REGISTERED NUMBER: 01073245 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2025

for

Forkers Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

9

Statement of Income and Retained Earnings

12

Balance Sheet

13

Notes to the Financial Statements

14

DIRECTORS:

P Forker

R K Thomas

Ms B M Forker

Ms H Boyle

Ms R Curran

S J T Somerfield

I R Haywood

M C Mason

H C McCooey

T P Forker

D J Cartwright

SECRETARIES:

Ms H Boyle

Ms R Curran

REGISTERED OFFICE:

Golds Green House

Shaw Street

West Bromwich

West Midlands

B70 0TX

REGISTERED NUMBER:

01073245 (England and Wales)

SENIOR STATUTORY AUDITOR:

Susanna D Ault FCCA ACA

AUDITORS:

Tomkinson Teal (Lichfield) LLP

Hanover Court

5 Queen Street

Lichfield

Staffordshire

WS13 6QD

BANKERS:

Handelsbanken

67 Temple Row

Birmingham

West Midlands

B2 5LS

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

BUSINESS REVIEW AND FUTURE DEVELOPMENTS

The comments made by the directors in their last strategic report have been reflected in the company's results for the year ended 31 March 2025.

The company's turnover for the year was 94.9% higher than that of the previous year being £91,648,970 (2024: £47,028,537).

The increase in turnover was driven by increased workload on the civils side of the business, including a motorway contract valued at £22m which the company began and completed during the year. This also had a positive impact on profits during the year.

There are no further motorway contracts in the current pipeline.

The Asset Management Period 7 (AMP7) in the UK water industry, which ran from 2020 to 2025, concluded on 31 March 2025. To meet regulatory requirements, the conclusion of AMP7 led to an increased workload for the company within the year.

Net cash at the end of the year increased from £20.1m to £22.2m despite the demand for working capital to support the increased turnover.

Shareholder equity in the company increased to £24,508,487 (2024: £20,788,862)

AMP8, the eighth Asset Management Period for the UK water industry, officially began on 1 April 2025. The start of AMP8 has been slow, but this was expected as similar trends have been apparent in previous AMPs. The current lack of motorway contracts and the slow start of AMP8 will lead to a reduction in turnover during this financial year compared to the last financial year. The directors are expecting turnover in the region of £50m during this financial year. The reduction in turnover may impact profitability.

The reduction in turnover is expected to be temporary. The well publicised need for investment by water companies in their existing infrastructure and the need to create additional capacity means that their expenditure within these frameworks is expected to be much higher than previous regulatory periods.

The business obtained a new framework client during the year. The directors believe this will lead to exciting new opportunities for the business in the coming years.

The company currently holds four framework agreements with substantial clients, two in the water industry, one in environmental work and a further in work relating to waterways.

All this work relates to the beneficial health of the country and the directors are confident that work will continue for many years into the future.

The directors thank all the company's employees for their continuing work in helping the company to achieve successful outcomes now and going forward.

With an additional water company added to our existing client portfolio, we consider the Company to be in a very strong position.

PRINCIPAL RISKS AND UNCERTAINTIES

The Directors recognise that the company's operations expose it to a number of risks which could impact performance, reputation, and long-term sustainability. These risks are actively monitored and managed through robust governance, control frameworks, and ongoing investment in people, systems, and processes. The principal risks and uncertainties currently affecting Forkers are set out below.

________________________________________

Environmental and Sustainability Risks

Description: Increasing expectations from clients, regulators, and other stakeholders to demonstrate strong environmental, social, and governance (ESG) performance may affect the company's operations, competitiveness, and reputation.

Mitigation: The company continues to strengthen its ESG strategy and reporting, utilising recognised sustainability platforms such as EcoVadis. Environmental performance and carbon reduction initiatives are embedded across projects, supported by regular monitoring and continuous improvement.

________________________________________

Talent and Workforce Risk

Description: The ability to attract, retain, and develop skilled employees is critical to maintaining operational excellence and supporting future growth. A shortage of qualified personnel within the sector could limit delivery capacity and innovation.

Mitigation: The company offers competitive remuneration packages, clear career development pathways, and ongoing professional training. Strong emphasis is placed on employee engagement, wellbeing, and maintaining a positive, inclusive culture.

________________________________________

Workload and Market Cycles

Description: Fluctuations in workload, particularly during transitions between water authority Asset Management Plan (AMP) cycles, can lead to reduced utilisation and revenue volatility.

Mitigation: The company mitigates this exposure by maintaining relationships with a broad range of framework clients across multiple sectors and geographical regions, thereby balancing workload between different investment cycles.

________________________________________

Cybersecurity and Data Privacy

Description: The increasing frequency and sophistication of cyber threats present ongoing risks to data integrity, confidentiality, and business continuity.

Mitigation: The company invests in strong IT security infrastructure, regular penetration testing, and continuous system monitoring. Comprehensive staff training and awareness programmes reinforce data protection responsibilities and minimise human error.

________________________________________

Health and Safety Performance

Description: The construction and ground engineering environment involves activities with inherent health and safety risks. Failure to maintain high standards could result in injury, delays, or reputational harm.

Mitigation: The company places health and safety at the forefront of its culture. Additional SHEQ professionals have been recruited to mentor and train employees, reinforcing a proactive approach to safety management and continual improvement in performance.

________________________________________

Operational Risk

Description: Risks arising from internal processes, systems failures, supply chain disruption, or human error could affect contract delivery, quality, or client satisfaction.

Mitigation: Continuous improvements are being made to business systems and resilience measures. The company maintains a comprehensive business continuity plan, rigorous quality control processes, and invests in staff training to ensure operational reliability and client confidence.

________________________________________

Summary

The Directors are satisfied that appropriate systems are in place to identify, monitor, and manage the principal risks and uncertainties facing the business. These processes ensure that the company remains resilient and well positioned to deliver on its strategic objectives in a controlled and sustainable manner.

SECTION 172(1) STATEMENT

The Board of Directors confirm it has performed its duties in respect of section 172 of the Companies act 2006.

Specifically, the Board has considered long term factors that affect the Company's strategic directions.

The Board has engaged with its stakeholders, which assist the board in its decision-making process and in fulfilling its duty to promote the success of the Company as set out in Section 172

The Board has fulfilled their duties as follows:

On an ongoing basis, the board assess the major risks affecting the Company and develop appropriate responses to address those risks in an efficient and affective manner. This is taken into consideration when setting goals, budgets and forecasting financial performance. This ensures that the Company understands the financial impact of these risks and can respond to them on a timely basis.

Employees are the key to Forkers success. The Company engages with the employees on a regular basis.

Weekly meetings are held with all Supervisory staff to monitor health and safety performance and compliance. Monthly meetings are held with Senior Management eam to cover such topics as; health and safety, Customer care, sustainability/environment, financial performance, training and compliance.

The Company invests in the future of the business and has a successful mentoring plan to encourage young people into the Company.

Forkers aims to exceed its customers' expectations. We do this through communication and building strong business relationships with our clients. We further promote Forkers closely with our suppliers and our local communities. We understand our responsibility with our community and work hard to show how important that relationship is to the Company.

FINANCIAL RESULTS

The profit for the year, before taxation, amounted to £5,210,957 (2024: £3,774,149).

KEY PERFORMANCE INDICATORS

The company maintains a program of producing monthly financial and management reports that show the directors how the company is progressing.

The management reports are discussed with senior staff at monthly meetings.

KPIs in respect of the company's work performance are examined by larger clients and scored in respect of the level of success achieved by the company. A bad score may lead to the company not receiving future work.

ON BEHALF OF THE BOARD:

Ms R Curran - Director

20 November 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 of civil engineering working on projects relating to industries engaged in motor manufacturing, renewable energy projects, utilities including the water industry, rail and road maintenance, and ground reclamation and stabilization including mine infilling.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2025 will be £ 229,460 .

DIRECTORS

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

P Forker

R K Thomas

Ms B M Forker

Ms H Boyle

Ms R Curran

S J T Somerfield

I R Haywood

M C Mason

H C McCooey

T P Forker

D J Cartwright

EMPLOYEES

The company is very fortunate in having staff that work to a standard that complies with the company's ethos and appreciates the efforts and support given.The company has recently been engaging more staff as the company's turnover continues to increase.

Every effort is made that all employees are suited to their respective roles within the company.

Regular reviews are conducted with individual staff members to assess their progress at the company and to listen to their views. On occasions a member of staff may be moved to another position more suitable at the company.

The company has set up health and safety and mental health committees that meet on a regular basis to discuss up to date information received from the various agencies.

Any problems a member of staff has can be discussed with their line manager who in turn can bring it to the attention of one of the committees.

Annual medicals are arranged for all staff.

The company is an equal opportunity employer.

All staff are encouraged to attend training courses and toolbox talks and obtain the necessary certificates for their individual roles in the company. The certificates are required to enable the company to obtain the appropriate training grants from the CITB. Without the necessary certificates the company is not able to carry out work for certain motor clients.

The company offers apprenticeships for both office and site staff as it recognises the need to in the future fill any vacancies that become available.

ENVIRONMENTAL MATTERS

The company has replaced more than 85% of its fleet of polluting diesel cars with electric and hybrid/petrol ones to help with the challenge against climate change.

It is also increasing it's use of battery powered machinery.

Forkers have employed a suitably qualified Sustainability lead to help with our Clients NetZero ambitions.

SUSTAINABILITY

In the company's commitment to sustainability, Forkers has taken significant strides towards minimizing our environmental impact and reducing our carbon emissions. At the core of our sustainability journey is the employment of a dedicated professional whose expertise enables us to integrate sustainable practices into every area of our operations. We record and monitor various metrics, including carbon emissions, waste generation, and other environmental factors through our supply chain.

We have established a Science-Based Target (SBT), an essential step that aligns our carbon reduction goals with the latest climate science. This target not only drives our efforts to reduce carbon emissions but also ensures that our strategies are in line with global climate goals. Our commitment to sustainability is demonstrated through our partnership with EcoVadis, a leading sustainability ratings platform. By engaging with EcoVadis, we are held accountable to rigorous sustainability standards, guiding our continuous improvement efforts, and ensuring transparency in our practices.

One of our notable, ongoing initiatives in renewable energy includes the installation of solar panels on the roof of our yard warehouse. When completed, this will not only reduce our reliance on fossil fuels but also significantly cuts down our carbon footprint, by providing renewable electricity for our head office and plant yard. We have also started to use electric plant equipment, a testament to our dedication to transitioning away from traditional energy sources to sustainable alternatives. This plant equipment not only powers our operations but also sets an example for the industry, demonstrating the feasibility and advantages of embracing clean energy solutions.

Our sustainability journey is marked by comprehensive efforts, from rigorous monitoring and setting science-based targets to strategic partnerships, renewable energy investments, and embracing electric technology. These initiatives underscore our dedication to growing sustainability, ensuring that our construction activities not only meet the needs of the present but also preserve the planet for generations to come.

FUTURE DEVELOPMENTS

The company is endeavoring to obtain more work linked with the fight against climate change and has made connections with major companies involved in this field of work.

STREAMLINED ENERGY AND CARBON REPORTING

Executive Summary

Forkers Limited, with company number 01073245, presents this report summarising our energy usage, associated emissions, energy efficiency actions, and energy performance for the financial year ending 31 March 2025. This report complies with the requirements of the Streamlined Energy and Carbon Reporting (SECR) framework, as implemented by the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.

The SECR disclosures are mandatory for listed and large unlisted UK companies with reporting cycles beginning on or after 1 April 2019. As a company falling in scope, we are required to report on our energy consumption, greenhouse gas emissions, intensity ratios, and the energy efficiency measures we have taken or plan to implement. This is the first year that Forkers Limited has met the criteria by annual turnover and balance sheet total, necessitating the submission of this report.

Forkers Limited is committed to continuing our efforts to improve energy efficiency and reduce emissions, contributing positively to environmental sustainability.

1. Introduction

This report outlines the energy use, greenhouse gas emissions, and energy efficiency actions taken by Forkers Limited (Company Number: 01073245) for the financial year ending 31 March 2025. The report complies with the requirements of the Streamlined Energy and Carbon Reporting (SECR) framework.

2. Energy Consumption

The company has been unable to obtain complete and reliable underlying energy-consumption data (kWh) for the reporting period. Management has assessed that sourcing this data would involve disproportionate cost, and therefore UK energy-consumption figures are not disclosed in accordance with SECR provisions.

The company has, however, been able to calculate its greenhouse gas emissions (Scope 1 and Scope 2) using available activity data, set out below.

3. Greenhouse Gas (GHG) Emissions

3.1. Emissions by Source

- Gas: 2,233.56 tonnes CO2e

- Electricity: 66.52 tonnes CO2e

- Transport: 905.33 tonnes CO2e

3.2. Emissions by Scope

Scope 1 (Direct emissions): 3,1389.89 tonnes CO2e

Scope 2 (Indirect emissions from purchased electricity): 66.52 tonnes CO2e

Scope 3 (Other indirect emissions): 0 tonnes CO2e

3.3. Total Emissions

Total Emissions: 3,205.41 tonnes CO2e

3.4. Intensity Ratios

Emissions per unit of turnover: 34.99 tonnes CO2e/£m turnover

Emissions per employee: 20.41 tonnes CO2e/employee

4. Energy Efficiency Actions

The company has assessed whether any energy-efficiency or carbon-reduction measures were undertaken during the year. For the year ended 31 March 2025, the company is not aware of any energy-efficiency actions taken that meet the SECR requirement for disclosure.

5. Compliance

The directors of Forkers Limited are responsible for complying with the SECR Regulations. They must be satisfied that, to the best of their knowledge, all relevant information concerning Forkers Limited's organization structure, properties, activities, and energy supplies has been provided accurately. This includes details of any complex ownership structures, such as private equity funds or franchises for private finance initiatives, and electricity/gas usage covered by EU Emissions Trading Scheme (ETS) or Climate Change Agreements (CCA) scheme generated on-site (including Combined Heat and Power (CHP)), or supplied to/from a third party (i.e., not a licensed energy supplier or a landlord/tenant).

6. Reporting Methodology

6.1. Data Collection

Data Sources: Meter readings and data reports for electricity and gas, mileage records for transport

Collection Methods: Monthly readings, mileage readings from vehicles.

6.2. Calculation Methods

Conversion Factors: 2025 UK Government GHG Conversion Factors for Company Reporting.

GHG Protocol Standards: Followed the GHG Reporting Protocol for Scope 1, Scope 2, and Scope 3 emissions.

DIRECTORS' RESPONSIBILITIES STATEMENT

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). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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, Tomkinson Teal (Lichfield) LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Ms R Curran - Director

20 November 2025

Opinion

We have audited the financial statements of Forkers Limited (the 'company') for the year ended 31 March 2025 which comprise the Statement of Income and Retained Earnings, Balance Sheet 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 Directors' Responsibilities Statement set out on page eight, 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:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the directors and other management. We discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Susanna D Ault FCCA ACA (Senior Statutory Auditor)

for and on behalf of Tomkinson Teal (Lichfield) LLP

Hanover Court

5 Queen Street

Lichfield

Staffordshire

WS13 6QD

20 November 2025

TURNOVER

4

91,637,410

47,028,537

Cost of sales

(80,713,797

)

(37,717,000

)

GROSS PROFIT

10,923,613

9,311,537

Administrative expenses

(6,956,476

)

(6,439,496

)

3,967,137

2,872,041

Other operating income

218,350

303,350

OPERATING PROFIT

6

4,185,487

3,175,391

Interest receivable and similar income

852,934

598,758

PROFIT BEFORE TAXATION

5,038,421

3,774,149

Tax on profit

7

(1,417,548

)

(831,728

)

PROFIT FOR THE FINANCIAL YEAR

3,620,873

2,942,421

Retained earnings at beginning of year

20,783,860

17,941,439

Dividends

8

(229,460

)

(100,000

)

RETAINED EARNINGS AT END OF YEAR

24,175,273

20,783,860

FIXED ASSETS

Tangible assets

9

754,018

144,738

Investments

10

200

200

754,218

144,938

CURRENT ASSETS

Stocks

11

607,543

1,931,917

Debtors

12

14,334,442

8,104,377

Cash at bank and in hand

21,906,084

19,096,506

36,848,069

29,132,800

CREDITORS

Amounts falling due within one year

13

(13,239,603

)

(8,460,575

)

NET CURRENT ASSETS

23,608,466

20,672,225

TOTAL ASSETS LESS CURRENT LIABILITIES

24,362,684

20,817,163

PROVISIONS FOR LIABILITIES

15

(182,409

)

(28,301

)

NET ASSETS

24,180,275

20,788,862

CAPITAL AND RESERVES

Called up share capital

16

5,002

5,002

Retained earnings

17

24,175,273

20,783,860

SHAREHOLDERS' FUNDS

24,180,275

20,788,862

The financial statements were approved by the Board of Directors and authorised for issue on 20 November 2025 and were signed on its behalf by:

Ms H Boyle - Director

Ms R Curran - Director

1.	STATUTORY INFORMATION

Forkers 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.	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 under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

- Section 7 'Statement of Cash Flows': Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues': Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 26 'Share based payments': Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanations of modification to arrangements;

- Section 33 'Related Part Disclosures': Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of HRF Holdings Limited. These consolidated financial statements are available from its registered office, Golds Green House, Shaw Street, West Bromwich, West Midlands, B70 0TX.

Related party exemption

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

Key judgements and sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

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

Long term contracts

Profit from long term construction contracts is recognised by reference to the stage of completion, when the 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.

Revenue from contracts with customers

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

The Company earns revenue from the provision of services relating to construction contracts. The Company enters into a number of construction contracts, to complete various projects. Contracts usually commence and complete within one financial period and are generally fixed price.

The Company typically recognises revenue within its construction contract businesses over time, as it performs its obligations. Management believe this best reflects the transfer of control to the customer by providing a faithful depiction of primarily the enhancement of a customer controlled asset or the construction of an asset with no alternative use. The method used is determined in accordance with the contract type and are based on either the input or output method depending on the specific contractual arrangements and in accordance with IFRS 15. In the event that the recoverability of the contract income is uncertain or is dependent on the outcome of certain events, relevant contract provisions would be made accordingly. In all of the Company's construction contract arrangements the Company has an enforceable right to payment for work and performance obligations completed to date.

Contract costs

Contract costs are recognised as expenses in the period in which they are incurred. When costs are incurred in securing a contract they are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

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 provided it is probable they will be recovered.

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

Tangible fixed assets

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

Plant and machinery

-

20% on cost

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Stocks and work in progress

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 the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in the profit or loss.

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

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 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

4.

TURNOVER

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

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

9,271,778

8,871,451

Social security costs

1,041,557

691,424

Other pension costs

590,009

351,372

10,903,344

9,914,247

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

2025

2024

Production staff

58

66

Admin staff

88

71

Directors

11

11

157

148

2025

2024

£

£

Directors' remuneration

1,416,250

1,501,773

Directors' pension contributions to money purchase schemes

260,383

100,062

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

Money purchase schemes

6

6

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

280,175

301,494

Pension contributions to money purchase schemes

56,695

16,304

6.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Other operating leases

449,839

383,030

Depreciation - owned assets

44,242

36,184

Auditors' remuneration

24,500

22,646

Pension contributions to money purchase schemes

592,735

351,377

7.

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

1,195,717

955,211

Adjustments in respect of prior periods

67,723

(125,400

)

Total current tax

1,263,440

829,811

Deferred tax

154,108

1,917

Tax on profit

1,417,548

831,728

Reconciliation of total tax charge 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:

2025

2024

£

£

Profit before tax

5,038,421

3,774,149

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

1,259,605

943,537

Effects of:

Expenses not deductible for tax purposes

21,684

10,209

Capital allowances in excess of depreciation

(85,572

)

-

Depreciation in excess of capital allowances

-

1,465

Deferred tax

154,108

1,917

Prior year adjustment

67,723

(125,400

)

Total tax charge

1,417,548

831,728

8.

DIVIDENDS

2025

2024

£

£

Ordinary shares of £1 each

Final

229,460

100,000

9.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 April 2024

-

755,880

-

-

755,880

Additions

352,997

-

289,730

10,795

653,522

At 31 March 2025

352,997

755,880

289,730

10,795

1,409,402

DEPRECIATION

At 1 April 2024

-

611,142

-

-

611,142

Charge for year

5,883

28,948

6,038

3,373

44,242

At 31 March 2025

5,883

640,090

6,038

3,373

655,384

NET BOOK VALUE

At 31 March 2025

347,114

115,790

283,692

7,422

754,018

At 31 March 2024

-

144,738

-

-

144,738