REGISTERED NUMBER: 06705551 (England and Wales)

MORGANSTONE LTD

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE PERIOD 1 APRIL 2024 TO 5 APRIL 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Income and Retained Earnings

11

Balance Sheet

12

Notes to the Financial Statements

13

DIRECTORS:

I W Morgan

Mrs T A Morgan

D Prothero

G Davies

A Pettigrew

REGISTERED OFFICE:

Floor 2 Princess House

Princess Way

Swansea

SA1 3LW

REGISTERED NUMBER:

06705551 (England and Wales)

SENIOR STATUTORY AUDITOR:

Alison Vickers

AUDITORS:

Bevan Buckland LLP (Statutory Auditors)

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

The directors present their strategic report for the period 1 April 2024 to 5 April 2025.

REVIEW OF BUSINESS

Morganstone, headquartered in South Wales, has grown into a well-established and respected construction company since its formation in 2008. The business focuses on delivering high-quality development solutions and works with a wide range of clients, including housing associations, local authorities, public sector organisations and private developers. Over time, the company has successfully delivered a broad portfolio of projects across the education, leisure, waste recycling, commercial, retail, and residential sectors.

As part of its continued growth and diversification strategy, Morganstone is actively expanding its client base and entering new markets. This expansion is being carefully managed to ensure that risk remains proportionate and aligned with the company's objectives. The forward order book for the year ahead is the strongest the business has ever recorded, placing Morganstone in an excellent position to achieve its future growth ambitions. Collaborative delivery on larger projects has also enabled the business to invest in staff development, training, and additional resources, supporting a sustainable increase in capability and capacity.

Although competitive tendering remains important to the business, market volatility over the past year has highlighted the value of collaborative procurement. Strengthening long-term partnerships helps the company manage risk more effectively while supporting consistent delivery of key performance targets.

Financial Performance

Further to our previous financial year, we are pleased to report that the company has increased its turnover reaching £48.39 million, representing an increase of 35% and a record level of turnover.

This result exceeds our projections but aligns with our continued growth strategy for the next five years.

We are also delighted to announce that the company has achieved a Gross Profit of £1,996,454 an increase of 64% with a Profit Before Tax (PBT) of £429,677 for the year.

The construction industry remains a particularly challenging environment. In particular, the sector continues to operate under significant financial strain, with inflationary pressures and regulatory obligations impacting viability and delivery timelines. Labour shortages and an ageing workforce present a structural challenge, requiring investment in skills and productivity-enhancing technologies. Compliance with emerging standards, including WHQS2 and Future Homes, demands substantial capital outlay, while supply chain fragility exacerbates cost uncertainty.

None of these challenges are new to the Company and our continued focus on developing and recruiting the team to deal with these challenges has put is in a strong position with our customers.

Specific to the company, projects that would historically be procured on a fixed cost basis are much more likely to be procured with price fluctuation clauses embedded. As a direct consequence of our expertise and standing in the industry the company has been able to agree variations to contract sums during the year.

More than ever before, clients are recognising the industry challenges but are still keen to deliver challenging and complex projects. Recognising the Company's ability to deliver such projects more of our clients have moved away from fixed price contracts to contracts that include the ability to both vary contract sums and also deal with variations expeditiously. This has allowed the company to continue to deliver complicated projects whilst managing the inherent risk of such projects such as complying with regulatory requirements and the fact that specifications can change as a project develops.

Financial Performance

This pricing model will enable to the company to improve the margins with greater benefits expected in the current year and going forwards. The fact that the company has been able to agree such contract terms and is testament to the highly skilled team and strength of relationships the company has developed with its customers.

Our People and headquarters

We have strengthened our team by introducing several key staff members, including a Group Finance Director. The new director has already implemented, and will continue to introduce, cost-saving and efficiency measures across the business, further bolstering our financial performance and operational efficiency.

During the year the company located to a new and larger Head Office located in Swansea. This will allow us to attract more talent and to grow our team to take the company forward. We have invested in both infrastructure of the business and staff as we continue to invest in growth.

Our Pipeline & Future Developments

We have a significant and contracted order book that we expect will deliver further revenue growth in the year ended 31 March 2026 and beyond. Having position ourselves to deal with challenges in the sector, and in particular having pivoted to contracts that incorporate fluctuation clauses, we expect to deliver not only revenue growth but significant margin improvement.

Key Performance Indicators:

Financially, the company remains robust, positioned to undertake larger contracts and pursue further diverse sector contracts if opportunities arise.

Metric

2025

2024

Variance

Revenue

£48,393,099

£34,777,035

+39.12%

Gross Profit

1,996,454

£1,215,166

+64.29%

Gross Profit %

4.13%

3,49%

+0.64%

Net Profit before tax for the year

£429,677

£506,961

-15.24%

Operating Profit %

0.89%

1.60%

-0.71%

Environmental Responsibilities

The company acknowledges its environmental responsibilities and integrates concern for the environment and employees into its corporate business strategy. Monitoring environmental impact, the company implements policies to reduce damage caused by its activities, including safe waste disposal, minimising landfill-bound waste, reducing energy consumption, and utilising renewable resources where feasible.

The company recognises its environmental obligations and incorporates both environmental stewardship and employee wellbeing into its wider business strategy. Morganstone continually monitors the environmental impact of its operations and has implemented a range of measures to minimise harm. These include responsible and compliant waste management, reducing the volume of waste sent to landfill, lowering energy consumption, and making use of renewable resources wherever practicable.

PRINCIPAL RISKS AND UNCERTAINTIES

The construction industry continues to face significant challenges arising from an uncertain economic environment, particularly within the housebuilding sector in Wales. Although this uncertainty has eased somewhat in recent months, forecasting the wider global and domestic influences on the UK construction industry remains challenging. Market volatility, inflationary pressures, and tightening financial conditions may create uncertainties such as delays in new projects commencing and increased scrutiny from funders. While the directors remain confident that the company is a going concern and well-positioned to navigate these conditions, it is acknowledged that factors beyond the company's control, such as a further deterioration in the wider economy, prolonged project delays, or withdrawal of financial support from key funders, could present material risks to future operations.

The directors are aware that there is an inherent risk to the going concern status of operating in the construction industry where the day to day operations require funding. Whilst the directors are confident in their ability to manages that risk, and in particular to manage pricing (including timing variations) and funding generally, it is not possible to eliminate all the inherent risks that the industry faces. As such there remains a material uncertainty regarding the company's ability to continue as a going concern. The directors are further mitigating that risk by developing further resilience through improved margins and building cash reserves.

Financial Risk Management Objectives and Policies

The company employs risk management policies, including key financial controls and targets reviewed monthly by the board. These measures aim to minimize financial risk exposure and explore opportunities fully.

1. Liquidity and Cash Flow Risk:

The company prepares detailed management accounts and financial forecasts to ensure adequate liquidity and cash availability, reducing the risk of difficulties in meeting financial obligations.

2. Interest Rate Risk:

Interest rate exposure is mitigated through active management of fixed-rate borrowings, careful evaluation of financing structures for potential acquisitions, and ongoing strengthening of the balance sheet.

3. Credit Risk:

Although many clients are public sector organisations, the company undertakes thorough credit assessments before entering into contractual arrangements. Director approval is required for larger projects to ensure oversight and to reduce the risk of non-payment.

4. Price Risk:

Price risk is managed through early negotiation with suppliers and by agreeing commercial terms before committing to customer contracts where possible. The introduction of fluctuation clauses and the allocation of contingency allowances on higher-risk projects further ensure that the company is not exposed to unknown or unnecessary costs.

ON BEHALF OF THE BOARD:

I W Morgan - Director

17 December 2025

The directors present their report with the financial statements of the company for the period 1 April 2024 to 5 April 2025.

DIVIDENDS

No dividends will be distributed for the period ended 5 April 2025.

DIRECTORS

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

I W Morgan

Mrs T A Morgan

Other changes in directors holding office are as follows:

D Prothero , G Davies and A Pettigrew were appointed as directors after 5 April 2025 but prior to the date of this report.

POLITICAL DONATIONS AND EXPENDITURE

During the year donations totalling £5,389 were made, these include individual donations of £5,000 to The Swansea Bay Foundation and £389 to other smaller causes. No donations of a political nature were made.

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 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, Bevan Buckland LLP (Statutory Auditors), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

I W Morgan - Director

17 December 2025

Qualified Opinion

We have audited the financial statements of Morganstone Ltd (the 'company') for the period ended 5 April 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, except for the possible effects of the matter described in the Basis for Qualified Opinion section, the financial statements:

- give a true and fair view of the state of affairs of the Company as at 5 April 2025, and of its profit for the year then ended;

- have been 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 qualified opinion

We were unable to obtain sufficient appropriate audit evidence to support the timing of recoverability of related party debtor balances as disclosed in the financial statements.

The Directors believe these balances to be fully recoverable in the fullness of time, but were unable to provide sufficient audit evidence to confirm the timing and recoverability of these balances.

The nature of these balances and the absence of evidence regarding their settlement terms or timing of recovery have limited the scope of our audit in this respect. Consequently, we were unable to determine whether any adjustments might be necessary to the carrying amounts of these balances, or to the related disclosures in the financial statements.

Material Uncertainty Related to Going Concern

We draw attention to the Strategic Report and notes to the financial statements, which outline that the company’s ability to continue as a going concern depends on several factors, including the ongoing support of funders, timely commencement of projects, continued support from suppliers and credit facilities, related party backing, and stability in economic conditions.

The directors have confirmed they are satisfied the company is a going concern and believe they can manage the timing and risks associated with these factors, as they have successfully done in the past.

While each of these uncertainties in isolation is not expected to impact the company’s ability to continue as a going concern, if a number of them were to occur simultaneously, this could create a material uncertainty.

Our opinion is not modified in respect of this matter.

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 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:

Extent to which the audit was considered capable of detecting irregularities, including fraud

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.

We discussed our audit independence complying with the Revised Ethical Standard 2024 with the engagement team members whilst planning the audit and continually monitored our independence throughout the process.

Identifying and assessing potential risks related to irregularities.

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

-

enquiring of management, including obtaining and reviewing support documentation, concerning the charity's policies and procedures relating to:

-

identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;

-

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

-

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

-

discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud.

-

obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the charity, The key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation.

Audit response to risks identified

In addition to the above, our procedures to respond to risks identified included the following:

-

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations;

-

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;

-

reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC;

-

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 and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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.

Alison Vickers (Senior Statutory Auditor)

for and on behalf of Bevan Buckland LLP (Statutory Auditors)

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

17 December 2025

TURNOVER

3

48,393,099

34,777,035

Cost of sales

(46,396,645

)

(33,561,869

)

GROSS PROFIT

1,996,454

1,215,166

Administrative expenses

(1,587,443

)

(1,671,664

)

409,011

(456,498

)

Other operating income

70,000

1,024,887

OPERATING PROFIT

5

479,011

568,389

Interest payable and similar expenses

7

(49,334

)

(61,428

)

PROFIT BEFORE TAXATION

429,677

506,961

Tax on profit

8

(112,040

)

(131,880

)

PROFIT FOR THE FINANCIAL PERIOD

317,637

375,081

Retained earnings at beginning of period

1,541,574

1,166,493

RETAINED EARNINGS AT END OF PERIOD

1,859,211

1,541,574

FIXED ASSETS

Tangible assets

9

162,560

214,734

CURRENT ASSETS

Debtors

10

21,632,050

17,296,346

Cash at bank

1,160,481

306,163

22,792,531

17,602,509

CREDITORS

Amounts falling due within one year

11

20,681,391

15,892,591

NET CURRENT ASSETS

2,111,140

1,709,918

TOTAL ASSETS LESS CURRENT LIABILITIES

2,273,700

1,924,652

CREDITORS

Amounts falling due after more than one year

12

(50,000

)

(383,075

)

PROVISIONS FOR LIABILITIES

16

(364,486

)

-

NET ASSETS

1,859,214

1,541,577

CAPITAL AND RESERVES

Called up share capital

17

3

3

Retained earnings

18

1,859,211

1,541,574

SHAREHOLDERS' FUNDS

1,859,214

1,541,577

The financial statements were approved by the Board of Directors and authorised for issue on 17 December 2025 and were signed on its behalf by:

I W Morgan - Director

1.	STATUTORY INFORMATION

Morganstone Ltd 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.

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.

Going Concern

The financial statements have been prepared on a going concern basis which assumes that the will Company continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the balance sheet, the likely cashflows of the business and have considered the facilities that are in place at the date of signing the report.

The Company meets its day to day working capital requirements from its cash reserves and banking facilities. The directors have assessed the longstanding effects of Covid-19 as well as current and past effects of inflation on the operating capacity of the Company and are satisfied that the Company can continue to operate within its existing facilities.

The directors have analysed the cashflow requirements for various scenarios where disruption occurs to its customer base or supply chain. The directors have reasonable expectation that with the continued support of its bankers and funders in the form of facility levels which it has historically been provided with, in the scenarios reviewed the Company will be able to continue to operate within those facilities. However the extent of disruption to the sector caused by inflationary pressures and economic conditions are unclear and it is difficult to evaluate all potential implications on the Company's trade, customers, suppliers and the wider economy.

At the time of approving the financial statements, the directors have 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.

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 requirement of paragraph 33.7.

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.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are 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 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.

The following have had the most significant effect on amounts recognised in the financial statements:

Stage of Completion

Determining the stage of completion requires judgement. The company relies on external QS verification of works performed, which involves assessing progress against contract specifications. This estimate directly affects the amount of revenue recognised and the related receivable balance.

Recoverability of Amounts on Contracts

Management assesses the recoverability of amounts recoverable on contracts based on the terms of the contract, historical collection experience, and the financial position of the customer. This involves judgement in evaluating whether any provision for impairment is required.

Forecast Costs to Complete

Estimating total contract costs and expected margins involves assumptions about future labour, material prices, subcontractor performance, and potential variations. These estimates are reviewed regularly and updated as new information becomes available. The eventual margins achieved on the contract may vary from those estimated during the ongoing works.

Recoverability of Contract Retentions

The company holds retentions on construction contracts, which are typically payable upon completion of works and expiry of the defects liability period. Assessing the recoverability of these retentions requires significant judgement. Management considers factors such as the financial stability of the counterparty, historical collection experience, contractual terms, and the likelihood of meeting performance obligations.

These estimates are inherently uncertain because retentions are often settled several months after project completion and may be subject to disputes or set-offs. Any change in these assumptions could materially impact the carrying amount of contract assets and related revenue.

Recoverability of Related Party Debt

The company has receivables due from related parties. Assessing the recoverability of these balances requires significant judgement because repayment terms may be flexible and often depend on the financial performance and liquidity of the related entities. Management evaluates the ability and intention of the counterparty to settle the debt, considering factors such as current and forecast cash flows, the nature of the relationship, historical repayment patterns, and any contractual arrangements.

These assessments involve inherent uncertainty, and changes in assumptions regarding the related party’s financial position or future trading performance could materially affect the carrying amount of these receivables.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for construction services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Construction Contracts

Revenue from construction contracts is recognised in accordance with FRS102 Section23 Revenue. The company applies the percentage-of-completion method, recognising revenue based on the stage of completion of each contract at the reporting date. The stage of completion is determined by reference to independent external quantity surveyor (QS) certifications of works performed to date.

Amounts recoverable on contracts represent the gross value of work performed, as certified by the QS, less amounts invoiced.

These balances are presented within trade and other receivables. Where the outcome of a contract can be estimated reliably, revenue and attributable costs are recognised by reference to the stage of completion. Expected losses are recognised immediately as an expense.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and Machinery

-

20% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

20% on cost

Impairment of fixed assets

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Taxation

Taxation for the period 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 period 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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 contracts are depreciated over their estimated 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.

Financial instruments

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 statement of financial position 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 the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Basic financial liabilities

Basic financial liabilities, including trade and other payables and bank loans that are classified as debt, are initially recognised transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and cash in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions are recognised where the company has a present obligation (legal and constructive) resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

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:

Period

1.4.24

to

Year Ended

5.4.25

31.3.24

£

£

Contracting & development work

48,393,099

34,777,035

48,393,099

34,777,035

An analysis of turnover by geographical market is given below:

Period

1.4.24

to

Year Ended

5.4.25

31.3.24

£

£

United Kingdom

48,393,099

34,777,035

48,393,099

34,777,035

4.	EMPLOYEES AND DIRECTORS

Period

1.4.24

to

Year Ended

5.4.25

31.3.24

£

£

Wages and salaries

2,589,084

2,364,626

Social security costs

92,482

91,332

Other pension costs

16,038

11,079

2,697,604

2,467,037

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

Period

1.4.24

to

Year Ended

5.4.25

31.3.24

Employees

51

46

Directors

2

2

53

48

Period

1.4.24

to

Year Ended

5.4.25

31.3.24

£

£

Directors' remuneration

17,680

17,680

5.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1.4.24

to

Year Ended

5.4.25

31.3.24

£

£

Depreciation - owned assets

10,764

17,486

Depreciation - assets on hire purchase contracts

44,100

44,099

The auditing of accounts of any associate of the company

30,000

29,242

Other non- audit services

11,203

20,525

The amount disclosed as non-audit fees includes fees to other related party companies.

6.	EXCEPTIONAL ITEMS

Period

1.4.24

to

Year Ended

5.4.25

31.3.24

£

£

Exceptional items

(364,486

)

-

During the year, the Group identified an onerous construction contract which is expected to result in a loss on completion of £364,486. In accordance with FRS 102 Section 21, a provision has been recognised for the expected loss.

The contract has been classified as an exceptional item due to its size and nature. Management remains in active negotiations with the customer regarding recovery of abnormal costs and contract variations.

The directors are hopeful that these negotiations will result in recovery of some or all of the anticipated losses; however, at the date of signing these financial statements, no agreement has been reached and no amounts have been recognised in respect of potential recoveries.

The provision reflects management’s best estimate of the unavoidable costs to complete the contract based on information available at the reporting date.

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1.4.24

to

Year Ended

5.4.25

31.3.24

£

£

Bank interest

135

-

Bank loan interest

45,166

57,395

Hire purchase

4,033

4,033

49,334

61,428

8.

TAXATION

Analysis of the tax charge

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

Period

1.4.24

to

Year Ended

5.4.25

31.3.24

£

£

Deferred tax

112,040

131,880

Tax on profit

112,040

131,880

UK corporation tax has been charged at 25% .

Reconciliation of total tax charge included in profit and loss

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

Period

1.4.24

to

Year Ended

5.4.25

31.3.24

£

£

Profit before tax

429,677

506,961

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

107,419

126,740

Effects of:

Expenses not deductible for tax purposes

15,870

5,140

Utilisation of tax losses

(11,249

)

-

tax rates

Total tax charge

112,040

131,880

9.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Machinery

fittings

vehicles

Totals

£

£

£

£

COST

At 1 April 2024

226,765

236,871

46,685

510,321

Additions

-

2,690

-

2,690

At 5 April 2025

226,765

239,561

46,685

513,011

DEPRECIATION

At 1 April 2024

87,056

208,531

-

295,587

Charge for period

44,166

10,698

-

54,864

At 5 April 2025

131,222

219,229

-

350,451

NET BOOK VALUE

At 5 April 2025

95,543

20,332

46,685

162,560

At 31 March 2024

139,709

28,340

46,685

214,734