REGISTERED NUMBER: 06885525 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

FOR

DRAINFORCE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

DIRECTORS:

Mr D M Evans

Mr J M Powell

REGISTERED OFFICE:

Unit 2 Heol Ffaldau

Brackla Industrial Estate

Brackla

Bridgend

CF31 2AJ

REGISTERED NUMBER:

06885525 (England and Wales)

AUDITORS:

Baker Knoyle Audit Limited

Chartered Certified Accountants

Orbit Business Centre

Rhydycar Business Park

Merthyr Tydfil

CF48 1DL

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

REVIEW OF BUSINESS

The principal activity of the company during the year was environmental drainage contracting.

The company delivered a strong trading performance during the year, with turnover increasing to £7.3m (2024: £6.2m). This growth reflects increased levels of activity and continued demand for the company’s specialist drainage services.

Gross profit increased to £2.15m, generating a gross margin of approximately 29% (2024: 28%). Operating profit improved significantly to £570k (2024: £200k), reflecting improved operational efficiency and cost control.

The company reported a profit after taxation of £187k (2024: loss of £76k), representing a return to sustained profitability. At the year end, the company held cash balances of £636k, supporting ongoing working capital requirements and future investment plans.

The directors consider the company’s financial position and liquidity to be satisfactory. The company continues to operate as a key trading subsidiary within the Drainforce group and is expected to continue contributing positively to group results.

Looking ahead, the directors expect demand for drainage and infrastructure services to remain stable. The company will continue to focus on operational efficiency, investment in plant and equipment, and maintaining strong relationships with its customer base.

PRINCIPAL RISKS AND UNCERTAINTIES

The main risks and uncertainties facing the company include:

- fluctuations in demand within the construction and infrastructure sectors;

- cost pressures, including labour, fuel and materials;

- operational risks associated with specialist plant and equipment; and

- health and safety compliance in a regulated operating environment.

The directors manage these risks through ongoing monitoring of performance, maintaining appropriate insurance cover, adherence to health and safety standards, and prudent financial management.

KEY PERFORMANCE INDICATORS

The directors monitor performance using a range of financial key performance indicators, including:

Turnover: £7.3m (2024: £6.2m), reflecting increased activity levels.

Gross profit margin: approximately 29% (2024: 28%), demonstrating stable pricing and cost control.

Operating profit: £570k (2024: £200k), indicating improved operational efficiency.

Profit after taxation: £187k (2024: loss of £76k).

Cash at bank and in hand: £636k at 31 March 2025 (2024: £586k), supporting liquidity and working capital.

Non-financial indicators monitored by the directors include order book levels, utilisation of plant and equipment, and compliance with health and safety requirements.

ON BEHALF OF THE BOARD:

Mr D M Evans - Director

18 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 environmental drainage contracting.

DIVIDENDS

No interim dividends were paid during the year ended 31 March 2025.

The directors recommend final dividends per share as follows:

'A' shares 1.00 shares

£1.22

'B' shares 1.00 shares

£16.28

The total distribution of dividends for the year ended 31 March 2025 will be £ 17,500 .

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 M Evans

Mr J M Powell

Other changes in directors holding office are as follows:

C Jones ceased to be a director after 31 March 2025 but prior to the date of this report.

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, Baker Knoyle Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr D M Evans - Director

18 December 2025

Opinion

We have audited the financial statements of Drainforce 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 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 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 page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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 identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the Officers and other management (as required by auditing standards).

- We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting (including related trade union legislation) and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

- With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the Officers.

- We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

- We addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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

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.

Other Matter - Comparative Information

The financial statements for the year ended 31 March 2025 are the first financial statements of the company that have been audited. Accordingly, the comparative information presented as at and for the year ended 31 March 2024 took advantage of audit exemption under s. 477 of the Companies Act 2006. Therefore the prior period financial statements were not subject to audit.

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.

Richard Phillips FCCA (Senior Statutory Auditor)

for and on behalf of Baker Knoyle Audit Limited

Chartered Certified Accountants

Orbit Business Centre

Rhydycar Business Park

Merthyr Tydfil

CF48 1DL

19 December 2025

TURNOVER

7,306,509

6,230,928

Cost of sales

(5,159,549

)

(4,457,370

)

GROSS PROFIT

2,146,960

1,773,558

Distribution costs

(14,287

)

(12,507

)

Administrative expenses

(1,572,187

)

(1,570,947

)

560,486

190,104

Other operating income

5,748

9,932

OPERATING PROFIT

4

566,234

200,036

Interest receivable and similar income

5,212

6,359

571,446

206,395

Interest payable and similar expenses

5

(307,044

)

(312,987

)

PROFIT/(LOSS) BEFORE TAXATION

264,402

(106,592

)

Tax on profit/(loss)

6

(75,068

)

30,216

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

189,334

(76,376

)

PROFIT/(LOSS) FOR THE YEAR

189,334

(76,376

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

189,334

(76,376

)

FIXED ASSETS

Tangible assets

8

3,658,712

3,570,118

CURRENT ASSETS

Stocks

9

600,845

307,480

Debtors

10

1,004,014

879,607

Investments

11

37,350

37,350

Cash at bank and in hand

636,356

586,207

2,278,565

1,810,644

CREDITORS

Amounts falling due within one year

12

2,362,858

2,334,531

NET CURRENT LIABILITIES

(84,293

)

(523,887

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,574,419

3,046,231

CREDITORS

Amounts falling due after more than one year

13

(1,994,142

)

(1,712,856

)

PROVISIONS FOR LIABILITIES

17

(412,076

)

(337,008

)

NET ASSETS

1,168,201

996,367

CAPITAL AND RESERVES

Called up share capital

18

8,600

8,600

Retained earnings

19

1,159,601

987,767

SHAREHOLDERS' FUNDS

1,168,201

996,367

The financial statements were approved by the Board of Directors and authorised for issue on 18 December 2025 and were signed on its behalf by:

Mr D M Evans - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

8,600

1,064,143

1,072,743

Changes in equity

Total comprehensive income

-

(76,376

)

(76,376

)

Balance at 31 March 2024

8,600

987,767

996,367

Changes in equity

Dividends

-

(17,500

)

(17,500

)

Total comprehensive income

-

189,334

189,334

Balance at 31 March 2025

8,600

1,159,601

1,168,201

Cash flows from operating activities

Cash generated from operations

1

663,268

880,897

Interest paid

(100,775

)

(104,056

)

Interest element of hire purchase payments paid

(206,269

)

(208,931

)

Net cash from operating activities

356,224

567,910

Cash flows from investing activities

Purchase of tangible fixed assets

(1,301,442

)

(358,294

)

Sale of tangible fixed assets

694,951

491,841

Interest received

5,212

6,359

Net cash from investing activities

(601,279

)

139,906

Cash flows from financing activities

Loan repayments in year

(106,765

)

(95,946

)

Capital repayments in year

416,670

(730,828

)

Amount withdrawn by directors

2,799

54,998

Equity dividends paid

(17,500

)

-

Net cash from financing activities

295,204

(771,776

)

Increase/(decrease) in cash and cash equivalents

50,149

(63,960

)

Cash and cash equivalents at beginning of year

2

586,207

650,167

Cash and cash equivalents at end of year

2

636,356

586,207

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

2025

2024

£

£

Profit/(loss) before taxation

264,402

(106,592

)

Depreciation charges

518,270

543,612

Profit on disposal of fixed assets

(371

)

(818

)

Movement of balance to Group Undertaking

(213,675

)

(225,680

)

Finance costs

307,044

312,987

Finance income

(5,212

)

(6,359

)

870,458

517,150

Increase in stocks

(293,365

)

(307,480

)

Decrease in trade and other debtors

85,874

391,881

Increase in trade and other creditors

301

279,346

Cash generated from operations

663,268

880,897

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

636,356

586,207

Year ended 31 March 2024

31/3/24

1/4/23

£

£

Cash and cash equivalents

586,207

650,167

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/4/24

Cash flow

At 31/3/25

£

£

£

Net cash

Cash at bank and in hand

586,207

50,149

636,356

586,207

50,149

636,356

Liquid resources

Current asset investments

37,350

-

37,350

37,350

-

37,350

Debt

Finance leases

(2,195,606

)

(416,670

)

(2,612,276

)

Debts falling due within 1 year

(106,510

)

(11,845

)

(118,355

)

Debts falling due after 1 year

(244,888

)

118,608

(126,280

)

(2,547,004

)

(309,907

)

(2,856,911

)

Total

(1,923,447

)

(259,758

)

(2,183,205

)

1.	STATUTORY INFORMATION

Drainforce 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

Basis of preparing the financial statements

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

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

20% on cost, 15% on cost and 10% on cost

Stocks

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

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits

The 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.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,599,345

2,439,405

Other pension costs

39,383

40,445

2,638,728

2,479,850

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

2025

2024

Employees

58

52

2025

2024

£

£

Directors' remuneration

159,483

109,170

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Other operating leases

52,043

75,691

Depreciation - owned assets

72,208

57,876

Depreciation - assets on hire purchase contracts

446,060

485,735

Profit on disposal of fixed assets

(371

)

(818

)

Auditors' remuneration

4,000

-

Other non- audit services

5,010

-

Foreign exchange differences

6,201

3,728

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

1,088

1,211

Bank loan interest

79,653

87,993

HMRC Penalties & interest

20,034

14,852

Hire purchase

206,269

208,931

307,044

312,987

6.

TAXATION

Analysis of the tax charge/(credit)

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

2025

2024

£

£

Deferred tax

75,068

(30,216

)

Tax on profit/(loss)

75,068

(30,216

)

7.

DIVIDENDS

2025

2024

£

£

'A' shares shares of 1.00 each

Final

10,000

-

'B' shares shares of 1.00 each

Final

7,500

-

17,500

-

8.	TANGIBLE FIXED ASSETS

Short

Plant and

Motor

leasehold

machinery

vehicles

Totals

£

£

£

£

COST

At 1 April 2024

181,233

4,569,413

97,465

4,848,111

Additions

73,286

1,207,117

21,039

1,301,442

Disposals

-

(1,275,284

)

-

(1,275,284

)

At 31 March 2025

254,519

4,501,246

118,504

4,874,269

DEPRECIATION

At 1 April 2024

120,333

1,138,525

19,135

1,277,993

Charge for year

47,124

453,988

17,156

518,268

Eliminated on disposal

-

(580,704

)

-

(580,704

)

At 31 March 2025

167,457

1,011,809

36,291

1,215,557

NET BOOK VALUE

At 31 March 2025

87,062

3,489,437

82,213

3,658,712

At 31 March 2024

60,900

3,430,888

78,330

3,570,118