The directors present the strategic report for the year ended 30 June 2025.

The principal activity of the Company continued to be that of constructing residential houses within the private and affordable housing markets.

Campion Homes delivered another year of strong growth, with turnover rising by 11% to £50m. This performance reflects the continued expansion of the private housing division, which has shown consistent, profitable growth over recent years. The company is now selling across four established private developments: Oak Bank, Glenrothes; Strathearn Gait, Crieff; Strathmore Meadows, Meigle; Pitcairn Gardens, Balmullo. Forward sales remain strong and a fifth development, The Temple at Balcurvie, is due to commence later this year, further strengthening the pipeline.

This year’s profit includes one-off benefits arising from the capitalisation of costs previously written off in relation to speculative land acquisitions for private developments. These costs, originally expensed due to uncertainty around development potential, have now been written back following successful progression of these strategic sites. As a result, gross margin has improved not only due to the increase in private house sales, but also through the recognition of historic investment on private land where a patient, forward-looking approach has delivered value.

The company has continued its long-standing commitment to deliver inclusive, high-quality homes for the affordable housing sector, providing a wide range of innovative solutions that enhance the well-being and livelihoods of residents. This has been recognised through notable industry accolades, including the “Excellence in Accessibility & Inclusion” award at the Scottish Home Awards in 2025 for its Charleston development in Dundee, as well as a Highly Commended distinction at the Homes for Scotland Awards 2025 for Kinross Road, Leslie development. During the reporting year the Company handed over 120 homes to Housing Association and Local Authority clients. 202 Affordable homes were under construction at the year end.

During the year the company made a series of internal promotions and strategic appointments to support its long-term sustainable growth objectives. This included the appointment of a Senior Land Manager.

While the results this year are encouraging, the company remains cognisant of prevailing challenges within the housebuilding sector and is approaching future growth opportunities with prudent optimism. Financial stability and sustainable development remain central to its vision.

Campion Homes acknowledges the exceptional contributions of its employees throughout the year. The company recognises that its continued success is underpinned by strong relationships, a skilled and committed workforce, and an unwavering focus on product quality. To support future growth and maintain operational excellence, Campion remains committed to local recruitment and team development. Its investment in emerging talent is reflected in the strength of its apprenticeship programme, which currently supports 17 apprentices and has recently welcomed a further four new start apprentices into the business.

Continuous improvements are being driven throughout the company on all health and safety, quality and environmental areas. During the year the Company’s UKAS accreditation was recertified for ISO9001 (Quality Management), ISO14001 (Environmental Management) and ISO45001 (Health and Safety Management).

Principal risks and uncertainties

The Company’s financial and operational performance is subject to a number of risks and as a result the Board seeks to ensure that appropriate processes are put in place to manage, monitor and mitigate these risks. The principal risks and uncertainties facing the company are:

Land supply

The availability of suitable land for residential development remains a significant challenge across Scotland, particularly in the context of the national housing emergency declared in 2024. Lengthy lead times before new Local Development Plans are in place, rising acquisition costs, and regulatory complexity continue to constrain the release of deliverable sites, impacting both private and affordable housing pipelines. The company continues to engage with local authorities and stakeholders to secure land ahead of emerging development frameworks, ensuring alignment with long-term growth objectives.

Despite sector-wide constraints, Campion remains well-positioned to navigate the evolving landscape through disciplined investment, strong partnerships, and a proven track record in delivering high-quality housing across all tenures. As the time taken to achieve planning and the required statutory consents continues to be protracted, this is factored into all forecasts for future development and contract delivery.

Price and demand risk

The Directors regularly review market conditions, economic risks, product range, pricing, visitor levels and reservations and adapts plans as needed.

Price risk in the private housing sector is influenced by consumer confidence, mortgage affordability, incentive demands driven by local competitors and stubborn inflationary pressures. While demand across Campion’s developments remains robust, the Company recognises the potential for margin erosion should sales values soften or build costs escalate beyond forecast levels. Disciplined land acquisition, cost control, and product variety are key mitigants.

In the affordable housing sector, price risk is shaped by constrained public funding, rising construction costs, and the fixed-price nature of contracts. Medium-term planning has become increasingly complex as funding allocations tighten. The Company continues to work closely with its RSL and Local Authority clients to ensure its pipeline of developments are immediately ready to progress when grant funding becomes available.

Labour risk

Over the past twelve months, conditions in both the direct and indirect labour markets have improved following an extended period of significant challenges. Nonetheless, certain trades and specialised skills remain in limited supply. This dynamic continues to exert pressure on margins for fixed-price contract work and complicates the recruitment of highly skilled personnel. The Company addresses this risk by maintaining regular engagement with key suppliers and consistently monitoring prevailing market rates for sub-contract labour.

The Company maintains strong employee relations and low staff turnover by benchmarking pay, offering development opportunities such as training and apprenticeships, and utilising the Investors in People framework for ongoing improvements. This year, it received the Investors in People Gold Accreditation.

As Directors of the Company we have acted, and continue to act, in a way that we consider to be most likely to promote the continuing success of the Company for the benefits of its members. In doing so we have had regard, amongst other matters, to:

1. The likely consequences of any decision in the long term; The Directors continue to take a long-term view on the business, looking at market conditions and adapting future plans accordingly where required.

2. The interests of the Company’s employees; The Company is proud of its long standing, committed workforce. It invests heavily in regulatory Health and Safety training and wider training enabling all employees to develop in their roles. It offers competitive remuneration packages and has developed a wide-ranging benefits package with a variety of offerings available to all employees.

3. The need to foster the Company’s business relationships with suppliers, customers and others; The Company’s relationships with customers and suppliers are critical to maintaining high-quality standards that the Company prides itself on. The Company engages closely with its RSL clients to ensure their requirements are met on a partnership basis across all contracts.

4. The impact of the Company’s operations on the community and the environment; The Company is committed to engaging with all the communities within which it builds. It has a long history of investing in those communities and commits funds each year to support local good causes, including foodbanks, various charities and local sports teams. The Company is committed to reducing its carbon footprint utilising best working practices to enhance the environment for the future.

5. The desirability of the Company maintaining a reputation for high standards of business conduct; The Directors continuously review quality and safety in the workplace and ensure compliance with all main regulatory requirements.

6. The need to act fairly as between members of the company; The Board of Directors meet quarterly during which key strategic, operational and business risks are discussed. In addition, the Executive team meet bi-weekly to discuss and plan for key strategic and operational activities of the business.

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 June 2025.

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £419,656 in respect of the prior year.

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

In accordance with the company's articles, a resolution proposing that Thomson Cooper be reappointed as auditor of the company will be put at a General Meeting.

The Company’s energy use includes purchased electricity, gas and fuel for company transport and was collated by gathering information from sites and suppliers. Meter readings were predominantly used for gas and electricity and fuel data was gathered from mileage data and fuel spend. Where actual data was not readily available, estimates have been used. The conversion factors used to calculate the emissions are those published in UK government GHG Conversion Factors for Company Reporting 2025, published June 2025.

The reporting intensity ratio used is tonnes of CO2 per £m turnover. It is considered that this provides the best representation of activity across the Company and comparison through the industry.

The Company is committed to making continuing progress in improving the environmental management of its operation and helping to build a sustainable environment as evidenced by the recertification of the ISO14001 Environmental Management System accreditation. The Company is also committed to embedding a culture of measurement and reporting in this area in order to drive a reduction in emissions going forward. Site energy consumption is reported on a monthly basis.

It is the Company’s policy to help reduce the impact that our products have on the environment as well as reduce the direct impact of the Company’s own business activities on the environment. Recent examples of measures taken to improve energy efficiency include:

• Use of air source heat pumps in house build;

• Installation of site compound EV charging points and EV charging points for clients in developments;

• Extensive use of PV panels on developments and planned installation at head office;

• Highly insulated external envelope on all build;

• Use of recycled material products  and recycling of waste at HO and on site, where waste reports are reviewed monthly with site management and compared to target figures;

• Using a drainage manufacturer where pipes are made from at least 40% recycled material;

• Segregation of timber, plasterboard and brick across all sites to ensure minimum waste targets;

• Work closely with suppliers to use local depots where possible and condense deliveries to reduce emissions;

• Electrical division now MCS accredited, which enables Campion Homes to test and commission PV’s;

• Engineering sites for cut & fill balance;

• Purchase of timber from sustainable sources and buying local where possible to minimize transport costs;

• Upgrade/replacement of plant fleet on regular basis will maximise environmental benefits of latest models;

• Continued excellent uptake of EV company car scheme;

• Car sharing to sites and head office and virtual meetings in lieu of face to face meetings.

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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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 Campion Homes Limited (the 'company') for the year ended 30 June 2025 which comprise the profit and loss account, 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 30 June 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.

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

We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: existence and timing of recognition of income, misstatement of work in progress, posting of unusual journals along with complex transactions and manipulating the Company’s key performance indicators to meet targets. We discussed these risks with management, designed audit procedures to test the timing and existence of revenue, reviewed a sample of contracts focussing on cut off, tested a sample of journals to confirm they were appropriate, read minutes of Board meetings and reviewed areas of judgement for indicators of management bias to address these risks.

We reviewed areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by the auditing standards). Whilst the company is subject to many laws and regulations, we did not identify any others where the consequence of non-compliance alone could have a material effect on amounts or disclosures in the financial statements.

We reviewed the laws and regulations in areas that directly affect the financial statements including financial and taxation legislation and considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

With the exception of any known or possible non-compliance with relevant and significant laws and regulations, and as required by the auditing standards, our work in respect of these was limited to enquiry of the officers and management of the company.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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.

Campion Homes Limited is a private company limited by shares incorporated in Scotland. The registered office is Pitreavie Drive, Pitreavie Business Park, Dunfermline, Fife, KY11 8US.

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 certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Any consideration of the foreseeable future involves making a judgement, at a particular point in time, about future events which are inherently uncertain. At truethe time of approving the financial statements, the directors consider that the company has adequate resources to continue in operational existence for a period of not less than twelve months. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Private Developments

Costs associated with potential land purchases are written off as incurred and then written back to the profit and loss account when land is purchased or when there is reasonable certainty that land will be purchased. Turnover from sale of private houses is recognised for accounts purposes when consideration is received or receivable on legal completion. The company valuation process allocates land costs and construction costs to each individual plot based on the overall development margin which in turn drives the recognition of costs in the profit and loss account. Any changes in the forecast profit margin of a site is recognised across all homes sold in both the current and future periods.

Affordable Housing Contracts

Costs incurred in securing a contract are recognised as an expense in the period in which they are incurred. Turnover on affordable housing contracts is recognised according to the stage of completion of the contract when the outcome can be reasonably estimated.

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

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

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.

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.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

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 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.

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

The timing of revenue recognition on long-term contracts depends on the assessed stage of completion of contract activity at the balance sheet date. This assessment requires the expected total contract revenues and costs to be valued based on the current progress of the contract.

An analysis of the company's turnover is as follows:

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2024 - 4).

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:

Dividends are paid in respect of profits earned in the prior year.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Freehold property land and buildings with a carrying amount of £540,625 (2024 - £553,125) have been pledged as security against the bank loan.

The subsidiary company is a small dormant company. Under s405 (2) of the Companies Act 2006, there is no requirement to produce group accounts.

Details of the company's subsidiaries at 30 June 2025 are as follows:

Financial assets includes trade debtors, other debtors and cash at bank, however excludes work in progress.

Financial liabilities includes trade creditors, accruals, hire purchase creditors and other loans.

Other loans include director Peter Bell's loan notes of £173,827 (2024 - £173,827) are repayable on demand, with interest payable at a rate of 11.5%.

The bank loan is secured over Communications House, Pitreavie Drive, Dunfermline. The bank loan is repayable over 10 years and interest is charged at 2.75% over base rate.

During the year, the company bought back the preference shares which represented non-equity interests stated at par value.

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

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 financial reporting purposes:

The deferred tax liability set out above is expected to reverse within 36 months and relates to accelerated capital allowances that are expected to mature within the same period.

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.

During the year the company bought back 50 'A' ordinary shares and 3,000 'B' ordinary shares for £369,375.

As previously disclosed, in July 2023 an incident occurred at one of our sites which resulted in one employee sustaining injuries. This incident is subject to an ongoing investigation however it is too early to assess if there will be a financial impact on the company.

Standard securities have been granted to the vendor over certain land which has been acquired for development.

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:

The company rents out part of Communications House to a tenant. Rental and service charge income earned during the year amounted to £24,911 (2024 - £24,911).

The remuneration of key management personnel, who are also directors, is as follows.

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

During the year, the company provided goods and services to directors on commercial terms of £8,412 (2024 - £2,704).

The company paid rental of £87,845 (2024 - £88,461) for its head office property which is owned by director, Peter Bell. At the year end, £36,345 (2024 - £26,538) was included in creditors due less than one year.

Included in creditors due less than one year is £173,827 due to a director (2024 - £173,827 classified as creditors greater than one year).

For the two years ended 30 June 2025, director Peter Bell, controlled the company by virtue of a controlling interest of 99.9% of the issued 'A' ordinary share capital.