REGISTERED NUMBER: 02732520 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

FOR

WYN CONSTRUCTION LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

18

DIRECTORS:

R Bainbridge

D Cowie

M Horner

J L Osborne

M J Shanley

SECRETARY:

R Bainbridge

REGISTERED OFFICE:

Hilltop Garage

Cornsay Village

Durham

Co. Durham

DH7 9EL

REGISTERED NUMBER:

02732520 (England and Wales)

AUDITORS:

Momentum Taxation & Accountancy Limited

Statutory Auditor

Harelands Courtyard Offices

Moor Road

Melsonby

Richmond

North Yorkshire

DL10 5NY

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

The company's main business continues to be as a civil engineering and groundworks contractor predominantly operating as a sub-contractor within the North East of England.

REVIEW OF BUSINESS

The core business of Wyn Construction Ltd continues to provide a solid foundation for its employees with another year of successful trading behind us which has seen us deliver a healthy bottom line margin despite a small drop in turnover compared to year end 2024. These figures all align with the expectations and forecast set out by the board of directors at the beginning of the financial year.

We have continued to deliver projects to the highest quality for our regular client base, as well as securing new projects with them that will run into our next financial year and beyond. This diverse work stream across the commercial and education sectors as well as the MOD & MOJ for clients such as Galliford Try, Bowmer & Kirkland and Kier Construction means that we are in a very strong position going into 2026. We will continue to reinvest in our business with the upskilling of our directly employed workforce as well as the cyclical renewal programme across our in-house plant fleet.

The above-mentioned results have once again been driven and managed by the dedication and commitment of all the directors, staff and operatives involved within the business.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the strategy are subject to a number of risks. In assessing the main risks and uncertainties the company has considered their potential impact, their likelihood and the control measures it has or can put in place to mitigate these risks. These risks and uncertainties can be broadly considered as - operational, financial and market risk.

a) Operational risk

The operational risks faced by the company include system failures, fraud and theft, failure to comply with taxation requirements and breach of other statutory regulations. The main impact of these is financial and the Company has various controls in place to minimise these risks.

b) Financial Risk

The company is exposed to financial risk primarily through cash flow caused by bad or non-payment by clients. The company has a relatively small number of clients and endeavours to keep abreast of their financial position and be aware of any early warning signs that they may be in difficulty. The company also reviews cash flow on a regular basis and ensures regular contact with clients to ensure that payments are received timeously and has negotiated terms with suppliers to mirror standard payment terms from clients. These combined measures are continuing to minimise the risk.

c) Market Risk

The main market risks relate to a downturn in the industry and new or increased competition from other companies. The company continually monitors the market for any signs of a slowdown and has considered various options should that situation arise. The company can do nothing to prevent competition but market intelligence makes us aware of our·competitors and their pricing levels. We believe these measures continue to ensure our competitiveness and significantly reduce the risk.

KEY PERFORMANCE INDICATORS (KPI'S)

The KPI's used by the directors for an understanding of the development and performance of the company include monthly management accounts, monthly contract reviews, regulatory capital reports, cash flow projections and underlying data on the performance of the funds which are reviewed by the directors on a regular basis. The key performance indicators are Client Satisfaction, Defects, Construction Time and Cost, Productivity, Profitability, Health and Safety and Employee Satisfaction.

2025

2024

£

£

Turnover

16,925,695

18,114,638

Gross Profit

4,517,717

3,856,378

GP%

29.79%

21.29%

Operating Profit

1,681,956

1,419,490

Liquidity

270.27%

231.40%

FINANCIAL RISK MANAGEMENT POLICY

The company's principal. financial instruments comprise cash and cash equivalent. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the company's operating activities. The main risks associated with the company's financial assets and liabilities are set out below.

Interest rate risk

The company invests surplus cash in short/medium term variable interest bank accounts; The company has not resorted to bank borrowing over the last twelve months and that continues to be the plan for the foreseeable future. The exposure to this particular risk is therefore limited to a reduction in interest received generated by falling interest rates, which are unlikely to fall below their current level.

Bad debt/credit risk

The company has suffered previously though the insolvency of others and future insolvencies remain a high concern. It is apparent that main contractors have been working on projects secured at low prices and have struggled to complete contracts within budget, thus affecting their profitability and eventual solvency.

Liquidity risk

The company aims to mitigate liquidity risk by careful management of cash generated and the ongoing monitoring of assets sales and purchases. All capital expenditure is approved by the directors whilst ensuring flexibility of cash resources being readily available in short term bank deposits.

Cash flow risk

Cash flow has always been important but is even more critical since writing off of bad debts in previous years. The management team have therefore introduced more stringent cash flow forecasting and collection procedures.

Employees

The Company places considerable value on the involvement of its employees at all levels with the aim of ensuring their views are taken into account when decisions are made that are likely to affect their interests and that all employees are aware of the financial and economic performance of the business. Staff members are kept informed of performance through briefing meetings and internal communications.

Equal Opportunities

We are committed to' equal opportunities in employment. The policies and practices of the Company aim to promote an environment that is free from all forms of unlawful or unfair discrimination and values the diversity of all people. At the heart of our policy, we seek to treat people fairly and with dignity and respect.

ON BEHALF OF THE BOARD:

D Cowie - Director

29 May 2026

The directors present their report with the financial statements of the company for the year ended 31 August 2025.

DIVIDENDS

The total distribution of dividends in the year to 31 August 2025 was £147,500.

RESEARCH AND DEVELOPMENT

The company has undertaken research and development in relation to technical engineering solutions provided and value engineering proposals for their contractors.

FUTURE DEVELOPMENTS

The Directors are committed to growth in all of the company's key areas, they continue to invest in plant & machinery & labour to effectively facilitate growth. The overriding objective of the company is to deliver services in an efficient & effective manner to maximise profitability.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 September 2024 to the date of this report.

R Bainbridge

D Cowie

M Horner

J L Osborne

M J Shanley

FINANCIAL INSTRUMENTS

Treasury operations and Financial instruments

The company manages the liquidity and interest risks associated with the company's activities.

The company has various financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director 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 company's auditors are aware of that information.

AUDITORS

The auditors, Momentum Taxation & Accountancy Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D Cowie - Director

29 May 2026

Opinion

We have audited the financial statements of Wyn Construction Limited (the 'company') for the year ended 31 August 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 August 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 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 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 company or to cease operations, or have 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:

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud. In particular, we looked at where management made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of this discussion we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing of manual journals and key estimates and judgements made by management.Our tests included agreeing the financial statements disclosures to underlying supporting documentation and enquiries with management. We did not identify any key audit matters relating to irregularities, including fraud. We also addressed the risk of management override of internal controls including testing journals and evaluation whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the more remote that the non-compliances (eg with laws and regulations) are from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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.

Peter Cartwright FCCA (Senior Statutory Auditor)

for and on behalf of Momentum Taxation & Accountancy Limited

Statutory Auditor

Harelands Courtyard Offices

Moor Road

Melsonby

Richmond

North Yorkshire

DL10 5NY

29 May 2026

TURNOVER

16,925,695

18,114,638

Cost of sales

12,407,978

14,258,260

GROSS PROFIT

4,517,717

3,856,378

Administrative expenses

2,837,370

2,448,591

1,680,347

1,407,787

Other operating income

1,609

11,703

OPERATING PROFIT

5

1,681,956

1,419,490

Interest receivable and similar income

57,467

93,475

1,739,423

1,512,965

Interest payable and similar expenses

6

400

-

PROFIT BEFORE TAXATION

1,739,023

1,512,965

Tax on profit

7

342,683

229,837

PROFIT FOR THE FINANCIAL YEAR

1,396,340

1,283,128

FIXED ASSETS

Tangible assets

9

289,834

35,823

Investments

10

124,196

122,587

414,030

158,410

CURRENT ASSETS

Stocks

11

7,465

4,517

Debtors

12

5,666,569

3,819,509

Cash at bank and in hand

3,604,300

4,608,942

9,278,334

8,432,968

CREDITORS

Amounts falling due within one year

13

3,432,926

3,644,283

NET CURRENT ASSETS

5,845,408

4,788,685

TOTAL ASSETS LESS CURRENT LIABILITIES

6,259,438

4,947,095

PROVISIONS FOR LIABILITIES

14

72,459

8,956

NET ASSETS

6,186,979

4,938,139

CAPITAL AND RESERVES

Called up share capital

15

1,092

1,092

Capital redemption reserve

16

1,120

1,120

Retained earnings

16

6,184,767

4,935,927

SHAREHOLDERS' FUNDS

6,186,979

4,938,139

The financial statements were approved by the Board of Directors and authorised for issue on 29 May 2026 and were signed on its behalf by:

D Cowie - Director

R Bainbridge - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 September 2023

2,001,092

3,759,799

1,120

5,762,011

Changes in equity

Issue of share capital

(2,000,000

)

-

-

(2,000,000

)

Dividends

-

(107,000

)

-

(107,000

)

Total comprehensive income

-

1,283,128

-

1,283,128

Balance at 31 August 2024

1,092

4,935,927

1,120

4,938,139

Changes in equity

Dividends

-

(147,500

)

-

(147,500

)

Total comprehensive income

-

1,396,340

-

1,396,340

Balance at 31 August 2025

1,092

6,184,767

1,120

6,186,979

Cash flows from operating activities

Cash generated from operations

1

(406,725

)

2,174,236

Interest paid

(400

)

-

Tax paid

(279,261

)

(19,178

)

Net cash from operating activities

(686,386

)

2,155,058

Cash flows from investing activities

Purchase of tangible fixed assets

(354,835

)

(44,901

)

Interest received

57,467

93,475

Net cash from investing activities

(297,368

)

48,574

Cash flows from financing activities

Amount introduced by directors

165,000

4,168,113

Amount withdrawn by directors

(38,388

)

(134,950

)

Share issue

-

(2,000,000

)

Equity dividends paid

(147,500

)

(107,000

)

Net cash from financing activities

(20,888

)

1,926,163

(Decrease)/increase in cash and cash equivalents

(1,004,642

)

4,129,795

Cash and cash equivalents at beginning of year

2

4,608,942

479,147

Cash and cash equivalents at end of year

2

3,604,300

4,608,942

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

2025

2024

£

£

Profit before taxation

1,739,023

1,512,965

Depreciation charges

100,824

15,387

Gain on revaluation of fixed assets

(1,609

)

(11,703

)

Finance costs

400

-

Finance income

(57,467

)

(93,475

)

1,781,171

1,423,174

(Increase)/decrease in stocks

(2,948

)

1,130

Increase in trade and other debtors

(1,973,124

)

(549,896

)

(Decrease)/increase in trade and other creditors

(211,824

)

1,299,828

Cash generated from operations

(406,725

)

2,174,236

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 31 August 2025

31/8/25

1/9/24

£

£

Cash and cash equivalents

3,604,300

4,608,942

Year ended 31 August 2024

31/8/24

1/9/23

£

£

Cash and cash equivalents

4,608,942

479,147

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/9/24

Cash flow

At 31/8/25

£

£

£

Net cash

Cash at bank and in hand

4,608,942

(1,004,642

)

3,604,300

4,608,942

(1,004,642

)

3,604,300

Total

4,608,942

(1,004,642

)

3,604,300

1.	STATUTORY INFORMATION

Wyn Construction 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 Company Information page.

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 as modified by the revaluation of certain assets.

Significant judgements and estimates

In the application of the company'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 key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

Revenue and profit recognition

The estimation techniques used for revenue and profit recognition in respect of construction contracts require forecasts to be made of the outcome of long-term contracts which require assessments and judgements to be made on the recovery of pre-contract costs, changes in the scope of work, contract programmes, maintenance and defects liabilities and changes in costs.

Recoverable value of recognised receivables

The recoverability of trade and other receivables is regularly reviewed in the light of available economic information specific to each receivable and provisions are recognised for balances considered to be irrecoverable.

Estimates included within these financial statements include depreciation and asset impairments (for example provisions against debtors). None of the estimates made in the preparation of these financial statements are considered to carry significant estimation uncertainty, nor bear significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Turnover

Turnover comprises the fair value of the consideration received or receivable, net of value added tax, rebates and discounts.

Revenue from construction contracts arises from increases in valuations and is normally determined by external valuations. It is the gross value of work carried out for the period to the balance sheet date (including retentions) and estimates of amounts not invoiced..

Profit on contracts is calculated in accordance with accounting standards and industry practice. It is industry practice to assess the estimated final outcome of each contract and recognise the profit based upon the percentage of completion of the contract at the relevant date. The assessment of the final outcome of each contract is determined by regular review of the revenue and costs to complete that contract. Provision is made for losses incurred or foreseen in bringing the contract to completion as soon as they become apparent.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

25% on cost

Fixtures and fittings

-

20% on cost

Computer equipment

-

25% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The company 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 company'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

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.

Impairment of financial assets

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

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

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

Derecognition of financial assets

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 of 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.

Classification of financial liabilities

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 company after deducting all of its liabilities.

Basic financial 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Revenue and profit recognition

The estimation techniques used for revenue and profit recognition in respect of construction contracts require forecasts to be made of the outcome of long term contracts which require assessments and judgements to be made on the recovery of pre-contract costs, changes in the scope of the work, contract programmes, maintenance and defect liabilities as well as changes in costs.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

4,918,492

4,650,781

Social security costs

534,005

466,103

Other pension costs

496,315

346,118

5,948,812

5,463,002

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

2025

2024

Production

97

98

Sales and administration

20

20

117

118

2025

2024

£

£

Directors' remuneration

363,420

310,844