REGISTERED NUMBER: 13813758 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

INFRASTRUCTURE SERVICE PARTNERS HOLDINGS

LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

18

DIRECTORS:

C D Brazendale

T R Burks

M W Hammond

REGISTERED OFFICE:

Chapter House Priesthawes Farm

Hailsham Road

Polegate

East Sussex

BN26 6QU

REGISTERED NUMBER:

13813758 (England and Wales)

AUDITORS:

Watson Associates (Audit Services) Ltd

30 - 34 North Street

Hailsham

East Sussex

BN27 1DW

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

During 2024, pleasing progress was recorded at the group’s largest subsidiary PJ Chaffin Limited, where the delivery of the team’s strategy to diversify client base and strengthen long term contracted work resulted in turnover growth in excess of 40% and a strongly profitable outcome. During the current financial year, the PJ Chaffin team has experienced a similarly positive trajectory and anticipates further strong turnover growth and improved profit during the 2025 financial year and also projected into 2026 and beyond. Order books and long-term contracts are at record levels following the consistent strategic plan of the business.

The company continues to invest in IT systems that enable more efficient work planning, more detailed real-time financial analysis and ultimately stronger cashflow and margin.

As noted elsewhere, delayed contracts negatively affected the trading performance of ETMS Highways Limited during 2024. The impact of the delayed and ultimately cancelled contracts materially worsened the company performance during 2025. As a result, ETMS Highways Limited entered administration and ceased trading during August 2025. The losses incurred during the second half of 2024 are reflected in these group accounts.

The statement of comprehensive income is set out on pages 9 and 10 and shows a loss before tax of £140,266 for the period (2023 - £512,493).

Turnover for the period amounted to £16,485,666 (2023 - £12,270,187).

PRINCIPAL RISKS AND UNCERTAINTIES

The group's operations expose it to a variety of financial risks that include the effects of price risk, credit risk, liquidity risk and interest rate cash flow risk.

The group has in place policies and procedures that seek to limit the potentially adverse effects on the financial performance of the company of such risks. These policies are set by the directors.

The company does not use derivative financial instruments to manage interest rate risks.

Price risk

Due to the market the company operates in, the group is exposed to price risk from its suppliers,

sub-contractors and competitors. The group is able to manage the potential exposure through supplier agreements.

Credit risk

Appropriate credit checks on customers who apply for credit accounts are made prior to contracts being entered into. The amount of any individual customer is subject to a limit and the customer base is made up of very large contractors, utility companies and local authorities. Chaffin is focussed on reducing risk in its order book by bidding for those contracts it is best placed to deliver on terms that are favourable to the group.

Liquidity risk

Liquidity risk is the risk that the company will encounter difficulty in meeting obligations associated with its financial liabilities. The risk is mitigated via access to loan facilities and the group's own cash balances.

KEY PERFORMANCE INDICATORS

The company manages the business by reference to key performance indicators. Competent management reporting tools are in place to provide essential current, timely reporting in a clear and precise manner.

Key Performance Indicators are year on year turnover growth, gross profit margin %, EBITDA, and EBITDA margin % as set out below:

2024

2023

Growth of turnover (%)

34.4%

24.1%

Gross profit margin (%)

25.1%

26.3%

EBITDA (£)

517.606

79.192

EBITDA (%)

3.1%

0.6%

FUTURE DEVELOPMENTS

The group continues to follow a strategy of profitable growth through winning multi-year contracts in diverse sectors and geographies with an expanding number of blue-chip and governmental clients.

ON BEHALF OF THE BOARD:

T R Burks - Director

23 December 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

C D Brazendale

T R Burks

M W Hammond

Other changes in directors holding office are as follows:

Mrs J A Gibbs - resigned 17 May 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

AUDITORS

The auditors, Watson Associates (Audit Services) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

T R Burks - Director

23 December 2025

Opinion

We have audited the financial statements of Infrastructure Service Partners Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2024 and of the group's loss 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent 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:

The Company is subject to several laws and regulations where the consequence of non-compliance could have a direct material effect on amounts or disclosures in the financial statements. We identified the following laws and regulations as the most likely to have a direct material effect if non-compliance were to occur:

- FRS102

- Companies Act 2006

- Tax legislation

The Company is subject to many other laws and regulations that do not have a direct effect to the financial statements but are fundamental to the Group's ability to operate or avoid material penalty. These include health and safety, environmental law and the GDPR.

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur, by making enquiries of management and those charged with governance. We used internal and external information to corroborate these enquiries and to perform a fraud risk assessment for the group as a whole. We considered the risk of fraud to be higher through the potential for management override of controls and manipulation of accounting estimates.

Audit procedures performed by the engagement team to detect irregularities, including fraud from instances of non-compliance with laws and regulations included:

- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

- Challenging assumptions and judgements made by management in it's significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain;

- Consideration of recent correspondence with the companies legal advisors to ensure that it aligned with the

conclusions drawn on obligations recognised in respect of uncertain legal matters;

- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or those posted by unexpected users; and

- Testing transactions entered into that are outside of the normal course of the Company's business

There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, omission, intentional misrepresentations, or through collusion.

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.

Stephen James Moore (Senior Statutory Auditor)

for and on behalf of Watson Associates (Audit Services) Ltd

30 - 34 North Street

Hailsham

East Sussex

BN27 1DW

23 December 2025

TURNOVER

16,485,666

12,270,187

Cost of sales

(12,339,576

)

(9,048,869

)

GROSS PROFIT

4,146,090

3,221,318

Administrative expenses

(4,052,860

)

(3,536,674

)

93,230

(315,356

)

Other operating income

-

10,242

OPERATING PROFIT/(LOSS)

5

93,230

(305,114

)

Interest receivable and similar income

38

81

93,268

(305,033

)

Interest payable and similar expenses

6

(233,534

)

(207,460

)

LOSS BEFORE TAXATION

(140,266

)

(512,493

)

Tax on loss

7

(106,814

)

148,755

LOSS FOR THE FINANCIAL YEAR

(247,080

)

(363,738

)

Loss attributable to:

Owners of the parent

(247,080

)

(363,738

)

LOSS FOR THE YEAR

(247,080

)

(363,738

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(247,080

)

(363,738

)

Total comprehensive income attributable to:

Owners of the parent

(247,080

)

(363,738

)

FIXED ASSETS

Intangible assets

9

672,181

767,077

Tangible assets

10

1,063,789

1,074,360

Investments

11

-

-

1,735,970

1,841,437

CURRENT ASSETS

Stocks

12

663,352

177,619

Debtors

13

2,965,355

2,214,822

Cash at bank and in hand

357,584

85,158

3,986,291

2,477,599

CREDITORS

Amounts falling due within one year

14

(4,607,694

)

(2,940,411

)

NET CURRENT LIABILITIES

(621,403

)

(462,812

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,114,567

1,378,625

CREDITORS

Amounts falling due after more than one year

15

(1,655,880

)

(1,734,797

)

PROVISIONS FOR LIABILITIES

18

(129,343

)

(67,404

)

NET LIABILITIES

(670,656

)

(423,576

)

CAPITAL AND RESERVES

Called up share capital

19

75

75

Retained earnings

20

(670,731

)

(423,651

)

SHAREHOLDERS' FUNDS

(670,656

)

(423,576

)

The financial statements were approved by the Board of Directors and authorised for issue on 23 December 2025 and were signed on its behalf by:

T R Burks - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

957,865

957,865

957,865

957,865

CREDITORS

Amounts falling due within one year

14

(957,890

)

(957,790

)

NET CURRENT LIABILITIES

(957,890

)

(957,790

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(25

)

75

CAPITAL AND RESERVES

Called up share capital

19

75

75

Retained earnings

(100

)

-

SHAREHOLDERS' FUNDS

(25

)

75

Company's loss for the financial year

(100

)

-

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 23 December 2025 and were signed on its behalf by:

T R Burks - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

75

(59,913

)

(59,838

)

Changes in equity

Total comprehensive income

-

(363,738

)

(363,738

)

Balance at 31 December 2023

75

(423,651

)

(423,576

)

Changes in equity

Total comprehensive income

-

(247,080

)

(247,080

)

Balance at 31 December 2024

75

(670,731

)

(670,656

)

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

75

-

75

Changes in equity

Balance at 31 December 2023

75

-

75

Changes in equity

Total comprehensive income

-

(100

)

(100

)

Balance at 31 December 2024

75

(100

)

(25

)

Cash flows from operating activities

Cash generated from operations

1

877,844

361,014

Interest paid

(165,020

)

(153,102

)

Interest element of hire purchase payments paid

(56,015

)

(42,646

)

Finance costs paid

(12,499

)

(9,999

)

Tax paid

-

62,197

Net cash from operating activities

644,310

217,464

Cash flows from investing activities

Purchase of tangible fixed assets

(21,282

)

(482,401

)

Sale of tangible fixed assets

13,000

104,199

Interest received

38

81

Net cash from investing activities

(8,244

)

(378,121

)

Cash flows from financing activities

New loans in year

-

421,383

Loan repayments in year

(80,425

)

(80,000

)

Capital repayments in year

(271,927

)

(307,404

)

Amount introduced by directors

-

100,000

Amount withdrawn by directors

(11,288

)

-

Net cash from financing activities

(363,640

)

133,979

Increase/(decrease) in cash and cash equivalents

272,426

(26,678

)

Cash and cash equivalents at beginning of year

2

85,158

111,836

Cash and cash equivalents at end of year

2

357,584

85,158

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Loss before taxation

(140,266

)

(512,493

)

Depreciation charges

429,775

427,356

Loss/(profit) on disposal of fixed assets

7,474

(43,130

)

Finance costs

233,534

207,460

Finance income

(38

)

(81

)

530,479

79,112

Increase in stocks

(485,733

)

(54,786

)

Increase in trade and other debtors

(750,533

)

(224,103

)

Increase in trade and other creditors

1,583,631

560,791

Cash generated from operations

877,844

361,014

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

357,584

85,158

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

85,158

111,836

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.1.24

Cash flow

changes

At 31.12.24

£

£

£

£

Net cash

Cash at bank

and in hand

85,158

272,426

357,584

85,158

272,426

357,584

Debt

Finance leases

(709,695

)

271,927

-

(761,268

)

Debts falling due

within 1 year

(130,425

)

425

-

(130,000

)

Debts falling due

after 1 year

(1,299,990

)

80,000

-

(1,219,990

)

(2,140,110

)

352,352

-

(2,111,258

)

Total

(2,054,952

)

624,778

-

(1,753,674

)

1.	STATUTORY INFORMATION

Infrastructure Service Partners Holdings 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 General 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.

The directors have considered the impact of the administration of ETMS Highways Limited in August 2025. Although this subsidiary stopped trading after the balance sheet date, the directors have concluded that it remains appropriate to prepare the financial statements on a going concern basis for the group and parent company.

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at he acquisition date. The results of acquired operations are included in the consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.

Critical accounting judgements and key sources of estimation uncertainty

The areas involving the most significant judgement and estimation uncertainty are:

Non-adjusting events: management have exercised judgement in concluding that the administration of it subsidiary in August 2025 are non-adjusting post-balance sheet events. As such, no adjustments have been made to the carrying values of current assets or liabilities at 31 December 2024.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company

and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration

received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following

criteria must also be met before revenue is recognised:

Rendering of Services

Revenue from a contract to provide services is recognised in the period in which the services are provided

in accordance with the stage of completion of the contract when all of the following conditions are

satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the company will receive the consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2022, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and

any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to

bringing the asset to the location and condition necessary for it to be capable of operating in the manner

intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated

useful lives, using the following bases:

Plant and machinery - 25% reducing balance

Motor vehicles - 25% reducing balance

Fixtures and fittings - 25% reducing balance

Office equipment - 33% on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted

prospectively if appropriate, or if there is an indication of significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and

are recognised in profit or loss.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 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.

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

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Going concern

The financial statements have been prepared on a going concern basis. The directors have made an

assessment of the company's ability to continue as a going concern and have a reasonable expectation

that the company has adequate resources to continue in operational existence for a period of at least

twelve months from the date of approval of these financial statements.

In making this assessment, the directors have considered the company's budgets, cash flow forecasts,

and available financing facilities. They have also considered the impact of the subsidiary which entered administration in August 2025, current economic conditions and any other relevant factors on the company's activities and financial position.

Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the annual

financial statements.

Current assets and liabilities

Current assets and liabilities at 31 December 2024 have been recognised at amounts considered realisable/settleable as at that date. Although ETMS Highways Limited entered administration in August 2025, this is treated as a non-adjusting post-balance sheet event. Consequently, no adjustments have been made to the carrying amounts of current assets or liabilities at 31 December 2024.

3.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

5,004,415

4,256,840

Social security costs

499,563

376,060

Other pension costs

99,125

85,946

5,603,103

4,718,846

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

2024

2023

Direct

120

101

Admin (including directors)

16

20

136

121