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

We aim to provide 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 our business.

Business activities and services

Whilst still branding as Plumbing, Heating and Electrical contractors over the last 10 years our work type has diversified to accommodate whole house refurbishment activities. We have continued to deliver these works as a main contractor over the last year, primarily dealing with social housing refurbishment works.

We have continued to operate from our centralised head office in Kirkby in Ashfield and facilitate satellite offices in Lincoln and Scunthorpe. These offices have ensured that we are in the heart of the communities in our contract areas. We have continued to utilise site compounds and smaller projects.

The construction industry is a competitive market. This year we continued to focus our efforts to achieve business growth, controlling our costs and delivering a quality service to our clients and customers, along with enhancing our social media portfolio and recording of social value initiatives.

The principal risks and uncertainties facing the company are believed to be the continuation of contract works available to be undertaken for local authorities, social housing projects and New Build Contractors, together with continuing keen competition and consequent squeezing in profit margins on these contracts. All industry information along with that gathered in the public domain indicated that overall, such contracts work are likely to continue, at least at current levels with growth in areas, with both long-term demand for new housing stock and government pressure for local authorities and housing association to increase occupancy levels of current housing stock.

Going forward risk is being managed by seeking to ensure competitive tendering for those contracts where realistic profit level is still achievable. Along with ensuring we maintain excellent relationships with our existing clients and deliver a quality service.

The company has shown over many years its ability to undertake and successfully deliver on these type contracts and it is financially sound. It has an ongoing program of inhouse apprenticeships to ensure future labour needs can be met and meets current ISO standards for both management, quality and environmental issues.

Turnover for the year amounted to £17,053,712 (2024: £15,202,458) which we considered to be an excellent level for our business. Gross profit for the year was £4,756,220- 27.9% (2024: £3,862,240 - 25.4%) and profit on ordinary activities for the year was £1,285,124 (2024: £804,396).

Overall, we consider that the performance of the business, given the prevailing market and competitive tendering, to be strong and that the Company is in a sound financial position at the balance sheet to date. Retained earnings at the year-end stood at £2,652,976 (2024: £1,793,307).

Throughout the year, we continued investment in our fixed assets (fleet of vehicles). This year saw the investment in 31 new Company vehicles, allowing us to replace failing and aged vehicles from our fleet. We continued our pledge to purchase greener electric vehicles with the addition of 5 electric vehicles to our fleet.

We have set business growth targets for the next year along with new key performance indicators to measure our success including monitoring non-financial key performance indicators.

This year, we have continued to deliver our works utilising predominantly our pool of directly employed tradespeople. we have increased our directly employed work force by 3 employees (2025: 107 direct site and labour staff, compared to 2024:104 direct site and labour staff). We also added 2 new members to our office and admin team (2025: 26 compared to 2024: 24). We ended the year with a total of 137 employees (2024: 132).

We have continued to heavily invest in the training and developing our employees, to support their aspirations and career development as well as continuously improving our service. We develop individual plans to identify training and developments needs, which are matched with our clients' requirements. This ensures an annual training plan to ensure staff members are both contract ready and satisfied in their work. This year has seen even more inhouse career progressions at all levels. All showing our desire to enrich our employees with opportunities to become the best they can be.

Apprenticeship commitments

Employment and skills development forms a central part of our business philosophy. We fully appreciate the benefits of developing our own talent. We fully support the development of school leavers, the unemployed and mature students in our apprenticeship scheme. We are committed to continuing our work with apprentices which included a week long apprenticeship event in Scunthorpe as part of National Apprenticeship Week. We will continue to support apprentices and create and apprentice position for our local communities.

At the year end, we had 19 apprentices making up a total of 18% of our workforce. Past number of apprentices are: 2024 - 22, 2023 - 20, 2022 - 16, 2021 - 16, 2020 - 17).

It has always been the vision that our apprentices are the future of the business, this vision is backed by the fact that many of our apprentices have progressed from apprentices to experienced tradespeople and then on to become site supervisors, contract managers and Directors.

Certifications and accreditations

We maintained our key certifications and accreditations this year including: Gas Safe, NICEIC, OFTEC, MCS, CHAS, Safe Contractor, Constructionline, ISO9001, ISO14001. We have also set targets for new certifications and accreditations moving into the next financial year including ISO45001.

Quality and environmental commitments

Matthews and Tannert Ltd gained ISO9001 and ISO14001 certification in May 2014. We successfully completed a 2-day surveillance audit on 27th and 28th November 2024. In preparation for our audit reviewed and revised our key environmental objectives. This year we have been striving to:

- Reduce vehicle emission and minimise fuel use - this has been so far achieved with the purchase of our new more efficient vans, hybrid vehicles and electric cars;

- Maximise our recycling rates - in the year we managed to maintain and exceed our recycling rate of 98% with less than 1% of our waste generated going to landfill;

- Deliver customer satisfaction - we have commenced recording our own customer satisfaction scores to provide us with a benchmark for future years rather than relying on client data;

- Purchase greener vehicles - this was achieved by swapping our trucks and cars to electric vehicles.

These targets will be carried over into the next financial year, with a review before our 4 days recertification audit commencing 19th January 2026.

Social value

Matthews and Tannert Ltd are always happy to support local initiatives and give back to our local communities as well as the communities where we are working. This year we have sponsored some amazing local events, youth football teams as well as making some fantastic individual donations. Examples include but are not limited to:

- July 2024 - Sponsorship of Mansfield District Council Summer Carnival

- November 2024 - Donation of a hamper to a local school raising funds with a Christmas raffle

- November 2024 - Sponsorship of the 'Cosy Christmas' for Mansfield District Council

- December 2024 - Donations to 5 food banks offering helping hands to families in need over the Christmas period from an initiative with our employees at each office/satellite office

- December 2024 - Christmas present drop to the Kings Mill Hospital concentrating on the elderly and those suffering from dementia that would be in hospital over Christmas

- December 2024 - Charity raffle to raise money for Caldwells Children's Charity

On behalf of the board

The directors present their annual report and financial statements for the period ended 31 May 2025.

The principal activity of the company and group continued to be that of plumbing, heating, & general building maintenance contractors.

The results for the period are set out on page 9.

Ordinary dividends were paid amounting to £90,000. The directors do not recommend payment of a further dividend.

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

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

We have audited the financial statements of MRD Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 May 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 May 2025 and of the group's profit for the period then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• The information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

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

In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns; or

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

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

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

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

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

Due to the heavy involvement of the directors in the day to day running of the entity and the oversight over transactions, our assessment of the entity's financial statements to material misstatements, including fraud, is low.

Whilst the below procedures aid us in detecting irregularities, there exists the inherent difficulty in detecting irregularities, particularly those related to fraud. However, we believe the below risks to be the particular areas most susceptible to material misstatement.

- Testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

- Reviewing a sample of sales around the year end and ensuring correct cut-off had been applied

- Enquiring of management and those charged with governance around actual and potential litigation and claims

- Reviewing correspondence files for evidence of non-compliance

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.

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £90,000.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

MRD Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

The group consists of MRD Holdings Limited and all of its subsidiaries.

The accounting period is longer than 12 months as this is the parent company’s first set of financial statements since incorporation on 16 May 2024.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company MRD Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 May 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover, for small works and sundry sales, represents net invoiced sales of goods and services, excluding value added tax.

For long term contracts, income is recognised based on the level of practical completion attained, which is determined based on past experience and valuations performed by qualified quantity surveyors. Contracts are broken down sufficiently to allow the directors, with reasonable certainty, to assess the level of profitability associated with them. Provision is made for losses on all long term contracts as soon as such losses become apparent.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

Stocks are recognised with the First In, First Out (FIFO) method.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Retentions

Retentions outstanding on invoiced contract works are included within trade debtors. The ageing split of retentions is based upon contract completion dates and in accordance with contractor agreement terms and/or normal terms of contract works with the contractor for retention release. The retention element of uninvoiced sales is included in amounts recoverable on long term contracts.

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

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

Government grants

Government grants of £4,000 (2024: £1,500) were received for staff training.

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

Their aggregate remuneration comprised:

The actual charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:

The goodwill in the Group was acquired on the acquisition of 100% of the issued capital of Matthews & Tannert Limited.

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

Details of the company's subsidiaries at 31 May 2025 are as follows:

Financial assets set out above comprise all current assets excluding stocks.

Financial liabilities set out above comprise all creditors due in less than and in more than one year.

Bank borrowing and facilities are secured by a fixed and floating charge over the assets of the subsidiary company.

Debentures and charges against the subsidiary company are held as security for all monies due and becoming due to Yorkshire Bank PLC.

The bank loan is repayable over 4.5 years in equal instalments commencing August 2021. Interest is payable

monthly in arrears at a rate of 3.7% over the Bank of England base rate.

Obligations under hire purchase contracts and finance leases are secured on the assets to which they relate.

The company has hire purchase and finance leases in respect of the purchase of motor vehicles in the normal

course of business.

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

The deferred tax liability set out above relates to capital allowances in excess of depreciation and tax relief on

pension creditor.

No material reversal of deferred tax liabilities are expected in the following year.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Contributions made into this plan are paid at rates specified in the rules of the schemes. As at the reporting date, amounts payable of £22,919 (2024: £21,759) had not been paid over to the plan.

The rights, preferences and restrictions attaching to all the Ordinary A and B shares of the company (including restrictions on dividend distributions and repayment of capital) are those prescribed under UK company law.

The holders of A and B Ordinary shares are entitled to one vote in any resolution proposed at a general meeting.

The B Ordinary shares shall be entitled to a fixed, cumulative, preferential dividend calculated at the preference rate. After the payment of the preference dividend, additional dividends may be declared on the A Ordinary shares and B Ordinary shares as determined by the board of directors.

On winding up or other return of capital, a capital preference of £900,000 shall be firstly distributed to the holders of B Ordinary shares. The balance of proceeds remaining will then be distributed to the holders of A Ordinary and B Ordinary shares on a pro rata basis according to the number of shares held.

The merger reserve reflects the difference between the fair value of the net assets acquired and the nominal value of the shares issued when the Group was created.

Comprise all current and prior period retained profits and losses.

On 3 June 2024 the group acquired 100 percent of the issued capital of Matthews & Tannert Limited.

The goodwill arising on the acquisition of a business is attributable to the future economic benefits arising from assets that are not individually identified and separately recognised in the acquisition.

The deferred consideration is not contingent and should be settled within 4 years. It has not been adjusted to the present value as in the opinion of the directors it is not material to the financial statements.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

During the period the group entered into the following transactions with related parties:

Mr S Matthews is the ultimate controlling party by virtue of his shareholding.