REGISTERED NUMBER: 06126265 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2025

for

Mackoy Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

M A Mayock

K Walsh

REGISTERED OFFICE:

Unit 10

Monks Brook Industrial Park

School Close

Chandlers Ford

Hampshire

SO53 4RA

REGISTERED NUMBER:

06126265 (England and Wales)

AUDITORS:

Harold Sharp Limited

5 Brooklands Place

Brooklands Road

Sale

Cheshire

M33 3SD

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

REVIEW OF BUSINESS

The principal activity of the company is that of groundworks and civil engineering services.

The directors monitor turnover, gross margins and working capital as key performance indicators, as well as other metrics to assess progress and performance on contracts.

The company's turnover for the financial year was £23,296,484 (2024 - £21,020,765).

The gross profit for the financial year was £1,154,407 (2024 - £2,780,605).

The net (loss)/profit for the year after taxation was (£616,529) (2024 profit - £865,819).

Net assets decreased to £3,124,607 (2024 - £3,601,880).

Fixed assets decreased to £737,604 (2024 - £821,168).

During the latter part of the financial year, there was a noticeable repeat decline in new contract wins between Q3 and Q4 following the same pattern experienced in the same quarters of 2024. This was primarily attributable to the Bank of England's base rate increase to 5% in the Summer of 2023, which prompted our clients to adopt a more cautious stance on capital expenditure.

Our clients still continued to focus on reducing overheads and withheld site releases unless a sale had already been secured. This 'WIP build release' approach ensured they only invested further once there was confirmed demand, rather than maintaining excess housing stock. Housebuilders were vocal in declaring that their budgets were not viable, having purchased land during stronger markets, seeing reduced sales figures as well as increased planning and build costs.

Concurrent with these challenges, our commercial department continued to negotiate price adjustments on existing contracts that have now spanned multiple financial years, much more prolonged than the initial contracts had been agreed. Material, labour resourcing and service costs continued to rise, outpacing many of the negotiated uplifts. This cost inflation narrowed profit margins and required disciplined cost control measures.

There is some positive momentum as Mackoy continues to tender new contracts, more than in previous years, with new contract leads steadily increasing.

Looking ahead, we anticipate ongoing growth in contract awards, despite the persistent backdrop of elevated interest rates. This is backed up by Mackoy achieving 8 new groundwork sites for 2026/27.

These enhancements position the company to respond effectively to rising demand and strengthen our ability to deliver consistent, high-quality groundworks and civil engineering services.

FUTURE DEVELOPMENTS

The directors anticipate no changes to the company's principal activities.

PRINCIPAL RISKS AND UNCERTAINTIES

Management Risks

Within the groundworks and civil engineering services, we have three appointed directors, each with their areas of responsibilities, against which there is a management team supporting them. We have within the financial year increased the internal management team structure to cover key risk areas such as construction performance, quality and safety, which we believe will require further key focus from our clients.

In all service areas, strategic matters and future development decisions are undertaken by the board of directors, utilising any necessary advisory services from qualified, experienced advisors.

Credit Risk

The company adopts credit control rules with its customers, regularly reviewing customer sales and payment performance to reduce risk within this area.

Financial Risks

The company primarily manages its cash and borrowing requirements to ensure sufficient working liquid resources to meet the operational needs of the business, while at the same time seeking to minimise any interest expense.

Operating Risk

The company actively seeks to invest and train all people within the business who have an active part in our operations, to ensure that they adopt best practises, and adhere to industry standards and regulations, wherever possible and to the highest level that we and our customers expect.

ON BEHALF OF THE BOARD:

M A Mayock - Director

23 December 2025

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

DIVIDENDS

The director recommends that no dividends be paid.

DIRECTORS

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

M A Mayock

K Walsh

FINANCIAL INSTRUMENTS

Objectives and policies

The company's principal financial instruments comprise of bank balances, trade debtors, trade creditors, hire purchase contracts, loans from directors and bank loans. The main purpose of these instruments is to finance the business' operations.

Price risk, credit risk, liquidity risk and cash flow risk

Price risk

Competitive pressure in the industry is a continuing risk for the company and might result in the loss of sales to key competitors. The company endeavours to alleviate this risk by continuing to maintain strong relationships with its customers and using key reliant suppliers.

Liquidity risk

The company actively maintains a mixture of long-term and short-term debt finance, in the form of hire purchase agreements and loans which are designed to ensure that the group has sufficient funds for its operations and any planned expansion, along with also taking into account the interest rate cost of different types of debt.

Interest rate cash flow risk

The company has both interest bearing assets, in the form of cash balances and interest bearing liabilities. Credit ratings are taken into account where cash balances are held in financial institutions.

Business risk

The directors consider the retention and renewal of contract work to be the principal risk to the business. The directors believe that by maintaining the quality of service and standards this risk can be mitigated.

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 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, Harold Sharp Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M A Mayock - Director

23 December 2025

Opinion

We have audited the financial statements of Mackoy Limited (the 'company') for the year ended 31 March 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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 31 March 2025 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on pages four and 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:

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including The Companies Act 2006.

- we obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with the framework by making appropriate enquiries of management as well as considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulation:

- we made enquiries of those charged with governance and management concerning:

- the risk of fraud;

- instances of non-compliance with laws and regulations or knowledge of actual, suspected, or alleged fraud is documented during the period;

- we allocated an engagement team that we considered collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations.

Based on the results of our risk assessment, our procedures included, but were not limited to:

- performing analytical procedures to identify any unusual or unexpected relationships.

- evaluation whether the selection and application of accounting policies by the entity that may be indicative of fraudulent financial reporting resulting from management's efforts to manage earning.

- assessing whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias.

- agreeing financial statement disclosures to underlying supporting documentation.

- reading the minutes of meetings of those charged with governance.

- reviewing the correspondence with relevant regulatory bodies.

- testing of journal entries to address the risk of fraud through management override.

- incorporating an element of unpredictability in the selection of the nature, timing, and extent of our audit procedures.

- corroborating the business rationale for transactions outside the normal course of business.

CONCLUSIONS REGARDING THE RISKS OF IRREGULARITIES INCLUDING FRAUD

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

We considered our audit was capable of detecting irregularities due to:

- the effectiveness of the entity's internal controls;

- the nature, timing and extent of audit procedures performed; and

- the absence of contradictory evidence.

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.

Frederick Norman (Senior Statutory Auditor)

for and on behalf of Harold Sharp Limited

5 Brooklands Place

Brooklands Road

Sale

Cheshire

M33 3SD

24 December 2025

TURNOVER

3

23,296,484

21,020,765

Cost of sales

22,142,077

18,240,160

GROSS PROFIT

1,154,407

2,780,605

Administrative expenses

1,743,439

1,547,994

(589,032

)

1,232,611

Other operating income

125

250

OPERATING (LOSS)/PROFIT

5

(588,907

)

1,232,861

Interest payable and similar expenses

6

27,622

54,940

(LOSS)/PROFIT BEFORE TAXATION

(616,529

)

1,177,921

Tax on (loss)/profit

7

(139,256

)

312,102

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(477,273

)

865,819

(LOSS)/PROFIT FOR THE YEAR

(477,273

)

865,819

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(477,273

)

865,819

FIXED ASSETS

Tangible assets

9

737,604

821,168

CURRENT ASSETS

Stocks

10

64,055

39,068

Debtors

11

7,775,512

6,524,621

Cash at bank

552,004

975,718

8,391,571

7,539,407

CREDITORS

Amounts falling due within one year

12

5,680,418

4,205,766

NET CURRENT ASSETS

2,711,153

3,333,641

TOTAL ASSETS LESS CURRENT LIABILITIES

3,448,757

4,154,809

CREDITORS

Amounts falling due after more than one year

13

(275,104

)

(467,168

)

PROVISIONS FOR LIABILITIES

16

(49,046

)

(85,761

)

NET ASSETS

3,124,607

3,601,880

CAPITAL AND RESERVES

Called up share capital

17

100

100

Retained earnings

18

3,124,507

3,601,780

SHAREHOLDERS' FUNDS

3,124,607

3,601,880

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:

M A Mayock - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

100

2,735,961

2,736,061

Changes in equity

Total comprehensive income

-

865,819

865,819

Balance at 31 March 2024

100

3,601,780

3,601,880

Changes in equity

Total comprehensive income

-

(477,273

)

(477,273

)

Balance at 31 March 2025

100

3,124,507

3,124,607

Cash flows from operating activities

Cash generated from operations

1

(711,276

)

1,674,924

Interest paid

(27,622

)

(23,204

)

Interest element of hire purchase payments paid

-

(31,736

)

Tax paid

(161,903

)

(58,209

)

Net cash from operating activities

(900,801

)

1,561,775

Cash flows from investing activities

Purchase of tangible fixed assets

(3,054

)

(659,665

)

New finance leases in year

-

166,766

Net cash from investing activities

(3,054

)

(492,899

)

Cash flows from financing activities

New loans in year

-

325,500

Loan repayments in year

(164,607

)

(161,688

)

Capital repayments in year

(47,203

)

(101,543

)

Amount introduced by directors

40,000

112,000

Amount withdrawn by directors

(190,221

)

(418,725

)

Inter-co loan

842,172

(856,850

)

Net cash from financing activities

480,141

(1,101,306

)

Decrease in cash and cash equivalents

(423,714

)

(32,430

)

Cash and cash equivalents at beginning of year

2

975,718

1,008,148

Cash and cash equivalents at end of year

2

552,004

975,718

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.3.25

31.3.24

£

£

(Loss)/profit before taxation

(616,529

)

1,177,921

Depreciation charges

86,618

74,720

Loss on disposal of fixed assets

-

1,495

Finance costs

27,622

54,940

(502,289

)

1,309,076

Increase in stocks

(24,987

)

(39,068

)

(Increase)/decrease in trade and other debtors

(1,797,771

)

571,272

Increase/(decrease) in trade and other creditors

1,613,771

(166,356

)

Cash generated from operations

(711,276

)

1,674,924

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 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

552,004

975,718

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

975,718

1,008,148

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank

975,718

(423,714

)

552,004

975,718

(423,714

)

552,004

Debt

Finance leases

(228,951

)

47,203

(181,748

)

Debts falling due within 1 year

(951,095

)

154,291

(796,804

)

Debts falling due after 1 year

(285,420

)

10,316

(275,104

)

(1,465,466

)

211,810

(1,253,656

)

Total

(489,748

)

(211,904

)

(701,652

)

1.	STATUTORY INFORMATION

Mackoy Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Accounting convention

These financial statements have been prepared in accordance with FRS 102 "The financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

The financial statements have been prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principle accounting policies adopted are set out below.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financial agreement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and reward of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The state of completion is calculated through agreement of the stage of completion with the customer,with revenue recognised proportionally to the stage of completion of the project against the value of the total contract. Where variations to the original contract occur, these are accounted for when approved by the client and when work has been completed.

Revenue Recognition

In respect of long-term contracts for on-going services, turnover represents the value of work done in the year. Turnover and costs in respect of long-term contracts and contracts for on-going services are recognised by reference to the stage of completion.

The stage of completion of contracts in progress is determined using the proportion that costs incurred for work performed to date bear to the estimated total costs. The amount of cost incurred to date as a proportion of total estimated costs to complete is applied to the estimated total turnover to identify the proportion of total turnover earned.

Retentions are released to the profit and loss account as income as the work is carried out and the company makes provision against retentions when considered necessary.

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 of valuation of assets less their residual values over their useful lives on the following bases:

Freehold Property - 2% Straight line (no depreciation is provided on land)

Plant and Machinery - 25% Reducing balance

Fixtures and Fittings - 25% Reducing balance

Motor Vehicles - 25% Reducing balance

Computer Equipment - 25% Reducing balance

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

Stocks

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 replacement cost and 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 and loss. Reversals of impairment losses are also recognised in profit and 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 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 amotised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators or 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 and 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, 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amotised 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. Trade creditors are recognised initially at transaction price and subsequently measured at the amortised cost using the effective interest method.

Other financial liabilities

Debt instruments that do not meet the conditions in the 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.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

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 borrowing in current liabilities.

Leases

Rental payable under operating leases, including any lease incentives received, are charged to income 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 lease asset are consumed.

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.

Retirement benefits

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

Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The director has considered relevant information, including the company's principal risks and uncertainties, the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. Based on these assessments and having regard to the resources available to the entity, the director has concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.

3.

TURNOVER

The turnover and loss (2024 - profit) before taxation are attributable to the one principal activity of the company.

4.	EMPLOYEES AND DIRECTORS

31.3.25

31.3.24

£

£

Wages and salaries

1,226,531

1,180,773

Social security costs

145,543

137,771

Other pension costs

22,634

22,322

1,394,708

1,340,866

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

31.3.25

31.3.24

Site workers and operatives

13

13

Administration and support

9

8

22

21

31.3.25

31.3.24

£

£

Directors' remuneration

90,439

92,600

5.	OPERATING (LOSS)/PROFIT

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

31.3.25

31.3.24

£

£

Hire of plant and machinery

1,962,735

1,595,940

Depreciation - owned assets

86,618

74,719

Loss on disposal of fixed assets

-

1,495

Auditors' remuneration

12,500

21,725

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.25

31.3.24

£

£

Interest on late tax

558

11,510

Loan

27,064

11,694

Hire purchase

-

31,736

27,622

54,940

7.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

31.3.25

31.3.24

£

£

Current tax:

UK corporation tax

(102,541

)

269,486

Deferred tax

(36,715

)

42,616

Tax on (loss)/profit

(139,256

)

312,102

UK corporation tax has been charged at 25% (2024 - 25%).