REGISTERED NUMBER: 00725675 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 30 September 2025

for

H.H. SMITH & SONS CO. LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

Directors:

R N Smith

P J Smith

F T Smith

J Crous

Secretary:

F T Smith

Registered office:

95 Bury Old Road

Whitefield

Manchester

M45 7AY

Registered number:

00725675 (England and Wales)

Auditors:

S&W Audit

Northern Assurance Buildings

9-21 Princess Street

Manchester

M2 4DN

The directors present their strategic report for the year ended 30 September 2025.

The principal activity of the company in the year under review was that of construction services.

Review of business

A turnover of over £30.5 million has been achieved at a profit margin of 14.6%.

An order book of over £28 million has already been secured for the 2025- 2026 financial year. This will increase in the forthcoming months as further project negotiations are ongoing with potentially strong margins remaining.

This has been achieved with the continuous nurturing and development of our in-house workforce and investments in our bespoke joinery workshop.

As a company we are further developing our environmental and social value commitments with a view to targeting more framework opportunities in the future.

Principal risks and uncertainties

The company is affected by movements in levels of economic activity generally as well as the degree of competition in bidding for new work. The increased volatility of the economy as a whole could affect the construction Industry moving forward, although current indicators don't appear to show this.

Government legislation and the new Building Safety Regulations could delay some projects starting in the expected timeframes.

Key performance indicators

The group's key financial and other performance indicators during the year were as follows:

2025

2024

2023

2022

2021

Turnover

£

30,566,365

32,810,687

29,560,286

30,867.304

21,070,904

Gross profit margin

%

14.56

16.48

10.25

8.64

8.05

Profit for the financial year

£

1,972,187

2,614,653

1,061,429

688,803

418,776

Shareholders' funds

£

8,825,488

7,463,301

5,458,648

4,507,219

4,028,416

Going concern

With our reputation, market position and our strong liquidity the company is considered to be in a better position than many to trade through any potential situations. H & H Smith and Sons Limited operates in an industry where there is continued strong demand within the country particularly in the Heritage and Restoration Markets in which we have developed a strong and enviable reputation in recent times.

The financial statements have therefore been prepared on a going concern basis.

On behalf of the board:

R N Smith - Director

24 December 2025

The directors present their report with the financial statements of the company for the year ended 30 September 2025.

Principal activity

The principal activity of the company in the year under review was that of construction services.

Dividends

See notes 21 and 22.

Research and development

The company is continuing research and development activity into new construction techniques.

Future developments

It is the directors intention to concentrate on increasing profits through a combination of competitive tendering for new contracts, efficient cost management and by retaining and developing its skilled workforce. The company anticipates higher levels of turnover and margin for the forthcoming year as it intends to concentrate on its core business.

Directors

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

R N Smith

P J Smith

F T Smith

J Crous

Financial instruments

The business' principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the business' cash balances are held in such a way that achieves a competitive rate of interest.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

The company is a lessee in respect of financed leased assets. The liquidity risk in respect of these assets is managed by ensuring there are sufficient funds to meet the payments.

Statement of directors' responsibilities

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure of information to auditors

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

On behalf of the board:

R N Smith - Director

24 December 2025

Opinion

We have audited the financial statements of H.H. Smith & Sons Co. Limited (the 'company') for the year ended 30 September 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 September 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 other information comprises the information included in the report of the directors, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the report of the directors. 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 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 pages three and four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

We obtained a general understanding of the company's legal and regulatory framework through enquiry of management concerning their understanding of relevant laws and regulations, the entity's procedures regarding compliance and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the company's industry and regulation.

We understand that the company complies with the framework through outsourcing accounts preparation and tax compliance to external experts.

In the context of the audit, we considered those laws and regulations which determine the form and the content of the financial statements, which are central to the company's ability to conduct its business and where there is a risk that failure to comply could result in material penalties. We identified the following laws and regulations as being the significance in the context of the company:

- The Companies Act 2006 and FRS 102 in respect of the preparation and presentation of the financial statements.

- UK taxation law;

- ISO9001/14001/45001 regulations; and

- The Health and Safety at Work Act 1974 and associated regulations.

We performed the following specific procedures to gain evidence about compliance with the significant laws and regulations identified above:

- We obtained written management representations regarding the adequacy of procedures in place; and

- We reviewed inspection reports conducted by third parties to consider if any material non-compliance had arisen or if any material penalties were likely to arise.

The senior statutory audit led a discussion with senior member of the engagement team regarding the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur.

The areas identified in this discussion were:

- Manipulation of financial statements, especially revenue and property valuations, via fraudulent journal entries, particularly as the size of the company means that there is little opportunity for segregation of duties.

These areas were communicated to the other members of the engagement team not present at the discussion.

The procedures we carried out to gain evidence in the above areas included:

- Identifying and assessing the design effectiveness of control management has put in place to prevent and detect fraud;

- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;

- Challenging assumptions and judgements made by management in its significant accounting estimates in particular we have vouched items included in the stock provision to actual events after date and compared previous years provisions to actual to ensure reasonable;

- Identifying and testing journal entries, in particular any journal entries posted with unusual account combination identified by data analytics;

- We have tested a sample of stock items and ensured that they have led to sales included in the accounts as well as increasing the risk in our samples when testing trade debtors that we have tested by circularisation, agreeing to underlying records and after date cash;

- Assessing the extent of compliance with relevant laws and regulations; and

- Testing all property valuations, with a focus on reviewing external property indices and sales of similar properties.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

David Fort FCA (Senior Statutory Auditor)

for and on behalf of S&W Audit

Northern Assurance Buildings

9-21 Princess Street

Manchester

M2 4DN

24 December 2025

Turnover

30,566,365

32,810,687

Cost of sales

(26,116,622

)

(27,404,759

)

Gross profit

4,449,743

5,405,928

Administrative expenses

(2,253,007

)

(2,984,423

)

2,196,736

2,421,505

Other operating income

30,356

(2,519

)

Operating profit

5

2,227,092

2,418,986

Interest receivable and similar income

235,919

171,267

2,463,011

2,590,253

Interest payable and similar expenses

6

(95

)

(549

)

Profit before taxation

2,462,916

2,589,704

Tax on profit

7

(490,729

)

24,949

Profit for the financial year

1,972,187

2,614,653

Other comprehensive income

-

-

Total comprehensive income for the year

1,972,187

2,614,653

Fixed assets

Tangible assets

9

687,884

703,117

Investment property

10

2,138,796

1,077,532

2,826,680

1,780,649

Current assets

Stocks

11

10,000

270,620

Debtors

12

6,062,466

6,690,910

Cash at bank

5,840,097

7,771,814

11,912,563

14,733,344

Creditors

Amounts falling due within one year

13

5,805,324

8,927,919

Net current assets

6,107,239

5,805,425

Total assets less current liabilities

8,933,919

7,586,074

Creditors

Amounts falling due after more than one year

14

-

(12,000

)

Provisions for liabilities

17

(108,431

)

(110,773

)

Net assets

8,825,488

7,463,301

Capital and reserves

Called up share capital

18

60,000

60,000

Share premium

19

8,500

8,500

Revaluation reserve

19

372,976

375,364

Retained earnings

19

8,384,012

7,019,437

Shareholders' funds

8,825,488

7,463,301

The financial statements were approved by the Board of Directors and authorised for issue on 24 December 2025 and were signed on its behalf by:

R N Smith - Director

Called up

share

Retained

Share

Revaluation

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 October 2023

60,000

5,012,397

8,500

377,751

5,458,648

Changes in equity

Dividends

-

(610,000

)

-

-

(610,000

)

Total comprehensive income

-

2,617,040

-

(2,387

)

2,614,653

Balance at 30 September 2024

60,000

7,019,437

8,500

375,364

7,463,301

Changes in equity

Dividends

-

(610,000

)

-

-

(610,000

)

Total comprehensive income

-

1,974,575

-

(2,388

)

1,972,187

Balance at 30 September 2025

60,000

8,384,012

8,500

372,976

8,825,488

Cash flows from operating activities

Cash generated from operations

1

(984,118

)

3,798,209

Interest paid

(3

)

-

Interest element of hire purchase payments paid

(92

)

(549

)

Tax paid

413,011

(407,961

)

Net cash from operating activities

(571,202

)

3,389,699

Cash flows from investing activities

Purchase of tangible fixed assets

(81,001

)

(369,638

)

Purchase of investment property

(1,061,264

)

-

Sale of tangible fixed assets

-

33,000

Interest received

235,919

171,267

Net cash from investing activities

(906,346

)

(165,371

)

Cash flows from financing activities

Capital repayments in year

(17,470

)

(22,408

)

Amount introduced by directors

316,947

425,322

Amount withdrawn by directors

(143,646

)

(62,062

)

Equity dividends paid

(610,000

)

(610,000

)

Net cash from financing activities

(454,169

)

(269,148

)

(Decrease)/increase in cash and cash equivalents

(1,931,717

)

2,955,180

Cash and cash equivalents at beginning of year

2

7,771,814

4,816,634

Cash and cash equivalents at end of year

2

5,840,097

7,771,814

1.	Reconciliation of profit before taxation to cash generated from operations

2025

2024

£

£

Profit before taxation

2,462,916

2,589,704

Depreciation charges

96,234

83,752

Profit on disposal of fixed assets

-

(12,975

)

Finance costs

95

549

Finance income

(235,919

)

(171,267

)

2,323,326

2,489,763

Decrease/(increase) in stocks

260,620

(260,620

)

Increase in trade and other debtors

(175,176

)

(310,365

)

(Decrease)/increase in trade and other creditors

(3,392,888

)

1,879,431

Cash generated from operations

(984,118

)

3,798,209

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 30 September 2025

30/9/25

1/10/24

£

£

Cash and cash equivalents

5,840,097

7,771,814

Year ended 30 September 2024

30/9/24

1/10/23

£

£

Cash and cash equivalents

7,771,814

4,816,634

3.	Analysis of changes in net funds

At 1/10/24

Cash flow

At 30/9/25

£

£

£

Net cash

Cash at bank

7,771,814

(1,931,717

)

5,840,097

7,771,814

(1,931,717

)

5,840,097

Debt

Finance leases

(29,378

)

17,470

(11,908

)

(29,378

)

17,470

(11,908

)

Total

7,742,436

(1,914,247

)

5,828,189

1.	Statutory information

H.H. Smith & Sons Co. 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.	Statement of compliance

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.

3.	Accounting policies

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

There are not considered to be any critical judgements in applying the company's accounting policies.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amounts of assets or liabilities within the next financial year are addressed below.

(i) Amounts recoverable on contracts

The valuation of amounts recoverable on contracts involves a number of estimates including costs to complete, anticipated gross profit and the analysis of costs between the different stages of delivery.

(ii) Provisions

Provision is made for remedial work. This provision requires management's best estimate of the costs that will be incurred based on contractual requirements.

(iii) Property valuations

The valuation of properties requires management's best estimate of the open market value of the relevant assets. They are assisted in preparing these estimates by periodic professional valuations.

Turnover

Turnover represents the value of work done, excluding value added tax.

On long term contracts the estimated sales value of work performed in the year is included in turnover.

The activities of the company are largely undertaken through long term contracts. When the outcome of individual contracts can be estimated reliably, contract revenue and contract costs are recognised as revenue and expenses respectively by reference to the stage of completion at the balance sheet date. The stage of completion is measured by the proportion of the value of work done to the total value of work under the contract. Full provision is made for all known or expected losses on individual contracts once such losses are foreseen. Revenue in respect of variations to contracts and claims is recognised when it is probable it will be agreed by the client. Profit or loss for the year includes the benefits of claims settled on contracts completed in previous years.

Amounts recoverable on contracts are included in debtors.

Tangible fixed assets

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

Freehold property

-

2% on cost or valuation

Short leasehold

-

20% straight line

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% straight line

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price and costs directly attributable to bringing the asset to its working condition for its intended use.

Freehold land and buildings are stated at deemed cost for assets held at the date of transition to FRS 102 less accumulated depreciation and accumulated impairment losses.

Investment property

Investment property is shown at fair value. Any aggregate surplus or deficit arising from changes in market value is charged or credited to the profit and loss account and then transferred to a non-distributable reserve. Deferred taxation is provided on any gains at the rate expected to apply when the

properties are sold

Although this accounting policy is in accordance with FRS 102 it is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the directors compliance with the standard is necessary for the financial statements to give a true and fair view.

Stocks

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

Financial instruments

The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other debtors, loans to fellow group companies and bank balances,

are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where

the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors that are classified as debt, are initially recognised at

transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is

measured at the present value of the future receipts discounted at a market rate of interest.

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

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

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.

4.	Employees and directors

2025

2024

£

£

Wages and salaries

3,347,666

4,267,438

Social security costs

427,191

478,515

Other pension costs

163,357

156,283

3,938,214

4,902,236

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

2025

2024

Directors

4

4

Administration

9

11

Direct labour

61

62

74

77

2025

2024

£

£

Directors' remuneration

503,114

1,115,459

Directors' pension contributions to money purchase schemes

32,290

26,400

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

Money purchase schemes

3

2

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

180,500

568,600

Pension contributions to money purchase schemes

24,000

24,000