REGISTERED NUMBER: 03025383 (England and Wales)

Randalls (Groundworks) Limited

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

M Randall

C W Davies

H L John

M J Sheppard

D Machajewski

SECRETARY:

C Randall

REGISTERED OFFICE:

Unit 2 Cwmdraw Industrial Estate

Newtown

Ebbw Vale

NP23 5AE

REGISTERED NUMBER:

03025383 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

Chartered Accountants

& Statutory Auditors

Suite 2d

Building 1 Eastern Business Park

St Mellons

Cardiff

South Glamorgan

CF3 5EA

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

REVIEW OF BUSINESS

The annexed financial statements indicate the results for the year along with the financial standing and accounting details of the company.

The company continues to operate as a groundwork contractor to major UK house builders within the South Wales region. The company's revenue decreased by 30.80% to £14.4m (2024: £20.8m). During the year, the company had a number of contracts coming to and end however, the company had been awarded new contracts with an average length of three years, the company continues to successfully tender for new contracts post year end. Gross profits margins have improved this year as a result of efficiencies within the company..

The company continued to employ strong personnel with reputable backgrounds, this policy along with other business strategies taken by the directors, ensured that the company has a strong platform to build upon. It is in the view of the directors that the company ended the year with the necessary structure and resources to continue.

The company's key performance indicators of the effectiveness of its operations is both the gross and net profit margin, the directors continues to improve efficiencies within the company.

2025

2024

2023

Turnover

£14,378,3669

£20,777,342

£17,394,004

Turnover growth

(30.80%

)

19.45%

27.24%

Gross profit margin

9.59%

7.44%

9.02%

Profit before tax

£238,392

£291,970

£528,116

The long term goal of the company is to increase turnover and profitability whilst maintaining its reputation and financial decision making. The company has continued to invest within the group, with investment in fixed assets, its employees, training and improvement of IT systems, this approach as resulted in an increase in the company's net profit margin

The company has maintained a strong balance sheet, with cash reserves healthy at all times. Bad debt is very low, and risk is subsequently a lot lower than the construction industry as a whole, due to reputable client base and the company's business plan.

PRINCIPAL RISKS AND UNCERTAINTIES

The company operates in a highly competitive market which is a continuing risk to the company and could result in losing sales to its key competitors. The company manages this risk by focusing on quality of service.

The company's principle financial instruments comprise of bank balances, bank overdrafts, trade creditors, trade debtors, support from group companies. The company does not use derivative financial instruments for speculative purposes.

The company's principal financial assets are bank balances, cash, trade and other receivables.

The company's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. The company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, we use a mixture of long term equity and short term debt finance and bank overdraft funding if needed.

We are optimistic about the future prospects of the company as the much publicised shortage of housing in the country ensures demand for our services. We have an established team which allows us to diversify between the public and private sector housing markets.

Labour shortages - the industry has experienced a record number of labour shortages and as such, is continuously high on the company's risk register. We have managed to deliver our services in line with client requirements, even through times of difficult recruitment periods. The company has a low turnover of staff in management positions, which maintains consistency in our workforce.

Inflation and material increases - consumer price inflation has eased during the period but like other sectors the cost of materials, goods and services continues to be high. The company has continued to negotiate terms and prices with supply chain and procured in bulk for economies of scale to reduce costs on high usage materials. The company's long term contracts have consumer price inflation increases built in and as such have worked with clients to apply these appropriately across the contracts. Any new contracts have been priced appropriately and where approvals are taking longer than expected, have been re-priced appropriately in line with the period inflation.

The directors are confident that the group has sufficient working capital to fund the business during these uncertain times.

RESEARCH AND DEVELOPMENT

The company is currently undertaking research and development to improve and develop on groundwork activities within the sector.

ON BEHALF OF THE BOARD:

M Randall - Director

10 December 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of civil engineering.

DIVIDENDS

An interim dividend of £23.1119 per share was paid 28 March 2025. The directors recommend that no final dividend be paid. The total distribution of dividends for the year ended 31 March 2025 was be £231,119.

FUTURE DEVELOPMENTS

The company actively tenders for development contracts and continues to be successful in being awarded new contracts. The company continues to invest in IT systems and its workforce.

The board of directors and the senior management team have collectively implemented initiatives to achieve a sustainable future for the business. We continue to monitor our capital expenditure, liquidity, funding and financial risk management to ensure the company is well positioned to manage any future periods of uncertainty. We have in place procedures and policies to allow works to continue in a safe and efficient manner. The processes that we have in place provide a solid foundation and the directors are confident of continued successful growth.

During the year the group acquired a waste management company which compliments the activities of the group. This acquisition allows the group/company to manage its waste products effectively resulting in an increase in the recycling of the construction waste of the group/company.

We are confident that this multi-faceted approach to improve the business will place us in a sustainable position for the future.

DIRECTORS

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

M Randall

C W Davies

H L John

M J Sheppard

D Machajewski

FINANCIAL INSTRUMENTS

The company's principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to raise funds for the company's operations and to provide working capital.

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Financial support from parent and other subsidiary undertakings is provided and available to support financing the company's operations.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M Randall - Director

10 December 2025

Opinion

We have audited the financial statements of Randalls (Groundworks) Limited (the 'company') for the year ended 31 March 2025 which comprise the Statement of Comprehensive Income, 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 Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, 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 Statement of Directors' Responsibilities set out on pages four and 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following:

-

The nature of the industry and sector, control environment and business performance including the company's

performance targets and tenders for new contracts;

-

Results of the enquiries of management about their own identification and assessment of the risks of

irregularities;

-

Any matters we have identified having obtained and reviewed the company's documentation of their

policies and procedures relating to:

--

identifying, evaluating and complying with laws and regulations and whether they were aware of any

instances of noncompliance;

--

detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected

or alleged fraud;

--

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

--

the matters discussed among the audit engagement team regarding how and where fraud might occur in

the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income, provisions for foreseeable losses on contracts and value of stocks. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety, pensions legislation and tax legislation.

As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

-

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance

with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

-

enquiring of management concerning actual and potential litigation and claims;

-

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of

material misstatement due to fraud;

-

reviewing correspondence with HMRC;

and

-

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

indicative of a potential bias; and evaluating the business rationale of any significant transactions that are

unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error.

In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following:

-

The nature of the industry and sector, control environment and business performance including the company's

performance targets and tenders for new contracts;

-

Results of the enquiries of management about their own identification and assessment of the risks of

irregularities;

-

Any matters we have identified having obtained and reviewed the company's documentation of their

policies and procedures relating to:

--

identifying, evaluating and complying with laws and regulations and whether they were aware of any

instances of noncompliance;

--

detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected

or alleged fraud;

--

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

--

the matters discussed among the audit engagement team regarding how and where fraud might occur in

the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income, provisions for foreseeable losses on contracts and value of stocks. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety, pensions legislation and tax legislation.

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Catherine Ingram FCCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Chartered Accountants

& Statutory Auditors

Suite 2d

Building 1 Eastern Business Park

St Mellons

Cardiff

South Glamorgan

CF3 5EA

11 December 2025

TURNOVER

14,378,369

20,777,342

Cost of sales

12,998,774

19,231,775

GROSS PROFIT

1,379,595

1,545,567

Administrative expenses

1,161,834

1,248,067

OPERATING PROFIT

4

217,761

297,500

Interest receivable and similar income

20,631

4,284

238,392

301,784

Interest payable and similar expenses

5

-

9,814

PROFIT BEFORE TAXATION

238,392

291,970

Tax on profit

6

60,542

(10,038

)

PROFIT FOR THE FINANCIAL YEAR

177,850

302,008

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

177,850

302,008

FIXED ASSETS

Tangible assets

8

326,446

348,263

CURRENT ASSETS

Stocks

9

340,901

280,859

Debtors

10

2,005,654

2,688,252

Cash at bank and in hand

831,748

820,478

3,178,303

3,789,589

CREDITORS

Amounts falling due within one year

11

2,653,896

3,233,233

NET CURRENT ASSETS

524,407

556,356

TOTAL ASSETS LESS CURRENT LIABILITIES

850,853

904,619

PROVISIONS FOR LIABILITIES

12

434,170

434,667

NET ASSETS

416,683

469,952

CAPITAL AND RESERVES

Called up share capital

13

100,000

100,000

Retained earnings

14

316,683

369,952

SHAREHOLDERS' FUNDS

416,683

469,952

The financial statements were approved by the Board of Directors and authorised for issue on 10 December 2025 and were signed on its behalf by:

M Randall - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

100,000

420,637

520,637

Changes in equity

Dividends

-

(352,693

)

(352,693

)

Total comprehensive income

-

302,008

302,008

Balance at 31 March 2024

100,000

369,952

469,952

Changes in equity

Dividends

-

(231,119

)

(231,119

)

Total comprehensive income

-

177,850

177,850

Balance at 31 March 2025

100,000

316,683

416,683

1.	STATUTORY INFORMATION

Randalls (Groundworks) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in theses financial statements are rounded to the nearest £.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepared 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.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;

•

the requirement of paragraph 33.7.

The financial statements of the company are consolidated in the financial statements of Randalls Holdings Limited. These consolidated financial statements are available from its registered office, Unit 2, Cwmdraw Industrial Estate, Newtown, Ebbw Vale NP23 5AE.

Significant judgements and estimates

The application of the company's accounting policies, the management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Turnover

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

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Government grants

Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

1% on cost

Plant and machinery

-

33% on cost and 25% on cost

Motor vehicles

-

20% on cost

Computer equipment

-

33% on cost and 25% on cost

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

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 and loss.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at cost. Adjusted where applicable for any loss of service potential.

Cash and Cash Equivalents

Cash and cash equivalents comprise of cash at bank and in hand, demand deposits with banks and bank overdrafts. In the statement of financial position, bank overdrafts are shown within current liabilities.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase are depreciated over their estimate useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Employee benefits

The cost of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a construction contract cannot be estimated reliably, contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.

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. Costs 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 it is probable they will be recovered.

Bank interest accruing on capital borrowed to fund the production of long term contracts is carried forward within long term contract balances.

Provisions and contingencies

i) Provisions

Provisions are recognised when the company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations might be small.

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 time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost.

ii) Contingencies

Contingent liabilities are not recognised, except those acquired in a business combination. Contingent liabilities arise as a result of past events when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the company's control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote.

Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow of economic benefits is probable.

3.	EMPLOYEES AND DIRECTORS

31.3.25

31.3.24

£

£

Wages and salaries

7,599,085

10,714,533

Social security costs

120,158

109,779

Other pension costs

159,995

70,483

7,879,238

10,894,795

The average number of employees during the year was as follows:

31.3.25

31.3.24

Direct labour

72

88

Administration

47

43

Directors

3

4

122

135

31.3.25

31.3.24

£

£

Directors' remuneration

421,314

426,434

Directors' pension contributions to money purchase schemes

17,086

11,245

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

4

Information regarding the highest paid director is as follows:

31.3.25

31.3.24

£

£

Emoluments etc

149,912

141,843

Pension contributions to money purchase schemes

5,830

3,975

Mr M Randall is remunerated by Randalls (Holdings) Limited for his services to the group as a whole. It is not practical to allocate the directors emoluments between the services to the company and other entities in the group.

4.	OPERATING PROFIT

The operating profit is stated after charging:

31.3.25

31.3.24

£

£

Hire of plant and machinery

2,906,475

4,244,537

Depreciation - owned assets

21,817

5,162

The auditors are remunerated by Randalls (Holdings) Limited for their services to the group as a whole. Audit fees relating to Randalls (Groundworks) Limited were £8,850. Remuneration for non-audit services was £1,050.

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.25

31.3.24

£

£

Bank interest

-

9,814

6.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

31.3.25

31.3.24

£

£

Current tax:

UK corporation tax

65,082

74,463

R&D refund

-

(94,192

)

Total current tax

65,082

(19,729

)

Deferred tax

(4,540

)

9,691

Tax on profit

60,542

(10,038

)

UK corporation tax has been charged at 25% (2024 - 25%).

Reconciliation of total tax charge/(credit) included in profit and loss

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

31.3.25

31.3.24

£

£

Profit before tax

238,392

291,970

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

59,598

72,993

Effects of:

Expenses not deductible for tax purposes

-

180

Depreciation in excess of capital allowances

944

1,290

Adjustments to tax charge in respect of previous periods

-

(94,192

)

Origination and reversal of timing differences

-

9,691

Total tax charge/(credit)

60,542

(10,038

)

7.

DIVIDENDS

31.3.25

31.3.24

£

£

Interim

231,119

352,693

8.	TANGIBLE FIXED ASSETS

Freehold

Plant and

Motor

Computer

property

machinery

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 April 2024

and 31 March 2025

365,343

18,750

188,417

46,257

618,767

DEPRECIATION

At 1 April 2024

58,007

18,750

147,897

45,850

270,504

Charge for year

3,656

-

18,144

17

21,817

At 31 March 2025

61,663

18,750

166,041

45,867

292,321

NET BOOK VALUE

At 31 March 2025

303,680

-

22,376

390

326,446

At 31 March 2024

307,336

-

40,520

407

348,263