REGISTERED NUMBER: SC174699

MARSHALL CONSTRUCTION LIMITED

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

Page

Group Strategic Report

1

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Profit and Loss Account

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

The directors present their strategic report of the company and the group for the year ended 31 July 2025.

REVIEW OF BUSINESS

The following review of business considers the performance of the parent company only. The subsidiary company is considered immaterial in relation to the group.

We aim to present a balanced and comprehensive view of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is in the context of the risks and uncertainties that we face.

As a contracting and civil engineering company, our business is divided into divisions within a framework designed to give a certain amount of autonomy to each unit but still within a strategic plan for the company as a whole. The company's activities are organised into the following divisions:

General building (including roofing)

Contracting / Civil engineering

Housing

Plant and transport

Scaffolding

In relation to the parent company, we consider that our key performance indicators are those that communicate the financial performance and strength of the company as a whole, being turnover, gross profit margin, operating profit and net assets.

The parent company's turnover amounted to £60.3m (2024: £55.7m) and this generated a gross profit margin of 3.10% (2024: 3.06%) and an operating profit of £252,405 (2024: £289,077). During the year, net assets of the parent company increased from £3.85m to £4.21m.

Looking forward to the forthcoming year the company strategy is to maintain good relationships with existing customers and to strengthen this customer base with new clients. There are still many challenges in the current climate but we are working with our clients to ensure future tenders have inflationary factors built in where necessary.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors are mindful that the risk environment in which the company operates may not remain fixed. Giving due considerations to this, during the year, the directors reviewed the principal risks and concluded that the nature of the business remains the same and the principal risks it faces are largely unchanged.

The principal risks and uncertainties facing the parent company are as follows:

Fraud and business risk:

The company keeps these areas under continual review. Company procedures are formally reviewed and any failings are reported and monitored as part of the company's Quality Improvement Programme. Key performance indicators are used at a divisional level to measure and monitor business critical issues.

Litigation and contract risk:

The company seeks to exercise dispute resolution measures in line with construction industry good practice in the event of claims to avoid formal litigation. From time to time the company has to resort to or engage in litigation. The outcome of dispute resolution and legal action is always uncertain and there is always risk that these will prove to be more costly and time consuming than expected.

Liquidity risk:

The company aims to reduce liquidity risk by managing funds generated by its operations and ensuring access to adequate working capital facilities. Cash requirements are monitored on a weekly basis.

Credit risk:

The company maintains good relationships with its principal customers and the credit worthiness of new and existing customers are checked on a regular basis with an external credit reference agency.

Environmental risk:

The company places significant emphasis on environmental compliance and operates an environmental management system based on ISO 14001 which has been independently verified by the appropriate inspection body.

Business continuity and disaster recovery risk:

A formal business continuity and disaster recovery plan has been established and the directors have recognised the key issues and risks that would be required to be addressed in the event of any business continuity issues.

SECTION 172(1) STATEMENT

The Board of Directors consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole in the decisions taken during the year ended 31 July 2025..

The following paragraphs summarise how the Directors' fulfill their duties:

Our People

Our employees are fundamental to the delivery of our business strategy. We aim to be a responsible employer in our approach to pay and benefits our employees receive. The health, safety and well-being of our employees is one of our primary considerations in the way we do business. Learning and development has also been vital to ensure each individual understands their contribution to enabling everyone to work safely.

Regular meetings are held between senior management and employee trade union representatives to discuss matters of concern. Employees are kept well informed about the progress and position of the company by means of regular departmental meetings and newsletters.

Business Relationships

Marshall Construction always strive to do the right thing by all our customers. We want them to feel at ease knowing a professional company is taking care of their projects. We know that when we work closely with our customers, we can better understand their requirements, allowing us to deliver a project on time and on budget.

The unique feel of our business which is family owned demonstrates our core values of quality, reliability and competent business practice which makes us stand out from the competition and allows us to develop long term partnering relationships with our customers.

Community and Environment

We have a solid track record of delivering projects in such a way that maximises the benefit to local communities and we also create opportunities for local people to become involved in our projects. Through our ISO 9001:2015, Quality management system, we are committed to investing in the community through our Corporate Social Responsibility scheme.

Our approach to sustainability is to comply with our environmental policy that is accredited to ISO 14001:2015. We embrace the 2008 Government strategy for sustainability targets within the Construction Industry including sustainability in the design and designing the build environment to comply with the principles of economic, social and environmental buildings sustainability. We are familiar with BREEAM, CEEQUAL and the Code for Sustainable Homes to evaluate a new buildings sustainability performance. The company gained ISO45001 Health & Safety Management accreditation in July 2024.

We are committed to reducing our carbon footprint, running our business in a sustainable and responsible manner. We received accreditation from the Carbon Trust and have embarked on a series of energy saving initiatives in our offices and site accommodation, including additional insulation and controls on the lighting installation. We were the first contractor in Scotland to gain this accreditation. We have also joined the Net Zero Accelerator Program to reduce our carbon in line with government guidelines which also produces our Carbon reduction report.

Shareholders

The shareholder of the company maintains an active role in the management of the business and sits on the Board of Directors. The shareholder and management are provided with reporting data at Board Meetings to enable them to actively manage the company and ensure the focus on long term strategy.

FINANCIAL INSTRUMENTS

The parent company has adopted the disclosure and presentational requirements of FRS 102. When a financial asset or liability is disclosed initially it is measured at its fair value plus or minus transaction costs. The company regularly monitors its exposure to risks including pricing, credit, liquidity and cash flow.

The company has tightened up controls over collection of trade debtors and has agreed payment terms with its suppliers. In respect of debtors, the company's turnover is based on negotiated priced jobs.

The company is satisfied with the level of cash flow being maintained after taking into consideration the timing aspect of debtor recoverability and the payment of trade creditors and other business expenses.

The bank is currently satisfied with the company's financial performance and the directors do not consider there to be any risk of their facilities being withdrawn. The company's deposits are all in place with major UK financial institutions which are regulated by the Financial Conduct Authority.

FUTURE DEVELOPMENTS

The parent company intends to continue to focus on its core activities in the construction industry. The company recognises that the current economic situation is making it a very challenging and competitive sector but with an extremely solid client base and exceptionally strong and committed workforce we are looking at an encouraging order book going forward. The company prides itself in its ability to build and retain relationships with clients, that are long lasting, based on collaborative working and ability to deliver to the clients satisfaction. We have a strong order book for the year ahead, with the Directors hopeful that the turnover will be approximately £50 million by the year ended 31 July 2026.

ON BEHALF OF THE BOARD:

R Marshall - Director

9 December 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 July 2025.

PRINCIPAL ACTIVITY

The principal activity of the parent company in the year under review was contracting and civil engineering. The principal activity of the subsidiary company was the provision of funeral services.

DIVIDENDS

During the year, the company paid an interim dividend for the year ended 31 July 2025 of £Nil.

There are no final proposed dividends for the year ended 31 July 2025.

DIRECTORS

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

R Marshall

Mrs L S Marshall

G J Boal

B McDermott

R Marshall is a director of the subsidiary company. No other directors or any family members have interests in other group companies.

GROUP STRATEGIC REPORT

The company has chosen in accordance with section 414C(11) Companies Act 2006 to set out in the company's Group Strategic Report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the Directors Report. It has done so in respect of financial instruments, future developments, and also in regards to employee involvement and engagement with suppliers, customers and others within the s172(1) statement.

DISABLED PERSONS

The parent company's policy is to give full and fair consideration to applications for employment made by disabled persons, having regard to their particular aptitudes and abilities.

Disabled employees receive appropriate training to promote their career development within the company. Employees who become disabled are retained in their existing posts where possible or retrained for suitable alternative posts.

STREAMLINED ENERGY AND CARBON REPORTING

As an unquoted company incorporated in the UK the Company is required to report its energy and emissions data in accordance with the Companies (Directors Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. We have used the main requirements of UK Government GHG conversion factors for Company Reporting 2025 to calculate our emissions. Emissions reported correspond with our financial year end and include all areas to which we have operational control in the UK. The company operates in the UK mainland with no offshore areas. The business operates from multiple construction sites across Scotland and the head office in Alloa. At a site level much of the energy usage is from generators. The company treats its environmental responsibilities as a key priority.

The below are actual amounts for the activities in the year to July 2025:

2025

2024

Energy use (kWh)*

5,164,429

5,848,584

Greenhouse gas emissions for energy purchased for own use (CO2e)

30

78

Greenhouse gas emissions for transport (t CO2e)

1,221

1,301

Total Greenhouse gas emissions (t CO2e)**

1,249

1,379

Intensity ratio (£Turnover per t CO2e) ***

£48,287

£40,366

* Marshall Construction Ltd energy use total includes consumption associated with electricity, mains gas, gas oil, diesel and petrol and mains water; including activities across offices, workshops, company vehicles and plant.

**Data informing the total energy use and associated carbon emissions has been taken from a combination of invoices and meter readings.

*** Total emissions divided by revenue

Energy efficiency actions taken

During 2024-2025 the company has undertaken a number of steps to improve energy efficiency. These include:

- Improved reporting to enable us to better understand our emissions

- The purchase of 100% electric vehicles

- LED lighting installation throughout offices

- Investigating the possibility of solar roof panels to generate energy towards electric vehicle charging and office heating.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, 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), comprising Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and 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 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. The directors are also responsible for the maintenance and integrity of the corporate and financial information on the company's website.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

R Marshall - Director

9 December 2025

Opinion

We have audited the financial statements of Marshall Construction Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2025 which comprise the Consolidated Profit and Loss Account, 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 31 July 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:

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;

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

-

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-

we identified the laws and regulations applicable to the company through discussions with directors and other management and from our knowledge of the construction retail sector;

-

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, FRS102, taxation legislation and Sale of Goods Act. We also considered those laws and regulations having an indirect impact but nonetheless significant, including, GDPR, anti-bribery, employment, environmental and health and safety legislation;

-

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

-

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

-

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

Auditors' responsibilities for the audit of the financial statements - continued

To address the risk of fraud through management bias and override of controls, we:

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-

assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 2 were indicative of potential bias; and

-

investigated the rationale behind significant or unusual transactions and reviewed transactions processed outwith normal business hours.

To address the risks associated with income recognition we:

-

performed analytical procedures to identify unusual relationships;

-

vouched a sample of sales orders to sales invoices within the sales ledger;

-

reviewed invoices post year end for evidence of completeness of income;

-

performed cut off testing and reviewed credit notes processed post year end.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

enquiring of management as to actual and potential litigation and claims; and

-

reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Colette Callaghan FCCA (Senior Statutory Auditor)

for and on behalf of Armstrong Watson Audit Limited

Chartered Accountants & Statutory Auditors

Caledonia House

89 Seaward Street

Glasgow

G41 1HJ

9 December 2025

TURNOVER

3

60,663,368

56,067,033

Cost of sales

(58,606,107

)

(54,138,131

)

GROSS PROFIT

2,057,261

1,928,902

Administrative expenses

(1,879,139

)

(1,680,873

)

178,122

248,029

Other operating income

4

45,300

44,000

OPERATING PROFIT

6

223,422

292,029

Interest receivable and similar income

110,903

74,200

334,325

366,229

Interest payable and similar expenses

7

(3,041

)

(3,041

)

PROFIT BEFORE TAXATION

331,284

363,188

Tax on profit

8

-

-

PROFIT FOR THE FINANCIAL YEAR

331,284

363,188

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

331,284

363,188

Profit attributable to:

Owners of the parent

331,284

363,188

Total comprehensive income attributable to:

Owners of the parent

331,284

363,188

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

2,243,058

2,042,770

Investments

12

-

-

2,243,058

2,042,770

CURRENT ASSETS

Stocks

13

5,995

9,706

Debtors

14

11,256,666

12,929,372

Cash at bank and in hand

10,028,199

5,891,768

21,290,860

18,830,846

CREDITORS

Amounts falling due within one year

15

19,194,279

16,836,426

NET CURRENT ASSETS

2,096,581

1,994,420

TOTAL ASSETS LESS CURRENT LIABILITIES

4,339,639

4,037,190

CREDITORS

Amounts falling due after more than one year

16

-

28,835

NET ASSETS

4,339,639

4,008,355

CAPITAL AND RESERVES

Called up share capital

19

541,000

541,000

Equity share premium

20

1,309,220

1,309,220

Retained earnings

20

2,489,419

2,158,135

SHAREHOLDERS' FUNDS

4,339,639

4,008,355

The financial statements were approved by the Board of Directors and authorised for issue on 9 December 2025 and were signed on its behalf by:

R Marshall - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

2,151,653

1,921,899

Investments

12

200,000

200,000

2,351,653

2,121,899

CURRENT ASSETS

Debtors

14

11,243,349

12,913,273

Cash at bank and in hand

9,790,242

5,610,959

21,033,591

18,524,232

CREDITORS

Amounts falling due within one year

15

19,173,562

16,769,347

NET CURRENT ASSETS

1,860,029

1,754,885

TOTAL ASSETS LESS CURRENT LIABILITIES

4,211,682

3,876,784

CREDITORS

Amounts falling due after more than one year

16

-

25,333

NET ASSETS

4,211,682

3,851,451

CAPITAL AND RESERVES

Called up share capital

19

541,000

541,000

Equity share premium

20

1,309,220

1,309,220

Retained earnings

20

2,361,462

2,001,231

SHAREHOLDERS' FUNDS

4,211,682

3,851,451

Company's profit for the financial year

360,231

359,544

The financial statements were approved by the Board of Directors and authorised for issue on 9 December 2025 and were signed on its behalf by:

R Marshall - Director

Called up

Equity

share

Retained

share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 August 2023

541,000

1,794,947

1,309,220

3,645,167

Changes in equity

Total comprehensive income

-

363,188

-

363,188

Balance at 31 July 2024

541,000

2,158,135

1,309,220

4,008,355

Changes in equity

Total comprehensive income

-

331,284

-

331,284

Balance at 31 July 2025

541,000

2,489,419

1,309,220

4,339,639

Called up

Equity

share

Retained

share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 August 2023

541,000

1,641,687

1,309,220

3,491,907

Changes in equity

Total comprehensive income

-

359,544

-

359,544

Balance at 31 July 2024

541,000

2,001,231

1,309,220

3,851,451

Changes in equity

Total comprehensive income

-

360,231

-

360,231

Balance at 31 July 2025

541,000

2,361,462

1,309,220

4,211,682

Cash flows from operating activities

Cash generated from operations

1

4,909,941

392,197

Interest element of hire purchase payments paid

(3,041

)

(3,041

)

Net cash from operating activities

4,906,900

389,156

Cash flows from investing activities

Purchase of tangible fixed assets

(842,591

)

(779,784

)

Sale of tangible fixed assets

79,242

155,790

Interest received

110,903

74,200

Net cash from investing activities

(652,446

)

(549,794

)

Cash flows from financing activities

Capital repayments in year

(118,023

)

(92,994

)

Net cash from financing activities

(118,023

)

(92,994

)

Increase/(decrease) in cash and cash equivalents

4,136,431

(253,632

)

Cash and cash equivalents at beginning of year

2

5,891,768

6,145,400

Cash and cash equivalents at end of year

2

10,028,199

5,891,768

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

2025

2024

£

£

Profit before taxation

331,284

363,188

Depreciation charges

610,158

560,764

Profit on disposal of fixed assets

(47,097

)

(136,034

)

Finance costs

3,041

3,041

Finance income

(110,903

)

(74,200

)

786,483

716,759

Decrease in stocks

3,711

196,868

Decrease in trade and other debtors

1,672,708

4,551,514

Increase/(decrease) in trade and other creditors

2,447,039

(5,072,944

)

Cash generated from operations

4,909,941

392,197

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 31 July 2025

31/7/25

1/8/24

£

£

Cash and cash equivalents

10,028,199

5,891,768

Year ended 31 July 2024

31/7/24

1/8/23

£

£

Cash and cash equivalents

5,891,768

6,145,400

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/8/24

Cash flow

At 31/7/25

£

£

£

Net cash

Cash at bank and in hand

5,891,768

4,136,431

10,028,199

5,891,768

4,136,431

10,028,199

Debt

Finance leases

(146,858

)

118,023

(28,835

)

(146,858

)

118,023

(28,835

)

Total

5,744,910

4,254,454

9,999,364

1.	STATUTORY INFORMATION

Marshall Construction Limited is a private limited company incorporated in Scotland. The registered office is The Whins, Alloa, Clackmannanshire, FK10 3TA.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. There were no material departures from this standard.

The financial statements are presented in Sterling (£).

Basis of consolidation

The consolidated financial statements incorporate those of Marshall Construction Limited and all of its subsidiary undertakings for the year. Subsidiaries acquired during the year are consolidated using the acquisition method. Their results are incorporated from the date that control passes. The difference between the cost of acquisition of shares in subsidiaries and the fair value of the separable net assets acquired is capitalised as goodwill. All intra-group transactions, balances, income and expenses are eliminated on consolidation.

Critical accounting judgements

In the application of the company's accounting policies the company considers on an annual basis the judgements that are made by directors when applying its significant accounting policies that would have the most significant effect on amounts that are recognised in the financial statements. In preparing these financial statements, the directors have the following judgements:

- Determination of the stage of completion of contracts at the balance sheet date and the expected outcome of each of these contracts to assess either the appropriate level of profit to be recognised or if a contract is assessed as being loss-making, the amount of the loss to be provided for. In making its judgement, management consider the agreed contract valuations of work done and forecasts assessing the anticipated contract outcome.

- Determination of whether leases entered into by the company as a lessee are operating leases or finance lease agreements. These decisions depend on the assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

Key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make estimates and assumptions about the carrying amounts 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 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The directors consider the key sources of estimation uncertainty to be as follows: -

- Tangible fixed assets (note 11) are depreciated over their estimated useful lives. The actual lives of the assets are assessed annually and may vary depending on several factors. In re-assessing asset lives, factors such as usage and maintenance programmes are taken into account. The directors assessed that no changes were required to the estimated useful lives of the tangible fixed assets and therefore, determined that the stated depreciation policies applied in prior years remain appropriate.

- At the balance sheet date, the directors consider whether there are any indicators that the balances relating to amounts recoverable on contracts of £1.25m (2024: £973k), and trade debtors of £10m (2024: £11.9m) will not be recoverable to ensure an adequate provision is made for any potentially irrecoverable amounts. The directors also consider that payments on account of contracts of £5.2m (2024: £5.3m) are fully provided for and adequate provision is included. Based on their knowledge of the customers concerned the directors consider that no provision is required against these balances.

Turnover

Turnover, for the parent company, exclusive of value added tax, represents the amount receivable for work completed and services provided and in respect of long term contracts, the sales value of work done in the year. Turnover on contracts is recognised according to the stage reached in the contract by reference to the value of work done. Where turnover on a contract exceeds the amounts invoiced, the difference is included in debtors as amounts recoverable on contracts.

Turnover for the subsidiary company represents the value of goods and services provided. The company's policy is to recognise a sale when the goods and services have been provided to the buyer.

Contract activity

Profit on contracts is taken as work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the period-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. Revenue derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the period in which they are first foreseen.

Long term contracts are reflected in the profit and loss account by recording turnover and related costs as activity progresses. Turnover represents net costs plus attributable profit, estimated to have been earned, less foreseeable losses. Turnover in excess of payments on account is separately disclosed in debtors as amounts recoverable on contracts.

Intangible assets

Positive purchased goodwill, in respect of the parent company, arising on acquisitions is capitalised, classified as an asset on the balance sheet and amortised over its estimated useful life. If a reliable estimate cannot be made, the useful life of goodwill is presumed to be 10 years. Goodwill was amortised over 20 years in prior year accounts. Goodwill is reviewed for impairment at the end of the first full financial year following each acquisition and subsequently as and when necessary if circumstances emerge that indicate that the carrying value may not be recoverable.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Heritable property

-

2% on cost

Plant and machinery

-

20% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

20% on cost

Fixed assets are included in the financial statements at cost less accumulated depreciation and impairment losses.

Impairment of non-financial assets

At each reporting date non-financial assets are not carried at fair value, like plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount which is the higher of value in use and the fair value less cost to sell, is estimated and compared with the carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit and loss.