REGISTERED NUMBER: 01791958 (England)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2025

for

Bradford Watts Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Income and Retained Earnings

10

Balance Sheet

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

A Lysandrou

D Pitcher

J Taylor

M A Golden

SECRETARY:

A Lysandrou

REGISTERED OFFICE:

2 Whitehall Estate

Flex Meadow

Essex

CM19 5TP

REGISTERED NUMBER:

01791958 (England)

SENIOR STATUTORY AUDITOR:

Emma Fraser FCA

AUDITORS:

Bracey's Accountants (Audit) Limited

Statutory Auditor, Chartered Accountants

Unit 1 The Cam Centre

Wilbury Way

Hitchin

Hertfordshire

SG4 0TW

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

REVIEW OF BUSINESS

The company has reported an increase in turnover of 2.6%, £23.6m for the year compared to £23m reported last year.

The cost pressures seen in the wider economy of both materials and labour, together with the inherent nature of contract management continues but the GP% has increased slightly to 8.2% from 6.9% last year. As a result of the increased margin and sales seen the gross profit reported is at £1.95m compared to £1.58m last year. The overheads of the business have increased overall in the year which is largely attributable to the increase in wages costs from increases in headcount from last year.

Overall, the company has reported profit after tax for the year of £177,512 being an increase on £117,442 reported last year.

The company reports a balance sheet, with shareholders' funds of £1,219,800 (2024: £1,043,791).

PRINCIPAL RISKS AND UNCERTAINTIES

The risks and uncertainties of the business are dependent upon the economic circumstances affecting the general state of commerce as well as operational risk. The Board reviews and agrees to policies for managing its risk exposure.

Credit risk

The company's credit risk is mainly attributable to the amounts receivable from its customers for services carried out. Most of our customers are large blue chip companies or pension funds so we consider that this is mitigated to some extent with our customer profile. Nonetheless this is a real relevant risk for such companies, heightened in the current economic climate. The largest element of this risk is around retentions on projects that were completed more than 12 months prior. Collection of debtors and retention balances are a key part of the finance function.

Liquidity risk

The company finances its operations through a mixture of cash reserves in the bank, trade debtors including amounts receivable from contracts less trade creditors. The company does not have any complex financial instruments, it does not deal with foreign exchange nor any hedging products. The directors consider that careful management of contract and reserves mitigates this risk to a sufficient level of operation, but it is something that is continually monitored and measured especially in the current external environment.

Interest rate risk

Movements in interest rates which affect the wider economy does not in itself present a substantial risk to our business because the company does not have any significant borrowings outside of its mortgage on the freehold premises.

Government policy and wider economy

The cost of living crisis together with government legislation changes has put more pressure on UIF businesses. We will continue to monitor this position closely and proactively manage this.

Operational risk

Whilst operational risks are present we mitigate these in the work that we undertake in our systems and procedures for example by having an in-house qualified SHEQ manager who ensures all our sites are as safe as they can possibly be. The Management Representative (MR) of Bradford Watts Limited is responsible for assisting in business development and performance of the company, in line with company strategy and objectives. Duties include the implementation, maintenance and compliance legislative requirements of Health and Safety, Quality and Environmental aspects throughout Bradford Watts Limited. They are also as responsible for all aspects our ISO:9001, ISO:14001 and ISO:45001 Integrated Management System (IMS), well as Constructionline Platinum, Considerate Contractors, SafeContractor Memberships. This includes document. management (such as Policy Library, process docs. etc.), ISO:9001 internal audits, Mental Health in the workplace advocacy, regular Site Audits, Certified Scaffold and Safety Net Audits/Inspections, Accident/Incident Inspections etc. It is imperative that we continue to remain vigilant in ever-changing requirements and legislation of our industry.

ON BEHALF OF THE BOARD:

A Lysandrou - Director

8 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 the improvement and refurbishment of commercial premises.

DIVIDENDS

An interim dividend of £2.50 per share was paid on 24 March 2025. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2025 will be £ 1,503 .

FUTURE DEVELOPMENTS

We intend to carry on organically growing as we have been over the last forty years. Staff promotions will be on the horizon to ensure good staff are retained, M Golden has been appointed Director after the year end. Clients will slowly increase to make sure we are not reliant on just a few clients relationships.

The outlook for the next twelve months looks positive with many contracts in the pipeline and awarded. We are confident work will keep moving at its current pace. We will continue to constantly monitor the tender invites received and contracts awarded to ensure we do remain competitive, continue to tightly control/manage contracts and ensure we react to any changes in the market.

DIRECTORS

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

A Lysandrou

D Pitcher

J Taylor

Other changes in directors holding office are as follows:

M A Golden was appointed as a director after 31 March 2025 but prior to the date of this report.

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). 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 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.

ON BEHALF OF THE BOARD:

A Lysandrou - Director

8 December 2025

Opinion

We have audited the financial statements of Bradford Watts Limited (the 'company') for the year ended 31 March 2025 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, 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 page four, 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;

Irregularities, including fraud, are instances of non-compliance, acts of omissions or commission by the entity, either intentional or unintentional, which are contrary to prevailing laws and regulations.

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

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

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Financial Reporting Standard applicable in the UK and Ireland (FRS102). 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 might be fundamental to the company's ability to operate for example health and safety policies and procedures, taxation legislation and employment legislation.

In identifying and addressing the risk of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, our audit procedures performed included, but were not limited to the following: review of the financial statements and disclosures to underlying supporting documentation, obtained an understanding of laws and regulations that affect the company both directly in the financial statements and its operations, undertaking a walk through test of key controls that are in operation, review and enquiries into journal entries processed during the period under review, evaluation and consideration of areas where the potential for management bias exists, enquiries of management and key personnel, performance of analytical review and reviewing the findings of testing, review of costs, documents obtained and engaging in discussions to ensure consistency is evident in the findings documented.

Our work was directed where management applies significant judgement within the financial statements - construction contract recognition. This involves estimating the outcome of a job so as to recognise revenue in line with the stage of completion of that job (with reference to costs incurred), this requires profitability within the job to be estimated reliably and reviewed/updated regularly.

Our audit procedures to address specific risks related to construction contracts included, but were not limited to:

* Evaluating the internal controls to prevent and detect fraud and revenue recognition

* Testing the completeness and accuracy of cost estimates and other critical inputs to the percentage of completion calculation

* Reviewing management's assumptions and estimates for bias or inconsistency

* Performing detailed analytical procedures to identify unusual trends or significant variations in related costs and revenue

* Reviewing post year end activity against estimations applied at the year end

* Reviewing the outcome of the prior years projects and the accuracy of estimations applied

Our audit did not identify any instances of fraud or irregularities that materially affect the financial statements. However, due to the inherent estimation risks in long term contracts, there is a risk that future results may differ from management's current estimates. We recommend that management continues to strengthen internal controls and monitor estimation processes to mitigate this inherent risk within construction contract accounting.

There are inherent limitations in the audit procedures described above as irregularities in relation to fraud are by nature difficult to detect as it would likely have occurred through deliberate concealment and could involve collusion and deliberate misrepresentations. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non compliance with 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.

Emma Fraser FCA (Senior Statutory Auditor)

for and on behalf of Bracey's Accountants (Audit) Limited

Statutory Auditor, Chartered Accountants

Unit 1 The Cam Centre

Wilbury Way

Hitchin

Hertfordshire

SG4 0TW

16 December 2025

TURNOVER

3

23,593,081

22,996,743

Cost of sales

21,647,386

21,419,824

GROSS PROFIT

1,945,695

1,576,919

Administrative expenses

1,707,548

1,430,869

OPERATING PROFIT

6

238,147

146,050

Interest receivable and similar income

8

21,623

26,728

259,770

172,778

Interest payable and similar expenses

9

22,920

13,641

PROFIT BEFORE TAXATION

236,850

159,137

Tax on profit

10

59,338

41,695

PROFIT FOR THE FINANCIAL YEAR

177,512

117,442

Retained earnings at beginning of year

916,402

801,965

Dividends

11

(1,503

)

(3,005

)

RETAINED EARNINGS AT END OF YEAR

1,092,411

916,402

FIXED ASSETS

Tangible assets

12

476,557

473,574

Investments

13

450,000

450,000

926,557

923,574

CURRENT ASSETS

Debtors

14

5,578,279

6,998,212

Cash at bank and in hand

2,119,580

769,541

7,697,859

7,767,753

CREDITORS

Amounts falling due within one year

15

7,183,773

7,311,516

NET CURRENT ASSETS

514,086

456,237

TOTAL ASSETS LESS CURRENT LIABILITIES

1,440,643

1,379,811

CREDITORS

Amounts falling due after more than one year

16

(158,043

)

(271,309

)

PROVISIONS FOR LIABILITIES

19

(62,800

)

(64,711

)

NET ASSETS

1,219,800

1,043,791

CAPITAL AND RESERVES

Called up share capital

20

601

601

Share premium

21

106,786

106,786

Capital redemption reserve

21

20,002

20,002

Retained earnings

21

1,092,411

916,402

SHAREHOLDERS' FUNDS

1,219,800

1,043,791

The financial statements were approved by the Board of Directors and authorised for issue on 8 December 2025 and were signed on its behalf by:

A Lysandrou - Director

J Taylor - Director

Cash flows from operating activities

Cash generated from operations

1

1,534,447

(349,913

)

Interest paid

(22,920

)

(13,641

)

Tax paid

(37,053

)

(26,618

)

Net cash from operating activities

1,474,474

(390,172

)

Cash flows from investing activities

Purchase of tangible fixed assets

(26,149

)

(459,667

)

Interest received

21,623

26,728

Net cash from investing activities

(4,526

)

(432,939

)

Cash flows from financing activities

Loan (repayments)/advances

(118,406

)

291,589

Share issue proceeds

-

100,200

Equity dividends paid

(1,503

)

(3,005

)

Net cash from financing activities

(119,909

)

388,784

Increase/(decrease) in cash and cash equivalents

1,350,039

(434,327

)

Cash and cash equivalents at beginning of year

2

769,541

1,203,868

Cash and cash equivalents at end of year

2

2,119,580

769,541

1.	RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit for the financial year

177,512

117,442

Depreciation charges

18,829

4,095

Loss on disposal of fixed assets

587

2,221

Finance costs

22,920

13,641

Finance income

(21,623

)

(26,728

)

Taxation

59,338

41,695

257,563

152,366

Decrease/(increase) in trade and other debtors

1,419,933

(2,636,972

)

(Decrease)/increase in trade and other creditors

(143,049

)

2,134,693

Cash generated from operations

1,534,447

(349,913

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

2,119,580

769,541

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

769,541

1,203,868

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

769,541

1,350,039

2,119,580

769,541

1,350,039

2,119,580

Debt

Debts falling due within 1 year

(20,280

)

5,140

(15,140

)

Debts falling due after 1 year

(271,309

)

113,266

(158,043

)

(291,589

)

118,406

(173,183

)

Total

477,952

1,468,445

1,946,397

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling, which is the functional currency of the entity. Amounts are rounded to the nearest £1.

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The company accounts for long term contracts under FRS102, specifically using the percentage of costs incurred to arrive at a contract value - resulting in amounts payable or amounts recoverable on contracts - see revenue policy for more details.

The nature of this involves significant judgement which can change as time progresses. The scale of this work covers large aspects of the financial statements and it is a key estimation area of the business. Management review this monthly taking in to account specific factors in the job to ensure that the long term contracts are accounted for in accordance with FRS102 in all material aspects and the estimate applied is reasonable and supported.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured;

- it is probable that future economic benefits will flow to the entity;

- and specific criteria have been met for each of the company's activities.

Contract revenue recognition

The company deals with long term contracts and in arriving at a value for these contracts the company uses the percentage of completion method with reference to the incurred costs on the job at that date against the total expected costs. This percentage is applied to the contract value and amounts invoiced are deducted from the calculation to arrive at either amounts payable on contracts (recorded in creditors) or amounts recoverable on contracts (recorded in debtors). The client performs these calculations monthly and continually reviews the details of each job when applying the estimate of costs expected, as the job progresses the most up to date knowledge of the job is applied which can vary each month. The movements are posted through turnover.

Tangible fixed assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment loss.

The cost of the tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the costs of assets, other than land and properties over their estimated useful lives, as follows:

Asset Class Depreciation method and rate

Furniture, fittings and equipment 20% reducing balance

Freehold improvements 10% straight line

Freehold land No depreciation

Freehold buildings 50 years straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined periodically by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

The revaluation of investment properties is held net of deferred tax and earmarked as a non-distributable reserve.

Financial instruments

Basic financial liabilities

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Impairment of financial assets

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

Derecognition of financial liabilities and assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled.

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

Financial instruments continued

Classification

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

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

Recognition unit measurement

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently reviewed for impairment at regular intervals.

Other financial assets

Other financial assets, including investment properties are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss.

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 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.

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.

Defined contribution pension obligation

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

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

Going concern

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

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business. The amount includes retentions.

Trade debtors are recognised at the transaction price. Amounts are reviewed periodically and where amounts are not considered recoverable a provision is made and the net amount is recorded within profit and loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised at the transaction price.

Borrowings

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company's shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

3.

TURNOVER

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

An analysis of turnover by class of business is given below:

2025

2024

£

£

Construction contract turnover

23,570,631

22,966,280

Rental income

22,450

30,463

23,593,081

22,996,743

All income in the current and prior period is derived in the UK entirely.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,900,532

1,770,241

Social security costs

222,149

213,798

Other pension costs

113,138

117,055

2,235,819

2,101,094

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

2025

2024

Production

26

22

Administrative and support

13

13

Directors

3

3

42

38

5.	DIRECTORS' EMOLUMENTS

2025

2024

£

£

Directors' remuneration

377,406

328,992

Directors' pension contributions to money purchase schemes

62,800

71,300

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

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

154,523

145,053

Pension contributions to money purchase schemes

16,600

27,100

6.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Other operating leases

186,761

154,235

Depreciation - owned assets

18,829

4,096

Loss on disposal of fixed assets

587

2,221

7.	AUDITORS' REMUNERATION

2025

2024

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

20,850

20,250

8.

INTEREST RECEIVABLE AND SIMILAR INCOME

2025

2024

£

£

Bank interest

21,623

26,728

9.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

22,920

11,803

Other interest payable

-

1,838

22,920

13,641

10.

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

61,249

37,053

Deferred tax

(1,911

)

4,642

Tax on profit

59,338

41,695

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

236,850

159,137

Profit multiplied by the standard rate of corporation tax in the UK of 24.970% (2024 - 25%)

59,141

39,784

Effects of:

Expenses not deductible for tax purposes

3,712

3,571

Capital allowances in excess of depreciation

(1,841

)

(5,002

)

Deferred tax

(1,911

)

4,642

Temporary timing differences

237

163

Tax rate approximation

-

(1,463

)

Total tax charge

59,338

41,695

11.

DIVIDENDS

Interim dividends of £1,503 (2024: £3,005) were paid during the year.