REGISTERED NUMBER: 05399481 (England and Wales)

Strategic Report, Directors' Report and

Audited Financial Statements for the Year Ended 31 July 2025

for

Ovamill Limited

Page

Company Information

1

Strategic Report

2

Directors' Report

5

Report of the Independent Auditors

7

Statement of Income and Retained Earnings

11

Balance Sheet

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

Directors:

Mr K Betts

Mr K Bilyard

Mr J D Curran

Mrs J Ramsay

Secretary:

Mr S Williams

Registered office:

East Coast House

Galahad Road

Gorleston

Great Yarmouth

Norfolk

NR31 7RU

Registered number:

05399481 (England and Wales)

Senior statutory auditor:

Henry Pettitt FCA CTA

Auditors:

Stephenson Smart (East Anglia) Limited

Statutory Auditor

East Coast House

Galahad Road

Gorleston

Great Yarmouth

Norfolk

NR31 7RU

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

Introduction

The principal activity of the company during the year was that of groundwork, commercial, and domestic building services.

Strategy

The Company aims to increase turnover and gross margin through increased levels of activity, pricing and management. To increase net profit by containing overheads and ensuring maximum efficiency whilst maintaining good client communication and support. Overall delivering the strategy within the parameters of trading conditions in order to maintain a strong position as experts in the field.

To provide staff with above industry standard training at all levels throughout the Company, encompassing the highest levels of health and safety training to develop employees to their full potential.

Objectives

The Company will look to strengthen its reputation in the building sector through the continued provision of high levels of customer service and continue its focus to attract new contracts and customers on a local and regional basis in both the commercial and residential sectors.

Review of business

Key performance indicators of the Company are turnover, gross profit, and net profit before tax. Given the straightforward nature of the business, the Company's directors are of the opinion that further analysis of performance indicators is not necessary for the understanding of the development, performance, and position of the business.

The year ended 31 July 2025 has seen significant improvements when compared to the previous year with the Company's turnover increasing from £12,350,658 to £16,647,174 an increase of 35%. The Company continues to strive within its industry taking advantage of returning customers and good relationships with suppliers.

However, it is not immune from wider economic conditions such as the coronavirus, the Russian invasion of Ukraine, and the downward pressures of the cost of living crisis. The resulting instability impacting all working environments, global supply chains, market demands, and increases in inflation are still seen within the financial year. Throughout this period the Company has shown its resilience and adaptability in how it identifies, evaluates, and responds to significant changes in customer demands, availability of materials and price fluctuations. Considering the conditions prevalent during the year, the directors are pleased with the results of the year and are confident in the financial performance, financial position and the future outlook of the Company.

The gross profit percentage increased from 18% to 24%. The aforementioned wider economic conditions still negatively affect the worldwide economy and the availability of specific construction materials leading to significant shortages and upward price pressure. The uplift in gross profit demonstrates the Company's ability to evaluate and overcome external economic pressures by leveraging strong supplier relations to ensure the availability of materials in order to meet the increasing demand from its customers. The increase in gross profit can partially be attributed to the Company's ability and management's intentional actions to sustainably re-use materials; demonstrating their ability to generate economic benefit whilst reducing their impact on the wider environment.

The net profit before tax percentage increased from £530,924 (4%) to £1,836,682 (11%). The uplift in net profit before tax demonstrates management's effectiveness with cost control to monitor and manage expenditure, whilst enhancing profitability and ensuring financial stability within the entity.

The Company has continued to see regular enquires for new work and is satisfied with the level of upcoming projects moving forward into 2026. The work generated from returning customers instills confidence in the directors' future outlook of the Company and of the quality provided to its customers. Large projects have been delayed in the past but management believe their hands-on approach is able to adequately respond to these situations as they are identified.

The Company has retained its core staff base and relationships with subcontractors in order to be able to deliver on future projects as their industry and turnover continues to increase at a demanding rate. The Company demonstrates its trust and belief in its staff by continuing to invest into their skilled workforce.

Operationally the Company continued to set high standards for health and safety by prioritising a pro-active approach to health and safety training.

The Company continues to benefit from the previously acquired trading premises in Norwich, from which it has serviced its contracts in the area and successfully used the premises to attract new business through better pricing delivered from a closer base of operations. The acquired premise provides its customers with the flexibility and availability of a closer base of operations.

The directors have evaluated the Company's financial position including the review of post year end management information and forward looking information. The directors consider the Company has sufficient liquidity and financing arrangements to meet its obligations as they fall due for the twelve months from when the financial statements are authorised for issue.

Principal risks and uncertainties

The Company is exposed to industry risk operating within a volatile industry during challenging economic times which has, in part, been caused by significant events such as Brexit, the Russian invasion of Ukraine, political instability, inflation and cost of living crisis. These events have manifested themselves through difficulties in onsite working conditions, the supply of qualified labour, availability of construction materials, and increases in material costs.

To mitigate these risks and the volatility of such events that can affect the demand within the construction industry, management have been regularly assessing the business' resilience to change and establishing plans that act to safeguard the business against several scenarios and their impact on turnover and profit.

The Company is agile to change, has developed strong relationships with clients and suppliers, and has reinvested profits over the years to retain a robust balance sheet and strong financial performance. The Company is well positioned to manage current and future risks and capitalise on the opportunities at present and in the future.

Future outlook

The Company has implemented robust changes over the last couple of years to ensure the successful continuation of the business. The business has retained a core staff bank, invested in training and assets so that it can capitalise on an upturn in the construction industry when economic conditions improve.

On behalf of the board:

Mr S Williams - Secretary

14 April 2026

The directors present their report with the financial statements of the company for the year ended 31 July 2025.

Dividends

Dividends of £500,000 (2024 : £350,000) were paid in the year to Ovamill Group Limited.

Directors

The directors shown below have held office during the whole of the period from 1 August 2024 to the date of this report.

Mr K Betts

Mr K Bilyard

Mr J D Curran

Mrs J Ramsay

Statement of directors' responsibilities

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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

Statement as to disclosure of information to auditors

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Auditors

The auditors, Stephenson Smart (East Anglia) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:

Mr S Williams - Secretary

14 April 2026

Opinion

We have audited the financial statements of Ovamill Limited (the 'company') for the year ended 31 July 2025 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 July 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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. Our evaluation of the directors' assessment of the Company's ability to continue to adopt the going concern basis of accounting included:

-

Evaluating the directors' going concern assessment in relation to the nature of the Company and its operations, its financial performance and position;

-

Evaluating the reasonableness of factors considered in the directors' going concern assessment, including consideration of whether the Company has sufficient liquidity to meet its obligations as they fall due for twelve months from when the financial statements are authorised for issue;

-

Performing procedures to identify whether there were any risks, events or other matters that may have an impact on the Company's ability to continue as a going concern and making inquiries of senior management.

-

Evaluating the adequacy of the directors' disclosure in relation to going concern in the strategic report and notes to the financial statements and ensuring they are appropriate and conforming with the reporting standards.

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 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 where 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 Statement of Directors' Responsibilities set out on page five, 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 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.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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:

We considered, based on our knowledge of the trading environment and structure of the company, areas in which the threat of material misstatement exists concerning irregularity. Irregularities, including fraud, were considered at length throughout our audit work including as part of our communication with both, the directors, and our audit team.

We have reviewed the Company's policies in adhering to laws and regulations and identified where non compliance could materially affect the financial statements and the extent to which irregularities could impact the financial statements vary considerably.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006), the relevant direct and indirect tax compliance regulations in the United Kingdom, the Building Act 1984, Construction (Design and Management) Regulations (CDM) 2015 and Health and Safety at Work Act 1974.

We understood how the Company is complying with those frameworks by making enquiries of senior management and those responsible for legal and compliance matters for their awareness of any non-compliance with laws and regulations and to understand how the Company maintains and communicates its policies as well as through the evaluation of corroborating documentation. We also reviewed correspondence between the Company and regulatory bodies and gained an understanding of the Company's governance framework.

The Company is also subject to regulations that, in instances of non-compliance, would have a material impact on balances or disclosures within the financial statements, such as fines, penalties and interest. Areas such as employment law compliance, Health and Safety, or GDPR. The limited procedures required to be undertaken as contained within the auditing standards did not identify any areas of non-compliance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations

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 Report of the Auditors.

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 a Report of the Auditors 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.

Henry Pettitt FCA CTA Senior Statutory Auditor

for and on behalf of Stephenson Smart (East Anglia) Limited

Statutory Auditor

East Coast House

Galahad Road

Gorleston

Great Yarmouth

Norfolk

NR31 7RU

14 April 2026

Turnover

3

16,647,174

12,350,658

Cost of sales

(12,718,388

)

(10,182,302

)

Gross profit

3,928,786

2,168,356

Administrative expenses

(2,097,157

)

(1,675,327

)

1,831,629

493,029

Other operating income

4

4,660

28,283

Operating profit

1,836,289

521,312

Interest receivable and similar income

32,744

20,494

1,869,033

541,806

Interest payable and similar expenses

6

(32,351

)

(10,882

)

Profit before taxation

7

1,836,682

530,924

Tax on profit

9

(467,439

)

(35,030

)

Profit for the financial year

1,369,243

495,894

Retained earnings at beginning of year as previously reported

6,449,632

6,346,150

Dividends

10

(500,000

)

(350,000

)

Prior year adjustment - corrections of 2023 material errors

-

(42,412

)

Retained earnings at end of year

7,318,875

6,449,632

Fixed assets

Tangible assets

11

2,148,395

1,743,728

Current assets

Stocks

12

976,826

976,432

Debtors

13

5,358,652

4,139,886

Cash at bank and in hand

3,580,349

2,178,579

9,915,827

7,294,897

Creditors

Amounts falling due within one year

14

(3,821,159

)

(2,054,605

)

Net current assets

6,094,668

5,240,292

Total assets less current liabilities

8,243,063

6,984,020

Creditors

Amounts falling due after more than one year

15

(382,089

)

(106,637

)

Provisions for liabilities

17

(537,099

)

(422,751

)

Net assets

7,323,875

6,454,632

Capital and reserves

Called up share capital

18

5,000

5,000

Retained earnings

19

7,318,875

6,449,632

Shareholders' funds

7,323,875

6,454,632

The financial statements were approved by the Board of Directors and authorised for issue on 14 April 2026 and were signed on its behalf by:

Mr K Betts - Director

Mr J D Curran - Director

Mrs J Ramsay - Director

Mr K Bilyard - Director

Cash flows from operating activities

Cash generated from operations

1

2,235,370

1,597,129

Interest paid

(1,686

)

(360

)

Interest element of hire purchase payments paid

(30,665

)

(10,522

)

Tax paid

(116,313

)

406,700

Interest received

-

9,003

Net cash from operating activities

2,086,706

2,001,950

Cash flows from investing activities

Purchase of tangible fixed assets

(1,052,260

)

(295,115

)

Sale of tangible fixed assets

230,400

29,001

Interest received

32,744

20,494

Net cash from investing activities

(789,116

)

(245,620

)

Cash flows from financing activities

Loan to parent company

307,376

(359,848

)

Capital repayments in year

296,804

(97,848

)

Equity dividends paid

(500,000

)

(350,000

)

Net cash from financing activities

104,180

(807,696

)

Increase in cash and cash equivalents

1,401,770

948,634

Cash and cash equivalents at beginning of year

2

2,178,579

1,229,945

Cash and cash equivalents at end of year

2

3,580,349

2,178,579

1.	Reconciliation of profit before taxation to cash generated from operations

2025

2024

£

£

Profit before taxation

1,836,682

530,924

Depreciation charges

440,596

410,012

(Profit)/loss on disposal of fixed assets

(23,402

)

28,952

Interest received

-

(9,003

)

Finance costs

32,351

10,882

Finance income

(32,744

)

(20,494

)

2,253,483

951,273

Increase in stocks

(394

)

(63,785

)

(Increase)/decrease in trade and other debtors

(1,526,143

)

529,117

Increase in trade and other creditors

1,508,424

180,524

Cash generated from operations

2,235,370

1,597,129

2.	Cash and cash equivalents

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 July 2025

31.7.25

1.8.24

£

£

Cash and cash equivalents

3,580,349

2,178,579

Year ended 31 July 2024

31.7.24

1.8.23

£

£

Cash and cash equivalents

2,178,579

1,229,945

3.	Analysis of changes in net funds

At 1.8.24

Cash flow

At 31.7.25

£

£

£

Net cash

Cash at bank and in hand

2,178,579

1,401,770

3,580,349

2,178,579

1,401,770

3,580,349

Debt

Finance leases

(274,331

)

(296,804

)

(571,135

)

(274,331

)

(296,804

)

(571,135

)

Total

1,904,248

1,104,966

3,009,214

1.	Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.	Accounting policies

Basis of preparing the financial statements

The financial statements have been prepared on the historical cost convention.

The financial statements are prepared in pound sterling, which is the functional currency of the entity.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the application of the Company's accounting policies, which are described within this note, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The key sources of estimation uncertainty are revenue and construction contracts, deferred tax and depreciation.

Revenue and construction contracts

Turnover included the value of contracts in progress, this is recognised based on the level of completion of the contracts to ensure the revenue is recognised over the contract life. Management considers the overall expected completion stage from each contract based on available information and past performance. This is assessed on a monthly basis reviewing the project forecasts and works completed to date.

This assessment can involve management making judgements on the final outcome of each contract, including an estimation in assessing any final negotiations which are ongoing. The outcomes of these negotiations take time to complete, which is common within this industry, and a potential range of outcomes could result in material movements affecting the amounts recoverable on contract. The directors use the most recent negotiations and results of historic trends to assess the likely final account and make an informed assessment of the balances at the time of approving the financial statements.

Deferred tax

Management form expectations of future tax rates based on the review of legislation and political changes. Values of tax sensitive items are reviewed and considered together with enhanced tax reliefs obtained.

Depreciation

Management annually review the useful economic life of assets stated within the financial statements using comparative sources of information to assess the carrying value present at the balance sheet date.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax.

Construction contracts are measured through completion stage as a percentage of the contract value as the contract meets milestones and satisfies performance obligations within the contract, or as a percentage of total expected costs compared to costs to date to determine the percentage of the contract value recognised at the balance sheet date. Costs incurred for work performed to date do not include costs relating to future activity, such as for materials or prepayments.

Where the outcome of construction contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the period end.

Where the outcome of construction contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred of which are probable and will be recoverable. Contract costs are recognised as an expense in the period in which they are incurred.

Where stage of completion of construction contracts is uncertain, or difficult to ascertain, revenue will be recognised in line with costs incurred to date as a proportion of estimated costs for each contract.

When it is probable that total contract costs will exceed total contract revenue, the expected loss is expensed immediately, with a corresponding provision for an onerous contract being recognised.

Where the recoverability of an amount already recognised as contract revenue is no longer probable, the unrecoverable amount is expensed rather than recognised as an adjustment to the amount of contract revenue.

Tangible fixed assets

Tangible fixed assets are recognised at the point probable future economic benefits are identifiable to the entity and the cost of the asset can be reliably measured. The cost of the asset will include directly attributable costs to bring the asset to its present location and condition. Tangible fixed assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Impairment tests are carried out on an annual basis to identify any indicators that an asset is impaired, management review changes in uses of assets, evidence that asset performance has declined or physical evidence of obsolescence or damage. Impairment losses occur when the carrying amount of the tangible fixed asset exceeds its recoverable amount, calculated as the higher of its value in use or its fair value less costs of disposal.

Depreciation

Depreciation commences once the asset becomes available to use, it is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:-

Plant and machinery

- 20% reducing balance

Motor vehicles

- 25% reducing balance

Office equipment

- 20% reducing balance

Inventories

Inventories have been valued at the lower of cost and net realisable value. Net realisable value is calculated at the lower of cost, or selling price less costs to bring to completion. Cost includes materials, direct labour and attributable overheads.

Work in progress

Work in progress is valued at the lower of cost and net realiseable value, calculated based on actual costs to date.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets held under finance leases and hire purchase contracts are recongnised in the balance sheet as assets and liabilities as the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.

Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

Cash and cash equivalents

Cash and cash equivalents in the cash flow statement comprise of cash and cash equivalents. Cash comprises of cash in the bank, cash on hand, and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the balance sheet and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

3.

Turnover

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2025

2024

£

£

Construction contracts

16,647,174

12,350,658

16,647,174

12,350,658

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

4.	Other operating income

2025

2024

£

£

Training grants

4,660

15,000

Insurance claims receivable

-

4,280

Interest received from HMRC

-

9,003

4,660

28,283

5.	Employees and directors

2025

2024

£

£

Wages and salaries

2,284,863

2,031,246

Social security costs

216,558

186,451

Other pension costs

47,299

43,390

2,548,720

2,261,087

The average number of employees during the year was as follows:

2025

2024

Administration staff

9

9

Management staff

4

4

Operations

50

47

63

60

2025

2024

£

£

Directors' remuneration

42,801

71,967

During the year contributions of £111,203 (2024: £47,791) were paid in to the directors' pension schemes.

6.

Interest payable and similar expenses

2025

2024

£

£

HMRC interest

1,686

360

Hire purchase

30,665

10,522

32,351

10,882

7.	Profit before taxation

The profit is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

227,889

187,388

Other operating leases

82,360

71,723

Depreciation - owned assets

440,595

410,013

(Profit)/loss on disposal of fixed assets

(23,402

)

28,952

8.	Auditors' remuneration

2025

2024

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

50,415

49,105

9.

Taxation

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

353,091

112,021

Deferred tax

114,348

(76,991

)

Tax on profit

467,439

35,030