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

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year-​end.

As a group of companies, we have experienced a very good set of results despite the challenging trading conditions in recent years. The standout result this year was from a strong performance from A E Yates Limited.

A E Yates Limited (parent company) chose to again focus more on our less risk market areas with an emphasis, as ever, on quality jobs with quality clients and established long term frameworks, of course not neglecting our normal civils markets.

At the moment we can say that results during the new financial year for most companies within the group are as expected and should contribute to another positive result for the group at the end of August 2026. In particular, A E Yates Limited had another fantastic year but SPI Piling Limited had a tough year due to the challenging trading conditions in the geotechnical and construction sectors. During the year, A E Yates Limited increased turnover to £93m from £53m, the PBIT has increased to £3.2m (2024: £2.7m). Unfortunately, the turnover of SPI Piling Ltd decreased to £9.6m (2024: £14.1m), resulting in a reported loss for the year of circa £1m but indications for the current year are that conditions are improving and it is expected that there will be a return to profitability in 2026.

We feel that our performances for the forthcoming financial year should be satisfactory for most areas of our business. We feel confident in the marketplace for the remainder of 2025-​2026 and through to the end of 2027. Through the diversity of our business profile and markets, and our financial strength, we feel well placed to maintain the levels of our performance to the end of the next financial year. We hope to achieve turnover at levels commensurate with the current marketplace and improve our markets shares, over the next few years, in the water, energy, road infrastructure, industrial/​commercial and ground stabilisation markets. The impact on our business of the current economic climate has been negligible.

We remain focussed on the newer markets which should provide the company with strong potential growth and satisfactory margins. Within the previous years there were notable successes in achieving awards on numerous high quality frameworks across multiple diverse sectors. Our forward order book is substantial, allowing us strategically focus on high quality profitable future work streams for clients who share our common values.

Our energy/​power division has continued to make impressive inroads into the regional electricity sector and has maintained our strong presence in the renewables, power transmission, and waste management market.

Maintenance of cash and our management of our liquidity will, as ever, be of paramount importance. Capital expenditure on some replacement and additions to key plant items will continue during the 2025/​26 calendar year and the 2026/​27 years.

We continue to invest in the development of our people, recognising that their capability, commitment, and professionalism are central to our success. This investment is reflected in the strength of our year end performance. By nurturing talent at every stage of career development, we are helping to shape the future of our industry. As members of the 5% Club, we remain committed to providing high quality earn and learn opportunities, enabling individuals to build the skills, knowledge and experience needed to succeed in their chosen professions. The Group continued to demonstrate a strong focus on Health and Safety throughout the year. While the Accident Frequency Rate increased to 0.18, this remains low in the context of our operational profile and reflects a small number of minor, non life changing incidents. Each incident was fully investigated, with learnings embedded into our safe systems of work. Our continued focus on managing significant risks and reinforcing positive safety behaviours remains central to our objective of returning to an AFR of zero.

Our Integrated Management System remains fully compliant with ISO 9001:2015 (Quality Management System), ISO 14001:2015 (Environmental Management System), ISO 45001:2018 (Occupational Health & Safety Management System), ISO 44001:2017 (Collaborative Business Relationship) and we maintain our certification to PAS 2080:2023 (Carbon Management).

A E Yates Limited recognises the significant responsibility it holds in protecting and enhancing the natural environment across the communities in which it operates. Environmental performance is integral to our wider sustainability strategy, reflecting the close interdependency between environmental stewardship and social value delivery.

Throughout the reporting period, the Group continued to strengthen its environmental management approach through the systematic use of environmental and sustainability impact assessments across its projects. These assessments address key environmental aspects including energy efficiency, carbon emissions, water consumption, materials selection, waste management and ecological impact. Performance against environmental objectives is routinely monitored, enabling the identification of risks, opportunities, and priority areas for continual improvement.

During the year, A E Yates successfully delivered against its published social value and sustainability commitments across multiple infrastructure and civil engineering projects, including initiatives that contribute to biodiversity enhancement, resource efficiency and reduced environmental disturbance. This included embedding sustainable construction methodologies and engaging with supply chain partners to drive improved environmental outcomes at project level.

Climate change mitigation remains a strategic priority for the Group. A E Yates maintains a publicly available Carbon Reduction Plan, first introduced in 2021 and updated in line with UK Government Procurement Policy Note 06/21. The plan confirms the Group’s ambition to achieve Net Zero carbon emissions for Scope 1 and Scope 2 by 2030, supported by defined interim targets, governance arrangements and annual performance review.

In May 2025, A E Yates Group achieved a significant milestone when its near-term emissions reduction target was formally validated by the Science Based Targets initiative (SBTi) and published on the SBTi target dashboard. The validated target commits the Group to:

• Reduce absolute Scope 1 and Scope 2 greenhouse gas emissions by 46.2% by FY2030, from a FY2018 baseline; and

• Measure and actively seek to reduce Scope 3 emissions across its value chain.

This external validation provides independent assurance that the Group’s decarbonisation pathway aligns with climate science and the goals of the Paris Agreement.

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the Group as a whole, these being turnover, gross margin and operating profit. The AE Yates consolidated turnover was £100m (2024: £66m), an undoubted success, particularly given the current economic climate. We anticipate a turnover of £100m for 2026. Group gross margin declined at 13% (2024: 18.7% as restated). Profit before tax was £1,994,266 (1.9%) (2024: £2,166,560 /​ 3.3%). We are satisfied with the overall result but ever mindful of keeping our focus for the coming years activities. Group cash/​bank balances were £8.6m (2024: £6.5m).

Our business continuity plans are well advanced to operate successfully in the continuing economic climate.

The main impactors on our business remain the same, being the uncertainties of the general global economic outlook on the industry.

Financial risk management objectives and policies

The company does not operate specific policies to manage its financial risk as the directors consider such information immaterial to the assessment of the company's assets, liabilities, financial position or profit and loss of the company.

There are no immediate plans to acquire businesses other than to continue to improve our market share within the Industrial/​Commercial/​Developer and Power and Energy markets. We have put together an experienced team to grow our existing success in the renewables industries and also the industrial/​commercial markets. At the very least we hope to maintain turnover and margins in the next financial year. As at the date of this report the current order book remains very encouraging.

Environmental impact

We understand the important role we play in protecting the natural environment of the areas in which we work, social and environmental sustainability are intrinsically linked and our strategies reflect that. Our aim is to continually improve in all areas of our environmental performance. Utilising impact assessments we have assessed a wide range of environmental categories like energy efficiency, water usage, materials selection, and ecological impact. Across our projects this year we have successfully delivered against our social value and sustainability targets. By monitoring our progress towards achievement of these objectives and targets, we can identify and prioritise areas for continued improvement.

We have the ambitious target of achieving Carbon Net Zero in Scopes 1 and 2 by 2030 and have published our Carbon Reduction Plan on our website annually since its development in 2021. We are developing our Science Based Targets, with verification by the Science Based Targets Initiative expected in early 2025.

By implementing the latest sustainable construction methods and exploring the latest innovations we are aiming at further minimising the environmental impacts of our operations. Long term sustainability has been at the heart of our delivery for many years and we remain committed to our Environmental, Social and Governance (ESG) targets.

Our stakeholders - Employee Owned Trust

A E Yates Limited is controlled by an Employee Ownership Trust which owns 75% of the company, giving all employees an indirect stake in the business in perpetuity. The A E Yates EOT Board of Directors entrust the management of the business to the A E Yates management board, who consult with the trustees on a regular basis about the performance and running of the business and other important operational changes to the business.

The board of directors of A E Yates consider that they have acted in a way that would be most likely to promote the success of the group for the benefit of its members as a whole in its decision making, and in doing so have considered the statutory duties as follows:

a)    likely consequence of any decision in the long term;

b)    interests of the group’s employees;

c)    need to foster the group’s business relationships with suppliers, customers and others;

d)    the impact of the group’s operations on the community and the environment;

e)    desirability of the group maintaining a reputation for high standards of business conduct; and,

f)    need to act fairly between members of the group.

From the perspective of the A E Yates Limited Board, as a result of the group’s governance structure, the matters that the group is responsible for under Section 172(1) of the Companies Act 2006 (“s172”), as above, have been considered to an appropriate extent by the board in relation to both the group and to A E Yates Limited.

On behalf of the board

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

The principal activity of the group during this and the previous year continued to be that of a civil engineering contractor engaged in public and private sector works. These largely comprise water and waste infrastructure schemes, roads, bridges, drainage, flood alleviation, environmental improvements, urban renewal schemes and steel and concrete pile installation projects.

The results for the year are set out on page 10.

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

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

A resolution to appoint AAB Audit & Accountancy Limited as auditor of the company will be proposed at the next general meeting.

Due to the commercial sensitivity of the specific disclosures to companies operating in energy intensive sectors the group has taken the exemption available from disclosing this information on the grounds that the directors consider that this would be seriously prejudicial to the interests of the group.

However, we recognise the importance of reducing our energy consumption and integrating whole life carbon into decision making. Through our carbon management system we are establishing a culture where carbon is central to all decision making. To achieve this we are creating the right culture and providing our people with the skills, knowledge and innovation that are needed. Processes are being implemented to support this and underpin good decision making.

Details of the groups environmental impact is covered within the strategic report.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of truethe fair review of the business, principle risks and uncertainties and future developments.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of A E Yates Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 August 2025 and of the group's 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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• The information given in the strategic report and the directors' 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.

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

• the parent company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the construction sector;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and health and safety legislation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions; and

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• enquiring of management as to actual and potential litigation and claims; and

• reviewing correspondence with relevant regulators.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

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

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,019,048 (2024 - £3,096,228 profit).

A E Yates Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Cranfield Road, Lostock Industrial Estate, Lostock, Bolton, BL6 4SB.

The group consists of A E Yates Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;

• Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. Investments in subsidiaries are accounted for at cost less impairment.

The consolidated financial statements incorporate those of A E Yates Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

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

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

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

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

In respect of ongoing services, turnover represents the value of work done in the year, including estimates of amounts not yet invoiced. Turnover in respect on ongoing services is recognised by reference to the stage of completion.

Amounts recoverable on contracts are assessed on a contract to contract basis and reflected in the profit and loss account as contract activity progresses - see the accounting policy on construction contracts for further details.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Property rented to a group entity is accounted for as tangible fixed assets.

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment loss or reversal of impairment loss are recognised immediately in the profit and loss account.

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

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Cost is calculated using the FIFO method.

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

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

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

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including creditors and loans from related companies, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences. Such liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The costs of short-term employee benefits are recognised as a liability and an expense.

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

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

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

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

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Profit on long term contracts is recognised in the profit or loss account based on the amount of chargeable work carried out by the end of the financial period less amounts already invoiced to the customer. A level of judgement is applied in assessing the likely overall outcome of the project.

Investment properties are measured at fair value, with the last external valuation performed in October 2014 by an independent valuer. Subsequent valuations have been based on directors’ estimates, using an open market value approach with reference to available market data for similar properties.

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

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 9 (2024 - 9).

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

The fair value of the investment property has been arrived at on the basis of a valuation carried out on 10th October 2014 by Edward Symonds LLP Chartered Surveyors, who are not connected to the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. Any change in open market value since that date is not considered material by the directors' and therefore, no change in valuation is felt necessary.

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

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

The short and long term bank borrowings are secured by way of an unlimited intercompany guarantee with all other group companies, as well as with the related companies detailed in the related party transactions note to the accounts.

The bank borrowings are also secured by first legal charges over all company owned land and buildings situated on Cranfield Road, Lostock, Bolton, as well as a debenture covering all the assets of A E Yates Limited.

Finance lease payments represent rentals payable by the company for motor vehicles and certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. Those assets held under finance leases are secured against the assets in which they relate to.

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

The deferred tax liability set out above is expected to reverse in future years and relates to accelerated capital allowances that are expected to mature over the same period.

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

The company has an Enterprise Management Incentive (EMI) scheme. The scheme gives employees the grant of an option to acquire Ordinary shares at £155.64 per share. The maximum term of the options is 10 years from the grant date, and they are only exercisable on either the sale, the listing of the company or at the discretion of the board.

During the year, the group recognised total share-based payment expenses of £Nil (2024: £Nil).

The fair value of the share options were determined by an independent valuer, being Hurst Corporate Finance in July 2021.

All ordinary shares come attached with full voting rights and equal rights to dividends.

The group is party to unlimited cross-guarantee arrangements with associated companies in respect of overdrawn bank accounts. The aggregate overdrawn balances of the other guaranteed entities at 31 August 2025 amounted to £1.8m (2024: £3.0m).

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

The operating leases represent the lease of a unit to third parties. The lease terms end on 31 May 2027 and rentals are fixed for the remainder of the lease.

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Amounts contracted for but not provided in the financial statements:

The company has taken advantage of the exemption from disclosure of eliminated fellow group member transactions.

Members of the Trenchless Holdings Limited group, A E Yates Directional Drilling Limited, Combined Soil Stabilisation Limited, Side Grip Piling Limited and Tritech Ground Engineering Limited are related by virtue of the fact they have common key management personnel who exercise significant influence over the entities.

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

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

The balances due to and from related parties represent the total of trading balances as well as any intercompany current accounts. All such balances are interest free and repayable on demand.

The company's bankers hold an intercompany guarantee between all group companies as well as other related parties being Combined Soil Stabilisation Limited, Tritech Ground Engineering Ltd, Trenchless Holdings Limited, A E Yates Trenchless Solutions Limited, A E Yates Trenchless Plant Limited, Side Grip Piling Limited and A E Yates Directional Drilling Ltd.

The company, and therefore the group, is under the control of an Employee Ownership Trust, A E Yates (EOT) Limited, which holds the majority of the issued share capital in trust for the benefit of the employees.