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Registered number: 04435952 Nick Kenward Construction Limited Annual report and financial statements For the year ended 31 July 2025
Nick Kenward Construction Limited Company Information
Director | N C Kenward
Company secretary | M J Kenward
Registered number | 04435952
Registered office | Eastwood Farm Rusper Road
| Newdigate
| Dorking
| Surrey
| RH5 5BX
Independent auditors | Kreston Reeves Audit LLP
| Statutory Auditor
| Springfield House
| Springfield Road
| Horsham
| West Sussex
| RH12 2RG
Nick Kenward Construction Limited Contents
| Page
Strategic report | 1
Director's report | 2 - 3
Independent auditors' report | 4 - 7
Statement of comprehensive income | 8
Balance sheet | 9
Statement of changes in equity | 10
Statement of cash flows | 11
Notes to the financial statements | 12 - 23
Nick Kenward Construction Limited Strategic report For the year ended 31 July 2025
Introduction
The strategic report is set out by the director to provide the shareholders with information on the business and an insight into its main objectives and strategies and the principal risks it faces.
Business review
The Director can report that the company has delivered good results despite the current economic uncertainties. Whilst turnover and profitability have fallen during the year, the results represent a good performance in current market conditions and reflect the hard work and commitment of all our staff. Staffing levels during the year have been maintained and we follow a strong emphasis on staff training in order to maintain the highest levels of professional performance for our clients. Cashflow during the period has remained strong and the company continues to retain funds and investments to keep a strong balance sheet, thus providing security for our clients and suppliers. I remain confident that bank and cash balances of almost £3.1m, together with future internal cashflow will be adequate to fund the working capital requirements for the foreseeable future.
Principal risks and uncertainties
The management of the business and the execution of the Company’s strategy are subject to a number of risks. The key business risks and uncertainties are considered to relate to competition from other construction companies and movements in commodity and labour prices, as well as fiscal government intervention. The Director considers he has effectively mitigated some of these risks through establishing strong relationships with both clients and suppliers and maintaining throughout the Company’s commitment to the delivery of a high quality service through fair pricing, and professional workmanship. In addition, the Company’s commitment to its staff and their welfare is paramount.
Financial key performance indicators
The financial key performance indicators considered by the Company in respect of its trading activities are turnover, gross profit, operating profit, and cash resources. Summary of key performance indicators 2025 2024 2023 Turnover £15.48m £19.76m £10.85m Gross Profit £3.16m £5.23m £2.37m Gross Profit Margin 20.4% 26.5% 21.9% Operating Profit £2.03m £3.7m £1.35m Cash & Bank £3.08m £3.29m £2.47m
This report was approved by the board and signed on its behalf.
................................................ N C Kenward Director
Date: 3 March 2026
Page 1
Nick Kenward Construction Limited Director's report For the year ended 31 July 2025 The director presents his report and the financial statements for the year ended 31 July 2025.
Director's responsibilities statement
The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to: ∙select suitable accounting policies for the Company's financial statements and then apply them consistently; ∙make judgments and accounting estimates that are reasonable and prudent; ∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The director is 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 to enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.
Principal activity
The principal activity of the company is that of a groundworks contractor.
Results and dividends
The profit for the year, after taxation, amounted to £1,550,837 (2024 - £2,822,827). The ordinary dividend payable for the year was £510,000 (2024: £637,000).
Director
The director who served during the year was:
N C Kenward
Future developments
We continue to look for more suitable ways to expand our customer base and grow our operations. Page 2
Nick Kenward Construction Limited Director's report (continued) For the year ended 31 July 2025
Financial instruments
The company is funded from internal resources with no use of external debt, and as such there is no exposure to interest rate risk. The company is exposed to liquidity and cash flow risk, however under normal circumstances these have relatively low variability. The risk is mitigated by the company maintaining significant cash reserves. In addition, the company is exposed to normal commercial risks in terms of pricing pressure, however gross profit margins remain particularly strong so the level of risk here is considered to be low.
Disclosure of information to auditors
The director at the time when this Director's report is approved has confirmed that: ∙so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and ∙he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Auditors
The audit registration of Kreston Reeves LLP was transferred to Kreston Reeves Audit LLP on 6 October 2025. Kreston Reeves Audit LLP were formally appointed as auditor to the company 6 October 2025. The auditors, Kreston Reeves Audit LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board and signed on its behalf.
................................................ N C Kenward Director
Date: 3 March 2026
Page 3
Nick Kenward Construction Limited Independent auditors' report to the members of Nick Kenward Construction Limited
Opinion
We have audited the financial statements of Nick Kenward Construction Limited (the 'Company') for the year ended 31 July 2025, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: ∙give a true and fair view of the state of the Company's affairs as at 31 July 2025 and of its profit for the year then ended; ∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ∙have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 director's 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 director 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 Auditors' report thereon. The director is 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. Page 4
Nick Kenward Construction Limited Independent auditors' report to the members of Nick Kenward Construction Limited (continued)
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit: ∙the information given in the Strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the Strategic report and the Director's 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Director's report. 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 director's 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 Director's responsibilities statement set out on page 2, the director is 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 director determines 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 director is 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 director either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Page 5
Nick Kenward Construction Limited Independent auditors' report to the members of Nick Kenward Construction Limited (continued)
Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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: Capability of the audit in detecting irregularities, including fraud Based on our understanding of the company and industry, and through discussion with the director and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to revenue or expenditure and management bias in accounting estimates and judgemental areas of the financial statements such as the amounts recoverable on long-term contracts. Audit procedures performed by the engagement team included: ∙Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud, and review of the reports made by management; and ∙Assessment of identified fraud risk factors: and ∙Challenging assumptions and judgements made by management in its significant accounting estimates; and ∙Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and ∙Performing analytical procedures with automated data analytics tools to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and ∙Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and ∙Identifying and testing journal entries, in particular any manual entries made at the year-end for financial statement preparation. 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. Page 6
Nick Kenward Construction Limited Independent auditors' report to the members of Nick Kenward Construction Limited (continued) As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: ∙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. 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. ∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control. ∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. ∙Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern. ∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 Auditors' 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. Allan Pinner FCCA (Senior statutory auditor) for and on behalf of Kreston Reeves Audit LLP Statutory Auditor Horsham 3 March 2026 Page 7
Nick Kenward Construction Limited Statement of comprehensive income For the year ended 31 July 2025
| 2025 | 2024
Note | £ | £
Turnover | 4 | 15,481,620 | 19,762,414
Cost of sales |  | (12,320,686) | (14,530,140)
Gross profit |  | 3,160,934 | 5,232,274
Administrative expenses |  | (1,133,248) | (1,524,646)
Operating profit |  | 2,027,686 | 3,707,628
Interest receivable and similar income | 8 | 46,784 | 56,283
Interest payable and similar expenses | 9 | (5,223) | -
Profit before tax |  | 2,069,247 | 3,763,911
Tax on profit | 10 | (518,410) | (941,084)
Profit for the financial year |  | 1,550,837 | 2,822,827
There were no recognised gains and losses for 2025 or 2024 other than those included in the statement of comprehensive income.
There was no other comprehensive income for 2025 (2024:£NIL).
The notes on pages 12 to 23 form part of these financial statements.
Page 8
Nick Kenward Construction Limited Registered number: 04435952 Balance sheet As at 31 July 2025
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 13 |  | 71,792 |  | 85,507
Investments | 14 |  | 183 |  | 183
|  |  | 71,975 |  | 85,690
Current assets |  |  |  |  |
Stocks | 15 | 10,093 |  | 12,088 |
Debtors: amounts falling due within one year | 16 | 5,229,038 |  | 4,854,395 |
Cash at bank and in hand |  | 3,081,428 |  | 3,294,554 |
|  | 8,320,559 |  | 8,161,037 |
Creditors: amounts falling due within one year | 17 | (1,486,410) |  | (2,379,381) |
Net current assets |  |  | 6,834,149 |  | 5,781,656
Total assets less current liabilities |  |  | 6,906,124 |  | 5,867,346
Provisions for liabilities |  |  |  |  |
Deferred tax | 18 | - |  | (2,059) |
|  |  | - |  | (2,059)
Net assets |  |  | 6,906,124 |  | 5,865,287
Capital and reserves |  |  |  |  |
Called up share capital | 19 |  | 2 |  | 2
Profit and loss account | 20 |  | 6,906,122 |  | 5,865,285
|  |  | 6,906,124 |  | 5,865,287
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
................................................ N C Kenward
Director
Date: 3 March 2026
The notes on pages 12 to 23 form part of these financial statements. Page 9
Nick Kenward Construction Limited Statement of changes in equity For the year ended 31 July 2025
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 August 2023 | 2 | 3,679,458 | 3,679,460
Profit for the year | - | 2,822,827 | 2,822,827
Dividends | - | (637,000) | (637,000)
At 1 August 2024 | 2 | 5,865,285 | 5,865,287
Profit for the year | - | 1,550,837 | 1,550,837
Dividends | - | (510,000) | (510,000)
At 31 July 2025 | 2 | 6,906,122 | 6,906,124
| The notes on pages 12 to 23 form part of these financial statements.
Page 10
Nick Kenward Construction Limited Statement of cash flows For the year ended 31 July 2025
|  |  | 2025 | 2024
|  |  | £ | £
Cash flows from operating activities |  |
Profit for the financial year | 1,550,837 | 2,822,827
Adjustments for: |  |
Depreciation of tangible assets | 20,870 | 27,343
Loss on disposal of tangible assets | 1,131 | 213
Interest paid | 5,223 | -
Interest received | (46,784) | (56,283)
Taxation charge | 518,410 | 941,084
Decrease/(increase) in stocks | 1,995 | (2,952)
(Increase) in debtors | (373,698) | (2,174,747)
(Decrease)/increase in creditors | (584,163) | 315,499
Corporation tax (paid) | (830,222) | (454,708)
Net cash generated from operating activities | 263,599 | 1,418,276
Cash flows from investing activities |  |
Purchase of tangible fixed assets | (8,286) | (14,771)
Purchase of unlisted and other investments | - | (183)
Interest received | 46,784 | 56,283
Net cash from investing activities | 38,498 | 41,329
Cash flows from financing activities |  |
Dividends paid | (510,000) | (637,000)
Interest paid | (5,223) | -
Net cash used in financing activities | (515,223) | (637,000)
Net (decrease)/increase in cash and cash equivalents | (213,126) | 822,605
Cash and cash equivalents at beginning of year | 3,294,554 | 2,471,949
Cash and cash equivalents at the end of year | 3,081,428 | 3,294,554
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 3,081,428 | 3,294,554
| 3,081,428 | 3,294,554
The notes on pages 12 to 23 form part of these financial statements.
Page 11
Nick Kenward Construction Limited Notes to the financial statements For the year ended 31 July 2025
1. | General information
The company is a private company, limited by share capital, and incorporated in England and Wales, The address of its registered office is: Eastwood Farm Rusper Road, Newdigate, Dorking, Surrey, RH5 5BX. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3). The following principal accounting policies have been applied:
| 2.2 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised when all of the following conditions are satisfied: ∙the Company has transferred the significant risks and rewards of ownership to the buyer; ∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; ∙the amount of revenue can be measured reliably; ∙it is probable that the Company will receive the consideration due under the transaction; and ∙the costs incurred or to be incurred in respect of the transaction can be measured reliably. Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: ∙the amount of revenue can be measured reliably; ∙it is probable that the Company will receive the consideration due under the contract; ∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and ∙the costs incurred and the costs to complete the contract can be measured reliably.
| 2.3 | Interest income
Interest income is recognised in profit or loss using the effective interest method. Page 12
Nick Kenward Construction Limited Notes to the financial statements For the year ended 31 July 2025 2.Accounting policies (continued)
| 2.4 | Pensions
Defined contribution pension plan The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
| 2.5 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.6 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Page 13
Nick Kenward Construction Limited Notes to the financial statements For the year ended 31 July 2025 2.Accounting policies (continued)
| 2.7 | Intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. The estimated useful lives range as follows:
|  |  |  | Goodwill | - | 10 | years
| 2.8 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis. Depreciation is provided on the following basis:
|  |  |  | Plant and machinery | - | 25% | per annum
|  |  |  | Motor vehicles | - | 25% | per annum
|  |  |  | Fixtures and fittings | - | 25% | per annum
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
| 2.9 | Valuation of investments
Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
| 2.10 | Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
| 2.11 | Debtors
Short-term debtors are measured at transaction price, less any impairment. Page 14
Nick Kenward Construction Limited Notes to the financial statements For the year ended 31 July 2025 2.Accounting policies (continued)
| 2.12 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.
| 2.13 | Creditors
Short-term creditors are measured at the transaction price.
| 2.14 | Financial instruments
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
| 2.15 | Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
In the application of the company's accounting policies, which are described in note 2, the director is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparant 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 undelying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Key sources of estimation uncertainty Bad debt provision - The company offers credit terms to its customers and is at risk to the extent that a customer may be unable to pay the debt on the specified due date. The risk is mitigated by the strong on-going customer relationships. Bad debts are provided for when the company considers the debt is not recoverable. No bad debt provision was deemed required at either 31 July 2025 or 31 July 2024. Retentions - The company is subject to a retention policy in respect of some of its contracts and is at risk to the extent that customers may consider that the retentions are not payable. The risk is mitigated by strong customer relationships and a regular monitoring of the retention system in place. The carrying amount of retentions before provision at 31 July 2025 is £361,560 (2024 - £332,140). The carrying amount of retention provisions at 31 July 2025 is £18,080 (2024 - £16,610). Page 15
Nick Kenward Construction Limited Notes to the financial statements For the year ended 31 July 2025
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Sales | 15,469,620 | 19,742,414
| Sales - Management services | 12,000 | 20,000
|  | 15,481,620 | 19,762,414
| All turnover arose within the United Kingdom.
5. | Auditors' remuneration
| During the year, the Company obtained the following services from the Company's auditors:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Fees payable to the Company's auditors for the audit of the Company's financial statements | 16,500 | 16,500
| Fees payable to the Company's auditors for non-audit services of the Company's financial statements | 21,025 | 16,200
6. | Employees
| Staff costs, including director's remuneration, were as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Wages and salaries | 2,030,483 | 2,083,879
| Social security costs | 253,248 | 235,550
| Cost of defined contribution scheme | 37,040 | 299,791
|  | 2,320,771 | 2,619,220
| The average monthly number of employees, including the director, during the year was as follows:
|  |  | 2025 | 2024
|  |  | No. | No.
|  | Employees | 40 | 39
Page 16
Nick Kenward Construction Limited Notes to the financial statements For the year ended 31 July 2025
7. | Director's remuneration
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Director's emoluments | 13,880 | 13,808
| Company contributions to defined contribution pension schemes | - | 134,000
|  | 13,880 | 147,808
| During the year retirement benefits were accruing to 1 director (2024 - 1) in respect of defined contribution pension schemes.
8. | Interest receivable
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Other interest receivable | 46,784 | 56,283
9. | Interest payable and similar expenses
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Other interest payable | 5,223 | -
10. | Taxation
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 521,414 | 946,440
| Deferred tax |  |
| Origination and reversal of timing differences | (3,004) | (5,356)
|  | 518,410 | 941,084
Page 17
Nick Kenward Construction Limited Notes to the financial statements For the year ended 31 July 2025 10.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2024 - higher than) the main rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 2,069,247 | 3,763,911
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | 517,312 | 940,978
| Effects of: |  |
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 1,098 | 106
| Total tax charge for the year | 518,410 | 941,084
| Factors that may affect future tax charges
There were no factors that may affect future tax charges.
11. | Dividends
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Interim dividends | 510,000 | 637,000
Page 18
Nick Kenward Construction Limited Notes to the financial statements For the year ended 31 July 2025
12. | Intangible assets
|  | Goodwill
|  | £
| Cost |
| At 1 August 2024 | 149,750
| At 31 July 2025 | 149,750
| Amortisation |
| At 1 August 2024 | 149,750
| At 31 July 2025 | 149,750
| Net book value |
| At 31 July 2025 | -
| At 31 July 2024 | -
13. | Tangible fixed assets
|  | Plant and machinery | Motor vehicles | Fixtures and fittings | Total
|  | £ | £ | £ | £
| Cost |  |  |  |
| At 1 August 2024 | 62,967 | 64,490 | 87,222 | 214,679
| Additions | - | - | 8,286 | 8,286
| Disposals | - | - | (7,488) | (7,488)
| At 31 July 2025 | 62,967 | 64,490 | 88,020 | 215,477
| Depreciation |  |  |  |
| At 1 August 2024 | 50,275 | 20,153 | 58,744 | 129,172
| Charge for the year | 3,174 | 9,741 | 7,955 | 20,870
| Disposals | - | - | (6,357) | (6,357)
| At 31 July 2025 | 53,449 | 29,894 | 60,342 | 143,685
| Net book value |  |  |  |
| At 31 July 2025 | 9,518 | 34,596 | 27,678 | 71,792
| At 31 July 2024 | 12,692 | 44,337 | 28,478 | 85,507
Page 19
Nick Kenward Construction Limited Notes to the financial statements For the year ended 31 July 2025
14. | Fixed asset investments
|  | Unlisted investments
|  | £
| Cost or valuation |
| At 1 August 2024 | 183
| At 31 July 2025 | 183
15. | Stocks
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Raw materials and consumables | 10,093 | 12,088
16. | Debtors
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade debtors | 1,290,717 | 1,832,173
| Amounts owed by associates | 2,500,000 | 1,164,440
| Other debtors | 5,162 | 54,943
| Prepayments and accrued income | 467,892 | 326,199
| Amounts recoverable on long-term contracts | 964,322 | 1,476,640
| Deferred taxation (note 18) | 945 | -
|  | 5,229,038 | 4,854,395
17. | Creditors: Amounts falling due within one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade creditors | 600,083 | 1,096,497
| Amounts owed to associates | 50,938 | -
| Corporation tax | 271,414 | 580,222
| Other taxation and social security | 133,592 | 36,619
| Other creditors | 24,316 | 57,504
| Accruals and deferred income | 406,067 | 608,539
|  | 1,486,410 | 2,379,381
Page 20
Nick Kenward Construction Limited Notes to the financial statements For the year ended 31 July 2025
18. | Deferred taxation
|  | 2025
|  | £
| At beginning of year | (2,059)
| Charged to profit or loss | 3,004
| At end of year | 945
| The deferred taxation balance is made up as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Accelerated capital allowances | (2,059) | (7,131)
| Other short term timing differences | 3,004 | 5,072
|  | 945 | (2,059)
19. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Authorised, allotted, called up and fully paid |  |
|  | 180 (2024 - 180) Ordinary A shares of £0.01 each | 2 | 2
|  | 20 (2024 - 20) Ordinary B shares of £0.01 each | - | -
|  |  | 2 | 2
| The Ordinary A shares provide the holder with voting rights, entitlement to discretionary dividends, and a share in the distribution of the capital upon company wind-up. The Ordinary B shares provide the holder with entitlement to discretionary dividends, and a share in the distribution of the capital upon company wind-up.
20. | Reserves
Profit and loss account The profit and loss account includes all current and prior period retained profits and losses, net of dividends declared. Page 21
Nick Kenward Construction Limited Notes to the financial statements For the year ended 31 July 2025
21. | Contingent liabilities
The company is party to an unlimited cross-guarantee, dated 1 March 2023, with Barclays Bank in respect of a loan made to the Kenward Farm Partnership. A fixed charge is secured on land owned by the Kenward Farm Partnership. The aggregate of bank loans to which this cross-guarantee relates amounted to £3,270,759 at the balance sheet date.
22. | Pension commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund, The pension cost charge represents contributions payable by the Company to the fund and amounted to £37,040 (2024 - £299,791). Contributions totalling £6,719 (2024 - £6,676) were payable to the fund at the balance sheet date and are included in creditors.
23. | Commitments under operating leases
| At 31 July 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Not later than 1 year | 60,000 | 60,000
| Later than 1 year and not later than 5 years | 25,000 | 85,000
|  | 85,000 | 145,000
Page 22
Nick Kenward Construction Limited Notes to the financial statements For the year ended 31 July 2025
24. | Related party transactions
| Kenward Plant Limited (Common control) During the year the company incurred charges, net of VAT, of £816,141 (2024 - £1,008,002) from Kenward Plant Limited. During the year the company charged Kenward Plant Limited a management charge of £12,000 (2024 - £20,000). At the balance sheet date the amount owed to Kenward Plant Limited and included within creditors was £50,938 (2024 - amount of £264,440 due from Kenward Plant Limited and included within debtors). Horsielands Limited (Common control) During the year the company continued to provide a loan to Horsielands Limited. The loan is interest free and repayable on demand. At the balance sheet date the amount due from Horsielands Limited was £900,000 (2024 - £900,000). Templewood Farm Limited (Common control) During the year the company provided a loan to Templewood Farm Limited. The loan is interest free and repayable on demand. At the balance sheet date the amount due from Templewood Farm Limited was £1,600,000 (2024 - £NIL). Kenward Farm Partnership (Common control) During the year the company made payments to a partnership controlled by the director for rental of premises under a lease agreement of £60,000 (2024 - £60,000). In addition, the company charged the partnership a total amount, net of VAT, of £212,158 (2024 - £240,550) for construction work that was performed during the year. Finally, during the year the company incurred and recharged staff costs of £128,093 (2024 - £91,598) to the partnership. N C Kenward (Director) During the year the director made drawings of £541,536 (2024 - £597,563) from the company and repayments of £NIL (2024 - £NIL) to the company. In addition, during the year the company declared dividends of £510,000 (2024 - £637,000) payable to the shareholders, to be offset against the director's drawings. At the balance sheet date the amount due to the director was £10,977 (2024 - £42,513).
25. | Controlling party
The company is controlled by Mr N C Kenward and Mrs M J Kenward, who own 90% of the called up share capital.
Page 23