REGISTERED NUMBER: 06444027 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 28th February 2025

for

DAC Group Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Consolidated Income Statement

11

Consolidated Other Comprehensive Income

12

Consolidated Balance Sheet

13

Company Balance Sheet

15

Consolidated Statement of Changes in Equity

17

Company Statement of Changes in Equity

18

Consolidated Cash Flow Statement

19

Notes to the Consolidated Cash Flow Statement

20

Notes to the Consolidated Financial Statements

22

DIRECTORS:

Mr K Lord BSc

Mr C Peterson BSc

SECRETARY:

Mr C Peterson BSc

REGISTERED OFFICE:

Ground Floor

Southway House

29 Southway

Colchester

Essex

CO2 7BA

BUSINESS ADDRESS:

Level One, Gun Hill Trading Estate

Ipswich Road

Dedham

Colchester

Essex

CO7 6HR

REGISTERED NUMBER:

06444027 (England and Wales)

The directors present their strategic report of the company and the group for the year ended 28th February 2025.

REVIEW OF BUSINESS

Although we have made a profit it is a smaller percentage than we would have initially forecast the directors are satisfied that the results are a fair representation on the years trading.

Although the new build housing market in which we operate is relatively stable compared to previous years the high interest rates, consumer confidence and uncertainty as well as continued increasing cost of living has left it stagnant, and this directly effects our level of turnover and ultimately profit margins.

As last year the lack of change or introduction of any incentive scheme for first time buyers adds to the frustrations and fragility of the market.

We have adapted as a company to mitigate these issues by keeping tight control on stock on site and also introducing specialist software to monitor the hours worked on site by employees and using this information to generate the timesheets and payroll.

Although we have made a satisfactory profit like most companies we make our best margin when we are utilising our resources to their full potential and are under pressure, this has not been the case this year.

PRINCIPAL RISKS AND UNCERTAINTIES

Market Risk

The group is exposed to the inherent risks from the volatility of the housing market but manages this by maintaining reserve and cash levels to enable it to continue to operate during a downturn.

Credit Risk

Credit risk is the risk that counterparties will not be able to meet their obligations as they fall due. The group closely monitors outstanding debts from all sources resulting in minimal exposure to bad debts. The group's credit risk is managed by active credit control including the use of credit checking.

Operational Risk

Operational risk is caused by failures in business processes or the systems or physical infrastructure that support them that have the potential to result in financial loss or reputation damage. This includes errors, omissions, systems failure, lack of resources or physical assets and deliberate acts such as fraud.

The directors impose continuing self assessment and appraisals along with continually seeking to improve its operating efficiencies and standards. The directors endeavour to limit cost increases wherever possible and actively negotiate best terms with their major suppliers. The group governs its own price risk based on the director's expectations for the group.

Liquidity Risk

The group maintains a mix of both medium-term and short-term committed facilities in order to manage its liquidity and cashflow risk. The directors obtain longer term finance for major capital expenditure thereby maintaining levels of liquid funds to meet working capital requirements. These facilities are designed to ensure that the group has sufficient available funds to meet its current and forecast financial requirements as cost effectively as possible. Liquidity and cashflow risks are monitored by the directors on a regular basis.

Foreign Currency Risk

All of the group's operations are in the UK, consequently the group has no exposure to foreign exchange risk.

Interest Rate Risk

The group's bank loan facilities are subject to commercial market interest rates as a percentage above bank base rate. The group is therefore exposed to the risk of increases in the bank base rate. The group is therefore exposed to the risk of increases in the bank base rate, however the groups exposure is not considered to be significant. The group does not use hedging arrangements.

FINANCIAL KEY PERFORMANCE INDICATORS

The directors monitor financial indicators during the year by quarterly reporting. There are no non-financial performance indicators that are individually key. The key financial performance indicators during the year were as follows;

2025 2024

£ £

Turnover 30,185,493 28,554,169

Gross profit 5,350,478 4,874,515

Gross profit % 17.73 17.07

Net profit 1,579,290 1,736,143

ON BEHALF OF THE BOARD:

Mr C Peterson BSc - Director

27th November 2025

The directors present their report with the financial statements of the company and the group for the year ended 28th February 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of civil engineering, housebuilding and the construction of road surfaces.

DIVIDENDS

Interim dividends of £690,000 were paid during the year.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

Mr K Lord BSc

Mr C Peterson BSc

ENGAGEMENT WITH CUSTOMERS & SUPPLIERS

Our ambition is to deliver best-in-class service to customers. We build strong lasting relationships with our customers and spend considerable time with them to understand their needs and views and listen to how we can improve our service for them. We use this knowledge to inform our decision-making, for example to tailor our proposition to suit customer demands.

We build strong relationships with our suppliers to develop mutually beneficial and lasting partnerships. Engagement with suppliers is primarily through a series of interactions and reviews. Key areas of focus include innovation, development, health and safety and sustainability. We recognises that relationships with suppliers are important to long-term success and monitor supplier feedback and issues on a regular basis.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr C Peterson BSc - Director

27th November 2025

Opinion

We have audited the financial statements of DAC Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28th February 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 28th February 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 Auditors' 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept 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 Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

We enquired of management concerning the company's policies and procedures relating to:

- The identification, evaluation and compliance with laws and regulations:

- The detection and response to the risks of fraud; and

- The establishment of internal controls to mitigate risks related to fraud and non-compliance with laws and regulations.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS102 and the Companies Act 2006.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to health and safety. We performed audit procedures to enquire of management whether the company is in compliance with these laws and regulations, reviewed legal expense accounts and completed searches for reportable incidents in the public domain.

The audit engagement team identified the risk of management override of controls and the risk of management bias when making accounting estimates as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included, but were not limited to, testing journal entries, testing the accuracy of the directors' estimates of revenue and profit on long term contracts, and reviewing the directors' provision against retention debtors.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.? This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jacqueline Frost (Senior Statutory Auditor)

for and on behalf of TC Group

Statutory Auditor

11 De Grey Square

De Grey Road

Colchester

Essex

CO4 5YQ

28th November 2025

TURNOVER

3

30,185,493

28,554,169

Cost of sales

24,835,015

23,679,654

GROSS PROFIT

5,350,478

4,874,515

Administrative expenses

3,329,769

2,855,082

2,020,709

2,019,433

Other operating income

136,156

151,334

OPERATING PROFIT

5

2,156,865

2,170,767

Interest receivable and similar income

58,257

63,025

2,215,122

2,233,792

Interest payable and similar expenses

6

103,291

79,112

PROFIT BEFORE TAXATION

2,111,831

2,154,680

Tax on profit

7

532,541

418,537

PROFIT FOR THE FINANCIAL YEAR

1,579,290

1,736,143

Profit attributable to:

Owners of the parent

1,168,956

1,417,698

Non-controlling interests

410,334

318,445

1,579,290

1,736,143

PROFIT FOR THE YEAR

1,579,290

1,736,143

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,579,290

1,736,143

Total comprehensive income attributable to:

Owners of the parent

1,168,956

1,417,698

Non-controlling interests

410,334

318,445

1,579,290

1,736,143

FIXED ASSETS

Tangible assets

10

5,047,928

4,671,788

Investments

11

-

-

5,047,928

4,671,788

CURRENT ASSETS

Stocks and work in progress

12

747,856

226,000

Debtors

13

5,573,342

4,650,344

Cash at bank

5,920,611

6,628,823

12,241,809

11,505,167

CREDITORS

Amounts falling due within one year

14

4,262,665

3,780,230

NET CURRENT ASSETS

7,979,144

7,724,937

TOTAL ASSETS LESS CURRENT LIABILITIES

13,027,072

12,396,725

CREDITORS

Amounts falling due after more than one year

15

(488,141

)

(521,191

)

PROVISIONS FOR LIABILITIES

19

(970,283

)

(856,176

)

NET ASSETS

11,568,648

11,019,358

CAPITAL AND RESERVES

Called up share capital

20

100

100

Share premium

21

22,855

22,855

Capital redemption reserve

21

2

2

Retained earnings

21

10,688,632

10,209,676

SHAREHOLDERS' FUNDS

10,711,589

10,232,633

NON-CONTROLLING INTERESTS

857,059

786,725

TOTAL EQUITY

11,568,648

11,019,358

The financial statements were approved by the Board of Directors and authorised for issue on 27th November 2025 and were signed on its behalf by:

Mr K Lord BSc - Director

Mr C Peterson BSc - Director

FIXED ASSETS

Tangible assets

10

3,521,078

3,457,048

Investments

11

54

54

3,521,132

3,457,102

CURRENT ASSETS

Stocks and work in progress

12

231,241

-

Debtors

13

141,028

161,523

Cash at bank

1,966,188

1,964,519

2,338,457

2,126,042

CREDITORS

Amounts falling due within one year

14

4,464,704

4,249,887

NET CURRENT LIABILITIES

(2,126,247

)

(2,123,845

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,394,885

1,333,257

CREDITORS

Amounts falling due after more than one year

15

(259,915

)

(374,501

)

PROVISIONS FOR LIABILITIES

19

(599,290

)

(562,523

)

NET ASSETS

535,680

396,233

CAPITAL AND RESERVES

Called up share capital

20

100

100

Retained earnings

21

535,580

396,133

SHAREHOLDERS' FUNDS

535,680

396,233

Company's profit for the financial year

829,447

497,512

The financial statements were approved by the Board of Directors and authorised for issue on 27th November 2025 and were signed on its behalf by:

Mr C Peterson BSc - Director

Mr K Lord BSc - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1st March 2023

100

9,839,978

22,855

Changes in equity

Dividends

-

(1,048,000

)

-

Total comprehensive income

-

1,417,698

-

Balance at 29th February 2024

100

10,209,676

22,855

Changes in equity

Dividends

-

(690,000

)

-

Total comprehensive income

-

1,168,956

-

Balance at 28th February 2025

100

10,688,632

22,855

Capital

redemption

Non-controlling

Total

reserve

Total

interests

equity

£

£

£

£

Balance at 1st March 2023

2

9,862,935

788,280

10,651,215

Changes in equity

Dividends

-

(1,048,000

)

(320,000

)

(1,368,000

)

Total comprehensive income

-

1,417,698

318,445

1,736,143

Balance at 29th February 2024

2

10,232,633

786,725

11,019,358

Changes in equity

Dividends

-

(690,000

)

(340,000

)

(1,030,000

)

Total comprehensive income

-

1,168,956

410,334

1,579,290

Balance at 28th February 2025

2

10,711,589

857,059

11,568,648

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st March 2023

100

946,621

946,721

Changes in equity

Dividends

-

(1,048,000

)

(1,048,000

)

Total comprehensive income

-

497,512

497,512

Balance at 29th February 2024

100

396,133

396,233

Changes in equity

Dividends

-

(690,000

)

(690,000

)

Total comprehensive income

-

829,447

829,447

Balance at 28th February 2025

100

535,580

535,680

Cash flows from operating activities

Cash generated from operations

1

2,094,758

2,465,587

Interest paid

(9,409

)

(4,785

)

Interest element of hire purchase payments paid

(93,882

)

(74,327

)

Tax paid

(310,113

)

(245,977

)

Net cash from operating activities

1,681,354

2,140,498

Cash flows from investing activities

Purchase of tangible fixed assets

(595,867

)

(331,047

)

Purchase of investment property

-

(32,219

)

Sale of tangible fixed assets

115,652

77,245

Sale of investment property

-

365,500

Interest received

58,257

63,025

Net cash from investing activities

(421,958

)

142,504

Cash flows from financing activities

New loans in year

-

175,050

Loan repayments in year

(55,863

)

(213,784

)

Capital repayments in year

(865,630

)

(985,988

)

Amount introduced by directors

-

180,000

Amount withdrawn by directors

(16,115

)

-

Equity dividends paid

(690,000

)

(1,048,000

)

Dividends paid to minority interests

(340,000

)

(320,000

)

Net cash from financing activities

(1,967,608

)

(2,212,722

)

(Decrease)/increase in cash and cash equivalents

(708,212

)

70,280

Cash and cash equivalents at beginning of year

2

6,628,823

6,558,543

Cash and cash equivalents at end of year

2

5,920,611

6,628,823

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

2025

2024

£

£

Profit before taxation

2,111,831

2,154,680

Depreciation charges

1,008,080

888,448

Profit on disposal of fixed assets

(19,607

)

(104,769

)

Increase in recoverable on contracts

(164,071

)

311,444

Finance costs

103,291

79,112

Finance income

(58,257

)

(63,025

)

2,981,267

3,265,890

Increase in stocks and work in progress

(521,856

)

(223,000

)

(Increase)/decrease in trade and other debtors

(742,814

)

83,343

Increase/(decrease) in trade and other creditors

378,161

(660,646

)

Cash generated from operations

2,094,758

2,465,587

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 28th February 2025

28.2.25

1.3.24

£

£

Cash and cash equivalents

5,920,611

6,628,823

Year ended 29th February 2024

29.2.24

1.3.23

£

£

Cash and cash equivalents

6,628,823

6,558,543