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

The group is engaged in building and civil engineering activities, quarrying, house building and the manufacture of construction products, working from sites in Northern Ireland and Great Britain.

The group's key financial and other performance indicators during the period were as follows:

We have continued to invest in our facilities and people and are confident that this strategy will ensure that the Company will be able to capitalise on the growing demand from the construction industry to provide modular solutions to meet its needs in an environment of a declining skilled labour market.

The Company's strategy is to follow an appropriate risk policy, which effectively manages exposures related to the achievement of our business objectives. The key risks which management face are detailed as follows:

Business performance risk

Business performance risk is the risk that the Company will not perform as expected either due to internal factors or due to competitive pressures in the markets in which they operate. This risk is managed in a number of ways including budget and business planning, financial controls, monthly reporting and variance analysis, key performance indicators, regular forecasting and ensuring the appropriate management team is in place.

Business control

Strong financial and business controls are in place to ensure the integrity and reliability of financial and other information on which the group relies for day-to-day operations, external reporting and for longer term planning.

The group operates a number of internal divisions which are managed through the recruitment of a local management team in each area which are further supported and controlled by the directors of the group.

The group exercises financial and business control through a combination of qualified and experienced financial teams, performance analysis, budgeting, cash flow forecasting and clearly defined approval limits. The external auditors provide advice on specific accounting and tax issues as they arise. The group also hires external advisors to complete aspects of its tax compliance and reporting requirements and to help us provide specialist expertise in significant transactions or understand the effects of new legislation and how it may impact us.

The directors recognise the importance of the recruitment, training and retention of a highly skilled and motivated work force. This is continually addressed through internal training and development programmes.

Research and development

At FP McCann Limited, we believe that continuous research and development is the key to success. We conduct novel research into sustainable drainage systems, low carbon materials, energy efficient manufacturing, high performance structures and improved production efficiency using the latest in AI and automation technology. This year, we have invested heavily in a state-of-the-art facility to support our research in robotics and low carbon concrete technology. Alongside this investment, we are constantly updating each of our factories to implement the latest manufacturing technologies, including our internally developed AI augmented computer vision system to maximise product quality, a first-of-its-kind for the industry.

The company employs the skills and experience of many technical experts with multiple years of experience in the field of Mechanical, Chemical and Civil Engineering, Concrete Manufacturing as well as Computer Vision Engineering. These persons are competent professionals within their field of expertise, and qualified to undertake the relevant R&D activities identified as they are highly knowledgeable about the relevant scientific and technological principles involved in the company’s R&D activities, aware of the current state of knowledge in their relevant field of expertise as well as having accumulated years of experience within this field.

Being at the forefront of the precast concrete industry in the UK, we believe that our role is to continually develop innovative solutions that solve engineering and architectural problems, with a strong emphasis on educating and upskilling the industry. We work with top tier research institutions to expedite the transfer of cutting-edge research to full-scale industry applications and disseminate our findings to stakeholders in the form of literature in trade journals, conferences, trade shows and scientific journal papers, alongside tours showcasing full-scale demonstrators. In the current year we have participated in several research grants, showcasing our commitment to improving the sustainability of our products and processes and investing in the development of new technology and capabilities for the industry.

Health and safety

The company is committed to ensuring a safe working environment. These risks are managed by the company through the strong promotion of a health and safety culture and well defined health and safety policies.  Robust systems and controls are in place to enable us to manage health and safety across all our divisions. We are committed to a process of demonstrable continuous improvement in health and safety that goes beyond compliance and ensures we adopt best practice.

Health and environment

The company has a clear strategy for Health & Safety, which particularly focuses on high risk operations. Our vision for Health & Safety is supported by clearly defined objectives and a supporting plan which establishes the basis on which we will successfully deliver the improvements. We embarked on a “lean” journey which targeted the physical working environment.  In doing so, we have created a working environment which has reduced risk, allows for efficient production and has a positive effect on our workforce. There is a clear emphasis placed on continual improvement with continuous measuring, monitoring and where necessary reviewing of the arrangements to ensure that the required Health & Safety standards are met.

Community

Organisations play a vital role in the development of local communities through investment in the built environment. We are committed to contributing to the economic well-being of the communities where we work through the employment of local people and suppliers where appropriate. We actively encourage our people to involve themselves in the local communities where they work, either through volunteer activities in local organisations and charities or by participating in local business groups and educational establishments in sharing knowledge and experience.

The group's environmental policy is to:

• Comply with all applicable environmental legislation;

• Ensure that all employees and contractors respect their environmental responsibilities;

• Through the carbon reduction commitment, strive to improve efficient use of energy resources and reduce water usage from its operations;

• Minimise waste and reduce the amount of same sent to landfill;

• Support local communities in which they operate by protecting the natural environment where possible.

• Achieving these objectives at all group locations is a management imperative. Each site manager has the day to day responsibility for ensuring the group's environmental policies and procedures are adhered to and they report to the directors on a continuous basis.

Credit risk

Credit risk arises principally on trade receivables. Group policy is aimed at minimising such risk and requires that deferred terms are granted only to customers who demonstrate an appropriate payment history and satisfy creditworthiness procedures. The company also have in place a credit insurance policy.

The group is not materially exposed to significant foreign currency risk.

We are a family business with over 40 years experience in the construction industry. The board are actively involved in the day to day running of the business and are focused on building a strong and sustainable business for the future. Regular engagement between our board of directors and stakeholders will ensure that we deliver products which are innovative and tailored to their specific requirements and construction needs.

Our aim is to perform and build a sustained trust with our stakeholders. By implementing our corporate values, we aim to deliver on this guarantee through our products, services, communications and, above all, the behaviour of our people.

The board have a long-term strategy which highlights specific key performance indicators, enabling them to regularly review their implementation and adapt them for the changing needs of the company and its stakeholders.

We recognise that we must integrate our business values and operations to meet the expectations of our stakeholders. Stakeholders include our employees, supply chain, customers, regulators, the community and the environment and we aim to develop our business activity in a way that is beneficial to them whilst having a positive impact on society as a whole.

We take seriously all feedback that we receive from our stakeholders and, where possible, maintain open dialogue to ensure that we fulfil our Corporate Social Responsibility.

We are open and honest in communicating our strategies, targets, performance, and governance to our stakeholders in our continual commitment to sustainable development.

Employing around 1,800 people, across multiple depots throughout Northern Ireland and Great Britain, we acknowledge the importance of our employees. We engage and consult with our employees through meetings. Information about matters of concern to employees is given through information bulletins, notice boards and email communication. We are committed to enabling local people to obtain the skills needed to access employment. This is achieved through comprehensive induction training, proper instruction, basic training, on the job support and mentoring, external training, and experiences to equip them for more senior posts within the company. Throughout the organisation we offer a wide range of Apprenticeship opportunities to young people and adult learners, these programmes help us to grow our own talent by developing a motivated, skilled, and qualified workforce whilst gaining internationally recognised qualifications.

Our senior management and department heads continually strive to develop business relations with regular communication and a known point of contact to enable a speedy resolution to any areas of concern. We are active members of a variety of trade associations and supply chain collaborations, including the MPA Precast Drainage Association, Architectural & Structural Association, Pipe Jacking Association and the National Federation of Roofing Contractors. Our contribution to these associations events and conferences allow us to discuss and share industry best practice in a variety of areas that embrace health & safety, sustainability, product developments and technological advances. We have been actively lobbying government bodies via UK Concrete, encouraging them to introduce stricter building regulations surrounding fire resilience and combustible materials used in construction. We also facilitate regular meetings with a range of regulatory stakeholders, building relationships on both a face-to-face basis and utilisation of technological platforms.

Our Environmental Management System enables us to achieve and demonstrate our environmental performance and minimise the negative impact of our operations. We endeavour to be at the forefront of the industry in reducing the impact of all our activities on the environment.

On behalf of the board

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

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

Ordinary dividends were paid amounting to £3,000k. The directors do not recommend payment of a further dividend.

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

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

The directors have confirmed that there are no significant events after the balance sheet date that they feel they need to disclose.

The directors do not anticipate any major changes in the nature of the business that they feel they need to disclose.

The auditor, IDS Chartered Accountants LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Methodology for quantification

We have quantified and reported our organisational greenhouse gas (GHG) emissions according to the (GHG) Reporting Protocol. Energy use data has been collated and converted into Carbon Dioxide Equivalent (Co2e) using the most up to date (March 2019) HM Government Environmental Reporting Guidelines along with the 2025 UK Government Conversion Factors for Company reporting in order to calculate emissions from corresponding activity data. We have used reliable and obtainable data typical of our operations throughout.

Boundary approach and base year

We have used the Financial Control boundary approach in line with all previous year’s reporting. Our fixed base year selection is 1st January 2020 – 31st December 2020 which is subject to change potentially in the future.

Summary of greenhouse gas emissions and energy consumption for the year ended 31st December 2025:

Intensity ratio

The emissions intensity ratio is calculated using total Scope 1, 2 and 3 greenhouse gas emissions per £ million of sales revenue. For the year ended 31st December 2025, this amounted to 58.88 tCO₂e per £m (2020: 126.19 tCO₂e per £m), representing a reduction of 53% compared with the 2020 base year and reflecting significant progress towards long-term decarbonisation objectives.

Sustainability approach

FP McCann is committed to embedding sustainability across all areas of its operations. The Board recognises that advancing a broader sustainability agenda is integral to our long-term strategy, operational resilience and responsible business practices.

Low carbon projects and environmental actions taken

During 2025, we continued to implement a range of initiatives aimed at reducing emissions, improving resource efficiency and supporting the transition to lower-carbon operations. Key actions undertaken during the year include:

• Participation in research grants and industry programmes focused on sustainable innovation, including the Industrial Energy Transformation Fund, Industrial Energy Efficiency Accelerator and the Artificial Intelligence for Decarbonisation Innovation Programme, demonstrating continued investment in emerging technologies and operational improvement.

• Installation of additional solar photovoltaic panels at our Littleport site to supplement existing energy sources and increase the proportion of renewable energy used in operations.

• Ongoing application of LEAN manufacturing principles to enhance productivity, optimise resource utilisation and reduce waste, supporting long-term emissions reduction objectives.

• Progressive replacement of diesel-powered forklift trucks with electric alternatives, together with installation of electric vehicle charging infrastructure across operational sites to support fleet transition and growing staff and visitor demand.

• Continued membership of Industrial Decarbonisation for Northern Ireland (IDNI), an Invest NI-led collaborative initiative aimed at developing coordinated strategies to reduce industrial carbon emissions across the region.

Carbon offsets and targets

Alongside operational reduction initiatives, FP McCann continue to support accredited carbon offset and environmental enhancement schemes. During 2025 this included ongoing participation in the Small Woodland Scheme and the All-Ireland Pollinator Plan, both of which contribute to biodiversity improvement and long-term carbon sequestration. These activities complement our wider decarbonisation strategy, which prioritises emissions reduction at source while supporting credible offsetting initiatives where appropriate.

FP McCann also continues to strengthen its collaboration with Queen’s University Belfast to advance research and development in low-carbon solutions. This partnership supports the ongoing evolution of sustainable practices across our product portfolio and forms part of its long-term innovation strategy.

Further information on FP McCann’s sustainability commitments is available on the Company’s website: https://fpmccann.co.uk/about-us-2/sustainability-2/

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 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

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

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

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

We have audited the financial statements of FP McCann Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 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, the company 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 its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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:

• 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 the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

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

As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

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

• investigated the rationale behind any significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statements disclosures to underlying supporting documentation;

• reading the minutes of meetings of those charged with governance;

• enquiring of management as to actual and potential litigation and claims;

• reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

The purpose of our audit work and to whom we owe our responsibilities

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.

The profit and loss account 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 profit for the year was £47,514k.

FP McCann Group Limited (“the company”) is a private limited company domiciled and incorporated in Northern Ireland. The registered office is Knockloughrim Quarry, 3 Drumard Road, Magherafelt, Co Londonderry, BT45 8QA.

The group consists of FP McCann Group Limited and its subsidiaries FP McCann Limited, FPM Investments Ltd and Reginald Hogg Holdings Limited.

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.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

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

The consolidated group financial statements consist of the financial statements of the parent company FP McCann Group 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 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.

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

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual staff costs and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

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

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value as at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.

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, associates and jointly controlled entities 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.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

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

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

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

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

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

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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 and , are assessed for indicators of impairment at each reporting end date.

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

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

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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, loans from fellow group companies and preference shares that are classified as debt, 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.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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.

Patent Box

The company will be availing of the patent box regime, which allows a reduced tax rate on qualifying patent income. The benefit is recognised within the taxation charge in the period in which the relevant profits are earned.

Research and development

The company has undertaken research and development activities in the period in which the company has claimed Research and Development Expenditure Credit (RDEC) under the large company scheme. The directors have reassessed the accounting treatment of R&D tax credits and determined that recognition above the line as other income is more appropriate. This represents a change in accounting policy and has been applied retrospectively, resulting in a prior period adjustment to comparatives. The credit was previously presented as a reduction in the corporation tax charge in line with the company’s accounting policy.

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. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Jointly controlled operations

The company's share of the results, assets and liabilities of contracts carried out in conjunction with another party are included under each relevant heading in the Statement of Comprehensive Income and Balance Sheet.

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 group does not have any critical accounting judgements, apart from those involving estimations which are dealt with below.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The valuation of raw material stock requires the directors to apply significant judgements and estimates in determining the cost per unit and assessing net realisable value. These estimates involve inherent uncertainty, which may affect the carrying amount of stock in the financial statements.

An analysis of the group's turnover is as follows:

No analysis of turnover by geographical market has been disclosed as, in the opinion of the directors, such disclosure would be seriously prejudicial to the interests of the group.

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

Their aggregate remuneration comprised:

The company has interests in the following jointly controlled operations:

33% interest in BbM JV

50% interest in BAM McCann JV

These have been included in the financial statements using the equity method. The following amounts have been recognised in the Statement of Comprehensive Income relating to these Joint Operations:

The actual charge/(credit) 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:

Land and buildings and operational quarries with a closing carrying amount of £224,123k were revalued during the year ended 31 December 2023 by Cushman and Wakefield, Commercial Estate Agents and Andrew Dixon and Company, Chartered Surveyors, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

Investment property comprises property in Northern Ireland and England. The fair value of the investment property has been arrived at on the basis of a valuation carried out on 31 December 2023 by Cushman & Wakefield, commercial property experts, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

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

There are no material differences between the replacement cost of stocks and the balance sheet amount.

At 31 December 2025 trade debtors had been sold to a provider of invoice discounting and debt factoring services. The company is committed to underwrite any of the debts transferred and therefore continues to recognise the debts sold within trade debtors until the debtors repay or default. The proceeds from transferring the debts of £37,321k (2024: £10,821k) are included in other creditors until the debts are collected or the company makes good any losses incurred by the service provider.

Bank facilities are secured with legal charges over specific property assets of the company.

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:

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

The remuneration of key management personnel is as follows.

During the year the group entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

The company has taken advantage of the exemption granted by paragraph 33.1A of FRS102, Related Party Disclosures from disclosing transactions with 100% owned subsidiaries that are part of the FP McCann Group Limited group of companies.

The company is controlled by the McCann family.

The following are the parents of the largest and smallest groups in which this company's results are consolidated:

The directors have reassessed the accounting treatment of R&D tax credits and determined that recognition above the line as other income is more appropriate than as a reduction in the corporation tax charge. This represents a change in accounting policy and has been applied retrospectively, resulting in a prior period adjustment to comparatives.