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Registration number: 14954787

HPB Group Limited
Annual Report and Consolidated Financial Statements
for the Year Ended 31 March 2025

HPB Group Limited

Contents

Company Information | 1
Strategic Report | 2
Directors' Report | 3 to 4
Statement of Directors' Responsibilities | 5
Independent Auditor's Report | 6 to 11
Consolidated Profit and Loss Account | 12
Consolidated Statement of Comprehensive Income | 13
Consolidated Balance Sheet | 14
Balance Sheet | 15
Consolidated Statement of Changes in Equity | 16
Statement of Changes in Equity | 17
Consolidated Statement of Cash Flows | 18
Notes to the Financial Statements | 19 to 40

HPB Group Limited

Company Information

Directors | Mr H P Boyle Mr J D Boyle

Registered office | Unit 1 High Premier Industrial Estate Belton Road Sandtoft Doncaster DN8 5SX

Bankers | Virgin Money Leeds 10 Austhorpe Road Crossgates Leeds South Yorkshire LS15 8DL

Handelsbanken
Doncaster Branch
1-2 Aire House
Richmond Business Park
Sidings Court
Doncaster
DN4 5NL

Auditors | Crozier Jones LLP Chartered Certified Accountants and Registered Auditors 9/13 Thorne Road Doncaster South Yorkshire DN1 2HJ

HPB Group Limited

Strategic Report for the Year Ended 31 March 2025

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

Principal activity

The principal activity of the group is that of trenchless tunnelling. HPB Group Limited's principal activity is that of a holding company.

Fair review of the business

HPB Group Limited was incorporated in June 2023 and acquired the entire shareholding of H B Tunnelling Limited in a share for share exchange with the shareholders receiving the same holdings in the company. As a result it became holding company for the group.
The consolidated financial statements have been prepared using merger accounting and therefore incorporate the full results for both parent and subsidiary for the year ended 31 March 2024.
The directors consider that the results for the year ended 31 March 2025 and the financial position at the end of it were satisfactory.
The group has successfully increased its turnover by 36% while improving its gross profit margins.
The group's balance sheet remains strong.
While current market conditions remain challenging the directors believe there are still opportunities for profitable growth.

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

Financial KPIs | Unit | 2025 | 2024
Turnover | £ | 37,684,638 | 27,717,344
Gross profit | £ | 8,908,159 | 5,213,712
Gross profit as percentage of turnover | % | 24 | 19
Operating profit | £ | 7,224,318 | 3,899,302
Net current assets | £ | 12,994,006 | 7,817,103
Net assets | £ | 15,368,721 | 9,540,840

Principal risks and uncertainties

The principal risks and uncertainties faced by the group are the general uncertain economic climate in which it currently trades.

Approved and authorised by the Board on 21 October 2025 and signed on its behalf by:

......................................... Mr H P Boyle Director

HPB Group Limited

Directors' Report for the Year Ended 31 March 2025

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

Directors of the group

The directors who held office during the year were as follows:

Mr H P Boyle

Mr J D Boyle (appointed 9 December 2024)

Financial instruments

Objectives and policies

The group’s principal financial instruments comprise bank balances, trade debtors and trade creditors. The purpose of these instruments is to finance the group’s business operations through positive working capital management. The directors do not consider that the company has any significant financial risks other than those normal commercial risks arising from trading operations.
Such risks are managed so as to permit the smooth operation of the business.

Price risk, credit risk, liquidity risk and cash flow risk

Most sales are to UK customers and most suppliers are UK based, and accordingly the group has not entered into any hedging arrangements in respect of risks relating to trade debtors or creditors.
The group has operated throughout the year within it's banking facilities, thereby substantially eliminating liquidity and cash flow risks.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.
Trade creditors’ liquidity risk is managed by ensuring sufficient funds are available to meet amounts
due.

Research and development

The group is committed to research and development activities.

Important non adjusting events after the financial period

In June 2025, a flooding occurred during the construction phase of one of the group’s projects, resulting in unplanned disruption and damage to equipment on site. The group is working with its insurers, contractors, and technical experts to determine the cause of the incident and assess any associated financial impact. At this stage, the financial effect of the incident cannot be reliably quantified, and no adjustments have been made to these financial statements. The directors do not consider there to be any impact on the group’s ability to continue as a going concern.

HPB Group Limited

Directors' Report for the Year Ended 31 March 2025

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved and authorised by the Board on 21 October 2025 and signed on its behalf by:

......................................... Mr H P Boyle Director

HPB Group Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

• | select suitable accounting policies and 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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

HPB Group Limited

Independent Auditor's Report to the Members of HPB Group Limited

Qualified opinion

We have audited the financial statements of HPB Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2025 and of the group's 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 qualified opinion on financial statements

The financial statements for the year ended 31 March 2023 were not audited as the group qualified for exemption in respect of that year. The group's accounts for the year then ended included estimates in relation to the group's construction contracts that could not be verified due to the nature of the group's accounting records. We have therefore been unable to obtain sufficient audit evidence in respect of the following balances at 31 March 2023, uninvoiced debtors relating to contract work of £5,676,366, accruals relating to contract works of £1,018,972 and stock of £75,000. We were unable to determine whether any adjustments to these amounts were necessary. Any adjustments to these opening balances would have a consequential effect on the reported sales, costs of sales and profit for the year ended 31 March 2024 as reported in the comparatives of this year's profit and loss account. The comparative figures in the strategic report could be similarly affected. Our audit opinion on the financial statements for the year ended 31 March 2024 was modified accordingly. Our audit opinion on the current year's financial statements is also modified because of the possible effect of this matter on the comparability of the current period figures and the comparative figures.
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 responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 qualified opinion.

Other matter

The financial statements of the group for the year ended 31 March 2023 were not audited as the group qualified for exemption in respect of that year. The comparative information in the Strategic report, Profit and loss account and Notes to the financial statements is therefore based on movements from the company's unaudited 31 March 2023 balance sheet.

HPB Group Limited

Independent Auditor's Report to the Members of HPB Group Limited

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 group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

As described in the basis for qualified opinion section of our report, we were unable to obtain sufficient audit evidence regarding uninvoiced debtors relating to contract work of £5,676,366, accruals relating to contract works of £1,018,972 and stock of £75,000 at 31 March 2023. We have concluded that where comparative figures included in the other information refers to profit figures that would be impacted were adjustments required to these figures, they may be materially misstated for the same reason.

Opinion on other matter prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

• | the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• | the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

HPB Group Limited

Independent Auditor's Report to the Members of HPB Group Limited

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, in the light of our 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 and the Directors' Report.

Arising solely from the limitation on the scope of our work relating to opening balances at 31 March 2023, referred to above:

• | we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and

• | we were unable to determine whether adequate accounting records have been kept.

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:

• | 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor Responsibilities for the audit of the financial statements

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

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• | Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• | Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s internal control.

HPB Group Limited

Independent Auditor's Report to the Members of HPB Group Limited

• | Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

• | Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern.

• | Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• | Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit work performed for the purposes of the group audit. We remain solely responsible for our audit opinion.

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.

HPB Group Limited

Independent Auditor's Report to the Members of HPB Group Limited

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 extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:-

• The engagement partner ensured that the audit team collectively had the appropriate competence, capability and skills to identify or recognise non-compliance with applicable laws and regulations;
• We identified the laws and regulations applicable to the group through discussions with directors and other management, and from our commercial knowledge and experience of the construction
industry;
• We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006,
taxation legislation, data protections legislation, employment law and environmental and health and safety legislation;
• We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
• The audit team remained alert to the possibility of non-compliance with laws and regulations throughout the audit.
We assessed the susceptibility of the group’s financial statements to material misstatement including obtaining an understanding of how fraud might occur, by:
• Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
• Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
• Considering what motivations and opportunities for fraud may exist within the group.
To address the risk of fraud through management bias and override of controls, we:
• Performed analytical procedures to identify any unusual or unexpected relationships;
• Reviewed journal entries to identify unusual transactions vouching to supporting documentation where appropriate;
• Reviewed the group’s bank nominals for any significant or unusual transactions vouching to supporting documentation where appropriate;
• Assessed whether the judgements and assumptions made in determining any accounting estimates used in preparing the accounts were indicative of bias; and
• We maintained an approach of professional scepticism throughout the audit; recognising the possibility of a material misstatement due to facts or behaviour indicating irregularities (including
fraud) or error, notwithstanding our past experience of the honesty and integrity of the group's management.

HPB Group Limited

Independent Auditor's Report to the Members of HPB Group Limited

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• Agreeing financial statement disclosures to underlying supporting documentation;
• Enquiring of management as to actual and potential litigation and claims;
• Reviewing correspondence with HMRC;
• Reviewing legal expenses both during and after the year for any items indicative of ongoing litigation and potential claims; and
• We confirmed that the group’s industry certifications remained valid.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with
regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become
aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

......................................
Michael Shaun Crozier FCCA (Senior Statutory Auditor)
For and on behalf of Crozier Jones LLP, Statutory Auditor
Chartered Certified Accountants and Registered Auditors
9/13 Thorne Road
Doncaster
South Yorkshire
DN1 2HJ

21 October 2025

HPB Group Limited

Consolidated Profit and Loss Account for the Year Ended 31 March 2025

| Note | 31 March 2025 £ | 31 March 2024 £
Turnover | 4 | 37,684,638 | 27,717,344
Cost of sales |  | (28,776,479) | (22,503,632)
Gross profit |  | 8,908,159 | 5,213,712
Administrative expenses |  | (1,684,861) | (1,340,788)
Other operating income | 5 | 1,020 | 26,378
Operating profit | 7 | 7,224,318 | 3,899,302
Income from other Fixed assets investments |  | 23,562 | 21,577
Other interest receivable and similar income | 8 | 77,236 | 32,250
Amounts written off investments |  | 16,445 | 62,545
Interest payable and similar expenses | 9 | (37,074) | (34,744)
|  | 80,169 | 81,628
Profit before tax |  | 7,304,487 | 3,980,930
Tax on profit | 13 | (1,276,606) | (467,858)
Profit for the financial year |  | 6,027,881 | 3,513,072
Profit/(loss) attributable to: |  |  |
Owners of the company |  | 6,027,881 | 3,513,072

The group has no recognised gains or losses for the year other than the results above.

HPB Group Limited

Consolidated Statement of Comprehensive Income for the Year Ended 31 March 2025

| 31 March 2025 £ | 31 March 2024 £
Profit for the year | 6,027,881 | 3,513,072
Total comprehensive income for the year | 6,027,881 | 3,513,072
Total comprehensive income attributable to: |  |
Owners of the company | 6,027,881 | 3,513,072

HPB Group Limited

(Registration number: 14954787)
Consolidated Balance Sheet as at 31 March 2025

| Note | 31 March 2025 £ | 31 March 2024 £
Fixed assets |  |  |
Tangible assets | 14 | 2,953,368 | 2,551,272
Current assets |  |  |
Stocks | 17 | 203,984 | 165,016
Debtors | 18 | 9,009,129 | 5,520,561
Other financial assets | 16 | 1,114,481 | 1,080,847
Cash at bank and in hand |  | 9,237,404 | 5,272,632
|  | 19,564,998 | 12,039,056
Creditors: Amounts falling due within one year | 20 | (6,570,992) | (4,221,953)
Net current assets |  | 12,994,006 | 7,817,103
Total assets less current liabilities |  | 15,947,374 | 10,368,375
Creditors: Amounts falling due after more than one year | 20 | (28,474) | (297,424)
Provisions for liabilities | 21 | (550,179) | (530,111)
Net assets |  | 15,368,721 | 9,540,840
Capital and reserves |  |  |
Called up share capital | 23 | 100 | 100
Other reserves |  | 1 | 1
Retained earnings |  | 15,368,620 | 9,540,739
Equity attributable to owners of the company |  | 15,368,721 | 9,540,840
Shareholders' funds |  | 15,368,721 | 9,540,840

Approved and authorised by the Board on 21 October 2025 and signed on its behalf by:

......................................... Mr H P Boyle Director

HPB Group Limited

(Registration number: 14954787)
Balance Sheet as at 31 March 2025

| Note | 31 March 2025 £ | 31 March 2024 £
Fixed assets |  |  |
Investments | 15 | 99 | 99
Current assets |  |  |
Debtors | 18 | 3,800,001 | 3,000,001
Cash at bank and in hand |  | 3,000,409 | -
|  | 6,800,410 | 3,000,001
Creditors: Amounts falling due within one year | 20 | (78) | -
Net current assets |  | 6,800,332 | 3,000,001
Net assets |  | 6,800,431 | 3,000,100
Capital and reserves |  |  |
Called up share capital | 23 | 100 | 100
Retained earnings |  | 6,800,331 | 3,000,000
Shareholders' funds |  | 6,800,431 | 3,000,100

The company made a profit after tax for the financial year of £4,000,331 (2024 - profit of £3,000,000).

Approved and authorised by the Board on 21 October 2025 and signed on its behalf by:

......................................... Mr H P Boyle Director

HPB Group Limited

Consolidated Statement of Changes in Equity for the Year Ended 31 March 2025
Equity attributable to the parent company

| Share capital £ | Merger reserve £ | Retained earnings £ | Total £ | Total equity £
At 1 April 2024 | 100 | 1 | 9,540,739 | 9,540,840 | 9,540,840
Profit for the year | - | - | 6,027,881 | 6,027,881 | 6,027,881
Dividends | - | - | (200,000) | (200,000) | (200,000)
At 31 March 2025 | 100 | 1 | 15,368,620 | 15,368,721 | 15,368,721

| Share capital £ | Merger reserve £ | Retained earnings £ | Total £ | Total equity £
At 1 April 2023 | 100 | - | 6,027,667 | 6,027,767 | 6,027,767
Profit for the year | - | - | 3,513,072 | 3,513,072 | 3,513,072
Merger adjustment, increase in equity | - | 1 | - | 1 | 1
At 31 March 2024 | 100 | 1 | 9,540,739 | 9,540,840 | 9,540,840

HPB Group Limited

Statement of Changes in Equity for the Year Ended 31 March 2025

| Share capital £ | Retained earnings £ | Total £
At 1 April 2024 | 100 | 3,000,000 | 3,000,100
Profit for the year | - | 4,000,331 | 4,000,331
Dividends | - | (200,000) | (200,000)
At 31 March 2025 | 100 | 6,800,331 | 6,800,431

| Share capital £ | Retained earnings £ | Total £
Profit for the year | - | 3,000,000 | 3,000,000
New share capital subscribed | 100 | - | 100
At 31 March 2024 | 100 | 3,000,000 | 3,000,100

HPB Group Limited

Consolidated Statement of Cash Flows for the Year Ended 31 March 2025

| Note | 31 March 2025 £ | 31 March 2024 £
Cash flows from operating activities
Profit for the year |  | 6,027,881 | 3,513,072
Adjustments to cash flows from non-cash items |  |  |
Depreciation and amortisation | 7 | 1,100,846 | 718,103
Financial instrument adjustments through profit and loss |  | (16,445) | (62,545)
(Profit)/loss on disposal of tangible assets | 6 | (29,962) | 375
Finance income | 8 | (100,798) | (53,827)
Finance costs | 9 | 35,615 | 31,091
Income tax expense | 13 | 1,276,606 | 467,858
|  | 8,293,743 | 4,614,127
Working capital adjustments |  |  |
Increase in stocks | 17 | (38,968) | (90,016)
(Increase)/decrease in trade debtors | 18 | (3,488,568) | 597,395
Increase/(decrease) in trade creditors | 20 | 1,546,629 | (2,527,207)
Cash generated from operations |  | 6,312,836 | 2,594,299
Income taxes paid | 13 | (431,921) | (15,247)
Net cash flow from operating activities |  | 5,880,915 | 2,579,052
Cash flows from investing activities |  |  |
Interest received |  | 77,236 | 32,250
Acquisitions of tangible assets |  | (1,504,595) | (1,449,305)
Proceeds from sale of tangible assets |  | 31,615 | 26,802
Dividend income from financial assets |  | 23,562 | 21,577
Acquisition of financial investments other than trading investments |  | (104,838) | (1,102,155)
Proceeds from disposal of financial investments other than trading investments |  | 87,649 | 1,879,678
Net cash flows from investing activities |  | (1,389,371) | (591,153)
Cash flows from financing activities |  |  |
Interest paid | 9 | (35,615) | (31,091)
Repayment of bank borrowing |  | (129,840) | (123,385)
Payments to finance lease creditors |  | (161,317) | (155,300)
Dividends paid |  | (200,000) | -
Net cash flows from financing activities |  | (526,772) | (309,776)
Net increase in cash and cash equivalents |  | 3,964,772 | 1,678,123
Cash and cash equivalents at 1 April |  | 5,272,632 | 3,594,509
Cash and cash equivalents at 31 March |  | 9,237,404 | 5,272,632

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

1 | General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 1 High Premier Industrial Estate
Belton Road
Sandtoft
Doncaster
DN8 5SX

These financial statements were authorised for issue by the Board on 21 October 2025.

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements have been prepared in pounds sterling which is the functional currency of the company.

Summary of disclosure exemptions

The company has taken advantage of the disclosure exemptions available under FRS 102 for qualifying entities. As such no separate cash flow statement has been presented for the company. The cash flows of the company are included in the consolidated cash flow statement.

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

Basis of consolidation

HPB Group Limited was incorporated in June 2023 and acquired the entire shareholding of H B Tunnelling Limited in a share for share exchange with the shareholders receiving the same holdings in the company. As a result it became holding company for the group.
The consolidated financial statements have been prepared using merger accounting and therefore the comparatives incorporate the full results for both parent and subsidiary for the year ended 31 March 2024.
Where the financial statements include comparative information presented for the company, HPB Group Limited, this relates to the period 22 June 2023 to March 2024.
No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial period of £4,000,311 (2024 £3,000,000).

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.

Contract revenue recognition

When the outcome of a construction contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to certified measured works by the customer where available, otherwise estimates are made by the company's commercial team.
Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable.
When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Plant and machinery | 25% straight line basis
Fixtures and fittings | 20% straight line basis
Motor vehicles | 25% straight line basis
Computer equipment | 33% straight line basis

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Merger accounting

Buisness combinations representing group reconstructions are accounted for using the merger accounting method as permitted by FRS 102, Section 19.27, provided the following conditions are met:
>The use of merger accounting is not prohibited by company law or other relevant legislation.
>The ultimate equity holders remain the same, and the rights of each equity holder, relative to the others, are unchanged.
>No non-controlling interest in the net assets of the group is altered by the transfer.
Under the merger method of accounting, the assets and liabilities of the combining entities are not required to be restated to fair value, though adjustments are made to ensure uniformity of accounting policies where necessary.
Otherwise the purchase method of accounting is used.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3 | Critical accounting judgements and key sources of estimation uncertainty

In the application of the group's accounting policies, which are described in note 2, the directors are required to make judgements (other than those involving estimations) that have a significant impact on the amounts recognised and to make estimates and assumptions about the carrying amounts of assets and liabilities that are not 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 if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

Judgements

The directors do not consider that there have been any critical judgements made in the process of applying the group's accounting policies.

Key sources of estimation uncertainty

The group’s revenue recognition and contract revenue recognition policies are set out in note 2 above. These policies are central to the way in which the group values the work it has carried out at each reporting date. These policies require forecasts to be made on the recovery and agreement of the progress on contract programmes and variations in work scopes. The group has appropriate control procedures in place to ensure estimates are calculated on a consistent basis. Where appropriate these assessments are validated by surveyors on behalf of customers who certify the value of work performed.
The carrying amount of uninvoiced debtors relating to contact work at the year end was £7,437,361 (2024 £4,412,755).
The carrying value of accruals for works performed in relation to contract work at the year end was £685,612 (2024 £480,211)
The carrying value of deferred income in relation to contract work at the year end was £46,850 (2024 £Nil).

4 | Turnover

The analysis of the group's turnover for the year from continuing operations is as follows:

| 31 March 2025 £ | 31 March 2024 £
Rendering of services | 37,684,638 | 27,717,344

5 | Other operating income

The analysis of the group's other operating income for the year is as follows:

| 31 March 2025 £ | 31 March 2024 £
Miscellaneous other operating income | 1,020 | 26,378

6 | Other gains and losses

The analysis of the group's other gains and losses for the year is as follows:

| 31 March 2025 £ | 31 March 2024 £
Gain/(loss) on disposal of tangible assets | 29,962 | (375)

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

7 | Operating profit

Arrived at after charging/(crediting)

| 31 March 2025 £ | 31 March 2024 £
Depreciation expense | 1,100,846 | 718,103
Operating lease expense - plant and machinery | 9,247,570 | 6,738,540
(Profit)/loss on disposal of property, plant and equipment | (29,962) | 375

8 | Other interest receivable and similar income

| 31 March 2025 £ | 31 March 2024 £
Interest income on bank deposits | 76,119 | 30,287
Other finance income | 1,117 | 1,963
| 77,236 | 32,250

9 | Interest payable and similar expenses

| 31 March 2025 £ | 31 March 2024 £
Interest on obligations under finance leases and hire purchase contracts | 10,279 | 16,296
Interest expense on other finance liabilities | 25,336 | 14,795
Foreign exchange gains | 1,459 | 3,653
| 37,074 | 34,744

10 | Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

| 31 March 2025 £ | 31 March 2024 £
Wages and salaries | 1,237,586 | 912,470
Social security costs | 133,647 | 90,121
Pension costs, defined contribution scheme | 117,455 | 41,493
| 1,488,688 | 1,044,084

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

| 31 March 2025 No. | 31 March 2024 No.
Administration and support | 5 | 6
Other departments | 18 | 14
| 23 | 20

11 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 31 March 2025 £ | 31 March 2024 £
Remuneration | 33,787 | 12,572
Contributions paid to money purchase schemes | 62,000 | -
| 95,787 | 12,572

During the year the number of directors who were receiving benefits and share incentives was as follows:

| 31 March 2025 No. | 31 March 2024 No.
Accruing benefits under money purchase pension scheme | 2 | -

12 | Auditors' remuneration

| 31 March 2025 £ | 31 March 2024 £
Audit of these financial statements | 43,170 | 18,000

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

13 | Taxation

Tax charged/(credited) in the consolidated profit and loss account

| 31 March 2025 £ | 31 March 2024 £
Current taxation |  |
UK corporation tax | 1,807,500 | 882,656
UK corporation tax adjustment to prior periods | (550,962) | (624,568)
| 1,256,538 | 258,088
Deferred taxation |  |
Arising from origination and reversal of timing differences | 20,068 | 209,770
Tax expense in the income statement | 1,276,606 | 467,858

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2024 - lower than the standard rate of corporation tax in the UK) of 25% (2024 - 25%).
The differences are reconciled below:

| 31 March 2025 £ | Unaudited 2024 £
Profit before tax | 7,304,487 | 3,980,930
Corporation tax at standard rate | 1,826,122 | 995,233
Decrease in UK and foreign current tax from adjustment for prior periods | (555,984) | (624,568)
Decrease from effect of different UK tax rates on some earnings | (25) | -
Tax increase from other short-term timing differences | 1,629 | -
Effect of expense not deductible in determining taxable profit (tax loss) | 10,755 | 25,479
Deferred tax expense from unrecognised temporary difference from a prior period | - | 77,109
Tax decrease from effect of dividends from UK companies | (5,891) | (5,395)
Total tax charge | 1,276,606 | 467,858

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

Deferred tax

Group

Deferred tax has been recognised at 25% (2024 25%) in line with the corporation tax rates expected to be in force when the associated timing differences reverse.

Deferred tax assets and liabilities

2025 | Liability £
Deferred tax relating to accelerated capital allowances | 530,425
Deferred tax on revalued investments | 19,754
| 550,179

2024 | Liability £
Deferred tax relating to accelerated capital allowances | 512,641
Deferred tax on revalued investments | 17,470
| 530,111

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

14 | Tangible assets

Group

| Fixtures and fittings £ | Plant and machinery £ | Office equipment £ | Motor vehicles £ | Total £
Cost or valuation
At 1 April 2024 | 10,414 | 4,074,357 | 55,298 | 369,016 | 4,509,085
Additions | - | 1,246,248 | 12,305 | 246,042 | 1,504,595
Disposals | - | (700,165) | - | (20,291) | (720,456)
At 31 March 2025 | 10,414 | 4,620,440 | 67,603 | 594,767 | 5,293,224
Depreciation
At 1 April 2024 | 10,414 | 1,750,435 | 36,646 | 160,318 | 1,957,813
Charge for the year | - | 983,700 | 10,150 | 106,996 | 1,100,846
Eliminated on disposal | - | (698,512) | - | (20,291) | (718,803)
At 31 March 2025 | 10,414 | 2,035,623 | 46,796 | 247,023 | 2,339,856
Carrying amount
At 31 March 2025 | - | 2,584,817 | 20,807 | 347,744 | 2,953,368
At 31 March 2024 | - | 2,323,922 | 18,652 | 208,698 | 2,551,272

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

15 | Investments

Group

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking | Registered office | Holding | Proportion of voting rights and shares held
|  |  | 2025 | 2024
Subsidiary undertakings
H B Tunnelling Limited* | Unit 1 High Premier Industrial Estate, Belton Road, Sandtoft, Doncaster. DN8 5SX | Ordinary shares | 100% | 100%
| England and Wales |  |  |

* indicates direct investment of the company

Subsidiary undertakings

H B Tunnelling Limited The principal activity of H B Tunnelling Limited is that of trenchless tunnelling All subsidiaries are included in the consolidated financial statements.

Company

| 31 March 2025 £ | 31 March 2024 £
Investments in subsidiaries | 99 | 99

Subsidiaries | £
Cost or valuation
At 1 April 2024 | 99
At 31 March 2025 | 99
Carrying amount
At 31 March 2025 | 99
At 31 March 2024 | 99

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

16 | Other financial assets

Group

| Financial assets at fair value through profit and loss £ | Total £
Current financial assets
Cost or valuation
At 1 April 2024 | 1,080,847 | 1,080,847
Fair value adjustments | 16,445 | 16,445
Additions | 104,838 | 104,838
Disposals | (87,649) | (87,649)
At 31 March 2025 | 1,114,481 | 1,114,481
Carrying amount
At 31 March 2025 | 1,114,481 | 1,114,481
At 31 March 2024 | 1,080,847 | 1,080,847

Current financial assets represent listed shares and investments in managed equity funds. These are included in the accounts at market value.

17 | Stocks

| Group | Company
| 31 March 2025 £ | 31 March 2024 £ | 31 March 2025 £ | 31 March 2024 £
Other inventories | 203,984 | 165,016 | - | -

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

18 | Debtors

|  | Group | Company
Current | Note | 31 March 2025 £ | 31 March 2024 £ | 31 March 2025 £ | 31 March 2024 £
Amounts owed by related parties | 29 | - | 500,000 | 3,800,000 | 3,000,000
Other debtors |  | 459,984 | 183,459 | 1 | 1
Prepayments |  | 1,111,784 | 424,347 | - | -
Gross amount due from customers for contract work |  | 7,437,361 | 4,412,755 | - | -
|  | 9,009,129 | 5,520,561 | 3,800,001 | 3,000,001

19 | Cash and cash equivalents

| Group | Company
| 31 March 2025 £ | 31 March 2024 £ | 31 March 2025 £ | 31 March 2024 £
Cash on hand | 350 | 342 | - | -
Cash at bank | 712,238 | 757,195 | - | -
Short-term deposits | 8,524,816 | 4,515,095 | 3,000,409 | -
| 9,237,404 | 5,272,632 | 3,000,409 | -

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

20 | Creditors

|  | Group | Company
| Note | 31 March 2025 £ | 31 March 2024 £ | 31 March 2025 £ | 31 March 2024 £
Due within one year |  |  |  |  |
Loans and borrowings | 24 | 268,950 | 291,157 | - | -
Trade creditors |  | 3,632,453 | 2,423,295 | - | -
Social security and other taxes |  | 55,848 | 39,300 | - | -
Outstanding defined contribution pension costs |  | 11,117 | 4,599 | - | -
Other payables |  | 23,068 | 9,450 | - | -
Accruals |  | 872,283 | 571,496 | - | -
Corporation tax | 13 | 1,707,273 | 882,656 | 78 | -
|  | 6,570,992 | 4,221,953 | 78 | -
Due after one year |  |  |  |  |
Loans and borrowings | 24 | 28,474 | 297,424 | - | -

21 | Provisions for liabilities

Group

| Deferred tax £ | Total £
At 1 April 2024 | 530,111 | 530,111
Increase (decrease) in existing provisions | 20,068 | 20,068
At 31 March 2025 | 550,179 | 550,179

22 | Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £117,455 (2024 - £41,493).
Contributions totalling £11,117 (2024 - £4,599) were payable to the scheme at the end of the year and are included in creditors.

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

23 | Share capital

Allotted, called up and fully paid shares

| 31 March 2025 | 31 March 2024
| No. | £ | No. | £
Ordinary of £1 each | 100 | 100 | 100 | 100

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions: Each share is entitled to one vote in any circumstances and each share is also entitled pari passu to dividend payments or any other distribution, including a distribution arising from a winding up of the company. One ordinary £1 share was issued as a subscriber share on incorporation on 22 June 2023. The remaining 99 ordinary £1 shares in the new holding company were issued as a result of a share for share exchange with the shareholder of H B Tunnelling Limited on 26 June 2023.

24 | Loans and borrowings

Non-current loans and borrowings

| Group | Company
| 31 March 2025 £ | 31 March 2024 £ | 31 March 2025 £ | 31 March 2024 £
Bank borrowings | - | 101,615 | - | -
Hire purchase contracts | 28,474 | 195,809 | - | -
| 28,474 | 297,424 | - | -

Current loans and borrowings

| Group | Company
| 31 March 2025 £ | 31 March 2024 £ | 31 March 2025 £ | 31 March 2024 £
Bank borrowings | 101,615 | 129,840 | - | -
Hire purchase contracts | 167,335 | 161,317 | - | -
| 268,950 | 291,157 | - | -

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

Group

Bank borrowings

The group has a fixed rate CBILs loan is denominated in pounds sterling with a nominal interest rate of 5% and the final instalment is due on 21 December 2025. The carrying amount at year end is £101,615 (2024 - £231,455). The group has not pledged any assets as security in respect of the CBILs loan. The loan scheme was backed by Government Guarantees as part of their Covid response package.

Hire purchase contracts

Hire purchase creditors are secured against the assets to which they relate.

25 | Obligations under leases and hire purchase contracts

Group

Finance leases

The total of future minimum lease payments is as follows:

| 31 March 2025 £ | 31 March 2024 £
Not later than one year | 171,597 | 171,597
Later than one year and not later than five years | 28,599 | 200,196
| 200,196 | 371,793

Operating leases

The total of future minimum lease payments is as follows:

| 31 March 2025 £ | 31 March 2024 £
Not later than one year | 21,841 | 38,021
Later than one year and not later than five years | - | 9,338
| 21,841 | 47,359

The amount of non-cancellable operating lease payments recognised as an expense during the year was £50,936 (2024 - £52,339).

26 | Dividends

Interim dividends paid

|  | 31 March 2025 £ |  | 31 March 2024 £
Interim dividends paid on ordinary shares |  | 200,000 |  | -

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

27 | Commitments

Group

Capital commitments

The total amount contracted for but not provided in the financial statements was £200,954 (2024 - £21,781).

28 | Analysis of changes in net debt

Group

| At 1 April 2024 £ | Cash flows £ | At 31 March 2025 £
Cash and cash equivalents |  |  |
Cash | 5,272,632 | 3,964,772 | 9,237,404
Borrowings |  |  |
Long term borrowings | (297,424) | 268,950 | (28,474)
Short term borrowings | (291,157) | 22,207 | (268,950)
| (588,581) | 291,157 | (297,424)
| 4,684,051 | 4,255,929 | 8,939,980

29 | Related party transactions

Group

Key management compensation

| 31 March 2025 £ | 31 March 2024 £
Salaries and other short term employee benefits | 234,557 | 170,905
Post-employment benefits | 93,500 | 26,250
| 328,057 | 197,155

Summary of transactions with key management

The financial statements include costs of £415,078 (2024 £343,695) for consultancy services provided by companies connected to key management.
The amount owing to these parties at year end was £43,776 (2024 £28,268).

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

Dividends paid to directors

|  | 31 March 2025 £ |  | 31 March 2024 £
Mr H P Boyle |  |  |  |
Dividends paid to director |  | 200,000 |  | -

Other transactions with directors

Included in administrative expenses is £12,678 (2024 - £7,282) in respect of rent of premises from a director.

Income and receivables from related parties

2025 | Other related parties £
Receipt of services | 20,000
Sale of property or other assets | 28,400
| 48,400

2024 | Other related parties £
Receipt of services | 20,000
Sale of property or other assets | -
| 20,000

Expenditure with and payables to related parties

2025 | Other related parties £
Rendering of services | 4,301,986
Leases | 64,260
| 4,366,246
Amounts payable to related party | -

2024 | Other related parties £
Rendering of services | 2,179,298
Purchase of property or other assets | 24,500
Leases | 44,500
| 2,248,298
Amounts payable to related party | 204,596

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

Loans to related parties

2025 | Other related parties £ | Total £
At start of period | 500,000 | 500,000
Advanced | 1,000,000 | 1,000,000
Repaid | (1,500,000) | (1,500,000)
At end of period | - | -

2024 | Other related parties £ | Total £
At start of period | - | -
Advanced | 500,000 | 500,000
At end of period | 500,000 | 500,000

Terms of loans to related parties

No interest is charge on the loan which is unsecured and repayable on demand.

Company

Summary of transactions with subsidiaries

During the year the company received dividend income of £4,000,000 (2024 - £3,000,000) from its subsidiary.

Loans to related parties

2025 | Subsidiary £ | Total £
At start of period | 3,000,000 | 3,000,000
Advanced | 4,000,000 | 4,000,000
Repaid | (3,200,000) | (3,200,000)
At end of period | 3,800,000 | 3,800,000

2024 | Subsidiary £ | Total £
At start of period | - | -
Advanced | 3,000,000 | 3,000,000
At end of period | 3,000,000 | 3,000,000

Terms of loans to related parties

No interest is charged on the loan which is unsecured and repayable on demand.

HPB Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

30 | Non adjusting events after the financial period

In June 2025, a flooding occurred during the construction phase of one of the group’s projects, resulting in unplanned disruption and damage to equipment on site. The group is working with its insurers, contractors, and technical experts to determine the cause of the incident and assess any associated financial impact. At this stage, the financial effect of the incident cannot be reliably quantified, and no adjustments have been made to these financial statements. The directors do not consider there to be any impact on the group’s ability to continue as a going concern.