Company Registration No. SC052812 (Scotland)
WATSON-TOWERS (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
WATSON-TOWERS (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
N Watson
F Towers
Secretary
F Towers
Company number
SC052812
Registered office
Waverley Street
Coatbridge
Lanarkshire
ML5 2BE
Auditor
Johnston Carmichael LLP
227 West George Street
Glasgow
G2 2ND
WATSON-TOWERS (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group profit and loss account
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 30
WATSON-TOWERS (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -

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

Review of business

The group’s results for the year show a trading profit before tax of £2,920,958 (2024: £2,025,899). Turnover for the year was £23,977,292 compared to £17,181,095 for the year to 31 March 2024. Net assets of the group as at 31 March 2025 amounted to £5,798,484 (2024: £5,584,921).

The directors are of the opinion that the group has strong cash reserves and a substantial pipeline of work for 2025/ 2026 with a strategic focus on critical UK infrastructure projects. They anticipate continued growth for the group for the next Financial Year and an increase in activity levels for all divisions. The group expects to capitalise on available opportunities identified in current and new sectors to increase turnover and profit in the coming year.

Principal risks and uncertainties

The group is exposed to risks and uncertainties arising from its continued operations. The sectors in which the group operates are affected by specific industry prices and also general economic conditions.

The directors of the group manage these risks by a process of regular strategic reviews that analyse current and future market trends and assess potential threats. Strategies are then adopted that remove or minimise the impact of such risks. Over the past year, the company has chosen to derisk any market uncertainty by paying down its long-term debt.

The group acknowledges the risks associated with the general increase in operating costs and in particular the rising cost of key items such as wages, utilities and insurances. The group continually seeks to reduce these risks by adjusting its working practices to ensure the continuity of its operations and the wellbeing of all of its stakeholders.

Despite these challenges, the group remains in a strong financial position and continues to monitor cashflow and contracts continually.

Business Risk

The group recognises key business risks and continues to develop strategies to avoid or mitigate these risks. Included in these are the ongoing effects of Brexit and the continuing fluctuation of steel prices. The group mainly trades in the UK but does have access to a supply chain in Europe. The group has taken the necessary steps to ensure this supply chain remains accessible to ensure the operation can continue to use it when the opportunity arises.

Finance risk management objectives and policies

The group’s operations expose it to a variety of financial risks that include the effects of changes in credit risk, liquidity risk and interest rate risk. The group seeks to limit the adverse effects on the financial performance by monitoring levels of debt finance and related finance costs.

WATSON-TOWERS (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -

Credit risk

The group has implemented a policy that requires credit checks on potential customers, where sales will be made on credit, before the transaction takes place. The amount of exposure to any individual counterparty is subject to a limit which is regularly assessed by the directors. The group also has insurance cover in place over trade debtor balances.

Liquidity risk

The company aims to mitigate liquidity risk by managing cash generated by its operations efficiently. Any adjustment of credit terms with key suppliers is managed alongside customer payment terms to ensure the liquidity position of the company remains positive.

Interest rate cash flow risk

While the group has access to external debt, its exposure to interest rate risk is kept to a minimum. The directors will revisit the appropriateness of this policy should the group’s operations change in size or nature.

Health and Safety

The group is committed to achieving the highest possible standards in health and safety management and strives to make all its sites and offices safe working environments for employees, sub-contractors and customers alike.

Human Resources

The group regards its people as one of its most important resources. Recruitment and Retention of key staff is critical and there is a relatively low turnover of personnel. Utilising the knowledge and experience of these staff is vital to the group in order for it to serve customer requirements, meet contractual obligations and adhere to industry regulations.

Key performance indicators

The directors have identified the following key financial performance indicators:

| 2025 £ | 2024 £
Turnover | 23,977,292 | 17,181,095
Gross profit | 24% | 26%
Net assets | 5,798,484 | 5,584,921

On behalf of the board

N Watson
Director
12 November 2025
WATSON-TOWERS (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2025.

Principal activities

The principal activity of the company and group continued to be that of steel fabricators, erectors and stockists of steel products.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid by the group amounting to £1,909,000 (2024: £1,475,000). The directors do not recommend payment of a further dividend.

Directors

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

N Watson
F Towers
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Auditor

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

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.

WATSON-TOWERS (HOLDINGS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 4 -
Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the true group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and financial risk management objectives and policies.

Statement of disclosure to auditor

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.

On behalf of the board
N Watson
Director
12 November 2025
WATSON-TOWERS (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WATSON-TOWERS (HOLDINGS) LIMITED
- 5 -
Opinion

We have audited the financial statements of Watson-Towers (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Group Profit and Loss Account, Group Balance Sheet, Company Balance Sheet, Group Statement of Changes in Equity, Company Statement of Changes in Equity, Group 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 March 2025 and of the group's 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 group 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 and Financial Statements other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the Annual Report and Financial Statements. 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:

- T he information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- The Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

WATSON-TOWERS (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WATSON-TOWERS (HOLDINGS) LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report and the directors' r eport.

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.

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, set out on page 3, 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 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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 assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and the parent company and the sector in which it operates, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

- UK Generally Accepted Accounting Practice

- Companies Act 2006;

- Corporation Tax legislation;

- VAT legislation.

WATSON-TOWERS (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WATSON-TOWERS (HOLDINGS) LIMITED
- 7 -

Extent to which the audit is considered capable of detecting irregularities, including fraud (continued)

We gained an understanding of how the group and the parent company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of relevant correspondence with regulatory bodies.

We assessed the susceptibility of the group’s and parent company's financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to:

- Management override of controls.

- Revenue recognition.

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

- Reviewing the level of and reasoning behind the group’s procurement of legal and professional services;

- Performing audit procedures over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing judgements made by management in their calculation of accounting estimates for potential management bias;

- Performing audit procedures over revenue to ensure that revenue is accurate and complete, and has been recorded in the correct accounts period in line with contractual agreements;

- Completion of appropriate checklists and use of our experience to assess the group's compliance with the Companies Act 2006; and

- Agreement of the financial statement disclosures to supporting documentation.

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that 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 intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed 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.

Use of our report

This report is made solely to the parent 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 group’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 group and the group’s members as a body, for our audit work, for this report, or for the opinions we have formed.

James Hamilton (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
12 November 2025
Statutory Auditor
227 West George Street
Glasgow
G2 2ND
WATSON-TOWERS (HOLDINGS) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2025
- 8 -
2025
2024
Notes
£
£
Turnover
3
23,977,292
17,181,095
Cost of sales
(18,253,640)
(12,654,867)
Gross profit
5,723,652
4,526,228
Distribution costs
(53,351)
(61,347)
Administrative expenses
(3,188,985)
(2,769,272)
Other operating income
428,060
371,749
Operating profit
4
2,909,376
2,067,358
Interest receivable and similar income
8
27,862
1,975
Interest payable and similar expenses
9
(16,280)
(43,434)
Profit before taxation
2,920,958
2,025,899
Taxation
10
(798,395)
(167,953)
Profit for the financial year
24
2,122,563
1,857,946
Total comprehensive income for the year
2,122,563
1,857,946
Profit for the financial year is attributable to:
- Owners of the parent company
1,995,004
1,766,585
- Non-controlling interests
127,559
91,361
2,122,563
1,857,946

The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.

WATSON-TOWERS (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2025
31 March 2025
- 9 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
13
3,166,286
2,193,965
Current assets
Stocks
16
1,364,074
1,142,256
Debtors
17
4,828,308
3,976,523
Cash at bank and in hand
3,038,382
2,809,699
9,230,764
7,928,478
Creditors: amounts falling due within one year
18
(5,911,894)
(4,184,810)
Net current assets
3,318,870
3,743,668
Total assets less current liabilities
6,485,156
5,937,633
Creditors: amounts falling due after more than one year
19
-
(6,757)
Provisions for liabilities
21
(686,672)
(345,955)
Net assets
5,798,484
5,584,921
Capital and reserves
Called up share capital
23
200
200
Profit and loss reserves
24
5,798,284
5,584,721
Total equity
5,798,484
5,584,921
The financial statements were approved by the board of directors and authorised for issue on 12 November 2025 and are signed on its behalf by:
12 November 2025
N Watson
F Towers
Director
Director
WATSON-TOWERS (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2025
31 March 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,725,072
1,108,186
Investments
14
113,441
113,441
1,838,513
1,221,627
Current assets
Debtors
17
1,467,249
1,208,619
Cash at bank and in hand
113,287
168,811
1,580,536
1,377,430
Creditors: amounts falling due within one year
18
(1,864,052)
(1,332,558)
Net current (liabilities)/assets
(283,516)
44,872
Total assets less current liabilities
1,554,997
1,266,499
Provisions for liabilities
Deferred tax liability
21
369,858
113,299
(369,858)
(113,299)
Net assets
1,185,139
1,153,200
Capital and reserves
Called up share capital
23
200
200
Profit and loss reserves
24
1,184,939
1,153,000
Total equity
1,185,139
1,153,200

As permitted by s408 Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s profit for the year was £1,531,939 (2024: £1,502,611 profit).

The financial statements were approved by the board of directors and authorised for issue on 12 November 2025 and are signed on its behalf by:
12 November 2025
N Watson
F Towers
Director
Director
Company Registration No. SC052812
WATSON-TOWERS (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 11 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
Balance at 1 April 2023
200
5,384,775
5,384,975
-
5,384,975
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
1,766,585
1,766,585
91,361
1,857,946
Dividends
-
(1,475,000)
(1,475,000)
(183,000)
(1,658,000)
Transfers
-
(91,639)
(91,639)
91,639
-
Balance at 31 March 2024
200
5,584,721
5,584,921
-
0
5,584,921
Year ended 31 March 2025:
Profit and total comprehensive income for the year
-
1,995,004
1,995,004
127,559
2,122,563
Dividends
-
(1,500,000)
(1,500,000)
(409,000)
(1,909,000)
Transfers
-
(281,441)
(281,441)
281,441
-
Balance at 31 March 2025
200
5,798,284
5,798,484
-
0
5,798,484
WATSON-TOWERS (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2023
200
1,125,389
1,125,589
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
1,502,611
1,502,611
Dividends
-
(1,475,000)
(1,475,000)
Balance at 31 March 2024
200
1,153,000
1,153,200
Year ended 31 March 2025:
Profit and total comprehensive income for the year
-
1,531,939
1,531,939
Dividends
-
(1,500,000)
(1,500,000)
Balance at 31 March 2025
200
1,184,939
1,185,139
WATSON-TOWERS (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
- 13 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
3,792,711
2,271,053
Interest paid
(16,280)
(43,434)
Income taxes (paid)/refunded
(123,201)
230,439
Net cash inflow from operating activities
3,653,230
2,458,058
Investing activities
Purchase of tangible fixed assets
(1,587,641)
(767,298)
Proceeds on disposal of tangible fixed assets
98,846
740,113
Receipts arising from loans made
-
2,015
Interest received
27,862
1,975
Net cash used in investing activities
(1,460,933)
(23,195)
Financing activities
Repayment of borrowings
-
(3,228)
Repayment of bank loans
-
(526,531)
Payment of finance leases obligations
(54,614)
(168,103)
Dividends paid to equity shareholders
(1,500,000)
(1,475,000)
Dividends paid to non-controlling interests
(409,000)
(183,000)
Net cash used in financing activities
(1,963,614)
(2,355,862)
Net increase in cash and cash equivalents
228,683
79,001
Cash and cash equivalents at beginning of year
2,809,699
2,730,698
Cash and cash equivalents at end of year
3,038,382
2,809,699
WATSON-TOWERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 14 -
1
Accounting policies
Company information

Watson-Towers (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Waverley Street, Coatbridge, Lanarkshire, ML5 2BE.

The group consists of Watson-Towers (Holdings) Limited and all of its subsidiaries.

1.1
Accounting convention

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 a mounts 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.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements (where applicable):

- Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;

- Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash f low and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.

1.2
Business combinations

In the parent company financial statements, t he 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. I nvestments 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.

WATSON-TOWERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Watson-Towers (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries).

All financial statements are made up to 31 March 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 g roup.

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.

1.4
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 normal operations for the foreseeable future. In assessing the ability of the company to continue trading as a going concern, the directors have prepared detailed cash flow projections cover a period of at least 12 months from the date of authorising the financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in steel fabrication and erecting, 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.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

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 20 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.

1.7
Tangible fixed assets

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

WATSON-TOWERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 16 -

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

Plant and equipment
15% - 25% on reducing balance
Fixtures and fittings
15% on reducing balance
Computers
33% on cost
Motor vehicles
25% on reducing balance

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.

1.8
Fixed asset investments

Equity in vest ments 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.

I n the parent company financial statements, investments in subsidiaries 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.

1.9
Impairment of fixed assets

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.

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 the profit and loss account.

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 the profit and loss account.

1.10
Stocks

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.

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 the profit and loss account. Reversals of impairment losses are also recognised in the profit and loss account.

WATSON-TOWERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 17 -
1.11
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

1.13
Financial instruments

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

Basic financial assets, which include certain 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 m ethod 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.

WATSON-TOWERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 18 -
Impairment of financial assets

Financial assets 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 the profit and loss account.

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 the profit and loss account.

Derecognition of financial assets

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.

Classification of financial liabilities

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

Basic financial liabilities, including certain creditors, bank loans and loans from fellow group companies, 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 receipts 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.

Derecognition of financial liabilities

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

1.14
Equity instruments

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.

WATSON-TOWERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 19 -
1.15
Taxation

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

Current 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. The Research and Development Expenditure Credit is accounted for as other income.

Deferred tax

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.

1.16
Employee benefits

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.

1.17
Retirement benefits

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

1.18
Leases

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 asset's 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 the profit and loss account 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 lease d asset are consumed.

WATSON-TOWERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 20 -

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in the profit and loss account.

2
Judgements and key sources of estimation uncertainty

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Amounts recoverable on contracts

Profit recognition and amounts recoverable on contracts require the directors to exercise judgements with regard to the outcome of contracts and the recoverability of contract costs. In doing so, the directors consider the progress of each individual contract by reference to the phase of the contract or the stage of completion. Profit is only recognised when the directors believe the outcome of the contract can be measured reliably.

The carrying value of gross amounts owed by contract customers is outlined at note 17.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful lives of tangible assets

The estimated useful lives of assets are outlined in note 1.7. Useful lives have been assessed based on historical experience and the periods over which management believe future economic benefits to be derived.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2025
2024
£
£
Turnover analysed by class of business
Construction services
23,977,292
17,181,095
WATSON-TOWERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
3
Turnover and other revenue
(Continued)
- 21 -
2025
2024
£
£
Other significant revenue
Interest income
27,862
1,975
Sundry income
206,562
286,792
Rental income
15,000
84,957

The analysis of turnover by geographical market has not been provided as, in the opinion of the directors, such disclosure would be seriously prejudicial to the interests of the group.

4
Operating profit
2025
2024
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
532,904
424,982
Depreciation of tangible fixed assets held under finance leases
-
43,264
Profit on disposal of tangible fixed assets
(16,430)
(15,061)
Operating lease charges
38,896
45,783
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,500
4,500
Audit of the financial statements of the company's subsidiaries
20,250
18,500
25,750
23,000
6
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Directors
3
3
2
2
Office and administration
47
43
-
-
Production
114
100
-
-
Total
164
146
2
2
WATSON-TOWERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
6
Employees
(Continued)
- 22 -

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
7,746,587
6,076,369
-
0
-
0
Social security costs
758,509
598,667
-
-
Pension costs
303,266
231,434
-
0
-
0
8,808,362
6,906,470
-
0
-
0
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
26,000
36,000
Company pension contributions to defined contribution schemes
-
37,983
26,000
73,983

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2024 - 2).

8
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
27,862
1,975
9
Interest payable and similar expenses
2025
2024
£
£
Interest on bank overdrafts and loans
318
36,074
Interest on finance leases and hire purchase contracts
15,962
7,360
Total finance costs
16,280
43,434
WATSON-TOWERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 23 -
10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
221,252
135,900
Adjustments in respect of prior periods
622
-
0
Group tax relief
235,804
-
0
Total current tax
457,678
135,900
Deferred tax
Origination and reversal of timing differences
300,790
32,053
Adjustment in respect of prior periods
39,927
-
0
Total deferred tax
340,717
32,053
Total tax charge
798,395
167,953

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
2,920,958
2,025,899
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
730,240
506,475
Tax effect of expenses that are not deductible in determining taxable profit
26,063
14,402
Tax effect of income not taxable in determining taxable profit
-
0
(22,369)
Tax effect of utilisation of tax losses not previously recognised
-
0
(23,852)
Adjustments in respect of prior years
622
-
0
Group relief
-
0
(49,632)
Deferred tax adjustments in respect of prior years
39,927
-
0
Fixed asset differences
1,543
14,690
Payment/(Receipt) for group relief
-
0
49,633
Additional deduction for R&D tax credit
-
0
(313,968)
R&D credit
-
(7,426)
Taxation charge
798,395
167,953
11
Dividends
2025
2024
Recognised as distributions to equity holders of the company:
£
£
Final paid
1,500,000
1,475,000
WATSON-TOWERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 24 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2024 and 31 March 2025
67,600
Amortisation and impairment
At 1 April 2024 and 31 March 2025
67,600
Carrying amount
At 31 March 2025
-
0
At 31 March 2024
-
0
The company had no intangible fixed assets at 31 March 2025 or 31 March 2024.
13
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2024
4,563,408
205,300
765,013
5,533,721
Additions
1,364,014
3,780
219,847
1,587,641
Disposals
-
0
-
0
(214,332)
(214,332)
At 31 March 2025
5,927,422
209,080
770,528
6,907,030
Depreciation and impairment
At 1 April 2024
2,833,104
190,065
316,587
3,339,756
Depreciation charged in the year
402,937
3,458
126,509
532,904
Eliminated in respect of disposals
-
0
-
0
(131,916)
(131,916)
At 31 March 2025
3,236,041
193,523
311,180
3,740,744
Carrying amount
At 31 March 2025
2,691,381
15,557
459,348
3,166,286
At 31 March 2024
1,740,312
15,235
448,426
2,193,965
WATSON-TOWERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
13
Tangible fixed assets
(Continued)
- 25 -
Company
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2024
2,901,808
134,255
231,212
3,267,275
Additions
892,745
-
0
-
0
892,745
Disposals
-
0
-
0
(123,394)
(123,394)
At 31 March 2025
3,794,553
134,255
107,818
4,036,626
Depreciation and impairment
At 1 April 2024
1,945,942
131,510
81,637
2,159,089
Depreciation charged in the year
188,508
412
32,789
221,709
Eliminated in respect of disposals
-
0
-
0
(69,244)
(69,244)
At 31 March 2025
2,134,450
131,922
45,182
2,311,554
Carrying amount
At 31 March 2025
1,660,103
2,333
62,636
1,725,072
At 31 March 2024
955,866
2,745
149,575
1,108,186

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

Group
Company
2025
2024
2025
2024
£
£
£
£
Motor vehicles
-
0
122,652
-
0
-
0
14
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
113,441
113,441
WATSON-TOWERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
14
Fixed asset investments
(Continued)
- 26 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2024 and 31 March 2025
113,441
Carrying amount
At 31 March 2025
113,441
At 31 March 2024
113,441
15
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Cairnhill Structures Limited
See 1 below
Ordinary
95.00
Cairnhill Framing Systems Limited
See 1 below
Ordinary
100.00
Watson-Towers Limited
See 1 below
Ordinary
95.00
Cairnhill Structures (UK) Limited
See 2 below
Ordinary
100.00

1 - Waverley Street, Coatbridge, Lanarkshire, Scotland, ML5 2BE

2 - First Floor, Templeback, 10 Temple Back, Bristol, United Kingdom, BS1 6FL

16
Stocks
Group
Company
2025
2024
2025
2024
£
£
£
£
Raw materials and consumables
1,364,074
1,142,256
-
-
17
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,656,307
2,186,009
-
0
-
0
Gross amounts owed by contract customers
702,744
1,109,789
-
0
-
0
Corporation tax recoverable
-
0
103,581
29,401
-
0
Amounts owed by group undertakings
-
-
1,345,490
1,117,261
Other debtors
193,400
297,475
7,424
-
0
Prepayments and accrued income
275,857
279,669
84,934
91,358
4,828,308
3,976,523
1,467,249
1,208,619
WATSON-TOWERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 27 -
18
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Obligations under finance leases
20
-
0
47,857
-
0
8,333
Payments received on account
2,460,331
1,512,734
-
0
-
0
Trade creditors
2,146,340
1,815,097
149,570
77,690
Amounts due to group undertakings
-
0
-
0
1,713,278
1,240,112
Corporation tax payable
250,608
19,712
-
0
-
0
Other taxation and social security
444,864
462,488
-
4,559
Accruals and deferred income
609,751
326,922
1,204
1,864
5,911,894
4,184,810
1,864,052
1,332,558

Obligations under finance leases are secured against the assets concerned.

19
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Obligations under finance leases
20
-
0
6,757
-
0
-
0

Obligations under finance leases are secured against the assets concerned.

20
Finance lease obligations
Group
Company
2025
2024
2025
2024
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
-
0
47,857
-
0
8,333
In two to five years
-
0
6,757
-
0
-
0
-
54,614
-
8,333

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. Finance leases are secured against the assets to which they relate.

WATSON-TOWERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 28 -
21
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2025
2024
Group
£
£
Accelerated capital allowances
691,365
429,692
Capital gains
(753)
-
Losses and other deductions
-
(75,607)
Short term timing differences
(3,940)
(8,130)
686,672
345,955
Liabilities
Liabilities
2025
2024
Company
£
£
Accelerated capital allowances
369,858
188,906
Losses and other deductions
-
(75,607)
369,858
113,299
Group
Company
2025
2025
Movements in the year:
£
£
Liability at 1 April 2024
345,955
113,299
Charge to profit or loss
340,717
256,559
Liability at 31 March 2025
686,672
369,858

T he deferred tax liability set out above is not expected to reverse in the next 12 months and relates to accelerated capital allowances, losses and chargeable gains.

22
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
303,266
231,434

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.

WATSON-TOWERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 29 -
23
Share capital
Group and Company
2025
2024
Ordinary share capital
£
£
Issued and fully paid
78 Ordinary A shares of £1 each
78
78
2 Ordinary B shares of £1 each
2
2
78 Ordinary C shares of £1 each
78
78
2 Ordinary D shares of £1 each
2
2
20 Ordinary E shares of £1 each
20
20
20 Ordinary F shares of £1 each
20
20
200
200

All share classes are ranked pari passu in all respects.

24
Reserves
Profit and loss reserves

Profit and loss reserves represent accumulated comprehensive income for the year and prior periods less dividends paid.

25
Directors' transactions

Dividends totalling £1,909,000 (2024: £1,475,000) were approved in the year, payable in respect of shares ultimately held by the company's directors.

26
Related party transactions
Transactions with related parties

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

Sale of goods
Purchase of goods
2025
2024
2025
2024
£
£
£
£
Company
Non wholly owned companies
647,616
102,322
46,842
425,193

At the reporting date, the balance owed to the company from non wholly owned group entities was £1,345,490 (2024: £1,117,261) and amounts owed to non wholly owned group entities was £1,713,278 (2024: £1,240,112).

WATSON-TOWERS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 30 -
27
Cash generated from group operations
2025
2024
£
£
Profit for the year after tax
2,122,563
1,857,946
Adjustments for:
Taxation charged
798,395
167,953
Finance costs
16,280
43,434
Investment income
(27,862)
(1,975)
Gain on disposal of tangible fixed assets
(16,430)
(15,061)
Depreciation and impairment of tangible fixed assets
532,904
468,246
Movements in working capital:
Increase in stocks
(221,818)
(65,963)
Increase in debtors
(955,366)
(250,421)
Increase in creditors
1,544,045
66,894
Cash generated from operations
3,792,711
2,271,053
28
Analysis of changes in net funds - group
1 April 2024
Cash flows
31 March 2025
£
£
£
Cash at bank and in hand
2,809,699
228,683
3,038,382
Obligations under finance leases
(54,614)
54,614
-
2,755,085
283,297
3,038,382
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