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

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

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

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.

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.

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.

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.

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

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:

- 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

- 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

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

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.

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

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.

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.

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.

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

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

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

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

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":

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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.

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.