J K R Contractors Ltd.

	Page
Company Information	1
Strategic Report	2
Directors' Report	3—4
Independent Auditor's Report	5—8
Profit and Loss Account	9
Statement of Comprehensive Income	10
Balance Sheet	11
Statement of Changes in Equity	12
Statement of Cash Flows	13
Notes to the Statement of Cash Flows	14
Notes to the Financial Statements	15—23

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Strategic Report

For The Year Ended 31 March 2025

Strategic Report

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

Review of the Business

The company continues to specialise in civil engineering including drainage, earth works, road works, hard landscaping, utility installation and various other civil engineering projects throughout the North East of Scotland.

This financial year has shown a trading profit before tax amounting to £1,605,613 (2024: loss of £3,893,000 – result of restructure). The 2024 results included the effect of transactions relating to a restructure during the year which involved the inclusion of the company into a group of companies under the same ownership and management. The prior year results are, solely due to the restructure, significantly different from the norm for the company and the 2005 position reflects a return to the results expected. As intended, the company has maintained the level of revenue in the current year as a result of continuing to build on previous relationships as well as developing new ones.

The company remains in a strong financial position at the year end, due to a successful year despite continued challenges across the wider economy in relation to increasing costs. The local market, whilst competitive, remains buoyant with several large projects planned in the near future for the local area.

Principal Risks and Uncertainties

Risk management is addressed through a framework of policies, procedures and internal controls. All policies are subject to Board approval and ongoing review by management. Compliance with all regulation and legal requirements is a high priority for the company.

The principal risks and uncertainties for the business continue to relate to the supply of labour and tradesmen. However, the company mitigate this by actively investing in the recruitment and development of younger people through apprenticeships and trainee schemes. The company continues to monitor these market conditions closely and implement such measures as necessary to mitigate these risks to the company, in order to remain competitive.

A risk which has increased in prominence over recent years is potential business failure of the main contractors for whom projects are being carried out. This risk is managed by close monitoring of contract payment terms and consideration when engaging with new customers.

Financial performance of the company is monitored on an ongoing basis to ensure cash flow remains at desired levels with credit control being managed in relation to credit limits and ageing which ensures sufficient funds are available to meet all liabilities as they fall due.

Future Developments

In the coming year the company plans to continue to develop existing and pursue new relationships to maintain the growth achieved to date.

Key Performance Indicators

The main key performance indicators were as follows:

Gross profit margin - 2025: 19.7% (2024: 20.3%)

Net profit/(loss) before tax - 2025: £1,605,613 (2024: (£3,893,000))

Key performance indicators are monitored by the Board throughout the year to ensure they are in line with expectations.

On behalf of the board

Mr K Taylor

Director

9 December 2025

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J K R Contractors Ltd.

Company No. SC316582

Directors' Report For The Year Ended 31 March 2025

Directors' Report

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

Principal Activity

The company's principal activity continues to be that of civil engineering and concrete works.

Dividends

The value of dividends paid amounted to £203,616 .

Political Donations and Expenditure

During the year the company made various charitable donations to local charities. There were no political donations made.

Directors

The directors who held office during the year were as follows:

Mr R Taylor

Mr K Taylor

Mr J Taylor

Mrs A Taylor

Mrs P Taylor

Mr P Fawns

Post Balance Sheet Events

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

Matters covered in the Strategic Report

Disclosures required under s416(4) of the Companies Act 2006 are commented upon in the Strategic Report as the directors consider them to be of strategic importance to the business.

Statement of Directors' Responsibilities

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, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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 the financial statements the directors are required to:

select suitable accounting policies and then apply them consistently;
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards, comprising FRS102, 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 responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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J K R Contractors Ltd.

Directors' Report (continued)

For The Year Ended 31 March 2025

Statement of Disclosure of Information to Auditors

So far as the director is 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 he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Independent Auditors

The auditors, Nuvo Audit Limited, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.

On behalf of the board

Mr K Taylor

Director

9 December 2025

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Independent Auditor's Report

to the Members of

J K R Contractors Ltd.

Independent Auditor's Report

Opinion

We have audited the financial statements of J K R Contractors Ltd. for the year ended 31 March 2025 which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes of Equity, Cash Flow Statement and the related notes, 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

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/(loss) 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 entity's ability to continue as a going concern for a period of at least 12 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. 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

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Independent Auditor's Report (continued)

to the Members of

J K R Contractors Ltd.

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 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 or 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 3—4, 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.

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Independent Auditor's Report (continued)

to the Members of

J K R Contractors Ltd.

Auditor's 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 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.

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

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, focusing on provisions of those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks identified include:

- UK GAAP

- Companies Act 2006

- Corporation Tax legislation

- VAT legislation

- Health and Safety legislation

We gained an understanding of how the company is complying with these laws and regulations by:

- enquiry of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims;

- enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;

- reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. The following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

- reviewing the level of and reasoning behind the company's procurement of legal and professional services;

- performing audit procedures over the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business and reviewing judgements made by the management in their calculation of accounting estimates for potential management bias.

Our audit procedures were designed to respond to the risk of material misstatement in the financial statements, recognising that the risk of not detecting a material risk due to fraud is higher than the risk of not detecting one resulting from error as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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

Alison Brown (Senior Statutory Auditor)

for and on behalf of Nuvo Audit Limited , Statutory Auditor

9 December 2025

...CONTINUED

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Independent Auditor's Report (continued)

to the Members of

J K R Contractors Ltd.

Nuvo Audit Limited

First Floor, Sterling House

Outrams Wharf

Little Eaton

Derby

DE21 5EL

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J K R Contractors Ltd.

Profit and Loss Account

For The Year Ended 31 March 2025

Profit and Loss Account

		2025	2024
	Notes	£	£
TURNOVER	3	32,975,601	32,288,911
Cost of sales		(26,465,010 )	(25,747,898 )

GROSS PROFIT		6,510,591	6,541,013

Administrative expenses		(5,018,915 )	(10,453,137 )
Other operating income		157,136	266,666

OPERATING PROFIT/(LOSS)	5	1,648,812	(3,645,458 )
Profit/(loss) on disposal of fixed assets		62,673	(1,879 )
Other interest receivable and similar income	10	6,227	16,673
Interest payable and similar charges	11	(112,099 )	(262,336 )

PROFIT/(LOSS) BEFORE TAXATION		1,605,613	(3,893,000 )
Tax on Profit/(loss)	12	(406,471 )	(139,704 )

PROFIT/(LOSS) AFTER TAXATION BEING PROFIT/(LOSS) FOR THE FINANCIAL YEAR		1,199,142	(4,032,704 )

The notes on pages 14 to 23 form part of these financial statements.

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J K R Contractors Ltd.

Statement of Comprehensive Income

For The Year Ended 31 March 2025

Statement of Comprehensive Income

	2025	2024
	£	£
PROFIT FOR THE FINANCIAL YEAR	1,199,142	(4,032,704 )
OTHER COMPREHENSIVE INCOME FOR THE YEAR	-	-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR	1,199,142	(4,032,704 )

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J K R Contractors Ltd.

Balance Sheet

As At 31 March 2025

Balance Sheet

		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	13		5,544,719		5,800,248

			5,544,719		5,800,248
CURRENT ASSETS
Stocks	14	821,805		864,359
Debtors	15	13,933,829		14,654,191
Cash at bank and in hand		1,169,371		138,418

		15,925,005		15,656,968
Creditors: Amounts Falling Due Within One Year	16	(8,093,966 )		(8,962,414 )

NET CURRENT ASSETS (LIABILITIES)			7,831,039		6,694,554

TOTAL ASSETS LESS CURRENT LIABILITIES			13,375,758		12,494,802

Creditors: Amounts Falling Due After More Than One Year	17		(1,719,978 )		(1,839,539 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(1,211,258 )		(1,206,267 )

NET ASSETS			10,444,522		9,448,996

CAPITAL AND RESERVES
Called up share capital	20		100		100
Profit and Loss Account			10,444,422		9,448,896

SHAREHOLDERS' FUNDS			10,444,522		9,448,996

The financial statements were approved by the board of directors on 9 December 2025 and were signed on its behalf by:

Mr K Taylor

Director

The notes on pages 14 to 23 form part of these financial statements.

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J K R Contractors Ltd.

Statement of Changes in Equity

For The Year Ended 31 March 2025

Statement of Changes in Equity

	Share Capital	Other reserves	Profit and Loss Account	Total
	£	£	£	£
As at 1 April 2023	100	746,078	14,945,621	15,691,799
Loss for the year and total comprehensive income	-	-	(4,032,704 )	(4,032,704)

Dividends paid	-	-	(2,210,098)	(2,210,098)
Non distributable reserves - revaluation	-	(746,078)	-	(746,078)
Transfer from revaluation reserve	-	-	746,077	746,077

As at 31 March 2024 and 1 April 2024	100	-	9,448,896	9,448,996


Profit for the year and total comprehensive income	-	-	1,199,142	1,199,142

Dividends paid	-	-	(203,616)	(203,616)

As at 31 March 2025	100	-	10,444,422	10,444,522

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J K R Contractors Ltd.

Statement of Cash Flows

For The Year Ended 31 March 2025

Statement of Cash Flows

		2025	2024
	Notes	£	£
Cash flows from operating activities
Net cash generated from/(used in) operations	1	3,696,384	(3,443,713 )
Interest paid		(112,099 )	(251,705 )
Tax (paid)/refunded		(361,371 )	260,223

Net cash generated from/(used in) operating activities		3,222,914	(3,435,195 )

Cash flows from investing activities
Purchase of tangible assets		(791,002 )	(1,226,133 )
Proceeds from disposal of tangible assets		121,900	697,197
Interest received		6,227	16,673
Proceeds from sale of investment property		-	5,469,000

Net cash (used in)/generated from investing activities		(662,875 )	4,956,737

Cash flows from financing activities
Equity dividends paid		(203,616 )	(2,210,098 )
Repayment of bank borrowings		(2,519,672 )	(117,254 )
Repayment of finance leases		(253,596 )	(314,147 )
Advance of new loans to group undertakings		-	(6,350,128 )
Repayment of loans to group undertakings		1,368,121	-
Repayment of loans to other participating interests		-	6,768,276
Amount introduced by directors		58,913	85,679
Amount withdrawn by directors		(103,946)	(129,622)
Grants received		124,710	225,213

Net cash used in financing activities		(1,529,086 )	(2,042,081 )



Increase/(decrease) in cash and cash equivalents		1,030,953	(520,539 )
Cash and cash equivalents at beginning of year	2	138,418	658,957

Cash and cash equivalents at end of year	2	1,169,371	138,418

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J K R Contractors Ltd.

Notes to the Statement of Cash Flows

For The Year Ended 31 March 2025

Notes to the Statement of Cash Flows

1. Reconciliation of profit/(loss) for the financial year to cash generated from/(used in) operations

	2025	2024
	£	£
Profit/(loss) for the financial year	1,199,142	(4,032,704 )
Adjustments for:
Tax on profit/(loss)	406,471	139,704
Interest expense	112,099	251,705
Interest income	(6,227 )	(16,673 )
Depreciation of tangible assets	987,304	1,025,764
(Profit)/loss on disposal of tangible assets	(62,673)	1,879
Grant income	(124,710)	(225,213)
Movements in working capital:
Decrease/(increase) in stocks	42,554	(46,155 )
Increase in trade and other debtors	(649,213 )	(44,765 )
Increase/(decrease) in trade and other creditors	1,791,637	(497,255 )

Net cash generated from/(used in) operations	3,696,384	(3,443,713 )

2. Cash and cash equivalents

Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:

	2025	2024
	£	£
Cash at bank and in hand	1,169,371	138,418

3. Analysis of changes in net debt

	As at 1 April 2024	Cash flows	As at 31 March 2025
	£	£	£
Cash at bank and in hand	138,418	1,030,953	1,169,371
Finance leases	(1,529,420)	253,596	(1,275,824)
Debts falling due within one year	(2,519,672 )	2,519,672	-

	(3,910,674)	3,804,221	(106,453)

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J K R Contractors Ltd.

Notes to the Financial Statements

For The Year Ended 31 March 2025

Notes to the Financial Statements

1. General Information

J K R Contractors Ltd. is a private company, limited by shares, incorporated in Scotland, registered number SC316582 . The registered office is Backhill of Coldwells, Arthrath, Ellon, AB41 8YX.

The presentation currency of the financial statements is the Pound Sterling (£).

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.

2.2. Significant judgements and estimations

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.

2.3. Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

Turnover is only recognised on a construction contract where the outcome can be estimated reliably. Variations to, and claims arising in respect of, construction contracts are included in revenue to the extent that they have been agreed with the customer. Turnover and costs are recognised by reference to the stage of completion of contract activity at the balance sheet date. This is normally measured by surveys of work performed to date. An estimate of the profit attributable to work completed is recognised once the outcome of the contract can be assessed with reasonable certainty. Contracts are only treated as construction contracts when they have been specifically negotiated for the construction of a development or property. When it is probable that the total costs on a construction contract will exceed contract revenue, the expected loss is recognised as an expense in the profit & loss account immediately.

Amounts recoverable on construction contracts are included in trade receivables and stated at cost plus attributable profit less any foreseeable losses. The costs on contracts not yet taken to the profit and loss account less related foreseeable losses and payments on account are shown in stocks and work in progress. Payments received in excess of amounts recoverable on construction contracts are included in payments on account within creditors.

2.4. Tangible Fixed Assets and Depreciation

At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Assets held under finance leases are depreciated in the same way as owned assets.

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant & Machinery	25% reducing balance and 10% straight line
Motor Vehicles	25% reducing balance and 16% straight line
Fixtures & Fittings	25% reducing balance
Computer Equipment	25% reducing balance

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within adminstrative expenses in the profit and loss account.

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J K R Contractors Ltd.

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

2.5. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

2.6. Stocks and Work in Progress

Work in progress, including land, is valued at the lower of cost and net realisable value.

Costs include raw materials, consumables and direct labour. Net realisable value is based on estimated selling price less anticipated costs to completion. Provision is made for all foreseeable losses.

2.7. Cash and Cash Equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.

2.8. Financial Instruments

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other debtors and cash and bank balances are measured at transaction price including transaction costs.

Financial assets are derecognised when the contractual rights to cash flows from the asset expire or are settled or when the company transfers the risks and rewards of ownership to another entity.

Basic financial liabilities

Basic financial liabilities, which include trade and other creditors and bank loans payable within one year are not amortised and is recognised at transaction price.

Debt instruments are initially recognised at transaction price plus transaction cost and subsequently carried at amortised cost using the effective interest rate method.

Financial liabilities are derecognised when the company's contractual obligations are discharged.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

2.9. Taxation

Income 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 profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.

Deferred tax

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

...CONTINUED

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J K R Contractors Ltd.

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

2.9. Taxation - continued

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

2.10. Pensions

The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

2.11. Construction contracts

Amounts recoverable on construction contracts, which are included in debtors, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on contracts, less amounts received as progress payments on account.

The "percentage of completion method" is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Cost incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

3. Turnover

The turnover and profit before taxation are attributable to the principal activities of the company.

Contract revenue recognised in the period is:

	2025	2024
	£	£
United Kingdom	32,975,601	32,288,911

	32,975,601	32,288,911

4. Other Operating Income

	2025	2024
	£	£
Grant income	124,710	225,213
Rental income	-	37,625
Other operating income	32,426	3,828

	157,136	266,666

5. Operating Profit/(loss)

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

	2025	2024
	£	£
Bad debts	328,404	209,584
Depreciation of tangible fixed assets	987,304	1,025,764

6. Auditor's Remuneration

Remuneration received by the company's auditors and their associates during the year was as follows:

	2025	2024
	£	£
Audit Services
Audit of the company's financial statements	12,425	12,950

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J K R Contractors Ltd.

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

7. Staff Costs

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

	2025	2024
	£	£
Wages and salaries	7,203,711	7,015,358
Social security costs	785,840	766,516
Other pension costs	564,060	447,361

	8,553,611	8,229,235

8. Average Number of Employees

Average number of employees, including directors, during the year was as follows:

	2025	2024
Engineers	6	6
Estimators	4	4
Surveyors	6	5
Buyers	1	1
Admin and Finance	6	5
Contract managers	4	4
H & S Officers	1	2
Operational staff	108	99
Directors	7	7

	143	133

9. Directors' remuneration

	2025	2024
	£	£
Emoluments	335,009	268,455
Company contributions to money purchase pension schemes	353,401	263,311

	688,410	531,766

Information regarding the highest paid director was as follows:

	2025	2024
	£	£
Emoluments	227,255	223,955
Company contributions to money purchase pension schemes	10,400	9,061

	237,655	233,016

10. Interest Receivable and Similar Income

	2025	2024
	£	£
Bank interest receivable	4,622	5,319
Other interest receivable	1,605	11,354

	6,227	16,673

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J K R Contractors Ltd.

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

11. Interest Payable and Similar Charges

	2025	2024
	£	£
Bank loans and overdrafts	34,333	174,765
Finance charges payable under finance leases and hire purchase contracts	77,757	87,571
Late payment tax charges	9	-

	112,099	262,336

12. Tax on Profit

	Tax Rate		2025	2024
The tax charge on the profit/(loss) for the year was as follows:
	2025	2024	£	£
Current tax
UK Corporation Tax	25.0%	25.0%	401,480	229,687
Prior period adjustment			-	(3,129 )

			401,480	226,558
Deferred Tax
Deferred taxation			4,991	(86,854 )


Total tax charge for the period			406,471	139,704


The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit/(loss) and the standard rate of corporation tax as follows:
			2025	2024
			£	£
Profit before tax			1,605,613	(3,893,000)

Tax on profit at 25% (UK standard rate)			401,403	(973,250 )
Expenses not deductible for tax purposes			251,893	1,934
Tax losses utilised			-	(92,203 )
Capital allowances			(236,148 )	(107,473 )
Short term timing differences			4,991	(86,854 )
Prior period adjustment			-	(3,129 )
Revenue exempt from taxation			(15,668 )	-
Group relief			-	1,400,679

Total tax charge for the period			406,471	139,704

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J K R Contractors Ltd.

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

13. Tangible Assets

	Plant & Machinery	Motor Vehicles	Fixtures & Fittings	Computer Equipment	Total
	£	£	£	£	£
Cost
As at 1 April 2024	11,625,554	1,587,679	34,957	60,187	13,308,377
Additions	649,816	136,095	-	5,091	791,002
Disposals	(348,739 )	(34,515 )	-	-	(383,254 )

As at 31 March 2025	11,926,631	1,689,259	34,957	65,278	13,716,125

Depreciation
As at 1 April 2024	6,634,678	814,902	27,645	30,904	7,508,129
Provided during the period	775,413	201,941	1,828	8,122	987,304
Disposals	(293,195 )	(30,832 )	-	-	(324,027 )

As at 31 March 2025	7,116,896	986,011	29,473	39,026	8,171,406

Net Book Value
As at 31 March 2025	4,809,735	703,248	5,484	26,252	5,544,719

As at 1 April 2024	4,990,876	772,777	7,312	29,283	5,800,248

Included above are assets held under finance leases or hire purchase contracts with a net book value as follows:

	2025	2024
	£	£
Plant & Machinery	2,296,430	2,464,526
Motor Vehicles	77,142	98,181

	2,373,572	2,562,707

14. Stocks

	2025	2024
	£	£
Stock	821,805	864,359

15. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	851,076	727,889
Amounts recoverable on contracts	202,200	-
Prepayments and accrued income	5,663,515	5,639,720
Other debtors	322,061	137,997
VAT	454,591	411,478
Directors' loan accounts	319,739	321,193
Amounts owed by group undertakings	4,982,007	6,350,128

	12,795,189	13,588,405
Due after more than one year
Trade debtor retentions	1,138,640	1,065,786

	13,933,829	14,654,191

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J K R Contractors Ltd.

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

16. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	694,486	755,667
Trade creditors	4,873,030	3,399,819
Bank loans and overdrafts	-	2,519,672
Corporation tax	188,193	148,084
Other taxes and social security	253,100	229,653
Other creditors	16,500	38,203
Accruals and deferred income	1,834,221	1,590,393
Directors' loan accounts	234,436	280,923

	8,093,966	8,962,414

The company was advanced a loan of £1,435,000 in November 2018. The loan is repayable in 60 monthly installments. The rate of interest is 2.75% per annum over the Base Rate. This loan was repaid in full during the year.

The company was advanced a loan of £1,635,000 in November 2018. The loan is repayable in 60 monthly installments. The rate of interest is fixed at 4.56% per annum. This loan was repaid in full during the year.

17. Creditors: Amounts Falling Due After More Than One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	581,338	773,753
Accruals and deferred income	1,138,640	1,065,786

	1,719,978	1,839,539

A bond and floating charge is held by The Royal Bank of Scotland over all the assets of the company.

A standard security is held by The Royal Bank of Scotland in respect of the ground at Backhill of Coldwells.

A standard security is held by The Royal Bank of Scotland in respect of the farmland and buildings at Cairnfechel Farm, Udny.

An unlimited inter-company guarantee is held by The Royal Bank of Scotland between all companies within the group.

18. Obligations Under Finance Leases and Hire Purchase

	2025	2024
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	694,486	755,667
Later than one year and not later than five years	581,338	773,753

	1,275,824	1,529,420

	1,275,824	1,529,420

19. Provisions for Liabilities


	Deferred Tax	Total
	£	£
As at 1 April 2024	1,206,267	1,206,267
Deferred taxation	4,991	4,991

Balance at 31 March 2025	1,211,258	1,211,258

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J K R Contractors Ltd.

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

20. Share Capital

	2025	2024
Allotted, called up and fully paid	£	£
100 Ordinary Shares of £ 1.00 each	100	100

21. Capital Commitments

	2025	2024
	£	£
At the end of the period	-	561,500

At the end of the prior period, the company had no capital commitments contracted for but not provided in the financial statements.

22. Other Commitments

The total of future minimum lease payments under non-cancellable operating leases are as following:

	2025	2024
	£	£
Not later than one year	5,379	5,379
Later than one year and not later than five years	13,831	19,210

	19,210	24,589

23. Pension Commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.

During the year the charge to the profit and loss account in respect of defined contribution schemes was £564,060 (2024: £447,361).

At the balance sheet date contributions of £41,060 (2024: £59,158) were due to the fund and are included in creditors.

24. Directors Advances, Credits and Guarantees

Included within Debtors and Creditors are the following loans to/from directors:

	As at 1 April 2024	Amounts advanced	Amounts repaid	Amounts written off	As at 31 March 2025
	£	£	£	£	£
Mr Ryan Taylor	166,269	22,655	(22,793 )	-	166,131
Mr Kevin Taylor	154,923	21,477	(22,793 )	-	153,607
Mr Jim Taylor	(191,529 )	26,909	(7,559 )	-	(172,179 )
Mrs Audrey Taylor	(89,394 )	32,904	(5,767 )	-	(62,257 )

The above loans are unsecured, interest free and repayable on demand.

25. Dividends

	2025	2024
	£	£
On equity shares:
Final dividend paid	203,616	2,210,098

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J K R Contractors Ltd.

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

26. Post Balance Sheet Events

In June 2025, the company has entered into an agreement to purchase an asset amounting to £117,000 and in August 2025 has entered a further agreement to purchase assets amounting to £234,000.

In May 2025, the company has committed to purchase an asset amounting to £368,169 and in December 2025 has committed to purchase three further assets amounting to £790,000.

27. Related Party Disclosures

The company has taken advantage of exemption, under 33.1A of the Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", not to disclose transactions with wholly owned subsidiaries within the group.

Key management personnel (including directors) received compensation of £645,569 (2024: £555,593) during the year.

28. Controlling Parties

The company's immediate parent undertaking is JKR Group (Holdings) Limited .

The ultimate parent undertaking is (incorporated in Scotland). Its registered office is Backhill of Coldwells, Arthrath, Ellon, Aberdeenshire, United Kingdom, AB41 8YX .

Copies of the group accounts may be obtained from the company's registered office.

The company is ultimately controlled by Audrey Taylor, James Taylor, Kevin Taylor and Ryan Taylor by virtue of their

shareholding in the parent company, JKR Group (Holdings) Limited.

29. Exceptional Items

During the prior year to 31 March 2024, loan balances totalling £5,559,184 were written off as part of a group restructure. There are no exceptional items in the year to 31 March 2025.

Page 23