Company registration number 08807649 (England and Wales)
SMD CONSTRUCTION GROUP LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
SMD CONSTRUCTION GROUP LTD
COMPANY INFORMATION
Directors
Mr B Pratten
Mr R T Firth
Mr J T Firth
(Appointed 28 October 2024)
Mr S Booth
(Appointed 28 October 2024)
Mr J F Turner
(Appointed 6 February 2025)
Company number
08807649
Registered office
The Outlook
Ling Road
Tower Park
Poole
Dorset
BH12 4PY
Auditor
Azets Audit Services
37 Commercial Road
Poole
Dorset
BH14 0HU
SMD CONSTRUCTION GROUP LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group statement of financial position
9
Company statement of financial position
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 34
SMD CONSTRUCTION GROUP LTD
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

The principal activity of the Group is the design and installation of structural flooring solutions for the construction industry. The Group’s strategic objective is to maintain and strengthen its position as a leading UK provider of structural flooring and roofing solutions, while continuing to focus on safety, operational efficiency, innovation, and environmental responsibility.

During the period, the share structure of the business was reorganised to streamline ownership and support more efficient governance and decision-making. The directors consider this change to be beneficial to the long-term management and competitiveness of the Group. The Group intends to retain its current group structure for the foreseeable future.

Business Performance and Development

The Group has operated in a highly competitive and volatile construction market throughout the year. The sector has continued to experience pressure from constrained margins, legacy project commitments, and several high-profile business failures. Against this backdrop, the Group’s focus has remained on financial discipline, risk management, and maintaining consistent service delivery to customers.

During the year, the Group completed a range of projects across all divisions and geographic regions in which it operates, delivering solutions aligned with customer requirements while managing market and operational pressures.

Financial Performance

Group turnover for the year was £15,911,142 (2024: £23,633,082), with a loss on ordinary activities after taxation of £291,035 (2024: profit of £26,044). The financial position of the Group at 31 July 2025 is set out in the accompanying balance sheet.

Financial performance for the period was adversely impacted by challenging market conditions and heightened competition, which continued to place pressure on pricing and margins. In addition, the Group was affected by bad debt exposure arising from the insolvency of several customers during the period, most notably ISG Limited. These balances were not covered by insurance and have been fully provided for and written off within the current financial year. The directors do not consider there to be any ongoing material exposure in this respect.

Despite the reported loss for the year, the Group remains financially secure. Management has undertaken a detailed review of both fixed and variable costs across the business, with actions implemented to improve operational efficiency and profitability while maintaining appropriate standards of quality and safety.

Structural Metal Decks Ltd experienced several operational challenges during the year, including supplier disruption and customer insolvencies, which resulted in performance below expectations. A comprehensive review of operational processes was completed, and improvements have been implemented across relevant functions.

ThruDeck Services Ltd continued its recovery within the Scottish market, with improved order intake and financial performance during the year. Results were consistent with expectations during this phase of redevelopment, and ongoing performance will continue to be monitored closely. During this period it has been agreed moving forward to consolidated ThruDeck operations into Structural Metal Decks Limited to further improve efficiencies.

Precast Structural Solutions Limited was removed from the group during the share restructuring process. This change occurred at the end of Q1 (Oct-25), therefore Precast Structural Solutions Limited revenues only contributed to the group for the first quarter of the year, further supporting the drop in overall group revenue.

Market Conditions, Sales and Margins

The construction market remains highly competitive, with ongoing pressure on margins. The Group continues to focus on disciplined and selective tendering, effective project management, and maintaining strong customer relationships in order to protect contract profitability.

Subcontractor availaibility remained a challenge during the year, contributing to project delays and additional management oversight. In response, the Group strengthened subcontractor relationships, monitoring, and audit processes to support quality assurance and delivery standards.

SMD CONSTRUCTION GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
- 2 -

Market Conditions, Sales and Margins (continued)

Customer insolvencies and delayed payments also impacted performance during the period. The Group continues to actively manage credit risk through enhanced customer assessment procedures and ongoing monitoring of outstanding balances.

Raw material cost volatility was more stable over the period which helped to manage project returns, it is hoped this stability will continue in the coming period with only nominal increase having to be managed, although the raw material position continues to be monitored.

Principal Risks and Uncertainties

The principal risks facing the Group relate to market conditions, margin pressure, subcontractor performance, customer credit risk, and the availability of skilled labour.

The Group’s financial instruments comprise bank balances, trade debtors, trade creditors, and finance lease agreements. Liquidity risk is managed through maintaining appropriate cash reserves and funding flexibility. Credit risk is managed through defined credit control policies and regular review of outstanding receivables, with provisions made where appropriate.

Health and safety remains a key operational risk and priority for the company. The Group achieved an Accident Frequency Rate (AFR) of zero during FY2024-25, with no reportable accidents recorded over 108,041 man-hours worked.

Sustainability and Corporate Responsibility

The Group recognises its responsibility to minimise environmental impact and continues to progress towards its objective of achieving carbon-neutral operations by 2030. During the year, further initiatives were implemented to reduce energy consumption within office locations, alongside continued investment in electric vehicle adoption throughout the business.

The Group has also expanded its product offering to include lower-carbon composite floor and roof decking solutions, supporting customers in reducing the environmental impact of their projects, this is seen as a key development for the coming years.

Future Outlook

The directors expect market conditions to remain challenging during the first half of FY2025–26, with increased competition and ongoing margin pressure. However, there are early indicators of improved activity levels in the latter part of the financial year, which is hoped will improve overall margins.

The Group’s focus over the next 12 months will be on maintaining financial discipline, strengthening operational performance, further developing its concreting and in-situ capabilities, continuing recovery in the Scottish region, and progressing sustainability initiatives across the Group.

Conclusion

The year has been challenging due to external market conditions and customer insolvencies. The Group has responded by strengthening its operational controls, managing risk exposure, and maintaining a prudent financial position. The directors remain cautiously optimistic that these measures, combined with stabilising market conditions, will support improved performance in the year ahead.

On behalf of the board

Mr B Pratten
Director
4 March 2026
SMD CONSTRUCTION GROUP LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2025
- 3 -

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

Principal activities

The principal activity of the company and group continued to be that of the construction of composite flooring.

Results and dividends

The results for the year are set out on page 8.

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

Directors

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

Mr B Pratten
Mr R T Firth
Mr J T Firth
(Appointed 28 October 2024)
Mr S Booth
(Appointed 28 October 2024)
Mr J F Turner
(Appointed 6 February 2025)
Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the group will be put at a General Meeting.

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 auditor of the company 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 auditor of the company is aware of that information.

Going concern

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

On behalf of the board
Mr B Pratten
Mr J T Firth
Director
Director
4 March 2026
SMD CONSTRUCTION GROUP LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JULY 2025
- 4 -

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

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

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SMD CONSTRUCTION GROUP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SMD CONSTRUCTION GROUP LTD
- 5 -
Opinion

We have audited the financial statements of SMD Construction Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2025 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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 group's and the parent company's affairs as at 31 July 2025 and of the group's loss 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 group and parent 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 group's and parent 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. 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.

SMD CONSTRUCTION GROUP LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SMD CONSTRUCTION GROUP LTD
- 6 -

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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

- the parent company 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 parent 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 parent 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.

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.

SMD CONSTRUCTION GROUP LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SMD CONSTRUCTION GROUP LTD
- 7 -

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

- Reviewing minutes of meetings of those charged with governance;

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Zara Hogg FCA, BA (Hons) (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
10 March 2026
Chartered Accountants
Statutory Auditor
37 Commercial Road
Poole
Dorset
BH14 0HU
SMD CONSTRUCTION GROUP LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2025
- 8 -
2025
2024
Notes
£
£
Turnover
3
15,911,142
23,633,082
Cost of sales
(13,898,877)
(20,612,747)
Gross profit
2,012,265
3,020,335
Administrative expenses
(2,494,127)
(2,997,294)
Other operating income
44,551
3,750
Operating (loss)/profit
4
(437,311)
26,791
Interest receivable and similar income
9
30,771
31,683
Interest payable and similar expenses
8
(12,891)
(16,002)
Amounts written off investments
10
52,900
-
(Loss)/profit before taxation
(366,531)
42,472
Tax on (loss)/profit
11
75,496
(16,428)
(Loss)/profit for the financial year
(291,035)
26,044
Total comprehensive income for the year is all attributable to the owners of the parent company.

The notes on pages 14 to 34 form part of these financial statements.

SMD CONSTRUCTION GROUP LTD
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 JULY 2025
31 July 2025
- 9 -
2025
2024
Notes
£
£
£
£
Fixed assets
Intangible assets
12
475
827
Tangible assets
13
715,637
1,157,668
716,112
1,158,495
Current assets
Stocks
17
307,687
335,739
Debtors
19
5,246,293
5,503,578
Cash at bank and in hand
784,752
1,348,900
6,338,732
7,188,217
Creditors: amounts falling due within one year
20
(2,390,366)
(3,398,088)
Net current assets
3,948,366
3,790,129
Total assets less current liabilities
4,664,478
4,948,624
Creditors: amounts falling due after more than one year
21
(32,334)
(66,882)
Provisions for liabilities
Deferred tax liability
24
103,900
62,463
(103,900)
(62,463)
Net assets
4,528,244
4,819,279
Capital and reserves
Called up share capital
26
9,900
9,900
Share premium account
2,490,100
2,490,100
Revaluation reserve
127,357
127,357
Profit and loss reserves
1,900,887
2,191,922
Total equity
4,528,244
4,819,279
The financial statements were approved by the board of directors and authorised for issue on 4 March 2026 and are signed on its behalf by:
04 March 2026
Mr B Pratten
Mr J T Firth
Director
Director
Company registration number 08807649 (England and Wales)
SMD CONSTRUCTION GROUP LTD
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2025
31 July 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Investments
14
5,000,200
5,000,200
Current assets
Debtors
19
230,544
290,276
Cash at bank and in hand
31,584
51,285
262,128
341,561
Creditors: amounts falling due within one year
20
(271,874)
(351,307)
Net current liabilities
(9,746)
(9,746)
Net assets
4,990,454
4,990,454
Capital and reserves
Called up share capital
26
9,900
9,900
Share premium account
2,490,100
2,490,100
Profit and loss reserves
2,490,454
2,490,454
Total equity
4,990,454
4,990,454

As permitted by s408 Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s profit for the year was £0 (2024 £0 profit).

The financial statements were approved by the board of directors and authorised for issue on 4 March 2026 and are signed on its behalf by:
04 March 2026
Mr B Pratten
Mr J T Firth
Director
Director
Company Registration No. 08807649
SMD CONSTRUCTION GROUP LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2025
- 11 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 August 2023
9,900
2,490,100
127,357
2,165,878
4,793,235
Year ended 31 July 2024:
Profit and total comprehensive income
-
-
-
26,044
26,044
Balance at 31 July 2024
9,900
2,490,100
127,357
2,191,922
4,819,279
Year ended 31 July 2025:
Loss and total comprehensive income
-
-
-
(291,035)
(291,035)
Balance at 31 July 2025
9,900
2,490,100
127,357
1,900,887
4,528,244
SMD CONSTRUCTION GROUP LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2025
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 August 2023
9,900
2,490,100
2,490,454
4,990,454
Year ended 31 July 2024:
Profit and total comprehensive income for the year
-
-
-
-
0
Balance at 31 July 2024
9,900
2,490,100
2,490,454
4,990,454
Year ended 31 July 2025:
Profit and total comprehensive income
-
-
-
-
0
Balance at 31 July 2025
9,900
2,490,100
2,490,454
4,990,454
SMD CONSTRUCTION GROUP LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2025
- 13 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
31
431,844
(787,574)
Interest paid
(12,891)
(16,002)
Income taxes (paid)/refunded
(1,180)
103,974
Net cash inflow/(outflow) from operating activities
417,773
(699,602)
Investing activities
Purchase of intangible assets
(580)
(1,471)
Purchase of tangible fixed assets
(14,772)
(4,392)
Proceeds from disposal of tangible fixed assets
396,251
-
Proceeds from disposal of investments
53,000
-
Loans made to other entities
(1,400,000)
-
Repayment of loans
25,002
(556)
Interest received
30,771
31,683
Net cash (used in)/generated from investing activities
(910,328)
25,264
Financing activities
Repayment of bank loans
-
(114,806)
Payment of finance leases obligations
(101,429)
(92,226)
Net cash used in financing activities
(101,429)
(207,032)
Net decrease in cash and cash equivalents
(593,984)
(881,370)
Cash and cash equivalents at beginning of year
1,348,900
2,230,270
Cash and cash equivalents at end of year
754,916
1,348,900
Relating to:
Cash at bank and in hand
784,752
1,348,900
Bank overdrafts included in creditors payable within one year
(29,836)
-
SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
- 14 -
1
Accounting policies
Company information

SMD Construction Group Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales.

The registered office is:

Unit C

The Outlook

Ling Road

Poole

Dorset

BH12 4PY

The group consists of SMD Construction Group Ltd and all of its subsidiaries.

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.

The 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. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

- 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’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; 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.

1.2
Business combinations

In the parent company financial statements, t he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. I nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company SMD Construction Group Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 July 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the g roup.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

1.4
Going concern

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

1.5
Turnover

Revenue comprises sales of goods and services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

T he nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Revenue from construction contracts 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 it is probable will be recovered.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
1
Accounting policies
(Continued)
- 16 -
1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 6 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Development costs
6 years
1.9
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 land and buildings
Straight line over 50 years
Plant and equipment
33% straight line
Fixtures and fittings
33% straight line
Computers
33% straight line
Motor vehicles
25% 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 recognised in the income statement.

1.10
Fixed asset investments

Equity in vest ments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

I n the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
1
Accounting policies
(Continued)
- 17 -

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost i s determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

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.

SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
1
Accounting policies
(Continued)
- 18 -
1.13
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.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.14
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.

1.15
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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 m ethod 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.

SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
1
Accounting policies
(Continued)
- 19 -
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 group 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 group 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. Amounts 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 subsequently 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.

SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
1
Accounting policies
(Continued)
- 20 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.16
Equity instruments

Equity instruments issued by the group 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 group.

1.17
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 income statement 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 income statement, 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 if, and only if, there is 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.

1.18
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.

1.19
Retirement benefits

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

SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
1
Accounting policies
(Continued)
- 21 -
1.20
Leases

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 statement of financial position 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.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease d asset are consumed.

1.21
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Revenue

Revenue includes work carried out but not yet invoiced or certified. This involves the use of judgement by management as to the value of work done. Long term contracts are valued on percentage of work completed vs cost incurred againist the total estimated cost of the contract. In addition, fixed overhead is apportioned value depending on the size of the contracts at the year end based on the level of overhead they absorb. The accrued income across the group totalled £171,265 (2024: £411,715) and deferred income across the group totalled £76,888 (2024: £111,493).

Recoverability of trade debtors

The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of debtors, the ageing profile and historical experience. At the balance sheet date £104,446 (2024: £375,734) was provided for as a bad debt provision within these financial statements.

SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
- 22 -
3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2025
2024
£
£
Turnover analysed by class of business
Sale of goods
15,819,128
23,154,609
Other revenue
92,014
478,473
15,911,142
23,633,082
2025
2024
£
£
Turnover analysed by geographical market
UK
15,688,938
23,633,082
Rest of World
222,204
-
15,911,142
23,633,082
2025
2024
£
£
Other revenue
Interest income
30,771
31,683
Management charge outside the group
102,000
106,887
4
Operating (loss)/profit
2025
2024
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange losses
7,090
1,197
Research and development costs
950
2,670
Depreciation of owned tangible fixed assets
82,182
120,609
Depreciation of tangible fixed assets held under finance leases
91,316
84,144
Profit on disposal of tangible fixed assets
(72,459)
-
Amortisation of intangible assets
932
864
Cost of stocks recognised as an expense
9,906,761
14,986,502
Operating lease charges
346,261
842,795
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,100
2,350
Audit of the financial statements of the company's subsidiaries
22,500
19,250
27,600
21,600
SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
5
Auditor's remuneration
(Continued)
- 23 -
For other services
Accountancy compliance
8,160
6,500
Taxation compliance
2,750
3,000
10,910
9,500
6
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Admin and Support
31
31
10
13
Site workers
19
25
-
0
-
0
Directors
4
5
4
2
Total
54
61
14
15

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
2,344,464
2,307,980
600,795
585,446
Social security costs
258,605
241,519
70,601
65,053
Pension costs
76,349
70,876
30,073
27,301
2,679,418
2,620,375
701,469
677,800
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
175,933
113,917
Company pension contributions to defined contribution schemes
10,556
6,835
186,489
120,752
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).
SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
- 24 -
8
Interest payable and similar expenses
2025
2024
£
£
Interest on bank overdrafts and loans
-
2,698
Interest on finance leases and hire purchase contracts
12,891
13,304
Total finance costs
12,891
16,002
9
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
30,771
31,127
Other interest income
-
556
Total income
30,771
31,683
10
Amounts written off investments
2025
2024
£
£
Gain on disposal of investments held at fair value
52,900
-
11
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
-
0
1,180
Deferred tax
Origination and reversal of timing differences
63,441
15,248
Previously unrecognised tax loss, tax credit or timing difference
(138,937)
-
0
Total deferred tax
(75,496)
15,248
Total tax (credit)/charge
(75,496)
16,428
SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
11
Taxation
(Continued)
- 25 -

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

2025
2024
£
£
(Loss)/profit before taxation
(366,531)
42,472
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
(91,633)
10,618
Tax effect of expenses that are not deductible in determining taxable profit
22,885
219
Tax effect of income not taxable in determining taxable profit
(11,032)
-
0
Tax effect of utilisation of tax losses not previously recognised
(20,273)
(36,504)
Unutilised tax losses carried forward
(118,664)
(14,236)
Effect of change in corporation tax rate
-
(372)
Permanent capital allowances in excess of depreciation
42,782
41,455
Depreciation on assets not qualifying for tax allowances
384
-
0
Other permanent differences
30,475
-
0
Effect of change in local corporation tax rate
(4,383)
-
0
Deferred taxation
20,659
15,248
Profit on disposal
53,304
-
Taxation (credit)/charge
(75,496)
16,428
12
Intangible fixed assets
Group
Goodwill
Development costs
Total
£
£
£
Cost
At 1 August 2024
1,449,996
5,195
1,455,191
Additions
-
0
580
580
At 31 July 2025
1,449,996
5,775
1,455,771
Amortisation and impairment
At 1 August 2024
1,449,996
4,368
1,454,364
Amortisation charged for the year
-
0
932
932
At 31 July 2025
1,449,996
5,300
1,455,296
Carrying amount
At 31 July 2025
-
0
475
475
At 31 July 2024
-
0
827
827
The company had no intangible fixed assets at 31 July 2025 or 31 July 2024.
SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
- 26 -
13
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 August 2024
1,283,836
1,046,745
393,932
10,291
474,675
3,209,479
Additions
-
0
6,361
8,411
-
0
41,487
56,259
Disposals
(575,034)
(191,205)
(40,512)
(6,247)
-
0
(812,998)
At 31 July 2025
708,802
861,901
361,831
4,044
516,162
2,452,740
Depreciation and impairment
At 1 August 2024
469,810
1,014,569
353,799
9,231
204,402
2,051,811
Depreciation charged in the year
23,279
32,139
12,885
-
0
105,195
173,498
Eliminated in respect of disposals
(251,993)
(191,205)
(39,821)
(5,187)
-
0
(488,206)
At 31 July 2025
241,096
855,503
326,863
4,044
309,597
1,737,103
Carrying amount
At 31 July 2025
467,706
6,398
34,968
-
0
206,565
715,637
At 31 July 2024
814,026
32,176
40,133
1,060
270,273
1,157,668
The company had no tangible fixed assets at 31 July 2025 or 31 July 2024.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts:

Group
Company
2025
2024
2025
2024
£
£
£
£
Motor vehicles
193,118
242,947
-
0
-
0

The difference between the depreciation charged on cost and the depreciation charged on the revalued amount is deemed immaterial and therefore has not be included within the financial statements.

Land and Buildings with a carrying amount of £540,000 were revalued at 12th May 2021 by an independent valuer not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

The following asse t s are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
13
Tangible fixed assets
(Continued)
- 27 -
2025
2024
£
£
Group
Cost
571,020
1,316,719
Accumulated depreciation
(93,469)
(333,624)
Carrying value
477,551
983,095
14
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
5,000,200
5,000,200
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 August 2024 and 31 July 2025
5,000,200
Carrying amount
At 31 July 2025
5,000,200
At 31 July 2024
5,000,200
15
Subsidiaries

Details of the company's subsidiaries at 31 July 2025 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
SMD Intech Private Ltd
India
Ordinary shares
0
99.99
Structural Metal Decks Limited
England and Wales
Ordinary shares
100.00
-
Thru Deck Services Limited
Scotland
Ordinary shares
0
100.00
NDS Site Installation Services Ltd
England and Wales
Ordinary shares
100.00
-
Performance Stud Welding Ltd
England and Wales
Ordinary shares
100.00
-
SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
15
Subsidiaries
(Continued)
- 28 -

The principal activity of SMD Intech Private Ltd continued to be that of structural deck development. The principal activity of Structural Metal Decks Limited, Thru Deck Services Limited continued to be that of construction of composite flooring.

The principal activity of Precast Structural Solutions Limited continued to be that of concrete flooring solutions however this entity was disposed of on 28 October 2024 for a consideration of £53,000. There are profits of £13,376 arising from the company's interests in Precast Structural Solutions Limited up to the date of its disposal, which are included within the consolidated financial statements. Precast Structural Solutions Ltd had net assets of £38,352 at the point of disposal.

The results of SMD Intech Private Ltd have not been consolidated in these financial statements, due to the results being immaterial to the group results.

NDS Site Installation Services Ltd was dormant at 31 July 2025.

16
Associates

Details of associates at 31 July 2025 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
National Decking Services Limited
England and Wales
Ordinary shares
0
25

The results of National Decking Services Limited have not been consolidated in these financial statements due to being immaterial to the group.

17
Stocks
Group
Company
2025
2024
2025
2024
£
£
£
£
Finished goods and goods for resale
307,687
335,739
-
0
-
0
SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
- 29 -
18
Financial instruments
Group
Company
2025
2024
2025
2024
£
£
£
£
Carrying amount of financial assets measured at amortised cost
Trade debtors
2,763,947
4,432,299
2,025
2,081
Amounts owed by group undertakings
1,400,000
-
-
-
Accrued income
171,265
411,715
-
-
Other debtors
338,771
232,754
63,932
150
4,673,983
5,076,768
#VALUE!
Carrying amount of financial liabilities measured at amortised cost
Trade creditors
1,932,981
2,936,308
18,925
83,215
Bank loans and hire purchase
143,164
173,270
-
-
Other creditors
45,435
46,722
223,225
245,660
Accruals
88,119
125,233
7,838
5,838
2,209,699
3,281,533
n/a
n/a
19
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,763,947
4,432,299
2,025
2,081
Amounts owed by group undertakings
1,400,000
-
-
-
Other debtors
526,632
435,077
193,302
202,473
Prepayments and accrued income
416,777
614,564
35,217
85,722
5,107,356
5,481,940
230,544
290,276
Deferred tax asset (note 24)
138,937
21,638
-
0
-
0
5,246,293
5,503,578
230,544
290,276

SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
- 30 -
20
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans and overdrafts
22
29,836
-
0
-
0
-
0
Obligations under finance leases
23
80,994
106,388
-
0
-
0
Trade creditors
1,932,981
2,936,308
18,925
83,215
Amounts owed to group undertakings
-
0
-
0
223,063
242,147
Corporation tax payable
-
0
1,180
-
0
-
0
Other taxation and social security
136,113
70,764
21,886
16,594
Deferred income
76,888
111,493
-
0
-
0
Other creditors
45,435
46,722
162
3,513
Accruals
88,119
125,233
7,838
5,838
2,390,366
3,398,088
271,874
351,307
21
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Obligations under finance leases
23
32,334
66,882
-
0
-
0
22
Loans and overdrafts
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank overdrafts
29,836
-
0
-
0
-
0
Payable within one year
29,836
-
0
-
0
-
0
23
Finance lease obligations
Group
Company
2025
2024
2025
2024
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
80,994
106,388
-
0
-
0
In two to five years
32,334
66,882
-
0
-
0
113,328
173,270
-
-
SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
23
Finance lease obligations
(Continued)
- 31 -

Finance lease payments represent rentals payable by the company or group 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 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Obligations on finance lease are secured againist the assets to which they relate.

24
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2025
2024
2025
2024
Group
£
£
£
£
Accelerated capital allowances
103,900
62,463
-
-
Tax losses
-
-
138,937
21,638
103,900
62,463
138,937
21,638
The company has no deferred tax assets or liabilities.
Group
Company
2025
2025
Movements in the year:
£
£
Liability at 1 August 2024
40,825
-
Credit to profit or loss
(75,862)
-
Asset at 31 July 2025
(35,037)
-

The deferred tax asset set out above relates to the utilisation of tax losses against future expected profits. The deferred tax liability set out relates to accelerated capital allowances that are expected to mature over the assets' useful lives to which they relate.

25
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
76,349
70,876

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Contributions totaling £13,915 (20 24: £14,999) were payable to the fund at the balance sheet date and are included in creditors.

SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
- 32 -
26
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
9,900
9,900
9,900
9,900
27
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2025
2024
2025
2024
£
£
£
£
Within one year
53,900
29,276
-
-
Between two and five years
67,375
6,139
-
-
121,275
35,415
-
-
28
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2025
2024
2025
2024
£
£
£
£
Group
Other related parties
203,967
143,951
-
8,744,759

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2025
2024
£
£
Group
Other related parties
-
2,263,643

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2025
2024
Balance
Balance
£
£
Group
Other related parties
62,718
161,506
SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
28
Related party transactions
(Continued)
- 33 -

Within the subsidiary, Structural Metal Decks Limited, a £1.4m loan was made to the ultimate parent company, Firth Steels Limited, on 27th June 2025 which was still outstanding as of the year end date. The parent company deploys these funds within the wider Group to support centralised investment activities aimed at achieving enhanced returns for the Group as a whole. The loan is unsecured, carries interest at an arm’s‑length rate, and is repayable on demand. The loan is repayable on demand from Firth Steels Limited and is included within debtors due within one year. Management deem this to be an investment into Firth Steels Limited and is a liquid balance due to the ability to recall the loan when required. Following further discussion since year end it is intended to recall these funds for direct investment management by the company to maximise returns, whilst minimising administration and risk given the recent increases to FSCS limits.

The company has taken advantage of the exemption in FRS 102 Section 33 from the requirement to disclose transactions with group companies on the grounds that the company is a wholly owned subsidiary within the group or its ultimate holding company.

29
Directors' transactions

Advances or credits have been granted by the group to its directors as follows:

Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Director's Current Account
2.00
12,501
(12,501)
-
Director's Current Account
2.00
12,501
(12,501)
-
25,002
(25,002)
-
30
Controlling party

In the opinion of the directors, the ultimate controlling parties are the immediate and ultimate parent company, Firth Steels Limited who are incorporated in England & Wales and James Firth who each own 50% of SMD Construction Group Limited.

Firth Steels Limited has its registered office address at Calderbank, River Street, Brighouse, England, HD6 1LU. Firth Steels Limited is the largest group of undertakings for which group accounts are produced and has included the company in its group accounts, copies of which are available upon request at Companies House.

SMD CONSTRUCTION GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
- 34 -
31
Cash generated from/(absorbed by) group operations
2025
2024
£
£
(Loss)/profit for the year after tax
(291,035)
26,044
Adjustments for:
Taxation (credited)/charged
(75,496)
16,428
Finance costs
12,891
16,002
Investment income
(30,771)
(31,683)
Gain on disposal of tangible fixed assets
(72,459)
-
Amortisation and impairment of intangible assets
932
864
Depreciation and impairment of tangible fixed assets
173,498
204,753
Other gains and losses
(52,900)
-
Movements in working capital:
Decrease in stocks
28,052
3,020
Decrease/(increase) in debtors
1,749,582
(1,037,158)
(Decrease)/increase in creditors
(975,845)
190,570
Decrease in deferred income
(34,605)
(176,414)
Cash generated from/(absorbed by) operations
431,844
(787,574)
32
Analysis of changes in net funds - group
1 August 2024
Cash flows
New finance leases
31 July 2025
£
£
£
£
Cash at bank and in hand
1,348,900
(564,148)
-
784,752
Bank overdrafts
-
0
(29,836)
-
(29,836)
1,348,900
(593,984)
-
754,916
Obligations under finance leases
(173,270)
101,429
(41,487)
(113,328)
1,175,630
(492,555)
(41,487)
641,588
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