Land & Water Services Ltd Company accounts

COMPANY REGISTRATION NUMBER: 02776439

LAND & WATER SERVICES LTD

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 December 2024

LAND & WATER SERVICES LTD

FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2024

Contents	Pages

Officers and professional advisers	1

Strategic report	2

Directors' report	3 to 5

Independent auditor's report to the members	6 to 9

Statement of comprehensive income	10

Statement of financial position	11

Statement of changes in equity	12

Statement of cash flows	13

Notes to the financial statements	14 to 23

LAND & WATER SERVICES LTD

OFFICERS AND PROFESSIONAL ADVISERS

The board of directors	Mr R E Melhuish
	Mr J A Maclean
	Mr A B Gascoyne
	Mr K J Kirkland
	Mr A Harpur

Company secretary	Ms K Bishop

Registered office	Numeric House
	98 Station Road
	Sidcup
	Kent
	United Kingdom
	DA15 7BY

Auditor	Affinia (Orpington)
	Chartered Accountants & statutory auditor
	Lynwood House
	Crofton Road
	Orpington
	Kent
	BR6 8QE

Bankers	National Westminster
	Chatham Customer Service Centre
	Western Avenue
	Waterside
	Chatham Maritime
	Kent
	ME4 4RT

Solicitors	DMH Stallard
	Griffin House
	135 High Street
	Crawley
	West Sussex
	RH10 1DQ

LAND & WATER SERVICES LTD

STRATEGIC REPORT

YEAR ENDED 31 DECEMBER 2024

Strategic management

Land and Water Services Limited continues with its Strategy of making LAWS more profitable by increasing margins. Turnover is up, however Gross Margin is down in 2024 compared to the previous year. LAWS has worked hard to de-risk project delivery by concentrating on our core work with the EA and CRT and reducing the number of higher risk civils jobs.

LAWS has carried out detailed process reviews through 2024 and the findings of those reviews have driven future efficiencies for the long-term benefit of the company. Technology based solutions are being developed to increase productivity, reduce errors, and to allow staff to manage & lead, rather than doing mundane process driven tasks.

LAWS has reviewed it's work profile and has been focusing on securing various Frameworks with the EA and the water companies ready to start in 2025. The company has also made a decision to limit the number of large projects it delivers each year, and has reduced the risk exposure on any future projects.

Business environment

The Board is cautiously optimistic about the operational climate for the company.

Land & Water Services Limited has a dedicated marketing and business development function and formal procedures are in place for the evaluation of clients and enquiries, tender evaluation and bid review including prescribed authority levels for the settlement of tenders. Over 75% of Land & Water Services Limited sales are generated from customers with whom there is a “repeat business” relationship. Land & Water Services Limited is renowned for alternative thinking, problem solving and driving down conventional competitive tender costs using waste reduction and reuse strategies. Land & Water Services Limited undertakes up to 25 projects at any one time, with as many as 40 projects live, closed or mobilised in any monthly cycle.

Business performance

The Board regards the following as the key performance indicators for the Company:

1. The revenue volumes as compared to the previous operating period

Revenue volumes have increased in comparison to 2023.

2. The rate of gross profit achieved on the revenues

The company achieved a Gross Profit Return of 14.90% compared to 16.99% in the previous year.

3. The level of operating surplus

The company's operating surplus has decreased from £409,398 in 2023 to £318,651.

This report was approved by the board of directors on 21 October 2025 and signed on behalf of the board by:

Mr R E Melhuish Director

LAND & WATER SERVICES LTD

DIRECTORS' REPORT

YEAR ENDED 31 DECEMBER 2024

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

Directors

The directors who served the company during the year were as follows:

Mr R E Melhuish
Mr J A Maclean
Mr A B Gascoyne
Mr K J Kirkland
Mr A Harpur

Dividends

Particulars of recommended dividends are detailed in note 14 to the financial statements.

Future developments

Introduction

Land & Water Services (LAWS) strategic five-year plan has been split into two stages, stage one which spans BP23 and BP24 is a period of business consolidation with the aim through this period to build a solid foundation for the future.

This model of approx. 60% Frameworks and 40% large Civils projects will continue from 2025 onwards.

Our business model is to continue delivering

1. Long term frameworks (Environment Agency (vegetation & civils), CRT NDC, CRT CEC, Thames & other water authority river restoration schemes)

2. Targeted competitively tendered scheme - ECI to delivery

3. Open market competitively tendered schemes

New Markets / Opportunities

1. Earth Change (salt marshes / water neutrality)

2. New reginal areas within EA

3. Large regenerative projects

People & Planet

- With assistance from Group HR, LAWS recruitment, training and retention strategy will be different going forward and we need to develop a flexible approach that meets the needs of individual projects. We - The way we recruit into specific larger long-term projects will be different and we will have to use alternative recruitment agencies or focus recruitment in specific areas.

- Other Group resources such as H&S, Procurement, IT, and Finance will provide support to frameworks and projects when needed, but some project specific resources may need to be recruited or outsourced.

- LAWS project profile mainly targets Regenerative Jobs, and we have a Carbon Reduction Plan in place to ensure we are inline with meeting the government target of Net Zero by 2050. To help us meet this deadline we are actively collaborating with our approved supply chain and clients to do the same.

Financial instruments

The company has sufficient levels of working capital, which is monitored on a daily basis by the board. The company's exposure to liquidity risk and cash flow risk is therefore considered to be low.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - 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. Auditor

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

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

This report was approved by the board of directors on 21 October 2025 and signed on behalf of the board by:

Mr R E Melhuish Director

LAND & WATER SERVICES LTD

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LAND & WATER SERVICES LTD

YEAR ENDED 31 DECEMBER 2024

Opinion

We have audited the financial statements of Land & Water Services Ltd (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 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 of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 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 engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the port and inland dredging sector; - 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 company, including Companies Act 2006, taxation legislation, 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 inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company'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. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias - investigated the rationale behind significant or unusual transactions; and - observed and identified internal controls in place, specifically around payroll and bank transactions. 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; and - reviewing correspondence with HMRC and reviewing for evidence of correspondence with legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 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.

Christopher Jones FCCA

(Senior Statutory Auditor)

For and on behalf of

Affinia (Orpington)

Chartered Accountants & statutory auditor

Lynwood House

Crofton Road

Orpington

Kent

BR6 8QE

28 October 2025

LAND & WATER SERVICES LTD

STATEMENT OF COMPREHENSIVE INCOME

YEAR ENDED 31 DECEMBER 2024

		2024	2023
Note		£	£
Turnover	4	31,031,521	29,176,154

Cost of sales	26,405,956	24,220,335
	-------------	-------------
Gross profit	4,625,565	4,955,819

Administrative expenses		4,306,914	4,747,121
Other operating income	6	–	200,700
		------------	------------
Operating profit	7	318,651	409,398

Interest receivable	11	–	17
Interest payable	12	5,422	–
		------------	------------
Profit before taxation		313,229	409,415

Taxation on ordinary activities	13	10,491	( 118,346)
		---------	---------
Profit for the financial year and total comprehensive income		302,738	527,761
		---------	---------

All the activities of the company are from continuing operations.

LAND & WATER SERVICES LTD

STATEMENT OF FINANCIAL POSITION

31 December 2024

	2024		2023
Note	£	£	£

Fixed assets

Tangible assets	15		344,112	91,715

Current assets

Stocks	16	341,693	346,289
Debtors	17	10,553,393	10,952,717
Cash at bank and in hand		1,683,430	–
		-------------	-------------
		12,578,516	11,299,006

Creditors: amounts falling due within one year	19	7,251,233		6,132,410
		-------------		-------------
Net current assets			5,327,283	5,166,596
			------------	------------
Total assets less current liabilities			5,671,395	5,258,311

Creditors: amounts falling due after more than one year	20		215,093	52,176

Provisions

Taxation including deferred tax	22	9,359	–
		------------	------------
Net assets		5,446,943	5,206,135
		------------	------------

Capital and reserves

Called up share capital	25	87,954	90,097
Share premium account	26	161,108	161,108
Capital redemption reserve	26	2,143	–
Profit and loss account	26	5,195,738	4,954,930
		------------	------------
Shareholders funds		5,446,943	5,206,135
		------------	------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 21 October 2025 , and are signed on behalf of the board by:

Mr R E Melhuish Mr J A Maclean

Director Director

Company registration number: 02776439

LAND & WATER SERVICES LTD

STATEMENT OF CHANGES IN EQUITY

YEAR ENDED 31 DECEMBER 2024

		Called up share capital	Share premium account	Capital redemption reserve	Profit and loss account	Total
		£	£	£	£	£
At 1 January 2023		90,097	161,108	–	4,440,069	4,691,274

Profit for the year					527,761	527,761
		--------	---------	----	------------	------------
Total comprehensive income for the year		–	–	–	527,761	527,761

Dividends paid and payable	14	–	–	–	( 12,900)	( 12,900)
		--------	---------	----	------------	------------
Total investments by and distributions to owners		–	–	–	( 12,900)	( 12,900)

At 31 December 2023		90,097	161,108	–	4,954,930	5,206,135

Profit for the year					302,738	302,738
		--------	---------	----	------------	------------
Total comprehensive income for the year		–	–	–	302,738	302,738

Cancellation of subscribed capital		( 2,143)	–	–	( 61,930)	( 64,073)
Redemption of shares		–	–	2,143	–	2,143
		-------	----	-------	--------	--------
Total investments by and distributions to owners		( 2,143)	–	2,143	( 61,930)	( 61,930)

		--------	---------	-------	------------	------------
At 31 December 2024		87,954	161,108	2,143	5,195,738	5,446,943
		--------	---------	-------	------------	------------

LAND & WATER SERVICES LTD

STATEMENT OF CASH FLOWS

YEAR ENDED 31 DECEMBER 2024

	2024	2023
Note	£	£

Cash flows from operating activities

Profit for the financial year	302,738	527,761

Adjustments for:
Depreciation of tangible assets	30,513	8,725
Interest receivable	–	( 17)
Interest payable	5,422	–
Loss on disposal of tangible assets	–	11,280
Taxation on ordinary activities	10,491	( 118,346)
Accrued expenses	1,729,247	229,655

Changes in:
Stocks	4,596	57,436
Trade and other debtors	398,961	487,553
Trade and other creditors	416,623	( 2,286,951)
	------------	------------
Cash generated from operations	2,898,591	( 1,082,904)

Interest paid	( 5,422)	–
Interest received	–	17
Tax (paid)/received	( 30,040)	155,085
	------------	------------
Net cash from/(used in) operating activities	2,863,129	( 927,802)
	------------	------------

Cash flows from investing activities

Purchase of tangible assets	( 282,910)	( 67,756)
Proceeds from sale of tangible assets	–	10,000
	------------	------------
Net cash used in investing activities	( 282,910)	( 57,756)
	------------	------------

Cash flows from financing activities

Purchase of own shares	( 61,930)	–
Proceeds from loans from group undertakings	( 186,676)	( 371,743)
Payments of finance lease liabilities	233,791	60,367
Dividends paid	–	( 12,900)
	------------	------------
Net cash used in financing activities	( 14,815)	( 324,276)
	------------	------------

Net increase/(decrease) in cash and cash equivalents		2,565,404	( 1,309,834)
Cash and cash equivalents at beginning of year		(881,974)	427,860
		------------	---------
Cash and cash equivalents at end of year	18	1,683,430	( 881,974)
		------------	---------

LAND & WATER SERVICES LTD

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2024

1. General information

The company is a private company limited by shares, registered in England and Wales.. The address of the registered office is Numeric House, 98 Station Road, Sidcup, Kent, DA15 7BY, United Kingdom.

2. Statement of compliance

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

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through the statement of comprehensive income. The financial statements are prepared in sterling, which is the functional currency of the entity.

Debtors

Debtors are initially recorded at fair value and are assessed for impairment at each year end date. If any impairments exist the debtors are remeasured to the present value of the expected future cash inflows.

Going concern

During the year the company experienced downturn in trading activities and profit compared to previous years. The company currently has sufficient working capital to continue trading for at least 12 months from the date the audit report is approved. It is for these reasons the financial statements have been prepared on the going concern basis.

Creditors

Creditors are initially recorded at fair value and are then remeasured to the present value of the expected future cash outflows.

Revenue recognition

Revenue refers to the amounts earned from the Company's principal activity; port and inland dredging. The revenue shown in the statement of comprehensive income represents amounts invoiced during the year, exclusive of Value Added Tax. The company provides dredging services for ports and inland waterways. Revenue is recognised when the following conditions are met; the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company, the stage of completion of the service can be measured reliably and the costs incurred and the costs to complete the service can be measured reliably. Revenue from dredging services is typically recognised at the point when the service is rendered and the customer has accepted the work performed.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Tangible assets with a cost value in excess of £500 are capitalised, all items below this limit are expensed through the statement of comprehensive income.

Depreciation

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

Plant & Machinery	-	33% Straight Line
Fixtures & Fittings	-	25% straight line
Motor Vehicles	-	25% straight line

The residual value of all tangible assets is deemed to be £Nil.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost or net realisable value using the first in first out basis.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant judgements

The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

Bad debt provision

Provision is made for bad debts. This requires management's best estimate of the value of payments expected to be received in the future. In addition, the timing of the cash flows requires management's judgement.

Rebate recoverability

Provision is made for irrecoverable rebates. This requires management's best estimate of the value of payments expected to be received in the future. In addition, the timing of the cash flows requires management's judgement.

Long term contracts and uninvoiced sales

Provision is made for the uninvoiced sales which is based on the works completed pre year end but invoiced post year end. Management also make a judgement to determine the stage of completion of each project.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

There are no material estimates and assumptions.

4. Turnover

Turnover arises from:

	2024	2023
	£	£
Construction contracts	31,031,521	29,176,154
	-------------	-------------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Stock expenditure

Included in cost of sales is £59,719 (2023 £60,623), which represents the total cost of materials used during the period.

6. Other operating income

	2024	2023
	£	£
Management charges receivable	–	200,700
	----	---------

7. Operating profit

Operating profit or loss is stated after charging:

	2024	2023
	£	£
Depreciation of tangible assets	30,513	8,725
Loss on disposal of tangible assets	–	11,280
	--------	--------

Operating profit or loss is the profit or loss from business operations before deduction of interest and taxes.

8. Auditor's remuneration

	2024	2023
	£	£
Fees payable for the audit of the financial statements	12,500	12,500
	--------	--------

9. Particulars of employees

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

	2024	2023
	No.	No.
Production staff	35	45
Distribution staff	63	65
Administrative staff	20	25
	----	----
	118	135
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2024	2023
	£	£
Wages and salaries	5,940,335	6,168,057
Social security costs	667,567	712,266
Other pension costs	129,594	33,986
	------------	------------
	6,737,496	6,914,309
	------------	------------

10. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2024	2023
	£	£
Remuneration	196,084	171,169
	---------	---------

11. Interest receivable

	2024	2023
	£	£
Interest on cash and cash equivalents	–	17
	----	----

12. Interest payable

	2024	2023
	£	£
Interest on obligations under finance leases and hire purchase contracts	5,422	–
	-------	----

13. Taxation on ordinary activities

Major components of tax expense/(income)

	2024	2023
	£	£

Current tax:

UK current tax expense	4,085	–
Adjustments in respect of prior periods	( 3,316)	( 118,343)
	-------	---------
Total current tax	769	( 118,343)
	-------	---------

Deferred tax:

Origination and reversal of timing differences	9,722	( 3)
	--------	---------
Taxation on ordinary activities	10,491	( 118,346)
	--------	---------

Reconciliation of tax expense/(income)

The tax assessed on the profit on ordinary activities for the year is lower than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 23.50 %).

	2024	2023
	£	£
Profit on ordinary activities before taxation	313,229	409,415
	---------	---------
Profit on ordinary activities by rate of tax	78,306	96,293
Adjustment to tax charge in respect of prior periods	( 3,316)	( 118,343)
Effect of expenses not deductible for tax purposes	5,520	1,196
Effect of capital allowances and depreciation	( 9,969)	( 5,106)
Effect of different UK tax rates on some earnings	(40)	–
Effect of group relief	( 69,732)	( 92,383)
Effect on deferred tax	9,722	( 3)
	---------	---------
Tax on profit	10,491	( 118,346)
	---------	---------

14. Dividends

	2024	2023
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )	–	12,900
	----	--------

15. Tangible assets

	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£
Cost
At 1 January 2024	21,300	79,914	87,853	189,067
Additions	5,500	–	277,410	282,910
Disposals	( 3,850)	–	–	( 3,850)
	--------	--------	---------	---------
At 31 December 2024	22,950	79,914	365,263	468,127
	--------	--------	---------	---------
Depreciation
At 1 January 2024	3,850	78,225	15,277	97,352
Charge for the year	–	837	29,676	30,513
Disposals	( 3,850)	–	–	( 3,850)
	--------	--------	---------	---------
At 31 December 2024	–	79,062	44,953	124,015
	--------	--------	---------	---------
Carrying amount
At 31 December 2024	22,950	852	320,310	344,112
	--------	--------	---------	---------
At 31 December 2023	17,450	1,689	72,576	91,715
	--------	--------	---------	---------

16. Stocks

	2024	2023
	£	£
Raw materials	341,693	346,289
	---------	---------

17. Debtors

	2024	2023
	£	£
Trade debtors	2,100,546	3,237,343
Amounts owed by group undertakings	1,051,396	2,352,622
Deferred tax asset	–	363
Prepayments and accrued income	186,258	114,988
Directors loan account	53,682	53,682
Amounts recoverable on contracts	6,890,369	5,007,463
Other debtors	271,142	186,256
	-------------	-------------
	10,553,393	10,952,717
	-------------	-------------

The debtors above include the following amounts falling due after more than one year:

	2024	2023
	£	£
Trade debtors	466,898	743,337
	---------	---------

18. Cash and cash equivalents

Cash and cash equivalents comprise the following:

	2024	2023
	£	£
Cash at bank and in hand	1,683,430	–
Bank overdrafts	–	( 881,974)
	------------	---------
	1,683,430	( 881,974)
	------------	---------

19. Creditors: amounts falling due within one year

	2024	2023
	£	£
Bank loans and overdrafts	–	881,974
Trade creditors	3,307,801	2,637,671
Amounts owed to group undertakings	961,936	1,148,612
Accruals and deferred income	2,670,184	940,937
Corporation tax	7,471	36,742
Social security and other taxes	224,776	477,323
Obligations under finance leases and hire purchase contracts	79,065	8,191
Other creditors	–	960
	------------	------------
	7,251,233	6,132,410
	------------	------------

The company has entered into a composite accounting agreement with Natwest Bank Plc between Land & Water Services Limited, Land & Water Plant Limited, Land & Water Remediation Limited, Land & Water Estates Limited, M.H.J. Limited & Land and Water Group Limited. Under the terms of this agreement the bank is authorised in certain circumstances to seize bank account balances and apply them in reduction of liabilities including overdrawn bank accounts of the other group companies in the agreement. The total potential liability under the composite agreement at the year end is £2,312,912. During the year the company entered into a debenture with Natwest Bank Plc, all assets of the company are held as security as part of the agreement.

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

	2024	2023
	£	£
Obligations under finance leases and hire purchase contracts	215,093	52,176
	---------	--------

21. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	2024	2023
	£	£
Not later than 1 year	79,065	8,191
Later than 1 year and not later than 5 years	215,093	52,176
	---------	--------
	294,158	60,367
	---------	--------

22. Provisions

	Deferred tax (note 23)
	£
At 1 January 2024	–
Additions	9,359
	-------
At 31 December 2024	9,359
	-------

23. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2024	2023
	£	£
Included in debtors (note 17)	–	363
Included in provisions (note 22)	( 9,359)	–
	-------	----
	( 9,359)	363
	-------	----

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

	2024	2023
	£	£
Accelerated capital allowances	9,359	( 363)
	-------	----

24. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 129,594 (2023: £ 33,986 ).

25. Called up share capital

Issued, called up and fully paid

	2024		2023
	No.	£	No.	£
Ordinary shares of £ 0.10 each	879,547	87,955	900,977	90,098
	---------	--------	---------	--------

26. Reserves

Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Profit and loss account - This reserve records retained earnings and accumulated losses.

27. Analysis of changes in net debt

	At 1 Jan 2024	Cash flows	At 31 Dec 2024
	£	£	£
Cash at bank and in hand	–	1,683,430	1,683,430
Bank overdrafts	(881,974)	881,974	–
Debt due within one year	(1,156,803)	115,802	(1,041,001)
Debt due after one year	(52,176)	(162,917)	(215,093)
	------------	------------	------------
	( 2,090,953)	2,518,289	427,336
	------------	------------	------------

28. Directors' advances, credits and guarantees

Advances brought forward and additional advances during the year totalling £117,386 were made available to the directors. The balance outstanding at the year end was £127,418. The advances were made interest free and are repayable on demand. At the year end there were loan amounts outstanding totalling

LAND & WATER SERVICES LTD

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 DECEMBER 2024

29. Related party transactions

At the year end the company was owed £23,428 (2023: £1,951) by Land and Water Group Limited. This company is related to Land & Water Services Limited related as they are both part of the same group company as the majority of their shares are owned by MHJ Limited. At the year end the company was owed £305,695 (2023: £885,956) by Land & Water Remediation Limited and owed £263,680 (2023: £315,347) to Land & Water Plant Limited. These companies are related to Land & Water Services Limited as related to these companies as they are all part of the same group company as the majority of their shares are owned by MHJ Limited. At the year end the company was owed £38,791 (2023: £5,121) by MHJ Limited. MHJ Limited is the parent company of Land & Water Services Limited. At the year end the company was owed £888 (2023: £37,361) from Geomac Limited, the companies are related as they are both under the control of the same directors. At the year end the company was owed £2,358 (2023: Nil) from Waterwise Training Limited, the companies are related as they are both under the control of the same directors. At the year end the company owed £17,131 (2023: Nil) to NTD National Tracked Dumper Hire Limited. Land & Water Services Limited are related to them because Land & Water Plant Limited own 50% shareholdings in National Tracked Dumper Hire Limited. Land & Water Services Limited and Land & Water Plant Limited are related because they are all part of the same group company as the majority of their shares are owned by MHJ Limited During the year sales were made to Land & Water Plant Limited of £341,741 (2023: £286,573) and purchases were made of £2,474,140 (2023: £1,825,284). During the year sales were made to Land & Water Remediation Limited of £951,914 (2023: £2,482,272) and purchases were made of £394,823 (2023: £155,296). During the year sales were made to Land and Water Group Limited of £77,738 (2023: £72,708) and purchases were made of £1,778,483 (2023: £1,825,284) of which £1,724,988 (2023: £1,781,748) relates to management charges payable. During the year sales were made to MHJ Limited of £111,855 (2023: £342,382) and purchases were made of £154,260 (2023: £123,018) of which £108,000 (2023: £105,000) relates to management charges payable. During the year sales were made to Geomac Limited of £215,370 (2023: £863,724). All loans were made interest free and are repayable on demand. All transactions are at market value.

30. Ultimate parent company

The company's ultimate parent undertaking is M.H.J. Limited. It has included the company in its consolidated financial statements, copies of which are available from its registered office: Numeric House, 98 Station Road, Sidcup, Kent, DA15 7BY.