REGISTERED NUMBER: 01127310 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2025

for

McGoff Construction Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

8

Income Statement

12

Other Comprehensive Income

13

Balance Sheet

14

Statement of Changes in Equity

15

Notes to the Financial Statements

16

DIRECTORS:

J M McGoff

D T McGoff

D J P McGoff

C A McGoff

REGISTERED OFFICE:

1 St George’s Court

Altrincham Business Park

Altrincham

Cheshire

WA14 5UA

REGISTERED NUMBER:

01127310 (England and Wales)

SENIOR STATUTORY AUDITOR:

Samuel Bacall BSc(Hons) BFP FCA

AUDITORS:

Freedman Frankl & Taylor

Statutory Auditors

Chartered Accountants

Reedham House

31 King Street West

Manchester

M3 2PJ

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

The activity of the company continued to be that of property developers and building contractors.

REVIEW OF BUSINESS

The Company

The year to 31 March 2025 was a year of consolidation and investment, as the company worked alongside its sister groups and companies to bring forward a number of key development projects. Despite external macro-economic factors such as rising inflation, finance costs and uncertainties around the banking sector, the company's results have now started to improve as expected.

The McGoff Group

McGoff Construction Limited is part of the McGoff Group of companies, which is made up of a number of like-minded groups and businesses under the common control of the McGoff family. During the year to March 2025, the Group's 15-setting care home operating platform, New Care was sold to a Private Equity backed competitor. The disposal marked a significant event for the group, providing for a substantial liquidity event which has released capital to fully re-pay group bank facilities (including those of the Company) and at the same time secure a substantial fighting fund of capital for investment into the Group's pipeline of projects. The disposal has significantly strengthened the Group's combined balance sheets and access to capital. The financial performance of the wider McGoff Group of companies is summarised below:

FY25

MGPL

MCSL

BTTG

Total

Turnover

£13,314,303

£48,954,951

£1,483,033

£63,752,277

Gross Profit

£3,056,874

£5,234,910

£753,590

£9,045,374

EBITDA

£1,188,260

£843,979

£426,642

£2,458,881

PRINCIPAL RISKS AND UNCERTAINTIES

As a development and construction business, the company's key inherent risks relate to the macro-economic environment, and how changes to this environment (political and economic) may affect future business. As we moved into this financial year, there was still significant economic uncertainty across the UK, mainly rising inflation, finance costs and generally hesitant banking and investment sectors.

Strategic decisions and investments made during preceding years have helped the Board to successfully navigate the effects of the economic downturn without suffering any debilitating damage to the underlying business. For several years now the directors have taken steps to develop a strategy which would insulate the company from such macro-economic risks by continued re-investment of profits across the wider McGoff Group into self-generated development projects, which now form a substantial part of the company's revenues. These projects require significant levels of up-front investment (in the form of work-in-progress), with the key benefit of this investment being a secure and controlled pipeline of work. The directors have also focused their efforts and strategy on supporting our related development entities and associated Joint Venture Partners with Pre-construction and Construction services in sectors with sustainable long term growth expectations driven by compelling socio-economic drivers, with healthcare, education, social housing and the evolving Build-to-Rent sector representing important areas of focus.

The company continues to innovate and is actively adopting Modern Methods of Construction (MMC) and working closely with valued supply chain partners to streamline project delivery. Furthermore, the business is focusing on self-delivery of key specialist trades through its trusted related businesses to galvanise a wholly controlled and collaborative approach to construction that drives standards and improves the pace of delivery.

SECTION 172(1) STATEMENT

As the Board at McGoff Construction we have a legal responsibility, as set out in section 172(1)(a) to (f) Companies Act 2006, to act in good faith in exercising their duty to promote the success of the Company for the benefit of its members as a whole, and to have regard to the long-term effect of our decisions on the company and its stakeholders. This statement addresses the ways in which we as a Board outwork this responsibility.

Having regard to the likely consequences of any decision in the long term

McGoff Construction is a family run business that was established 50 years ago, and continues to be controlled and run by the family. We are proud of the ways in which, over half a century, the company has provided employment, training and financial reward for its owners and employees.

We make strategic decisions based on long-term objectives. In particular, this has meant significant investments in human resources and infrastructure to ensure that we can maintain high quality and evolve together with our customers.

Having regard to the interests of the Company's employees

Valuing our people is at the centre of our culture, from investing with supreme industry related training, to advancing them academically with funded university degrees and recognised qualifications implemented by our senior management team. We are passionate about developing our talent, providing training to nurture wellbeing, with mental health and stress & resilience training available and pioneered by our managers.

We also have Change The World Day, where employees are able to take one day per year in addition to their standard holiday allowance to volunteer at an organisation or in a community of their choice. This boosts employee engagement and brings a feel-good factor, also allowing employees to refocus their efforts to achieve something beyond their normal roles.

Having regard to the need to foster the Company's business relationships with suppliers, customers, and others

Suppliers

We are proud to operate a long established, fully integrated national supply chain, many of whom have worked with us for over 15 years. On each of our schemes we endeavour to use local subcontractors and suppliers and achieve this by implementing a site by site procurement strategy. This will involve engagement with our existing supply chain and also, where appropriate, the hosting of local Supply Chain Engagement Events.

We know that the success of our delivery will largely depend on our supply chain's quality and performance. This is why we operate a professional and robust supply chain management strategy. Our proven model is founded on building long-term relationships with organisations whose values and philosophies align with ours and those of our customers. We do this by actively supporting their performance and develop their capabilities, whilst welcoming innovative new partners to boost our capacity. We will closely monitor performance to meet programme, budget and quality requirements.

Customers

McGoff Construction work with repeat business clients within the Healthcare, Food Retail, Education, and Residential sectors. Our holistic service offering includes architectural design, construction and interior design tailored to the specific requirements of our clients.

Following the 2007 recession, we moved away from competitive tendering, into construction partner arrangements negotiation with aligned Clients. The company growth strategy is centred on a sustainable blend of self-generated development workload and repeat business work with our valued customer base.

Working at McGoff Construction means so much more than working for a typical Principal Contractor and Integrated Services Group. The business is built on a passion for excellence, a flexible approach by collaborating with the rest of our operating businesses to put our Clients first.

Having regard to the impact of the Company's operations on the community and the environment

Community

McGoff Construction are committed to leaving lasting legacies within the communities where we operate. In order to do so we carry out several activities including the following:

" Register sites with the Considerate Constructors Scheme.

" Staff members carry out school careers talks to raise awareness of the diverse range of careers opportunities within construction.

" Commitment to local labour initiatives and engage with social enterprises.

Environment

McGoff Construction Ltd recognises its social and corporate responsibility to protect the local environment whilst carrying out our full range of activities. Our policy statement demonstrates the desire of our directors and employees to prevent pollution and continuously improve the environmental management of our day-to-day activities.

Community Clean-ups happen regularly around Head Office and our construction sites with employees volunteering to take part. We joined the Great British Beach Clean in Formby with our employee. This improved the respective communities and encouraged Our People to consider the implications of dropping litter. We aim to continue this initiative bi-annually.

Our objectives include the following:

" Identify and minimise the risks to the environment from the company's activities.

" Comply with current environmental legislation and, where appropriate, act in anticipation of future requirements.

" Set targets to deliver continuous improvement in the management of environmental issues across our business.

Having regard to the desirability of the Company maintaining a reputation for high standards of business conduct

Our policies of directly employing staff, delivering focused training, deployment of our own plant and machinery, together with the effective management of a highly competent supply chain, ensures we maintain our unrivalled record of delivering quality projects on time and within budget.

We ensure that our quality policy statement and the associated procedures apply to all activities and work undertaken within the company.

McGoff Construction Corporate Social Responsibility (CSR) Policy aims to consider social, environmental and economic issues pre, during & post construction. Our dedication to these three pillars of sustainability are demonstrated by our;

" ISO 9001 Quality accreditation

" ISO 14001 Environmental accreditation

" ISO 45001 Health & Safety accreditation

" Investors in People Gold accolade

" Contructionline Gold accreditation

" Considerate Constructors Pledge

" Local supply chain strategies

" Community Engagement & Charity initiatives.

Having regard to the need to act fairly as between members of the Company

The Company is 100% owned and controlled by the McGoff family, and decisions are taken at Board level in the interests of the ultimate shareholders as a group, and the wider stakeholders of the business.

FINANCIAL PERFORMANCE

Adverse macro-economic factors have naturally impacted the company's revenues, as the development of projects through to successful site starts has continued to take longer than during pre-pandemic times. Despite this, revenues have started to increase in the year and the quality of the projects has remained unaffected, and the group has managed to maintain investment into new development projects which has created a very strong pipeline of work for the coming years.

Management have continued to focus on robust markets, strong client retention rates and the formation of new long-term client relationships. As such, despite adverse macro-economic factors total revenues for the year to 31 March 2025 have increased from £41.1m in 2024 to £47.6m in 2025.

The Board are extremely proud of the improved gross margin and recognises the significant efforts of all management and staff during this period and throughout 2025.

KEY PERFORMANCE INDICATORS

FY 2025

FY 2024

Revenue growth/(reduction)

15.71%

(14.02%

)

Gross margin

5.64%

1.95%

Overheads as % of revenue

4.92%

5.55%

Average number of employees

64

70

Administrative staff costs as a % of revenue

1.96%

2.19%

The year to 31 March 2026 is expected to see a strong increase in revenues, with forecasts also indicating over £150m of revenue across FY2026 and FY2027. The Directors believe this to be a direct consequence of their ongoing commitment to invest in the company's future.

ON BEHALF OF THE BOARD:

D T McGoff - Director

22 December 2025

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

DIVIDENDS

No dividends will be distributed for the year ended 31 March 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.

J M McGoff

D T McGoff

D J P McGoff

C A McGoff

STREAMLINED ENERGY AND CARBON REPORTING

The Companies Act 2006 (Directors Report) Regulation 2018 requires the company to disclose energy consumption and greenhouse gas emissions (GHG). This information has not been disclosed in these financial statements as it is included in the consolidated financial statements of the ultimate parent undertaking, McGoff Construction Services Limited.

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;

-	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 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:

D T McGoff - Director

22 December 2025

Opinion

We have audited the financial statements of McGoff Construction Limited (the 'company') for the year ended 31 March 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 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.

Identifying and assessing potential risks to irregularities

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

- the nature of the industry and sector, control environment and business performance;

- results of enquiries of management about their own identification and assessment of the risks of irregularities;

- any matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to:

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

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

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

- the matters discussed among the audit engagement team and involving other internal specialists including tax regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risks of management override.

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

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and

- in addressing the risks 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 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 noncompliance 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.

Samuel Bacall BSc(Hons) BFP FCA (Senior Statutory Auditor)

for and on behalf of Freedman Frankl & Taylor

Statutory Auditors

Chartered Accountants

Reedham House

31 King Street West

Manchester

M3 2PJ

22 December 2025

TURNOVER

47,540,242

41,084,347

Cost of sales

(44,860,059

)

(40,283,378

)

GROSS PROFIT

2,680,183

800,969

Administrative expenses

(2,338,845

)

(2,279,438

)

341,338

(1,478,469

)

Other operating income

12,637

22,429

OPERATING PROFIT/(LOSS)

4

353,975

(1,456,040

)

Interest payable and similar expenses

5

(201,190

)

(368,590

)

PROFIT/(LOSS) BEFORE TAXATION

152,785

(1,824,630

)

Tax on profit/(loss)

6

13,371

35,159

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

166,156

(1,789,471

)

PROFIT/(LOSS) FOR THE YEAR

166,156

(1,789,471

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

166,156

(1,789,471

)

FIXED ASSETS

Tangible assets

7

99,194

127,305

CURRENT ASSETS

Stocks

8

5,660

5,660

Debtors

9

24,761,748

24,929,060

Cash at bank and in hand

966,751

656,515

25,734,159

25,591,235

CREDITORS

Amounts falling due within one year

10

(22,926,189

)

(23,077,045

)

NET CURRENT ASSETS

2,807,970

2,514,190

TOTAL ASSETS LESS CURRENT LIABILITIES

2,907,164

2,641,495

CREDITORS

Amounts falling due after more than one year

11

(816,792

)

(717,279

)

NET ASSETS

2,090,372

1,924,216

CAPITAL AND RESERVES

Called up share capital

15

100

100

Retained earnings

16

2,090,272

1,924,116

SHAREHOLDERS' FUNDS

2,090,372

1,924,216

The financial statements were approved by the Board of Directors and authorised for issue on 22 December 2025 and were signed on its behalf by:

D T McGoff - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

100

3,585,004

128,583

3,713,687

Changes in equity

Total comprehensive income

-

(1,660,888

)

(128,583

)

(1,789,471

)

Balance at 31 March 2024

100

1,924,116

-

1,924,216

Changes in equity

Total comprehensive income

-

166,156

-

166,156

Balance at 31 March 2025

100

2,090,272

-

2,090,372

1.	STATUTORY INFORMATION

McGoff Construction 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.

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.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption 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.

Related party exemption

Significant judgements and estimates

In applying the company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.

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

Significant accounting Judgements

The significant accounting judgements that the directors have made in the process of applying the Company's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are disclosed below.

The turnover policy, as described below, requires forecasts to be made of the outcomes of long-term construction contracts. These require assessments and judgements to be made on the recovery of pre-contract costs, changes in the scope of work and changes in costs. The range of potential outcomes could result in a positive or negative change to underlying profitability and cash flow.

Provisions are made for expected future losses on incomplete contracts. These provisions require management's best estimate of the costs that will be required to complete contracts based on contractual requirements.

Stock and work in progress

Profit on contracting is taken on short-term contracts when completed, and for long-term contracts attributable profit is taken when the final outcome can be foreseen with reasonable certainty; provision is made for any anticipated losses. Amounts, by which turnover in respect of long-term contracts exceed payment on account, are held in debtors as amounts recoverable on contracts. Amounts received in respect of long-term contracts, in excess of amounts reflected in turnover, are held in creditors as payments on account.

Assessing indicators of impairment

In assessing whether there have been any indicators of impairment assets, the directors have considered both external and internal sources of information such as market conditions and experience of recoverability. There have been no indicators of impairments identified during the current financial year.

Tangible fixed assets

Tangible fixed assets, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Turnover

Revenue is defined as the value of goods and services rendered excluding discounts and VAT and is recognised as follows:

Construction services contracts

All the company's revenue is derived from construction services contracts.These services are provided to customers across a wide variety of sectors and the size and duration of the contracts can vary significantly.

All contracts are considered to contain only one performance obligation for the purpose of recognising revenue. Whilst the scope of works may include a number of different components, in the context of construction services activities these are usually highly interrelated and produce combined output for the customer.

Contracts are typically satisfied over time. For fixed price construction contracts progress is measured through a valuation of the works undertaken by a professional quantity surveyor, including an assessment of any elements for which a price has not yet been agreed such as changes in scope.

Variations are not included in the estimated total contract price until the customer has agreed in principle the revised scope of work.

Where the scope has been agreed but the corresponding change in price has not yet been agreed, only the amount that is considered highly probable not to reverse in the future is included in the estimated total contract price. Where delays to the programme of works are anticipated and liquidated damages would be contractually due, the estimated total contract price is reduced accordingly.This is only mitigated by expected extensions of time or commercial resolution being achieved where it is highly probable that this will not lead to a significant reversal in the future.

In order to recognise the profit over time it is necessary to estimate the total costs of the contract. These estimates take account of any uncertainties in the cost of the work packages which have not yet been let and materials which have not yet been procured, the expected cost of any acceleration of or delays to the programme or changes in the scope of works and the expected costs of any rectification works during the defects liability period.

Once the outcome of a construction contract can be estimated reliably, margin is recognised in the statement of comprehensive income in line with the stage of completion.Where a contract is forecast to be loss-making, the full loss is recognised immediately in the statement of comprehensive income.

Rental income from operating leases is recognised on a receivable basis.

Interest income is recognised on a received basis.

Tangible fixed assets

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

Improvements to property

- The period of the lease.

Plant & machinery

- The period of the lease and 33.33% on cost

Office equipment

- 33.33% on cost.

Motor vehicles

- 20% on cost.

Computer equipment

- 33.33% on cost.

Tangible fixed assets are recorded at cost less accumulated depreciation and accumulated impairment losses.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

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.

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 or finance leases are depreciated over their estimated useful lives.

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

Operating leases are charged to the profit and loss account as they are incurred.

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.

Going concern

The company's financial statements for the year ended 31 March 2025 have been prepared on a going concern basis as, after making appropriate enquiries, the directors have reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

Grants

Grants of a revenue nature are credited to income in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

4,049,015

3,411,752

Social security costs

400,598

451,024

Other pension costs

116,006

172,200

4,565,619

4,034,976

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

2025

2024

Management

4

4

Administration

15

17

Direct labour

45

49

64

70

2025

2024

£

£

Directors' remuneration

-

-

4.	OPERATING PROFIT/(LOSS)

The operating profit (2024 - operating loss) is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

2,135,416

1,110,660

Depreciation - owned assets

35,224

22,664

Depreciation - assets on hire purchase contracts and finance leases

2,695

23,431

Profit on disposal of fixed assets

-

(30,855

)

Auditors' remuneration

38,000

42,000

Auditors' remuneration for non audit work

4,000

8,000

Other operating leases - land & buildings

49,820

73,715

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Loan interest

158,302

352,922

Other interest

9,830

7,912

Hire purchase

33,058

7,756

201,190

368,590

6.

TAXATION

Analysis of the tax credit

The tax credit on the profit for the year was as follows:

2025

2024

£

£

Current tax:

Prior year adjustment

(13,371

)

-

Deferred tax

-

(35,159

)

Tax on profit/(loss)

(13,371

)

(35,159

)

Reconciliation of total tax credit included in profit and loss

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

2025

2024

£

£

Profit/(loss) before tax

152,785

(1,824,630

)

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

38,196

(456,158

)

Effects of:

Expenses not deductible for tax purposes

12,935

8,980

Capital allowances in excess of depreciation

-

(30,901

)

Depreciation in excess of capital allowances

6,559

-

Utilisation of tax losses

(57,690

)

68,103

Losses carried forward

-

374,817

Overprovision from previous year

(13,371

)

-

Total tax credit

(13,371

)

(35,159

)