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Registration number: 00533232

Devon Contractors Limited
Annual Report and Financial Statements
for the Year Ended 31 May 2025

Devon Contractors Limited

Contents

Company Information | 1
Strategic Report | 2 to 3
Directors' Report | 4 to 5
Statement of Directors' Responsibilities | 6
Independent Auditor's Report | 7 to 9
Profit and Loss Account | 10
Balance Sheet | 11
Statement of Changes in Equity | 12
Notes to the Financial Statements | 13 to 26

Devon Contractors Limited

Company Information

Directors | Mr A Hoare Mr S Bennington Mr P Alderson Mr N Whelan Mr S O'Higgins

Registered office | Clyst Court Hill Barton Business Park Clyst St Mary Exeter Devon EX5 1SA

Auditors | ML Audit LLP Winchester House Deane Gate Avenue Taunton Somerset TA1 2UH

Devon Contractors Limited

Strategic Report for the Year Ended 31 May 2025

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

Principal activity

The principal activity of the company is that of a main contractor for construction projects.

Fair review of the business

Devon Contractors Limited is a long-established reputable construction company delivering good value, high quality buildings operating in a wide range of sectors, Commercial, Industrial, Education, Community/Leisure, Residential & Healthcare with a high level of repeat customers.
A collaborative contractor, we strive to accommodate our clients' wishes in a progressive, positive and expedient manner. We believe that using local labour, subcontractors and suppliers wherever possible, helps to reduce the impact our construction activities have on the environment and also supports the local economy.
The seamless introduction of the Management Buy-In during the first part of the year with changing of Directors has further strengthened the leadership team with a positive impact felt throughout the company.
The financial statements for the year ended 31st May 2025 gave rise to an excellent set of results as the company continues to perform well. A significant increase in operating Profit, Profit after Tax and shareholders funds in conjunction with increasing turnover but protecting profit margins exceeded expectations this against ever challenging economic conditions.
Projects secured throughout 2024 and 2025 and new projects secured going into 2026 provide a solid and reliable source of work. Our significant pipeline of work remains constant from opportunity to tender, negotiation and conversion to live project.
The ability to maintain a strong pipe line of good quality work remains a key objective in management decisions, developing and strengthening of relationships will always be a significant contributor to this.
We continue to invest significantly in the development of our people and the evolution of our employer brand. It is our firm belief that our staff are the overarching differentiator in the service that we provide and the primary driver for our continued success.
The company remains positive for another successful year with expectation of increasing market share and greater levels of profitability.

The company's key financial and other performance indicators during the year were as follows:

| Unit | 2025 | 2024
Turnover | £ | 23,023,622 | 20,198,686
Operating profit | £ | 373,014 | 293,088
Profit after tax | £ | 341,463 | 257,461
Shareholders funds | £ | 1,596,025 | 1,254,562
Current assets as a % of current liabilities | % | 122 | 124

Devon Contractors Limited

Strategic Report for the Year Ended 31 May 2025

Principal risks and uncertainties

The Directors have reviewed the industry in which the company operates and they consider there are no significant risks and uncertainties that need disclosing within this report.
The company operates a prudent approach to risk management and will continue to develop plans and strategies to avoid any risk or uncertainty.
Price risk - The company is exposed to price risk as a result of its operations. However, given the size of the company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature. The company has no exposures to equity securities price risk as it holds no listed or other equity investments.
Credit risk - The company has implemented policies that require appropriate credit checks on potential customers before contracts are entered. The credit given to customers is subject to limits which are determined and reassessed by the directors.
Liquidity risk - The company actively maintains a mixture of finance, designed to ensure the company has sufficient available funds for operations.
Interest rate flow risk - The company is not exposed to interest bearing liabilities.

Environmental and Social Matters

We continue to consider our environmental impacts in all our decision making and as part of our continuing drive for quality in all aspects of the business, Devon Contractors have therefore developed a comprehensive policy statement which will enables the company to set and publish the targets by which our efforts towards sustainable environmental improvement can be measured and monitored. In this way, we aim to protect the health and safety of our own people and our customers whilst contributing to the future well-being of the environment. Ultimately, this commitment has been rewarded by achieving the ISO 14001 accreditation. We have undertaken to help every employee to understand and implement the relevant aspects of this policy in their day to day work, through the regular communication of objectives, action plans and achievements Devon Contractors are committed to providing and complying with all relevant Environmental and Ecological restrictions/site constraints relevant to sites.

Approved and authorised by the Board on 20 February 2026 and signed on its behalf by:

......................................... Mr S Bennington Director

Devon Contractors Limited

Directors' Report for the Year Ended 31 May 2025

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

Directors of the company

The directors who held office during the year were as follows:

Mr N England (resigned 13 June 2024)

Mr A Hoare (appointed 13 June 2024)

Mr S Bennington

Mr D Hunt (resigned 13 June 2024)

Mr P Alderson

Mr N Whelan (appointed 13 June 2024)

Mr S O'Higgins (appointed 13 June 2024)

Financial instruments
The company has procedures to identify risk and manage risks that may hinder its financial performance objectives. The objective is to limit counterparty exposure, ensure sufficient weekly capital and to mitigate the risk identified. The company does not consider it necessary to employ derivatives to manage risk based on the current activities of the company.

Objectives and policies

The company's operations expose it to a variety of financial risks that include the effects of changes in market prices, credit risk, liquidity risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company.

Future developments

The directors aim to maintain the management policies going forward. They consider that the next period profitability will be increased with increase of market share despite a backdrop of economic uncertainty.

Research and development

There has been no research and development for the company in the year ended 31 May 2025.

Directors' liabilities

There is, in place third party indemnity provisions in force for the benefit of the directors and officers of the company.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Devon Contractors Limited

Directors' Report for the Year Ended 31 May 2025

Approved by the Board on 20 February 2026 and signed on its behalf by:

Mr S Bennington Director |  |

Devon Contractors Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

• | make judgements and accounting estimates that are reasonable and prudent;

• | state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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.

Devon Contractors Limited

Independent Auditor's Report to the Members of Devon Contractors Limited

Opinion

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

In our opinion the financial statements:

• | give a true and fair view of the state of the company's affairs as at 31 May 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 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.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Devon Contractors Limited

Independent Auditor's Report to the Members of Devon Contractors Limited

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• | the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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 6, 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.

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 were 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.

Devon Contractors Limited

Independent Auditor's Report to the Members of Devon Contractors Limited

Auditor 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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

• | Obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;

• | Inquired of management, and those charged with governance, about their own identification and assessment of the risks or irregularities, including known and actual, suspected or alleged instances of fraud;

• | Discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

• | Undertaken a review of manual journals processed in the accounting system, applying professional scepticism to ensure they are in line with our expectation that they are not unusual in the normal course of business.

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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://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.

......................................
Nigel Fry (Senior Statutory Auditor)
For and on behalf of ML Audit LLP, Statutory Auditor
Winchester House
Deane Gate Avenue
Taunton
Somerset
TA1 2UH

23 February 2026

Devon Contractors Limited

Profit and Loss Account for the Year Ended 31 May 2025

| Note | 2025 £ | 2024 £
Turnover | 3 | 23,023,622 | 20,198,686
Cost of sales |  | (22,073,395) | (19,229,131)
Gross profit |  | 950,227 | 969,555
Administrative expenses |  | (577,213) | (676,467)
Operating profit | 4 | 373,014 | 293,088
Other interest receivable and similar income | 5 | 53,278 | 56,513
Interest payable and similar expenses | 6 | (1,170) | (34)
|  | 52,108 | 56,479
Profit before tax |  | 425,122 | 349,567
Tax on profit | 10 | (83,659) | (92,106)
Profit for the financial year |  | 341,463 | 257,461

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above and therefore a separate statement of other comprehensive income has not been presented.

Devon Contractors Limited

(Registration number: 00533232)
Balance Sheet as at 31 May 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Tangible assets | 11 | 144,728 | 103,581
Current assets |  |  |
Debtors | 12 | 3,916,659 | 1,962,701
Cash at bank and in hand | 13 | 4,470,861 | 4,074,245
|  | 8,387,520 | 6,036,946
Creditors: Amounts falling due within one year | 14 | (6,856,201) | (4,866,079)
Net current assets |  | 1,531,319 | 1,170,867
Total assets less current liabilities |  | 1,676,047 | 1,274,448
Provisions for liabilities | 15 | (80,022) | (19,886)
Net assets |  | 1,596,025 | 1,254,562
Capital and reserves |  |  |
Called up share capital | 17 | 15,000 | 15,000
Capital redemption reserve | 18 | 15,000 | 15,000
Profit and loss account | 18 | 1,566,025 | 1,224,562
Total equity |  | 1,596,025 | 1,254,562

Approved and authorised by the Board on 20 February 2026 and signed on its behalf by:

Mr S Bennington Director |  |

Devon Contractors Limited

Statement of Changes in Equity for the Year Ended 31 May 2025

| Share capital £ | Capital redemption reserve £ | Retained earnings £ | Total £
At 1 June 2023 | 15,000 | 15,000 | 1,016,021 | 1,046,021
Profit for the year | - | - | 257,461 | 257,461
Dividends | - | - | (48,920) | (48,920)
At 31 May 2024 | 15,000 | 15,000 | 1,224,562 | 1,254,562

| Share capital £ | Capital redemption reserve £ | Retained earnings £ | Total £
At 1 June 2024 | 15,000 | 15,000 | 1,224,562 | 1,254,562
Profit for the year | - | - | 341,463 | 341,463
At 31 May 2025 | 15,000 | 15,000 | 1,566,025 | 1,596,025

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2025

1 | General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Clyst Court
Hill Barton Business Park
Clyst St Mary Exeter
Devon
EX5 1SA

These financial statements were authorised for issue by the Board on 20 February 2026.

2 | Accounting policies

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling, which is the functional and presentational currency of the company, and rounded to the nearest £.

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Summary of disclosure exemptions

The company is a member of a group where the parent of that group prepares publicly available consolidated financial statements which are intended to give a true and fair view and that member is included in the consolidation. Therefore, the company has adopted the exemption from requirement to present a statement of cash flows and related notes.
Furthermore, in line with FRS102.33.1A, the company has adopted the exemption from disclosing transactions with members of the above referenced group.

Name of parent of group

These financial statements are consolidated in the financial statements of Devon Contractors (Topco) Limited.

The financial statements of Devon Contractors (Topco) Limited may be obtained from Hill Barton Business Park, Clyst St Mary, Exeter, EX5 1SA.

Going concern

The directors have reviewed projections and forecasts for the next twelve months, given the level of cash held by the company, levels of reserves, lack of external financing and support of the shareholders, the directors consider the company to be a going concern and able to continue trading for the foreseeable future and will be able to meet its financial obligations as they become due.

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2025

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 in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which are considered to have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Contract valuation:
The directors review the valuation of long term contracts on a regular basis. When the outcome of a construction contract can be estimated reliably, revenue and costs associated with the contract are recognised by reference to the stage of completion and any expected losses are recognised immediately. The carrying amount is £774,215 (2024 - £1,119,222).

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and value added tax.
When the outcome of a construction contract can be estimated reliably, the company recognises contract revenue and contract costs associated with the construction contract as revenue and expenses respectively by reference to the stage of completion of the contract activity at the end of the reporting period.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2025

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Plant and machinery | Straight line basis over 2 to 5 years or 40%/50% first year and straight line for the next 3 years
Fixtures, fittings and equipment | Straight line basis up to 5 years
Motor vehicles | Straight line basis over 5 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Long term contracts

Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales value of the work done after provisions for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account.

Debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Provisions

Provisions for loss making contracts are recognised immediately in full in the profit and loss statement. Any anticipated losses in respect of onerous contracts are expensed in the accounting period in which such losses become probable.

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2025

Contingencies

Contingent liabilities are not recognised except those acquired in a business combination. Contingent liabilities arise as a result of past events when:
(a) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or
(b) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the company’s control.
Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote.
Contingent assets are not recognised. Contingent assets are disclosed in the financial statements only when an inflow of economic benefits is deemed to be probable.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2025

Financial instruments

Recognition and measurement
The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans from banks.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and account receivables and payables, are initially measured at the transaction price (adjusted for transaction cost) and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangement constitutes a financing transaction, such as a trade debtor or creditor on extended credit terms, initial measurement is at the present value of future cash flows discounted at a market rate of interest. Subsequent measurement is at amortised cost.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If such evidence is identified, an impairment loss is recognised in the statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between carrying amount and the present value of estimated cash flows discounted at the original effective interest rate. If the financial instrument has a variable interest rate the currently effective rate under the contract is used.

3 | Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

| 2025 £ | 2024 £
Construction contracts | 23,023,622 | 20,198,686

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

4 | Operating profit

Arrived at after charging/(crediting):

| 2025 £ | 2024 £
Depreciation expense | 61,641 | 54,580
Profit on disposal of property, plant and equipment | (22,508) | (7,199)

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2025

5 | Other interest receivable and similar income

| 2025 £ | 2024 £
Interest income on bank deposits | 53,278 | 54,425
Other finance income | - | 2,088
| 53,278 | 56,513

6 | Interest payable and similar expenses

| 2025 £ | 2024 £
Interest expense on other finance liabilities | 1,170 | 34

7 | Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

| 2025 £ | 2024 £
Wages and salaries | 1,878,402 | 1,726,260
Social security costs | 7,751 | 6,689
Pension costs, defined contribution scheme | 132,009 | 374,885
| 2,018,162 | 2,107,834

The average number of persons employed by the company (including directors) during the year, analysed by category, was as follows:

| 2025 No. | 2024 No.
Directors | 5 | 4
Administration | 7 | 7
Construction workers | 20 | 25
| 32 | 36

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2025

8 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 468,096 | 317,944
Contributions paid to money purchase schemes | 21,744 | 220,000
| 489,840 | 537,944

During the year the number of directors who were receiving benefits and share incentives was as follows:

| 2025 No. | 2024 No.
Accruing benefits under money purchase pension scheme | 5 | 4

In respect of the highest paid director:

| 2025 £ | 2024 £
Remuneration | 122,970 | 82,046
Company contributions to money purchase pension schemes | 5,542 | 107,500

9 | Auditors' remuneration

| 2025 £ | 2024 £
Audit of the financial statements | 21,000 | 19,000
Other fees to auditors |  |
Accountancy and tax compliance services | 11,954 | 20,612

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2025

10 | Taxation

Tax charged/(credited) in the income statement:

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax | 70,642 | 91,613
Deferred taxation |  |
Arising from origination and reversal of timing differences | 13,017 | 493
Tax expense in the income statement | 83,659 | 92,106

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2024 - higher than the standard rate of corporation tax in the UK) of 25% (2024 - 25%).
The differences are reconciled below:

| 2025 £ | 2024 £
Profit before tax | 425,122 | 349,567
Corporation tax at standard rate | 106,281 | 87,392
Increase in UK and foreign current tax from adjustment for prior periods | 493 | -
Effect of expense not deductible in determining taxable profit (tax loss) | 2,791 | 4,714
Tax decrease arising from group relief | (25,906) | -
Total tax charge | 83,659 | 92,106

Deferred tax

Deferred tax assets and liabilities

2025 | Asset £ | Liability £
Accelerated capital allowances | - | 32,410
| - | 32,410

2024 | Asset £ | Liability £
Accelerated capital allowances | - | 20,906
Other short-term timing differences | 1,020 | -
| 1,020 | 20,906

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2025

11 | Tangible assets

| Furniture, fittings and equipment £ | Plant and machinery £ | Motor vehicles £ | Total £
Cost
At 1 June 2024 | 184,532 | 215,745 | 192,298 | 592,575
Additions | 9,270 | 88,000 | 11,343 | 108,613
Disposals | - | (33,313) | (38,845) | (72,158)
At 31 May 2025 | 193,802 | 270,432 | 164,796 | 629,030
Depreciation
At 1 June 2024 | 175,848 | 172,990 | 140,156 | 488,994
Charge for the year | 5,660 | 31,355 | 24,626 | 61,641
Eliminated on disposal | - | (33,313) | (33,020) | (66,333)
At 31 May 2025 | 181,508 | 171,032 | 131,762 | 484,302
Carrying amount
At 31 May 2025 | 12,294 | 99,400 | 33,034 | 144,728
At 31 May 2024 | 8,684 | 42,755 | 52,142 | 103,581

Restriction on title and pledged as security

Tangible fixed assets with a carrying amount of £144,728 (2024 - £103,581) has the following restriction on title:
Amounts included in tangible assets are secured by a debenture incorporating a fixed and floating charge.
The previous shareholders of Devon Contractors Limited hold a debenture incorporating a fixed and floating charge over the amounts included in intangible assets.

12 | Debtors

Current | Note | 2025 £ | 2024 £
Trade debtors |  | 18,929 | -
Amounts owed by related parties | 22 | 1,628,469 | 521,435
Other debtors |  | 517,690 | 51,016
Prepayments |  | 257,447 | -
Gross amount due from customers for contract work |  | 1,494,124 | 1,390,250
|  | 3,916,659 | 1,962,701

The carrying amount of debtors pledged as security for liabilities amounted to £1,502,604 (2024 - £1,410,250).

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2025

Amounts included in debtors are secured by a debenture incorporating a floating charge.
The previous shareholders of Devon Contractors Limited hold a debenture incorporating a fixed and floating charge over the amounts included in debtors.

13 | Cash and cash equivalents

| 2025 £ | 2024 £
Cash at bank | 4,470,861 | 4,074,245

Amounts included in cash and cash equivalents of £4,470,861 (2024 - £4,074,245) have been secured by way of a debenture incorporating a floating charge.
The previous shareholders of Devon Contractors Limited hold a debenture incorporating a fixed and floating charge over the amounts included in cash and cash equivalents.

14 | Creditors

| Note | 2025 £ | 2024 £
Due within one year |  |  |
Trade creditors |  | 4,409,421 | 3,809,345
Amounts due to related parties | 22 | - | 234,929
Social security and other taxes |  | 941,355 | 147,551
Other creditors |  | 5,629 | 2,184
Accruals |  | 706,757 | 309,429
Corporation tax liability | 10 | 73,130 | 91,613
Payments in advance |  | 719,909 | 271,028
|  | 6,856,201 | 4,866,079

There is an unlimited debenture dated 11 July 2013 incorporating a fixed and floating charge over all of the company's assets in relation to available financing facilities.
The previous shareholders of Devon Contractors Limited hold a debenture incorporating a fixed and floating charge over all of the company's assets in relation to loan notes held in the ultimate parent Devon Contractors (Topco) Limited.

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2025

15 | Provisions for liabilities

| Deferred tax £ | Other provisions £ | Total £
At 1 June 2024 | 19,886 | - | 19,886
Additional provisions | - | 47,612 | 47,612
Increase (decrease) in existing provisions | 12,524 | - | 12,524
At 31 May 2025 | 32,410 | 47,612 | 80,022

16 | Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £132,009 (2024 - £374,885).
Contributions totalling £7,908 (2024 - £7,908) were payable to the scheme at the end of the year and are included in creditors.

17 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary shares of £1 each | 15,000 | 15,000 | 15,000 | 15,000

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions: - Each share is entitled to one vote at all general meetings of the company and on a written resolution. - Each share is entitled to dividends, to be paid as the company may determine, and each share has equal rights to dividends. - Each share is entitled to equal rights, a return of capital on liquidation or otherwise. - The shares are non-redeemable.

18 | Reserves

Capital redemption reserve

Arising on the buyback of shares, this reserve represents a non-distributable balance arising from share capital purchased from the shareholders. This therefore ensures the maintenance of the capital base of the company.

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2025

19 | Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 41,246 | 39,530
Later than one year and not later than five years | 49,617 | 73,594
| 90,863 | 113,124

The amount of non-cancellable operating lease payments recognised as an expense during the year was £43,810 (2024 - £43,755).

20 | Dividends

Interim dividends paid

|  | 2025 £ |  | 2024 £
Interim dividend of £Nil (2024 - £3.26) per each Ordinary share |  | - |  | 48,920

21 | Contingent liabilities

At the year end the company's underwriters have given bonds to 1 (2024: 2) customers of the company to guarantee completion of the projects undertaken. The amount of these bonds varied throughout the year and as at the year end there are £594,932 outstanding (2024 - £1,427,656). This facility is held in the sole name of Devon Contractors Limited.

22 | Related party transactions

Summary of transactions with other related parties

The previous shareholders hold fixed and floating charges over all of the company's assets as security for deferred consideration owed to them by the ultimate parent undertaking.

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2025

Loans to related parties

2025 | Key management £ | Total £
At start of period | 85,385 | 85,385
Advanced | 1,721 | 1,721
Repaid | (87,106) | (87,106)
At end of period | - | -

2024 | Key management £ | Total £
At start of period | 13,184 | 13,184
Advanced | 77,471 | 77,471
Repaid | (5,270) | (5,270)
At end of period | 85,385 | 85,385

During the year, one of the directors purchased an asset from the company for the sum of £13,000.
During the year the company received £10,000 to clear an older loan not included in the accounts.

Terms of loans to related parties

Interest has been charged on the above loan to key management at a commercial rate and the loan is repayble on demand.

Loans from related parties

2025 | Other related parties £ | Total £
At start of period | 234,929 | 234,929
Advanced | 148,543 | 148,543
Repaid | (384,042) | (384,042)
At end of period | (570) | (570)

2024 | Other related parties £ | Total £
At start of period | 250,000 | 250,000
Advanced | 103,407 | 103,407
Repaid | (118,478) | (118,478)
At end of period | 234,929 | 234,929

Terms of loans from related parties

Loans from other related parties are interest free and repayable on demand.

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2025

23 | Parent and ultimate parent undertaking

There is no ultimate controlling party of Devon Contractors Limited.
The company's immediate parent is Devon Contractors (Holdings) Limited, incorporated in England & Wales.
The most senior parent entity producing publicly available financial statements is Devon Contractors (Topco) Limited. These financial statements are available upon request from Clyst Court, Hill Barton Business Park, Clyst St Mary Exeter, Devon, EX5 1SA.