REGISTERED NUMBER: 00264322 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

FOR

BETHELL CONSTRUCTION LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Comprehensive Income

11

Statement of Financial Position

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Financial Statements

15

DIRECTORS:

T A Kilroe

C R Dixon

P Donnellan

N Hopkins-Coman

C M Morley

M D Holmes

G P McCoy

J O'Leary

J Finnegan

SECRETARY:

N Hopkins-Coman

REGISTERED OFFICE:

Dane House

Europa Park

Stoneclough Road

Kearsley

Manchester

M26 1GG

REGISTERED NUMBER:

00264322 (England and Wales)

AUDITORS:

Fairhurst Audit Services Ltd

Statutory Auditors

Chartered Accountants

Douglas Bank House

Wigan Lane

Wigan

Lancashire

WN1 2TB

BANKERS:

Lloyds Bank plc

PO Box 1000

Market Street

Manchester

BX11 1LT

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

The principal activities of the Company continue to be that of civil engineering work, with three core revenue streams of Highways, Infrastructure and Water. The Company has been established for over 160 years and is a well-respected contractor operating across several market sectors including local authority highways, public utilities, private industry, and aviation. Future growth is also being targeted from a strong entrance into the renewables markets, including carbon capture, battery storage, solar generation and hydrogen technology, whilst also developing shaft sinking and tunnelling “no dig activities” as part of the Company’s ten-year business plan.

REVIEW OF BUSINESS

The Company offers its clients intelligent solutions from initial design collaboration to construction and ongoing infrastructure maintenance. These are delivered with a strong emphasis on self-delivery utilising a large resource of skilled and semi-skilled staff. Attracting and retaining such a skill base is challenging, especially in the current economic environment, but the Company has established training and development strategies including apprenticeship and graduate programmes, with forward investment key to developing future generations.

The Company enjoyed a strong financial performance this year with a 31% increase in turnover to £70.1m (2024: £53.5m). This was achieved through a continued focus on cost control, business processes, and strong commercial acumen which enabled the gross profit to increase by 35% to £11.8m (2024: £8.7m), representing a margin of 17% (2024: 16%). The Company’s indirect overheads increased this year by 37% to £7.4m (2024: £5.4m) due not only to the recruitment of key employees in support of this growth but also preparing for future diversification, whilst also investing in new premises both at the head office base in Kearsley and supporting the Company’s growing presence in the North East of England. In 2025 overheads represented 11% of turnover (2024: 10%) and after net interest the Company reported a strong 32% increase in operating profit to £4.3m (2024: £3.3m) at an operating margin of 6.2% (2024: 6.1%).

Turnover growth in 2025 was underpinned by relationships sustained with a number of key clients including United Utilities (UU), Manchester Airport Group (MAG), Trans Pennine Route Alliance, and a number of local Highways Authorities. In all client engagement, collaborative relationships and infrastructure delivery are key as the Company supports asset maintenance programmes and renewable energy sectors. In 2025 the Company was also successful in securing further engagement with UU via the NMS framework and developing a pipeline for future opportunities through the Design & Build AMP8, Build Only AMP8 and Reservoir AMP8 Frameworks. These are anticipated to include multiple design and build opportunities which should allow diversification across regional water boundaries and the potential for strong tier 1 relationships.

The Company continues to maintain a strong brand recognition and profile within its operating sectors, achieving acknowledgement as a solutions provider with a strong emphasis on safety, quality, and management of the well-being of all its people and those who interact with its activities. This is also recognised through industry awards including Investors in People Gold Status. This approach has increased overall client confidence and engagement, contributing to the Company being able to increase average order values to in excess of £3.5m from £2.5m.

PRINCIPAL RISKS AND UNCERTAINTIES

The backdrop of political change has not affected trading in the immediate period, with most revenue streams experiencing and anticipating growth, with a watchful eye on public sector budgets key to ensuring sustainability. The high levels of investment in UK infrastructure continues to provide good opportunities for continued revenue growth. The well-publicised and significant impact of inflation in recent times, appear to have plateaued, with a manageable position maintained across all contract commitments. Although reduced, cost inflation does remain a risk to operations with the potential to impact labour and material costs as well as fuel and utility material prices throughout the market. The Company therefore continues to monitor such costs with increases being passed onto clients in tendering submissions and exercises appropriate contract clauses wherever appropriate.

SECTION 172(1) STATEMENT

Duty to promote the success of the Company

In executing our strategy, Directors must act in accordance with a set of general duties detailed in section 172 of the Companies Act 2006. These general duties include a duty to promote the success of the Company, and specifically, to act in a way that the Director considers, in good faith, would be most likely to promote the success of the Company for the benefit of its shareholders as a whole and, in doing so, having regard (amongst other matters) to the:

- likely consequences of any decisions in the long-term.

- interests of the Company's employees.

- need to foster the Company's business relationships with suppliers, customers, and others.

- impact of the Company's operations on the community and environment; and

- desirability of the Company maintaining a reputation for high standards of business conduct.

This statement has been prepared in accordance with the requirements of The Companies (Miscellaneous Reporting) Regulations 2018, which require the Company to describe how the Directors have had regard to the matters set out in section 172 of the Companies Act 2006 during the financial year under review. It is noted that the Directors have always acted in accordance with such duties in their decision making and they will continue to do so. Considering the additional disclosure requirements, we have set out in the strategic report how the Directors have fulfilled their duties during the year ended 30th September 2025..

Having regard to the likely consequences of any decisions in the long-term

The Board cultivates strong relationships with key stakeholders so that it is well placed and sufficiently informed to take their considerations into account when making decisions and assessing any likely long-term impact of those decisions.

Having regard to the interest of the Company's employees

The Board understands that the Group's employees are fundamental to its long-term success. The health, safety and well-being of the employees are of paramount importance alongside the provision of an ethical workplace. The Group engages in an active way with its employees. Many of the staff work on site and senior management regularly complete site visits to maintain timely interaction.

Having regard to the need to foster the Company's business relationships with suppliers, customers, and others.

Fostering positive business relationships with key stakeholders, such as suppliers and customers is also important to the success of the Group's businesses. As a result, engagement with customers is in part delegated to senior management, who know their customers best. The Board has been and continues to be, available to support the business in this area as and when required and will continue to maintain the relationships with key suppliers and customers.

Having regard to the impact of the Company's operations on the community and environment in their decision making.

The Directors need to have regard to the impact of the Company's operations on the community and environment. The Board plays a constructive role in tackling issues through engagement and investment.

We are committed to reducing our carbon footprint and contribution to climate change where economically viable.

Having regards to the desirability of the Company maintaining a reputation for high standards of business conduct.

The Board recognises that culture, values, and standards are key contributors to how a company creates and sustains value over the longer-term, to enable it to maintain a reputation for high standards of business conduct which guide and assist in the Board's decision making, and in doing so, help promote the Company's success, recognising, amongst other things, the likely consequences of any decision in the long-term and wider stakeholder considerations.

On the basis of the above, the members of the Board consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Companies Act 2006) in the decisions taken during the year ended 30 September 25.

FUTURE DEVELOPMENTS

Key successes gained throughout 2025, including an increased breadth of client base, provide a robust foundation for 2026 and beyond, with placement on the Leeds City Council Minor Works Framework, UU AMP 8 Framework, amongst several other procurement processes the potential forward work pipeline forecast is very strong. Together with key client development in the renewables energy sector this gives confidence in business forecasting and planning. A further area of focus for strategic growth comes from the aviation industry where capital investment programmes from MAG are buoyant across both airside and landside opportunities, with further framework procurement underway.

The new financial year has begun well, with in excess of 75% of budgeted turnover already secured or accounted for in anticipated awards, supported with a strong cash balance. This position of strength is affording the opportunity for appropriate investment in further regional growth across the North West and North East.

FINANCIAL INSTRUMENTS

The Company has a normal level of exposure to price, credit, liquidity, and cash flow risks arising from trading activities which are only conducted in sterling. The Company does not enter into any hedging transactions.

ON BEHALF OF THE BOARD:

C M Morley - Director

18 December 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of civil engineering work. With three core revenue streams of Highways, Infrastructure and Water. The company has been established for over 150 years and is a well respected contractor operating across several market segments including local authority highways, public utilities, private industry and aviation. No change in activities is anticipated in the foreseeable future with a strong strategic outlook established under a clear 10-year business plan.

DIVIDENDS

The Company has paid interim dividends of £2,763,906 (2024: £1,942,914).

DIRECTORS

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

T A Kilroe

C R Dixon

P Donnellan

N Hopkins-Coman

C M Morley

M D Holmes

G P McCoy

J O'Leary

Other changes in directors holding office are as follows:

J Finnegan was appointed as a director after 30 September 2025 but prior to the date of this report.

STREAMLINED ENERGY AND CARBON REPORTING

The company is exempt from disclosing this information, being part of a group which prepares this information on a consolidated basis.

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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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, Fairhurst Audit Services Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C M Morley - Director

18 December 2025

Opinion

We have audited the financial statements of Bethell Construction Limited (the 'company') for the year ended 30 September 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows 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 30 September 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The 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 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:

Extent to which the audit was considered capable of detecting irregularities including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect in the determination of material amounts and disclosures in the financial statement, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatements of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-

We obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. As a result of these procedures we consider that the most significant laws and regulations that have a direct impact on the financial statements are FRS 102 and the Companies Act 2006.

-

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing minutes of meetings and inspecting legal correspondence.

In assessing the susceptibility of the company's financial statements to material misstatement, including obtaining and understanding of how fraud might occur;

-

We gained an understanding of the controls that management have in place to prevent and detect fraud.

-

We enquired of management about any instances of fraud that had taken place during the year.

To address the risk of fraud through management bias and override of controls;

-

We performed analytical procedures to identify any unusual or unexpected relationships;

-

We tested journal entries to identify unusual transactions; and

-

We assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of

internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

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.

Louise Webster BSc BFP ACA (Senior Statutory Auditor)

for and on behalf of Fairhurst Audit Services Ltd

Statutory Auditors

Chartered Accountants

Douglas Bank House

Wigan Lane

Wigan

Lancashire

WN1 2TB

18 December 2025

TURNOVER

70,092,784

53,491,927

Cost of sales

58,319,310

44,762,438

GROSS PROFIT

11,773,474

8,729,489

Administrative expenses

7,489,047

5,504,286

4,284,427

3,225,203

Other operating income

53,194

56,904

OPERATING PROFIT

5

4,337,621

3,282,107

Interest receivable and similar income

6

401,154

181,784

4,738,775

3,463,891

Interest payable and similar expenses

7

53,748

8,376

PROFIT BEFORE TAXATION

4,685,027

3,455,515

Tax on profit

8

1,225,561

819,002

PROFIT FOR THE FINANCIAL YEAR

3,459,466

2,636,513

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,459,466

2,636,513

FIXED ASSETS

Tangible assets

10

2,043,976

2,124,150

CURRENT ASSETS

Stocks

11

30,993

47,198

Debtors

12

12,995,784

12,222,237

Cash at bank

13

12,315,672

7,997,235

25,342,449

20,266,670

CREDITORS

Amounts falling due within one year

14

21,306,935

17,759,554

NET CURRENT ASSETS

4,035,514

2,507,116

TOTAL ASSETS LESS CURRENT LIABILITIES

6,079,490

4,631,266

CREDITORS

Amounts falling due after more than one year

15

1,550,144

797,480

NET ASSETS

4,529,346

3,833,786

CAPITAL AND RESERVES

Called up share capital

18

950,000

950,000

Retained earnings

19

3,579,346

2,883,786

SHAREHOLDERS' FUNDS

4,529,346

3,833,786

The financial statements were approved by the Board of Directors and authorised for issue on 17 December 2025 and were signed on its behalf by:

T A Kilroe - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2023

950,000

2,190,187

3,140,187

Changes in equity

Dividends

-

(1,942,914

)

(1,942,914

)

Total comprehensive income

-

2,636,513

2,636,513

Balance at 30 September 2024

950,000

2,883,786

3,833,786

Changes in equity

Dividends

-

(2,763,906

)

(2,763,906

)

Total comprehensive income

-

3,459,466

3,459,466

Balance at 30 September 2025

950,000

3,579,346

4,529,346

Cash flows from operating activities

Cash generated from operations

24

8,806,100

7,585,747

Interest paid

(49,386

)

-

Interest element of hire purchase payments paid

(4,362

)

(8,376

)

Tax paid

(2,072,472

)

(654,341

)

Net cash from operating activities

6,679,880

6,923,030

Cash flows from investing activities

Purchase of tangible fixed assets

(301,526

)

(251,418

)

Interest received

401,154

181,784

Net cash from investing activities

99,628

(69,634

)

Cash flows from financing activities

Capital repayments in year

(95,346

)

(91,332

)

Intercompany loans

398,181

(261,431

)

Equity dividends paid

(2,763,906

)

(1,942,914

)

Net cash from financing activities

(2,461,071

)

(2,295,677

)

Increase in cash and cash equivalents

4,318,437

4,557,719

Cash and cash equivalents at beginning of year

25

7,997,235

3,439,516

Cash and cash equivalents at end of year

25

12,315,672

7,997,235

1.	STATUTORY INFORMATION

Bethell Construction 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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 based on the invoiced value of all goods despatched and services provided prior to the period end, excluding VAT and other sales-based taxes and net of trade discounts.

Turnover also includes the proportion of the sales value of long-term contracts relevant to their state of completion. The turnover and pre-tax profit, all of which arises in the United Kingdom, is attributable to the principal activity of the Company.

Tangible fixed assets

Tangible fixed assets are stated at historic cost. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. Finance costs are not capitalised. Depreciation is provided on cost in equal annual instalments over the estimated useful lives of the assets. The rates of depreciation are as follows:

Plant and machinery

2-5 years

Fixtures and fittings

3-10 years

Motor vehicles

3-5 years

Stocks

Stocks are valued at the lower of cost, including materials, direct labour and overheads, and net realisable value.

Financial instruments

Short term debtors and amounts recoverable on contracts are measured at transaction price, less any impairment. Short term trade creditors are measured at transaction price. The following assets and liabilities are classified as financial instruments, trade debtors (including amounts recoverable on contracts), Directors' loan accounts, trade creditors, accruals and hire purchase agreements.

Financial instruments that are payable or receivable within one year, typically Directors' loan accounts, trade creditors, accruals and trade debtors, are measured initially and subsequently at the undiscounted amount of the cash or other consideration that is expected to be paid or received.

Financial instruments repayable in more than one year such as hire purchase agreements are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method unless the effect of discounting would be immaterial.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Leases

Assets obtained under finance leases and hire purchase contracts are capitalised at the present value of the minimum lease payments on acquisition and depreciation over their estimated useful lives. The finance charges are allocated over the period of the lease in proportion to the capital element outstanding. operating lease rentals are charged to income in equal amounts over the lease term.

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.

Amounts recoverable on contracts

In respect of long-term contracts, the attributable profit is recognised once the final outcome can be assessed with reasonable certainty and reflects the proportion of work completed to date on the project. Variations in contract work and claims are included to the extent that the amount can be measured reliably and its receipt is considered probable. Full provision is made for losses on any contract in the period the loss is first foreseen.

The difference between work done and invoices raised on a contract is recognised as amounts recoverable on contracts. Any excess payments on account over and above the value of work done are included within creditors.

Contract costs are recognised as expenses in the period in which they are incurred. Any bid costs or tender costs are expensed as incurred until the stage is reached when it is virtually certain that the contract will be won.

Long term staff incentive scheme

The Bethell Construction Shadow Equity Plan (SHEP) is valued in line with the scheme documents.

The value of the SHEP is to be determined annually using a multiple of the weighted average pre-tax "normalised profits" for the three trading years inclusive of the current year less the base value of each unit.

The movement year on year is to be recognised as administrative expenses.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Preparation of the financial statements require management to make significant judgements and estimates. the items in the financial statements where these judgements and estimates have been made include:

-

Depreciation and residual value. the directors have reviewed the asset lives and associated residual values of

-

The stage of completion as noted in the turnover policy is subject to estimation and judgement and the directors make use of the information available to them at the balance sheet date to formulate their calculation, this is implemented on a contract by contract basis..

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

15,133,773

11,971,138

Social security costs

1,828,236

1,312,963

Other pension costs

1,237,540

894,570

18,199,549

14,178,671

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

2025

2024

Direct labour

133

117

Contracting supervision and admin.

141

121

274

238

In addition to the staff costs above the company also operates a long term incentive scheme, Shadow Equity Plan (SHEP) for key senior management. As of 30th September the scheme valuation is £1,550,144 (2024: £740,144) and is recognised in accruals with a charge in the year of £810,000 (2024: £488,034) recognised in administrative costs.

2025

2024

£

£

Directors' remuneration

1,276,236

1,072,553

Directors' pension contributions to money purchase schemes

172,520

195,350

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

Money purchase schemes

5

6

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

427,254

330,472

Pension contributions to money purchase schemes

29,002

23,349

5.	OPERATING PROFIT

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

2025

2024

£

£

Other operating leases

108,572

92,555

Depreciation - owned assets

353,809

316,969

Depreciation - assets on hire purchase contracts

27,891

27,891

Auditors' remuneration

13,000

10,000

Taxation compliance services

12,000

12,000

Other non- audit services

5,578

1,000

Costs recharged to fellow group companies and related parties

(1,470,541

)

(1,445,143

)

Rentals for short term hire of plant and machinery

7,289,636

5,457,677

6.

INTEREST RECEIVABLE AND SIMILAR INCOME

2025

2024

£

£

Bank and similar interest

401,154

181,784

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Interest on late paid tax

49,386

-

Hire purchase

4,362

8,376

53,748

8,376

8.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

1,426,050

1,023,129

Corporation tax re prior years

(19,384

)

-

Total current tax

1,406,666

1,023,129

Deferred tax

(181,105

)

(204,127

)

Tax on profit

1,225,561

819,002

Reconciliation of total tax charge included in profit and loss

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

2025

2024

£

£

Profit before tax

4,685,027

3,455,515

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

1,171,257

863,879

Effects of:

Expenses not deductible for tax purposes

(5,925

)

5,000

Adjustments to tax charge in respect of previous periods

(19,384

)

(24,406

)

Permanent timing differences

79,613

(25,471

)

Total tax charge

1,225,561

819,002

9.

DIVIDENDS

2025

2024

£

£

Ordinary shares of £1 each

Interim

2,763,906

1,942,914

10.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

COST

At 1 October 2024

348,309

3,318,785

2,900

3,669,994

Additions

27,811

273,715

-

301,526

Disposals

(8,801

)

(218,350

)

-

(227,151

)

At 30 September 2025

367,319

3,374,150

2,900

3,744,369

DEPRECIATION

At 1 October 2024

257,630

1,287,187

1,027

1,545,844

Charge for year

9,597

370,653

1,450

381,700

Eliminated on disposal

(8,801

)

(218,350

)

-

(227,151

)

At 30 September 2025

258,426

1,439,490

2,477

1,700,393

NET BOOK VALUE

At 30 September 2025

108,893

1,934,660

423

2,043,976

At 30 September 2024

90,679

2,031,598

1,873

2,124,150