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REGISTERED NUMBER: 02137982 (England and Wales)

| Strategic Report, Report of the Directors and |

| Audited Financial Statements |

| for the Year Ended 31 May 2025 |

| for |

| Morgans of Usk Limited |

Morgans of Usk Limited (Registered number: 02137982)

Contents of the Financial Statements

for the Year Ended 31 May 2025

Page |

Company Information | 1 |

Strategic Report | 2 |

Report of the Directors | 11 |

Report of the Independent Auditors | 13 |

Statement of Comprehensive Income | 17 |

Balance Sheet | 18 |

Statement of Changes in Equity | 19 |

Notes to the Financial Statements | 20 |

Morgans of Usk Limited

Company Information

for the Year Ended 31 May 2025

| DIRECTORS: | A J Morgan

| N D Morgan

| S J Smith

| D W Morgan

| J A Price

| SECRETARY: | R H T Davies

| REGISTERED OFFICE: | 21 Gold Tops

| Newport

| South Wales

| NP20 4PG

| REGISTERED NUMBER: | 02137982 (England and Wales)

| AUDITORS: | Ellis Lloyd Jones Audit Limited

| 11 Park Square

| Newport

| NP20 4EL

Morgans of Usk Limited (Registered number: 02137982)

Strategic Report

for the Year Ended 31 May 2025

The directors present their Strategic Report for the company for the year ended 31 May 2025.

The principal activities of the company continued during the year and comprise the design, manufacture and erection of steel framed structures, together with associated research and development activities.

The directors aim to provide a balanced and comprehensive review of the company's development, performance and position at the year end. The review has been prepared in a manner consistent with the size and complexity of the business and reflects the principal risks and uncertainties faced by the company.

REVIEW OF BUSINESS

The results for the year and the financial position of the company are set out in the accompanying financial statements.

Steel supply remained stable throughout the year and raw material pricing has generally normalised following the disruption previously caused by Covid-19 and Brexit.

Development and Performance:

Both of the company's steel production facilities continued to perform strongly during the year and were capable of fulfilling the majority of customer orders internally, with subcontractors utilised primarily to support periods of peak demand.

The directors consider the following to be the company's key financial performance indicators:

| 2025 |  | 2024 |  | 2023 |

| As restated |  |

Gross profit margin |  | 32.45% |  | 27.63% |  | 26.24% |

Profit after tax margin |  | 15.77% |  | 10.89% |  | 10.94% |

Return on capital employed |  | 50.25% |  | 34.47% |  | 48.14% |

Turnover increased from £42,835,080 (as restated) to £54,503,274 during the year, representing growth of £11,668,194 (27.24%).

Operating profit increased from £5,750,779 (as restated) to £10,689,911, while profit before taxation rose from £6,214,362 (as restated) to £11,454,200.

The key performance indicators demonstrate a significant improvement compared with the previous financial year, with increased profitability and improved margins. The directors anticipate further margin improvements during the year ending 31 May 2026 and remain positive regarding the company's future prospects.

The company continues to focus on operational efficiency, margin enhancement and long-term returns. The directors remain optimistic regarding future growth and profitability, supported by the continued commitment and hard work of the management team and employees.

During the year, the company invested £565,893 in plant and machinery upgrades to increase manufacturing capacity and capability, providing a platform for future expansion.

Morgans of Usk Limited (Registered number: 02137982)

Strategic Report

for the Year Ended 31 May 2025

PRINCIPAL RISKS AND UNCERTAINTIES

The business environment remains challenging and the company continues to monitor a number of key risks and uncertainties, including:

Raw Material Costs

Raw material costs remain a significant factor in contract pricing and have experienced volatility in recent years. Material prices are monitored closely to ensure that any impact on contract profitability can be identified promptly and procurement decisions adjusted accordingly. However, material prices have remained relatively stable during the current year.

Supply Chain

Global supply chain disruptions have affected many industries and may lead to increased lead times. The company has mitigated these risks through careful planning and close monitoring of stock levels and supplier performance.

Geopolitical Conflict

Although the company has no direct customers or suppliers in Ukraine, Russia or Iran, management continues to monitor the ongoing geopolitical conflicts and their potential impact on the wider economy. The directors believe the direct impact on the company will be minimal, although increased energy costs remain a potential risk.

Skilled Labour

The availability of skilled labour continues to present a challenge within the industry. However, the company has continued to successfully recruit and retain both domestic labour and the extensive use of foreign labour to support workshop operations.

Despite these challenges, the company continues to experience a strong level of enquiries and maintains a solid success rate across a broad customer base of established sound contractors. During the year, the company secured work with several new major contractors and has established positive working relationships with them.

The directors recognise that future business development plans may be affected by unforeseen events and external economic factors beyond the company's control.

Morgans of Usk Limited (Registered number: 02137982)

Strategic Report

for the Year Ended 31 May 2025

SECTION 172(1) STATEMENT

The Section 172 Regulations require companies to explain how the directors have fulfilled their duties under Section 172 of the Companies Act 2006, specifically their obligation to promote the long-term success of the company for the benefit of its members as a whole. In carrying out these duties, directors must have regard to, among other matters:

- the likely long-term consequences of decisions;

- the interests and wellbeing of employees;

- the importance of maintaining strong relationships with suppliers, customers, and other stakeholders;

- the impact of the company's operations on the community and the environment;

- the desirability of maintaining high standards of business conduct; and

- the need to act fairly between members of the company.

Decision Making

The Board of Directors is responsible for the strategic direction and overall management of the company. The Board meets periodically throughout the year and undertakes an annual review of the company's business strategy, considering both short-term priorities and long-term objectives to support sustainable growth and shareholder value.

The directors collectively bring a broad range of expertise and industry experience across management, finance, engineering, and operations, enabling informed decision-making and ensuring the company continues to meet the evolving needs of the business and its stakeholders.

Interests of Employees

The company recognises that its employees are fundamental to the continued success and growth of the business.

The company is committed to being a responsible employer by providing fair remuneration, promoting equal opportunities, and supporting an inclusive working environment. Employee training and professional development are actively encouraged, with opportunities for growth identified through the annual appraisal process.

The health, safety, and wellbeing of employees remain a key priority. Regular monthly meetings are held to review health and safety matters and identify areas for continuous improvement. A non-financial KPI monitors the number and severity of work related accidents. In the year to 31 May 2025, there were no 'notifiable' accidents and only 1 'loss-time' incident recorded (2024: 1 'notifiable' accident and 3 'lost-time' incidents).

Impact on the Community and Environment

The directors acknowledge the impact that the company's activities may have on the local community and the wider environment. The company is committed to operating responsibly and takes its corporate social responsibilities seriously, particularly in relation to environmental awareness and maintaining positive relationships with neighbouring communities.

Morgans of Usk Limited (Registered number: 02137982)

Strategic Report

for the Year Ended 31 May 2025

Maintaining High Standards of Business Conduct

The directors are committed to conducting the company's affairs responsibly, ethically, and with integrity. Strong corporate governance and high standards of business conduct are central to the company's culture and operations.

The company seeks to ensure compliance with all applicable laws and regulations and expects employees to act honestly, professionally, and respectfully in all business dealings. To support these standards, the company maintains a number of policies, including anti-bribery, business conduct, anti-slavery and human trafficking, and whistleblowing policies. The company tracks any instances of non-compliance in its non-financial KPIs and none were recorded in the year to 31 May 2025 (2024: none).

Acting Fairly Between Members of the Company

The Board aims to act fairly, responsibly, and transparently in relation to all shareholders. Open and effective communication with members of the company is considered essential, and the directors remain committed to ensuring shareholders are treated equitably and kept appropriately informed on matters affecting the business.

BUSINESS MODEL AND ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

The company deploys its products and services generally within the UK, with a nationwide sales force and 2 manufacturing sites in South Wales. The company has a diverse range of customers, ranging from large corporate entities to smaller individual businesses. Contracts have included hospitals, schools, data centers and production facilities.

The company regards its relationships with suppliers, customers, and other key third parties as fundamental to the continued success of the business. It is committed to fostering professional and ethical relationships with these stakeholders and engages with them regularly through a variety of communication channels, including face-to-face and virtual meetings, email correspondence, and telephone conversations.

The company also seeks to work with organisations that share similar values and standards, including holding recognised accreditations such as BS8555 Environmental Management Systems, which align with the company's own commitment to environmental and operational excellence.

Morgans of Usk Limited (Registered number: 02137982)

Strategic Report

for the Year Ended 31 May 2025

STREAMLINED ENERGY AND CARBON REPORTING

Morgans of Usk Limited - Greenhouse Gas Emissions, Energy Consumption & Energy Efficiency 2024/2025

During the financial year ended 31 May 2025, Morgans of Usk Ltd has complied with the requirements of the Streamlined Energy and Carbon Reporting (SECR) Regulations.

The Company operates steel fabrication activities across two manufacturing facilities in South Wales. Energy consumption arises primarily from electricity used in fabrication processes, plant and machinery, alongside fuel usage associated with heating systems and company-operated vehicles, including forklifts, shunters, and vans.

Energy Consumption and Emissions

The Company's total UK energy-related greenhouse gas emissions for the year were 646.20 tCO2e, comprising:

- Scope 1 emissions (direct fuel use):

Diesel, kerosene, and propane used in operations and heating

- Scope 2 emissions (purchased electricity):

Electricity consumed across both operational sites

An additional voluntary disclosure has been included for emissions arising from mains water consumption.

Diesel remains the largest contributor to Scope 1 emissions, while electricity continues to represent the largest single source of energy consumption.

Intensity Metrics

To provide a meaningful comparison of emissions performance, the Company reports the following intensity ratios:

- 5.01 tCO2e per employee (based on an average of 129 employees)

- 11.86 tCO2e per £1 million turnover, based on turnover of £54,503,274

These metrics enable the Company to assess carbon efficiency relative to workforce size and financial performance.

Organisational Overview

Morgans of Usk Ltd is a steel fabrication company operating from two manufacturing sites in South Wales.

The principal sources of energy consumption and greenhouse gas emissions include:

- Purchased electricity (fabrication processes and office operations)

- Diesel fuel (plant machinery, forklifts, and vehicles)

- Liquefied Petroleum Gas (propane) for heating

- Kerosene for heating boilers

- Mains water consumption (reported voluntarily)

SECR Reporting Boundary and Scope

Morgans of Usk Limited (Registered number: 02137982)

Strategic Report

for the Year Ended 31 May 2025

This disclosure has been prepared in accordance with the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.

Scope Included

- UK operations only

- Scope 1: Direct fuel combustion (diesel, kerosene, propane)

- Scope 2: Indirect emissions from purchased electricity

Scope Excluded

- Scope 3 emissions (not mandatory under SECR), except for voluntary water disclosure

Energy Consumption and Emissions (For the accounting period Year ending 31 May 2025)

Energy Source |  | Energy/units |  | tCO2e |  | tCO2e per employee |  | tCO2e per £1M revenue |

Electricity consumption |  | 1,361,243 kWh |  | 281.879 |  | 2.291 |  | 5.17 |

Propane gas |  | 6,695 L |  | 10.320 |  | 0.083 |  | 0.19 |

Diesel |  | 136,600 L |  | 338.606 |  | 2.752 |  | 6.21 |

Kerosene oil |  | 4,700 L |  | 14.860 |  | 0.121 |  | 0.27 |

Mains water * |  | 1,590.24 m3 |  | 0.537 |  | 0.004 |  | 0.01 |

Totals |  | N/A |  | 646.202 |  | 5.254 |  | 11.86 |

*Water emissions included as a voluntary disclosure.

Methodology

Calculations have been performed using:

- Annual consumption data derived from internal monitoring systems

- UK Government 2024 Greenhouse Gas Conversion Factors for Company Reporting

Key Conversion Factors Applied

- Electricity: 0.20705 kgCO2e/kWh

- Diesel: 2.47887 kgCO2e/litre

- Kerosene: 3.16262 kgCO2e/litre

- Propane: 1.54140 kgCO2e/litre

- Water: ~0.339 kgCO2e/m³

All emissions are reported in tonnes of carbon dioxide equivalent (tCO2e).

Energy Efficiency Actions

During the reporting period, Morgans of Usk Ltd has undertaken several measures to improve energy efficiency and reduce emissions, including:

Morgans of Usk Limited (Registered number: 02137982)

Strategic Report

for the Year Ended 31 May 2025

- Ongoing monitoring and optimisation of electricity consumption

- Maintenance and efficiency improvements to plant and machinery

- Continued control and tracking of fuel usage across fleet and site operations

- Monitoring of vehicle fuel performance

- Promotion of energy awareness among employees

In addition, solar generation at the Ontario Works site contributed approximately 30% of that site's electricity demand during part of the reporting period.

Future Initiatives

- Continued evaluation of energy-efficient equipment upgrades

- Further reduction of diesel use through operational efficiencies

- Ongoing monitoring and benchmarking of emissions intensity

Year on Year Performance Comparison

Metric |  | 2022-23 |  | 2023-24 |  | 2024-25 |  | Change |

Total emissions (tCO2e) |  | 530.9 |  | 562.58 |  | 646.2 |  | Increase |

tCO2e per employee |  | 4.25 |  | 4.167 |  | 5.254 |  | Increase |

tCO2e per £1m revenue |  | 11.4 |  | 13.13 |  | 11.86 |  | Improvement |

Commentary

- Total emissions increased, driven primarily by higher electricity consumption associated with operational growth and new equipment installation

- Diesel consumption decreased slightly but remains the largest emission source

- Emissions per employee increased due to reduced workforce levels and increased energy demand

- Emissions intensity per £1m revenue decreased due to the increase in turnover to £54.5m, indicating improved carbon efficiency relative to business output

Performance and Outlook

While total emissions have increased in line with operational growth, the Company has improved emissions efficiency relative to turnover.

Morgans of Usk Ltd remains committed to:

- Monitoring energy consumption and emissions

- Improving operational energy efficiency

- Investing in lower-carbon technologies

- Aligning with SECR requirements and industry best practice

SECR Compliance Statement

This report has been prepared in accordance with SECR requirements and includes:

- UK energy use and associated greenhouse gas emissions

Morgans of Usk Limited (Registered number: 02137982)

Strategic Report

for the Year Ended 31 May 2025

- Scope 1 and Scope 2 emissions

- Intensity ratios

- Prior year comparative information

- Methodology and conversion factors

- Energy efficiency actions undertaken

Appendix A - Conversion Factors

Conversion rates of fossil fuels as provided in UK Gov 2024 data ratings were used from the table below, available from UK Gov website:

https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2024

Fuel |  | Unit |  | kg CO2e |  | kg CO2e of CO2 per unit |

Fuel oil (Kerosene) |  | tonnes |  | 3228.89 |  | 3216.38 |

| litres |  | 3.17 |  | 3.16262 |

| kWh (net CV) |  | 0.29 |  | 0.28413 |

| kWh (Gross CV) |  | 0.27 |  | 0.26709 |

Diesel (average biofuel blend) |  | tonnes |  | 3015.65 |  | 2976.42 |

| litres |  | 2.51 |  | 2.47887 |

| kWh (net CV) |  | 0.25 |  | 0.25076 |

| kWh (Gross CV) |  | 0.24 |  | 0.23595 |

Propane (fuel gas at Pontypool) |  | tonnes |  | 2997.63 |  | 2993.40 |

| litres |  | 1.54 |  | 1.54140 |

| kWh (net CV) |  | 0.23 |  | 0.23225 |

| kWh (gross CV) |  | 0.21 |  | 0.21381 |

Activity |  | Country |  | Unit Year |  | kg CO2e |

Electricity generated |  | Electricity: UK |  | kWh 2024 |  | 0.20705 |

Activity |  | Type |  | Unit |  | kg CO2e |

Water supply |  | Water supply |  | cubic metres |  | 0.15311 |

| million litres |  | 153.10865 |

Water treatment |  | Water treatment |  | cubic metres |  | 0.18574 |

| million litres |  | 185.74120 |

Morgans of Usk Limited (Registered number: 02137982)

Strategic Report

for the Year Ended 31 May 2025

FINANCIAL INSTRUMENTS

The company's financial instruments comprise bank balances, bank overdrafts, trade creditors, trade debtors and intercompany loans. The principal purpose of these instruments is to support and finance the company's operations.

Due to the nature of the financial instruments used, the company has minimal exposure to price risk. The company's policies for managing other financial risks are outlined below.

Liquidity risk relating to bank balances is managed through maintaining an appropriate balance between continuity of funding and flexibility by means of effective cash flow management.

Trade creditor liquidity risk is managed by ensuring sufficient funds are available to meet liabilities as they fall due.

Trade debtor credit and cash flow risks are managed through established credit control procedures, including regular monitoring of outstanding balances, customer credit limits and payment performance.

The company also undertakes the following measures to manage operational and commercial risks:

" minimising bad debt exposure through detailed assessment of customers' financial standing;

" obtaining material quotations from multiple suppliers to encourage competitive pricing;

" seeking to fix raw material prices in advance wherever possible to align with contract costings;

" incorporating contractual provisions permitting price increases where fixed pricing is not achievable; and

" issuing formal order acknowledgements confirming contract terms and agreed stage payment arrangements throughout the duration of projects.

ON BEHALF OF THE BOARD:

D W Morgan - Director

28 May 2026

Morgans of Usk Limited (Registered number: 02137982)

Report of the Directors

for the Year Ended 31 May 2025

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

DIVIDENDS

Interim dividends per share were paid as follows:

£40 |  | - 4 October 2024

£40 |  | - 31 May 2025

£80 |

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 May 2025 will be £ 4,000,000 .

RESEARCH AND DEVELOPMENT

The company conducts research and development projects aimed at improving and enhancing its processes and procedures. Projects are undertaken on an ad-hoc basis when opportunities are identified rather than being a constant ongoing process. The directors continually review the design and fabrication processes undertaken by the company to seek out competitive advantage and streamline the supply chain.

FUTURE DEVELOPMENTS

The company continues to successfully expand its market share across Wales and England, working directly with local authorities, the Welsh Government, and private sector companies. The company will continue to review, invest in, and modernise, the manufacturing practices and equipment employed to improve efficiency and overall customer satisfaction.

DIRECTORS

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

A J Morgan

N D Morgan

S J Smith

D W Morgan

Other changes in directors holding office are as follows:

J A Price - appointed 25 June 2024

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with Section 414C(11) Companies Act 2006 to set out its strategic report information required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulations 2008. It has done so in respect of stakeholder engagement, energy and emissions, and financial risk.

Morgans of Usk Limited (Registered number: 02137982)

Report of the Directors

for the Year Ended 31 May 2025

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- | select suitable accounting policies and then apply them consistently;

- | make judgements and accounting estimates that are reasonable and prudent;

- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Ellis Lloyd Jones Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D W Morgan - Director

28 May 2026

Report of the Independent Auditors to the Members of

Morgans of Usk Limited

Opinion

We have audited the financial statements of Morgans of Usk Limited (the 'company') for the year ended 31 May 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- | give a true and fair view of the state of the company's affairs as at 31 May 2025 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Report of the Independent Auditors to the Members of

Morgans of Usk Limited

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page twelve, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of

Morgans of Usk Limited

Auditors' responsibilities for the audit of the financial statements

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

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:

We gained an understanding of the legal and regulatory framework applicable to the company, and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. As in all our audits, we evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and misappropriation of assets. Audit procedures performed included:

- Discussions with management, including consideration of known or suspected instances of actual and potential litigation and claims, non-compliance with laws and regulation and fraud;

- Identifying and reviewing journal entries to ensure that we understood the reasoning behind them and agreeing that they were appropriate;

- Evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias;

- Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing; and

- Agreeing the financial statement disclosures to underlying supporting documentation.

There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud.

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

Report of the Independent Auditors to the Members of

Morgans of Usk Limited

Use of our report

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

Kara Williams BSc BFP FCA (Senior Statutory Auditor)

for and on behalf of Ellis Lloyd Jones Audit Limited

11 Park Square

Newport

NP20 4EL

28 May 2026

Morgans of Usk Limited (Registered number: 02137982)

Statement of Comprehensive Income

for the Year Ended 31 May 2025

| 31.5.25 | 31.5.24 |

| as restated |

| Notes | £ | £ | £ | £ |

TURNOVER | 4 | 54,503,274 |  | 42,835,080 |  |

Cost of sales | 36,819,605 |  | 30,999,755 |  |

GROSS PROFIT | 17,683,669 |  | 11,835,325 |  |

Distribution costs | 389,581 |  | 474,338 |  |

Administrative expenses | 6,606,945 |  | 5,615,705 |  |

|  |  | 6,996,526 |  |  |  |  | 6,090,043 |  |

10,687,143 |  | 5,745,282 |  |

Other operating income | 5 | 2,768 |  | 5,497 |  |

OPERATING PROFIT | 8 | 10,689,911 |  | 5,750,779 |  |

Interest receivable and similar income | 10 | 764,289 |  | 463,583 |  |

PROFIT BEFORE TAXATION | 11,454,200 |  | 6,214,362 |  |

Tax on profit | 11 | 2,856,988 |  | 1,548,534 |  |

PROFIT FOR THE FINANCIAL YEAR | 8,597,212 |  | 4,665,828 |  |

OTHER COMPREHENSIVE INCOME | - |  | - |  |

TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 8,597,212 |  | 4,665,828 |  |

Prior year adjustment | 13 | 3,340,353 |  |

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT | 11,937,565 |  |

Morgans of Usk Limited (Registered number: 02137982)

Balance Sheet

31 May 2025

| 31.5.25 | 31.5.24 |

| as restated |

| Notes | £ | £ | £ | £ |

FIXED ASSETS

Tangible assets | 14 | 1,709,825 |  | 1,788,541 |  |

CURRENT ASSETS

Stocks | 15 | 148,830 |  | 210,042 |  |

Debtors | 16 | 13,619,703 |  | 12,496,750 |  |

Cash at bank and in hand | 18,658,774 |  | 14,673,931 |  |

32,427,307 |  | 27,380,723 |  |

CREDITORS

Amounts falling due within one year | 17 | 12,862,655 |  | 12,485,755 |  |

NET CURRENT ASSETS | 19,564,652 |  | 14,894,968 |  |

TOTAL ASSETS LESS CURRENT LIABILITIES | 21,274,477 |  | 16,683,509 |  |

PROVISIONS FOR LIABILITIES | 20 | 288,062 |  | 294,306 |  |

NET ASSETS | 20,986,415 |  | 16,389,203 |  |

CAPITAL AND RESERVES

Called up share capital | 21 | 50,000 |  | 50,000 |  |

Retained earnings | 22 | 20,936,415 |  | 16,339,203 |  |

SHAREHOLDERS' FUNDS | 20,986,415 |  | 16,389,203 |  |

The financial statements were approved by the Board of Directors and authorised for issue on 28 May 2026 and were signed on its behalf by:

D W Morgan - Director

A J Morgan - Director

Morgans of Usk Limited (Registered number: 02137982)

Statement of Changes in Equity

for the Year Ended 31 May 2025

| Called up |

| share |  | Retained |  | Total

| capital |  | earnings |  | equity

£ | £ | £ |

Balance at 1 June 2023 | 50,000 |  | 12,673,375 |  | 12,723,375 |  |

Changes in equity

Dividends | - |  | (1,000,000 | ) | (1,000,000 | ) |

Total comprehensive income | - |  | 1,325,475 |  | 1,325,475 |  |

Balance at 31 May 2024 | 50,000 |  | 12,998,850 |  | 13,048,850 |  |

Prior year adjustment | - |  | 3,340,353 |  | 3,340,353 |  |

As restated | 50,000 |  | 16,339,203 |  | 16,389,203 |  |

Changes in equity

Dividends | - |  | (4,000,000 | ) | (4,000,000 | ) |

Total comprehensive income | - |  | 8,597,212 |  | 8,597,212 |  |

Balance at 31 May 2025 | 50,000 |  | 20,936,415 |  | 20,986,415 |  |

Morgans of Usk Limited (Registered number: 02137982)

Notes to the Financial Statements

for the Year Ended 31 May 2025

1. | STATUTORY INFORMATION

| Morgans of Usk Limited is a private company, limited by shares and is incorporated in England and Wales. The company's registered number is 02137982 and the address of its registered office is 21 Gold Tops, Newport, South Wales, NP20 4PG. The principal place of business is at Woodside Works, Usk, Monmouthshire, NP15 1SS.

| The company is a wholly owned subsidiary of Morgans of Usk Group Limited. It is included in the consolidated financial statements of Morgans of Usk Group Limited which are publicly available.

| The principal activities of the company continued during the year and comprise the design, manufacture and erection of steel framed structures, together with associated research and development activities.

| These financial statements are the company's separate financial statements, covering the year to

| 31 May 2025 and are presented in Sterling (£), the company's functional currency, rounded to the nearest pound.

| The significant accounting policies applied in the presentation of these financial statements are set out below. These policies have been consistently applied to all periods presented unless otherwise stated.

2. | STATEMENT OF COMPLIANCE

| The individual financial statements of Morgans of Usk Limited have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") and the Companies Act 2006.

3. | ACCOUNTING POLICIES

| Basis of preparing the financial statements

| These financial statements have been prepared under the historical cost convention.

| Financial Reporting Standard 102 - reduced disclosure exemptions

| The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

| • | the requirements of Section 7 Statement of Cash Flows.

| The company is a subsidiary of Morgans of Usk Group Limited, the financial statements of which can be obtained from Companies House.

| Related party exemption

| The company has taken advantage of the exemption under S33.1A of the Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' not to disclose group transactions as this company is a wholly owned subsidiary and its fellow subsidiaries are too.

Morgans of Usk Limited (Registered number: 02137982)

Notes to the Financial Statements - continued

for the Year Ended 31 May 2025

3. | ACCOUNTING POLICIES - continued

| Critical accounting judgements and key sources of estimation uncertainty

| Estimates and judgements are continually evaluated and are based on historical experience and other relevant factors, including expectations of future events that are believed to be reasonable under the circumstances.The preparation of the financial statements requires management to make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, be likely to differ from the related actual results. The estimates and assumptions that have a significant risk of causing material adjustments to the carrying amounts of assets and liabilities within the next financial year are addressed below.

| Gross amounts due from/to customers for contract work and recognition of income

| Turnover and profit are recognised as contract activity progresses which could be a risk as the turnover and gross amounts due from/to customers recognised are based on the company's assessment of the time spent, skills and expertise provided.

| Depreciation

| Judgment is used to determine the useful economic lives and residual values of tangible fixed assets. The assets are depreciated down to their estimated residual values over their estimated useful lives. This represents a risk as it is based on the directors' estimation of the assets useful economic life.

| Turnover, revenue recognition & amounts due to/from customers for contracts

| Turnover represents the fair value of the sale of materials and services of labour (excluding value added tax) provided during the year on client projects. Turnover is recognised on a project by project basis based on percentage completion at the year end. Percentage completion is determined by costs incurred to date as a percentage of total project costs.

| Uninvoiced turnover being costs recognised as contract expenses plus recognised profits less recognised losses and progress billings on individual client projects is included in "gross amounts due from customers for contract work". Where individual on-account billings exceed revenue recognised on client projects, the excess is included as "gross amounts due to customers for contract work".

| Tangible fixed assets

| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter:

| Leasehold property - over the lease term

| Plant and machinery - 10 - 25% on a reducing balance basis and on a straight line basis

| Fixtures and fittings - 25% on a straight line basis and on a reducing balance basis

| Motor vehicles - 25% on a reducing balance basis

| Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

| Inventories

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

| Cost includes actual cost of purchase and other costs incurred in bringing stock to its present condition using the first in first out basis.

Morgans of Usk Limited (Registered number: 02137982)

Notes to the Financial Statements - continued

for the Year Ended 31 May 2025

3. | ACCOUNTING POLICIES - continued

| Taxation

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

| Current or deferred taxation assets and liabilities are not discounted.

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

| Current and deferred tax

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

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

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

| Research and development

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

| Foreign currencies

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

| Hire purchase and leasing commitments

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

| Pension costs and retirement benefits

| Pension costs represent payments made to employees' personal pension plans in the period, together with payments to a defined contribution scheme for directors.

| Contributions payable in the year are charged to the profit and loss account in the period to which they relate.

| Other income

| Other income is included when receivable by the company.

Morgans of Usk Limited (Registered number: 02137982)

Notes to the Financial Statements - continued

for the Year Ended 31 May 2025

3. | ACCOUNTING POLICIES - continued

| Non-derivative financial instruments

| Financial assets and financial liabilities are recognised in the company's balance sheet when the company becomes a party to the contractual provisions of the instrument.

| Non-derivative financial instruments comprise trade and other debtors, cash and cash equivalents, trade and other creditors and interest free loans.

| Debtors and creditors with no stated interest rate are receivable or payable within one year and are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

| Cash and cash equivalents comprise cash at bank and in hand. For the purpose of the cash flow statement cash and cash equivalents are net of bank overdrafts and advances which are repayable on demand.

| Loans and borrowings and concessionary loans are initially recognised at transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method less impairment. If an arrangement constitutes a finance transaction it is measured at present value. Loans and borrowings receivable within one year are not discounted.

4. | TURNOVER

| The turnover and profit before taxation are attributable to the one principal activity of the company.

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

| 31.5.25 |  | 31.5.24

| as restated |

£ | £ |

| Construction contract services | 54,503,274 |  | 42,835,080 |  |

54,503,274 |  | 42,835,080 |  |

| An analysis of turnover by geographical market is given below:

| 31.5.25 |  | 31.5.24

| as restated |

£ | £ |

| United Kingdom | 54,503,274 |  | 42,835,080 |  |

54,503,274 |  | 42,835,080 |  |

Morgans of Usk Limited (Registered number: 02137982)

Notes to the Financial Statements - continued

for the Year Ended 31 May 2025

5. | OTHER OPERATING INCOME

| 31.5.25 |  | 31.5.24

| as restated |

£ | £ |

| Other rents received | 1,500 |  | 5,497 |  |

| Solar income | 1,268 |  | - |  |

2,768 |  | 5,497 |  |

6. | EMPLOYEES AND DIRECTORS

| 31.5.25 |  | 31.5.24

| as restated |

£ | £ |

| Wages and salaries | 6,858,024 |  | 6,150,327 |  |

| Social security costs | 798,383 |  | 704,719 |  |

| Other pension costs | 361,895 |  | 316,913 |  |

8,018,302 |  | 7,171,959 |  |

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

| 31.5.25 |  | 31.5.24

| as restated |

| Directors | 5 |  | 4 |  |

| Production | 119 |  | 116 |  |

| Administration | 5 |  | 4 |  |

129 |  | 124 |  |

7. | DIRECTORS' EMOLUMENTS

| 31.5.25 |  | 31.5.24

| as restated |

£ | £ |

| Directors' remuneration | 217,000 |  | 217,000 |  |

| Directors' pension contributions to money purchase schemes | 100,000 |  | 60,000 |  |

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

| Money purchase schemes | 2 |  | 4 |  |

| Information regarding the highest paid director is as follows:

| 31.5.25 |  | 31.5.24

| as restated |

£ | £ |

| Emoluments etc | 108,000 |  | 108,000 |  |

Morgans of Usk Limited (Registered number: 02137982)

Notes to the Financial Statements - continued

for the Year Ended 31 May 2025

7. | DIRECTORS' EMOLUMENTS - continued

| The remuneration of key management personnel is the same as that for the directors.

8. | OPERATING PROFIT

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

| 31.5.25 |  | 31.5.24

| as restated |

£ | £ |

| Hire of plant and machinery | 3,634 |  | 5,508 |  |

| Other operating leases | 385,947 |  | 436,705 |  |

| Depreciation - owned assets | 633,075 |  | 502,570 |  |

| Profit on disposal of fixed assets | (16,431 | ) | - |  |

| Foreign exchange differences | 2,856 |  | (333 | ) |

9. | AUDITORS' REMUNERATION

| 31.5.25 |  | 31.5.24

| as restated |

£ | £ |

| Fees payable to the company's auditors and their associates for the audit of the company's financial statements | 33,100 |  | 30,600 |  |

| In addition to the auditors' remuneration above, the company incurred £ nil (2024: £14,400) for fees payable to the company's auditor for other services provided.

10. | INTEREST RECEIVABLE AND SIMILAR INCOME |

| 31.5.25 |  | 31.5.24

| as restated |

£ | £ |

| Bank interest received | 698,118 |  | 463,583 |  |

| Corporation tax interest | 66,171 |  | - |  |

764,289 |  | 463,583 |  |

Morgans of Usk Limited (Registered number: 02137982)

Notes to the Financial Statements - continued

for the Year Ended 31 May 2025

11. | TAXATION

| Analysis of the tax charge

| The tax charge on the profit for the year was as follows:

| 31.5.25 |  | 31.5.24

| as restated |

£ | £ |

| Current tax:

| UK corporation tax | 2,863,232 |  | 1,442,488 |  |

| Deferred tax | (6,244 | ) | 106,046 |  |

| Tax on profit | 2,856,988 |  | 1,548,534 |  |

| UK corporation tax has been charged at 25% (2024 - 25%).

| Reconciliation of total tax charge included in profit and loss

| The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

| 31.5.25 |  | 31.5.24

| as restated |

£ | £ |

| Profit before tax | 11,454,200 |  | 6,214,362 |  |

| Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%) | 2,863,550 |  | 1,553,591 |  |

| Effects of:

| Expenses not deductible for tax purposes | 5,030 |  | - |  |

| Capital allowances in excess of depreciation | - |  | (106,046 | ) |

| Depreciation in excess of capital allowances | 6,244 |  | - |  |

| Accelerated capital allowances | (6,244 | ) | 106,046 |  |

| Group relief | (11,592 | ) | (5,057 | ) |

| Total tax charge | 2,856,988 |  | 1,548,534 |  |

12. | DIVIDENDS

| 31.5.25 |  | 31.5.24

| as restated |

£ | £ |

| Ordinary shares of £1 each

| Interim | 4,000,000 |  | 1,000,000 |  |

Morgans of Usk Limited (Registered number: 02137982)

Notes to the Financial Statements - continued

for the Year Ended 31 May 2025

13. | PRIOR YEAR ADJUSTMENT

| During the year, the company identified an error in the prior year financial statements relating to the recognition of revenue. Sales of £4,453,804 had not been recognised, with associated misstatements in accruals and deferred income. Correction of this understatement of sales also resulted in an increase in corporation tax expense in the year to 31 May 2024, and the corporation tax creditor at that date, of £1,113,451.

| The net effect of the prior year adjustment was an increase of £3,340,353 in net profit for the year ended 31 May 2024 and in the brought forward retained earnings at the start of this financial year.

14. | TANGIBLE FIXED ASSETS

| Fixtures |

| Long |  | Plant and |  | and |

| leasehold |  | machinery |  | fittings |  | Totals

£ | £ | £ | £ |

| COST

| At 1 June 2024 | 770,281 |  | 4,465,364 |  | 256,906 |  | 5,492,551 |  |

| Additions | - |  | 565,893 |  | - |  | 565,893 |  |

| Disposals | - |  | (1,034,738 | ) | (94,725 | ) | (1,129,463 | ) |

| At 31 May 2025 | 770,281 |  | 3,996,519 |  | 162,181 |  | 4,928,981 |  |

| DEPRECIATION

| At 1 June 2024 | 334,641 |  | 3,152,304 |  | 217,065 |  | 3,704,010 |  |

| Charge for year | 46,217 |  | 576,574 |  | 10,284 |  | 633,075 |  |

| Eliminated on disposal | - |  | (1,023,204 | ) | (94,725 | ) | (1,117,929 | ) |

| At 31 May 2025 | 380,858 |  | 2,705,674 |  | 132,624 |  | 3,219,156 |  |

| NET BOOK VALUE

| At 31 May 2025 | 389,423 |  | 1,290,845 |  | 29,557 |  | 1,709,825 |  |

| At 31 May 2024 | 435,640 |  | 1,313,060 |  | 39,841 |  | 1,788,541 |  |

15. | STOCKS

| 31.5.25 |  | 31.5.24

| as restated |

£ | £ |

| Raw materials | 148,830 |  | 210,042 |  |

Morgans of Usk Limited (Registered number: 02137982)

Notes to the Financial Statements - continued

for the Year Ended 31 May 2025

16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

| 31.5.25 |  | 31.5.24

| as restated |

£ | £ |

| Trade debtors | 6,899,179 |  | 7,321,173 |  |

| Amounts owed by group undertakings | 394,821 |  | 340,951 |  |

| Gross amounts due from customers for contract work | 1,600,325 |  | 675,837 |  |

| Other debtors | 10,860 |  | 10,860 |  |

| Amounts due from related parties | 3,341,923 |  | 2,815,607 |  |

| Other taxes | 1,008,115 |  | 1,206,805 |  |

| Prepayments and accrued income | 364,480 |  | 125,517 |  |

13,619,703 |  | 12,496,750 |  |

17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

| 31.5.25 |  | 31.5.24

| as restated |

£ | £ |

| Gross amounts due to customers

| for contract work | 307,852 |  | 2,777,607 |  |

| Trade creditors | 5,402,864 |  | 5,140,063 |  |

| Amounts owed to group undertakings | 4,397,354 |  | 2,590,262 |  |

| Corporation tax | 1,205,851 |  | 842,488 |  |

| Social security and other taxes | 358,991 |  | 354,252 |  |

| Other creditors | 34,836 |  | 29,975 |  |

| Amounts payable to related parties | 251,401 |  | 168,105 |  |

| Directors' current accounts | 60,216 |  | 16,780 |  |

| Accruals and deferred income | 843,290 |  | 566,223 |  |

12,862,655 |  | 12,485,755 |  |

18. | LEASING AGREEMENTS

| Minimum lease payments under non-cancellable operating leases fall due as follows:

| 31.5.25 |  | 31.5.24

| as restated |

£ | £ |

| Within one year | 407,276 |  | 407,280 |  |

| Between one and five years | 881,322 |  | 1,096,613 |  |

| In more than five years | 1,648,000 |  | 1,839,360 |  |

2,936,598 |  | 3,343,253 |  |

Morgans of Usk Limited (Registered number: 02137982)

Notes to the Financial Statements - continued

for the Year Ended 31 May 2025

19. | SECURED DEBTS

| The bank holds a deed of charge over credit balances secured by the business premium account.

| A debenture has been granted by Morgans of Usk Limited in favour of Barclays Bank PLC, relating to fixed and floating charges over the undertaking and all property and assets present and future including goodwill, book debts, uncalled capital, buildings, fixtures and fixed plant and machinery.

20. | PROVISIONS FOR LIABILITIES

| 31.5.25 |  | 31.5.24

| as restated |

£ | £ |

| Deferred tax | 288,062 |  | 294,306 |  |

| Deferred |

| tax |

£ |

| Balance at 1 June 2024 | 294,306 |  |

| Accelerated capital allowances | (6,244 | ) |

| Balance at 31 May 2025 | 288,062 |  |

21. | CALLED UP SHARE CAPITAL

| Allotted, issued and fully paid:

| Number: | Class: | Nominal | 31.5.25 |  | 31.5.24

| value: |  | as restated |

£ | £ |

| 50,000 | Ordinary | £1 | 50,000 |  | 50,000 |  |

22. | RESERVES

| Retained

| earnings

£ |

| At 1 June 2024 | 12,998,850 |  |

| Prior year adjustment | 3,340,353 |  |

16,339,203 |  |

| Profit for the year | 8,597,212 |  |

| Dividends | (4,000,000 | ) |

| At 31 May 2025 | 20,936,415 |  |

| The retained earnings reserve records retained earnings and accumulated losses.

Morgans of Usk Limited (Registered number: 02137982)

Notes to the Financial Statements - continued

for the Year Ended 31 May 2025

23. | PENSION COMMITMENTS

| During the financial year, pension contributions of £361,895 (2024: £316,913) were paid to defined contribution pension plans. Pension contributions are charged to the profit and loss account in the period to which they relate.

24. | CONTINGENT LIABILITIES

| The company has contingent liabilities in respect of performance bonds entered into under the normal course of business. At 31 May 2025 the value of these were £781,535 (2024: £502,547).

25. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

| The following advances and credits to a director subsisted during the years ended 31 May 2025 and 31 May 2024:

| 31.5.25 |  | 31.5.24

| as restated |

£ | £ |

| A J Morgan

| Balance outstanding at start of year | (2,366 | ) | (4,954 | ) |

| Amounts advanced | - |  | 2,588 |  |

| Amounts repaid | 2,366 |  | - |  |

| Amounts written off | - |  | - |  |

| Amounts waived | - |  | - |  |

| Balance outstanding at end of year | - |  | (2,366 | ) |

| Interest is charged on the outstanding loan at 2.50% per annum.

26. | RELATED PARTY DISCLOSURES

| Key management personnel of the entity or its parent (in the aggregate)

| 31.5.25 |  | 31.5.24

| as restated |

£ | £ |

| Amount due to key management personnel | 60,216 |  | 16,780 |  |

| Entities under common control

| 31.5.25 |  | 31.5.24

| as restated |

£ | £ |

| Sales | 43,518 |  | 43,518 |  |

| Purchases | 428,058 |  | 423,075 |  |

| Amounts due from related party | 3,341,923 |  | 2,815,607 |  |

| Amounts due to related party | 251,401 |  | 168,105 |  |

Morgans of Usk Limited (Registered number: 02137982)

Notes to the Financial Statements - continued

for the Year Ended 31 May 2025

27. | CONTROL

| The company's parent undertaking at the balance sheet date was Morgans of Usk Group Limited, a company incorporated in England and Wales. Copies of the group consolidated financial statements can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.