Company registration number 01012565 (England and Wales)
R.J. HOWARD ENGINEERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2025
R.J. HOWARD ENGINEERS LIMITED
COMPANY INFORMATION
Directors
M Gilmartin
S Gilmartin
D Howard
R J Howard
B Howard
Secretary
B Howard
Company number
01012565
Registered office
Howard House
Lowfields Road
Leeds
LS12 6BS
Auditor
Buckle Barton Limited
Techno Centre
Station Road
Horsforth
Leeds
LS18 5BJ
R.J. HOWARD ENGINEERS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
R.J. HOWARD ENGINEERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2025
- 1 -

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

Review of the business

Turnover for the year was £7,032,843, which represents a decrease of £2,757,707 (28.2%) compared to 202 4. The current year downturn is indicative of the challenging times in which we operate. In particular, high interest rates led to a slow down in the construction industry and house building sector.

Higher interest rates and the recent Budget continue to have an impact on market confidence, meaning new business opportunities have been hard to come by. The business maintains a strong balance sheet and prudent cash management over the years means it is well placed to weather the current market conditions and capitalise on future opportunities. There is still a desperate need for housing in the UK and the government continues to promise to deliver more affordable housing in the coming years.

The balance sheet shows net assets of £8,569,559 (202 4: £8,219,691).

Principal risks and uncertainties

The management objectives are to retain sufficient liquid funds to enable to meet its day to day requirements, minimise the company’s exposure to price increases and match the repayment of any hire purchase arrangements with the future cash flows expected to arise from the companies trading activities.

The company makes use of financial instruments mostly from its operational bank account and hire purchase agreements so its exposure to cash flow risk is not material for the assessment of the assets, liabilities, financial positions and profit and loss of the company.

Key performance indicators

The company’s key and other financial indicators during the year were as follows –

Sales – £7,032,845 (202 4: £9,790,550)

Gross profit – £1,528,833 (202 4: £1,522,597)

Gross profit % – 21.74% (20 24: 1 5.55%)

Profit before tax – £650,249 (202 4: £765,508)

On behalf of the board

D Howard
Director
18 February 2026
R.J. HOWARD ENGINEERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2025
- 2 -

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

Principal activities

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

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £134,300. 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:

M Gilmartin
S Gilmartin
D Howard
R J Howard
B Howard
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.

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
D Howard
Director
18 February 2026
R.J. HOWARD ENGINEERS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2025
- 3 -

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.

R.J. HOWARD ENGINEERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF R.J. HOWARD ENGINEERS LIMITED
- 4 -
Opinion

We have audited the financial statements of R.J. Howard Engineers Limited (the 'company') for the year ended 31 May 2025 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cash flows 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 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'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.

R.J. HOWARD ENGINEERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF R.J. HOWARD ENGINEERS LIMITED (CONTINUED)
- 5 -
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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

- In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.

- We obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation and occupational health and employment legislation.

- We enquired of the directors for evidence of non compliance with relevant laws and regulations. We also reviewed controls the directors have in place to ensure compliance.

- We gained an understanding of the controls that the directors have in place to prevent and detect fraud. We enquired of the directors about any instances of fraud that had taken place during the accounting period.

- The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks.

- We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above.

- We enquired of the directors about actual and potential litigation and claims.

R.J. HOWARD ENGINEERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF R.J. HOWARD ENGINEERS LIMITED (CONTINUED)
- 6 -

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non compliance with laws and regulations and cannot be expected to detect all fraud and non compliance with laws and regulations.

A further description of our responsibilities 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.

Ian Meek ACA FCCA (Senior Statutory Auditor)
For and on behalf of Buckle Barton Limited, Statutory Auditor
Chartered Accountants
Techno Centre
Station Road
Horsforth
Leeds
LS18 5BJ
18 February 2026
R.J. HOWARD ENGINEERS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2025
- 7 -
2025
2024
Notes
£
£
Turnover
3
7,032,843
9,790,550
Cost of sales
(5,504,012)
(8,267,953)
Gross profit
1,528,831
1,522,597
Administrative expenses
(1,121,030)
(987,467)
Operating profit
4
407,801
535,130
Interest receivable and similar income
7
267,069
256,786
Interest payable and similar expenses
8
(24,621)
(26,408)
Profit before taxation
650,249
765,508
Tax on profit
9
(166,081)
(89,639)
Profit for the financial year
484,168
675,869

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

R.J. HOWARD ENGINEERS LIMITED
BALANCE SHEET
AS AT
31 MAY 2025
31 May 2025
- 8 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,998,131
2,071,988
Current assets
Stocks
12
47,251
68,095
Debtors
13
2,222,313
2,865,765
Cash at bank and in hand
5,736,473
5,544,002
8,006,037
8,477,862
Creditors: amounts falling due within one year
14
(874,428)
(1,750,149)
Net current assets
7,131,609
6,727,713
Total assets less current liabilities
9,129,740
8,799,701
Creditors: amounts falling due after more than one year
15
(110,181)
(120,010)
Provisions for liabilities
Deferred tax liability
17
450,000
460,000
(450,000)
(460,000)
Net assets
8,569,559
8,219,691
Capital and reserves
Called up share capital
19
100
100
Profit and loss reserves
8,569,459
8,219,591
Total equity
8,569,559
8,219,691

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 18 February 2026 and are signed on its behalf by:
D Howard
Director
Company registration number 01012565 (England and Wales)
R.J. HOWARD ENGINEERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2025
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2023
100
7,790,793
7,790,893
Year ended 31 May 2024:
Profit and total comprehensive income
-
675,869
675,869
Dividends
10
-
(247,071)
(247,071)
Balance at 31 May 2024
100
8,219,591
8,219,691
Year ended 31 May 2025:
Profit and total comprehensive income
-
484,168
484,168
Dividends
10
-
(134,300)
(134,300)
Balance at 31 May 2025
100
8,569,459
8,569,559
R.J. HOWARD ENGINEERS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2025
- 10 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
696,126
929,916
Interest paid
(24,621)
(26,408)
Income taxes paid
(206,440)
(172,639)
Net cash inflow from operating activities
465,065
730,869
Investing activities
Purchase of tangible fixed assets
(582,235)
(749,493)
Proceeds from disposal of tangible fixed assets
176,779
361,750
Interest received
267,069
256,786
Net cash used in investing activities
(138,387)
(130,957)
Financing activities
Payment of finance leases obligations
93
151,214
Dividends paid
(134,300)
(247,071)
Net cash used in financing activities
(134,207)
(95,857)
Net increase in cash and cash equivalents
192,471
504,055
Cash and cash equivalents at beginning of year
5,544,002
5,039,947
Cash and cash equivalents at end of year
5,736,473
5,544,002
R.J. HOWARD ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2025
- 11 -
1
Accounting policies
Company information

R.J. Howard Engineers Limited is a private company limited by shares incorporated in the UK and registered in England and Wales. The registered office is Howard House, Lowfields Road, Leeds, LS12 6BS.

1.1
Basis of preparation

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.

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 services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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

The company recognises revenue from the following major sources:

- Long term construction projects, including retentions received

- Short-term hiring out of equipment and topsoil sales

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recover able.

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:

Freehold property
2% on cost
Plant and machinery
20 % / 25% on reducing balance
Motor vehicles
25% on reducing balance
R.J. HOWARD ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 12 -

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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

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.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
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.

R.J. HOWARD ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 13 -
1.8
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

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.

R.J. HOWARD ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 14 -
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

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

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.

1.9
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.

1.10
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.

R.J. HOWARD ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 15 -
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.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

1.13
Leases
As lessee

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

R.J. HOWARD ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 16 -
3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by class of business
Construction and Civil Engineering
7,032,843
9,790,550
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
7,032,843
9,790,550
2025
2024
£
£
Other revenue
Interest income
267,069
256,786
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
13,600
13,300
Depreciation of tangible fixed assets
514,779
473,503
Profit on disposal of tangible fixed assets
(35,466)
(48,478)
5
Employees

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

2025
2024
Number
Number
Administrative
5
5
Production
34
39
Total
39
44

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
1,716,299
1,777,303
Social security costs
157,798
180,132
Pension costs
167,093
141,651
2,041,190
2,099,086
R.J. HOWARD ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 17 -
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
163,965
161,502
Company pension contributions to defined contribution schemes
66,045
68,184
230,010
229,686
7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
267,069
256,786
2025
2024
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
267,069
256,786
8
Interest payable and similar expenses
2025
2024
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
21,437
26,408
Other interest
3,184
-
0
24,621
26,408
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
179,000
208,000
Adjustments in respect of prior periods
(2,919)
(361)
Total current tax
176,081
207,639
Deferred tax
Origination and reversal of timing differences
(10,000)
(118,000)
Total tax charge
166,081
89,639
R.J. HOWARD ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
9
Taxation
(Continued)
- 18 -

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
650,249
765,508
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
162,562
191,377
Tax effect of expenses that are not deductible in determining taxable profit
-
0
1,214
Depreciation on assets not qualifying for tax allowances
1,380
1,412
Under/(over) provided in prior years
(2,919)
(361)
Rounding of deferred tax charge
4,175
(104,519)
Rounding of corporation tax charge
883
516
Taxation charge for the year
166,081
89,639
10
Dividends
2025
2024
£
£
Interim paid
134,300
247,071
11
Tangible fixed assets
Freehold property
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 June 2024
283,076
3,249,633
1,629,696
5,162,405
Additions
-
0
236,400
345,835
582,235
Disposals
-
0
(108,000)
(318,736)
(426,736)
At 31 May 2025
283,076
3,378,033
1,656,795
5,317,904
Depreciation and impairment
At 1 June 2024
136,981
2,354,706
598,730
3,090,417
Depreciation charged in the year
5,662
216,432
292,685
514,779
Eliminated in respect of disposals
-
0
(93,942)
(191,481)
(285,423)
At 31 May 2025
142,643
2,477,196
699,934
3,319,773
Carrying amount
At 31 May 2025
140,433
900,837
956,861
1,998,131
At 31 May 2024
146,095
894,927
1,030,966
2,071,988
R.J. HOWARD ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
11
Tangible fixed assets
(Continued)
- 19 -

Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:

2025
2024
£
£
Plant and machinery
216,700
249,964
Motor vehicles
717,371
740,231
934,071
990,195
12
Stocks
2025
2024
£
£
Raw materials and consumables
47,251
68,095
13
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
809,439
1,786,624
Other debtors
1,410,351
1,072,725
Prepayments and accrued income
2,523
6,416
2,222,313
2,865,765
14
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Obligations under finance leases
16
327,577
317,655
Trade creditors
242,738
814,285
Corporation tax
177,641
208,000
Other taxation and social security
42,377
87,263
Other creditors
21,316
78,730
Accruals and deferred income
62,779
244,216
874,428
1,750,149
15
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Obligations under finance leases
16
110,181
120,010
R.J. HOWARD ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 20 -
16
Finance lease obligations
2025
2024
Future minimum lease payments due under finance leases:
£
£
Within one year
326,408
317,655
In two to five years
111,350
120,010
437,758
437,665

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 2 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

17
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
450,000
460,000
2025
Movements in the year:
£
Liability at 1 June 2024
460,000
Credit to profit or loss
(10,000)
Liability at 31 May 2025
450,000

The deferred tax liability set out above is expected to reverse within 36 months and relates to accelerated capital allowances that are expected to mature within the same period.

18
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
167,093
141,651

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.

R.J. HOWARD ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 21 -
19
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A Shares of £1 each
26
26
26
26
Ordinary B Shares of £1 each
25
25
25
25
Ordinary C Shares of £1 each
25
25
25
25
Ordinary D Shares of £1 each
24
24
24
24
100
100
100
100
20
Ultimate controlling party

The company was under control of R J Howard and other family members.

21
Directors' transactions

Dividends totalling £0 (2024 - £0) were paid in the year in respect of shares held by the company's directors.

Advances
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Director 1 advance
-
135,000
-
-
135,000
Director 2 credit
-
(31,046)
49,883
(20,000)
(1,163)
Director 3 credit
-
(24,706)
87,553
(83,000)
(20,153)
79,248
137,436
(103,000)
113,684
22
Cash generated from operations
2025
2024
£
£
Profit after taxation
484,168
675,869
Adjustments for:
Taxation charged
166,081
89,639
Finance costs
24,621
26,408
Investment income
(267,069)
(256,786)
Gain on disposal of tangible fixed assets
(35,466)
(48,478)
Depreciation and impairment of tangible fixed assets
514,779
473,503
Movements in working capital:
Decrease in stocks
20,844
5,115
Decrease/(increase) in debtors
643,452
(213,557)
(Decrease)/increase in creditors
(855,284)
178,203
Cash generated from operations
696,126
929,916
R.J. HOWARD ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 22 -
23
Analysis of changes in net funds
1 June 2024
Cash flows
31 May 2025
£
£
£
Cash at bank and in hand
5,544,002
192,471
5,736,473
Lease liabilities
(437,665)
(93)
(437,758)
5,106,337
192,378
5,298,715
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