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Registered number: 09488478
| ANNUAL REPORT AND FINANCIAL STATEMENTS
| FOR THE YEAR ENDED 31 DECEMBER 2025
| PORR UK LTD
PORR UK LTD |  |
COMPANY INFORMATION
Directors | D Czerny
| M Halper
Registered number | 09488478
Registered office | 4 Longwalk Road
| Stockley Park
| Uxbridge
| UB11 1FE
Independent auditor | Menzies LLP
| Chartered Accountants & Statutory Auditor
| Magna House
| 18-32 London Road
| Staines-Upon-Thames
| TW18 4BP
PORR UK LTD |  |
CONTENTS
| Page
Strategic Report | 1 - 3
Directors' Report | 4 - 5
Independent Auditor's Report | 6 - 9
Statement of Comprehensive Income | 10
Statement of Financial Position | 11
Statement of Changes in Equity | 12
Notes to the Financial Statements | 13 - 33
PORR UK LTD |  |
STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2025
Introduction
PORR UK Ltd’s principal activity during the year continued to be the execution of the HS2 slab track contract in the United Kingdom. The Company operates as a project-based entity and during the year had only one active contract, being the HS2 project. The directors present this Strategic Report to provide a fair review of the Company’s business, performance and principal risks and uncertainties for the year ended 31 December 2025.
Business review
During the financial year ended 31 December 2025, the HS2 project remained the Company’s sole operational contract. Engineering and design activities were substantially completed in prior years. The year under review was characterised primarily by delays in the customer’s call-off of full production volumes. As a result, no normal production activity took place during the year. The Company’s activities in 2025 focused on managing the consequences of the delay, maintaining the supply chain, and preparing and submitting delay-related claims to the customer. Revenue recognised in 2025 amounted to £15.6 million (2024: £20.3 million). Revenue in both years did not arise from normal production activity but largely reflected delay-related cost recovery and, in the prior year, income associated with the termination of the Somerset factory project and the related impairment and reimbursement process. The year can be described as a transition year, focused on mitigating the impact of the project delay, maintaining operational readiness, and safeguarding contractual entitlements under the HS2 contract. In January 2026, the Company received a partial call-off for production, enabling the recommencement of design finalisation and quality verification processes. This represents the first step towards a return to operational production activities. Page 1
PORR UK LTD |  |
STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025
Principal risks and uncertainties
The directors have identified the following principal risks and uncertainties: Contract and Commercial Risk The Company operates under a lump sum NEC3 Option A contract with HS2 Ltd, which includes inflation indexation mechanisms. The contractual framework provides appropriate protection for the recovery of costs, overheads and profit in the event of significant changes to the project scope or programme. As a result, the directors do not consider there to be a significant risk of unrecoverable cost overruns. There is limited exposure to inflationary pressures within the supply chain, which is actively monitored by management. The Company is dependent on a single customer, HS2 Ltd. While this represents a concentration risk, the directors consider the contractual protections to be robust. Liquidity and Cash Flow Risk The Company forecasts positive cash flows for the project and did not experience any tight liquidity periods during 2025. Advance payments from the customer have largely been received and liquidity is considered adequate. Operational Risk The Company recognises a dependency on key staff due to the specialist nature of the HS2 contract. Supply chain delays remain a potential operational risk; however, appropriate contractual protections are in place with key subcontractors. Financial Risk (Foreign Exchange) The Company is exposed to foreign exchange risk as a result of purchasing embedded materials and design services from European suppliers. Foreign exchange exposure is mitigated through hedging arrangements, although timing differences may impact results
Financial key performance indicators
The Company monitors performance using financial KPIs aligned with group reporting requirements, including: ∙Revenue ∙Profit before tax ∙Cash and liquidity position ∙Order backlog ∙Unpaid performance and outstanding due payments ∙Gross margin and contribution These indicators are reviewed regularly by management to assess project performance, liquidity and overall financial stability. Page 2
PORR UK LTD |  |
STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025
Other key performance indicators
Health and Safety: No reportable incidents occurred during the year. Employees: Staff turnover remained low and workforce stability was maintained. Compliance: A compliance audit was conducted at UK level as part of a group-wide initiative, with no material regulatory breaches identified. Environmental, Social and Governance (ESG): ESG initiatives are driven primarily at Group level. Due to the delay in production activity and the Company’s role as a project-based entity, no specific standalone ESG initiatives were implemented in the UK during the year. Future Developments The Company tendered for additional scope within the HS2 project, including resilient track systems and switches and crossings. The outcome of these tenders is uncertain and may occur during 2026. Following receipt of a partial call-off in January 2026, the Company will commence initial production activities. Revenue for 2026 is expected to be broadly in line with recent years, subject to the timing of production call-offs. No major capital investments are planned. Minor additions to vehicles and limited production equipment may be required once full production commences. The directors do not anticipate any restructuring or closure of operations. Financial Risk Management The Company’s financial risk management focuses on: ∙Credit risk: The Company’s sole customer is HS2 Ltd, a UK government entity. Credit risk is therefore considered low. ∙Liquidity risk: The Company prepares regular project cash flow forecasts and expects to remain cash flow positive. ∙Interest rate risk: The Company has no external borrowings and is not materially exposed to interest rate fluctuations. ∙Foreign exchange risk: EUR/GBP exposure arising from supplier contracts is managed through hedging arrangements. This report was approved by the board and signed on its behalf.
D Czerny Director | M Halper Director
Date: 12 March 2026 |
Page 3
PORR UK LTD |  |
DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 The directors present their report and the financial statements for the year ended 31 December 2025.
Directors' responsibilities statement
The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to: ∙select suitable accounting policies and then apply them consistently; ∙make 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Principal activities The principal activity of the company continued to be that of acquiring and executing contracts in the UK in the infrastructure building sector.
Results and dividends
The profit for the year, after taxation, amounted to £1,273,208 (2024 - £994,213). No dividends were proposed during the year ended 31 December 2025.
Directors
The directors who served during the year were:
D Czerny
M Halper
Matters covered in the Strategic Report
The Company has chosen in accordance with the Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the Company's Strategic Report and the Company's Strategic Report Information required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review, principal risks and uncertainties, future developments and financial risk management sections. Page 4
PORR UK LTD |  |
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025
Disclosure of information to auditor
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and ∙the director 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 auditor is aware of that information.
Auditor
The auditor, Menzies LLP, were appointed on 23 December 2025 to fill a casual vacancy. Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier. This report was approved by the board and signed on its behalf.
D Czerny Director | M Halper Director
Date: 12 March 2026 | Date: 12 March 2026
Page 5
PORR UK LTD |  |
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PORR UK LTD
Opinion
We have audited the financial statements of PORR UK Ltd (the 'Company') for the year ended 31 December 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, 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 101 ‘Reduced Disclosure Framework’ (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 December 2025 and of its profit for the year then ended; ∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ∙have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.
Emphasis of matter on contingent liability
We draw attention to note 27 in the financial statements, which describes a contingent liability arising from the uncertain tax treatment of costs and revenue in relation to an aborted construction in the previous period. As disclosed in that note, the outcome of this matter is subjective, and therefore no provision has been recognised in the financial statements. Our opinion is not modified in respect of this matter.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. Page 6
PORR UK LTD |  |
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PORR UK LTD (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
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 Directors' Report 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' 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 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' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Page 7
PORR UK LTD |  |
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PORR UK LTD (CONTINUED)
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: ∙The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including UK Companies Act, employment law and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. ∙We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures. ∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area. ∙We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: °Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud; °Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; and °Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations. ∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: °Posting of unusual journals and complex transactions; and, °Risk over the recognition of revenue and estimates used in calculating long term contracts and expected margins. 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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report. Page 8
PORR UK LTD |  |
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PORR UK LTD (CONTINUED)
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. Sophie Said FCA (Senior Statutory Auditor) for and on behalf of Menzies LLP Chartered Accountants Statutory Auditor Magna House 18-32 London Road Staines-Upon-Thames TW18 4BP 12 March 2026 Page 9
PORR UK LTD |  |
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2025
|  | As restated
| 2025 | 2024
Note | £ | £
Revenue | 4 | 15,628,606 | 20,331,658
Cost of sales |  | (12,186,137) | (5,705,495)
Gross profit |  | 3,442,469 | 14,626,163
Administrative expenses |  | (3,024,753) | (3,130,192)
Exceptional administrative expenses | 5 | - | (7,220,804)
Operating profit | 6 | 417,716 | 4,275,167
Investment income | 10 | 184,789 | 287,998
Finance costs | 11 | (3,301) | (2,498)
Other gains and losses |  | 1,122,262 | (2,847,896)
Profit before tax |  | 1,721,466 | 1,712,771
Tax on profit | 13 | (448,258) | (718,558)
Profit for the financial year |  | 1,273,208 | 994,213
There was no other comprehensive income for 2025 (2024:£NIL).
The notes on pages 13 to 33 form part of these financial statements.
Page 10
PORR UK LTD REGISTERED NUMBER:09488478 |  |
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2025
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 14 |  | 5,699 |  | 7,530
Tangible assets | 15 |  | 677,185 |  | 403,047
|  |  | 682,884 |  | 410,577
Current assets |  |  |  |  |
Stocks |  | 743,397 |  | - |
Debtors: amounts falling due after more than one year | 17 | 12,502 |  | 3,865,933 |
Debtors: amounts falling due within one year | 17 | 9,964,134 |  | 1,563,055 |
Cash at bank and in hand |  | 5,161,777 |  | 9,526,701 |
|  | 15,881,810 |  | 14,955,689 |
Creditors: amounts falling due within one year | 18 | (11,548,046) |  | (11,550,404) |
Net current assets |  |  | 4,333,764 |  | 3,405,285
Total assets less current liabilities |  |  | 5,016,648 |  | 3,815,862
Creditors: amounts falling due after more than one year | 19 |  | (715,273) |  | (885,061)
|  |  | 4,301,375 |  | 2,930,801
Provisions for liabilities |  |  |  |  |
Deferred taxation | 22 | (144,278) |  | (47,762) |
Other provisions |  | (19,831) |  | (18,981) |
|  |  | (164,109) |  | (66,743)
Net assets |  |  | 4,137,266 |  | 2,864,058
Capital and reserves |  |  |  |  |
Called up share capital | 24 |  | 1 |  | 1
Capital contribution reserve | 25 |  | 3,336,000 |  | 3,336,000
Profit and loss account | 25 |  | 801,265 |  | (471,943)
|  |  | 4,137,266 |  | 2,864,058
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
D Czerny | M Halper
Director | Director
Date: 12 March 2026 | Date:12 March 2026
The notes on pages 13 to 33 form part of these financial statements. Page 11
PORR UK LTD |  |
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2025
| Called up share capital | Capital contribution reserve | Profit and loss account | Total equity
| £ | £ | £ | £
At 1 January 2024 | 1 | 3,336,000 | (1,466,156) | 1,869,845
Profit and total comprehensive income for the year | - | - | 994,213 | 994,213
At 1 January 2025 | 1 | 3,336,000 | (471,943) | 2,864,058
Profit and total comprehensive income for the year | - | - | 1,273,208 | 1,273,208
At 31 December 2025 | 1 | 3,336,000 | 801,265 | 4,137,266
Page 12
PORR UK LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
1. | General information
PORR UK Ltd is a private company limited by shares incorporated in England and Wales. The registered number and registered office, which is also the company's principal place of business, is disclosed on the company information page. The company's principal activities and nature of its operations are disclosed in the directors' report. The financial statements are rounded to the nearest £. 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 101 'Reduced Disclosure Framework' and the Companies Act 2006. The preparation of financial statements in compliance with FRS 101 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 | Financial Reporting Standard 101 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions under FRS 101: ∙the requirements of IFRS 7 Financial Instruments: Disclosures ∙the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement ∙the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers ∙the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases. The requirements of paragraph 58 of IFRS 16, provided that the disclosure of details in indebtedness relating to amounts payable after 5 years required by company law is presented separately for lease liabilities and other liabilities, and in total ∙the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of: - paragraph 79(a)(iv) of IAS 1; - paragraph 73(e) of IAS 16 Property, Plant and Equipment; ∙the requirements of IAS 7 Statement of Cash Flows ∙the requirements of paragraph 74A(b) of IAS 16 ∙the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures ∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member ∙the requirements of paragraph 88C and 88D of IAS 12 Income Taxes. This information is included in the consolidated financial statements of PORR AG, the ultimate parent company, as at 31 December 2025. PORR AG is listed on the Vienna stock exchange. The consolidated financial statements may be obtained from Abserrggasse 47, 1100 Vienna, Austria and are also available and the company's website. Page 13
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.3 | Going concern
The financial statements have been prepared on a going concern basis. In assessing the Company’s ability to continue as a going concern, the Directors have reviewed the Company’s financial position as at 31 December 2025 together with cash flow forecasts covering a period of at least 12 months from the date of approval of these financial statements. The forecasts are based on contracted activities under the HS2 project, including expected production volumes, customer receipts and related subcontractor and operating cost commitments. The Directors have considered reasonably possible changes in key assumptions, including timing differences in customer receipts and project delivery schedules. Based on this assessment, the Company is expected to maintain sufficient liquidity to meet its obligations as they fall due. The Directors have not identified any material uncertainties that would cast significant doubt on the Company’s ability to continue as a going concern.
| 2.4 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. All translation differences are taken to the profit or loss, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income. Page 14
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.5 | Revenue
The Company generates revenue from long-term contracts relating to the design, production and support of slab track units. Management has assessed the contractual arrangements under IFRS 15 and concluded that the activities performed represent a single integrated performance obligation. Revenue is recognised over time, as the assets produced are customer-specific and the Company has an enforceable right to payment for performance completed to date. Progress towards satisfaction of the performance obligation is measured using an input method, based on costs incurred to date relative to total estimated contract costs. Revenue is recognised in proportion to the stage of completion at the reporting date. The transaction price is determined in accordance with the contract and includes variable consideration where applicable, to the extent that it is highly probable that a significant reversal will not occur. Contract assets and contract liabilities arise where revenue recognised differs from amounts invoiced in accordance with contractual payment terms.
| 2.6 | Exceptional items
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
| 2.7 | Leases
The Company as a lessee The Company assesses whether a contract is or contains a lease, at inception of a contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease. The right-of-use assets are included in the 'Intangible Assets', 'Tangible Fixed Assets' and 'Investment Property' lines, as applicable, in the Statement of Financial Position. The Company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in note 2.11. As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has used this practical expedient. Page 15
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.8 | 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 Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
| 2.9 | 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 reporting 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 reporting 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 reporting date.
| 2.10 | 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. Amortisation of intangible assets is recognised within administrative expenses in the Statement of Comprehensive Income. Amortisation is provided on the following bases:
|  |  |  | Computer software | - | 20% | straight-line
Page 16
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.11 | 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. Right-of-use assets are recognised at commencement of the lease and initially measured at the amount of the lease liability, plus any incremental costs of obtaining the lease and any lease payments made at or before the leased asset is available for use by the company. Assets under construction represent costs incurred in relation to construction of the factory. These costs are not depreciated until the accounting period in which the factory is brought into use. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Long-term leasehold property | - | over the length of the lease
|  |  |  | Plant and machinery | - | 3 to 9 years, depending on the expected useful life of the asset
|  |  |  | Motor vehicles | - | 3 years
|  |  |  | Computer equipment | - | 5 years
Certain production-specific assets located at subcontractor facilities and dedicated to the HS2 contract are depreciated over the expected contract duration, where management considers that the assets have no alternative economic use outside the contract. During the year, the estimated useful life of computer equipment was revised from 3 years to 5 years following a group-wide reassessment of hardware replacement cycles. The change has been applied prospectively as a change in accounting estimate. 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. Page 17
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.12 | Impairment of tangible and intangible assets
At each reporting end date, the company 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. Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired. 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. 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.
| 2.13 | Stocks
Stocks comprise specialised construction materials (“embedded items” or “Free Issue Items”) procured by the Company for use in fulfilling its contractual obligations under the HS2 project. Stocks are initially recognised when control of the goods transfers to the Company upon receipt from suppliers and are measured at the lower of cost and net realisable value. Cost comprises purchase price and directly attributable costs incurred in bringing the inventories to their present location and condition and is determined using the first-in, first-out (FIFO) method. These materials are supplied to the Company’s subcontractor for incorporation into slab track units but remain part of the Company’s contract fulfillment process. Stocks are charged to cost of sales when the materials are consumed in production and incorporated into completed units in satisfaction of the Company’s performance obligations under IFRS 15. At each reporting date, inventories are reviewed for impairment and written down where their carrying amount exceeds net realisable value. Page 18
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.14 | Financial instruments
The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below: Financial assets and financial liabilities are initially measured at fair value. Financial assets All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets. Fair value through profit or loss All of the Company's financial assets other than those which meet the criteria to be measured at amortised cost are subsequently measured at fair value at the end of each reporting period, with any fair value gains or losses being recognised in profit or loss to the extent they are not part of a designated hedging relationship. The net gain or loss recognised in profit or loss includes any dividend or interest earned on the financial asset. Debt instruments at amortised cost Debt instruments are subsequently measured at amortised cost where they are financial assets held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and selling the financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Amortised cost is calculated using the effective interest method and represents the amount measured at initial recognition less repayments of principal plus the cumulative amortisation using the effective interest method of any difference between the initial amount and the maturity amount, adjusted for any loss allowance. Impairment of financial assets The Company recognises a loss allowance for expected credit losses on investments in debt instruments that are measured at amortised or at FVOCI. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Company always recognises lifetime ECL for trade receivables and amounts due on contracts with customers. The expected credit losses on these financial assets are estimated based on the Company's historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. Financial liabilities Fair value through profit or loss Financial liabilities are classified as at fair value through profit or loss, when the financial liability is held for trading, or is designated as at fair value through profit or loss. This designation may be made if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise, or the financial liability forms part of a group of financial instruments which is managed and its performance is evaluated on a fair value basis, or the financial liability forms part of a contract containing one or more embedded derivatives, and IFRS 9 permits the entire combined contract to be designated as at fair value through profit or loss. Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated hedging relationship. Page 19
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.14 | Financial instruments (continued)
At amortised cost Financial liabilities which are neither contingent consideration of an acquirer in a business combination, held for trading, nor designated as at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. This is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate a shorter period, to the amortised cost of a financial liability. Derecognition of financial liabilities A liability is derecognised when the contract that gives rise to it is settled, sold, cancelled or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such as an exchange or modification, this is treated as a derecognition of the original liability, such that the difference in the respective carrying amounts together with any costs or fees incurred are recognised in profit or loss.
| 2.15 | Derivatives
The Company enters into derivative financial instruments, primarily forward foreign exchange contracts, to manage exposure to foreign currency risk arising from supplier contracts denominated in foreign currencies. Derivatives are initially recognised at fair value on the date the derivative contract is entered into and are subsequently remeasured to fair value at each reporting date. All derivatives are measured at fair value through profit or loss. Changes in fair value are recognised immediately in profit or loss. Derivative financial instruments are presented as financial assets when their fair value is positive and as financial liabilities when their fair value is negative. They are classified as current or non-current based on the expected settlement date. The Company does not apply hedge accounting.
| 2.16 | Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event and it is probable that the company will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. Page 20
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.17 | 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 inventories or non-current 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.
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, 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. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below. Critical judgements Uncertainty over income tax treatments The Company's financial statements reflect a significant judgement by the directors regarding the UK corporate tax treatment of costs and revenue associated with the aborted construction of the Somerset precast slab facility. This judgement affects the determination of taxable profit in respect of the period ended 31 December 2024, specifically whether the expenditure is deductible and whether the reimbursement should be treated as taxable income or as a capital receipt. Revenue of £12,499,815 and related costs of £11,287,534 have been recognised in the Income Statement for the period ended 31 December 2024. The directors, drawing their own assessment and supported by independent tax advice, together with consideration of applicable legislation, HMRC guidance, and established principles, concluded that the expenditure is capital in nature and the reimbursement should be treated as a capital receipt in the tax calculation. On this basis, no additional taxable profit arises beyond the reported surplus. In accordance with IFRIC 23, the directors have assessed the likelihood of HMRC challenging this position and, taking into account external advices, consider this risk to be less than probable. Accordingly, no provision has been recognised. For transparency, the potential financial effect has been presented as a contingent liability. If HMRC were to successfully challenge the Company's position, the maximum potential tax exposure, excluding penalties and interest, is estimated at £2.8 million. Useful economic life of property, plant and equipment The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residue values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 15 for the carrying amount of property, plant and equipment and policy 2.11 for the useful economic lives for each class of asset. Page 21
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 3.Judgments in applying accounting policies (continued) Lease liabilities In determining the lease term, the company assesses whether it is reasonably certain to exercise, or not to exercise, options to extend or terminate the lease. This assessment is made at the start of the lease and is re-assessed if significant events of changes in circumstances occur that are within the lessee's control. The company uses judgement to assess whether the interest rate implicit in the lease is readily determinable. When the interest rate implicit in the lease is not readily determinable, the company estimates the incremental borrowing rate based on its external borrowing secured against similar assets, adjusted for the term of the lease.
4. | Revenue
| An analysis of revenue by class of business is as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Contract income | 15,074,190 | 20,033,966
| Group recharges | 554,416 | 297,692
|  | 15,628,606 | 20,331,658
| The total revenue of the company for the period has been derived from its principal activity wholly undertaken in the United Kingdom.
Page 22
PORR UK LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
5. | Exceptional items
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Exceptional item - loss on impairment of fixed assets | - | 7,220,804
|  | - | 7,220,804
| During the prior year, an impairment charge of £7,220,804 was recognised in respect of costs incurred on the planned Somerset precast slab facility. This facility was integral to fulfilling one of the Company’s contracts with a major customer. In June 2024, the Company agreed with the customer on significant modifications to the contract terms. These changes were aimed at increasing the overall efficiency of the project, and, as a result, the planned construction of the facility was canceled. According to the management’s assessment, the cancellation of the facility's construction represents a triggering event for impairment under IAS 36, as the carrying amount of these capitalised assets will no longer be used or contribute to future cash flows and is no longer recoverable. Consequently, all irrecoverable facility-related costs, totaling £11,287,534, were recognised within the reporting period and recorded in the Income Statement under: ∙Exceptional cost - Loss on impairment of fixed assets of £7,220,804 - previously costs capitalised as Assets under Construction, ∙Cost of sales of £4,066,730 - facility-related costs incurred after the contract modification, primarily comprised of termination-related expenses. The related expenditure was reimbursed by the customer under the terms of the contract. Accordingly, while the impairment is reported as an exceptional charge in the income statement, it has been fully offset by the related reimbursement. The presentation, as an exceptional item, highlights the one-off and non-recurring nature of the impairment, but the transaction had no net impact on cash flows or the Company’s overall financial position.
6. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Depreciation of tangible fixed assets | 202,748 | 118,710
| Profit on disposal of tangible fixed assets | (162,287) | (8,808)
| Intangible fixed assets - amortisation | 4,197 | 4,938
| Exchange differences | (18,090) | 9,597
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
7. | Auditor's remuneration
| During the year, the Company obtained the following services from the Company's auditor:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Fees payable to the Company's auditor for the audit of the Company's financial statements | 47,500 | 60,200
| Fees payable to the Company's auditor in respect of: |  |
| Taxation compliance services | - | 4,250
| All non-audit services not included above | 4,200 | 3,850
8. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Wages and salaries | 2,785,842 | 2,495,819
| Social security costs | 379,671 | 291,465
| Pension costs | 85,795 | 80,670
|  | 3,251,308 | 2,867,954
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2025 | 2024
|  |  | No. | No.
|  | Administration and management | 25 | 23
Page 24
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
9. | Directors' remuneration
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Directors' emoluments | 314,056 | 247,525
| Company contributions to defined contribution pension schemes | 6,971 | 6,787
|  | 321,027 | 254,312
| During the year retirement benefits were accruing to 1 director (2024 - 1) in respect of defined contribution pension schemes.
| The highest paid director received remuneration of £314,056 (2024 - £247,525).
| The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £6,971 (2024 - £6,787).
10. | Investment income
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank deposit interest receivable | 184,789 | 287,998
|  | 184,789 | 287,998
11. | Finance costs
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Interest on other loans | 3,301 | 2,498
|  | 3,301 | 2,498
12. | Other gains and losses
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| (Gain)/Loss on hedged item in a fair value hedge | (1,122,262) | 2,847,896
|  | (1,122,262) | 2,847,896
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
13. | Taxation
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 350,810 | 276,905
| Adjustments in respect of previous periods | 932 | -
|  | 351,742 | 276,905
| Total current tax | 351,742 | 276,905
| Deferred tax |  |
| Origination and reversal of timing differences | 96,516 | 441,653
| Total deferred tax | 96,516 | 441,653
| Tax on profit | 448,258 | 718,558
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2024 - higher than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 1,721,466 | 1,712,771
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | 430,367 | 428,193
| Effects of: |  |
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 4,838 | 2,825,712
| Capital allowances for year in excess of depreciation | - | 292,744
| Adjustments to tax charge in respect of prior periods | 932 | -
| Non-taxable income | - | (2,821,884)
| Movement in deferred tax not recognised | 12,324 | -
| Group relief | (203) | (6,207)
| Total tax charge for the year | 448,258 | 718,558
Page 26
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
14. | Intangible assets
|  | Computer software
|  | £
| Cost |
| At 1 January 2025 | 22,861
| Additions | 2,366
| At 31 December 2025 | 25,227
| Amortisation |
| At 1 January 2025 | 15,331
| Charge for the year on owned assets | 4,197
| At 31 December 2025 | 19,528
| Net book value |
| At 31 December 2025 | 5,699
| At 31 December 2024 | 7,530
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
15. | Tangible fixed assets
|  | Right-of-use asset - Leasehold property | Plant and machinery | Right-of-use asset - Motor vehicles | Computer equipment | Total
|  | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |
| At 1 January 2025 | 406,479 | 272,539 | 15,361 | 48,022 | 742,401
| Additions | 18,893 | 363,809 | - | 96,131 | 478,833
| Disposals | - | (21,028) | - | (5,482) | (26,510)
| At 31 December 2025 | 425,372 | 615,320 | 15,361 | 138,671 | 1,194,724
| Depreciation |  |  |  |  |
| At 1 January 2025 | 259,007 | 35,319 | 9,373 | 35,655 | 339,354
| Charge for the year on owned assets | - | 91,346 | - | 22,820 | 114,166
| Charge for the year on right-of-use assets | 73,917 | - | 5,132 | - | 79,049
| Disposals | - | (15,030) | - | - | (15,030)
| At 31 December 2025 | 332,924 | 111,635 | 14,505 | 58,475 | 517,539
| Net book value |  |  |  |  |
| At 31 December 2025 | 92,448 | 503,685 | 856 | 80,196 | 677,185
| At 31 December 2024 | 147,472 | 237,220 | 5,988 | 12,367 | 403,047
| The net book value of owned and leased assets included as "Tangible fixed assets" in the Statement of Financial Position is as follows:
|  | 2025 | 2024
|  | £ | £
| Tangible fixed assets owned | 583,881 | 249,587
| Right-of-use tangible fixed assets | 93,304 | 153,460
|  | 677,185 | 403,047
Page 28
PORR UK LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 15.Tangible fixed assets (continued)
| Information about right-of-use assets is summarised below:
| Net book value
|  |  |  | 2025 | 2024
|  |  |  | £ | £
| Property | 92,448 | 147,472
| Motor vehicles | 856 | 5,988
|  | 93,304 | 153,460
| Depreciation charge for the year ended
|  |  |  | 2025 | 2024
|  |  |  | £ | £
| Property | 73,917 | 72,569
| Motor vehicles | 5,132 | 5,133
|  | 79,049 | 77,702
| Additions to right-of-use assets
|  | 2025 | 2024
|  | £ | £
| Additions to right-of-use assets | 18,893 | 135,819
16. | Stocks
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Other construction materials | 743,397 | -
|  | 743,397 | -
17. | Debtors
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Due after more than one year |  |
| Other debtors | 12,502 | 65,933
| Advanced payments to subcontractors | - | 3,800,000
|  | 12,502 | 3,865,933
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PORR UK LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 17.Debtors (continued)
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Due within one year |  |
| Trade debtors | 11,899 | 6,383
| Amounts owed by group undertakings | 330,730 | 62,801
| Other debtors | 65,705 | 757,734
| Prepayments and accrued income | 54,306 | 84,940
| Tax recoverable | (28,647) | -
| Advance payments to subcontractors | 9,499,958 | 649,700
| Derivative financial instruments | 30,183 | 1,497
|  | 9,964,134 | 1,563,055
18. | Creditors: Amounts falling due within one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade creditors | 1,512,356 | 2,071,540
| Amounts owed to group undertakings | 203,737 | 186,219
| Corporation tax | - | 276,905
| Other taxation and social security | 96,150 | 66,790
| Lease liabilities | 83,895 | 58,140
| Other creditors | 14,669 | 14,429
| Accruals and deferred income | 7,485,060 | 260,492
| Derivative financial instruments | 120,346 | 3,073,548
| Contract liabilities | 2,031,833 | 5,542,341
|  | 11,548,046 | 11,550,404
19. | Creditors: Amounts falling due after more than one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Lease liabilities | 13,115 | 97,010
| Derivative financial instruments | 702,158 | 788,051
|  | 715,273 | 885,061
Page 30
PORR UK LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
20. | Leases
| Company as a lessee
| The company has entered into lease agreements for office space and vehicle hire.
| Lease liabilities are due as follows:
|  |  |  | 2025 | 2024
|  |  |  | £ | £
| Not later than one year | 83,895 | 58,140
| In two to five years | 13,115 | 97,010
|  | 97,010 | 155,150
| The following amounts in respect of leases, where the Company is a lessee, have been recognised in profit or loss:
|  |  |  | 2025 | 2024
|  |  |  | £ | £
| Interest expense on lease liabilities | 3,301 | 2,498
21. | Contract liabilities
| Contract liabilities relate to consideration received in advance of the performance obligation being satisfied, net of any contract assets that predominantly relate to fulfilled obligations which have not yet been invoiced. At the point where completed work is invoiced, the contract asset element of the above is derecognised, and a corresponding receivable recognised. Revenue recognised in the reporting period that was included in the contract liability balance at the end of the prior year amounts to £13,537,894.
22. | Deferred taxation
|  | 2025
|  | £
| At beginning of year | (47,762)
| Charged to profit or loss | (96,516)
| At end of year | (144,278)
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PORR UK LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 22.Deferred taxation (continued)
| The provision for deferred taxation is made up as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Accelerated capital allowances | (144,278) | (49,459)
| Retirement benefit obligations | - | 1,697
|  | (144,278) | (47,762)
23. | Provisions
|  | Provision
|  | £
| At 1 January 2025 | 18,981
| Charged to profit or loss | 850
| At 31 December 2025 | 19,831
24. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Authorised, allotted, called up and fully paid |  |
|  | 1 (2024 - 1) Ordinary share of £1.00 | 1 | 1
| The company has one class of ordinary shares. Each ordinary share has full rights in respect of voting, and full participation in respect of equity.
25. | Reserves
Capital contribution reserve This reserve records the nominal value of shares repurchased by the group. Profit and loss account The profit and loss reserve records retained earnings and accumulated losses attributable to the shareholders of the Group. Page 32
PORR UK LTD |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
26. | Prior year adjustment
The prior year Statement of Comprehensive Income has been restated to reclassify salaries between cost of sales and administrative expenses. As a result, cost of sales has increased by £1,565,816 and administrative expenses have decreased by £1,565,816. There has been no impact on total comprehensive income for the year or the Statement of Financial Position.
27. | Contingent liabilities
The Company has adopted a specific tax position regarding the costs and revenue associated with the aborted construction of the Somerset precast slab factory. The position treats the expenditure as capital expenditure and the corresponding contract income as a capital receipt in respect of the prior period. In accordance with IFRIC 23, the directors assessed the risk of HMRC challenging this tax treatment to be less than probable and accordingly, no provision has been recognised. Details have been set out in note 3. For transparency, should HMRC successfully change the Company's adopted position, the maximum potential tax liability is estimated at £2.8 million.
28. | Retirement benefit schemes
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. At the balance sheet date, included in other creditors was £14,625 (2024: £14,429) payable in respect of defined contributions.
29. | Related party transactions
| The company has taken advantage of the exemption under FRS 101 from the requirements in 'IAS 24 Related Party Disclosures' to disclose related party transactions entered into between two or more members of a group.
30. | Controlling party
The immediate parent company is PORR Bau GmbH, a company incorporated in Austria. The ultimate parent company is PORR AG, a company incorporated in Austria, which is the largest and smallest group to consolidate these financial statements. PORR AG is listed on the Vienna stock exchange. The consolidated financial statements of PORR AG are available from Absberggasse 47, A-1100 Vienna, Austria and are also available on the company's website. The directors do not consider there to be one ultimate controlling party.
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