changes in equity

Year ended 31 December 2024

	Called up share capital	Profit and loss account	Total
	£	£	£


At 1 July 2022 (as previously reported)	202	5,278,596	5,278,798
Prior period adjustments	(-)	(326,913)	(326,913)
	_______	_______	_______
At 1 July 2022 (restated)	202	4,951,683	4,951,885

Profit for the year		633,842	633,842
	_______	_______	_______
Total comprehensive income for the year	-	633,842	633,842

Dividends paid and payable		( 400,000)	( 400,000)
	_______	_______	_______
Total investments by and distributions to owners	-	( 400,000)	( 400,000)

At 31 December 2023 (as previously reported)	202	5,178,181	5,178,383
Prior Year Adjustments to Opening Reserve	(-)	7,344	7,344
Prior period adjustments	(-)	326,913	326,913
	_______	_______	_______
At 31 December 2023 (restated) and 1 January 2024	202	5,512,438	5,512,640

Profit for the year		391,382	391,382
	_______	_______	_______
Total comprehensive income for the year	-	391,382	391,382

Dividends paid and payable		( 300,000)	( 300,000)
	_______	_______	_______
Total investments by and distributions to owners	-	( 300,000)	( 300,000)

	_______	_______	_______
At 31 December 2024	202	5,603,820	5,604,022
	_______	_______	_______

ARMAC DEMOLITION LIMITED

Statement of cash flows

Year ended 31 December 2024

As restated

		Year ended	Period ended
			As restated
		31/12/24	31/12/23
	Note	£	£

Cash flows from operating activities
Profit for the financial year		391,382	633,842

Adjustments for:
Depreciation of tangible assets		819,591	1,327,682
Other interest receivable and similar income		( 139,061)	( 53,302)
Interest payable and similar expenses		28,361	7,980
Gain/(loss) on disposal of tangible assets		( 16,337)	( 83,199)
Tax on profit		136,890	149,427

Changes in:
Trade and other debtors		( 617,093)	1,100,785
Trade and other creditors		1,062,813	( 580,535)
		_______	_______
Cash generated from operations		1,666,546	2,502,680

Interest paid		( 28,361)	( 7,980)
Interest received		139,061	53,302
Tax paid		543,829	183,353
		_______	_______
Net cash from operating activities		2,321,075	2,731,355
		_______	_______

Cash flows from investing activities
Purchase of tangible assets		( 896,518)	( 1,623,661)
Proceeds from sale of tangible assets		93,662	227,015
		_______	_______
Net cash used in investing activities		( 802,856)	( 1,396,646)
		_______	_______

Cash flows from financing activities
Proceeds from loans from participating interests		( 36,844)	( 968,632)
Payment of finance lease liabilities		129,984	( 287,207)
Equity dividends paid		( 300,000)	( 400,000)
		_______	_______
Net cash used in financing activities		( 206,860)	( 1,655,839)
		_______	_______

Net increase/(decrease) in cash and cash equivalents		1,311,359	( 321,130)
Cash and cash equivalents at beginning of year	15	2,904,283	3,225,413
		_______	_______
Cash and cash equivalents at end of year	15	4,215,642	2,904,283
		_______	_______

ARMAC DEMOLITION LIMITED

Notes to the financial statements

Year ended 31 December 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Armac Demolition Limited, Stonebridge House, Kenilworth Road, Meriden, West Midlands, CV7 7LJ.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. and the requirements of the Companies Act 2006.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

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

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 is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Long Term Contract

Long term contracts are assessed on a contract by contract basis and turnover and profits are reflected in the profit and loss accounts as contract activity progresses. 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.

Tangible assets

tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:


Freehold and leasehold properties	-	Over the period of the lease
Plant and machinery	-	15-33.3% Reducing balance, 10% straight line
Fittings fixtures and equipment	-	15-33.3% Reducing balance
Motor vehicles	-	25-33.3% Reducing balance

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 credited or charged to the profit or loss.

Impairment of fixed assets

At each reporting period end date, the company 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.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.

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

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. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with 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 method 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.

Impairment of financial assets

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

Classification of financial liabilites

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, 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 payments 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.

Other financial liabilites

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 paragraph11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through 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 company's contractual obligations expire or are discharged or cancelled.

Equity Instruments

Equity instruments issued by the company 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 company.

Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

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 company'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 liability 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 liablilty 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 when the company has 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.

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

Retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

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.Finance leases are capitalised as tangible fixed assets and depreciated over their useful lives.Rentals payable under operating leases, are charged to the profit and loss account on date payments are made.

Judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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.

Stage of completion of work in progress

In determining the amounts of income and profits/losses on long term contract work in progress to be recognised in the financial year, the directors consider factors such as costs incurred to date, estimated costs to complete, any associated risks and past experience of similar contracts.

Recharge of costs

In determining the amounts to be recharged for tipping and management charges to be recognised in the financial year, the directors estimated the recharge based on a % of actual costs incurred.

4. Turnover

The turnover and profit before taxation is attributable to the principal activity of the company which is the provision of demolition services.

All turnover arose within United Kingdom.

Turnover arises from:

		As restated
	Year ended	Period ended
	31/12/24	31/12/23
	£	£
Contract Works	11,098,746	16,907,768
Plant Hire	71,741	314,799
Sale of Scrap Metal	2,518,122	4,440,634
Other Revenue	497,761	1,041,046
	_______	_______
	14,186,370	22,704,247
	_______	_______

5. Other operating income

		As restated
	Year ended	Period ended
	31/12/24	31/12/23
	£	£
Other operating income	-	416
	_______	_______

6. Operating profit

Operating profit is stated after charging/(crediting):

		As restated
	Year ended	Period ended
	31/12/24	31/12/23
	£	£
Depreciation of tangible assets	538,291	829,385
Depreciation of tangible fixed assets held under finance leases	281,300	498,297
(Gain)/loss on disposal of tangible assets	( 16,337)	( 83,199)
Operating lease rentals	-	4,003
Fees payable for the audit of the financial statements	2,100	10,225
	_______	_______

7. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

		As restated
	Year ended	Period ended
	31/12/24	31/12/23
Directors	3	3
Staff	6	6
Direct	51	60
	_______	_______
	60	69
	_______	_______

The aggregate payroll costs incurred during the year were:

		As restated
	Year ended	Period ended
	31/12/24	31/12/23
	£	£
Wages and salaries	3,405,952	5,949,031
Social security costs	332,027	633,757
Other pension costs	66,097	100,816
PHI Costs	4,440	7,436
	_______	_______
	3,808,516	6,691,040
	_______	_______

8. Directors remuneration

The directors aggregate remuneration in respect of qualifying services was:

		As restated
	Year ended	Period ended

	31/12/24	31/12/23
	£	£
Remuneration	397,367	1,207,535
	_______	_______

The number of directors whom retirement benefits are accruing under defined contribution schemes amounted to:

		As restated
	Year ended	Period ended

	31/12/24	31/12/23
	Number	Number
Defined contribution plans	3	3
	_______	_______

Remuneration of the highest paid directors in respect of qualifying services:

		As restated
	Year ended	Period ended

	31/12/24	31/12/23
	£	£
Aggregate remuneration	201,313	229,614
	_______	_______
	201,313	229,614
	_______	_______

9. Other interest receivable and similar income As restated

	Year ended	Period ended

	31/12/24	31/12/23
	£	£
Other interest receivable and similar income	139,061	53,302
	_______	_______

10. Interest payable and similar expenses

As restated

		Year ended	Period ended

		31/12/24	31/12/23
		£	£
Other loans made to the company:
	Finance leases and hire purchase contracts	9,629	20,826
Other interest payable and similar expenses		18,732	( 12,846)
		_______	_______
		28,361	7,980
		_______	_______

11. Tax on profit

Major components of tax expense As restated

	Year ended	Period ended

	31/12/24	31/12/23
	£	£
Current tax:
UK current tax expense	136,890	109,919
Adjustments in respect of previous periods	( 21,827)	( 22,814)
	_______	_______

Deferred tax:
Origination and reversal of timing differences	(4,197)	39,508
	_______	_______
Tax on profit	110,866	126,613
	_______	_______

Reconciliation of tax expense

The tax assessed on the profit for the year is lower than (2023: lower than) the standard rate of corporation tax in the UK of 25.00 % (2023: 25.00%).

As restated

	Year ended	Period ended

	31/12/24	31/12/23
	£	£
Profit before taxation	502,248	760,455
	_______	_______

Profit multiplied by rate of tax	125,562	192,440
Adjustments in respect of prior periods	( 21,827)	( 22,814)
Effect of expenses not deductible for tax purposes	7,131	7,578
Effect of capital allowances and depreciation	4,197	( 90,099)
Deferred Tax movement including tax change	( 4,197)	39,508
	_______	_______
Tax on profit	110,866	126,613
	_______	_______

12. Dividends

Equity dividends As restated

	Year ended	Period ended

	31/12/24	31/12/23
	£	£
Dividends paid during the year	300,000	400,000
	_______	_______

13. Tangible assets

	Freehold and leasehold properties	Plant and machinery	Motor vehicles	Total
	£	£	£	£
Cost
At 1 January 2024	81,904	6,556,573	1,001,887	7,640,364
Additions	-	799,688	96,830	896,518
Disposals	-	( 442,792)	( 92,980)	( 535,772)
	_______	_______	_______	_______
At 31 December 2024	81,904	6,913,469	1,005,737	8,001,110
	_______	_______	_______	_______
Depreciation
At 1 January 2024	61,428	3,653,980	495,815	4,211,223
Charge for the year	8,190	689,421	121,980	819,591
Disposals	-	( 425,534)	( 32,913)	( 458,447)
	_______	_______	_______	_______
At 31 December 2024	69,618	3,917,867	584,882	4,572,367
	_______	_______	_______	_______
Carrying amount
At 31 December 2024	12,286	2,995,602	420,855	3,428,743
	_______	_______	_______	_______
At 31 December 2023	20,476	2,902,593	506,072	3,429,141
	_______	_______	_______	_______

Obligations under finance leases

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:


	Plant and machinery	Tangible assets - user defined
	£	£
At 31 December 2024	966,111	83,866
	_______	_______
At 31 December 2023	1,094,000	185,417
	_______	_______

14. Debtors

As restated

Year ended Period ended

	31/12/24	31/12/23
	£	£
Trade debtors	1,722,047	1,250,619
Prepayments and accrued income	357,497	211,831
Other debtors	1,780,029	1,743,185
	_______	_______
	3,859,573	3,205,635
	_______	_______

15. Cash and cash equivalents

As restated

Year ended Period ended

	31/12/24	31/12/23
	£	£
Cash at bank and in hand	4,215,642	2,904,283
	_______	_______

16. Creditors: amounts falling due within one year

As restated

Year ended Period ended

	31/12/24	31/12/23
	£	£
Bank loans and overdrafts	(-)	-
Trade creditors	3,145,691	1,922,550
Accruals and deferred income	10,000	10,000
Corporation tax	146,200	543,828
Social security and other taxes	305,855	135,071
Obligations under finance leases	184,150	136,123
Other creditors	1,036,934	285,501
	_______	_______
	4,828,830	3,033,073
	_______	_______

The company have included an Insurance Liability provision due to an on-going claim.

A debenture was created on 18th October 2010, with Lloyds Bank plc, for a fixed and floating charge with reference to credit facilities in place.

17. Creditors: amounts falling due after more than one year

As restated

Year ended Period ended

	31/12/24	31/12/23
	£	£
Obligations under finance leases	233,000	151,043
	_______	_______

18. Obligations under finance leases

Company lessee

The total future minimum lease payments under finance lease agreements are as follows:

As restated

Year ended Period ended

	31/12/24	31/12/23
	£	£
Not later than 1 year	184,150	136,123
Later than 1 year and not later than 5 years	233,000	151,044
	_______	_______
	417,150	287,167
	_______	_______
Present value of minimum lease payments	417,150	287,167
	_______	_______

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

				31/12/24	31/12/23

19. Provisions
		Deferred tax (note 20)	Total
		£	£
	At 1 January 2024	842,303	842,303
	Additions	( 4,197)	( 4,197)
		_______	_______
	At 31 December 2024	838,106	838,106
		_______	_______

20. Deferred tax

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for statement of financial position purposes:

As restated

Year ended Period ended

	31/12/24	31/12/23
	£	£
Included in provisions (note 19)	838,106	842,303
	_______	_______

The deferred tax account consists of the tax effect of timing differences in respect of:

As restated

Year ended Period ended

	31/12/24	31/12/23
	£	£
Accelerated capital allowances	838,106	842,303
	_______	_______

Movement in the year

Liability at 1 January 2024 842,303

Charge to profit or loss (4,197)

838,106

_______ |

The deferred tax liability set out above relates to accelerated capital allowances £217,112 of the deferred tax liability set out above is expected to reverse within 12 months.

21. Employee benefits

The amount recognised in profit or loss in relation to defined contribution plans was £ 66,097 (2023: £ 100,816 ).

The company operates a workplace pension scheme for all eligible employees. The assets of the scheme are held separately from those of the company in an independently administered fund. This fund is administered by The Peoples Pension. The Company as principal employer has established a self administered pension scheme, The Armac Demolition Pension Scheme. The company contributed £nil (2023- £nil) in the year. The scheme operates on a "money purchase basis" in that all benefits payable to the trustees or their dependants is based on the value of the assets held in the scheme on behalf of the trustees.

22. Prior period errors

The company needs to make an adjustment for S455 Tax due on the Directors' Loan Accounts, which was misrepresented. This charge will be reversed once the Directors Loan Accounts have been settled.

The company needs to make an adjustment to Stock, due to a miscalculation in previous years.

The overall net effect has been to increase brought forward distributable reserves at 1 January 2024 by £334,257. An analysis of the impact of the prior period adjustments on the brought forward results is disclosed below.

Balance Sheet Balance Sheet Profit & Loss Profit & Loss

Work in Progress Other Debtors Period End Reserves C/fwd

31 Dec 2023 31 Dec 2023 31 Dec 2023 31 Dec 2023

£ £ £ £

As originally stated 99,652 199,933 5,178,181

Work in Progress not (99,652) (99,652)

released to cost of sales

S455 tax debtor 433,909 433,909 433,909

incorectly written off

_______ _______ _______ _______

As restated - 433,909 633,842 5,512,438

_______ _______ _______ _______

23. Called up share capital

Issued, called up and fully paid

As restated

Year ended Period ended

	31/12/24		31/12/23
	No	£	No	£
200 Ordinary "A" Shares shares of £ 1.00 each	200	200	200	200
2 Ordinary "B" Shares shares of £ 1.00 each	2	2	2	2
	_______	_______	_______	_______
	202	202	202	202
	_______	_______	_______	_______

24. Operating leases

Leases

Operating lease payments represent rentals payable by the company for certain items of office equipment and motor vehicles and rent of property . In 2016 year the Company entered into a ten year lease on office property, other leases are negotiated for average period of 3 years. Originally, the lease on the property was with a third party, subsequently the property was purchased by The Armac Demolition Pension Scheme. The Company has sub-let a section of the office property by way of a lease. Rentals received are netted off rent and rates payable in the profit and loss account. The tenant also contributes to the service costs of the property and the money received is netted against appropriate profit and loss expense. At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

As restated

Year ended Period ended


	£	£
Not later than 1 year	72,666	69,535
Later than 1 year and not later than 5 years	183,839	221,095
	_______	_______
	256,505	290,630
	_______	_______

25. Related party transactions

During the year the company traded with Armac Environmental Limited and Stonebridge Plant Limited, related parties of Armac Demolition Limited, due to common directorships as follows:

As restated

Year ended Period ended

Armac Environmental Limited 31/12/24 31/12/23

Sales to 283,395 1,370,325

Purchases from 1,444,280 2,970,709

In Trade Creditors 1,339,119 1,080,041

Stonebridge Plant Limited

Sales to - 8,450

Purchases from 343,548 813,675

In Trade Creditors 29,626 205,560

During the year the company traded Eaglebeam Limited, a company which Messrs A and N McLean are directors of:

Eaglebeam Limited

Sales to 12,298 22,015

Purchases from 60,963 165,636

In Trade Creditors 9,600 10,352

During the year the company traded with Arden Landfill Limited, on an arms length basis, a company which Messrs A and N McLean are directors of:

Arden Landfill Limited

Sales to -

Purchases from 15,000 124,199

In Trade Debtors -

During the year the company traded with Demo Plus Limited, a company under the control of A. McLean's family, the transactions were at arms length:

Demo Plant Limited

Sales to 12,000 20,659

Purchases from 22,000 2,500

In Trade Debtors - 590

In Trade Creditors 11,410 -

During the year the company paid rent of £90,000 (2023 £63,000) to The Armac Demolition Scheme, the Directors and their wives being trustees of The Armac Demolition Pension Scheme.

Transactions with directors

Loans have been granted by the group to its directors as follows:

Description % Rate Opening Balance Amounts Advanced Interest Charged Amounts Repaid Closing Balance

Loans to Directors 2 £1,285,657 £5,006 £28,907 £6,381 £1,313,190

26. Controlling party

There is no ultimate controlling party.