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

The principal activity of the company continued to be that of electrical and mechanical installation contractors.

The company continued to consolidate and strengthen its relationship with its existing client base and also continues with a more selective policy on which clientele we have worked with during this year. New work continues to be mainly achieved through referrals and recommendations and we have selective criteria for the client base from the introduction of new clients. The company's continued investment in training and information technology ensures that group continues to be at the forefront of any technological advances.

We continue with the policy of employing people with the relevant expertise and ethos of partnering which will continue to enable the business to improve on its already strong market position.

Turnover for the business was slightly reduced from last year with sales focused on working with the right clients on the right projects. The Global economy continues to encounter many challenges due to inflation, conflict and trade disputes. Although several projects were extended into the next financial year, we are very pleased to have outperformed the Industry standards returning a very satisfactory profit on trading for the year. The board are very confident that the business has accounted for all its previous legacy projects, moving forward, trading for the coming year looks excellent with most of our required turnover already secured for the coming year. We have secured orders already at a record level for 26-27 which bodes very well for the future and reflects the positive relationship we enjoy with our clients. This will give the company the springboard to build on the current excellent results enjoyed this year and, in the past, as we celebrate going into our 25th year of business. Having overcome and put behind us the challenges of a very difficult Industry and environment last year, we continue to look forward to our next financial year with optimism and confidence once again.

The company's business covers the building services sector of construction within the United Kingdom. Performance of the business is influenced by local economic factors as well as more global factors where construction plays a major role throughout the world. The world economy has been subject to significant uncertainty in recent years with some difficult trading conditions experienced globally. International conflicts throughout the world have interrupting the supply of goods in construction as well as general trade. The effect of the Covid 19 pandemic established the vulnerability for everyone in construction for such rare events, however, the Construction Industry is now much more prepared for such factors. The resulting economic downturn and inflationary measures that followed Covid 19 also added to a very challenging time in the Industry. With the above experiences now generally behind us, it is less obstacles for the Construction Industry to manoeuvre in the future, however, the Industry is much more aware and prepared for such factors, should there be repeated in the future. Overall, there are still a number of principle risks and uncertainties associated with the construction market that currently need to be considered and navigated, including Inflation, which continues to be a major factor in the financial markets. The challenges associated with inflation will continue to be carefully managed in the coming year. Overall, considerable care still needs to be taken with regards to the type, duration and value of contracts that will be taken on for the future.

The company's key financial and other performance indicators were as follows:

            Unit        2025        2024

Turnover        £          49,933,738     58,688,893

Gross profit margin    %        17         17

Employee numbers    No.        99         103

Future developments

Our goal is to facilitate the continued development of our operations across the country and to continue to structure our business accordingly. We will take advantage of the many opportunities that continue to arise, building on the excellent working relationships and repeat trading with our more selective number of clients. The coverage of our network throughout the UK is served by our existing offices in Stockton-on-Tees, Coventry, and High Wycombe. The ongoing consolidation of LJJ in all our existing offices provides our clients with comprehensive coverage of the UK. All offices remain busy and we continue to nurture the key relationships with our selective clients from all our offices. The maintenance facility for LJJ continues to develop well with lots of new opportunities being developed with our clientele. This facility allows our clients to continue to utilise LJJ's services well after the construction phase is completed and this is something that we will continue to develop further during 2025/2026.

The company's board believe 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 (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Act) in the decisions taken during the year ended 31 July 2025.

Material decisions taken by the Board in the year include approval of forecast and strategies, a review of corporate financing activities and subsequent strategic review, internal promotions and the continuous development of our staff.

LJJ Ltd is a UK business which depends on the trust and confidence of its stakeholders to operate sustainably in the long term. The company seeks to puts its customers' best interests first, invests in its employees, supports the communities in which it operates and strives to generate sustainable profits for shareholders.

Engagement with employees

LJJ Ltd.’s people is key to its success. Our people help us maintain our strong reputation for high standards of business conduct that are fundamental to the delivery of our strategic plan. The directors recognise the importance of the staff by offering careers with real value, access to professional development initiatives and the chance to be involved in shaping the future of this dynamic business.

We aim to be a responsible employer in our approach to the pay and benefits our employees receive. The health, safety and well-being of our employees in one of our primary considerations in the way we do business. Competitive training programmes and personal development schemes are provided to help our staff reach their goals. Recognition of achievement is embedded in the group culture.

Our staff is regularly involved in evaluating the business progress against targets and they play a crucial role in delivering against our strategy and creating value. It is also our responsibility as a Board to manage our people’s performance and develop and bring through talent while ensuring we operate as efficiently as possible.

Engagement with suppliers, customers and other relationships

As the Board of directors, our intention is to behave responsibly and ensure that management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours. This is reflected in the “4 pillars” of our company, Integrity, Respect, Loyalty and Reliability. These values have been chosen by the staff and have Trust at their foundation.

The company regularly reviews the financial health of its clients to ensure that we are only working for robust, strong companies and any companies that are less than financially sound, exposure is closely monitored and strict financial terms and conditions are imposed.

On behalf of the board

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

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

The results for the year are set out on page 11.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

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

The company's operations expose it to a variety of financial risks that include customer relationships, liquidity risk, interest rate risk and credit rating risk. Whilst LJJ is in a very strong position, with good liquidity, high credit rating and blue chip clients, we will remain vigilant as the construction market picks up pace.

The company's policy aims to ensure that an appropriate amount of reasonably priced funding is availble to meet both current and future requirements. It aims to ensure that there is always at least a fixed level of headroom between the amount of banking facilitiies available and those that are being used at present and for the foreseeable future. Each year facilities are reviewed in light of current and ongoing requirements.

At present the company is not exposed to any interest rate risk as the level of borrowing on LJJ is minimal at any point throughout the year. The company tends to manage its cash flow position exceptionally well which mitigates the chance of any interest rate rise risk.

The principal credit risk arises from the company's trade debtors. The company's finance team manages credit risk through a combination of payment history and third party credit reference agencies. Credit limits are regularly reviewed.

The company regularly reviews the financial health of its clients to ensure that we are only working for robust, strong companies and any companies that are less than financially sound, exposure is closely monitored and strict financial terms and conditions are imposed.

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

In line with the Companies (Director's Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 our energy use and greenhouse gas (GHG) emissons are set out below. The data relates to UK emissions for the 12-month period from 1 August 2024 to 31 July 2025.

The boundaries of this report are based on operational control. We report our emissisons with reference to the latest Greenhouse Gas Protocol Corporate Accounting and Reporting Standard (GHG Protocol). In accordance with the 2018 Regulations, the energy use and associated greenhouse gas emissions are for those within the UK only that come under the operational control boundary. The 2023 UK Govenement GHG Conversion Factors for Company Reporting published by the UK Department for Environment Food & Rural Affairs (DEFRA) are used to convert energy use in our operations to emissions of C02e. Carbon emission factors for purchased electricity calculated according to the 'location-based grid average' method. This reflects the average emission of the grid where the energy consumption occurs. Data sources include billing, invoices and internal systems. Assumptions include, and are limited to, all unknown vehicle types assigned to be diesel medium for company cars and average sized petrol for grey fleet, in alignment with previous years analysis.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £m turnover, the recommended ratio for the sector.

We continue to replace our fleet of company vehicles with electric vehicles.

We have introduced the use video calls for meetings and beyond our immediate footprint, we aim to influence our employees to reduce commuting emissons through provision of bike sheds and supporting the cycle to work scheme.

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.

We have audited the financial statements of LJJ LTD (the 'company') for the year ended 31 July 2025 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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 July 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's 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 other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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 strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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.

As explained more fully in the directors' responsibilities statement, 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.

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 is available on the Financial Reporting Council’s website at: https://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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: Health and Safety; employment law and compliance with the UK Companies Act.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and 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 accounting estimates for indicators of potential bias. 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

The income statement has been prepared on the basis that all operations are continuing operations.

LJJ Ltd is a private company limited by share capital, incorporated in England and Wales. The address of its registered office is Richmond House, 107 Bowesfield Lane, Stockton-on-Tees, TS18 3HF.

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 amounts in these financial statements are rounded to the nearest £.

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. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; 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 LJJ Holdings Limited. These consolidated financial statements are available from its registered office, Richmond House, 107 Bowesfield Lane, Stockon-On-Tees, TS18 3HF.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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 trade discounts, settlement discounts and volume rebates.

Contract revenue recognition

It is the company's policy to recognise profits per contract according to a predicted final result based on the costs expended rather than sales applied for, Most contracts will start at the tender profit margin. Contracts are reviewed on a monthly basis by the management team and an adjustment is made to the applied sales based on the actual costs incurred to bring the turnover in line with the predicted margins until accounts have been agreed on contracts. The total adjustment (to the applied sales) is shown on the accounts as "Long term contracts - payments received on account". Any bad debts or concerns have been reflected in the final margins.

The total of "Application Debtors" is included in trade debtors as this is based on Applied Sales.

Sales retentions

Sales retentions relates to balances that are retained by customers until they are satisfied that the contracted works have been completed to a satisfactory standard.

The total of "Sales retentions debtors" is included within trade debtors in the accounts as they relate to Applied Sales.

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

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

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.

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 current liabilities.

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 statement of financial position when the company becomes party to the contractual provisions of the instrument.

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 unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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.

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, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.

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 income statement, 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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current or prior periods.

Contributions to defined contribution plans are recognised as an employee benefit expense when they are due. If the contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

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 leases asset are consumed.

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.

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

The directors account for long term contracts using the stage of completion method as the contract progresses. The method requires judgement to accuratley estimate the extent of progress towards contract completion and may involve estimates of total contract costs to completion, total revenues, contract risks and other judgements.

The bad and doubtful debts in 2024 relate to a historic contract which reached an agreed settlement during the year.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2024 - 5).

The actual charge/(credit) 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:

Details of non-current trade and other debtors

£2,916,811 (2024 - £3,082,060) of trade debtors classified as non current.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

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 £18,672 (2024 - £18,146) were payable to the scheme at the end of the year and are included within creditors.

Share capital

Share capital represents the nominal value of shares that have been issued.

Capital redemption reserve

This reserve records the nominal value of the share capital redeemed in 2015.

Profit and loss account

The reserve records retained earnings and accumulated losses.

Amounts recognised in profit or loss as an expense during the period in respect of operating lease arrangements was £187,123 (2024 - £187,557).

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The company has provided a guarantee in respect of certain liabilities of LJJ Holdings which, at 31st July 2025, amounted to £Nil (2024 - £Nil).

There is a Composite Company Multilateral Guarantee given by the company and LJJ Holdings Limited in respect of bank borrowings which, at the balance sheet date, amounted to £Nil (2024 - £Nil).

There is a debenture including fixed charge over all present freehold and leasehole property; first fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and first floating charge over all assets and undertaking both present and future in respect of bank borrowings, which at the balance sheet date, amounted to £Nil (2024 - £Nil).

The Company has taken advantage of the exemption available under 33.1A of FRS 102 and does not disclose related party transactions with members of the same group that are wholly owned.

During the year the company purchased goods in the normal course of business totalling £864,544 (2024 - £832,865) from Clear Climate Limited, a company under common control. In addition, the company sold goods of £10,628 (2024 - £12,352). At the balance sheet date amounts owed to Clear Climate Limited totalled £86,812 (2024 - £92,925).

During the year the company sold goods in the normal course of business totalling £1,455 (2024 - £1,656) to the Slobbery Dog Raw Limited, a company under common control.

The company's immediate parent is LJJ Holdings Limited, incorporated in England and Wales.

These financial statements are available upon request from Companies House.

The ultimated controlling party is LJJ Trustee Limited on behalf of the LJJ Employee Ownership Trust.