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Registration number: 00408163

Pearce Construction (Barnstaple) Limited
Annual Report and Financial Statements
for the Year Ended 30 April 2025

Pearce Construction (Barnstaple) Limited

Contents

Company Information | 1
Strategic Report | 2 to 3
Directors' Report | 4 to 5
Statement of Directors' Responsibilities | 6
Independent Auditor's Report | 7 to 10
Profit and Loss Account and Statement of Retained Earnings | 11
Statement of Financial Position | 12
Notes to the Financial Statements | 13 to 25

Pearce Construction (Barnstaple) Limited

Company Information

Directors | D M Parsons R C Jeffs P S Knox N J Hopkins M R Davis

Registered office | Pearce House Brannam Crescent Roundswell Business Park Barnstaple Devon EX31 3TD

Solicitors | Wollens Avery House Liberty Road Roundswell Business Park Barnstaple Devon EX31 3TL

Accountants and tax advisers | Westcotts (SW) LLP Chartered Accountants 47 Boutport Street Barnstaple Devon EX31 1SQ

Auditors | Westcotts (SW) LLP Plym House 3 Longbridge Road Plymouth Marsh Mills Devon PL6 8LT

Pearce Construction (Barnstaple) Limited

Strategic Report for the Year Ended 30 April 2025

The directors present their strategic report for the year ended 30 April 2025.

Principal activity

The principal activity of the company is that of construction and residential development in the UK. There have not been any changes in the company's principal activities in the year under review and the directors are not aware of any likely major changes in the company's activities in the next year.

Fair review of the business

Key financial performance indicators are turnover and gross profit which can be seen in the Statement of Income and Retained Earnings. Given the straightforward nature of the company's operations, the directors do not believe further detail is required to explain the financial performance or position of the company. Turnover will fluctuate depending on the progress of its developments, unit sales and any contracts during the year.
Shareholders' funds decreased from £6,404,820 to £6,120,875. The company manages its operations on a divisional basis and as part of its Quality Management Procedures and Business Improvement Plan, measures performance and strives for continuous improvement.

Principal risks and uncertainties

Following the back-drop of fluctuations in the supply and pricing of materials and labour an eye on Government policies to drive growth will be needed to ensure fragile market stability is not disrupted, which is a continuing risk for the industry. The company is in-part reliant on the housing market for profitable activity but traditional contracting demand has strengthened during weaker housing demand and provided alternative work streams to off-set slower housing demand. The Company manages this risk by ensuring development activity is the product of preferred choice through high quality workmanship and materials and delivering in attractive locations. The supply of social housing contracts has disappointingly not recovered and Registered Provider’s remain inactive in driving schemes forward in the locality. Homes England are currently providing affordable housing additionality through the major house builders. In the contracting market we support our approved supply chain partners through prompt and fair payment. We maintain a strong balance sheet, provide added value services and maintain strong relationships with our repeat customers. With the housing demand currently subdued, the company continues to manage its reliance on housing demand through joint venture projects and commercial contracts. 2025-26 trading expectations are based on a similar number of unit sales to that achieved in 2024-25 coupled to an improved quantum of commercial contracting turnover.
Pearce Construction recognises its role in ESG and maintains a focus on ensuring we support our local economy and our local environment. Retro-fit still has yet to fulfil its potential but staff have been trained to service this sector and to assist its clients work towards their net zero goals.
Pearce Construction (Barnstaple) Ltd is an employee owned company (EOT) and our staff are committed to maintaining its strong reputation in our local market. Details on the number of employees (members) and related costs can be found in the notes to the accounts. The trading year ending April 2025 marked the completion of the first year of trading as an EOT. With the success in replacing housing turnover with profitable contracting supply the company was able to make its first member distribution benefitting all employees with member status.

Approved and authorised by the Board on 30 September 2025 and signed on its behalf by:

Pearce Construction (Barnstaple) Limited

Strategic Report for the Year Ended 30 April 2025 (continued)

R C Jeffs Director

Pearce Construction (Barnstaple) Limited

Directors' Report for the Year Ended 30 April 2025

The directors present their report and the financial statements for the year ended 30 April 2025.

Directors of the company

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

D M Parsons

R C Jeffs

P S Knox

N J Hopkins

M R Davis

Dividends

An interim dividend of £780,000 was paid during the year (2024: £364,000). The directors do not recommend the payment of a final dividend.

Financial instruments

Objectives and policies

The company's principal financial instruments comprise bank balances, bank overdrafts and loans (including CBILS), trade creditors and trade debtors.
The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

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

The liquidity risk is managed through the use of a bank overdraft and, at times, development funding (through the bank and joint venture partners) which ensures funding of work in progress against expected income from completed projects.
The company's bank loan facilities are detailed in note 17.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding (including retentions) for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Going concern

Whilst the outlook for the economy is uncertain, the company has sufficient financial resources and contracts with a number of customers and suppliers such that the Directors believe the company is well placed to manage its business risks successfully.
After making enquiries, the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Disclosure of information to the auditors

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

Pearce Construction (Barnstaple) Limited

Directors' Report for the Year Ended 30 April 2025 (continued)

Approved and authorised by the Board on 30 September 2025 and signed on its behalf by:

R C Jeffs Director

Pearce Construction (Barnstaple) Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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 apply them consistently;

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

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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.

Pearce Construction (Barnstaple) Limited

Independent Auditor's Report to the Members of Pearce Construction (Barnstaple) Limited

Opinion

We have audited the financial statements of Pearce Construction (Barnstaple) Limited (the 'company') for the year ended 30 April 2025, which comprise the Profit and Loss Account and Statement of Retained Earnings, Statement of Financial Position, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• | give a true and fair view of the state of the company's affairs as at 30 April 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 auditor 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 director's 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 original financial statements were authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Pearce Construction (Barnstaple) Limited

Independent Auditor's Report to the Members of Pearce Construction (Barnstaple) Limited (continued)

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

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

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 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor Responsibilities for the audit of the financial statements

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

Pearce Construction (Barnstaple) Limited

Independent Auditor's Report to the Members of Pearce Construction (Barnstaple) Limited (continued)

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• We identified areas of laws and regulations that could reasonable be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and other management, and inspection of the company's correspondence. We communicated identified laws and regulations throughout our team, and remained alert to any indications of non-compliance throughout the audit.
• The company is subject to laws and regulations that govern the preparation of the financial statements, including reporting legislation, and other companies legislation. The company is also subject to other laws and regulations where the consequences of non-compliance could have a material impact on the amounts or disclosures within the financial statements, including employment, anti-bribery, anti-money laundering and certain aspects of companies legislation.
• Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even through we have properly planned and performed our audit in accordance with the auditing standards. In any audit, there remains a higher risk of non-detection of irregularities as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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

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

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

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

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

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

Pearce Construction (Barnstaple) Limited

Independent Auditor's Report to the Members of Pearce Construction (Barnstaple) Limited (continued)

• | Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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.

......................................
Shona Godefroy (Senior Statutory Auditor)
For and on behalf of Westcotts (SW) LLP, Statutory Auditor
Plym House
3 Longbridge Road
Plymouth
Marsh Mills
Devon
PL6 8LT

1 October 2025

Pearce Construction (Barnstaple) Limited

Profit and Loss Account and Statement of Retained Earnings for the Year Ended 30 April 2025

| Note | 2025 £ | 2024 £
Turnover | 3 | 19,423,472 | 14,603,736
Cost of sales |  | (16,363,595) | (12,082,361)
Gross profit |  | 3,059,877 | 2,521,375
Administrative expenses |  | (2,284,254) | (2,270,975)
Other operating income | 4 | 7,648 | 4,440
Operating profit | 6 | 783,271 | 254,840
Interest payable and similar charges | 7 | (111,939) | (38,741)
Profit before tax |  | 671,332 | 216,099
Taxation | 11 | (175,277) | (76,653)
Profit for the financial year |  | 496,055 | 139,446
Retained earnings brought forward |  | 6,229,602 | 6,454,156
Dividends paid |  | (780,000) | (364,000)
Retained earnings carried forward |  | 5,945,657 | 6,229,602

Pearce Construction (Barnstaple) Limited

(Registration number: 00408163)
Statement of Financial Position as at 30 April 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Tangible assets | 12 | 1,261,982 | 1,267,100
Current assets |  |  |
Stocks | 13 | 8,543,223 | 9,173,366
Debtors | 14 | 3,254,933 | 1,536,370
Cash at bank and in hand |  | 554 | 527
|  | 11,798,710 | 10,710,263
Creditors: Amounts falling due within one year | 15 | (6,210,109) | (4,883,223)
Net current assets |  | 5,588,601 | 5,827,040
Total assets less current liabilities |  | 6,850,583 | 7,094,140
Creditors: Amounts falling due after more than one year | 15 | (476,843) | (442,194)
Provisions for liabilities | 17 | (252,865) | (247,126)
Net assets |  | 6,120,875 | 6,404,820
Capital and reserves |  |  |
Called up share capital |  | 152,253 | 152,253
Share premium reserve | 20 | 22,965 | 22,965
Profit and loss account | 20 | 5,945,657 | 6,229,602
Shareholders' funds |  | 6,120,875 | 6,404,820

Approved and authorised by the Board on 30 September 2025 and signed on its behalf by:

P S Knox Director

Pearce Construction (Barnstaple) Limited

Notes to the Financial Statements for the Year Ended 30 April 2025

1 | General information

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

The address of its registered office is:
Pearce House
Brannam Crescent
Roundswell Business Park
Barnstaple
Devon
EX31 3TD

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

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

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling which is the functional currency of the entity.

Summary of disclosure exemptions

The company meets the definition of a qualifying entity under FRS102 and has therefore taken advantage of the disclosure exemption available in relation to the presentation of a cash flow statement.

Going concern

Whilst the outlook for the economy is uncertain, the company has sufficient financial resources and contracts with a number of customers and suppliers such that the Directors believe the company is well placed to manage its business risks successfully.
After making enquiries, the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Pearce Construction (Barnstaple) Limited

Notes to the Financial Statements for the Year Ended 30 April 2025 (continued)

2 | Accounting policies (continued)

Key sources of estimation uncertainty

The company makes estimates and judgements concerning the future and the resulting estimates may, by definition, vary from the actual results. The Directors considered the critical accounting estimates and judgements used in the financial statements and concluded that the main areas of judgement are:
Recognition of profit on long term contracts:
Profit on long term contracts is taken as work is carried out if the final outcome can be assessed with reasonable certainty. This requires an accurate assessment of the stage of completion of each contract, calculated by appropriately qualified in-house specialists, as well as the estimated costs to complete.
Valuation of work in progress:
Work in progress reflects costs incurred to date, less amounts recognised as cost of sales (including any provisions for foreseeable losses). This is impacted by the profit on long term contracts as noted above, and any provision required against cost of developing residential property to reduce it to net realisable value. This requires an estimate of costs to complete and expected sales prices based on local market conditions.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
Turnover on long term contracts represents the sales value of work done in the period, including estimates in respect of amounts not invoiced.
Turnover and profit on residential property are recognised when the contract for the sale is completed.

Long term contracts

Profit on long term contracts is taken as work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs (labour, materials and other direct costs) as contract activity progresses. Turnover is calculated by independent valuation. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.

Tax

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

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

Pearce Construction (Barnstaple) Limited

Notes to the Financial Statements for the Year Ended 30 April 2025 (continued)

2 | Accounting policies (continued)

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

Tangible assets

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

Depreciation

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

Asset class | Depreciation method and rate
Freehold property | 2% straight line
Plant and machinery | 6-25% straight line
Motor vehicles | 25% straight line

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities

Stocks

Stock of land is stated at the lower of purchase cost and net realisable value. Options over the land are initially carried at cost and are amortised over the period of the option.
Work in progress is measured at the lower of cost and net realisable value.

Leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest charged is charged to the profit and loss account on a straight line basis.

Pearce Construction (Barnstaple) Limited

Notes to the Financial Statements for the Year Ended 30 April 2025 (continued)

2 | Accounting policies (continued)

Pension schemes

The company operates a money purchase pension scheme for certain employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.
The company has 1 employee who is a member of the Plumbing and Mechanical Services (UK) Pension Scheme. The scheme was closed to future accrual on 30 June 2019. This is a multi-employer defined benefit pension scheme, however it is not currently possible to estimate the share of assets and liabilities relating to the company's employees or the share of any recovery plan. Consequently the scheme is accounted for as a defined contribution scheme and pension contributions are charged to the profit and loss account when payable.

Financial instruments

Recognition and measurement
A financial asset or a financial liability is recognised only when the company becomes party to the contractual provisions of the instrument. The company holds the following financial assets and liabilities:
Short term trade and other debtors and creditors
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment (doubtful debts) are recognised in the profit and loss account before operating profit.
Bank loans
Bank loans are initially recorded at transaction price and subsequently measured at amortised cost using the effective interest method.

3 | Turnover

The analysis of the company's turnover for the year by market is as follows:

| 2025 £ | 2024 £
UK | 19,423,472 | 14,603,736

4 | Other operating income

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

| 2025 £ | 2024 £
Miscellaneous other operating income | 7,648 | 4,440

Pearce Construction (Barnstaple) Limited

Notes to the Financial Statements for the Year Ended 30 April 2025 (continued)

5 | Other gains and losses

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

| 2025 £ | 2024 £
Gain on disposal of tangible assets | 17,479 | 30,000

6 | Operating profit

Arrived at after charging/(crediting)

| 2025 £ | 2024 £
Depreciation expense | 106,379 | 96,870
Operating lease expense - plant and machinery | 100,376 | 98,932
Operating lease expense - other | 1,964 | 4,274
Profit on disposal of property, plant and equipment | (17,479) | (30,000)
Auditors remuneration | 24,150 | 23,000

7 | Interest payable and similar expenses

| 2025 £ | 2024 £
Interest on bank overdrafts and borrowings | 96,870 | 36,777
Interest on obligations under finance leases and hire purchase contracts | 15,069 | 1,964
| 111,939 | 38,741

Pearce Construction (Barnstaple) Limited

Notes to the Financial Statements for the Year Ended 30 April 2025 (continued)

8 | Staff costs

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

| 2025 £ | 2024 £
Wages and salaries | 3,147,717 | 2,977,535
Social security costs | 335,661 | 302,065
Other short-term employee benefits | 41,312 | 49,607
Pension costs, defined contribution scheme | 390,885 | 371,644
| 3,915,575 | 3,700,851

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

| 2025 No. | 2024 No.
Production | 53 | 55
Administration and support | 27 | 27
| 80 | 82

9 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 482,959 | 445,771
Contributions paid to money purchase schemes | 165,519 | 161,493
| 648,478 | 607,264

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

| 2025 No. | 2024 No.
Accruing benefits under money purchase pension scheme | 5 | 5

In respect of the highest paid director:

| 2025 £ | 2024 £
Remuneration | 129,969 | 117,513
Company contributions to money purchase pension schemes | 55,277 | 53,605

Pearce Construction (Barnstaple) Limited

Notes to the Financial Statements for the Year Ended 30 April 2025 (continued)

9 | Directors' remuneration (continued)

During the year the highest paid director received or was entitled to receive shares under a long term incentive scheme.

10 | Auditors' remuneration

| 2025 £ | 2024 £
Audit of the financial statements | 24,150 | 23,000

11 | Taxation

Tax charged/(credited) in the statement of comprehensive income

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax | 173,291 | 93,987
UK corporation tax adjustment to prior periods | (3,753) | (460)
| 169,538 | 93,527
Deferred taxation |  |
Arising from origination and reversal of timing differences | 5,739 | (16,874)
Tax expense in the income statement | 175,277 | 76,653

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

| 2025 £ | 2024 £
Profit before tax | 671,332 | 216,099
Corporation tax at standard rate | 167,833 | 54,025
Decrease in UK and foreign current tax from adjustment for prior periods | (3,753) | (460)
Effect of expense not deductible in determining taxable profit (tax loss) | 11,197 | 23,079
Deferred tax expense from unrecognised temporary difference from a prior period | - | 9
Total tax charge | 175,277 | 76,653

Pearce Construction (Barnstaple) Limited

Notes to the Financial Statements for the Year Ended 30 April 2025 (continued)

11 | Taxation (continued)

Deferred tax

Deferred tax assets and liabilities

2025 | Liability £
Excess of taxation allowances over depreciation of fixed assets | 68,602
Rolled over gains | 186,942
Other short term timing differences | (2,679)
| 252,865

2024 | Liability £
Excess of taxation allowances over depreciation of fixed assets | 62,863
Rolled over gains | 186,942
Other short term timing differences | (2,679)
| 247,126

12 | Tangible assets

| Freehold land and buildings £ | Plant and machinery £ | Motor vehicles £ | Total £
Cost or valuation
At 1 May 2024 | 1,592,402 | 740,808 | 97,481 | 2,430,691
Additions | - | 109,531 | - | 109,531
Disposals | - | (62,463) | (19,850) | (82,313)
At 30 April 2025 | 1,592,402 | 787,876 | 77,631 | 2,457,909
Depreciation
At 1 May 2024 | 449,690 | 639,379 | 74,522 | 1,163,591
Charge for the year | 27,960 | 69,574 | 8,845 | 106,379
Eliminated on disposal | - | (62,463) | (11,580) | (74,043)
At 30 April 2025 | 477,650 | 646,490 | 71,787 | 1,195,927
Carrying amount
At 30 April 2025 | 1,114,752 | 141,386 | 5,844 | 1,261,982
At 30 April 2024 | 1,142,712 | 101,429 | 22,959 | 1,267,100

Pearce Construction (Barnstaple) Limited

Notes to the Financial Statements for the Year Ended 30 April 2025 (continued)

12 | Tangible assets (continued)

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

| 2025 £ | 2024 £
Plant and machinery | 96,559 | 45,135

13 | Stocks

| 2025 £ | 2024 £
Raw materials and consumables | 15,251 | 13,979
Work in progress | 5,440,618 | 7,363,572
Land | 3,087,354 | 1,795,815
| 8,543,223 | 9,173,366

14 | Debtors

| 2025 £ | 2024 £
Trade debtors | 3,179,154 | 1,451,983
Prepayments | 75,779 | 84,387
| 3,254,933 | 1,536,370

Details of non-current trade and other debtors

£349,180 (2024: £137,681) of debtors is classified as non current.

15 | Creditors

| Note | 2025 £ | 2024 £
Due within one year |  |  |
Payments received on account |  | 1,905,906 | 292,298
Loans and borrowings | 16 | 659,793 | 1,672,406
Trade creditors |  | 1,465,003 | 1,374,431
Amounts due to group undertakings | 24 | 17,585 | 17,585
Corporation tax liability | 11 | 173,291 | 93,527
Social security and other taxes |  | 607,488 | 137,311
Other creditors |  | 35,356 | 37,513
Accruals |  | 1,345,687 | 1,258,152
|  | 6,210,109 | 4,883,223

Pearce Construction (Barnstaple) Limited

Notes to the Financial Statements for the Year Ended 30 April 2025 (continued)

15 | Creditors (continued)

| Note | 2025 £ | 2024 £
Due after one year |  |  |
Loans and borrowings | 16 | 476,843 | 442,194

16 | Loans and borrowings

Current loans and borrowings

| 2025 £ | 2024 £
Bank borrowings | 100,000 | 620,899
Bank overdrafts | 534,423 | 1,033,792
Hire purchase contracts | 25,370 | 17,715
| 659,793 | 1,672,406

Non-current loans and borrowings

| 2025 £ | 2024 £
Bank borrowings | 408,333 | 433,896
Hire purchase contracts | 68,510 | 8,298
| 476,843 | 442,194

During 2020, the company arranged a bank loan of £500,000 under the Coronavirus Business Interruption Loan Scheme (CBILS). Interest is charged at 2.09% over Bank of England base rate and the loan is repayable in monthly instalments over 5 years commencing July 2021. The loan is secured on the freehold property of the company.
On 29 April 2003, the company gave security in the form of an unlimited debenture incorporating a fixed and floating charge.
On 23 November 2023, the company granted a charge over land in respect of a further loan taken during the period.

Pearce Construction (Barnstaple) Limited

Notes to the Financial Statements for the Year Ended 30 April 2025 (continued)

17 | Provisions for liabilities

| Deferred tax £ | Total £
At 1 May 2024 | 247,126 | 247,126
Increase (decrease) in existing provisions | 5,739 | 5,739
At 30 April 2025 | 252,865 | 252,865

18 | Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £390,885 (2024 - £371,644).

19 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary of £0.10 each | 1,522,532 | 152,253 | 1,522,532 | 152,253

20 | Reserves

Profit and loss account

This reserve records retained earnings and accumulated losses.

21 | Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 25,371 | 15,751
Later than one year and not later than five years | 68,510 | 8,298
| 93,881 | 24,049

Pearce Construction (Barnstaple) Limited

Notes to the Financial Statements for the Year Ended 30 April 2025 (continued)

21 | Obligations under leases and hire purchase contracts (continued)

Finance lease liabilities are secured on the assets to which they relate.

Operating leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 3,787 | 4,131
Later than one year and not later than five years | - | 3,787
| 3,787 | 7,918

22 | Dividends

Interim dividends paid

|  | 2025 £ |  | 2024 £
Interim dividend of £0.5123 (2024 - £0.2391) per each Ordinary |  | 780,000 |  | 364,000

23 | Contingencies

The company had entered into an unlimited cross composite guarantee for the joint bank facility given to the group undertakings by Lloyds Bank plc. In addition, the company enters into performance bonds in the normal course of business. The directors expect no liability to arise in respect of these transactions.

24 | Related party transactions

Other transactions with directors

During the year sales amounting to £14,505 were made to the directors or their close family, or entities with a common director, under normal market terms. £Nil was owed to the company at the year end.
Sales of £Nil were made to a company with a common director (of which £Nil was outstanding at the year end), and purchases of £14,676 were made from a company with a common director (£Nil was outstanding at the year end).

25 | Parent and ultimate parent undertaking

The company's immediate parent is PCBL Limited, incorporated in England.
The ultimate controlling party is the PCB Employee Ownership Trust which acquired 100% of the company's immediate parent in April 2024. The PCB Employee Ownership Trust's interest is held as nominee by PCB (EOT) Limited.

Pearce Construction (Barnstaple) Limited

Notes to the Financial Statements for the Year Ended 30 April 2025 (continued)

25 | Parent and ultimate parent undertaking (continued)

The smallest and largest group consolidating the results of the company is PCBL Limited. These financial statements are available upon request from Companies House.