The director presents the strategic report for the year ended 31 January 2026.

The Group operates predominantly as a partnership housebuilder delivering high-quality homes for registered providers across the North West and Yorkshire. Working with property agents and land partners, the business sources development sites typically ranging from 20 to 250 homes across both greenfield and brownfield locations in areas where its partners operate. This approach helps ensure developments are aligned with the housing needs of local communities.

Controlled and managed growth, alongside careful monitoring of profitability and margins, remains the focus of the company’s medium-term strategy. This is supported by an agile organisational structure which enables efficient decision-making and project delivery.

The director considers that the Group has performed well during the year, continuing to strengthen its position within the sector.

The Group has built on the strong performance of previous years, achieving revenue growth of 20.32%. Gross profit increased to £15.72m (FY25: £10.87m) representing an increase of 44.62% year on year.

The underlying performance of all active contracts remains in line with projections made during the prior financial year.

During the year the Group completed 270 Equivalent Units (EU), representing an increase of 29 units (12%) compared to the previous year.

It also generated £1.39m (2025: £1.32m) of rental income from various property investments throughout the North of England. Breck Holdings Limited continues to manage group activity through Breck Homes Limited and Breck Developments Limited.

Financial Position and Cash Flow

The director considers that the Group maintained a strong financial position throughout the year, supported by continued profitability and effective working capital management.

Cash flow from operations remained robust, reflecting the Group’s disciplined approach to project delivery and cost control. The Group continues to monitor cash flows carefully to ensure sufficient liquidity is available to support ongoing developments and future land acquisitions.

Working capital requirements are closely managed, with particular attention given to the timing of land purchases, development expenditure and customer receipts. The directors remain satisfied that the Group has adequate financial resources to support its current operations and planned growth.

The Group and the company use various financial instruments including cash, trade debtors and trade creditors which arise directly from its operations. The primary purpose of these instruments is to finance the company’s operational activities.

The principal risks arising from the Group's and the company’s financial instruments are market risk, liquidity risk, interest rate risk and credit risk. The director regularly reviews policies for managing these risks, with particular attention currently given to inflationary and logistical risks arising from broader economic conditions.

Inflationary Risk

The Group and the company are exposed to potential inflationary pressures, particularly relating to construction costs. This risk is managed through mitigation measures including careful contract selection, ensuring appropriate margins are maintained, and maintaining strong relationships with the Group and company's established supply chain.

Logistical Risk

Logistical risk arises from the complexity of coordinating multiple elements required to successfully deliver development projects on time and within budget.

Market Risk

Market risk encompasses currency risk, fair value interest rate risk and price risk. The Group and the company are not materially exposed to currency risk.

Liquidity Risk

The Group and the company manage liquidity risk by ensuring sufficient financial resources are available to meet foreseeable operational and investment requirements.

Interest Rate Risk

The Group and the company finance their operations primarily through retained profits, with external financing used selectively where suitable growth opportunities arise.

Credit Risk
The Group and the company's principal financial assets are cash and trade debtors which also include retentions. The credit risk associated with the cash is limited, the material trade debtors with customers in which the business has a strong and sustained relationship, with an effective team to ensure this risk of issues in respect of work completed would be a very unusual occurrence.

Staffing Risk
The Group and the company are dependent on skilled individuals being available in the market place to facilitate the meeting of demand. The Group and the company seek to mitigate this risk through ensuring retention of staff is high and recruiting high quality individuals to ensure the highest quality of standards are inherent within the business.

Key performance indicators

The director monitors a range of financial and operational metrics to assess business performance and ensure that strategic objectives are being achieved.

Key performance indicators (Continued)

Revenue growth and profitability are key indicators used by the director to assess the financial strength of the company and the sustainability of its growth strategy.

The Group and the company recognise the importance of responsible development and aims to operate in a manner that considers environmental, social and governance factors.

Development projects are designed to comply with current building regulations and energy efficiency standards. The Group and the company work with professional consultants and contractors to ensure developments meet applicable environmental requirements while delivering high-quality homes.

The Group and the company places strong emphasis on maintaining positive relationships with its supply chain, registered provider partners and local communities where developments are delivered.

Our People

Employees are central to the Group's and the company’s continued success. The director recognises the importance of attracting, developing and retaining talented individuals who share the company’s values and commitment to delivering high-quality developments.

Land and Development Pipeline

Maintaining a strong land pipeline is central to the Group's strategy of controlled growth.

At the year end, the company had a development pipeline of over 1,500 homes progressing through the planning system across multiple sites in the North of England.

Future Business Developments

The Group’s strategy remains focused on controlled and sustainable growth.

During the year land was acquired and contracts were signed for new developments in Yorkshire, expanding the Group’s geographical presence across the North of England.

A new regional office was opened in October 2025 following its freehold purchase and refurbishment. The Group’s first development site in Yorkshire commenced during the year and will deliver 53 new homes in Bradford.

Two new Regional Managing Directors have been appointed to lead the Preston and Leeds offices.

The Group remains active in sourcing new commercial investment properties and is targeting further growth within this area of the business.

The director believes that this Strategic Report provides a fair and balanced review of the company’s development and performance during the year and its position at the year end.

As a Board, we have a duty to promote the success of the Group and Company for the benefit of our members. In doing so, we must have regard to the interests of our employees, the success of our relationships with suppliers and customers and the impact of our operations on the environment, among other things.

The Board focuses on long term business decision making to ensure stable business. This drives prudent decision making and conservative cash flow management within the business. The Board of Directors actively engages with the stakeholders such as employees, customers, suppliers and the community of the business to forge positive and collaborative relationships.

Annual reviews of the business are approved by the board of a four-year strategic plan and monitors its implementation throughout the year. The Director’s consider the long-term consequences of the plan and the businesses strategic priorities over the short and medium term. Resilience of the business is of the upmost importance along with ensuring the businesses values and ethics are incorporated in all decision making, to ensure the reputation of the business is at a high standard and quality.

The priority is to ensure that Directors have acted both individually and collectively in the way they consider, in good faith, would be most likely to promote the success of the business for all stakeholders and to the matters set out in paragraphs a-f of section 172 of the Companies Act 2006 (s172).

The business prides itself on social value. We actively promote the opportunities for apprentices as well as contributing to the communities around us through financial contributions as well as contributions that make a difference in other ways such as sponsorship of awards to recognise those who carelessly put themselves before others and charities that make lasting memories for families at times of need.

Our employees are our biggest asset and fundamental to the success of the business. Through our diversity, equality and inclusion policies, the business seeks to ensure that every employee is aware of their responsibilities and without exception, is treated equally and fairly.

Investing in our employees is of paramount importance to us to assist with enabling them to develop further and progress within their careers, as well as the well-being of our employees.

Engaging with our sub-contractors who work on site in a positive and active way is a key part of what we do. Management teams will regularly visit sites to engage with the sub-contractors and provide a communication channel that is approachable and timely.

Partnerships with our customers is of high importance due to the nature of the business and maintaining long term relationships with our customers based on quality and transparency is what the business excels at. Likewise, our supply chain is also of high importance, through the selection of suppliers considering quality and sharing those same values as the business, whilst also ensuring that the process with our supply chain is fair whilst building those long-term relationships.

On behalf of the board

The director presents his annual report and financial statements for the year ended 31 January 2026.

The principal activity of the company and group continued to be that of construction of social housing in combination with commercial/industrial property investment and group management.

The results for the year are set out on page 12.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

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

The directors have carefully considered the importance of fostering strong relationships with the company’s suppliers, customers, and other key stakeholders, and the directors recognise that these relationships are crucial to the long-term success of the business, and as such take these relationships into account when making principal decisions.

In the decision-making processes of the directors, they have ensured that the company maintains fair and transparent dealings with suppliers, prioritises satisfaction of future residents, and upholds responsibilities to employees, regulators, and the wider community. These considerations have influenced our strategic direction and key business decisions to support sustainable growth and positive stakeholder engagement.

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

As the group has consumed more than 40,000 kWh in the year, it has reported on energy consumption, emissions and efficiency.

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per full time employee, the recommended ratio for the sector.

The following measures have been taken to improve energy efficiency:

• Solar panels are being incorporated into developments, in addition to Air Source Heat Pumps.

• Windows on developments are double glazed.

• LED efficient lights are installed within the head office.

• An air source heat hump is installed within the head office for heating.

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

Company law requires the director to prepare financial statements for each financial year. Under that law, the director has prepared the group and parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and parent company, and of the profit or loss of the group for that period.

In preparing these financial statements, the director is required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable United Kingdom 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 parent company will continue in business.

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

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.

We have audited the financial statements of Breck Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2026 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 January 2026 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 director with respect to going concern are described in the relevant sections of this report.

Other information

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

We have nothing to report in this regard.

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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the director's report have been prepared in accordance with applicable legal requirements.

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 director's report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept 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 director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the group's and 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 director either intends to liquidate the group or parent company or to cease operations, or has 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• 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 previous knowledge and experience of the client and businesses in similar sectors;

• 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 group, including legislation such as the Companies Act 2006, taxation legislation, data protection, employment, and health and safety legislation;

• we assessed the extent of compliance with the laws and regulations identified through making enquiries of management and inspecting any available legal correspondence; and

• the audit team were in regular communication in relation to laws and regulations and potential instances of non-compliance throughout the audit.

We assessed the susceptibility of the group'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.

We assessed the susceptibility of the group'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;

• reviewed construction work in progress (WIP) and management's estimates and judgements to confirm their reasonability;

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

• investigated the rationale behind significant or unusual transactions; and

• performed walkthrough tests on major transaction cycles.

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;

• reviewing legal and professional expenses for potential ongoing litigation work; and

• reviewing correspondence with HMRC and other professional advisors.

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.

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 loss for the year was £629,649 (2025 - £1,907,200 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Breck Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 20 Sceptre Court, Bamber Bridge, Preston, PR5 6AW.

The group consists of Breck Holdings 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. The principal accounting policies adopted are set out below.

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

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

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; 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. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

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

The consolidated group financial statements consist of the financial statements of the parent company Breck Holdings Limited together with all entities controlled by the parent company (its subsidiaries). The parent company has no other investments, including investments in joint ventures and associates.

All financial statements are made up to 31 January 2026. 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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

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

Revenue from contracts for the construction of housing is recognised on the basis of the valuation of the work completed as agreed between quantity surveyors representing the group and the receiver of such services, less any revenue previously recognised as part of the contract, trade settlement discounts and any sales related taxes that are applicable. The valuation of the work completed is based off of the stage of completion in combination with the costs incurred as a proportion of the costs to complete the project where this can be reliably estimated.

Revenue from the lettings of property is recognised on an accruals basis over the period in which the letting relates to less any trade settlement discounts and any sales related taxes that are applicable, with lettings that are not coterminous being accrued or deferred to the relevant period.

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.

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

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:

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.

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

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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.

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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 based on valuations of work performed expressed as a percentage of the total contract value. These valuations reflect the value of work certified or otherwise assessed as completed at the reporting date relative to total expected contract revenue. 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 and deposits held at call with banks.

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 including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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

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

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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, bank loans and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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

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 and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

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

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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.

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

When the group acts as a lessor, a lease is classified as a finance lease whenever it transfers substantially all the risks and rewards of ownership of the underlying asset to the lessee, either at the end of the lease term or for the major part of the economic life of the asset. All other leases are classified as operating leases. If an arrangement contains both lease and non-lease components, the group allocates the consideration in the contract to the two elements.

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.

In the application of the group’s accounting policies, the director is 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.

In preparing these financial statements, the directors have had to make the following judgements:

Determining the valuation of work performed, costs to complete and margins as part of the long term contract accounting requires assumptions and estimates to be made. These assumptions affect the reported amounts of assets and liabilities at the date of the financial statements, and the related amount of revenue and expenses. The directors review these assumptions and estimates on an ongoing basis using currently available information. Changes in facts and circumstances may result in revised estimates and actual results could materially differ to those estimates.

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.

The company measures investment property at fair value, with changes recognised in profit or loss. The valuation is based on market conditions at the reporting date and incorporates assumptions including rental yields, occupancy rates and comparable market transactions. A change in the assumptions may result in material adjustment to the carrying value.

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 1 (2024 :1).

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:

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

More information on impairment movements in the year is given in note 11.

Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:

Investment property comprises properties held for rental. The fair value of the investment properties has been valued at 31 January 2026 by James Andrew Garnett in his capacity as director. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

Details of the company's subsidiaries at 31 January 2026 are as follows:

Registered office addresses (all UK unless otherwise indicated):

Included within Work In Progress is land stock amounting to £8,349,636 (2025 - £2,884,636).

Included within trade debtors are retentions which represent amounts withheld from payment until the contracted project is completed to a satisfactory standard within an agreed time period.

Obligations under finance leases of £NIL (2024: £24,833) are secured on the assets to which they relate.

All bank borrowings relate to two mortgages from Lloyds Bank PLC, and are secured by an unlimited debenture dated 16th April 2020 incorporating a fixed and floating charge in addition to a 1st legal charge over three commercial properties held within the company.

The company has a capital drawdown facility with Lloyds Bank Plc, allowing a revolving credit facility of £2,000,000 which the company has drawn down upon. The facility secured by a fixed and floating charge over the assets of the group, albeit with a negative pledge.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 2 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

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 periods and relates to accelerated capital allowances that are expected to mature within the same period.

Deferred income arises where land is sold as part of a linked arrangement with construction contracts and the company retains ongoing performance obligations. Amounts received are deferred and recognised as revenue over time based on stage of completion.

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 balance on the profit and loss reserves comprises of net profits retained in the group attributable to the owners of the parent company, after the payment of equity dividends.

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:

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: