REGISTERED NUMBER: 09327179 (England and Wales)

Group Strategic Report, Report of the Director and

Consolidated Financial Statements for the Year Ended 30 September 2025

for

12 Bore Investments limited

Page

Company Information

1

Group Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

6

Consolidated Statement of Income and Retained Earnings

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTOR:

C R Caswell

REGISTERED OFFICE:

Unit 1 The Cam Centre

Wilbury Way

Hitchin

Hertfordshire

SG4 0TW

REGISTERED NUMBER:

09327179 (England and Wales)

SENIOR STATUTORY AUDITOR:

Emma Fraser FCA

AUDITORS:

Bracey's Accountants (Audit) Limited

Statutory Auditor, Chartered Accountants

Unit 1 The Cam Centre

Wilbury Way

Hitchin

Hertfordshire

SG4 0TW

The director presents his strategic report of the company and the group for the year ended 30 September 2025.

REVIEW OF BUSINESS

The director is pleased to report that 2025 has been a profitable year for the group, despite the difficult trading conditions. The challenges in 2025 included ongoing geo-political instability, pressure in the skilled labour market, ongoing regulatory compliance requirements and material price volatility. In addition to this, a number of larger commercial projects were delayed given current macro-economic pressures in the UK. Despite these challenges, the director believes that given their strong reputation within the industry, there will be more opportunities in the coming year for their highly skilled services especially as the larger projects begin to come on-stream.

Revenues decreased in the period by 27.7% compared to the previous year. This is a result of the timing of project completion in 2024. Gross profit has increased from 17.6% to 18.4% in the current year. The improvement in margin is a result of the director's commitment to controlling operational costs combined with the underlying mix of projects. Overall liquidity has also improved with the liquidity ratio at 1.44 compared to 1.27 at the end of the prior year.

In the light of the challenges faced by the group, the director has taken a number of measures to monitor and mitigate the ongoing risks presented by rising costs, skilled labour shortages and material supply chain disruption. In order to mitigate these risks, cost mitigation strategies have been introduced, which include a reduction in overheads and third party expenditure where practicable. In addition, ongoing investment in staff training and operational efficiencies have been implemented which continue to have positive impact in gross profit margins.

Given the nature of the group activities and proven resilience of the business, the director believes that these short term challenges can be managed. The group has sufficient cash reserves combined with a positive balance sheet to ensure that business continues to operate for the longer term.

The group's subsidiary company is the main trade within the group. The director has steered the subsidiary business to be that of a fully integrated solution in terms of larger projects. The business is that of a licenced asbestos removal company combined with complex asbestos remediation in high hazard environments. To support these core activities, the subsidiary has diversified into demolition and strip out support combined with other essential ancillary support.

This puts the group very much in the league to compete on larger industrial projects such as power stations, steel works, rail infrastructure, heavy industrial plants and more complex redevelopment schemes.

The director asserts that the group operates at the highest level in terms of standards and is committed to CSR and ESG initiatives. During the previous year, measurable environmental impact included:

- 96 tress funded through restoration projects

- 18 tonnes of Co2 avoided

- 0.09 tonnes of Co2 removed

- 9m2 of natural habitat restored

These outcomes (which have been independently verified) demonstrate that the group is more than just committed to sustainability, it is an active contributor to overall wellbeing.

Through the commitment to environmental impact and highest level of standards and accreditations in the industry, the business is focused on larger value projects. The group is well placed to deliver increased revenues and profitability from its highly skilled and specialist team and commitment to project efficiencies, cost mitigation and diversified offering.

PRINCIPAL RISKS AND UNCERTAINTIES

Business risks

The group operates in the highly regulated market of asbestos removal services, in which there are risks of competition from within the UK and of overseas supply combined with non compliance with industrial regulations. The group mitigates these risks and differentiates itself by focusing on innovative design, technical expertise, customer service and continual monitoring of compliance with all appropriate regulations to ensure services delivered, combined with the director's belief that the staff of all ages and skills are exemplary.

Financial risks

The group's principal financial instruments comprise bank balances, other debtors and other creditors. The main purpose of these instruments is to finance the group's operations. The nature of the financial instruments used by the group is such that their market value does not fluctuate as a result of changes in market prices. The group's approach to managing other risks applicable to the financial instruments concerned is included within the directors' report.

The group also faces wage pressure given the highly skilled workforce combined with inflationary pressures in the UK economy. The director regularly reviews salary levels to ensure that they remain competitive to attract and retain talent. In addition, rising costs are reviewed in conjunction with investments in technology to drive efficiencies and an overall review of the pricing structure for the group's services.

The group also has a robust cash management strategy to ensure that any such risks arising can be managed from existing reserves.

ON BEHALF OF THE BOARD:

C R Caswell - Director

18 May 2026

The director presents his report with the financial statements of the company and the group for the year ended 30 September 2025.

PRINCIPAL ACTIVITIES

The principal activities of the group in the year under review were those of an investment company. The company's subsidiary's principal activity, which make up the group, is that of a licenced asbestos removal company combined with complex asbestos remediation in high hazard environments.

DIVIDENDS

An interim dividend of £29,605 per share on the Ordinary A £1 shares was paid on 30 September 2025. The director recommends that no final dividend be paid on these shares.

No interim dividend was paid on the Ordinary B £1 shares. The director recommends that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 30 September 2025 will be £ 29,605 .

FUTURE DEVELOPMENTS

So far, the new financial year continues to bring significant uncertainty given the ongoing geo-political instability, global inflation and the impact of higher costs as a result of the UK government's approach to employment related taxes. This global economic turbulence does not look to be ending in the short term, especially in the light of the growing crisis in the Middle East. Looking at macro-economic trends, this has seen volatility in foreign currency rates and downward pressures on global interest rates following low economic growth. Given the underlying UK inflationary pressures, it seems likely that interest rates may remain marginally higher for longer and wage pressures not disappearing in the short term. These trends are also expected to lead to challenges to liquidity in the coming months as suppliers and customers will face their own cash flow issues. The foreign policy in the USA has already seen the implementation of trade tariffs that could lead to a trade war. Coupled with this, the new crisis in the Middle East has already had an impact on global oil prices which will filter down to factory costs. These uncertainties combined with low business and consumer confidence in the UK points to continued slow economic growth in the short term.

The UK government has pledged commitment to large infrastructure projects and defence spending has already increased. The delayed infrastructure projects are expected to come onstream in the coming months which offers large commercial opportunities to Omega.

Inflation continues to be a key risk following supply chain disruption caused geo-political events, including the new crisis in the Middle East. The group faces material price volatility and the risk of rising energy costs together with ongoing pressures from the labour market. Labour costs are also still being driven upwards given the short supply of highly skilled staff in the market as well as ongoing cost of living pressure fuelled by tax rises, domestic energy costs and sustained higher interest rates.

The director asserts that they have a strong balance sheet that is robust enough to withstand volatility. The group has substantial cash balances, net assets and is historically profitable. In addition, the director also feels the ongoing risk mitigation strategies will be adequate in dealing with any new risks that may manifest in the coming years. The group has also continued to enhance procurement strategies in order to manage short term material price volatility and access to highly skilled labour.

The director has committed to the continued delivery of the highest possible standards on all projects. This will be achieved through improved continuity of workload, resource utilisation, focus on margins through integrated services and commitment to environmental standards and sustainability.

DIRECTOR

C R Caswell held office during the whole of the period from 1 October 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director 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 elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the 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 company and the group 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;

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

C R Caswell - Director

18 May 2026

Opinion

We have audited the financial statements of 12 Bore Investments limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2025 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 matters

This is the first year the group has been subject to a statutory audit, as such, the comparative figures have not been audited.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

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

-	adequate accounting records have not been kept 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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page five, 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 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 the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

We obtained an understanding of the legal and regulatory frameworks within which the group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Financial Reporting Standard applicable in the UK and Ireland (FRS102). In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the group's ability to operate for example health and safety policies and procedures, taxation legislation and employment legislation.

In identifying and addressing the risk of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, our audit procedures performed included, but were not limited to the following: review of the financial statements and disclosures to underlying supporting documentation, obtained an understanding of laws and regulations that affect the company both directly in the financial statements and its operations, undertaking a walk through test of key controls that are in operation, review and enquiries into journal entries processed during the period under review, evaluation and consideration of areas where the potential for management bias exists, enquiries of management and key personnel, performance of analytical review and reviewing the findings of testing, review of costs, documents obtained and engaging in discussions to ensure consistency is evident in the findings documented.

Our work was directed where management applies significant judgement within the financial statements - construction contract recognition. This involves estimating the outcome of a job so as to recognise revenue in line with the stage of completion of that job (with reference to costs incurred), this requires profitability within the job to be estimated reliably and reviewed/updated regularly.

Our audit procedures to address specific risks related to construction contracts included, but were not limited to:

* Evaluating the internal controls to prevent and detect fraud and revenue recognition

* Testing the completeness and accuracy of cost estimates and other critical inputs to the percentage of completion calculation

* Reviewing management's assumptions and estimates for bias or inconsistency

* Performing detailed analytical procedures to identify unusual trends or significant variations in related costs and revenue

* Reviewing post year end activity against estimations applied at the year end

* Reviewing the outcome of the prior years projects and the accuracy of estimations applied

Our audit did not identify any instances of fraud or irregularities that materially affect the financial statements. However, due to the inherent estimation risks in long term contracts, there is an inherent risk that future results may differ from management's current estimates.

There are inherent limitations in the audit procedures described above as irregularities in relation to fraud are by nature difficult to detect as it would likely have occurred through deliberate concealment and could involve collusion and deliberate misrepresentations. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non compliance with laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Emma Fraser FCA (Senior Statutory Auditor)

for and on behalf of Bracey's Accountants (Audit) Limited

Statutory Auditor, Chartered Accountants

Unit 1 The Cam Centre

Wilbury Way

Hitchin

Hertfordshire

SG4 0TW

25 May 2026

TURNOVER

3

13,186,598

18,226,319

Cost of sales

10,761,530

15,016,000

GROSS PROFIT

2,425,068

3,210,319

Administrative expenses

2,190,395

2,596,054

OPERATING PROFIT

5

234,673

614,265

Interest receivable and similar income

6

884

729

235,557

614,994

Interest payable and similar expenses

7

154,892

52,673

PROFIT BEFORE TAXATION

80,665

562,321

Tax on profit

8

31,944

188,629

PROFIT FOR THE FINANCIAL YEAR

48,721

373,692

Retained earnings at beginning of year

1,554,421

1,265,929

Dividends

10

(29,605

)

(85,200

)

RETAINED EARNINGS FOR THE GROUP AT END OF YEAR

1,573,537

1,554,421

Profit attributable to:

Owners of the parent

48,721

373,692

FIXED ASSETS

Tangible assets

11

293,394

381,052

Investments

12

-

-

Investment property

13

227,775

227,775

521,169

608,827

CURRENT ASSETS

Stocks

14

23,691

32,039

Debtors

15

3,578,894

5,604,362

Cash at bank

255,232

211,435

3,857,817

5,847,836

CREDITORS

Amounts falling due within one year

16

2,682,780

4,613,616

NET CURRENT ASSETS

1,175,037

1,234,220

TOTAL ASSETS LESS CURRENT LIABILITIES

1,696,206

1,843,047

CREDITORS

Amounts falling due after more than one year

17

(118,928

)

(267,699

)

PROVISIONS FOR LIABILITIES

21

(3,641

)

(20,827

)

NET ASSETS

1,573,637

1,554,521

CAPITAL AND RESERVES

Called up share capital

22

100

100

Retained earnings

23

1,573,537

1,554,421

SHAREHOLDERS' FUNDS

1,573,637

1,554,521

The financial statements were approved by the director and authorised for issue on 18 May 2026 and were signed by:

C R Caswell - Director

FIXED ASSETS

Tangible assets

11

-

-

Investments

12

100

100

Investment property

13

227,775

227,775

227,875

227,875

CURRENT ASSETS

Debtors

15

223,387

261,181

Cash at bank

50,235

8,513

273,622

269,694

CREDITORS

Amounts falling due within one year

16

1,811

1,490

NET CURRENT ASSETS

271,811

268,204

TOTAL ASSETS LESS CURRENT LIABILITIES

499,686

496,079

CAPITAL AND RESERVES

Called up share capital

22

100

100

Retained earnings

23

499,586

495,979

SHAREHOLDERS' FUNDS

499,686

496,079

Company's profit for the financial year

33,212

88,217

The financial statements were approved by the director and authorised for issue on 18 May 2026 and were signed by:

C R Caswell - Director

Cash flows from operating activities

Cash generated from operations

1

344,831

52,004

Interest paid

(143,464

)

(45,673

)

Interest element of hire purchase payments paid

(11,428

)

(7,000

)

Tax paid

(82,671

)

(2,726

)

Net cash from operating activities

107,268

(3,395

)

Cash flows from investing activities

Purchase of tangible fixed assets

(45,308

)

(27,880

)

Sale of tangible fixed assets

-

8,745

Interest received

884

729

Net cash from investing activities

(44,424

)

(18,406

)

Cash flows from financing activities

Capital repayments in year

10,558

169,018

Equity dividends paid

(29,605

)

(85,200

)

Net cash from financing activities

(19,047

)

83,818

Increase in cash and cash equivalents

43,797

62,017

Cash and cash equivalents at beginning of year

2

211,435

149,418

Cash and cash equivalents at end of year

2

255,232

211,435

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

80,665

562,321

Depreciation charges

47,217

31,002

Profit on disposal of fixed assets

-

(1,549

)

Finance costs

154,892

52,673

Finance income

(884

)

(729

)

281,890

643,718

Decrease/(increase) in stocks

8,348

(4,195

)

Decrease/(increase) in trade and other debtors

2,025,465

(1,645,902

)

(Decrease)/increase in trade and other creditors

(1,970,872

)

1,058,383

Cash generated from operations

344,831

52,004

2.	CASH AND CASH EQUIVALENTS

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

Year ended 30 September 2025

30.9.25

1.10.24

£

£

Cash and cash equivalents

255,232

211,435

Year ended 30 September 2024

30.9.24

1.10.23

£

£

Cash and cash equivalents

211,435

149,418

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.10.24

Cash flow

At 30.9.25

£

£

£

Net cash

Cash at bank

211,435

43,797

255,232

211,435

43,797

255,232

Debt

Finance leases

(169,018

)

(10,558

)

(179,576

)

Debts falling due within 1 year

(103,813

)

23,229

(80,584

)

Debts falling due after 1 year

(146,278

)

73,265

(73,013

)

(419,109

)

85,936

(333,173

)

Total

(207,674

)

129,733

(77,941

)

1.	STATUTORY INFORMATION

12 Bore Investments limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Amounts are rounded to the nearest £1.

Basis of consolidation

These consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 September 2025.

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

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances

The group accounts for long term contracts under FRS102, specifically using the percentage of costs incurred to arrive at a contract value - resulting in amounts payable or amounts recoverable on contracts - see revenue policy for more details.

The nature of this involves significant judgement which can change as time progresses. The scale of this work covers large aspects of the financial statements and it is a key estimation area of the business. Management review this monthly taking into account specific factors in the job to ensure that the long term contracts are accounted for in accordance with FRS102 in all material aspects and the estimate applied is reasonable and supported.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the Company will receive the consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably

Contract revenue recognition

The Group deals with long term contracts and in arriving at a value for these contracts the Group uses the percentage of completion method with reference to the incurred costs on the job as that date against the total expected costs, The percentage is applied to the contract value and amounts invoiced are deducted from the calculation to arrive at either amounts payable on contracts (recorded in creditors) or amounts recoverable on contracts (recorded in debtors). The company performs these calculations monthly and continually reviews the details of each job when applying the estimates of costs expected, as the job progresses the most up to date knowledge of the job is applied which can vary each month. The movements are posted through turnover.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Plant and machinery - 15%-25% on cost

Motor vehicles - 5%-20% on cost

The assets residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the company has 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.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

Stocks are stated at the lower of cost and net realisable value and represent raw materials used. Amounts are reviewed for impairment regularly and any amounts are released to the profit & loss where necessary.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised at the transaction price. Amounts are reviewed periodically and where amounts are not considered recoverable a provision is made and the net amount is recorded within profit and loss.

Retentions

Retentions are recognised within other debtors as the job progresses. The retention is invoiced at the time of the contractual terms and is moved to trade debtors when invoiced/becomes due.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised at the transaction price.

3.

TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the group.

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

2025

2024

£

£

Services rendered

13,175,198

18,215,194

Rental income

11,400

11,125

13,186,598

18,226,319

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

13,186,598

18,226,319

13,186,598

18,226,319

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,432,383

3,897,083

Social security costs

380,767

436,488

Other pension costs

50,756

55,403

3,863,906

4,388,974

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

2025

2024

Office and support staff

15

17

Directors

2

2

Direct labour

45

51

62

70

The average number of employees by undertakings that were proportionately consolidated during the year was 1 (2024 - 1 ) .

2025

2024

£

£

Director's remuneration

344,146

285,095

Director's pension contributions to money purchase schemes

2,642

2,642

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

264,132

205,755

Pension contributions to money purchase schemes

1,321

1,321

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Other operating leases

171,408

110,000

Depreciation - owned assets

47,217

31,002

Profit on disposal of fixed assets

-

(1,549

)

Auditors' remuneration

19,000

-

6.

INTEREST RECEIVABLE AND SIMILAR INCOME

2025

2024

£

£

Deposit account interest

705

729

Directors loan interest

179

-

884

729