Company registration number 10309654 (England and Wales)
PC HOLDINGS (SW) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
PC HOLDINGS (SW) LIMITED
COMPANY INFORMATION
Directors
Mr P Chapman
Mrs R Chapman
Company number
10309654
Registered office
First Floor Westcountry House
Threemilestone
TRURO
Cornwall
TR4 9LD
Auditor
RRL LLP
Peat House
Newham Road
TRURO
Cornwall
TR1 2DP
PC HOLDINGS (SW) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 34
PC HOLDINGS (SW) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2025

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

Principal activities

The principal activity of the group continued to be the acquisition and development of land for residential properties within Cornwall, along with the construction of residential properties for clients and rental of properties owned within the group.

Review of the business

Property Investment

The Group has continued to make substantial progress within its property investment portfolio during the year, with the completion of a new 10-property development in late 2025. Of these properties, two were sold on the open market, with the remaining eight retained within the Group’s investment portfolio to support long-term recurring rental income and capital growth.

 

As a result of the development reaching full completion, 2026/27 will represent the first full financial year benefiting from the increased rental income generated from these retained assets. This is expected to positively enhance both turnover and overall financial performance across the property investment division.

 

The Group continues to explore strategic development and acquisition opportunities that align with its long-term investment objectives, whilst also reviewing opportunities to optimise portfolio performance and yields through active asset management.

 

The Directors remain confident that the continued growth of the investment portfolio, combined with increasing recurring rental income, places the Group in a strong position for sustainable long-term growth.

Construction

Construction activities during the year saw a considered reduction in overall project numbers and, consequently, turnover. This strategic decision reflected the Company’s deliberate refocus towards carefully selected bespoke and higher-quality projects that better align with the company’s core expertise and long-established reputation.

 

Whilst turnover reduced, the change in project mix and improved project selection translated into a positive improvement in both gross profit and net profit margins during the year. Enhanced cost management, stronger project oversight and a continued focus on quality delivery have contributed positively to overall performance.

 

Looking ahead into 2026/27, the Company intends to maintain the current approach. The Directors believe this strategy will further strengthen profitability and support the long-term sustainability of the construction division.

 

The construction division remains committed to delivering excellence, maintaining strong client relationships and continuing its emphasis on quality, service and client satisfaction.

Principal risks and uncertainties

The Board of Directors are ultimately responsible for risk management and processes are in place to identify, mitigate and manage risks.

 

The Directors consider the following to be the principal risks facing the Group:

- 1 -
PC HOLDINGS (SW) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025

The Directors monitor the Group’s performance regularly and proactively assess the potential impact of these risks. The Group continues to maintain strong relationships with its supply chain and clients, whilst implementing careful project selection, active cost management and prudent financial planning to help mitigate the impact of external economic pressures.

Key performance indicators

The group’s key financial performance indicators for the year during the year were as follows:

 

                                          2025                2024

Turnover                                 £11,096,277            £17,168,794 

Gross profit margin                        9.88%                6.46%

Profit before taxation              £755,259            £672,633

On behalf of the board

Mr P Chapman
Director
29 May 2026
- 2 -
PC HOLDINGS (SW) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2025

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

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid by the group amounting to £233,000 (2024: £355,000). The directors do not recommend payment of a further dividend.

Directors

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

Mr P Chapman
Mrs R Chapman
Financial instruments
Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Future developments

The Group is well positioned for the future, with both the property investment and construction companies seeking the right opportunities for our portfolios and our teams

Over the next few years, the Group plans to:

We are optimistic about the future, with a clear focus on long-term sustainability and continued development of our investment and client portfolios.

Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

- 3 -
PC HOLDINGS (SW) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
On behalf of the board
Mr P Chapman
Director
29 May 2026
- 4 -
PC HOLDINGS (SW) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2025

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

- 5 -
PC HOLDINGS (SW) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PC HOLDINGS (SW) LIMITED
Opinion

We have audited the financial statements of PC Holdings (SW) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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:

- 6 -
PC HOLDINGS (SW) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PC HOLDINGS (SW) LIMITED
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not 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:

Responsibilities of directors
- 7 -

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.

Auditor's responsibilities for the audit of the financial statements

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

PC HOLDINGS (SW) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PC HOLDINGS (SW) LIMITED

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.

 

As part of our audit work, we obtained an understanding of the legal and regulatory frameworks applicable to the group and parent company and the sector in which they operate. We determined that the laws and regulations most significant to the group and parent company, as well as the laws and regulations that have a direct impact on the preparation of the financial statements are: the Companies Act 2006, Health and safety, building and planning regulations and letting regulations.

 

The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

 

We also communicate relevant identified laws and regulations and potential fraud risk to all engagement team members and remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

Our audit approach also considered the opportunities and incentives that may exist within the group and parent company for fraud and identified the greatest potential for fraud being in respect of cut off and completion risk around revenue recognition. Under ISA (UK) we are also required to undertake procedures to respond to the risk of management override of controls. Our procedures included the following:

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

 

- 8 -
PC HOLDINGS (SW) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PC HOLDINGS (SW) LIMITED

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

Use of our report

This report is made solely to the 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.

Nicholas Skerratt FCA CTA (Senior Statutory Auditor)
For and on behalf of RRL LLP, Statutory Auditor
Chartered Accountants
Peat House
Newham Road
TRURO
Cornwall
TR1 2DP
29 May 2026
- 9 -
PC HOLDINGS (SW) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2025
2025
2024
as restated
Notes
£
£
Turnover
3
11,096,277
17,168,794
Cost of sales
(9,999,685)
(16,058,976)
Gross profit
1,096,592
1,109,818
Administrative expenses
(449,972)
(498,719)
Other operating income
15,086
6,655
Operating profit
4
661,706
617,754
Interest receivable and similar income
7
15,020
17,868
Interest payable and similar expenses
8
(245,219)
(93,784)
Amounts written off investments
9
323,752
130,795
Profit before taxation
755,259
672,633
Tax on profit
10
(189,157)
(167,396)
Profit for the financial year
566,102
505,237
Profit for the financial year is attributable to:
- Owners of the parent company
560,413
496,288
- Non-controlling interests
5,689
8,949
566,102
505,237
Total comprehensive income for the year is attributable to:
- Owners of the parent company
560,413
496,288
- Non-controlling interests
5,689
8,949
566,102
505,237

The profit and loss account has been prepared on the basis that all operations are continuing operations.

- 10 -
PC HOLDINGS (SW) LIMITED
GROUP BALANCE SHEET
AS AT
31 AUGUST 2025
31 August 2025
2025
2024
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
13
66,939
109,089
Investment property
14
6,939,245
6,401,589
7,006,184
6,510,678
Current assets
Debtors
17
2,023,060
2,253,214
Cash at bank and in hand
922,113
995,606
2,945,173
3,248,820
Creditors: amounts falling due within one year
18
(3,132,412)
(4,562,839)
Net current liabilities
(187,239)
(1,314,019)
Total assets less current liabilities
6,818,945
5,196,659
Creditors: amounts falling due after more than one year
19
(3,319,277)
(2,098,808)
Provisions for liabilities
Deferred tax liability
22
436,900
366,500
(436,900)
(366,500)
Net assets
3,062,768
2,731,351
Capital and reserves
Called up share capital
24
18
18
Non-distributable profits reserve
25
1,284,732
1,050,130
Distributable profit and loss reserves
1,759,726
1,666,915
Equity attributable to owners of the parent company
3,044,476
2,717,063
Non-controlling interests
18,292
14,288
Total equity
3,062,768
2,731,351

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 29 May 2026 and are signed on its behalf by:
29 May 2026
Mr P Chapman
Director
Company registration number 10309654 (England and Wales)
- 11 -
PC HOLDINGS (SW) LIMITED
COMPANY BALANCE SHEET
AS AT 31 AUGUST 2025
31 August 2025
2025
2024
Notes
£
£
£
£
Fixed assets
Investments
15
1,108
1,108
Current assets
Debtors
17
239,439
138,206
Cash at bank and in hand
41
214
239,480
138,420
Creditors: amounts falling due within one year
18
(233,287)
(137,926)
Net current assets
6,193
494
Net assets
7,301
1,602
Capital and reserves
Called up share capital
24
6
6
Distributable profit and loss reserves
7,295
1,596
Total equity
7,301
1,602

As permitted by section 304 of the Companies Act 2014, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £238,699 (2024 - £345,448 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 29 May 2026 and are signed on its behalf by:
29 May 2026
Mr P Chapman
Director
Company registration number 10309654 (England and Wales)
- 12 -
PC HOLDINGS (SW) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2025
Share capital
Non-distri-butable profits
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
As restated for the period ended 31 August 2024:
Balance at 1 September 2023
18
952,035
1,618,722
2,570,775
10,339
2,581,114
Year ended 31 August 2024:
Profit and total comprehensive income
-
98,095
398,193
496,288
8,949
505,237
Dividends
11
-
-
(350,000)
(350,000)
(5,000)
(355,000)
Balance at 31 August 2024
18
1,050,130
1,666,915
2,717,063
14,288
2,731,351
Year ended 31 August 2025:
Profit and total comprehensive income
-
234,602
325,811
560,413
5,689
566,102
Dividends
11
-
-
(233,000)
(233,000)
(1,685)
(234,685)
Balance at 31 August 2025
18
1,284,732
1,759,726
3,044,476
18,292
3,062,768
- 13 -
PC HOLDINGS (SW) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2025
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 September 2023
6
6,148
6,154
Year ended 31 August 2024:
Profit and total comprehensive income for the year
-
345,448
345,448
Dividends
11
-
(350,000)
(350,000)
Balance at 31 August 2024
6
1,596
1,602
Year ended 31 August 2025:
Profit and total comprehensive income
-
238,699
238,699
Dividends
11
-
(233,000)
(233,000)
Balance at 31 August 2025
6
7,295
7,301
- 14 -
PC HOLDINGS (SW) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2025
2025
2024
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
30
(646,982)
776,998
Interest paid
(245,219)
(93,784)
Income taxes paid
(128,042)
(69,770)
Net cash (outflow)/inflow from operating activities
(1,020,243)
613,444
Investing activities
Purchase of tangible fixed assets
(1,588)
(3,117)
Proceeds from disposal of tangible fixed assets
28,051
1,000
Purchase of investment property
(636,943)
(1,056,605)
Proceeds from disposal of investment property
541,011
250,290
Repayment of loans
29,959
(62,637)
Interest received
15,020
17,868
Net cash used in investing activities
(24,490)
(853,201)
Financing activities
Proceeds from new bank loans
2,497,170
2,015,000
Repayment of bank loans
(1,263,381)
(1,633,787)
Payment of finance leases obligations
(27,864)
(27,411)
Dividends paid to equity shareholders
(233,000)
(350,000)
Dividends paid to non-controlling interests
(1,685)
(5,000)
Net cash generated from/(used in) financing activities
971,240
(1,198)
Net decrease in cash and cash equivalents
(73,493)
(240,955)
Cash and cash equivalents at beginning of year
995,606
1,236,561
Cash and cash equivalents at end of year
922,113
995,606
- 15 -
PC HOLDINGS (SW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
1
Accounting policies
Company information

PC Holdings (SW) Limited (“the company”) is a private company limited by shares, domiciled and incorporated in England and Wales. The registered office is First Floor Westcountry House, Threemilestone, TRURO, Cornwall, TR4 9LD.

 

The group consists of PC Holdings (SW) Limited and all of its subsidiaries.

1.1
Basis of preparation

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 £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

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.

- 16 -
PC HOLDINGS (SW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
1
Accounting policies
(Continued)
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company PC Holdings (SW) 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 August 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
Turnover

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.

 

The company recognises revenue from the following major sources:

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

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.

Construction of domestic buildings

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.

 

- 17 -
PC HOLDINGS (SW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
1
Accounting policies
(Continued)

Rental income

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.

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.

1.6
Intangible fixed assets - goodwill

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 10 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.

1.7
Tangible fixed assets

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:

Plant and equipment
25% reducing balance
Computers
25% reducing balance
Motor vehicles
25% reducing balance

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.

1.8
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

1.9
Fixed asset investments

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.

- 18 -
PC HOLDINGS (SW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
1
Accounting policies
(Continued)

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

1.10
Impairment of fixed assets

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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.11
Construction contracts

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

 

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

 

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.

1.12
Cash and cash equivalents

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.

- 19 -
PC HOLDINGS (SW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
1
Accounting policies
(Continued)
1.13
Financial instruments

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

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

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.

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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group after deducting all of its liabilities.

- 20 -
PC HOLDINGS (SW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
1
Accounting policies
(Continued)
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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

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.

Derecognition of financial liabilities

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

1.14
Equity instruments

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.

1.15
Taxation

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

Current tax

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

- 21 -
PC HOLDINGS (SW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
1
Accounting policies
(Continued)
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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.

1.16
Employee benefits

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.

1.17
Retirement benefits

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

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

- 22 -
PC HOLDINGS (SW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
2
Judgements and key sources of estimation uncertainty
(Continued)
Key sources of estimation uncertainty

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.

Provisions for bad debts and disputes

These are calculated and agreed by the directors on an individual contract/customer basis.

Calculation of accrued income and deferred income

A degree of estimate is used for the measurement and recognition of accrued income and deferred income, considering the stage of completion and the estimated mark up on each individual contract, in accordance with contractual terms.

Valuation of investment property

The directors review the valuation of the investment property annually. Where there has been no formal valuation at the year end, property values are based on management's estimates using their best knowledge of the local market.

3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by class of business
Revenue from contracts
10,730,106
16,885,583
Rental income
366,171
283,211
11,096,277
17,168,794
2025
2024
£
£
Turnover analysed by geographical market
UK
11,096,277
17,168,794
2025
2024
£
£
Other revenue
Interest income
15,020
17,868
- 23 -
PC HOLDINGS (SW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
4
Operating profit
2025
2024
£
£
Operating profit for the year is stated after charging/(crediting):
Fees payable to the group's auditor for the audit of the group's financial statements
2,700
3,300
Depreciation of owned tangible fixed assets
10,173
9,606
Depreciation of tangible fixed assets held under finance leases
11,879
11,130
(Profit)/loss on disposal of tangible fixed assets
(6,365)
494
Profit on disposal of investment property
(117,972)
(69,205)
Operating lease charges
18,376
15,323
5
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Production
27
35
-
-
Administration
7
7
2
2
Total
34
42
2
2

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
1,145,750
1,522,601
-
0
-
0
Social security costs
141,250
162,425
-
-
Pension costs
41,983
48,901
-
0
-
0
1,328,983
1,733,927
-
0
-
0
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
66,251
46,372
Company pension contributions to defined contribution schemes
9,600
9,600
75,851
55,972
- 24 -
PC HOLDINGS (SW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
6
Directors' remuneration
(Continued)

The number of directors for whom benefits are accruing under defined contribution pension schemes is 2 (2024: 2).

7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
2,941
6,843
Other interest income
12,079
11,025
Total income
15,020
17,868
8
Interest payable and similar expenses
2025
2024
£
£
Interest on bank overdrafts and loans
235,370
86,217
Interest on finance leases and hire purchase contracts
4,324
4,047
Other interest
5,525
3,520
Total finance costs
245,219
93,784
9
Amounts written off investments
2025
2024
£
£
Changes in the fair value of investment properties
323,752
130,795
10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
118,757
141,987
Adjustments in respect of prior periods
-
0
(2,291)
Total current tax
118,757
139,696
Deferred tax
Origination and reversal of timing differences
70,400
27,700
Total tax charge
189,157
167,396
- 25 -
PC HOLDINGS (SW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
10
Taxation
(Continued)

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
755,259
672,633
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
188,815
168,158
Tax effect of expenses that are not deductible in determining taxable profit
1,029
1,762
Tax effect of income not taxable in determining taxable profit
(81,625)
(32,699)
Tax effect of utilisation of tax losses not previously recognised
-
0
(12)
Change in unrecognised deferred tax assets
70,400
27,700
Adjustments in respect of prior years
-
0
(2,291)
Permanent capital allowances in excess of depreciation
10,538
4,778
Taxation charge
189,157
167,396
11
Dividends
2025
2024
Recognised as distributions to equity holders:
£
£
Final paid
233,000
350,000
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 September 2024 and 31 August 2025
259,618
Amortisation and impairment
At 1 September 2024 and 31 August 2025
259,618
Carrying amount
At 31 August 2025
-
0
At 31 August 2024
-
0
The company had no intangible fixed assets at 31 August 2025 or 31 August 2024.
- 26 -
PC HOLDINGS (SW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
13
Tangible fixed assets
Group
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 September 2024
96,341
35,772
276,190
408,303
Additions
1,588
-
0
-
0
1,588
Disposals
-
0
-
0
(86,687)
(86,687)
At 31 August 2025
97,929
35,772
189,503
323,204
Depreciation and impairment
At 1 September 2024
83,213
29,422
186,579
299,214
Depreciation charged in the year
3,697
1,253
17,102
22,052
Eliminated in respect of disposals
-
0
-
0
(65,001)
(65,001)
At 31 August 2025
86,910
30,675
138,680
256,265
Carrying amount
At 31 August 2025
11,019
5,097
50,823
66,939
At 31 August 2024
13,128
6,350
89,611
109,089
The company had no tangible fixed assets at 31 August 2025 or 31 August 2024.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2025
2024
2025
2024
£
£
£
£
Motor vehicles
35,638
65,357
-
0
-
0

All tangible fixed assets of the company with a carrying amount of £66,939 (2024: £109,089) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings.

14
Investment property
Group
Company
2025
2025
£
£
Fair value
At 1 September 2024
6,401,589
-
Additions through external acquisition
636,943
-
Disposals
(423,039)
-
Net gains or losses through fair value adjustments
323,752
-
At 31 August 2025
6,939,245
-
- 27 -
PC HOLDINGS (SW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
14
Investment property
(Continued)

Some of the Freehold properties held for investment purposes were valued on 27 February 2024 by an independent Chartered Surveyor who has experience in the location and the class of investment properties held by the company. More of the Freehold properties held for investment purposes were valued again in April 2025 by the same independent Chartered Surveyor. The properties have then been valued by the directors at 31 August 2025 on an open market basis at the amount shown above.

 

All investment property with a carrying amount of £6,939,245 (2024: £6,401,589) has been pledged to secure borrowings of a subsidiary company. The subsidiary company is not allowed to pledge these assets as security for other borrowings.

15
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
1,108
1,108
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 September 2024 and 31 August 2025
1,108
Carrying amount
At 31 August 2025
1,108
At 31 August 2024
1,108
16
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
PC Properties (SW) Limited
First Floor, Westcountry House, Threemilestone Industrial Estate, Truro, Cornwall, England, TR4 9LD
Development and rental of residental properties
Ordinary
100.00
P Chapman Construction Limited
First Floor, Westcountry House, Threemilestone Industrial Estate, Truro, Cornwall, England, TR4 9LD
Construction of domestic dwellings
Ordinary
90.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
PC Properties (SW) Limited
1,753,947
366,462
P Chapman Construction Limited
1,302,628
201,198
- 28 -
PC HOLDINGS (SW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
16
Subsidiaries
(Continued)

All subsidiary companies have the same registered office as the parent company,

17
Debtors
Group
Company
2025
2024
2025
2024
as restated
Amounts falling due within one year:
£
£
£
£
Trade debtors
718,692
872,084
-
0
-
0
Corporation tax recoverable
68,855
87,401
-
0
-
0
Amounts owed by group undertakings
-
0
-
0
34,760
98,786
Other debtors
409,973
438,652
204,679
39,420
Prepayments and accrued income
597,256
400,406
-
0
-
0
1,794,776
1,798,543
239,439
138,206
Amounts falling due after more than one year:
Trade debtors
228,284
454,671
-
0
-
0
Total debtors
2,023,060
2,253,214
239,439
138,206

The amount owed by contract customers at the year end was £1,449,706 (2024: £1,654,507).

18
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans
20
64,485
67,381
-
0
-
0
Obligations under finance leases
21
11,141
22,789
-
0
-
0
Trade creditors
1,097,950
2,006,902
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
226,386
130,786
Corporation tax payable
227,299
255,130
-
0
-
0
Other taxation and social security
205,753
266,418
-
0
-
0
Other creditors
1,363,574
1,385,242
-
0
-
0
Accruals and deferred income
162,210
558,977
6,901
7,140
3,132,412
4,562,839
233,287
137,926

Deferred income is made up of amounts due to customers for contract work, which amounted to £522,519 (2024: £608,599).

- 29 -
PC HOLDINGS (SW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
19
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans and overdrafts
20
3,305,975
2,069,290
-
0
-
0
Obligations under finance leases
21
13,302
29,518
-
0
-
0
3,319,277
2,098,808
-
-
20
Loans and overdrafts
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank loans
3,370,460
2,136,671
-
0
-
0
Payable within one year
64,485
67,381
-
0
-
0
Payable after one year
3,305,975
2,069,290
-
0
-
0

One of the long term bank loans is secured by legal charges over the investment properties of PC Properties (SW) Limited, a subsidiary of PC Holdings (SW) Limited and an unlimited debenture together with an unlimited guarantee by P Chapman Construction Limited, another subsidiary of PC Holdings (SW) Limited.

 

The bank loans are over a term of 5 years at an interest rate of 2.26% over bank base rate with a final payment of the balance at the end of the loan term.

 

The aggregate amount of borrowings is £3,370,460 (2024: £2,136,671).

21
Finance lease obligations
Group
Company
2025
2024
2025
2024
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
11,141
22,789
-
0
-
0
In two to five years
13,302
29,518
-
0
-
0
24,443
52,307
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Finance leases are secured on the assets to which they relate.

- 30 -
PC HOLDINGS (SW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
22
Deferred taxation

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

Liabilities
Liabilities
2025
2024
Group
£
£
Accelerated capital allowances
16,500
27,000
Revaluations
420,400
339,500
436,900
366,500
The company has no deferred tax assets or liabilities.
Group
Company
2025
2025
Movements in the year:
£
£
Liability at 1 September 2024
366,500
-
Charge to profit or loss
70,400
-
Liability at 31 August 2025
436,900
-

The expected net reversal of deferred tax assets and liabilities in 2026 is £26,300 being the expected movement in accelerated capital allowances.

23
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
41,983
48,901

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.

 

At the year end the group owed the pension scheme £1,489 (2024: £1,341).

24
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
6
6
6
6

The company has one class of ordinary shares which carry no right to fixed income but have voting rights and are entitled to dividend payments.

- 31 -
PC HOLDINGS (SW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
25
Non-distributable profits reserve
Group
Company
2025
2024
2025
2024
£
£
£
£
At the beginning of the year
1,050,130
952,035
-
-
Non distributable profits in the year
234,602
98,095
-
-
At the end of the year
1,284,732
1,050,130
-
-
26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2025
2024
2025
2024
£
£
£
£
Within one year
18,885
29,348
-
-
Between two and five years
-
18,375
-
-
18,885
47,723
-
-
27
Related party transactions
Transactions with related parties
Other information

The company

 

During the year goods and services were sold from P Chapman Construction Limited, a subsidiary of PC Holdings (SW) Limited to PC Properties (SW) Limited, another subsidiary of PC Holdings (SW) Limited for £981,726 (2024: £695,504). At the year end P Chapman Construction Limited was owed £2,000,851 (2024: £2,879,777) from PC Properties (SW) Limited). The transactions are at cost and the amount due is repayable on demand and not interest bearing.

 

At the year end, P Chapman Construction Limited, a subsidiary of PC Holdings (SW) Limited owed £130,605 (2024: £98,786) to PC Holdings (SW) Limited. This is repayable on demand and not interest bearing.

 

The group

 

The group has taken advantage of the exemption from disclosing transactions with wholly owned group undertakings.

 

The company

 

The company has taken advantage of the exemption from disclosing transactions with wholly owned group undertakings.

 

- 32 -
PC HOLDINGS (SW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
28
Directors' transactions

Dividends totalling £233,000 (2024 - £350,000) were paid in the year in respect of shares held by the company's directors.

The group

 

The directors owed the group £408,693 (2024: £436,967) at the year end. Interest of £10,044 (2024: £11,025) was charged for the year.

 

The company

 

Advances
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
P Chapman
2.88
39,420
396,319
1,940
(233,000)
204,679
39,420
396,319
1,940
(233,000)
204,679
29
Controlling party

The ultimate controlling party is P & Mrs RJ Chapman, directors, by virtue of their shareholdings.

30
Cash (absorbed by)/generated from group operations
2025
2024
£
£
Profit after taxation
566,102
505,237
Adjustments for:
Taxation charged
189,157
167,396
Finance costs
245,219
93,784
Investment income
(15,020)
(17,868)
(Gain)/loss on disposal of tangible fixed assets
(6,365)
494
Gain on disposal of investment property
(117,972)
(69,205)
Fair value gain on investment properties
(323,752)
(130,795)
Depreciation and impairment of tangible fixed assets
22,052
20,736
Movements in working capital:
Decrease/(increase) in debtors
181,649
(979,946)
(Decrease)/increase in creditors
(1,388,052)
1,187,165
Cash (absorbed by)/generated from operations
(646,982)
776,998
- 33 -
PC HOLDINGS (SW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
31
Analysis of changes in net debt - group
1 September 2024
Cash flows
31 August 2025
£
£
£
Cash at bank and in hand
995,606
(73,493)
922,113
Borrowings excluding overdrafts
(2,136,671)
(1,233,789)
(3,370,460)
Obligations under finance leases
(52,307)
27,864
(24,443)
(1,193,372)
(1,279,418)
(2,472,790)
32
Prior period adjustments

Work in progress has been reclassified in the accounts of P Chapman Construction Limited as amounts due under contracts in debtors rather than included in stock. The amount reclassified in the comparative figures was £327,752.

 

Retentions included within debtors in the accounts of P Chapman Construction Limited have been analysed between falling due in less than and more than 1 year with £454,671 moved to falling due in more than 1 year.

 

Rental income in PC Properties (SW) Limited has been reclassified in the accounts as turnover rather than included in other operating income. The amount reclassified in the comparative figures was £283,211.

 

The prior period adjustments do not give rise to any effect upon equity.

33
Auditor's liability limitation agreement

For the year ended 31 August 2025 the company entered into a liability limitation agreement with its auditors, the principal terms of which limit the liability of the auditors to £5,000,000 in relation to their responsibilities as auditors of the company. The date this was agreed by the company was 31 March 2026.

- 34 -
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