Company Registration No. SC071351 (Scotland)
CAIRNHILL STRUCTURES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
CAIRNHILL STRUCTURES LIMITED
COMPANY INFORMATION
Directors
N Watson
F Towers
S Hendry
Company number
SC071351
Registered office
Waverley Street
Coatbridge
Lanarkshire
ML5 2BE
Auditor
Johnston Carmichael LLP
227 West George Street
Glasgow
G2 2ND
CAIRNHILL STRUCTURES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
CAIRNHILL STRUCTURES 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 company's result for the year shows a trading profit before tax of £2,896,218 (2024: £1,873,799). Turnover for the year was £22,983,237 compared to £15,197,171 for the year to 31 March 2024. Net assets of the company as at 31 March 2025 amounted to £3,919,314 (2024: £3,764,154).

The directors are of the opinion that the company 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 company 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 company is exposed to risks and uncertainties arising from its continued operations. The sectors in which the company operate are affected by specific industry prices and also general economic conditions.

The directors of the company 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 company 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 company continually seeks to reduce these risks by reviewing its working practices to ensure the continuity of its operations and the wellbeing of all of its stakeholders. Despite these challenges, the company remains in a strong financial position and continues to monitor cashflow and contract performance.

Business Risk

The company 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 company mainly trades in the UK but does retain access to a supply chain throughout Europe. The company 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 company'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 company seeks to limit the adverse effects on the financial performance by monitoring levels of debt finance and related finance costs.

Credit risk

The company 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 company 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 company 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 company's operations change in size or nature

Health and Safety

The company 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.

CAIRNHILL STRUCTURES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -

Human Resources

The company 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 company 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

T urnover £22,983,237 £15,197,171

Gross profit 22% 24%

Net assets £3,919,314 £3,764,154

On behalf of the board

N Watson
Director
12 November 2025
CAIRNHILL STRUCTURES 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 continued to be that of steel fabrications and erectors.

Results and dividends

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

Ordinary dividends were paid or declared a mounting to £1,959,000 (2024: £1,633,000). 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
S Hendry
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 strategic report, directors' 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 the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

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

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company'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.

CAIRNHILL STRUCTURES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 4 -
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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
N Watson
Director
12 November 2025
CAIRNHILL STRUCTURES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAIRNHILL STRUCTURES LIMITED
- 5 -
Opinion

We have audited the financial statements of Cairnhill Structures Limited (the 'company') for the year ended 31 March 2025 which comprise the P rofit and L oss A ccount, the B alance S heet, the S tatement of C hanges in E quity 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 company's affairs as at 31 March 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The 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:

- the information given in the S trategic R eport and the Directors' R eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

CAIRNHILL STRUCTURES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CAIRNHILL STRUCTURES LIMITED
- 6 -
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 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, 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 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 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's 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 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.

CAIRNHILL STRUCTURES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CAIRNHILL STRUCTURES LIMITED
- 7 -

Extent the audit was considered capable of detecting irregularities, including fraud (continued)

We gained an understanding of how the 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.

We assessed the susceptibility of the 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 ris k. 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 company’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 company'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 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.

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
CAIRNHILL STRUCTURES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2025
- 8 -
2025
2024
Notes
£
£
Turnover
3
22,983,237
15,197,171
Cost of sales
(17,936,914)
(11,486,127)
Gross profit
5,046,323
3,711,044
Administrative expenses
(2,433,181)
(1,869,240)
Other operating income
258,750
71,986
Operating profit
4
2,871,892
1,913,790
Interest receivable and similar income
7
27,487
-
0
Interest payable and similar expenses
8
(3,161)
(39,991)
Profit before taxation
2,896,218
1,873,799
Tax on profit
9
(782,058)
(158,641)
Profit for the financial year
2,114,160
1,715,158

The profit and loss account has been prepared on the basis that all operations are continuing operations.

There is no other comprehensive income in the current or prior year.

CAIRNHILL STRUCTURES LIMITED
BALANCE SHEET
AS AT
31 MARCH 2025
31 March 2025
- 9 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,219,075
840,936
Current assets
Debtors
12
5,526,408
4,454,247
Cash at bank and in hand
2,722,399
2,380,726
8,248,807
6,834,973
Creditors: amounts falling due within one year
13
(5,280,033)
(3,725,446)
Net current assets
2,968,774
3,109,527
Total assets less current liabilities
4,187,849
3,950,463
Creditors: amounts falling due after more than one year
14
-
0
(6,757)
Provisions for liabilities
Deferred tax liability
16
268,535
179,552
(268,535)
(179,552)
Net assets
3,919,314
3,764,154
Capital and reserves
Called up share capital
18
6,660
6,660
Profit and loss reserves
19
3,912,654
3,757,494
Total equity
3,919,314
3,764,154
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:
N Watson
F Towers
Director
Director
Company Registration No. SC071351
CAIRNHILL STRUCTURES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2023
6,660
3,675,336
3,681,996
Year ended 31 March 2024:
Profit and total comprehensive income for the year
19
-
1,715,158
1,715,158
Dividends
10
-
(1,633,000)
(1,633,000)
Balance at 31 March 2024
6,660
3,757,494
3,764,154
Year ended 31 March 2025:
Profit and total comprehensive income for the year
19
-
2,114,160
2,114,160
Dividends
10
-
(1,959,000)
(1,959,000)
Balance at 31 March 2025
6,660
3,912,654
3,919,314
CAIRNHILL STRUCTURES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 11 -
1
Accounting policies
Company information

Cairnhill Structures Limited is a private company limited by shares incorporated in Scotland. The registered office is Waverley Street, Coatbridge, Lanarkshire, ML5 2BE.

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 are set out below.

This 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. T he company has therefore taken advantage of e xemptions from the following disclosure requirements:

- 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.

The financial statements of the company are consolidated in the financial statements of Watson-Towers (Holdings) Limited. These consolidated financial statements are available from its registered office, Waverley Street, Coatbridge, ML5 2BE.

1.2
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.true Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

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

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recover ed.

CAIRNHILL STRUCTURES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 12 -
1.4
Tangible fixed assets

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

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 machinery
20% on reducing balance
Fixtures, fittings & equipment
15% on reducing balance
Computer equipment
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 credited or charged to the profit and loss account.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

1.6
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.

1.7
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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.

CAIRNHILL STRUCTURES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 13 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

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

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 company 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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts 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 company’s contractual obligations expire or are discharged or cancelled.

1.8
Equity instruments

Equity instruments issued by the company 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 company.

1.9
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 company’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.

CAIRNHILL STRUCTURES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 14 -
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 when the company has 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.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

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.

1.11
Retirement benefits

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

1.12
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 profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease d asset are consumed.

1.13
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 profit or loss.

CAIRNHILL STRUCTURES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 15 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’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 judgments 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 sta g e of completion. Profit is only recognised when the directors believe the outcome of the contract can be measured reliably.

3
Turnover

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

2025
2024
£
£
Turnover analysed by class of business
Steel fabrication and installation
22,983,237
15,197,171
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
12,875
9,500
Depreciation of owned tangible fixed assets
258,337
160,145
Depreciation of tangible fixed assets held under finance leases
-
43,264
(Profit)/loss on disposal of tangible fixed assets
(17,942)
28,226
Operating lease charges
142,276
117,783
CAIRNHILL STRUCTURES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 16 -
5
Employees

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

2025
2024
Number
Number
Directors
3
3
Office and administration
38
34
Production
92
78
Total
133
115

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
6,779,862
5,048,035
Social security costs
635,719
471,796
Pension costs
246,034
181,304
7,661,615
5,701,135
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
13,000
10,000
Company pension contributions to defined contribution schemes
12,000
26,630
25,000
36,630

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).

7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
27,487
-
0
CAIRNHILL STRUCTURES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 17 -
8
Interest payable and similar expenses
2025
2024
£
£
Interest on bank overdrafts and loans
257
35,972
Interest on finance leases and hire purchase contracts
2,904
4,019
3,161
39,991
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
457,056
116,188
Adjustments in respect of prior periods
30,787
-
0
Group tax relief
205,232
6,847
Total current tax
693,075
123,035
Deferred tax
Origination and reversal of timing differences
84,740
35,606
Adjustment in respect of prior periods
4,243
-
0
Total deferred tax
88,983
35,606
Total tax charge
782,058
158,641

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
2,896,218
1,873,799
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
724,055
468,450
Tax effect of expenses that are not deductible in determining taxable profit
21,430
9,480
Adjustments in respect of prior years
30,787
-
0
Deferred tax adjustments in respect of prior years
4,243
-
0
Fixed asset differences
1,543
2,040
Additional deduction for R&D expenditure
-
0
(313,903)
R&D credit
-
0
(7,426)
Taxation charge for the year
782,058
158,641
CAIRNHILL STRUCTURES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 18 -
10
Dividends
2025
2024
£
£
Final declared
1,550,000
1,450,000
Interim paid
409,000
183,000
1,959,000
1,633,000
11
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2024
968,354
75,082
321,859
513,920
1,879,215
Additions
373,818
3,780
67,297
219,847
664,742
Disposals
-
0
-
0
-
0
(90,938)
(90,938)
At 31 March 2025
1,342,172
78,862
389,156
642,829
2,453,019
Depreciation and impairment
At 1 April 2024
537,893
58,554
226,763
215,069
1,038,279
Depreciation charged in the year
116,083
3,046
45,488
93,720
258,337
Eliminated in respect of disposals
-
0
-
0
-
0
(62,672)
(62,672)
At 31 March 2025
653,976
61,600
272,251
246,117
1,233,944
Carrying amount
At 31 March 2025
688,196
17,262
116,905
396,712
1,219,075
At 31 March 2024
430,461
16,528
95,096
298,851
840,936

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

All assets held under finance leases or hire purchase contracts were disposed of during the year.

2025
2024
£
£
Motor vehicles
-
0
122,652

CAIRNHILL STRUCTURES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 19 -
12
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
3,030,130
1,572,864
Gross amounts owed by contract customers
702,744
1,109,789
Corporation tax recoverable
-
0
103,581
Amounts owed by group undertakings
1,538,618
1,240,113
Other debtors
143,937
294,942
Prepayments and accrued income
110,979
132,958
5,526,408
4,454,247

Amounts due from group undertakings are interest free and payable on demand.

13
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Obligations under finance leases
15
-
0
39,524
Payments received on account
2,460,331
1,512,734
Trade creditors
1,473,227
1,225,756
Amounts owed to group undertakings
249,252
397,200
Corporation tax
280,773
-
0
Other taxation and social security
251,526
301,313
Accruals and deferred income
564,924
248,919
5,280,033
3,725,446

Amounts owed to group undertakings are interest free and payable on demand.

14
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Obligations under finance leases
15
-
0
6,757
CAIRNHILL STRUCTURES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 20 -
15
Finance lease obligations
2025
2024
Future minimum lease payments due under finance leases:
£
£
Within one year
-
0
39,524
In two to five years
-
0
6,757
-
0
46,281

All finance leases held in the prior year were disposed of during the year to March 2025.

Finance lease payments in the prior year represent rentals payable by the company for certain items of plant and machinery and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. Obligations under finance leases are secured on the assets being financed. Finance leases all have contract lengths of 2 or 3 years when undertaken. Average remaining length is less than 1 year.

16
Deferred taxation

Deferred tax assets and liabilities are offset where the 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
Balances:
£
£
ACAs
272,475
187,682
Short term timing differences
(3,940)
(8,130)
268,535
179,552
2025
Movements in the year:
£
Liability at 1 April 2024
179,552
Charge to profit or loss
88,983
Liability at 31 March 2025
268,535

T he deferred tax liability set out above relates to accelerated capital allowances and is not expected to reverse within 12 months.

CAIRNHILL STRUCTURES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 21 -
17
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
246,034
181,304

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions totalling £35,221 (2024: £29,621) were payable to the plan at the reporting date and are included in creditors.

18
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
6,660
6,660
6,660
6,660

Each Ordinary share carries voting rights and rights to dividends and capital distribution.

19
Profit and loss reserves

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

20
Related party transactions

At the reporting date, the balance owed from non wholly owned entities was £1,538,618 (2024: £1,240,113) and amounts owed to non wholly owned entities was £249,252 (2024: £397,200).

Sales
Purchases
2025
2024
2025
2024
£
£
£
£
Non wholly owned entities
109,739
620,162
2,640,188
1,794,667
21
Directors' transactions

Dividends totalling £1,959,000 (2024: £1,663,000) were paid or declared in the year in respect of shares ultimately held by the company's directors.

22
Ultimate controlling party

The ultimate parent company and the smallest and largest group in which the results are consolidated is Watson-Towers (Holdings) Limited. The registered office of Watson-Towers (Holdings) Limited is Waverley Street, Coatbridge, ML5 2BE. The accounts of Watson-Towers (Holdings) Limited can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ or the Companies House website: https://www.gov.uk/government/organisations/companies-house.

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