REGISTERED NUMBER: 02062057 (England and Wales)

BRIDGEBANK LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 JANUARY 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

17

DIRECTORS:

T P Ryan

K Adams

K J Mason

REGISTERED OFFICE:

Unit 3, Sherwood Oaks Close

Sherwood Oaks Business Park

Mansfield

Nottinghamshire

NG18 4TB

REGISTERED NUMBER:

02062057 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

Statutory Auditor, Chartered Accountants

Sidings House, Sidings Court

Lakeside

Doncaster

South Yorkshire

DN4 5NU

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

The directors aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties faced by it.

REVIEW OF BUSINESS

During the year ended 31st January 2025 the directors consider the results of the company to be positive.

FINANCIAL KEY PERFORMANCE INDICATORS

2025

2024

Turnover

£55,115,620

£51,352,645

Gross Profit

£6,912,866

£6,173,621

Gross Profit Percentage

12.5%

12.0%

Net Profit Before Tax

£1,459,325

£403,625

Net Current Assets

£10,051,319

£9,872,440

Net Assets

£10,538,980

£10,323,776

The company achieved growth in 2025, driven by increased turnover in comparison to the previous accounting period. Growth was achieved through expanding their commercial operations combined with price increases inline with UK inflationary pressures, representing the increased cost of operating / running the company. The company achieved a significantly better net profit margin, a result of the increased contribution from the gross margin combined with overhead cost control.

FUTURE REVIEW

Going concern

Whilst the Report of the directors and Financial Statements are focused on the financial results from 2025, the company's directors are mindful of the impacts of the macroeconomic conditions on the short to medium term resilience of the company. Due to the uncertainty caused by the macroeconomic landscape, the directors have looked at the resilience of the company to stay in business over the next 12 months. Three key measures have been looked at to determine if that position is reasonable, namely, income, expenditure, and cash flow. Based on a forecast of the likely activity in each of these areas the directors are satisfied that this position remains appropriate.

Cash flow

Based on the forecasted income and expenditure cash flow remains at a level above which is required to meet the debts of the company as they fall due.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors continually review and monitor the key risks facing the company in order to manage the business and deliver the company's strategy. The key risks and uncertainties affecting the company relate to the company strategy and business model does not delivery positive results, loss of key management or senior staff, market risk & supply chain risk. The company's principal financial instruments are Sterling cash, other loans and obligations operating leases along with trade debtors and trade creditors under its normal course of business. Risk management is a regular subject of board discussion and whilst the company does not have a material exposure in any of the areas mentioned, the board takes appropriate action when necessary.

MARKET STRATEGIES AND OPPORTUNITIES

The company's market strategy is focused on strengthening its competitive position and expanding market share through a combination of customer retention, new customer targets and geographic expansion. A key element of this strategy is improving customer satisfaction and building long-term relationships, which helps maintain a loyal customer base and drive repeat business. This is supported by enhanced service offerings, personalized experiences, and ongoing investments in customer support.

Additionally, the company is identifying and capitalizing on emerging opportunities to further its growth. By leveraging these strategies and opportunities, the company aims to achieve sustainable growth, boost profitability, and position itself for continued success in a competitive marketplace.

EVENTS SUBSEQUENT TO YEAR-END

There were no other significant events worthy of mention after the end of the financial year 2025.

EMPLOYEE MATTERS

The company continues to supplement staff competencies on key technical areas through internal skills development and external training courses. The company remains an equal opportunities employer and implements rigorous health and safety policies.

ENVIRONMENTAL MATTERS

The company is committed to minimising the impact of its activities on the environment and to continually improve its environmental performance.

BUSINESS RISKS

The board of directors regularly considers the main risks that the company faces and how to mitigate them. As for many businesses of our size and type, the business environment in which we operate continues to be challenging, with high levels of competition and tight margins. The most significant risk remains the depressed economic conditions in the United Kingdom and its impact on the new build housing market.

FUTURE DEVELOPMENTS

The directors continue to implement a long term strategy that will enable the company to continue to grow.

SECTION 172(1) STATEMENT

The Board of Bridgebank Limited ("The Company") consider that the requirement of Section 172 of the Companies Act 2006 ("The Act") has been complied with and the directors of the company have acted in good faith in performing their duty in promoting the success of the company. During the year the Directors have had regard for (amongst others):

- Any potential long term consequences as a result of decisions taken during the year

- The interests of the company's employees, including any training requirements

- The need to meet customer's needs as well as their expectations

- The impact on the environment as a result of the company carrying on its trade

One example of how the Company has had regard to the matters set out in Section 172 when discharging the duties of the Act and the effect of that on decisions taken, is by the payment of the dividend. The Board regularly reviews the performance of the company throughout the year including the strength of its Balance Sheet, as well as the expected future performance taking into consideration uncertainties in the wider economy. During the financial year ended 31 January 2025, a final dividend of £896,000 was paid. In making this decision the Board considered the impact on the company's cash flow position and ability to meet future liabilities as they fall due.

ON BEHALF OF THE BOARD:

K J Mason - Director

29 October 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of groundworks and civil engineering.

DIVIDENDS

An interim dividend of £2.67 per share was paid on 5 November 2024 and a final dividend of £17.24 was paid on 31 January 2025.

The total distribution of dividends for the year ended 31 January 2025 will be £896,000.

DIRECTORS

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

T P Ryan

K Adams

K J Mason

The directors are considered to be the key management personnel of the company.

POLITICAL DONATIONS AND EXPENDITURE

During the year the company made charitable donations of £6,657 (2024: £2,889), none of which were political in nature.

STREAMLINED ENERGY AND CARBON REPORTING

During the year the Company produced 4,245 (2024: 5,148) tonnes of CO2 equivalent, from its transport vehicles and site machinery. This equates to approximately 77 (2024: 100) tonnes of CO2 equivalent per £1m of Turnover.

The volume of fuel purchased was multiplied by the Governments published conversion factors in order to calculate CO2 equivalent.

The Company continually updates its machinery, which enables it to take advantage of the latest low emission engine technology.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

K J Mason - Director

29 October 2025

Opinion

We have audited the financial statements of Bridgebank Limited (the 'company') for the year ended 31 January 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 January 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 pages five and six, 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:

Based on our understanding of the company, we identified that the principal risks of non-compliance with laws and regulations related to the preparation of statutory accounts and corporation tax legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. As part of this assessment we considered both quantitative and qualitative factors. We also considered those laws and regulations that have a direct impact on the preparation on the financial statements, such as the Companies Act 2006 and FRS 102.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements which included the risk of management override of controls. We determined that the principal risks were related to posting inappropriate journal entries, omitting, advancing or delaying recognition of events and transactions that have occurred during or after the reporting period, and potential management bias in the determination of accounting estimates or judgements to manipulate results.

Audit procedures performed by the engagement team include:

- Enquiring of and obtaining written representation from management in relation to known or suspected instances of non-compliance with laws and regulations and fraud;

- Evaluation of management's controls designed to prevent and detect irregularities;

- Identifying and, where relevant, testing journal entries posted by senior management or with unusual combinations;

- Assessing and evaluating the business rationale of significant transactions outside the normal course of business;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Incorporating elements of unpredictability into the nature, timing and/or extent of audit procedures performed.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.

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.

Kelvin Fitton BA FCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Statutory Auditor, Chartered Accountants

Sidings House, Sidings Court

Lakeside

Doncaster

South Yorkshire

DN4 5NU

30 October 2025

TURNOVER

55,115,620

51,352,645

Cost of sales

48,202,754

45,179,024

GROSS PROFIT

6,912,866

6,173,621

Administrative expenses

5,477,586

5,035,921

1,435,280

1,137,700

Other operating income

-

155,400

OPERATING PROFIT

4

1,435,280

1,293,100

Exceptional item

5

-

815,255

1,435,280

477,845

Interest receivable and similar income

23,771

35,314

1,459,051

513,159

Interest payable and similar expenses

6

(274

)

109,534

PROFIT BEFORE TAXATION

1,459,325

403,625

Tax on profit

7

410,407

148,965

PROFIT FOR THE FINANCIAL YEAR

1,048,918

254,660

PROFIT FOR THE YEAR

1,048,918

254,660

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,048,918

254,660

FIXED ASSETS

Tangible assets

9

1,150,598

1,001,215

CURRENT ASSETS

Debtors

10

12,549,227

12,741,932

Cash at bank

5,464,632

2,731,184

18,013,859

15,473,116

CREDITORS

Amounts falling due within one year

11

8,024,826

5,600,676

NET CURRENT ASSETS

9,989,033

9,872,440

TOTAL ASSETS LESS CURRENT LIABILITIES

11,139,631

10,873,655

CREDITORS

Amounts falling due after more than one year

12

(497,674

)

(375,530

)

PROVISIONS FOR LIABILITIES

15

(165,263

)

(174,349

)

NET ASSETS

10,476,694

10,323,776

CAPITAL AND RESERVES

Called up share capital

16

45,000

45,000

Capital redemption reserve

17

5,000

5,000

Retained earnings

17

10,426,694

10,273,776

SHAREHOLDERS' FUNDS

10,476,694

10,323,776

The financial statements were approved by the Board of Directors and authorised for issue on 29 October 2025 and were signed on its behalf by:

K J Mason - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 February 2023

45,000

11,129,116

5,000

11,179,116

Changes in equity

Dividends

-

(1,110,000

)

-

(1,110,000

)

Total comprehensive income

-

254,660

-

254,660

Balance at 31 January 2024

45,000

10,273,776

5,000

10,323,776

Changes in equity

Dividends

-

(896,000

)

-

(896,000

)

Total comprehensive income

-

1,048,918

-

1,048,918

Balance at 31 January 2025

45,000

10,426,694

5,000

10,476,694

Cash flows from operating activities

Cash generated from operations

1

3,391,215

1,225,278

Interest paid

67,457

(52,500

)

Interest element of hire purchase payments paid

(67,183

)

(57,034

)

Tax paid

112,352

(781,671

)

Net cash from operating activities

3,503,841

334,073

Cash flows from investing activities

Purchase of tangible fixed assets

(789,749

)

(258,779

)

Sale of tangible fixed assets

260,081

319,570

Interest received

23,771

35,314

Net cash from investing activities

(505,897

)

96,105

Cash flows from financing activities

Loan movement Bridgebank Group Ltd

(4,000

)

(1,521,416

)

Loan movement Bridgebank Plant Ltd

512,179

(106,539

)

Capital repayments in year

123,325

(237,763

)

Equity dividends paid

(896,000

)

(1,110,000

)

Net cash from financing activities

(264,496

)

(2,975,718

)

Increase/(decrease) in cash and cash equivalents

2,733,448

(2,545,540

)

Cash and cash equivalents at beginning of year

2

2,731,184

5,276,724

Cash and cash equivalents at end of year

2

5,464,632

2,731,184

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

1,459,325

403,625

Depreciation charges

576,598

619,451

Profit on disposal of fixed assets

(196,308

)

(290,946

)

Finance costs

(274

)

109,534

Finance income

(23,771

)

(35,314

)

1,815,570

806,350

(Increase)/decrease in trade and other debtors

(601,202

)

2,084,562

Increase/(decrease) in trade and other creditors

2,176,847

(1,665,634

)

Cash generated from operations

3,391,215

1,225,278

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 January 2025

31.1.25

1.2.24

£

£

Cash and cash equivalents

5,464,632

2,731,184

Year ended 31 January 2024

31.1.24

1.2.23

£

£

Cash and cash equivalents

2,731,184

5,276,724

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.2.24

Cash flow

At 31.1.25

£

£

£

Net cash

Cash at bank

2,731,184

2,733,448

5,464,632

2,731,184

2,733,448

5,464,632

Debt

Finance leases

(915,684

)

(123,325

)

(1,039,009

)

(915,684

)

(123,325

)

(1,039,009

)

Total

1,815,500

2,610,123

4,425,623

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The presentational and functional currency of these financial statements is sterling. Values are rounded to the nearest pound.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Significant judgements and estimates

In the application of the Company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, where the revision affects only that period, or in the period of the revisions and future periods where the revision affects both current and future periods.

Key estimates have been made as follows:

Tangible fixed assets

The annual depreciation charge is sensitive to changes in estimated useful economic lives and residual values of the assets. These are reviewed regularly to ensure that appropriate charges are made for depreciation.

Bad Debt Provision

When evaluating debtors for recoverability risk, the Directors use their knowledge and experience to determine the provision required. The Company provides against debtor when the directors are aware of specific issues but also base on the ageing of the debts. All post year end information, including credit notes, are considered in the directors calculation and any amounts considered irrecoverable are provided against in full.

The following principal accounting policies have been applied consistently throughout the period:

Turnover

The Company recognises revenue when the amount of revenue can be measured reliably, when it is probable that future economic benefits associated with the transaction will flow to the entity and when specific criteria are met.

Turnover consists of groundworks and civil engineering contracting activities predominantly on new build residential housing developments, working as subcontractor to the main developer.

Turnover and profit on contracts are recognised according to the value of work carried out in the period based on monthly surveyor valuations and related applications for payment, with reference to tendered prices.

Tangible fixed assets

Tangible assets are initially recorded at cost, and subsequent stated at cost less any accumulated depreciation and impairment losses.

Depreciation

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

Plant and machinery

- 50% on cost and 20% on reducing balance

Fixtures and fittings

- Straight line over 3 years

Motor vehicles

- 25% on cost, 20% on reducing balance and straight line over 3 years

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that is 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.

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

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

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

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.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Work in progress on contract

Due to the nature of the work completed by the company, stocks and work in progress are valued on a monthly basis and invoiced in full.

The valuation of WIP is based on management's estimates and judgment, taking into account:

- The measured work completed of the project or production process.

- The estimated total costs to complete.

- The expected selling price or contract value.

- Any anticipated losses or impairments.

- Historical performance data, current progress reports, and post-balance sheet information where relevant.

Where reliable measurement is not possible, WIP is carried at cost until a reasonable estimate of completion and recoverable value can be made.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,366,943

2,930,487

Social security costs

460,647

453,782

Other pension costs

213,362

173,546

4,040,952

3,557,815

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

2025

2024

Office staff

49

47

Site operatives

8

8

57

55

2025

2024

£

£

Directors' remuneration

496,654

374,846

Directors' pension contributions to money purchase schemes

32,318

3,253

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

264,573

280,833