Company registration number 07669498 (England and Wales)
R&R MORCOM HOLDINGS LIMITED
GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
R&R MORCOM HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr R J Morcom
Mrs R M Morcom
Company number
07669498
Registered office
9 Tregarne Terrace
St Austell
Cornwall
PL25 4DD
Auditor
Phillips Frith LLP
9 Tregarne Terrace
St Austell
Cornwall
PL25 4DD
R&R MORCOM HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Independent auditor's report
3 - 5
Consolidated statement of income and retained earnings
6
Consolidated statement of financial position
7
Company statement of financial position
8
Consolidated statement of cash flows
9
Notes to the financial statements
10 - 23
R&R MORCOM HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

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

Fair review of the business

Turnover in the group w as maintained as planned in 2025 and we were pleased to see that the second half of the year was better than the first half for our trading company, Morcom Construction Limited. The difficult first half of the year was primarily attributable to a large contract that the company had been engaged on for several years. The project was adversely affected by poor quality information, ineffective management from the client, and the need to continue operating at historic contract rates which were no longer commercially viable.

The trading company received a steady flow of tender enquiries throughout the year and focused on selectively targeting projects that aligned with its objectives and resources. We were pleased to secure a number of these contracts.

The successful tenders were generally staggered by approximately two to three months before commencement, which assisted significantly with resource planning and helped maintain a consistent workflow throughout the second half of 2025, continuing into 2026.

Looking ahead to 2026, Morcom Construction Limited has several contracts in hand with others secured commencing throughout the year. We have secured sufficient work to keep the company occupied through to the second half of 2027.

Expenditure will be kept to a minimum during the year in light of the current economic climate. The company has a strong existing stock of plant and equipment sufficient to service current and anticipated contracts, and therefore there are no plans to invest in significant new plant in the near future.

The company is currently reviewing its works vans and intends to replace older vehicles with newer second-hand alternatives where appropriate, as the cost of new vehicles is considered disproportionately high at present.

Employment levels were somewhat turbulent during 2025 following the unexpected departure of several members of staff. However, the impact was mitigated through the use of subcontract labour to maintain operational capacity.

The company has continued to be successful in recruiting new apprentices, who currently represent approximately 5% of the workforce. As noted previously, it remains the intention to recruit a similar number of apprentices each year, which is expected to further strengthen the long-term future of the business.

Principal risks and uncertainties

Material prices continue to increase, placing ongoing pressure on margins across the industry. In addition, wage levels are expected to rise broadly in line with inflation, reflecting the need to remain competitive in attracting and retaining skilled staff.

The wider economic environment remains uncertain and continues to impact the construction sector. As a result, the group remains focused on maintaining tight cost control and protecting margins in order to remain competitive whilst delivering sustainable profitability.

On behalf of the board

Mrs R M Morcom
Director
11 May 2026
R&R MORCOM HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -

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

Principal activities

The principal activity of the company and group in the year under review continued to be that of building contractors.

Results and dividends

The results for the year are set out on page 6.

Ordinary dividends were paid amounting to £148,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr R J Morcom
Mrs R M Morcom
Statement of directors' responsibilities

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

Company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and parent company, and of the profit or loss of the group for that period.

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

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

- state whether applicable U nited K ingdom 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 directors are 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. They are 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.

Strategic report

The true group has chosen in accordance with Companies Act 2006, s. 414C(11) 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.

Statement of disclosure to auditor

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.

On behalf of the board
Mrs R M Morcom
Director
11 May 2026
R&R MORCOM HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF R&R MORCOM HOLDINGS LIMITED
- 3 -
Opinion

We have audited the financial statements of R&R Morcom Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the consolidated statement of income and retained earnings, the consolidated statement of financial position, the company statement of financial position, the consolidated 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 December 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- T he information given in the strategic report and the directors' r eport 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.

R&R MORCOM HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF R&R MORCOM HOLDINGS LIMITED
- 4 -
Matters on which we are required to report by exception

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 identifie d material misstatements in the strategic report or the directors' r eport.

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.

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 directors either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Overall, we consider that the group's financial statements have a low susceptibility of material misstatement as a result of fraud.

In terms of income, contracts are agreed with the customer and payments are made based on the stage of completion. By nature of the trade, contracts and payments are of significant value and therefore misappropriation would be inherently difficult. Payments to dummy suppliers or employees could occur but entity controls limit the opportunity for this.

There is the potential that stock could be stolen from sites, but there is CCTV in most cases and stock levels are not significant.

There is minimal cash handling by nature of the type of transactions and therefore any fraud from misappropriation of cash would be trivial.

The main laws and regulations of significance to the company are health and safety regulations, employment law, tax and accounting law.

Our audit work in response to the risks identified included but was not limited to:

- Enquiry of management and those charged with governance around actual and potential litigation and claims.

- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

- Reviewing legal fee invoices for any evidence of non-compliance.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Testing income and expenditure and agreeing to supporting documentation. Ensuring the company’s systems are adequate in this regard.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

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.

R&R MORCOM HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF R&R MORCOM HOLDINGS LIMITED
- 5 -

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.

Amy Sole FCA (Senior Statutory Auditor)
For and on behalf of Phillips Frith LLP
11 May 2026
Chartered Accountants
Statutory Auditor
9 Tregarne Terrace
St Austell
Cornwall
PL25 4DD
R&R MORCOM HOLDINGS LIMITED
GROUP STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 6 -
2025
2024
Notes
£
£
Revenue
3
8,499,964
11,708,519
Cost of sales
(6,489,562)
(8,960,261)
Gross profit
2,010,402
2,748,258
Administrative expenses
(1,696,045)
(1,869,235)
Other operating income
129,972
133,732
Operating profit
4
444,329
1,012,755
Investment income
7
101
-
0
Finance costs
8
(34,519)
(60,452)
Profit before taxation
409,911
952,303
Tax on profit
9
(164,499)
(242,831)
Profit for the financial year
25
245,412
709,472
Retained earnings brought forward
11,622,140
11,016,668
Dividends
(148,000)
(104,000)
Retained earnings carried forward
11,719,552
11,622,140
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
R&R MORCOM HOLDINGS LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2025
31 December 2025
- 7 -
2025
2024
Notes
£
£
£
£
Non-current assets
Intangible assets
11
7,302
7,302
Property, plant and equipment
12
2,387,325
2,580,145
Investment properties
13
8,215,189
7,264,319
10,609,816
9,851,766
Current assets
Inventories
15
489,858
60,263
Trade and other receivables
16
1,397,649
2,408,611
Cash and cash equivalents
1,142,205
1,837,747
3,029,712
4,306,621
Current liabilities
18
(1,059,448)
(1,198,475)
Net current assets
1,970,264
3,108,146
Total assets less current liabilities
12,580,080
12,959,912
Non-current liabilities
19
-
(460,742)
Provisions for liabilities
Deferred tax liability
22
859,028
875,530
(859,028)
(875,530)
Net assets
11,721,052
11,623,640
Equity
Called up share capital
24
1,000
1,000
Capital redemption reserve
500
500
Retained earnings
25
11,719,552
11,622,140
Total equity
11,721,052
11,623,640
The financial statements were approved by the board of directors and authorised for issue on 11 May 2026 and are signed on its behalf by:
11 May 2026
Mrs R M Morcom
Director
R&R MORCOM HOLDINGS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
31 December 2025
- 8 -
2025
2024
Notes
£
£
£
£
Non-current assets
Intangible assets
11
7,302
7,302
Property, plant and equipment
12
1,754,468
1,860,117
Investment property
13
8,215,189
7,264,319
Investments
14
500
500
9,977,459
9,132,238
Current assets
Inventories
15
2,000
2,000
Trade and other receivables
16
11,328
4,358
Cash and cash equivalents
461,785
1,248,902
475,113
1,255,260
Current liabilities
18
(297,819)
(281,790)
Net current assets
177,294
973,470
Total assets less current liabilities
10,154,753
10,105,708
Non-current liabilities
19
-
(406,477)
Provisions for liabilities
Deferred tax liability
22
724,020
719,587
(724,020)
(719,587)
Net assets
9,430,733
8,979,644
Equity
Called up share capital
24
1,000
1,000
Retained earnings
25
9,429,733
8,978,644
Total equity
9,430,733
8,979,644

As permitted by section 408 of the Companies Act 2006, the c ompany has not presented its own income statement and related notes. The c ompany’s profit for the year was £599,088 (2024 - £303,468 profit).

The financial statements were approved by the board of directors and authorised for issue on 11 May 2026 and are signed on its behalf by:
11 May 2026
Mrs R M Morcom
Director
Company registration number 07669498 (England and Wales)
R&R MORCOM HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 9 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,608,595
1,158,106
Interest paid
(34,519)
(60,452)
Income taxes paid
(221,610)
(61,555)
Net cash inflow from operating activities
1,352,466
1,036,099
Investing activities
Purchase of property, plant and equipment
(271,271)
(170,586)
Proceeds on disposal of property, plant and equipment
68,295
17,582
Purchase of investment property
(950,869)
(161,186)
Proceeds on disposal of investment property
-
413,454
Interest received
101
-
0
Net cash (used in)/generated from investing activities
(1,153,744)
99,264
Financing activities
Repayment of bank loans
(514,477)
514,477
Payment of finance leases obligations
(231,787)
(241,544)
Dividends paid to equity shareholders
(148,000)
(104,000)
Net cash (used in)/generated from financing activities
(894,264)
168,933
Net (decrease)/increase in cash and cash equivalents
(695,542)
1,304,296
Cash and cash equivalents at beginning of year
1,837,747
533,451
Cash and cash equivalents at end of year
1,142,205
1,837,747
R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 10 -
1
Accounting policies
Company information

R&R Morcom Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 9 Tregarne Terrace, St Austell, Cornwall, PL25 4DD. The principal place of business is Perrose, Lantyan, Milltown, Lostwithiel, Cornwall, PL22 0JJ.

The group consists of R&R Morcom Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

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 a mounts in these financial statements are rounded to the nearest £.

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 33 ‘Related Party Disclosures’: Compensation for key management personnel.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company R&R Morcom 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 December 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 g roup.

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.

1.3
Going concern

A t the time of approving the financial statements, t he directors have a reasonable expectation that the group and parent company ha ve adequate resources to continue in operational existence for the foreseeable future. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 11 -
1.4
Revenue

Turnover represents the value of work carried out during the year, excluding value added tax.

Revenue from construction contracts is recognised in accordance with FRS 102 Section 23 by reference to the stage of completion of the contract activity at the reporting date, where the outcome of the contract can be estimated reliably.

The stage of completion is assessed by reference to valuations of work performed and costs incurred to date as a percentage of total estimated contract costs.

Turnover includes variations, claims and incentive payments to the extent that they can be measured reliably and their receipt is considered probable.

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

Dividend income from investments is recognised when the shareholder's right to receive payment has been established.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets are made up of Rural Payment Agency rights which do not have a defined useful life and as such no amortisation is recognised.

1.6
Property, plant and equipment

Property, plant and equipment 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:

Freehold land and buildings
2% per annum on the straight line method
Plant and equipment
15% per annum on the reducing balance method
Computer equipment
33.3% per annum on the straight line method
Motor vehicles
25% per annum on the reducing balance method

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 income statement.

1.7
Investment properties

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 a t the reporting end date. Changes in fair value are recognised in profit or loss. Investment properties are stated at fair value based on the valuation performed by the directors, using readily available market values.

1.8
Non-current investments

I n the parent company financial statements, investments in subsidiaries, are measured at cost.

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.

1.9
Inventories

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

R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 12 -
1.10

Work in progress

Work in progress comprises direct costs incurred on properties under construction together with attributable overheads and is stated at the lower of cost and net realisable value.

Costs are transferred to cost of sales on legal completion of the related property sale.

Provision is made for any foreseeable losses where net realisable value is estimated to be lower than cost.

1.11
Construction contracts

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.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include deposits held at call with banks.

1.13
Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

1.14
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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

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.

1.15
Retirement benefits

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

1.16
Leases

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 statement of financial position 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.

R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 13 -
2
Judgements and key sources of estimation uncertainty

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.

3
Revenue
2025
2024
£
£
Revenue analysed by class of business
Construction
8,499,964
11,708,519
2025
2024
£
£
Other revenue
Interest income
101
-
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,175
8,750
Depreciation of owned property, plant and equipment
338,443
327,063
Depreciation of property, plant and equipment held under finance leases
66,748
98,035
(Profit)/loss on disposal of property, plant and equipment
(9,396)
2,758
Profit on disposal of investment property
-
0
(14,371)
5
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
74
78
0
0
R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
5
Employees
(Continued)
- 14 -

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
2,749,960
3,042,747
-
0
-
0
Social security costs
323,740
319,628
-
-
Pension costs
72,408
81,616
-
0
-
0
3,146,108
3,443,991
-
0
-
0
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
14,378
18,200
7
Investment income
2025
2024
£
£
Interest income
Interest on bank deposits
101
-
0
8
Finance costs
2025
2024
£
£
Interest on bank loans
23,530
34,118
Interest on finance leases and hire purchase contracts
10,989
26,082
Other interest
-
252
Total finance costs
34,519
60,452
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
181,001
306,961
Deferred tax
Origination and reversal of timing differences
(16,502)
(64,130)
Total tax charge
164,499
242,831
R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
9
Taxation
(Continued)
- 15 -

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:

2025
2024
£
£
Profit before taxation
409,911
952,303
Expected tax charge based on the standard rate of corporation tax in the UK of 25% (2024: 25%)
102,478
238,076
Effects of:
Expenses that are not deductible in determining taxable profit
3,278
700
Permanent capital allowances in excess of depreciation
74,985
68,185
Deferred tax adjustment
(16,242)
(64,130)
Taxation charge in the financial statements
164,499
242,831
10
Dividends
2025
2024
Recognised as distributions to equity holders:
£
£
Interim paid
148,000
104,000
11
Intangible fixed assets
Group
RPA Agency Entitlements
£
Cost
At 1 January 2025 and 31 December 2025
7,302
Amortisation and impairment
At 1 January 2025 and 31 December 2025
-
0
Carrying amount
At 31 December 2025
7,302
At 31 December 2024
7,302
R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
11
Intangible fixed assets
(Continued)
- 16 -
Company
RPA Agency Entitlements
£
Cost
At 1 January 2025 and 31 December 2025
7,302
Amortisation and impairment
At 1 January 2025 and 31 December 2025
-
0
Carrying amount
At 31 December 2025
7,302
At 31 December 2024
7,302
12
Property, plant and equipment
Group
Freehold land and buildings
Plant and equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2025
537,141
3,653,099
8,050
242,080
4,440,370
Additions
-
0
95,998
2,327
172,945
271,270
Disposals
-
0
(109,797)
-
0
(26,251)
(136,048)
Transfers
-
0
(88,546)
(457)
-
0
(89,003)
At 31 December 2025
537,141
3,550,754
9,920
388,774
4,486,589
Depreciation and impairment
At 1 January 2025
155,115
1,572,749
6,615
125,746
1,860,225
Depreciation charged in the year
15,293
319,709
1,355
68,834
405,191
Eliminated in respect of disposals
-
0
(64,843)
-
0
(12,306)
(77,149)
Transfers
-
0
(88,546)
(457)
-
0
(89,003)
At 31 December 2025
170,408
1,739,069
7,513
182,274
2,099,264
Carrying amount
At 31 December 2025
366,733
1,811,685
2,407
206,500
2,387,325
At 31 December 2024
382,026
2,080,350
1,435
116,334
2,580,145
R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
12
Property, plant and equipment
(Continued)
- 17 -
Company
Freehold land and buildings
Plant and equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2025
449,641
2,735,120
6,666
233,330
3,424,757
Additions
-
0
217,464
927
10,995
229,386
Disposals
-
0
(109,797)
-
0
(17,501)
(127,298)
At 31 December 2025
449,641
2,842,787
7,593
226,824
3,526,845
Depreciation and impairment
At 1 January 2025
135,865
1,299,059
6,158
123,558
1,564,640
Depreciation charged in the year
13,543
241,473
587
28,346
283,949
Eliminated in respect of disposals
-
0
(66,094)
-
0
(10,118)
(76,212)
At 31 December 2025
149,408
1,474,438
6,745
141,786
1,772,377
Carrying amount
At 31 December 2025
300,233
1,368,349
848
85,038
1,754,468
At 31 December 2024
313,776
1,436,061
508
109,772
1,860,117

Included within property, plant and equipment are assets held under finance leases or hire purchase contracts, as follows:

Group
Company
2025
2024
2025
2024
£
£
£
£
Plant and equipment
368,240
555,530
-
0
-
0
13
Investment property
Group
Company
2025
2025
£
£
Fair value
At 1 January 2025
7,264,320
7,264,320
Additions through external acquisition
950,869
950,869
At 31 December 2025
8,215,189
8,215,189

Investment property comprises property held for residential/agricultural rental purposes and for capital appreciation. The fair value of the investment property has been arrived at on the basis of a valuation carried out at May 2022 by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 18 -
14
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
26
-
0
-
0
500
500
Movements in non-current investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2025 and 31 December 2025
500
Carrying amount
At 31 December 2025
500
At 31 December 2024
500
15
Inventories
Group
Company
2025
2024
2025
2024
£
£
£
£
Raw materials and consumables
27,000
27,000
2,000
2,000
Work in progress
462,858
33,263
-
-
489,858
60,263
2,000
2,000
16
Trade and other receivables
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade receivables
917,608
1,806,524
6,614
-
0
Gross amounts owed by contract customers
445,068
578,318
-
0
-
0
Other receivables
47
1,003
47
91
Prepayments and accrued income
34,926
22,766
4,667
4,267
1,397,649
2,408,611
11,328
4,358
R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 19 -
17
Construction contracts
Group
Company
2025
2024
2025
2024
£
£
£
£
Contracts in progress at the reporting date
Gross amounts owed by contract customers included in debtors
445,068
578,318
-
0
-
0
Group
Company
2025
2024
2025
2024
Other construction contract balances
£
£
£
£
Retentions held by customers
779,099
1,980,474
-
-
18
Current liabilities
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans
20
-
0
108,000
-
0
108,000
Obligations under finance leases
21
54,265
231,787
-
0
-
0
Trade payables
298,472
383,556
756
288
Corporation tax payable
149,603
190,212
68,337
71,365
Other taxation and social security
87,417
93,223
-
0
-
0
Other payables
383,096
97,445
221,972
95,712
Accruals and deferred income
86,595
94,252
6,754
6,425
1,059,448
1,198,475
297,819
281,790
19
Non-current liabilities
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans
20
-
0
406,477
-
0
406,477
Obligations under finance leases
21
-
0
54,265
-
0
-
0
-
460,742
-
406,477
R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 20 -
20
Borrowings
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank loans
-
0
514,477
-
0
514,477
Payable within one year
-
0
108,000
-
0
108,000
Payable after one year
-
0
406,477
-
0
406,477

The long-term loans are secured by fixed and floating charges over the company's assets.

21
Finance lease obligations
Group
Company
2025
2024
2025
2024
Amounts due:
£
£
£
£
Current liabilities
54,265
231,787
-
0
-
0
Non-current liabilities
-
0
54,265
-
0
-
0
54,265
286,052
-
-
Group
Company
2025
2024
2025
2024
Future minimum lease payments due:
£
£
£
£
Within one year
54,265
231,787
-
0
-
0
In two to five years
-
0
54,265
-
0
-
0
54,265
286,052
-
-

Finance lease payments represent rentals payable by the company or group 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 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 21 -
22
Deferred taxation

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

Liabilities
Liabilities
2025
2024
Group
£
£
Accelerated capital allowances
526,026
542,528
Revaluations
333,002
333,002
859,028
875,530
Liabilities
Liabilities
2025
2024
Company
£
£
Accelerated capital allowances
391,018
386,585
Revaluations
333,002
333,002
724,020
719,587
Group
Company
2025
2025
Movements in the year:
£
£
Liability at 1 January 2025
875,530
719,587
(Credit)/charge to profit or loss
(16,502)
4,433
Liability at 31 December 2025
859,028
724,020

T he deferred tax liability set out above relates to accelerated capital allowances that are expected to mature and gains on disposal of investment properties, both of which will be realised in future periods.

23
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
72,408
81,616

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.

R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 22 -
24
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
25
Reserves
Group
Company
2025
2024
2025
2024
£
£
£
£
At the beginning of the year
11,622,140
11,016,668
8,978,644
8,779,176
Profit for the year
245,412
709,472
599,089
303,468
Dividends
(148,000)
(104,000)
(148,000)
(104,000)
At the end of the year
11,719,552
11,622,140
9,429,733
8,978,644
26
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Morcom Construction Limited
United Kingdom
Building Contractors
Ordinary shares
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Morcom Construction Limited
2,290,818
260,322
R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 23 -
27
Cash generated from group operations
2025
2024
£
£
Profit for the year after tax
245,412
709,472
Adjustments for:
Taxation charged
164,499
242,831
Finance costs
34,519
60,452
Investment income
(101)
-
0
(Gain)/loss on disposal of property, plant and equipment
(9,396)
2,758
Gain on disposal of investment property
-
0
(14,371)
Depreciation and impairment of property, plant and equipment
405,191
425,098
Movements in working capital:
(Increase)/decrease in inventories
(429,595)
4,433
Decrease/(increase) in trade and other receivables
1,010,962
(298,739)
Increase in trade and other payables
187,104
26,171
Cash generated from operations
1,608,595
1,158,105
28
Analysis of changes in net funds - group
1 January 2025
Cash flows
31 December 2025
£
£
£
Cash at bank and in hand
1,837,747
(695,542)
1,142,205
Borrowings excluding overdrafts
(514,477)
514,477
-
Payment of finance leases obligations
(286,052)
231,787
(54,265)
1,037,218
50,722
1,087,940
29
Non-distributable profits reserve
Group
Company
2025
2024
2025
2024
£
£
£
£
At the beginning and end of the year
1,078,926
1,078,926
1,078,926
1,078,926
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