Company No: 06977736 (England and Wales)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2025		2024
		£		£
Fixed assets
Tangible assets	3	867,352		755,765
		867,352		755,765
Current assets
Debtors
- due within one year	4	2,084,814		1,341,909
- due after more than one year	4	1,103,351		843,227
Cash at bank and in hand		1,562,387		1,467,001
		4,750,552		3,652,137
Creditors: amounts falling due within one year	5	( 2,290,995)		( 1,702,891)
Net current assets		2,459,557		1,949,246
Total assets less current liabilities		3,326,909		2,705,011
Creditors: amounts falling due after more than one year	6	( 7,264)		( 19,291)
Provision for liabilities		( 73,791)		( 56,909)
Net assets		3,245,854		2,628,811
Capital and reserves
Called-up share capital	7	200		200
Profit and loss account		3,245,654		2,628,611
Total shareholders' funds		3,245,854		2,628,811

For the financial year ending 31 July 2025 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Income and Retained Earnings has not been delivered.

The financial statements of Red Tree Building Contractors Limited (registered number: 06977736) were approved and authorised for issue by the Board of Directors on 10 December 2025. They were signed on its behalf by:

T A Eccles Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Red Tree Building Contractors Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is St Georges House, 71 Liverpool Road, Cadishead, M44 5BG, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Turnover

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

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Construction contracts

Turnover from a contract to provide construction services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

* the amount of turnover can be measured reliably;
* it is probable that the company will receive the consideration due under the contract;
* the stage of completion of the contract at the end of the reporting period can be measured reliably, and;
* the costs incurred and the costs to complete the contract can be measured reliably.

Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Full provision is made for losses on all contracts in the year in which they are first foreseen.

Amounts recoverable on contracts are included in current assets and represent turnover recognised in excess of payments on account.

Employee benefits

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Statement of Income and Retained Earnings in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Holiday Pay Accrual

The company recognises a liability for holiday pay accruals at the reporting date in respect of employees' unused holiday entitlement. The liability is measured at the full amount expected to be paid to settle the obligation.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Land and buildings	not depreciated
Vehicles	25 % reducing balance
Fixtures and fittings	6 years straight line
Computer equipment	4 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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 profit or loss.

Borrowing costs

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

Leases

The Company as lessee
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Statement of Income and Retained Earnings over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

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

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

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

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders.

2. Employees

	2025		2024
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	42		42

3. Tangible assets

	Land and buildings		Vehicles		Fixtures and fittings		Computer equipment		Total
	£		£		£		£		£
Cost
At 01 August 2024	473,370		438,521		22,500		41,035		975,426
Additions	0		215,853		27,134		5,094		248,081
Disposals	0		( 46,312)		0		0		( 46,312)
At 31 July 2025	473,370		608,062		49,634		46,129		1,177,195
Accumulated depreciation
At 01 August 2024	0		187,324		0		32,337		219,661
Charge for the financial year	0		93,828		7,053		3,970		104,851
Disposals	0		( 14,669)		0		0		( 14,669)
At 31 July 2025	0		266,483		7,053		36,307		309,843
Net book value
At 31 July 2025	473,370		341,579		42,581		9,822		867,352
At 31 July 2024	473,370		251,197		22,500		8,698		755,765
Leased assets included above:
Net book value
At 31 July 2025	0		21,143		0		0		21,143
At 31 July 2024	0		64,197		0		0		64,197

4. Debtors

	2025		2024
	£		£
Debtors: amounts falling due within one year
Trade debtors	1,648,837		839,397
Amounts recoverable on contracts	386,403		447,724
Prepayments	47,258		52,631
Other debtors	2,316		2,157
	2,084,814		1,341,909
Debtors: amounts falling due after more than one year
Amounts owed by associates	324,626		351,374
Amounts owed by directors	316,874		350,231
Other debtors	461,851		141,622
	1,103,351		843,227

5. Creditors: amounts falling due within one year

	2025		2024
	£		£
Trade creditors	880,971		524,840
Amounts owed to directors	499,187		389,777
Accruals	24,748		10,106
Taxation and social security	693,013		554,683
Obligations under finance leases and hire purchase contracts	12,032		24,578
Other creditors	181,044		198,907
	2,290,995		1,702,891

Net obligations under hire purchase contracts of £12,032 (2024: £24,578) are secured against the assets to which they relate.

6. Creditors: amounts falling due after more than one year

	2025		2024
	£		£
Obligations under finance leases and hire purchase contracts	7,264		19,291

Net obligations under hire purchase contracts of £7,264 (2024: £19,291) are secured against the assets to which they relate.

7. Called-up share capital

	2025		2024
	£		£
Allotted, called-up and fully-paid
50 A Ordinary shares of £ 1.00 each	50		50
45 B Ordinary shares of £ 1.00 each	45		45
40 C Ordinary shares of £ 1.00 each	40		40
35 D Ordinary shares of £ 1.00 each	35		35
20 E Ordinary shares of £ 1.00 each	20		20
10 F Ordinary shares of £ 1.00 each	10		10
	200		200

All shares rank pari passu in all respects.

8. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

	2025		2024
	£		£
within one year	22,860		0
between one and five years	63,971		0
Total future minimum lease payments under non-cancellable operating leases	86,831		0

Pensions

The Company operates a defined contribution pension scheme for the directors and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.

	2025		2024
	£		£
Unpaid contributions due to the fund (inc. in other creditors)	3,140		2,809

9. Related party transactions

Transactions with the entity's directors

Three of the directors have received loans from the company. At the year end, the amounts outstanding total £170,000 (2024: £187,000), £80,666 (2024: £88,733) and £66,208 (2024: £74,498) respectively.

Two of the loans are repayable by annual instalments over 15 years and interest is being charged on the outstanding balances at a rate of 2.5%. One loan is repayable by annual instalments over 10 years and interest is being charged on the outstanding balance at a rate of 2.25%.

Other related party transactions

At the year end, the company had loaned £324,626 (2024: £351,374) to an associated company which is included in amounts owed by associates. Interest is being charged on this loan at a rate of 2.5%.

At the year end, the company owed £43,163 (2024: £Nil) to an associated company. This balance is included within trade creditors. The transactions during the year related to the purchase and sale of goods and services in the normal course of business.