REGISTERED NUMBER: 06258942 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

FOR

MIDLAND ROCK (LEICESTER) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

Mr I Mcgregor

Mr W J Fox

Ms L Fox

Mr D McGregor

Mr S Roberts

REGISTERED OFFICE:

Elms Farm

Relief Road

Broughton Way

Broughton Astley

Leicestershire

LE9 6SN

REGISTERED NUMBER:

06258942 (England and Wales)

SENIOR STATUTORY AUDITOR:

Mr W Scales FCA FMAAT

AUDITORS:

Mark J Rees LLP Chartered Accountants

and Statutory Auditors

Granville Hall

Granville Road

Leicester

LE1 7RU

BANKERS:

HSBC Bank plc

2-6 Gallowtree Gate

Leicester

Leicestershire

LE1 6DA

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

Midland Rock (Leicester) Limited is an established business that incorporated in 2007. The company has since grown to become a leading business in the Midlands in the supply of aggregates, waste removal, grab hire, heavy civil construction services and other supporting services.

REVIEW OF BUSINESS

The results for the year and financial position of the company are as shown in the annexed financial statements.

Performance of the business and Outlook

The company's turnover for the year ended 31 May 2025 increased by 32.06% resulting in a healthy net profit for the year of £531k.

Our KPI's for the year are detailed below:

KPI's £

2025

2024

Turnover

23,486

15,956

Gross Profit %

10.50%

9.39%

Net Profit/(Loss) Before Tax

531

(203)

Net Assets

2,455

2,211

We believe the signs looking forward are positive and are confident that the results will continue in 2026. The target for the next financial year is to increase turnover to similar levels of this year whilst also concentrating on improving profitability.

Our experienced management team and strong financial position enable us to be well positioned to continue the successful development of the company.

PRINCIPAL RISKS AND UNCERTAINTIES

The company manages liquidity risk by ensuring that there are sufficient funds to meet amounts due to trade creditors and loan repayments. Trade debtors are managed in respect of credit and cash flow risk by regular monitoring of amounts outstanding in terms of time and credit limits.

ON BEHALF OF THE BOARD:

Mr W J Fox - Director

27 October 2025

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

DIVIDENDS

The total distribution of dividends for the year ended 31 May 2025 was £128,400 (2024 - £85,600).

DIRECTORS

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

Mr I Mcgregor

Mr W J Fox

Ms L Fox

Mr D McGregor

Mr S Roberts

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Mark J Rees LLP Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr W J Fox - Director

27 October 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISA's (UK).

We obtained an understanding of the legal and regulatory frameworks applicable to the company and industry in which it operates through our general commercial experience. We determined that the following laws and regulations were most significant: FRS 102, Companies Act 2006 and the relevant tax compliance regulations in the UK. In addition, we concluded that there are certain laws and regulations that may have an effect in the determination of the amounts and disclosures in the financial statements such as health and safety and employee related matters.

We enquired of management concerning the company's policies and procedures relating to:

- the identification and compliance with laws and regulations

- the detection and response to the risks of fraud

- the internal controls inherent within the company to mitigate fraud risk and non-compliance to laws and regulations

We enquired of management, whether they were aware of any instance of non-compliance with laws and regulations or whether they had any knowledge of actual, suspected or alleged fraud.

We communicated relevant laws and regulations and potential areas of fraud to all audit team members including the potential for fraud in revenue recognition through the manipulation of costs incurred on contracts. We remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

We have determined that the principal risk areas where material irregularities could occur were related to posting manual journal entries to manipulate financial performance, revenue recognition, valuation of amounts recoverable on contracts and significant one-off or unusual transactions.

Our audit procedures were designed to respond in particular to these identified risks (including non compliance with laws and regulations and fraud).

Our audit procedures included but were not limited to:

- A review of laws and regulations the company is subject to, followed by compliance checks and discussion with management to ensure no instances of non compliance.

- Identifying and testing journal entries, on a sample basis, to review for potential management bias or manipulation of revenue recognition.

- A review of a sample of sales invoices in the year and detailed cut off testing around the year end to ensure revenue is recorded accurately and recognised in the correct period.

We did not identify any matters during the course of our work that indicated non-compliance with laws and regulations or relating to fraud.

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

Use of our report

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

Mr W Scales FCA FMAAT (Senior Statutory Auditor)

for and on behalf of Mark J Rees LLP Chartered Accountants

and Statutory Auditors

Granville Hall

Granville Road

Leicester

LE1 7RU

28 October 2025

TURNOVER

23,485,768

15,956,368

Cost of sales

21,018,908

14,457,401

GROSS PROFIT

2,466,860

1,498,967

Administrative expenses

1,800,055

1,606,047

OPERATING PROFIT/(LOSS)

5

666,805

(107,080

)

Interest receivable and similar income

2,610

3,606

669,415

(103,474

)

Interest payable and similar expenses

7

138,111

99,439

PROFIT/(LOSS) BEFORE TAXATION

531,304

(202,913

)

Tax on profit/(loss)

8

158,515

(44,263

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

372,789

(158,650

)

PROFIT/(LOSS) FOR THE YEAR

372,789

(158,650

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

372,789

(158,650

)

FIXED ASSETS

Intangible assets

10

24,229

-

Tangible assets

11

3,316,532

2,815,415

3,340,761

2,815,415

CURRENT ASSETS

Stocks

12

38,985

15,003

Debtors

13

5,611,442

4,031,122

Cash at bank

763,034

776,702

6,413,461

4,822,827

CREDITORS

Amounts falling due within one year

14

6,223,251

4,820,509

NET CURRENT ASSETS

190,210

2,318

TOTAL ASSETS LESS CURRENT LIABILITIES

3,530,971

2,817,733

CREDITORS

Amounts falling due after more than one year

15

(420,860

)

(110,570

)

PROVISIONS FOR LIABILITIES

18

(654,756

)

(496,241

)

NET ASSETS

2,455,355

2,210,922

CAPITAL AND RESERVES

Called up share capital

19

46

2

Retained earnings

20

2,455,309

2,210,920

SHAREHOLDERS' FUNDS

2,455,355

2,210,922

The financial statements were approved by the Board of Directors and authorised for issue on 27 October 2025 and were signed on its behalf by:

Mr W J Fox - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 June 2023

2

2,455,170

2,455,172

Changes in equity

Dividends

-

(85,600

)

(85,600

)

Total comprehensive income

-

(158,650

)

(158,650

)

Balance at 31 May 2024

2

2,210,920

2,210,922

Changes in equity

Issue of share capital

44

-

44

Dividends

-

(128,400

)

(128,400

)

Total comprehensive income

-

372,789

372,789

Balance at 31 May 2025

46

2,455,309

2,455,355

Cash flows from operating activities

Cash generated from operations

1

1,064,451

1,357,441

Interest paid

(93,878

)

(56,853

)

Interest element of hire purchase payments paid

(44,233

)

(42,586

)

Net cash from operating activities

926,340

1,258,002

Cash flows from investing activities

Purchase of intangible fixed assets

(24,229

)

-

Purchase of tangible fixed assets

(1,414,001

)

(23,581

)

Sale of tangible fixed assets

284,750

60,500

Interest received

2,610

3,606

Net cash from investing activities

(1,150,870

)

40,525

Cash flows from financing activities

Capital repayments in year

339,262

(614,600

)

Amount withdrawn by directors

(44

)

(15,000

)

Share issue

44

-

Equity dividends paid

(128,400

)

(85,600

)

Net cash from financing activities

210,862

(715,200

)

(Decrease)/increase in cash and cash equivalents

(13,668

)

583,327

Cash and cash equivalents at beginning of year

2

776,702

193,375

Cash and cash equivalents at end of year

2

763,034

776,702

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit/(loss) before taxation

531,304

(202,913

)

Depreciation charges

620,694

553,490

Loss/(profit) on disposal of fixed assets

7,440

(12,673

)

Finance costs

138,111

99,439

Finance income

(2,610

)

(3,606

)

1,294,939

433,737

Increase in stocks

(23,982

)

(2,193

)

Increase in trade and other debtors

(1,553,438

)

(533,392

)

Increase in trade and other creditors

1,346,932

1,459,289

Cash generated from operations

1,064,451

1,357,441

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 May 2025

31.5.25

1.6.24

£

£

Cash and cash equivalents

763,034

776,702

Year ended 31 May 2024

31.5.24

1.6.23

£

£

Cash and cash equivalents

776,702

193,375

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.6.24

Cash flow

At 31.5.25

£

£

£

Net cash

Cash at bank

776,702

(13,668

)

763,034

776,702

(13,668

)

763,034

Debt

Finance leases

(417,592

)

(339,262

)

(756,854

)

(417,592

)

(339,262

)

(756,854

)

Total

359,110

(352,930

)

6,180

1.	STATUTORY INFORMATION

Midland Rock (Leicester) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

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

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements

The financial statements contain information about Midland Rock (Leicester) Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Midland Rock Holdings Limited, Elms Farm Relief Road Broughton Way, Broughton Astley, Leicester, United Kingdom, LE9 6SN.

Related party exemption

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

Significant judgements and estimates

There were no areas in which the preparation of the financial statements required to make significant judgements or estimates.

Turnover

Turnover comprises the fair value for the sale of goods and services excluding value added taxes and represents net invoice value. The company supplies products and services to customers under standard terms and conditions. In all cases revenue is recognised when the risks and rewards of ownership are transferred and this is defined to be on dispatch of goods or completion of services.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2025, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

15% on reducing balance

Motor vehicles

-

20% on reducing balance

Office and workshop

-

10% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts are capitalised in the balance sheet and depreciated over their estimated useful lives.The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing it's financial statements.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,000,122

1,862,334

Other pension costs

66,399

129,928

2,066,521

1,992,262

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

2025

2024

Production

31

32

Administration

7

7

Sales

2

2

Directors

5

5

45

46

2025

2024

£

£

Directors' remuneration

200,753

328,315

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

89,692

100,209

5.	OPERATING PROFIT/(LOSS)

The operating profit (2024 - operating loss) is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

31,831

22,496

Depreciation - owned assets

620,694

553,490

Loss/(profit) on disposal of fixed assets

7,440

(12,673

)

Auditors remuneration

8,000

12,000

6.	EXCEPTIONAL ITEMS

2025

2024

£

£

Exceptional items

(65,700

)

-

The exceptional item relates to amounts written off from balances within debtors.

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Factoring charges and interest

93,878

56,853

Hire purchase

44,233

42,586

138,111

99,439

8.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2025

2024

£

£

Deferred taxation

158,515

(44,263

)

Tax on profit/(loss)

158,515

(44,263

)

UK corporation tax has been charged at 25% (2024 - 25%).

Reconciliation of total tax charge/(credit) included in profit and loss

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

2025

2024

£

£

Profit/(loss) before tax

531,304

(202,913

)

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

132,826

(50,728

)

Effects of:

Expenses not deductible for tax purposes

17,254

5,870

Capital allowances in excess of depreciation

(8,500

)

-

Depreciation in excess of capital allowances

-

595

Unrelieved tax losses carried forward

16,935

-

Total tax charge/(credit)

158,515

(44,263

)

As at 31 May 2024 the company has taxable losses of £669,600 (2024: £511,932) to be carried forward and offset against future trading profits.

9.

DIVIDENDS

2025

2024

£

£

Ordinary shares of £1 each

Interim

128,400

85,600