The directors present the strategic report for year ended 31 October 2025.
The directors are pleased to report that the group has delivered a strong financial performance in the year, marking its first full year operating as an employee ownership trust (EOT), with turnover of £55.3m (2024: £45.6m). The dominant group activity was construction, at £54.4m (2024: £45.2m). Property rental income was £0.38m (2024: £0.37m). The residential homes business generated £0.62m income (2024: nil).
Operating profit for the year ended 31 October 2025 was £1.87m at 3.4% (2024: £0.50m at 1.1%) due to increased margins in the construction business.
At the year end, the movement in the market value on the managed investment portfolio gave an unrealised gain of £0.13m (2024: £0.56m), with a market value of £1.80m (2024: £1.14m). During the year, an additional £0.5m was invested into the portfolio.
The fair value loss on our property portfolio was £0.2m (2024: £0.465m).
Group net profit before tax was £2.03m (2024: £1.09m). Construction profits were £2.02m (2024: £1.72m). Operating profit from property rental were £0.13m (2024: £0.32m). The residential homes business showed a combined loss of £0.02m (2024: £1.2m loss).
At the year end, the group’s net assets remained robust at £10.9m (2024: £12.7m), underpinned by strong cash reserves and a continued disciplined approach to delivery. Profit and loss reserves were £10.2m (2024: £12.2m).
Cash and current investments at the year-end were £12.6m (2024: £13.3m). Current assets exceeded current liabilities by £7m (2024: £8.8m).
The group generated a £3.38m cash inflow from operations during the year, through profitable trading and keen working capital management.
Gearing still remains low and our balance sheet strong.
The directors are focused on continuing the policy to procure work where possible via negotiated and partnered activity. This strategy has served the company well to date and further framework opportunities will continue to be actively pursued as the preferred method of obtaining turnover. Design and build continued to be the main means of procurement within the frameworks in which we operate. The directors are ensuring that the management of this type of work is appropriately resourced. Any increases in turnover will always be managed to the standards expected both by clients and ourselves.
The focus for investment property is still to review the remaining portfolio, with a view to maximising its returns in this difficult market. The residential homes business is completing the sales of its remaining site.
The directors having reviewed the strategy, are now completing the final stages of consolidation and realigning the business resources to the profitable and cash generating construction business. The group has no plans to take on any external debt in the medium term.
We are proud how we have settled into our new EO Business and continue with our focus on operational excellence. Delivering year-on-year increased profits through sustainable and controlled strategy. A year full of great project completions and wins alongside our strong cash reserves confirms our stability to our Clients, Sub-Contractors and Lenders. Our focus for the coming year is to grow sustainably, managing risk, selecting the right projects, strengthening our team structure; expanding in key areas of operations and delivery capacity, commercial and business development, whilst strengthening our team to help deliver our strategic vision. This underpins our growth plan for larger and more diverse projects, giving the business strong visibility over the coming years ahead.
Operating as an employee-owned business, Conlon champions a people-first, values-led culture focussed on long term success for its clients, supply chain and employees.
Principal Risks and Uncertainties
The on-going War in Ukraine and unrest in the Middle East continues to affect materials, labour and energy. We are very aware of the impacts that this is having on our business and our stakeholders. We are committed to protecting our business operations and minimising risks wherever possible.
The Group embodies a risk aware strategy approach to all its activities in order to deliver a strong financial performance, enabling us to strengthen our strategic path and long-term sustainability of the business.
Construction risk
Risks are managed from initial enquiry onward via careful stage-by-stage review, re-appraisal and control, covering estimating, tender review, contract delivery and customer care.
Investment property risk
Risks in this sector include tenant covenants, the trend towards shorter lease periods and the availability of suitable funding, if required. The directors seek to mitigate these risks in conjunction with professional agents.
Residential homes risk
Our strategy is to complete the sales of the residential homes at the current market values at our final site.
Modern slavery
The company is aware of its obligations under the Modern Slavery Act and has reviewed and updated the Modern Slavery and Whistleblowing policies. These are publicised on our website - www.conlon-construction.co.uk - in offices and on sites to raise awareness amongst employees, supply chain members, clients and visitors.
Financial Key Performance Indicators are outlined in the ‘Review of the Business’ section above. They include Net Profit Before Tax and Net Current Assets.
Non-Financial Key Performance Indicators are measured on an annual basis via a “Customer Satisfaction - Analysis of Performance Questionnaire”. This process forms part of our ISO 9001:2015 accredited management system. Clients and/or End Users are asked to score the Conlon Construction business on 18 indicators, including Customer Satisfaction with the Product, Service, the Time it has taken to complete the works, Communication, Environment, Health & Safety, Project Team staff and After Care service. In the 2024/25 year, the business achieved an average score of 9.4 out of 10 compared to an industry average score of 8 out of 10. Any scores or client feedback that require improvement feature as agenda items at our regular Business Improvement days. As a result, we are continuously improving our performance and service.
The company bids selectively for a large number of contracts between £500k and £20m. Each potential project is carefully appraised by senior commercial staff in accordance with our Quality Management Systems. Projects are assessed for risk, particularly in terms of design, buildability and programme; as well as checks on both client and supply chain credit ratings, as appropriate. Projects are taken through to a detailed estimate stage and are then placed before our tender review panel prior to final submission.
Delivery
Project delivery is managed through the infrastructure of Construction Operations. Each project is managed using approved procedures including regular and frequent reviews of build progress, cost control, supply chain management and client satisfaction, against a background of rigorous health and safety and environmental compliance. Any issues affecting project delivery are continuously monitored so that any operational or commercial matters can be addressed in a timely and efficient manner.
This statement by the Board of Directors describes how they have approached the responsibilities under s172(1)(a) to (f) of the Companies Act 2006 in the financial year ending 31st October 2025. The Board considers that they have acted in good faith to promote the success of the group on behalf of its stakeholders who consist of; employees, clients and the supply chain.
The Board monitors and reviews the strategic objectives against forward plans. Regular reviews are held across key business areas, including; health, safety & the environment, operational and financial performance, risks and opportunities. The group's performance is reviewed on a monthly basis.
The overriding principle in the governance of Conlon Holdings Limited is that of ensuring transparent conduct which reflects fairness in all dealings with employees, clients and the supply chain. A testament to this, is reflected in the length of service of our employees and senior management team.
The group has an Equal Opportunities and Diversity Policy relating to all aspects of employment. Employees are kept informed of matters of concern to them in a variety of ways, including business improvement days, newsletters, Employee Forum meetings and regular communications to staff. The aim of these communications is to ensure a high level of awareness among employees regarding the performance of the business.
The Board’s aim is to forge lasting business relationships with its stakeholders by conducting the business with honesty, integrity and professionalism.
The Board takes environmental matters into consideration as part of its decision-making process, in order to minimise the group's impact on the environment wherever possible. By communicating our aims to employees and our supply chain, we ensure that all parties are aware of their environmental responsibilities.
The Board’s intentions are to behave responsibly towards all stakeholders and to treat them fairly and equally, to ensure they all benefit from the long-term success of the group.
The directors have overall responsibility for determining the group's purpose, values and strategy and for ensuring high standards of governance. The primary aim of the directors is to promote the long-term sustainable success of the group, generating value for stakeholders. Throughout the next financial year, the directors will continue to review and challenge how the group can improve engagement with all stakeholders.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 October 2025.
The results for the year are set out on page 13.
No ordinary dividends were paid.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group and company finances its operations through a mixture of retained profits and where necessary to fund expansion or capital expenditure programmes, through bank borrowings.
The directors' objectives are to:
Retain sufficient liquid funds to enable the group to meet its day to day obligations as they fall due whilst maximising returns on surplus funds;
Minimise the group's exposure to fluctuating interest rates when seeking new borrowings; and
Match the repayment schedule of any external borrowings or overdrafts with the expected future cash flows expected to arise from the group's trading activities.
Hedge accounting is not used by the group.
Where appropriate funds are invested in short term variable rate deposit bank accounts, as well as instant access call accounts. The directors believe that this gives them the flexibility to release cash resources at short notice and also allows them to take advantage of changing conditions in the finance markets as they arise. All deposits are with UK institutions.
The auditor, MHA, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
All emissions occur in the 'UK and Offshore' area. We have calculated the carbon emissions and kWh figures using the UK Government’s 2025 Conversion Factors for Company Reporting. These can be found here: https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2025 .
Emissions have been reported and recorded in accordance with the published reporting standard for carbon Reduction Plans and the GHG Reporting Protocol corporate standard and uses the appropriate Government emission conversion factors for greenhouse Gas Company reporting.
No estimates were made within our calculations, as a result of missing energy documentation or any other factor. The comparative balances omitted location based electricity purchased under Scope 2 - indirect emissions within the prior year financial statements, this has been remedied above. All emissions are solely 'UK and offshore' based.
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £1m turnover, the recommended ratio for the sector. The total gross emissions in metric tonnes have been divided by the group's turnover for the relevant year. Group turnover can be found in the group statement of comprehensive income, on page 13.
Conlon remains committed to reducing carbon emissions as part of our Carbon Reduction Strategy. Emissions from our transport account for a large proportion of our carbon footprint. Improving their performance in this area is important in helping achieve their targeted emissions reduction levels over the coming years. Our sustainable transport policy has ensured that the fleet has reduced in number and employee-owned vehicles used for business purposes are either hybrid, plug in hybrid or battery electric and as a consequence Scope 1 emissions have continued to reduce.
Our Carbon Reduction Plan sets out our commitment to halving emissions by 2030 and achieving Net Zero emissions by 2050 as part our approach to decarbonisation. Our commitment is made independently in line with a 1.5°C limit to global warming and to delivering Net Zero within our own operations (Scope 1 and Scope 2) emissions earlier than 2050. We are committed to achieving Net Zero within our supply chain (Scope 3 emissions) by 2050. Conlon now works collaboratively with all its clients to decarbonise their buildings helping achieve their Net Zero ambitions. We are now designing for disassembly to reduce embodied carbon in construction and at the end of life.
The following environmental management measures and future projects have been in action during the financial year under report, as part of a wider set of actions implemented since the 2020/21 baseline. The carbon emission reduction achieved will be measured and the effects published upon completion of each project.
Targets achieved during the year ended 31 October 2025
Continue our commitment with the Woodland Trust, the UK’s largest woodland conservation charity helping increase urban tree cover, planting trees outside of woodlands, restoring and protecting existing woodlands. Achieve a minimum offset of 25t of carbon on a new build project and a minimum of 10t on a refurbishment project.
Minimise waste to landfill - Construction waste <12T/£100k revenue and 96% of all site waste to be diverted from landfill.
Support the local pound - 50% of the Supply Chain for each project to be based within 30 miles of any project.
In the future we will look at further measures as below;
Develop our project carbon footprint capabilities.
Educating our Supply Chain to understand, manage and reduce carbon emissions.
Promote the use of alternative materials such as low carbon concrete and recycled steel.
The group has chosen in accordance with section 414C(1) Companies Act 2006 to set out in the group's Strategic Report information required by Large and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch 7 to be contained in the Directors' Report. It has done so in respect of future developments, principal risks and uncertainties, and the board's statement of responsibilities under s172.
We have audited the financial statements of Conlon Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:
Enquiries with management about any known or suspected instances of non-compliance with laws and regulations, or instances of fraud;
Examination of journal entries and other adjustments to test for appropriateness and identify any instances of management override of controls, including with regard to performance related remuneration;
Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to profit recognition in respect of construction contracts and residential development carrying values;
Auditing the risk of fraud and management override of revenue by incorporating data analytics into our sampling of source entries and testing specific transactions to determine the completeness of revenue;
Review of purchase occurrence and checks that costs have been allocated to the correct construction contracts or developments; and
Review of legal and professional expenditure to identify any evidence of ongoing litigation or enquiries.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities 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 company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The group statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
As permitted by s408 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 £50,000 (2024: profit £1,556,000).
Conlon Holdings Limited (“the Company”) is a limited company domiciled and incorporated in England and Wales. The registered office is Charnley Fold Lane, Bamber Bridge, Preston, PR5 6BE.
The group consists of Conlon 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 £'000.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 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:
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Conlon Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 October 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Looking ahead, the group has built a strong forward pipeline. Current live schemes include Firwood Primary School in Bolton, a new SEND sixth form facility, alongside recently awarded Department for Education (DfE) projects. This forward order book provides a clear platform for continued revenue and profit growth through FY26, FY27 and beyond. Additional framework success includes appointments to the Procure Partnerships Framework in the North West and the South West Wales Regional Contractors Framework, further strengthening Conlon’s position across key public sector delivery routes.
Hence, at the time of approving the financial statements and after making reference to financial projections, the directors are confident that the group and company have adequate cash resources to continue in operational existence for the foreseeable future, meeting all liabilities as they fall due for payment. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover comprises the value of work performed, goods sold and services provided excluding Value Added Tax.
Property rental income represents the value of all rental income during the period. Such income is recognised at the point at which the group has fulfilled its contractual obligations to its tenants.
Residential developments represents the fair value of consideration received or receivable in the normal course of the business. The fair value of the consideration takes into account discounts. Residential developments turnover is recognised when the significant risks and rewards have been transferred to the purchaser, which is at legal completion.
Amounts in respect of contracts included in turnover, net of payments received on account, are shown in debtors as gross amounts due from contract customers. Cash received in excess of the value of work done is shown in creditors as payments on account.
An appropriate proportion of the anticipated contract profit is recognised in the profit and loss account based on the stage of completion of the work and the expected end of life outcome. Provision is made for anticipated contract losses as soon as they are foreseen.
All other operating income is recognised only when the group becomes eligible to recognise it, namely when due service has been delivered or upon cash receipt.
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.
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 and associates 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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
All other group equity investments are initially stated at cost, less any impairment in value. This is due to the equity instruments in question not being publically traded and as a consequence whose fair value cannot be reliably measured.
At each reporting end date, the group reviews the carrying amounts of its tangible 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 group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
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.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, 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.
All of the group's financial liabilities are basic financial instruments.
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements and areas of estimation uncertainty have had the most significant effect on amounts recognised in the financial statements.
The narrative within the accounting policies relating to tangible fixed assets and investment properties, along with notes 10 and 11 to the financial statements provide further information in this area. The group engage the services of a suitably qualified external Surveyor to offer a considered opinion as to the valuation of relevant assets. The directors consider that this reduces the estimation uncertainty to an acceptable level.
This is a natural area of estimation uncertainty given the industry in which the group operates. The narrative within notes 1.5 and 1.11 to the financial statements provides further information.
The group uses suitably qualified Quantity Surveyors to assess the level of work done by reference to overall expected costs, associated revenue and thus profit recognition. These assessments are then reviewed by the group's finance team, providing an additional level of internal assurance that reduces the estimation uncertainty to an appropriate level.
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.
At each balance sheet date, management undertake a review of the outstanding trade debtor balances and estimate the balance that should either be impaired or provided against.
This calculation is based on the financial position of the customers, the historical speed of payment and any ongoing discussions.
An analysis of the group's turnover is as follows:
The average monthly number of persons (including directors) employed by the group during the year was:
Their aggregate remuneration comprised:
The number of directors who accrued retirement benefits under defined contribution schemes during the year amounted to 5 (2024 - 5).
The number of directors for whom retirement benefits are accruing at the year end under defined contribution schemes amounted to 4 (2024 - 5).
The remuneration for group key management personnel, who are also the directors, is detailed above.
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:
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
Included in freehold land and buildings is land valued at £140,000 (2024: £140,000) which is not depreciated.
Land and buildings with a carrying amount of £875,000 (2024: £712,000) were revalued at 31 October 2025 by Parker and Company Chartered Surveyors, independent valuers not connected with the group or company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions
If revalued assets were stated on an historical cost basis rather than at valuation, the total amounts included would have been as follows:
A valuation of all properties was carried out on 31 October 2025 by Parker and Company Chartered Surveyors, independent valuers not connected with the group or company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions.
Details of the company's subsidiaries at 31 October 2025 are as follows:
In December 2024 the company's indirect dormant subsidiary, CLL (Whinney Lane) Limited was dissolved via a voluntary strike off.
In January 2026 the company's indirect subsidiary, CLL (Hollins Lane) Limited was dissolved via a voluntary strike off.
In January 2026 the company's direct subsidiary, Architectural Glazing & Facades Limited was dissolved via a voluntary strike off.
The company and group also holds associate investments of £Nil (2024: £150). The associates are accounted for using the equity accounting method for the purposes of the financial statements.
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
The deferred tax liability set out above is not expected to materially reverse over the upcoming 12 months.
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.
Outstanding contributions of £37,000 (2024: £52,000) at the year end are included within creditors falling due within one year.