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

The principal business of the company is to give a full maintenance service to its clients, based on Reactive and Planned instances across all categories. The company will continue to invest in its staff, equipment and technology to aid expansion in both the client base and in turnover. Growth this year has been facilitated by the new offices, allowing the addition of crucial staff to departments in-house, and an increase in the number of external engineers.

The key financial and other performance indicators during the year were as follows:

Risk - Lack of resource and skilled labour

There is a current risk in not having a large enough supply chain in all the regions we operate in. We have identified a corporate objective to widen our supply chain, both suppliers and sub contractors, in all three regions we currently cover.

Growth

Growth presents both an opportunity and a risk.

Business growth is rapid: turnover is increasing year on year and new contracts of works are being secured. A larger customer base makes us more visible and leads to further growth

However, growing quickly needs careful management to sustain the upward trend.

Risk - IT issues -

Our IT needs to be right to support our growth

Credit risk

Credit risk is the risk of financial loss to the company. Exposure to credit risk in relation to customers is managed through credit control processes which include active debtor management.

Liquidity risk

Liquidity risk is the risk that Genco Construction will not be able to meet its financial obligations as they fall due. Our company's approach to managing liquidity is to ensure as far as possible, that we will always have sufficient liquidity to meet liabilities when due under both normal and stressed conditions, without incurring unacceptable costs or risking damage to the Genco Construction reputation.

Considering its risk mitigation activities, the company's exposure to liquidity and credit risk is considered to be within normal parameters and represents an acceptable level of risk.

Financial instrument risk

The company uses various financial instruments, including loans and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. The company manages the instruments it chooses to use to minimise the risk from interest rate increases.

Executive Summary:

Following a successful year in 2024/25 where Genco Construction achieved a turnover of £29.31 million, the business is now positioned for continued sustainable growth in 2025/26. We forecast a turnover of £32.5 million, supported by organic growth in our core markets and the strategic expansion into Mechanical & Electrical (M&E) services.

This year marks a significant evolution of Genco’s service offering, including the formal launch of our M&E Division and the commencement of MC major works for the Co-op retail group from June 2025. These developments reflect our ongoing commitment to diversifying our portfolio and delivering high-quality services across multiple sectors.

Market Analysis:

Retail Sector:

• FM services in the retail sector remain the backbone of Genco’s operations, with consistent performance and high demand from Tesco and other key clients.

• Our strategic focus on strengthening relationships outside of Tesco continues, with new contract wins and increased volume of work.

New Market Expansion:

• M&E Services: The launch of our dedicated M&E Division is expected to bring an additional £1 million in revenue during 2025/26. Services will include electrical testing, mechanical maintenance, HVAC solutions, and compliance-driven installations.

• Co-op Major Works: Starting June 2025, Genco will undertake large-scale refurbishment and fit-out works across multiple Co-op retail sites under a main contractor agreement, further solidifying our presence in the retail FM sector.

• Healthcare, Rail, Education and Commercial Property: These sectors continue to show potential, and we will maintain focused efforts in expanding within these spaces, leveraging relationships and proven FM models.

Strategic Goals for 2025/26

1. Market Penetration and Revenue Growth

o Increase turnover through targeted project acquisition in the healthcare and rail sectors.

o Deepen penetration with Co-op and other non-Tesco clients.

o Grow M&E into a standalone revenue stream contributing £1M+ in the first year.

2. Operational Scalability

o Build internal capacity to manage large projects as main contractor, with a focus on supply chain reliability and project delivery excellence.

o Develop M&E engineering teams and regional coverage to support growth.

3. Digital and Technological Advancement

o Continue investing in our digital systems and explore AI-driven maintenance scheduling, asset management, and IoT monitoring solutions.

o Integrate M&E tracking into our existing JobFlow system or future ERP solution.

4. Sustainability and Compliance

o Expand use of renewable and low-carbon technologies across FM and M&E projects.

o Ensure fire safety and building compliance documentation are maintained at the highest standard, especially with our Regulation 38 compliance efforts.

Diversification and Innovation

• Service Offering:

We will fully integrate M&E solutions into our FM model, offering bundled packages for mechanical, electrical, and general maintenance.

Innovations like predictive maintenance via IoT, real-time energy tracking, and digital compliance tools will form part of our 2025/26 roadmap.

• Sectors of Focus:

o Healthcare: Scale up compliance-led FM services, including emergency systems and scheduled works.

o Rail: Finalise engagements with Network Rail to launch infrastructure works and station maintenance packages.

o Education: Re-enter the schools and academies space, focusing on summer works and safeguarding-led maintenance.

o Commercial Property: Work with developers such as GLP on pre-FM and handover maintenance planning.

Strategic Partnerships and Talent

• We will continue to seek strategic partnerships that enable regional expansion and improved logistics.

• In line with 2024/25 strategy, we will consider the acquisition of companies specialising in M&E and fire safety, to fast-track capability development.

• Recruitment of qualified engineers and project managers will be a priority to support our increased workload, particularly in M&E and major works delivery.

Financial Forecast Overview

• Turnover Target: £32.5 million (including £1M from M&E and new Co-op major works)

• Growth vs. 2024/25 Actual: ~12%

• Key Drivers:

o M&E revenue growth ramping through the year

o MC Co-op works commencing June 2025

o Increased non-Tesco client work

o Projected up trend in Q4 as large projects conclude

Conclusion:

Genco Construction enters 2025/26 with momentum and a clear strategic direction. The addition of M&E services and the Co-op MC works not only expands our revenue base but positions Genco as a multi-disciplinary service provider. Through measured investment in talent, systems, and partnerships, we will drive operational excellence and long-term sustainability, ensuring we maintain our reputation for reliability and innovation across the FM and construction sectors.

On behalf of the board

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

The principal activity of the company continued to be that of a full maintenance service to its clients, based on Reactive & Planned instances across all categories.

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £440,500. The directors do not recommend payment of a further dividend.

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

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

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

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

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

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

• select suitable accounting policies and then apply them consistently;

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

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

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

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

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

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

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

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

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

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

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

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

The audit is conducted by a team with the relevant competence and capability who will be alert to indications of fraud throughout the process. We discuss matters including non-compliance with laws and regulations and how fraud might occur. We also discuss what might indicate fraud and recognise the possibility of misstatement, whether intentional or unintentional.

We obtain an understanding of laws and regulations applicable to the company being those having a direct effect on the financial statements and also those that do not have a direct effect but compliance with which may be fundamental to continuing operation of the business. That understanding comes from discussions with management and those charged with governance, from independent research and knowledge of the business sector. The most significant laws and regulations include UK GAAP, the Companies Act 2006 and taxation law. Laws and regulations in relation to employment, health and safety and the environment may also impact. Our procedures are designed to obtain sufficient, appropriate evidence as a basis for our audit opinion.

We perform tests to identify unusual or unexpected transactions, balances, patterns or trends that may indicate a potential misstatement. We enquire of management, those charged with governance and third parties and we corroborate results to both internal documents and to third party documentation wherever possible. Where documentary evidence is unavailable, the assertions are confirmed in a letter of representation signed on behalf of the Board of Directors.

We consider the company’s internal control environment and ask management for their assessment of the risk of fraud and error. This company is owned and managed by a small number of individuals: we cannot therefore ignore the risk of management overriding controls which could lead to a misstatement of the financial statements. Procedures to address this risk include testing journal entries, assessing judgements and accounting estimates to challenge potential bias and evaluating the business rationale for unusual transactions.

An audit does not involve testing all transactions and balances. We use sampling methods incorporating a materiality figure set using our professional judgment. Something is considered immaterial if it could change without causing a reader of the financial statements to change their opinion on the results and financial position. There is risk that we will not detect all irregularities, including material misstatement in the financial statements or non-compliance with regulation where non-compliance is not measured in financial terms.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout. We assess the risk of misstatement of the financial statements, whether due to fraud or error, design and perform tests responsive to that risk, and obtain evidence, sufficient and appropriate to support our opinion. The risk of not detecting a misstatement arising from fraud is higher than for one arising from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of controls. We obtain an understanding of control systems to design appropriate tests, not to express an opinion on the system itself. We evaluate the appropriateness of accounting policies and the reasonableness of accounting estimates and related disclosures. We conclude on the going concern basis: if we conclude that a material uncertainty exists, we are required to draw attention in our report to the disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on evidence obtained to the date of our report. However, subsequent events may cause the company to not be a going concern. We evaluate the overall presentation, structure and content of the financial statements to ensure that they represent the underlying transactions and events in a manner that is fair. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit work.

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

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

Use of our report

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

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

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

Genco Construction Services Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Units 1 & 2, Genco Business Park, Ashford Road, Hollingbourne, Kent, ME17 1XH.

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

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

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

Consolidation

The company has taken advantage of the exemption from preparing consolidated financial statements contained in Section 402 of the Companies Act 2006 on the basis that its subsidiaries are excluded from consolidation on the grounds that their inclusion is not material for the purpose of giving a true and fair view. The financial statements present information about the company as an individual entity and not about its group.

Atruet 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.

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

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

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

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

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

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 profit or loss.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

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

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

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.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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.

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, 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, 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.

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

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

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

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

Financial liabilities 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, 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.

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

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value 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.

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

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.

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

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

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

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

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

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

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

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

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

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

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

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

Their aggregate remuneration comprised:

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

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

Reversals of previous impairment losses have been recognised in profit or loss as follows:

Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:

More information on impairment movements in the year is given in note 12.

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

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 5 years or less. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

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

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:

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

Amounts due of £206,440 (2024: £81,920), in respect of recharged expenses made to companies under common control were outstanding at the balance sheet date. The amounts outstanding are unsecured and will be settled in cash.

The company has provided a cross guarantee for its connected company with its bankers which covers a fixed and floating charge on all property or undertaking of the company.

Dividends totalling £440,500 (2024 - £200,000) were paid in the year in respect of shares held by the company's directors.