REGISTERED NUMBER: 00753976 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 March 2025

for

Breheny Civil Engineering Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

9

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTORS:

J N E Breheny

S T Burnside

A Fleming

S Aziz

SECRETARY:

S Aziz

REGISTERED OFFICE:

Flordon Road

Creeting St Mary

Ipswich

Suffolk

IP6 8NH

REGISTERED NUMBER:

00753976 (England and Wales)

AUDITORS:

Wright Vigar Limited

Statutory Auditors

Chartered Accountants & Business Advisers

15 Newland

Lincoln

Lincolnshire

LN1 1XG

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

REVIEW OF BUSINESS

The UK construction industry in 2024/25 has experienced mixed results, although the economic outlook remained positive. Even with growth forecast to be 1.9% in 2025 and 3.7% in 2026, there has been a consistent number of construction companies which have become insolvent year on year.

However, we are pleased to report Breheny Civil Engineering accounts for 2024/25, have continued to maintain healthy margins. To which keeps the group in the top 100 civil engineering companies in the UK.

The financial result for March 2024/25 is comparable with the previous year. The financial performance further strengthens our belief that our approach to pricing, risk and our investment in our people, help us deliver projects not only on budget, but to a high standard. Breheny Civil Engineering is regularly regarded as a preferred contractor and prides itself for winning repeat work from its existing client base.

Business Outlook

It is important to maintain a cautious but positive approach to the forthcoming year. Government spending is under scrutiny and potential tax increases lower confidence in the economy.

Despite these challenges many of the companies within the Breheny Group have secured contracts and margins comparable to previous years.

We are continuing to invest in plant and machinery and more importantly our employees. We are also proactive in looking at ways to diversify our revenue streams.

Breheny Civil Engineering continues to be the flagship business within the group, however our groundworks and utilities companies, Terrasite and Networx respectively, continue to grow and flourish.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks of the business comprise:

Credit Risk

The Company undertakes credit checks of new clients before entering into contracts and reviews continuously the credit ratings of existing clients. Credit risk is mitigated by securing parent and bank guarantees, working for a wide client base and maintaining positive cash balances.

Interest Rate and Liquidity Risks

The Company reinvests profits to fund growth, develop the business and maintain positive cash balances. Therefore interest rate and liquidity risks are minimised.

Contractual Risk

The Company is exposed to a variety of contractual risks according to the type of contract undertaken. Risks include: unknown ground conditions, adverse weather, material inflation and matching the client's requirements to the correct tender price. These risks are managed by regular contract reviews undertaken by the management team.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

Section 172 (1) Statement

The revised UK Corporate Governance Code ('2018 Code') was published in July 2018 and applies to accounting periods beginning on or after January 1, 2019. The Companies (Miscellaneous Reporting) Regulations 2018 ('2018 MRR') require Directors to explain how they considered the interests of key stakeholders and the broader matters set out in section 172(1) (A) to (F) of the Companies Act 2006 ('S172') when performing their duty to promote the success of the Company under S172. This includes considering the interest of other stakeholders which will have an impact on the long-term success of the company. This S172 statement, which is reported for the first time, explains how Breheny Civil Engineering Limited Directors:

- have engaged with employees, suppliers, customers and others; and

- have had regard to employee interests, the need to foster the company's business relationships with suppliers, customers and other, and the effect of that regards, including on the principal decisions taken by the company during the financial year.

The S172 statement focuses on matters of strategic importance to the company, and the level of information disclosed is consistent with the size and the complexity of the business.

The Board of directors are aware of their responsibilities and when making decisions, each director ensures that they acts in the way that they consider in good faith, would most likely promote the Company's success for the benefit of its members as a whole and in doing so has regard to:

S172(1) (A) The likely consequences of any decision in the long term. The investments set out in the review of the business and research and development sections of the strategic report illustrate the long term focus of the directors.

S172(1) (B) The interests of the company's employees. Details of the way the company is set out in the employee involvement section of the strategic report. The directors recognise that the employees are fundamental to the delivery of strategic ambitions and work closely with their representatives.

S172(1) (C) The need to foster the company's business relationships with suppliers, customers and others. Delivery of strategic goals requires strong mutually beneficial relationships with suppliers, customers and other agencies. The business continuously assesses the customer base within the context of business strategy and the management team ensures that these relationships are maintained.

S172(1) (D) The impact of the company's operations on the community and the environment. The company considers its energy usage looking to make efficiencies where possible. The company continues to invest resources to reduce the amount of raw materials we use in our activities.

S172(1) (E) The desirability of the company maintaining a reputation for high standards of business conduct. Compliance with relevant governance standards helps assure that the correct decision are made by the board which promote high standards of business conduct.

S172(1) (F) The need to act fairly between members of the company. The directors consider all factors when determining the best course of action to deliver the Company's long term strategic goals. The impact on all stakeholders is considered as fairly as possible in the interest of the Company.

KEY PERFORMANCE INDICATORS

Financial

The Company measures its financial performance against a selected group of civil engineering companies. The Key Performance Indicators used include: Current Ratio, Quick Ratio (Acid Test), Net Profit Margin, Return on Assets and Net Worth. For the current year the Current Ratio stood at 1.44 (2024: 1.51) and the Gross Profit Margin was 13.1% (2024: 13.1%).

Non-Financial

The Company also measures its performance using non-financial indicators. The Key Performance Indicators measured include:

Safety: Accident Incidence Rate, Accident Frequency Rate, Service Strike Frequency Rate and Employee CSCS Card Percentage.

Environment: Environmental Incidents, CO2 Emissions, Office Water Use, Waste Production and Recycled Aggregate Use.

Client Satisfaction: Upon completion of a contract clients are surveyed to determine their satisfaction with the competed project across a range of criteria. The criteria include: Quality of Work, Completion on Time, Teamwork and Savings and Innovation.

ON BEHALF OF THE BOARD:

S Aziz - Secretary

15 October 2025

The directors present their report with the financial statements of the company for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of civil engineering. There has been no significant change in this activity during the year.

DIVIDENDS

An interim dividend of 4.4444 per share was paid on 10 March 2025. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2025 will be £ 4,000,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2024 to the date of this report.

J N E Breheny

S T Burnside

A Fleming

Other changes in directors holding office are as follows:

S Aziz - appointed 1 July 2024

DISABLED EMPLOYEES

The Company gives full consideration to applications for employment from disabled persons where the requirement of the job can be adequately fulfilled by a handicapped or disabled person.

Where existing employees become disabled, it is the Company's policy wherever practical to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.

EMPLOYEE INVOLVEMENT

During the year, the policy of providing employees with information about the Company has continued. Employees have also been encouraged to present their suggestions and views.

GREENHOUSE GAS EMISSIONS, ENERGY CONSUMPTION & ENERGY EFFICIENCY

The details below are base on the calender years.

Carbon Dioxide Emissions

The UK annual quantity of emissions in tonnes of carbon dioxide equivalent resulting from activities for which the company is responsible involving the consumption of gas was 5.84 tonnes (2023: 10.62 tonnes).

The quantity involving the consumption of fuel for the purposes of transport was 5,827.01 (2023: 6,238.09) tonnes.

The quantity involving the purchase of electricity for the company's own use, including for the purposes of transport was 119.64 tonnes (2023:95.27 tonnes).

kWh Usage

The aggregated kWh of UK annual energy consumed from activities for which the company is responsible involving combustion of gas was 31,931 kWh (2023: 57,851 kWh).

The quantity involving the consumption of fuel for the purposes of transport was 24,356,524 kWh (2023: 22,578,465 kWh).

The quantity involving the purchase of electricity by the company for its own use, including for the purposes of transport was 370,089 kWh (2023: 480,745 kWh).

Methodology

Energy consumption is determined from meter readings and invoices received for the given year being assessed. CO2 emissions are determined using the appropriate conversion factor for energy type obtained from UK Government information for company reporting of greenhouse gas emissions.

Ratios

In order to effectively manage the energy performance of the Company's facilities, systems, processes and equipment, management consider mWh per £million of turnover to be the key energy performance indicator (EnPI). The ratios for this year are as follows:

Energy type

EnPl

2024 ratio

2023 ratio

Gas oil

MWh/£Million turnover

-

-

Diesel

MWh/£Million turnover

1,915.56

1,747.04

Petrol

MWh/£Million turnover

6.92

6.92

Natural Gas

MWh/£Million turnover

4.49

4.49

Electricity

MWh/£Million turnover

42.76

37.35

Biomass

MWh/£Million turnover

21.22

21.22

Measures taken to improve efficiency

The following environmental management measures and projects have been completed or implemented since the 2018 baseline.

- All BCE owned premises have had their fluorescent lighting replaced with LEDs;

- EVs added to company car scheme;

- Charge Points for EVs have been installed at Breheny regional offices;

- Microsoft Teams has been utilised within the business to enable internal and external meetings to be held online.

Reporting limitations

Under our current reporting mechanisms energy data can only be collated annually, it is not possible at the moment to identify seasonal trends. This is currently being addressed.

ENGAGEMENT WITH EMPLOYEES

The Welfare of our Employees

One of Breheny's major strengths it that it always has maintained the feel of a family run business. Directors and Senior Managers engage with it's the workforce on a personal and professional level to bring out the best in not only employee but employer as well.

The stress and pressure of working in a challenging industry coupled with economic issues has driven understanding to ensure that mental health and wellbeing are at the forefront of the employment policy. We continue to offer Employee Assistance Programs (EAP) and Mental Health Programmes to our work force which has had a positive impact.

Communication

The company promotes an open door policy. Due to positive management, we encourage our staff to express ideas and opinions for the betterment of the work place and individual. Company updates and workshops are held on a regular basis to enforce company policy and to invite suggestion from all employees. It has been found that investing in people has ensured job satisfaction and has enhanced the work place.

Health and Safety

The Company's behavioural safety initiative is called "Think Safe, Work Safe, Home Safe". This system is all encompassing as it focuses both on safe and unsafe acts. This programme incorporates the principles of visible felt leadership and utilises workplace observations and discussion to generate the necessary changes in behaviour at the point of work.

Financial and Economic Factors

Communication with our employees is critical at all times, not just in times of economic hardship. Through all forms of communication, the company informs the work force of the negative and positive factors which impacts our industry and ultimately the company. In order to maintain morale and certainty, this is paramount to ensuring we have a successful workplace.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-	select suitable accounting policies and then apply them consistently;

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

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

S Aziz - Secretary

15 October 2025

Opinion

We have audited the financial statements of Breheny Civil Engineering Limited (the 'company') for the year ended 31 March 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page seven, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

Our work is performed to include an assessment of the susceptibility of the entity's financial statements to material misstatement, including the risk of fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

We plan our work to gain an understanding of the significant laws and regulations that are of significance to the entity and the sector in which they operate. We perform our work to ensure that the entity is complying with its legal and regulatory framework.

-

We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to the management and people charged with governance.

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

-

Substantive procedures performed in accordance with the ISAs (UK).

-

Challenging assumptions and judgments made by management in its significant accounting estimates.

journals.

-

Assessing the extent of compliance with the relevant laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

Kevin Shaw BSc FCA (Senior Statutory Auditor)

for and on behalf of Wright Vigar Limited

Statutory Auditors

Chartered Accountants & Business Advisers

15 Newland

Lincoln

Lincolnshire

LN1 1XG

15 October 2025

TURNOVER

131,547,510

119,901,355

Cost of sales

114,233,279

104,240,550

GROSS PROFIT

17,314,231

15,660,805

Administrative expenses

13,190,107

12,148,086

4,124,124

3,512,719

Other operating income

3

60,200

17,000

OPERATING PROFIT

5

4,184,324

3,529,719

Interest receivable and similar income

7

532,263

289,954

4,716,587

3,819,673

Interest payable and similar expenses

8

241

95

PROFIT BEFORE TAXATION

4,716,346

3,819,578

Tax on profit

9

1,008,113

248,586

PROFIT FOR THE FINANCIAL YEAR

3,708,233

3,570,992

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,708,233

3,570,992

Earnings per share expressed

in pence per share:

11

Basic

412.03

396.78

Diluted

412.03

396.78

FIXED ASSETS

Intangible assets

12

317,490

350,966

Tangible assets

13

4,449,429

4,500,172

Investments

14

616,482

616,482

5,383,401

5,467,620

CURRENT ASSETS

Stocks

15

339,663

272,496

Debtors

16

39,926,972

37,789,192

Cash at bank

17,406,274

16,662,349

57,672,909

54,724,037

CREDITORS

Amounts falling due within one year

17

40,024,431

36,345,525

NET CURRENT ASSETS

17,648,478

18,378,512

TOTAL ASSETS LESS CURRENT LIABILITIES

23,031,879

23,846,132

CREDITORS

Amounts falling due after more than one year

18

(76,981

)

(585,197

)

PROVISIONS FOR LIABILITIES

21

(1,049,526

)

(1,063,796

)

NET ASSETS

21,905,372

22,197,139

CAPITAL AND RESERVES

Called up share capital

22

900,000

900,000

Capital redemption reserve

23

100,000

100,000

Retained earnings

23

20,905,372

21,197,139

SHAREHOLDERS' FUNDS

21,905,372

22,197,139

The financial statements were approved by the Board of Directors and authorised for issue on 15 October 2025 and were signed on its behalf by:

J N E Breheny - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

900,000

21,626,147

100,000

22,626,147

Changes in equity

Dividends

-

(4,000,000

)

-

(4,000,000

)

Total comprehensive income

-

3,570,992

-

3,570,992

Balance at 31 March 2024

900,000

21,197,139

100,000

22,197,139

Changes in equity

Dividends

-

(4,000,000

)

-

(4,000,000

)

Total comprehensive income

-

3,708,233

-

3,708,233

Balance at 31 March 2025

900,000

20,905,372

100,000

21,905,372

1.	STATUTORY INFORMATION

Breheny Civil Engineering Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements

The financial statements contain information about Breheny Civil Engineering Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Breheny Group Limited, Flordon Road, Creeting St.Mary, Ipswich, Suffolk, IP6 8NH.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover comprises the value of contracting work executed during the year plus sundry sales and plant hire earnings. The value of contracting work is based on measured valuations, incorporating profit earned to the valuation date and adjusted for any anticipated losses. Other sales are invoiced upon performance of the services provided.

The amount by which recorded turnover on uncompleted contracts is in excess of payments on account is classified as amounts recoverable on contracts and separately disclosed in debtors.

The amount by which payments on account on uncompleted contracts is in excess of recorded turnover is classified as long term contract payments on account and separately disclosed in creditors.

Software development costs

Software development costs are valued at cost less accumulated amortisation. Amortisation commenced once the software was ready for use, and is being written off over the estimated useful life, which is estimated to be 10 years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

25% on reducing balance

Fixtures, fittings & equipment

-

Straight line over 4 - 10 years

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less impairment.

Stocks and work in progress

Stocks and Work in Progress are valued at the lower of cost and net realisable value.

Contract Work in Progress, in respect of short term contracts (less than one year), has been valued at the lower of cost including the appropriate production overheads and net realisable value plus a proportion of profit where the contract is material to the result in the year. Long term contracts (more than one year) have been valued on the same basis.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Transactions in foreign currencies are included in the accounts at the rate of exchange applicable at the date of the transaction.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Claims

No value is included for claims outstanding for completed work where the claim had not been agreed at the year end.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

3.	OTHER OPERATING INCOME

2025

2024

£

£

Sundry receipts

60,200

17,000

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

20,380,593

19,070,715

Social security costs

1,934,301

2,402,521

Other pension costs

1,313,067

802,879

23,627,961

22,276,115

The average number of employees during the year was as follows:

2025

2024

Management

9

8

Office staff

58

61

Direct labour

244

254

311

323

During the year remuneration to key management personnel totalled £4,338,501 (2024: £3,398,645).

2025

2024

£

£

Directors' remuneration

2,980,485

2,146,961

Directors' pension contributions to money purchase schemes

91,048

25,798

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

Money purchase schemes

4

3

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

1,595,334

859,001

Pension contributions to money purchase schemes

19,002

-

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

15,952,899

11,279,737

Depreciation - owned assets

917,554

954,517

Depreciation - assets on hire purchase contracts

347,762

514,035

Profit on disposal of fixed assets

(103,925

)

(7,461

)

Software development costs amortisation

35,276

38,996

Auditors' remuneration

50,000

58,000

6.	EXCEPTIONAL ITEMS

2025

2024

£

£

Intercompany loan write off

(62,000

)

-

In the year the company wrote off an intercompany loan.

7.

INTEREST RECEIVABLE AND SIMILAR INCOME

2025

2024

£

£

Interest receivable

481,910

272,705

Interest on corporation tax

50,353

17,249

532,263

289,954

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Interest payable

241

95

9.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

1,020,844

563,851

Under/(over) provision in

prior year

1,539

(128,805

)

Total current tax

1,022,383

435,046

Deferred tax

(14,270

)

(186,460

)

Tax on profit

1,008,113

248,586

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

4,716,346

3,819,578

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

1,179,087

954,895

Effects of:

Depreciation in excess of capital allowances

25,927

155,354

Expenses not deductible for tax purposes

138,922

116,000

Profit on fixed asset disposal

(25,981

)

(1,865

)

Under/(Over) provision in prior years

1,539

(128,805

)

Deferred tax

(14,270

)

(186,460

)

Research & Development

-

(162,098

)

Group relief

(312,611

)

(498,435

)

Amounts written of loans

15,500

-

Total tax charge

1,008,113

248,586

10.

DIVIDENDS

2025

2024

£

£

Ordinary Shares shares of £1 each

Interim

4,000,000

4,000,000