REGISTERED NUMBER: 07981946 (England and Wales)

MCRAIL CONSTRUCTIONS LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Statement of Directors' Responsibilities

5

Report of the Independent Auditors

6

Profit and Loss Account

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

MR D Mcloughlin

MR P McNally

REGISTERED OFFICE:

Canal Wharf

Horsenden Lane North

Greenford

Middlesex

UB6 7PH

REGISTERED NUMBER:

07981946 (England and Wales)

SENIOR STATUTORY AUDITOR:

Tony Castagnetti

AUDITORS:

Belluzzo Audit Limited

Chartered Accountants and Statutory Auditors

38 Craven Street

London

WC2N 5NG

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

REVIEW OF BUSINESS

The company has seen an increase in turnover from £22.5m in 2024 to £30.4m in 2025.

The company's plan to secure controlled growth has progressed with the appointment of additional senior

management and staff, including, Commercial and Delivery with the aim of improving its management systems, assets and processes

FORWARD ORDER BOOK

The pipeline for opportunities is strong in the company's key market sectors, Construction, Rail Infrastructure & other public projects. The Company is focusing its sights on expanding in these sectors by continued investment.

The company's current order book is healthy, with works already secured for 2026/2027.

The company remains committed to retaining its client base, the continued high percentage of repeat business provides a constant reminder of the company's ability to satisfy clients requirements whilst recognising the need to offer its clients added value and reduced costs to maintain its competitive edge. The company has also taken on some new clients with a view to continuous growth.

PRINCIPAL RISKS AND UNCERTAINTIES

The company remains committed to its policy of managing its exposure to risk. Continuous monitoring of sales income, costs, and overheads together with robust cash management is a significant factor in its ability to make informed decisions about its future.

The company continues to enjoy a good reputation in the industry for prompt payment of its supply chain and remains committed to ensuring that its creditors are discharged within terms. Working closely with our supply chain is important in bringing certainty on project delivery and remains an integral part of the company's approach.

Health & safety continues to be pivotal in the company's management of risks to the business as a whole, and the company is keen to keep Health & Safety and the environment at the forefront to our overall reputation in the marketplace.

FINANCIAL RISKS MANAGEMENT AND POLICIES

The company is robust in credit risk in management and administration of its supply chain and trade receivables within contractual obligations. A strong secured order book supports a healthy cash balance going forward.

The importance of financial risk and management remains, financial checks are carried out on clients and trade contractors prior to entering contracts with ad-hoc review during the process of the projects, continuously evaluating risk exposure.

The directors remain mindful of the challenges the company faces in the industry that they operate in and are

committed to meeting them.

KEY PERFORMANCE INDICATORS

The key financial highlights for the company for the last four years are as follows:

2025

2024

2023

2022

Turnover

£'000

30,417

22,517

26,808

31,372

Profit before taxation

£'000

1,150

832

508

688

Net assets

£'000

5,049

4,335

3,820

3,488

RESEARCH AND DEVELOPMENT(R&D)

The company remains committed to the continuous development of its methods ,systems and processes through R&D. It's focus on providing innovative robust processes and solutions that significantly benefits including health and safety, time,costs savings and improved quality to our clients.

ACCREDITATION AND AWARDS

The company continues with its accreditation to ISO 9001,14001,45001 and memberships to CHAS, Constructionline, SMAS, Builders profile and RISQ.

ON BEHALF OF THE BOARD:

MR P McNally - Director

24 December 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of civil engineering.

DIVIDENDS

Ordinary dividends were paid amounting to £181,000. The directors do not recommend payment of a further dividend.

FUTURE DEVELOPMENTS

The company closely monitors the economic situation in the UK, and the UK government takes all necessary measures to ensure the company adapts to meet the needs of the market, details of which are set out in the strategic report.

While the directors expect the global and national economic environments to impact on the construction sector they believe the company is well positioned to achieve its objectives of a reduced activity level, but increasing profitability through good revenue visibility, tight cost controls and a good project pipeline.

DIRECTORS

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

MR D Mcloughlin

MR P McNally

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Belluzzo Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium sized companies exemption.

ON BEHALF OF THE BOARD:

MR P McNally - Director

24 December 2025

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.

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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. The company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:

-The Companies Act 2006

-Financial Reporting Standard 102

-UK tax legislation

-UK employment legislation

-UK health and safety legislation

-General Data Protection Regulations

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. We understood how the company is complying with those legal and regulatory frameworks by making inquiries of management and those responsible for legal and compliance procedures. The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise noncompliance with these laws and regulations. The assessment did not identify any issues in this area. We assessed the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

-Identifying and assessing the measures management has 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 estimates, and

-Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the oganisation for fraud and identified the greatest potential existed within the recording and recognition of revenue. Our procedures in this respect were focused on the origination of revenue and directed towards ensuring the accuracy and completeness of the same by undertaking testing on a sample basis of the revenue items to ensure that sales had been recorded correctly and in the appropriate accounting period.

We consider that the work we undertook in this regard was considered capable of detecting irregularities and fraud within the sales cycle. Due to 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 regulations.

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. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. The risk is also greater regarding irregularities occurring to fraud other 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 https://www.frc.org.uk/library/standards-codes-policy/audit-assurance-and-ethics 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.

Tony Castagnetti (Senior Statutory Auditor)

for and on behalf of Belluzzo Audit Limited

Chartered Accountants and Statutory Auditors

38 Craven Street

London

WC2N 5NG

24 December 2025

TURNOVER

30,417,280

22,517,588

Cost of sales

26,632,705

19,474,393

GROSS PROFIT

3,784,575

3,043,195

Administrative expenses

2,577,820

2,129,651

1,206,755

913,544

Other operating income

-

4,192

OPERATING PROFIT

5

1,206,755

917,736

Interest payable and similar expenses

6

56,367

85,532

PROFIT BEFORE TAXATION

1,150,388

832,204

Tax on profit

7

255,187

140,300

PROFIT FOR THE FINANCIAL YEAR

895,201

691,904

PROFIT FOR THE YEAR

895,201

691,904

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

895,201

691,904

FIXED ASSETS

Tangible assets

9

538,849

640,196

CURRENT ASSETS

Debtors

10

6,741,557

7,630,326

Cash at bank and in hand

1,424,744

1,040,437

8,166,301

8,670,763

CREDITORS

Amounts falling due within one year

11

3,520,545

4,294,726

NET CURRENT ASSETS

4,645,756

4,376,037

TOTAL ASSETS LESS CURRENT LIABILITIES

5,184,605

5,016,233

CREDITORS

Amounts falling due after more than one year

12

-

(520,492

)

PROVISIONS FOR LIABILITIES

16

(134,709

)

(160,046

)

NET ASSETS

5,049,896

4,335,695

CAPITAL AND RESERVES

Called up share capital

17

100

100

Retained earnings

18

5,049,796

4,335,595

SHAREHOLDERS' FUNDS

5,049,896

4,335,695

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:

MR P McNally - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

100

3,820,691

3,820,791

Changes in equity

Dividends

-

(177,000

)

(177,000

)

Total comprehensive income

-

691,904

691,904

Balance at 31 March 2024

100

4,335,595

4,335,695

Changes in equity

Dividends

-

(181,000

)

(181,000

)

Total comprehensive income

-

895,201

895,201

Balance at 31 March 2025

100

5,049,796

5,049,896

Cash flows from operating activities

Cash generated from operations

21

1,461,935

2,272,754

Interest paid

(56,367

)

(85,532

)

Tax paid

(24,645

)

(103,202

)

Net cash from operating activities

1,380,923

2,084,020

Cash flows from investing activities

Purchase of tangible fixed assets

(9,000

)

(64,485

)

Net cash from investing activities

(9,000

)

(64,485

)

Cash flows from financing activities

Loan repayments in year

(636,100

)

(1,655,226

)

Capital repayments in year

(170,516

)

7,632

Equity dividends paid

(181,000

)

(177,000

)

Net cash from financing activities

(987,616

)

(1,824,594

)

Increase in cash and cash equivalents

384,307

194,941

Cash and cash equivalents at beginning of year

22

1,040,437

845,496

Cash and cash equivalents at end of year

22

1,424,744

1,040,437

1.	STATUTORY INFORMATION

Mcrail Constructions Limited (company number 07981946) is a private company, limited by shares and incorporated in England and Wales. Its registered office is Canal Wharf, Horsenden Lane North, Greenford, UB6 7PH. registered in England and Wales.

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 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.

Turnover

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

recognised as follows:

Contract accounting

Revenue comprises the fair value of construction carried out in the year, based on an internal assessment of work carried out. Once the outcome of a construction contract can be estimated reliably, revenue is recognised in the Profit and loss account on a stage of contract completion basis by reference to the costs incurred to date. Losses expected in bringing a contract to completion are recognised immediately in the Profit and loss account as soon as they are forecast. Amounts recoverable on long term contracts, included within debtors, represent revenue, less progress payments received. Where progress payments exceed revenue, the excess is shown as amounts payable on long term contracts within current liabilities.

Tangible fixed assets

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:

Plant and machinery:

17% reducing balance

Fixtures, fittings & equipment:

16% reducing balance

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.

Impairment of fixed assets

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

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Stocks

Stocks 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.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt Instruments are subsequently carried at amortised cost, using the effective interest rate method.

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge

.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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.

Employee benefits

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.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Foreign currencies

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

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.

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.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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.

Performance of long-term contracts

Recognised amounts on construction contract revenues and related receivables reflect the directors' best estimate of long-term contracts outcome and stage of completion. This includes the assessment of the profitability of the long-term contracts. Costs to complete and contract profitability are subject to significant estimation and uncertainty.

4.	EMPLOYEES AND DIRECTORS

31.3.25

31.3.24

£

£

Wages and salaries

365,611

301,005

Other pension costs

1,124

-

366,735

301,005

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

31.3.25

31.3.24

Operations

5

5

31.3.25

31.3.24

£

£

Directors' remuneration

18,244

22,500

5.	OPERATING PROFIT

The operating profit is stated after charging:

31.3.25

31.3.24

£

£

Hire of plant and machinery

1,662,683

1,255,518

Other operating leases

204,989

100,369

Depreciation - owned assets

110,347

117,045

Auditors' remuneration

9,600

12,000

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.25

31.3.24

£

£

Bank loan interest

37,753

71,830

HP Charges

18,614

13,702

56,367

85,532

7.

TAXATION

Analysis of the tax charge

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

31.3.25

31.3.24

£

£

Current tax:

UK corporation tax

280,524

111,873

Deferred tax

(25,337

)

28,427

Tax on profit

255,187

140,300

Reconciliation of total tax charge included in profit and loss

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

31.3.25

31.3.24

£

£

Profit before tax

1,150,388

832,204

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

287,597

208,051

Effects of:

Expenses not deductible for tax purposes

15,337

12,240

Depreciation in excess of capital allowances

25,337

13,140

Utilisation of tax losses

(47,745

)

(208,390

)

Adjustments to tax charge in respect of previous periods

(2

)

87,204

Deferred tax movement

(25,337

)

28,427

Reduction of effective tax rate to 19%

-

(372

)

Total tax charge

255,187

140,300

8.

DIVIDENDS

31.3.25

31.3.24

£

£

Interim

181,000

177,000

9.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

machinery

fittings

Totals

£

£

£

COST

At 1 April 2024

966,905

75,156

1,042,061

Additions

-

9,000

9,000

At 31 March 2025

966,905

84,156

1,051,061

DEPRECIATION

At 1 April 2024

350,801

51,064

401,865

Charge for year

105,176

5,171

110,347

At 31 March 2025

455,977

56,235

512,212

NET BOOK VALUE

At 31 March 2025

510,928

27,921

538,849

At 31 March 2024

616,104

24,092

640,196