REGISTERED NUMBER: NI030737 (Northern Ireland)

P.K. MURPHY CONSTRUCTION LIMITED

Strategic Report, Directors' Report and

Financial Statements for the Year Ended 31 March 2025

Page

Company Information

1

Strategic Report

2

Directors' Report

4

Independent Auditors' Report

6

Income Statement

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

PK Murphy

M McCrory

P Murphy

B Murphy

REGISTERED OFFICE:

91 Sluggan Road

Pomeroy

Dungannon

Co. Tyrone

BT70 2UP

REGISTERED NUMBER:

NI030737 (Northern Ireland)

INDEPENDENT AUDITORS:

Cooper Parry Audit (Ireland) Limited

Statutory Auditor

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

BANKERS:

Bank of Ireland

Market Street

Magherafelt

Derry

BT45 6EE

SOLICITORS:

Miller Shearer & Black

40 Molesworth Street

Cookstown

BT80 8PH

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

REVIEW OF BUSINESS

The principal activity of the company is that of building contractors and developers.

Despite a difficult economic and trading environment, the directors are satisfied with the trading performance for the year ended 31 March 2025. The company returned a profit before tax for the financial year of £3,086,911 (2024: £2,296,661) on a turnover base of £41,068,004 (2024: £25,880,844). The business remains in sound financial position at the year end with a net asset position of £3,124,119 (2024: £2,840,189).

BUSINESS ENVIRONMENT

The Northern Ireland construction industry is highly competitive, particularly in the public sector where the majority of our business is focused. The company continues to tender for work and has also established private sector development works.

KEY PERFORMANCE INDICATORS

The directors consider the key performance indicators are those that communicate the financial performance and strengths as a whole, being revenue, gross profit margin and profit before tax.

The Key Performance Indicators during the year were as follows:

2025

2024

£

£

Revenue

41,068,004

25,880,844

Gross profit margin

13.73%

18.29%

Profit before tax

3,086,911

2,296,661

PRINCIPAL RISKS AND UNCERTAINTIES

The main risks from the companys`s operations are competition and inflationary costs pressures. The directors review and agree policies for managing each of these risks and they are summarised below.

Competition risk

Competition risk is managed through close attention to quality, customer service and sustainable markets.

Inflationary cost pressures

Suppliers continue to be exposed to pressures created by Brexit, rising energy costs, supply chain disruption and the war in Ukraine.The business remains vigilant to the potential headwinds experienced by all aspects of the project cycle and seeks to mitigate these risks through commercial and risk management, on-going dialogue with key stakeholders, including customers and supply chain.

STRATEGY AND DEVELOPMENT

The company's success is dependent on the ongoing management of business risk and uncertainties it faces. The directors continue to work closely with suppliers, customers, staff and financial institutions to carefully manage the company's operations.

FUTURE DEVELOPMENTS

The company is committed to long term creation of shareholder value. The economic environment continues to evolve and is making a return to relative stability. In the coming years the company aims to increase revenue and profitability. The company will continue to develop relationships with customers and suppliers and generate new work where possible while remaining highly competitive.

EMPLOYMENT POLICY

P.K. Murphy Construction Limited depends on the skills and commitments of its employees in order to achieve its objectives. Company staff at every level are encouraged to make their fullest possible contribution to the company's success. The company's selection, training, development and promotion policies ensure equal opportunities for all employees, regardless of gender, marital status, race, age or disability.

ON BEHALF OF THE BOARD:

PK Murphy - Director

28 November 2025

The directors present their report with the audited financial statements of the Company for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the company is that of building contractors and developers.

DIVIDENDS

Interim dividends of £2,300,000 were paid during the year (2024: £2,040,000). The directors do not recommend payment of a final dividend.

DIRECTORS

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

PK Murphy

M McCrory

P Murphy

B Murphy

POLITICAL DONATIONS AND EXPENDITURE

The company made charitable donations of £9,190 (2024: £6,558). No expenditure was incurred for political purposes in the current or prior year.

FINANCIAL RISK MANAGEMENT

The company operations expose it to a variety of risks that include competition risk, economic risk, liquidity risk and interest rate cash flow risk. The company has in place a risk management programme that seeks to limit any adverse effects on the financial performance of the company.

Competition Risk:

Competition risk comes from other building contractors and developers. The directors manage this risk by ensuring a quality service is offered to all customers.

Economic Risk:

Economic risk is inherent in the industry in which the company operates. The directors manage this risk by ensuring relationships with suppliers and subcontractors are maintained with the company having long standing relationships with such entities.

Liquidity Risk:

The company generates sufficient cashflow to ensure it has adequate available funds for operations.

Interest Rate Cash Flow Risk:

The company has both interest bearing assets and interest bearing liabilities. Interest bearing assets include cash balances which earn interest as variable rates. Interest bearing liabilities include bank overdrafts. The directors monitor interest rates on an ongoing basis.

DISCLOSURE IN THE STRATEGIC REPORT

In accordance with Section 414C (11) of Companies Act 2006, the directors have elected to disclose details of the business review, principal risks and uncertainties, financial key performance indicators and future developments in the company's Strategic Report which would otherwise be required to be disclosed in the Directors' Report.

DIRECTORS' RESPONSIBILITIES STATEMENT

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including 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;

-	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.

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 Company'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 Company's auditors are aware of that information.

AUDITORS

The audit business of CavanaghKelly was acquired by Cooper Parry Audit (Ireland) Limited on 24th July 2025. CavanaghKelly has resigned as auditor and Cooper Parry Audit (Ireland) Limited has been appointed in its place.

The auditors, Cooper Parry Audit (Ireland) Limited, have indicated their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

PK Murphy - Director

28 November 2025

Opinion

We have audited the financial statements of P.K. Murphy Construction Limited (the 'Company') for the year ended 31 March 2025 which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity and 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 Company's affairs as at 31 March 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report 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 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.

Matters on which we are required to report by exception

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 where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement 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 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.

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 an Auditors' 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.

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

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation;

-

We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance;

-

We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations;

-

Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and

-

Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override.

The audit response to risks identified included:

-

Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above;

-

Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud;

-

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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 Auditors' Report.

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 Auditors' 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.

Mr. Desmond Kelly FCA (Senior Statutory Auditor)

for and on behalf of Cooper Parry Audit (Ireland) Limited

Statutory Auditor

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

28 November 2025

REVENUE

4

41,068,004

25,880,844

Cost of sales

(35,430,916

)

(21,146,563

)

GROSS PROFIT

5,637,088

4,734,281

Administrative expenses

(2,651,576

)

(2,557,303

)

2,985,512

2,176,978

Other operating income

114,141

109,726

OPERATING PROFIT

7

3,099,653

2,286,704

Finance income

70,789

84,140

3,170,442

2,370,844

Finance costs

8

(83,531

)

(74,183

)

PROFIT BEFORE TAXATION

3,086,911

2,296,661

Tax on profit

9

(762,981

)

(576,999

)

PROFIT FOR THE FINANCIAL YEAR

2,323,930

1,719,662

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,323,930

1,719,662

NON-CURRENT ASSETS

Property, plant and equipment

11

1,796,542

1,972,821

CURRENT ASSETS

Inventories

12

6,994,502

3,189,238

Receivables: amounts falling due within one year

13

4,561,122

4,213,214

Cash at bank and in hand

1,865,195

2,295,793

13,420,819

9,698,245

PAYABLES

Amounts falling due within one year

14

(11,644,843

)

(8,071,058

)

NET CURRENT ASSETS

1,775,976

1,627,187

TOTAL ASSETS LESS CURRENT LIABILITIES

3,572,518

3,600,008

PROVISIONS FOR LIABILITIES

15

(708,399

)

(759,819

)

NET ASSETS

2,864,119

2,840,189

CAPITAL AND RESERVES

Called up share capital

16

23,000

23,000

Retained earnings

2,841,119

2,817,189

SHAREHOLDERS' FUNDS

2,864,119

2,840,189

The financial statements were approved by the Board of Directors and authorised for issue on 28 November 2025 and were signed on its behalf by:

PK Murphy - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

23,000

3,137,527

3,160,527

Changes in equity

Dividends

-

(2,040,000

)

(2,040,000

)

Total comprehensive income

-

1,719,662

1,719,662

Balance at 31 March 2024

23,000

2,817,189

2,840,189

Changes in equity

Dividends

-

(2,300,000

)

(2,300,000

)

Total comprehensive income

-

2,323,930

2,323,930

Balance at 31 March 2025

23,000

2,841,119

2,864,119

1.	STATUTORY INFORMATION

P.K. Murphy Construction Limited is a private company, limited by shares, registered in Northern Ireland within the United Kingdom. The company's registered number and registered office address can be found on the Company Information page.

The principal activity of the company is that of building contractors and developers.

The presentational currency of the financial statements in Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

These 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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared on a going concern basis and in accordance with historical cost. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The financial reporting framework that has been applied in their preparation is the Companies Act 2006 (the "Act") and FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" issued by the Financial Reporting Council.

Financial Reporting Standard 102 - reduced disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Termon Holdings Ltd which can be obtained from Companies House.

The company has taken advantage of the following exemptions:

-

from disclosing related party transactions that are wholly within the same group under paragraph 33.1 of the provisions of FRS102, on the grounds that at 31 March 2025 the company was a wholly owned subsidiary of Termon Holdings Ltd;

-

from preparing a Statement of cash flows on the basis that it is a qualifying entity and its cash flows are included in the cash flow statement in the consolidated financial statements of its parent company;

-

from the financial instrument disclosures required under FRS 102 paragraphs 11.41(b) to 11.48(c) and 12.26 to 12.29, as the information is provided in the consolidated financial statement disclosures; and

-

from disclosing the company's key management personnel compensation as required by FRS 102 paragraph 33.7.

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

a) Critical judgements in applying the entity's accounting policies

There are no critical judgements in applying the entity's accounting policies.

b) Key accounting estimates and assumptions

There are no critical accounting estimates and assumptions.

Revenue

Turnover represents net invoices sales of goods and services, excluding value added tax. The majority of turnover is on long term contracts. These contracts are assessed on a contract by contract basis and are reflected in the profit and loss account by recording turnover and related costs by reference to the stage of completion at the reporting date. Where the outcome of each long-term contract can be assessed with reasonable certainty before its conclusion, the attributable profit is recognised in the profits and loss account as the difference between the reported turnover and related costs for that contract. Provision is made for all known or expected losses.

Property, plant and equipment

The carrying values of Plant, property and equipment are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.

Property, plant and equipment under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows:

Freehold Property

4% straight line

Plant and machinery

20% straight line

Fixtures, fittings and equipment

20% straight line

Motor vehicles

25% straight line

Inventories

Inventories and Work in Progress are valued at the lower of cost and net realisable value. Cost in respect of finished goods represents direct materials, direct labour and a proportion of appropriate overheads. Net realisable value is the price at which inventory can be realised in the normal course of business. Provision is made where necessary for obsolete, slow moving and defective inventory.

Work in Progress is valued on the basis of direct costs plus attributable overheads based on normal activity. Provisions are made for any foreseeable losses where appropriate. No element of profit is included in the valuation of Work in Progress.

Financial instruments

The company have chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by related parties are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 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 when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and overdrafts and amounts owed to related parties 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

(iii) Offsetting

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Income Statement on a straight line basis over the period of the lease.

Employee benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit or loss in the period to which they relate. The assets of the scheme are held separately from those of the company in an independently administered fund.

Finance costs

Finance costs are charged to the Income Statement over the term of the debt.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand and deposits held at call with banks.

Distributions to equity holders

Dividends and other distributions to the Company`s shareholders are recognised as a liability in the financial statements in the period in which the dividend's and other distributions are approved by the Company`s shareholders. These amounts are recognised in the statement of changes in equity.

Provisions

Provisions are recognised when the company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the same value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.

4.

REVENUE

All turnover is derived from the company`s principal activities. No analysis of turnover is presented as the directors consider disclosure to be seriously prejudicial to the interests of the company.

5.	EMPLOYEES AND DIRECTORS

Staff costs, including directors' emoluments, were as follows:

2025

2024

£

£

Wages and salaries

5,386,723

3,229,280

Social security costs

461,557

289,884

Other pension costs

179,808

141,039

6,028,088

3,660,2023

The average number of employees, including directors employed during the year, was as follows:

2025

2024

Direct

112

64

Administration and directors

79

53

191

117

6.	DIRECTORS' EMOLUMENTS

Directors emoluments during the year were as follows:

2025

2024

£

£

Directors emoluments

240,000

194,533

Company contribution to defined pension schemes

80,000

80,000

349,353

274,533

During the year, retirements benefits were accruing for 4 directors (2023: 4) in respect of defined benefit pension schemes.

Information regarding the highest paid director is as follows:

2025

2024

£

£

Directors' emoluments

80,000

45,998

7.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Rent payable

16,377

25,442

Depreciation - owned assets

761,696

514,500

Profit on disposal of fixed assets

(33,532

)

(43,044

)

Auditors' remuneration

15,000

16,005

Plant hire

672,665

354,830

8.	FINANCE COSTS

2025

2024

£

£

Bank interest

1,307

31

Interest on overdue tax

336

-

Other interest

300

21,345

Loan interest

77,069

49,334

Bank charges

4,519

3,473

83,531

74,183

9.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

814,401

334,122

Deferred tax

(51,420

)

242,877

Tax on profit

762,981

576,999

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

3,086,911

2,296,661

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

771,728

574,165

Effects of:

Expenses not deductible for tax purposes

430

1,888

Depreciation in excess of capital allowances

1,383

946

Adjustments in respect of prior periods

(10,560

)

-

Total tax charge

762,981

576,999

10.

DIVIDENDS

2025

2024

£

£

Ordinary shares of 1 each

Interim

2,300,000

2,040,000

11.	PROPERTY, PLANT AND EQUIPMENT

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 April 2024

138,354

1,822,362

389,463

2,702,908

5,053,087

Additions

-

176,590

72,863

383,518

632,971

Disposals

-

(74,250

)

-

(150,445

)

(224,695

)

At 31 March 2025

138,354

1,924,702

462,326

2,935,981

5,461,363

DEPRECIATION

At 1 April 2024

84,856

1,631,207

287,214

1,076,989

3,080,266

Charge for year

5,534

122,067

56,495

577,598

761,694

Eliminated on disposal

-

(51,975

)

-

(125,164

)

(177,139

)

At 31 March 2025

90,390

1,701,299

343,709

1,529,423

3,664,821

NET BOOK VALUE

At 31 March 2025

47,964

223,403

118,617

1,406,558

1,796,542

At 31 March 2024

53,498

191,155

102,249

1,625,919

1,972,821

12.	INVENTORIES

2025

2024

£

£

Raw materials

36,827

28,971

Work-in-progress

6,957,675

3,160,267

6,994,502

3,189,238

13.

RECEIVABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade receivables

1,687,202

2,015,529

Amounts owed by group undertakings

2,034,776

1,623,976

Amounts owed by related parties

5,844

954

Other receivables

7,740

6,640

Tax

34,034

-

Prepayments and accrued income

791,526

566,115

4,561,122

4,213,214

Amounts owed by group companies and related parties are considered to be repayable on demand. No interest is charged in respect of such advances.