Company Registration No. 00874746 (England and Wales)
CHEETHAM HILL CONSTRUCTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
CHEETHAM HILL CONSTRUCTION LIMITED
COMPANY INFORMATION
Directors
K Myers
H Chamberlain
C Chamberlain
M Goodier
S Isherwood
P Sumner
Secretary
K Myers
Company number
00874746
Registered office
Woodhill Road
Bury
Lancashire
BL8 1AR
Auditor
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
CHEETHAM HILL CONSTRUCTION LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Statement of income and retained earnings
10
Balance sheet
11
Notes to the financial statements
12 - 22
CHEETHAM HILL CONSTRUCTION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2025
- 1 -

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

Review of the business

We are pleased to report these financial accounts, with a significant increase in both Turnover and Profit this year. As projects and frameworks that had previously been delayed, finally got the go ahead, our turnover has increased to £27,149,000 from £18,8 45,000, a significant 45%. Profit figures before tax have also increased from £936,000 to £1,544,000. T he company also benefitted from the dry summer months, enabling little down time in our work programs.

Significant projects this year have included our continued work on Debris Screens around the North west, working on frameworks for the Environment agency, and Independent Drainage Boards on their flood defence projects. These have featured new Pumping Stations, floodgates, river repairs, upgrading assets, and working closely on environmental impacts.

This year CHC began work on a scheme for the National Trust at Formby, with the repositioning of the drifted sand dunes, and creating a new visitor carpark, a really prestigious and sensitive contract involving work with Environmentalists, and the local community. This project will be completed by the end of 2025, and planned to be delivered on time for the client, for the public to enjoy.

Brownfield remediation work has been completed in the year in the Midlands with the utilisation of our extensive plant fleet and expertise in groundworks. We have been able to expand our client base as a result, and will continue to work with these new clients into 2025/2026.

Going forward into 2025/2026 sees the business with a strong order book, and with frameworks locked in until 2028 we are looking forward to maintaining this increased turnover and workload.

CHEETHAM HILL CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
- 2 -
Principal risks and uncertainties

Increasing costs for labour and materials, can impact significantly on the business. External economic factors also have impacts on costs of everything we purchase, therefore planning and reacting to these changes is important. Highlighting our concerns we hosted a meeting with James Frith, Bury North MP where some of the Directors discussed the challenges we face as a local SME in Civil Engineering including procurement, recruitment and apprenticeships.

The business has successfully maintained its accreditations with Safecontractor, Constructionline Gold, CHAS, CQMS, and Achilles UVDB Silver, as well as our ISO certifications for ISO 45001, ISO 9001, and ISO 14001.

In July 2024, we were hono u red to receive the RoSPA Order of Distinction (Gold) for the 18th consecutive year, recogni s ing our ongoing commitment to maintaining an excellent health and safety record.

We also retained our Gold accreditation from the Supply Chain Sustainability School, demonstrating our continued commitment to sustainability and collaborative working across our supply chain.

During the reporting period August 2024 – July 2025, we delivered 275 training days, a decrease from 385 the previous year. This reduction reflects the current number of direct employees.

We are proud to report 100% positive client feedback and zero customer complaints during this period.

Accidents and Incidents (1 August 2024 – 31 October 2025):

- 0 RIDDOR-reportable incidents

- 1 lost-time incident (1 day)

- 2 first aid incidents (no lost time)

- 0 pollution incidents

- 0 HSE / EA interventions

- 0 customer complaints

Other information

CHC has Groundworker apprentices studying at Hopwood Hall College and are actively supporting and advising the college to hopefully offer a Plant Apprenticeship in the next year. We have employed a further Degree Level Apprentice who is studying Civil Engineering, along with another one following Quantity Surveying at university. The company was extremely proud that our first Civil Engineering Degree level apprentice graduated with a First Class Honours Degree. Our HR team offer work experience to local school children in Year 10 both in the office and out on site and also learners studying T Levels and have attended many careers events.

We were delighted to be awarded the Social Value Award at the annual CECA North West dinner for the work that we have done with Project Recce, supporting service leavers and veterans into employment within the construction industry.

Our annual charitable donations continue to support local organisations ; we sponsor a local netball team; several boys and girls football teams and fund two pupils through a Bursary Scheme at Bury Grammar school.

The business continues to donate annually to Cancer Research UK and at Christmas time , our employees and suppliers collected a large amount of toys for the Salvation Army gift appeal in both Barrow in Furness and Gainsborough, both close to where we had contracts at the time. Furthermore, supporting the North West Training Group’s Christmas appeal for St Helens Young Carers. An extremely worthwhile experience for the company was to support the Panathlon Challenge, a national charity which supports children with disabilities and special needs opportunities to engage in competitive sport. This is specifically for those children who would not normally be selected for school sports events.

CHEETHAM HILL CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
- 3 -
Development and performance

This year saw the group invest in around £1.6 m in capital equipment. This included the rebuild of 4 Bulldozers by their manufacturer. This mechanical rebuild allows us to extend the life of the original asset for further years, rather than purchasing new. Working alongside the manufacturers this has been a worthwhile project as we are breathing new life into the plant and recycling machinery for the future use in the business. This also reduces our Carbon footprint significantly.

We have had further green investment as we purchased 2 Solartainers to power our new welfare setups on site. The Solar power replaces the need for diesel generators to power our Cabins and offices, as well as reducing costs, and noise, they are reducing our emissions from burning fossil fuels. During the year, fully electric vehicles were hired for some of our site on staff and there are plans to invest in similar vehicles in 2025/26, this again shows commitment for reducing our emissions now and for the future.

With long term projects secured we have been able to invest in 16 new cabins, welfare units, drying rooms and toilet blocks. These create a much better working environment for our employees and clients.

Due to the increase in further work in the Yorkshire region, CHC has expanded and opened an office in Doncaster, this is linking up with Doncaster College and their T Level programme.

Key performance indicators

Our liquidity ratio is 3, net profit margins are 5.7%.

The qualitative feedback from our clients has been superb this year, with zero negative and this target continues.

Environmentally we utilise the sustainability tool, and measure our performance, setting targets to reduce our emissions.

The Summer has seen us totally self sufficient at Head Office with generation of solar energy with our solar panels, and it reduce s our carbon footprint, and these are now supplemented with the solartainers to reduce the site reliance on diesel to power cabins.

End of year position

The business is thrilled to produce these results and it is recognition of the teams hard work. The stability of a committed and long serving workforce is key to the success of the company. The Board will continue with the same principals and ethos as we continue into our 60th year of trading.

On behalf of the board

K Myers
Director
2 February 2026
CHEETHAM HILL CONSTRUCTION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2025
- 4 -

The directors present their annual report and financial statements for the year ended 31 July 2025.

Principal activities

The principal activity of the company continued to be that of construction of civil engineering projects and plant hire.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

K Myers
H Chamberlain
C Chamberlain
M Goodier
S Isherwood
P Sumner
Auditor

The auditor, PM+M Solutions for Business LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report 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; and

- 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 of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

CHEETHAM HILL CONSTRUCTION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
- 5 -
Medium-sized companies exemption

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

On behalf of the board
K Myers
Director
2 February 2026
CHEETHAM HILL CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHEETHAM HILL CONSTRUCTION LIMITED
- 6 -
Opinion

We have audited the financial statements of Cheetham Hill Construction Limited (the 'company') for the year ended 31 July 2025 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including 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 July 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

CHEETHAM HILL CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHEETHAM HILL CONSTRUCTION LIMITED (CONTINUED)
- 7 -
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 identifie d material misstatements in the strategic report or the directors' r eport.

We have nothing to report in respect of the following matters in relation to which 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 directors' r esponsibilities s tatement, 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 is 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.

Auditor's 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 an auditor's report 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.

CHEETHAM HILL CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHEETHAM HILL CONSTRUCTION LIMITED (CONTINUED)
- 8 -

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:

- the nature of the industry and sector, control environment and business performance including the design of the Company's remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;

- results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- the matters discussed among the audit engagement team and relevant specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud;

- a ny matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to:

  - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

  - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

  - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income, posting of unusual journals and complex transactions; and manipulating the Company's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety regulations, pensions legislation and tax legislation.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and

- in addressing the identified risks of fraud through management override of controls, 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.

Owing 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, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, 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 non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

CHEETHAM HILL CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHEETHAM HILL CONSTRUCTION LIMITED (CONTINUED)
- 9 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report 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.

Claire Layton ACA (Senior Statutory Auditor)
For and on behalf of PM+M Solutions for Business LLP, Statutory Auditor
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
4 February 2026
CHEETHAM HILL CONSTRUCTION LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JULY 2025
- 10 -
2025
2024
Notes
£
£
Turnover
3
27,149,440
18,844,532
Cost of sales
(23,067,636)
(15,623,481)
Gross profit
4,081,804
3,221,051
Distribution costs
-
0
(864)
Administrative expenses
(3,199,852)
(2,965,199)
Operating profit
4
881,952
254,988
Interest receivable and similar income
7
682,968
680,711
Interest payable and similar expenses
8
(20,595)
-
0
Profit before taxation
1,544,325
935,699
Tax on profit
9
(386,662)
(234,524)
Profit for the financial year
1,157,663
701,175
Retained earnings brought forward
12,554,778
11,853,603
Retained earnings carried forward
13,712,441
12,554,778

The profit and loss account has been prepared on the basis that all operations are continuing operations.

CHEETHAM HILL CONSTRUCTION LIMITED
BALANCE SHEET
AS AT
31 JULY 2025
31 July 2025
- 11 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,431,343
1,580,969
Current assets
Stocks
11
10,000
10,000
Debtors
12
3,365,792
3,733,107
Cash at bank and in hand
15,174,822
14,895,594
18,550,614
18,638,701
Creditors: amounts falling due within one year
13
(5,893,904)
(7,240,096)
Net current assets
12,656,710
11,398,605
Total assets less current liabilities
14,088,053
12,979,574
Provisions for liabilities
Deferred tax liability
14
342,612
391,796
(342,612)
(391,796)
Net assets
13,745,441
12,587,778
Capital and reserves
Called up share capital
16
33,000
33,000
Profit and loss reserves
13,712,441
12,554,778
Total equity
13,745,441
12,587,778

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 2 February 2026 and are signed on its behalf by:
K Myers
C Chamberlain
Director
Director
Company registration number 00874746 (England and Wales)
CHEETHAM HILL CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
- 12 -
1
Accounting policies
Company information

Cheetham Hill Construction Limited is a private company limited by shares incorporated in England and Wales. The registered office is Woodhill Road, Bury, Lancashire, BL8 1AR.

1.1
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” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. T he company has therefore taken advantage of e xemptions from the following disclosure requirements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Drillwave Limited. These consolidated financial statements are available from its registered office, Woodhill Road, Bury, Lancashire, England, BL8 1AR.

1.2
Going concern

A true t the time of approving the financial statements, t he directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
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.

As soon as the outcome of a construction contract can be estimated reliably, contract revenue and expenses are recognised in the profit and loss in proportion to the stage of completion of the contract. The stage of completion is assessed by reference to surveys of work performed.

Revenue relating to equipment rentals are recognised on a straight line basis over the period of rental.

Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.

CHEETHAM HILL CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
1
Accounting policies
(Continued)
- 13 -

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
1-5 years straight line

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

1.5
Impairment of fixed assets

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.6
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.

CHEETHAM HILL CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
1
Accounting policies
(Continued)
- 14 -
1.7
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

1.8
Cash and cash equivalents

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

1.9
Financial instruments

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

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

Impairment of financial assets

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

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

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

CHEETHAM HILL CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Other financial liabilities

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough 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.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

CHEETHAM HILL CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
1
Accounting policies
(Continued)
- 16 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
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.

1.13
Retirement benefits

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

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Long term contracts

In producing the financial statements, the directors have taken judgement over the profit to be taken on long term contracts. Profit is taken as the work is carried out where the final outcome can be assessed with reasonable certainty. The stage of completion is assessed by reference to surveys of work performed, Full provision is made for losses on all contracts in the year in which they are foreseen.

Depreciation

Tangible assets are depreciated over their useful lives taking into account residual values, where appropriate. When assessing asset lives, factors such as technological innovations and maintenance are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and the projected disposal values.

CHEETHAM HILL CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
- 17 -
3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by class of business
Construction contract revenue
21,203,405
13,097,362
Equipment rentals
5,946,035
5,747,170
27,149,440
18,844,532
2025
2024
£
£
Other revenue
Interest income
682,968
680,711

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
28,750
26,450
Depreciation of owned tangible fixed assets
825,269
693,610
Profit on disposal of tangible fixed assets
(3,498)
-
0
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2025
2024
Number
Number
Management and office
42
35
Civil engineering and plant hire
52
55
Total
94
90

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
6,260,356
5,592,672
Social security costs
703,738
562,275
Pension costs
225,109
250,400
7,189,203
6,405,347
CHEETHAM HILL CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
- 18 -
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
1,440,679
1,105,638
Company pension contributions to defined contribution schemes
9,111
37,629
1,449,790
1,143,267

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 6).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
744,194
693,210
7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
682,968
680,711
8
Interest payable and similar expenses
2025
2024
£
£
Interest on finance leases and hire purchase contracts
20,595
-
0
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
435,846
411,373
Deferred tax
Origination and reversal of timing differences
(49,184)
(176,849)
Total tax charge
386,662
234,524
CHEETHAM HILL CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
9
Taxation
(Continued)
- 19 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
1,544,325
935,699
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
386,081
233,925
Tax effect of expenses that are not deductible in determining taxable profit
581
4,046
Permanent capital allowances in excess of depreciation
(3,447)
(3,447)
Other non-reversing timing differences
3,447
-
0
Taxation charge for the year
386,662
234,524
10
Tangible fixed assets
Plant and equipment
£
Cost
At 1 August 2024
3,519,419
Additions
675,645
Disposals
(33,100)
At 31 July 2025
4,161,964
Depreciation and impairment
At 1 August 2024
1,938,450
Depreciation charged in the year
825,269
Eliminated in respect of disposals
(33,098)
At 31 July 2025
2,730,621
Carrying amount
At 31 July 2025
1,431,343
At 31 July 2024
1,580,969
11
Stocks
2025
2024
£
£
Raw materials and consumables
10,000
10,000
CHEETHAM HILL CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
- 20 -
12
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
2,292,648
3,012,288
Other debtors
6,582
-
0
Prepayments and accrued income
158,093
115,383
2,457,323
3,127,671
2025
2024
Amounts falling due after more than one year:
£
£
Trade debtors
908,469
605,436
Total debtors
3,365,792
3,733,107

13
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
2,264,029
1,861,154
Amounts owed to group undertakings
798,887
3,820,745
Corporation tax
219,075
229,420
Other taxation and social security
477,259
362,551
Other creditors
212,545
123,510
Accruals and deferred income
1,922,109
842,716
5,893,904
7,240,096

Amounts owed to group undertakings are interest free and repayable on demand.

The finance lease and hire purchase creditors are secured over the assets that they relate to.

14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
342,612
391,796
CHEETHAM HILL CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
14
Deferred taxation
(Continued)
- 21 -
2025
Movements in the year:
£
Liability at 1 August 2024
391,796
Credit to profit or loss
(49,184)
Liability at 31 July 2025
342,612

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

15
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
225,109
250,400

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Included within other creditors at the year end are unpaid pension contributions of £40,837 (202 4: £32,208).

16
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of of £1 each
33,000
33,000
33,000
33,000
17
Financial commitments, guarantees and contingent liabilities

The company has issued surety bonds of £471,165 (2024: £160,000).

At the reporting date, no payments have been made under these bonds. The directors consider it unlikely that the bonds will be called upon, and therefore it is disclosed as a contingent liability in accordance with FRS 102.

18
Related party transactions

During the year, the company paid operating rent on land and buildings owned by the directors, amounting to £8 0,000 (202 4: £7 0,000).

CHEETHAM HILL CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
- 22 -
19
Ultimate controlling party

The immediate controlling party is Drillwave Limited, a company incorporated in Great Britain and registered in England and Wales.

Drillwave Limited is both the largest and the smallest group for which group accounts are drawn up and of which the company is a member. Consolidated accounts for Drillwave Limited are available at Companies House.

Up to the reporting date, the ultimate controlling parties were Ms. C. Chamberlain and Mrs. K. Myers, who were both directors and shareholders.

On 01 August 2025, the majority shareholding was acquired by The CHC Employee Ownership Trust. The sole trustee of this trust is CHC (EOT) Limited, which is controlled by its directors on behalf of the trust.

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