Pegasus Fire Protection Company Limited Company accounts

COMPANY REGISTRATION NUMBER: SC178102

Pegasus Fire Protection Company Limited

Financial Statements

31 August 2025

Pegasus Fire Protection Company Limited

Financial Statements

Year ended 31 August 2025

Contents	Page

Strategic report	1

Directors' report	3

Independent auditor's report to the members	5

Statement of income and retained earnings	10

Statement of financial position	11

Statement of cash flows	12

Notes to the financial statements	13

Pegasus Fire Protection Company Limited

Strategic Report

Year ended 31 August 2025

Review of the business Pegasus Fire Protection Company Limited (PFP Limited) provides specialist subcontracting services to the construction industry, with particular expertise in partitioning, suspended ceilings, painting and decoration, and boarded fire protection. The Company remains committed to delivering high standards of workmanship and customer service. Key performance indicators Turnover & Margin During the year under review, turnover reduced; however, profitability was maintained through disciplined margin management and careful operational control by the Company’s site teams. The Company has also continued to exercise firm control over overhead expenditure as trading conditions remain affected by the wider economic environment. The Board remains focused on steering the Company through the challenging operating environment. Performance in the current financial year continues to be influenced by persistent raw material cost inflation, shortages of skilled labour, the increase in employers’ National Insurance contributions and the significant rise in the national minimum wage, all of which are expected to increase labour costs across the business. Notwithstanding these pressures, the Board believes that the strength of the Company’s balance sheet, together with timely and decisive management action where required, positions the business well to respond to current market conditions and to pursue opportunities as they arise. Financial risk management objectives and policies The Company uses a range of financial instruments in support of its operations. These principally include cash balances, trade debtors and trade creditors, which give rise to a number of financial risks that are managed as part of the Board’s overall financial oversight. Liquidity risk The Company manages liquidity risk by maintaining adequate cash resources and monitoring forecast cash requirements. Regular reviews of trading performance and cash flow projections are undertaken to ensure that sufficient funds are available to meet the Company’s obligations as they fall due. Credit risk The Company's principal credit risk arises from work in progress and trade debtors. Exposure to this risk is managed by the directors through the application of customer credit limits, taking into account industry reputation, trading history and agreed contractual payment terms.

This report was approved by the board of directors on 29 May 2026 and signed on behalf of the board by:

C Shaw

Director

Registered office:

25a Bankhead Drive

Sighthill

Edinburgh

EH11 4DN

Pegasus Fire Protection Company Limited

Directors' Report

Year ended 31 August 2025

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

Directors

The directors who served the company during the year were as follows:

W Sinclair
C Burns
C Shaw

Dividends

Particulars of recommended dividends are detailed in note 13 to the financial statements.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 judgments 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. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 29 May 2026 and signed on behalf of the board by:

C Shaw

Director

Registered office:

25a Bankhead Drive

Sighthill

Edinburgh

EH11 4DN

Pegasus Fire Protection Company Limited

Independent Auditor's Report to the Members of Pegasus Fire Protection Company Limited

Year ended 31 August 2025

Opinion

We have audited the financial statements of Pegasus Fire Protection Company Limited (the 'company') for the year ended 31 August 2025 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, 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 FRS 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; - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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 directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, 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 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 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.

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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK regulations and prohibited business practices, and we considered that the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override controls), and determined that the principal risks were related to the potential posting of inappropriate journal entries to manipulate financial results and management bias in accounting estimates. Audit procedures performed by the engagement team included: - Enquiry of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims. - Evaluation and testing of the operating effectiveness of management's controls designed to prevent and detect irregularities. - Identifying and testing journal entries based on risk criteria. - Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing. - Testing transactions entered into outside of normal course of operation. - Investigated the rationale behind significant or unusual transactions. - Reviewed accounting estimates for evidence of bias. - Performed analytical review and sample testing of income. - Agreed financial statement disclosures to supporting documentation. There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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 or intentional misrepresentations, or through collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. - Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. PB Audit Limited are eligible to act as auditors under the terms of Section 1212 of the Companies Act 2006.

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 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Craig Wallace B.Acc.(Hons), F.C.C.A.

(Senior Statutory Auditor)

For and on behalf of

PB Audit Limited

Chartered accountants & statutory auditor

18 North Street

Glenrothes

Fife

KY7 5NA

29 May 2026

Pegasus Fire Protection Company Limited

Statement of Income and Retained Earnings

Year ended 31 August 2025

		2025	2024
Note		£	£
Turnover	4	12,516,518	15,014,197

Cost of sales	7,742,824	10,800,798
	---------------	---------------
Gross profit	4,773,694	4,213,399

Administrative expenses		1,225,954	1,234,838
Other operating income	5	115,424	534,335
		--------------	--------------
Operating profit	6	3,663,164	3,512,896

Other interest receivable and similar income	10	245,252	225,154
Interest payable and similar expenses	11	28,501	980
		--------------	--------------
Profit before taxation		3,879,915	3,737,070

Tax on profit	12	981,362	930,749
		--------------	--------------
Profit for the financial year and total comprehensive income		2,898,553	2,806,321
		--------------	--------------

Dividends paid and payable	13	( 1,536,000)	( 1,366,500)

Retained earnings at the start of the year	11,692,850	10,253,029
	---------------	---------------
Retained earnings at the end of the year	13,055,403	11,692,850
	---------------	---------------

All the activities of the company are from continuing operations.

Pegasus Fire Protection Company Limited

Statement of Financial Position

31 August 2025

	2025	2024
Note	£	£

Fixed assets

Tangible assets	14	1,066,005	1,107,059

Current assets

Stocks	15	505,386	504,200
Debtors	16	1,742,546	3,358,110
Cash at bank and in hand		11,802,819	8,923,615
		---------------	---------------
		14,050,751	12,785,925

Creditors: amounts falling due within one year	17	1,980,707	2,149,491
		---------------	---------------
Net current assets		12,070,044	10,636,434
		---------------	---------------
Total assets less current liabilities		13,136,049	11,743,493

Provisions	18	68,646	38,643
		---------------	---------------
Net assets		13,067,403	11,704,850
		---------------	---------------

Capital and reserves

Called up share capital	21	12,000	12,000
Profit and loss account		13,055,403	11,692,850
		---------------	---------------
Shareholders funds		13,067,403	11,704,850
		---------------	---------------

These financial statements were approved by the board of directors and authorised for issue on 29 May 2026 , and are signed on behalf of the board by:

C Shaw

Director

Company registration number: SC178102

Pegasus Fire Protection Company Limited

Statement of Cash Flows

Year ended 31 August 2025

	2025	2024
	£	£

Cash flows from operating activities

Profit for the financial year	2,898,553	2,806,321

Adjustments for:
Depreciation of tangible assets	115,208	62,485
Other interest receivable and similar income	( 245,252)	( 225,154)
Interest payable and similar expenses	28,501	980
Loss/(gains) on disposal of tangible assets	5,341	( 4,099)
Tax on profit	981,362	930,749

Changes in:
Stocks	( 1,186)	3,250
Trade and other debtors	1,615,564	( 414,975)
Trade and other creditors	174,197	( 426,725)
	--------------	--------------
Cash generated from operations	5,572,288	2,732,832

Interest paid	( 28,501)	( 980)
Tax paid	( 1,294,340)	( 756,071)
	--------------	--------------
Net cash from operating activities	4,249,447	1,975,781
	--------------	--------------

Cash flows from investing activities

Purchase of tangible assets	( 208,495)	( 190,056)
Proceeds from sale of tangible assets	129,000	38,911
Cash advances and loans granted	–	( 150,000)
Interest received	245,252	225,154
	--------------	--------------
Net cash from/(used in) investing activities	165,757	( 75,991)
	--------------	--------------

Cash flows from financing activities

Dividends paid	( 1,536,000)	( 1,366,500)
	--------------	--------------
Net cash used in financing activities	( 1,536,000)	( 1,366,500)
	--------------	--------------

Net increase in cash and cash equivalents	2,879,204	533,290
Cash and cash equivalents at beginning of year	8,923,615	8,390,325
	---------------	--------------
Cash and cash equivalents at end of year	11,802,819	8,923,615
	---------------	--------------

Pegasus Fire Protection Company Limited

Notes to the Financial Statements

Year ended 31 August 2025

1. General information

The company is a private company limited by shares, registered in Scotland. The address of the registered office is 25a Bankhead Drive, Sighthill, Edinburgh, EH11 4DN.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

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 investment properties at fair value. The principal accounting policies adopted are set out below.

Cash at bank and in hand

Cash at bank and in hand 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.

Going concern

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

Equity instruments

Equity instruments issued by the company 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 company.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

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.

Retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the period they are payable.

Leases

Rentals payable under operating leases, including any lease incentives received, are charged to the profit and loss account 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 lease asset are consumed.

Government grants

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

Government grants relating to trading are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

Judgements and key sources of estimation uncertainty

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. 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. Accounting for long term contracts The company estimates the outcome of its long term contracts. This is normally measured by the proportion of the costs incurred to date compared to the estimated total contract costs, except where this would not be representative of the stage of completion. Estimated total contract costs are based on management's detailed budgets and projections. Where management judge that the outcome of a long term contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recovered.

Revenue recognition

Turnover, which is stated net of value added tax, represents amounts invoiced to third parties, except in respect of long term contracts where turnover represents the sales value of work done in the year, including estimates in respect of amounts not invoiced. Turnover in respect of long term contracts is calculated based on the estimated stage of completion compared to the overall value of the contract.

Income tax

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 company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. Deferred tax Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. 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 when the company has 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.

Operating leases

Lease income is recognised in profit or loss on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.

Tangible assets

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

Depreciation

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:

Fixtures and fittings	-	20% straight line
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 credited or charged to profit or loss. The carrying value of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

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.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stock and work in progress are valued at the lower of cost and net realisable value.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

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 company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with 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. Debtors Debtors with no stated interest rate or receivable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account. Creditors Creditors with no stated interest rate and payable within one year are recorded at transaction price. All interest bearing loans and borrowings which are basic financial instruments are initially recorded at the present value of cash payable. After initial recognition they are measured at amortised cost.

4. Turnover

Turnover arises from:

	2025	2024
	£	£
Construction contracts	12,516,518	15,014,197
	---------------	---------------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Other operating income

	2025	2024
	£	£
Rental income	76,047	45,855
Other operating income	39,377	488,480
	-----------	-----------
	115,424	534,335
	-----------	-----------

6. Operating profit

Operating profit or loss is stated after charging/crediting:

	2025	2024
	£	£
Depreciation of tangible assets	115,208	62,485
Loss/(gains) on disposal of tangible assets	5,341	( 4,099)
	-----------	---------

7. Auditor's remuneration

	2025	2024
	£	£
Fees payable for the audit of the financial statements	13,176	20,449
	---------	---------

8. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2025	2024
	No.	No.
Administrative staff	10	10
Direct Labour	53	57
	-----	-----
	63	67
	-----	-----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2025	2024
	£	£
Wages and salaries	2,594,698	2,953,688
Social security costs	298,629	273,581
Other pension costs	64,643	58,978
	--------------	--------------
	2,957,970	3,286,247
	--------------	--------------

9. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2025	2024
	£	£
Remuneration	240,345	307,027
Company contributions to defined contribution pension plans	11,126	6,603
	-----------	-----------
	251,471	313,630
	-----------	-----------

The number of directors who accrued benefits under company pension plans was as follows:

	2025	2024
	No.	No.
Defined contribution plans	3	3
	-----	-----

Remuneration of the highest paid director in respect of qualifying services:

	2025	2024
	£	£
Aggregate remuneration	108,174	157,041
	-----------	-----------

10. Other interest receivable and similar income

	2025	2024
	£	£
Interest on bank deposits	245,252	225,154
	-----------	-----------

11. Interest payable and similar expenses

	2025	2024
	£	£
Interest on banks loans and overdrafts	23,160	–
Interest on obligations under finance leases and hire purchase contracts	5,341	980
	---------	-----
	28,501	980
	---------	-----

12. Tax on profit

Major components of tax expense

	2025	2024
	£	£

Current tax:

UK current tax expense	951,359	944,341
Adjustments in respect of prior periods	–	( 4,007)
	-----------	-----------
Total current tax	951,359	940,334
	-----------	-----------

Deferred tax:

Origination and reversal of timing differences	30,003	( 9,585)
	-----------	-----------
Tax on profit	981,362	930,749
	-----------	-----------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2024: lower than) the standard rate of corporation tax in the UK of 25 % (2024: 25 %).

	2025	2024
	£	£
Profit on ordinary activities before taxation	3,879,915	3,737,070
	--------------	--------------
Profit on ordinary activities by rate of tax	969,979	934,268
Adjustment to tax charge in respect of prior periods	–	( 4,007)
Effect of expenses not deductible for tax purposes	–	488
Effect of capital allowances and depreciation	11,383	–
	--------------	--------------
Tax on profit	981,362	930,749
	--------------	--------------

13. Dividends

	2025	2024
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )	1,536,000	1,366,500
	--------------	--------------

14. Tangible assets

	Freehold property	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£
Cost
At 1 September 2024	786,346	54,050	602,698	1,443,094
Additions	–	–	208,495	208,495
Disposals	( 105,000)	–	( 133,581)	( 238,581)
	-----------	---------	-----------	--------------
At 31 August 2025	681,346	54,050	677,612	1,413,008
	-----------	---------	-----------	--------------
Depreciation
At 1 September 2024	–	53,127	282,908	336,035
Charge for the year	–	923	114,285	115,208
Disposals	–	–	( 104,240)	( 104,240)
	-----------	---------	-----------	--------------
At 31 August 2025	–	54,050	292,953	347,003
	-----------	---------	-----------	--------------
Carrying amount
At 31 August 2025	681,346	–	384,659	1,066,005
	-----------	---------	-----------	--------------
At 31 August 2024	786,346	923	319,790	1,107,059
	-----------	---------	-----------	--------------

Included within the above is investment property as follows:

	£
At 1 September 2024	786,346
Disposals	( 105,000)
	-----------
At 31 August 2025	681,346
	-----------

The directors consider the investment property to be stated at their fair value at the year end date.

15. Stocks

	2025	2024
	£	£
Raw materials and consumables	15,386	14,200
Work in progress	490,000	490,000
	-----------	-----------
	505,386	504,200
	-----------	-----------

16. Debtors

	2025	2024
	£	£
Trade debtors	614,437	850,090
Prepayments and accrued income	45,491	41,713
Gross amounts owed by contract customers	682,551	1,546,088
Other debtors	400,067	920,219
	--------------	--------------
	1,742,546	3,358,110
	--------------	--------------

17. Creditors: amounts falling due within one year

	2025	2024
	£	£
Trade creditors	954,366	821,025
Accruals and deferred income	487,292	639,492
Corporation tax	250,583	593,564
Social security and other taxes	77,277	66,881
Other creditors	211,189	28,529
	--------------	--------------
	1,980,707	2,149,491
	--------------	--------------

18. Provisions

	Deferred tax (note 19)
	£
At 1 September 2024	38,643
Additions	30,003
	---------
At 31 August 2025	68,646
	---------

19. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2025	2024
	£	£
Included in provisions (note 18)	68,646	38,643
	---------	---------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2025	2024
	£	£
Accelerated capital allowances	68,646	38,643
	---------	---------

20. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 64,643 (2024: £ 58,978 ).

21. Called up share capital

Issued, called up and fully paid

	2025		2024
	No.	£	No.	£
A Ordinary shares of £ 1 each	4,200	4,200	4,200	4,200
B Ordinary shares of £ 1 each	4,200	4,200	4,200	4,200
C Ordinary shares of £ 1 each	900	900	900	900
D Ordinary shares of £ 1 each	900	900	900	900
E Ordinary shares of £ 1 each	900	900	900	900
F Ordinary shares of £1 each	900	900	900	900
	---------	---------	---------	---------
	12,000	12,000	12,000	12,000
	---------	---------	---------	---------

22. Analysis of changes in net debt

	At 1 Sep 2024	Cash flows	At 31 Aug 2025
	£	£	£
Cash at bank and in hand	8,923,615	2,879,204	11,802,819
	--------------	--------------	---------------

23. Related party transactions

Transactions with related parties During the year the company entered into the following transactions with related parties: Purchase of goods

	2025	2024
	£	£
Associated entities through common directorships	233,826	457,718
Other related parties	46,813	49,333
	280,639	507,051

Loan interest received

	2025	2024
	£	£
Loan interest received - Other related parties	8,279	36,667

The following amounts were due by the company at the reporting end date: Amounts owed to related parties

	2025	2024
	£	£
Associated entities through common directorships	21,801	29,296

The following amounts were due to the company at the reporting end date: Amounts owed by related parties

	2025	2024
	£	£
Other related parties	12,500	512,500

All related party transactions undertaken by the company were in the ordinary course of business. No guarantees have been given or received over any of the above balances.