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

Other than general economic risks the principal risks facing the company continues to be those relating to a highly competitive tender market, inflation in the supply chain, staff retention and government planning and other regulations. The company enters long term contracts in the normal course of business. The length of these contracts introduces further commercial, inflation, customer and supply chain risks to our business which can have an impact on revenue and profit recognised on each contract.

The company’s workload is heavily focused on both public and private clients, significant levels of our current activity continue to relate to local authorities, housing associations and care homes, all of which continue to be impacted by changes in government legislation. We will continue to work with these clients, using our expertise and resources to provide suitable solutions.

The directors have monitored the progress of the company with reference to certain financial key performance indicators, these are referenced in the Business Review.

The directors also monitor certain non-financial key performance indicators:

Proportion of work secured as at 31 March          2025 63%    2024 88%

This reduction was due to a high number of long term frameworks ending this year. They have now been successfully secured.

Employee retention rates                  2025 90%    2024 88%

Apprentices as a proportion of direct workforce     2025 25%    2024 30%

Social Value - Return on Investment to Landlords - Over 13.8m based on TOMS model and over 4,800 Goodwill Gestures.

In accordance with Section 172 of the Companies House Act 2006, the directors of the company recognise their duty to promote the success of the company for the benefit of all stakeholders.

The directors regard the long-​term development of the business as an overarching objective of the board, the family enterprise has been in business since 1980. The business planning process, management, incentivisation, customer and supply relationships, and people development are all designed to focus on generating sustainable growth. 

Connolly is a people-​focused family business, many of the tasks we carry out are dependent on the skills and experience of our people, and as such they are highly praised by the board. Personal development, staff engagement surveys and apprenticeship programmes are all part of our company policy. No form of discrimination against any minority is tolerated within Connolly, as evidenced in our Gender Pay Gap Report and a fair recruitment policy where diversity is valued. 

Our ability to build strong relationships with our customers and supply chain is a testament to our people and we continue to be successful in growth within our industry.

Our People 

Connolly is built on our people, and they are the primary focus of the business. Social value and sustainability are at the heart of everything we do and are embedded into our culture. We are a direct delivery model which sets us out differently to our main competitors. Our focus is to employ locally to our sites and recruit local apprentices. Through this strategic recruitment process, and the work of our in-​house labour manager, we can ensure business continuity, growth and a sustainable future.

Social Value

Within the last 12 months we have invested an incredible: 

•  2346 staff hours to community led initiatives.

• £16,400 Fundraising, donations and in-kind contributions. 

We are committed to utilising our staff skills, expertise and resources to benefit communities in which we live and work. 

 This investment includes supporting four community spaces with refurbishments, creating safe and warm spaces for various community groups and charities to thrive. 

We have re-invested in grass roots sports by sponsoring Standish Panthers £1,000

We have supported six different community food hub centres, by providing regular staff volunteering hours, food donation drives, fundraising, and providing community raised vegetable beds. 

As part of our social value, we have recently delivered a Social Value Workshop for the Wigan Business Festival, explaining how to start up social value as a smaller SME, we are committed to raising awareness and educating others on social value reporting.

Environment

Over the last 40 years, the business has continued to develop and grow its service offering, focusing on its core strengths to enable the transformation into a regional main contractor in its own right. 

We have been developing our carbon strategy reducing our carbon emissions with a 5-​year plan, our supply chain has also signed up to our initiative and positively engaged to reduce emissions. In addition to this, we are also Bronze members of the Sustainability School and attended Retrofit Academy School. 

Connolly is committed to achieving Net Zero emissions by 2038, this is in line with Greater Manchester Combined Authority’s target of 2038, ahead of the Central Government target of 2050.

We plan to reduce our carbon emissions by 60% (or as far as possible) against our 2023 baseline, by 2038, with the remainder of our emissions to be offset. 

Health and Safety Compliance

Throughout this year, the SHEQ team has delivered several key innovations to strengthen the safety, health, environmental, and quality management practices across the business.

Connolly have successfully maintained a fully integrated Business Management System, achieving UKAS accreditation to ISO 9001, ISO 14001, and ISO 45001. This process included a comprehensive review of all SHEQ documentation, procedures, and systems, resulting in the development of new compliant materials where required.

The aligned SHEQ compliance system was introduced and is now in use on over 60 projects.

In 2025, the SHEQ team launched a strengthened auditing framework to further enhance consistency and oversight across all projects.

SHEQ Site Audits at Project Setup: Conducted within the first week of each scheme to verify correct mobilisation procedures and ensure compliance from the outset.

Contracts Managers undertake audits on sites outside of their own portfolios, ensuring impartial assessments and robust SHEQ action tracking. Each site receives two independent peer audits annually.

All active sites undergo an independent third-party audit each month. These audits provide an impartial assessment of SHEQ performance and are arranged by the respective client through their appointed Principal Designer.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2025.

The principal activity of the company continued to be those of building and maintenance contracts.

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

The auditor, Goldblatts, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The company's greenhouse gas emissions and energy consumption for the year are included within those reported by the ultimate parent company, The Connolly Group Limited and are disclosed in its accounts.

The directors are responsible for preparing the annual report 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 UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• 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.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of A Connolly Ltd (the 'company') for the year ended 31 March 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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 directors' report.

We have nothing to report in respect of the following matters in relation to which 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.

As explained more fully in the directors' responsibilities statement, 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 is 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.

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 an auditor's report 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows;

• the engagement partner ensured the engagement team had the appropriate competence, capabilities and skills to identify or recognise possible non-compliance with applicable laws and regulations.

• we identify significant laws and regulations applicable to the company through discussions with directors, along with our commercial knowledge and experience of the home improvements sector in which our client operates.

• we focused on specific laws and regulations which we consider may have a material effect on the financial statements or operations of the company, including Health & Safety laws, the Companies Act 2006, taxation legislation, data protection, consumer finance regulations and employment law.

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

• considered the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• have performed analytical procedures to identify any unusual variances

• reviewed and tested journal entries and other adjustments to identify any unusual transactions

• assessed judgements and assumptions used in determining the accounting estimates which could indicate any potential bias

• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• reviewing disclosures in the financial statements and testing to supporting documentation.

• reviewing meeting minutes where available

• discussions with management regarding actual or potential litigations and / or claims.

• reviewing correspondence with HMRC and other relevant regulators

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from the financial transactions, the less likely it is that we would become aware or any possible non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of directors and other management and the inspection of regulatory and legal correspondence, if any.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report 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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

A Connolly Ltd is a private company limited by shares incorporated in England and Wales. The registered office is The Old Dairy, Leeds Street, Wigan, Lancs, WN3 4BW.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Atruet 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.

Turnover represents amounts receivable for painting, decorating and general building works net of VAT and trade discounts.

Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses.

Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract.

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

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

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

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

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

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

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

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

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

The amounts due from contract customers requires the company to make a judgement in relation to the stage of completion of the contracts ongoing at the year end. Management are provided with internal valuations by experienced personnel based on the costs incurred to date and the terms and conditions of the contract.

An analysis of the company's turnover is as follows:

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:

The amounts due from group undertakings are interest free, with no security and no fixed repayment terms.

The amounts due to group undertakings are interest free, with no security and no fixed repayment terms.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

£69,509 of the deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

The parent company is A Connolly Holdings Limited whose registered office is The Old Dairy, Leeds Street, Wigan, Lancs, WN3 4BW.

The ulitmate parent company is The Connolly Group Limited whose registered office is The Old Dairy, Leeds Street, Wigan, Lancs, WN3 4BW.

The ultimate controlling party is Mr C Connolly by virtue of his controlling shareholding in The Connolly Group Limited

The Connolly Group Limited prepares the largest group financial statements in which the entity is consolidated and copies can be obtained from - The Directors, The Connolly Group Limited, The Old Dairy, Leeds Street, Wigan, Lancs, WN3 4BW.