Management & Construction Services Limited Company accounts

COMPANY REGISTRATION NUMBER: 01669454

Management & Construction Services Limited

Financial Statements

31 December 2025

Management & Construction Services Limited

Financial Statements

Year ended 31 December 2025

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	4

Independent auditor's report to the members	6

Statement of income and retained earnings	10

Statement of financial position	11

Notes to the financial statements	12

Management & Construction Services Limited

Officers and Professional Advisers

The board of directors	Mr P Hodges
	Mr A Rumble
	Mr J J Whiteman

Company secretary	Mrs J P Hodges

Registered office	Links 1
	Links Business Centre
	Old Woking
	Surrey
	United Kingdom
	GU22 8BF

Auditor	Moore Kingston Smith LLP
	Chartered accountants & statutory auditor
	5 Godalming Business Centre
	Woolsack Way
	Godalming
	Surrey
	United Kingdom
	GU7 1XW

Management & Construction Services Limited

Strategic Report

Year ended 31 December 2025

Introduction The Directors present their strategic report for the year end 31 December 2025. Principal Activity Management & Construction Services Limited (MCS) has been trading over 40 years and is a privately owned commercial construction business operating across Surrey and neighbouring counties on projects generally ranging in the £1million to £10million in value range. Our Special Works department delivers a mix of smaller projects up to £1million for a select number of key clients.

Review of the Business The company operates across the public and private sector delivering a mix of education, housing, commercial fit out, industrial and historic restoration projects with a high focus on quality of service and delivery. Despite the challenging market conditions, 2025 was another successful and record year for MCS with a record turnover and improved profitability. We secured new places on several national and regional frameworks, and these continue to supplement our other established frameworks and form an important part of our growing workload. Referrals from past clients and consultants still exceed 75% of all new customers and validate our collaborative engagement as a preferred delivery partner. During 2025 we recruited a further nine new members to our team and are immensely proud that women now represent 30% of our office-based team. Danica Silins, MCS site manager was shortlisted for an award at the impressive National Women in Construction Awards 2025, as sponsored by Construction News. During the year we made significant investment in our IT infrastructure and innovative software to improve and streamline our processes, business efficiencies, and collaboration. It is the aim of the business to grow to a sustainable and profitable £30-35 million turnover and a large part of our resource and infrastructure is already in place to support this level of growth. We are however fully aware of the current market conditions, domestically and current worldwide uncertainty and are projecting to maintain turnover levels from 2025 into 2026.

Key Performance Indicators We measure various KPI's throughout the year including: - Gross profitability - up 21% to £3.515 million (2024: £2.894 million) - Net profitability before tax - up 55% to £1.795 million (2024: £1.156 million) - Cash in Hand stable at £1.595 million (2024: £1.791 million).

Research & Development The company undertook research and development activities focused on solving complex structural and construction engineering challenges across several technically demanding projects. The work involved developing and testing bespoke design solutions where standard construction methods and existing engineering knowledge were insufficient, particularly in relation to constrained sites, irregular structural geometries, and complex load behaviours. The resulting innovations enhanced the company’s internal engineering capabilities, strengthened its ability to deliver high-complexity projects, and supported its position as a technically capable and innovative contractor within the UK construction sector.

Principal Risks and Uncertainties The Construction Industry continues to face challenges both in the UK and from the wider worldwide issues and this has affected business confidence and a lot of client decision making timetables. Current material inflation caused by the conflict in the middle east is impacting the margin on fixed price contracts. Recruitment continues to have its challenges, but we have been very resourceful and identified some key appointments successfully. Supply chain insolvency is also a risk, but we have implemented a range of robust measures and controls to align our supply chain with our requirements and ensure we do not encounter reliance and exposure from any single contractor across multiple contracts. The market still has its challenges, but the Directors are confident that market conditions will return and provide us the opportunity to meet our targets for the forthcoming year.

Future Developments Future developments will continue to focus on delivering complex and high-quality construction projects while investing in innovative building techniques, sustainable construction practices, and operational efficiency improvements. Plans include strengthening technical capabilities, expanding opportunities within key public and private sector markets, and adopting new technologies to enhance project delivery, safety, and long-term business growth.

This report was approved by the board of directors on 15 June 2026 and signed on behalf of the board by:

Mr P Hodges

Director

Registered office:

Links 1

Links Business Centre

Old Woking

Surrey

United Kingdom

GU22 8BF

Management & Construction Services Limited

Directors' Report

Year ended 31 December 2025

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

Directors

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

Mr P Hodges
Mr A Rumble
Mr J J Whiteman

Dividends

Particulars of recommended dividends are detailed in note 13 to the financial statements. Liquidity and credit risk Liquidity risk is the risk that the company does not have sufficient financial resources to meet its obligations when they fall due or will have to do so at excessive cost. This risk can arise from mismatches in the timing of cash flows relating to assets and liabilities. This risk is managed through effective credit control procedures, including managing credit risk, and detailed financial reviews regarding the acceptance of any proposed significant financial obligations to ensure that the company can continue to meet its liabilities as they fall due.

Disclosure of information in the strategic report

The company has chosen, in accordance with the Companies Act 2006, s. 414C(11), to set out in the group's strategic report information, required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7, to be contained in the director's report. It has done so in respect of future developments and activities in the field of research and development.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor

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

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

This report was approved by the board of directors on 15 June 2026 and signed on behalf of the board by:

Mr P Hodges

Director

Registered office:

Links 1

Links Business Centre

Old Woking

Surrey

United Kingdom

GU22 8BF

Management & Construction Services Limited

Independent Auditor's Report to the Members of Management & Construction Services Limited

Year ended 31 December 2025

Opinion

We have audited the financial statements of Management & Construction Services Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of income and retained earnings, statement of financial position and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We assessed the susceptibility of the company's financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and updating our understanding of the sector in which the company operates. Laws and regulations of direct significance in the context of the company include The Companies Act 2006, Health and Safety Act 1974 and UK Tax legislation. In addition, the company is subject to other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to its ability to operate or to avoid a material penalty. Audit response to risks identified We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance. We have reviewed management's assessment of how the company complies with the relevant laws and regulations. During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud. 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. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report

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

Peter Conneely

(Senior Statutory Auditor)

For and on behalf of

Moore Kingston Smith LLP

Chartered accountants & statutory auditor

5 Godalming Business Centre

Woolsack Way

Godalming

Surrey

United Kingdom

GU7 1XW

15 June 2026

Management & Construction Services Limited

Statement of Income and Retained Earnings

Year ended 31 December 2025

		2025	2024
Note		£	£
Turnover	4	21,780,337	20,608,152

Cost of sales	( 18,264,815)	( 17,713,795)
	-------------	-------------
Gross profit	3,515,522	2,894,357

Administrative expenses		( 2,287,895)	( 1,756,806)
Other operating income	5	549,997	15,526
		------------	------------
Operating profit	6	1,777,624	1,153,077

Other interest receivable and similar income	10	17,538	7,875
Interest payable and similar expenses	11	( 616)	( 4,875)
		------------	------------
Profit before taxation		1,794,546	1,156,077

Tax on profit	12	( 335,022)	–
		------------	------------
Profit for the financial year and total comprehensive income		1,459,524	1,156,077
		------------	------------

Dividends paid and payable	13	( 820,000)	( 485,000)

Retained earnings at the start of the year	1,296,972	625,895
	------------	------------
Retained earnings at the end of the year	1,936,496	1,296,972
	------------	------------

All the activities of the company are from continuing operations.

Management & Construction Services Limited

Statement of Financial Position

31 December 2025

	2025	2024
Note	£	£

Fixed assets

Tangible assets	15	112,865	101,477

Current assets

Debtors	16	4,609,898	4,024,817
Cash at bank and in hand		1,594,732	1,791,276
		------------	------------
		6,204,630	5,816,093

Creditors: amounts falling due within one year	17	( 4,170,110)	( 4,464,648)
		------------	------------
Net current assets		2,034,520	1,351,445
		------------	------------
Total assets less current liabilities		2,147,385	1,452,922

Creditors: amounts falling due after more than one year	18	–	( 18,750)

Provisions	20	( 173,689)	( 100,000)
		------------	------------
Net assets		1,973,696	1,334,172
		------------	------------

Capital and reserves

Called up share capital	23	36,000	36,000
Capital redemption reserve	25	1,200	1,200
Profit and loss account	25	1,936,496	1,296,972
		------------	------------
Shareholders funds		1,973,696	1,334,172
		------------	------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 15 June 2026 , and are signed on behalf of the board by:

Mr P Hodges

Director

Company registration number: 01669454

Management & Construction Services Limited

Notes to the Financial Statements

Year ended 31 December 2025

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office and principal place of business is Links 1, Links Business Centre, Old Woking, Surrey, GU22 8BF, United Kingdom.

2. Statement of compliance

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

3. Accounting policies

Basis of preparation

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies. The preparation of financial statements in compliance with FRS102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies. The financial statements are prepared in sterling, which is the functional currency of the entity. Going concern The financial statements are prepared on a going concern basis. The use of the going concern basis of accounting is appropriate because there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. The directors have carried out their assessment of going concern and taking into account the economic conditions and possible changes in trading performance, they have reasonable expectations that the company has adequate resources to continue in operational existence for the foreseeable future including a minimum period of 12 months from the date the financial statements are approved. Disclosure exemptions The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of MCS Holdings Ltd. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) Disclosures in respect of each class of share capital have not been presented. (b) No cash flow statement has been presented for the company. (c) Disclosures in respect of financial instruments have not been presented. (d) No disclosure has been given for the aggregate remuneration of key management personnel. Judgements and key sources of estimation uncertainty In the application of the Company's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. The Directors considered that the recognition of turnover and profit on long term contracts has the most significant effect on the financial statements. This requires management judgement and estimates regarding the anticipated final outcome of individual contracts and of the proportion of works completed at the balance sheet date. Management undertakes detailed reviews in order to exercise judgement over the outcome of each contract. The value of work completed at the balance sheet date is assessed by by completing internal valuations, which includes comparison to external valuations completed on behalf of clients and applications for payment made by subcontractors. Any material variances are investigated and updates made where appropriate. Actual results may differ from these estimates. The recoverability of all debtors and amounts recoverable on long term contracts are reviewed by the Directors and provisions made where appropriate. Revenue recognition Revenue is recognised to the extent that is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Rendering of services Revenue on long-term contracts is recognised on a work certified basis by reference to stage of completion of the contract activity at the end of the reporting period, when all of the following conditions are satisfied: - the amount of revenue can be measured reliably - it is probable that the Company will receive the consideration due under the contract; - the stage of completion of the contract at the end of the reporting period can be measured reliably; and - the costs incurred and the costs to complete the contract can be measured reliably. Income tax The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. Operating leases Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Intangible assets Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Software	-	3 years straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery	-	25% straight lne
Equipment	-	20% - 33.3% straight line

Impairment of fixed assets

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Long-term debtors comprise retentions due within more than one year from the balance sheet date, they are measured at transaction price less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Finance leases and hire purchase contracts

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding each period.

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Interest income

Interest Income is recognised in profit or loss using the effective interest method.

Provisions

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss.

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Financial instruments

The Company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues of FRS 102 to all of its financial instruments. Financial instruments are recognised when the Company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest. Impairment of financial assets Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. Derecognition of financial assets Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. Classification of financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Basic financial liabilities Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow Company companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost. using the effective interest rate method. Financial liabilities held at fair value Debt instruments where the contractual returns, repayment of the principal, or other terms (such as prepayment provisions or term extensions) do not meet the conditions to be measured at amortised cost, are subsequently measured at fair value through profit or loss, unless fair value measurement is not permitted by law, or the debt instrument gives rise to cash flows on specified dates that constitute repayment of the principal advanced, together with reasonable compensation for the time value of money, credit risk and other basic lending risks and costs and does not have contractual terms which introduce exposure to unrelated risks or volatility. Derecognition of financial liabilities Financial liabilities are derecognised when, and only when, the Company's contractual obligations are discharged, cancelled, or they expire. Equity instruments Equity instruments issued by the Company are recorded at the fair value of proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

Defined contribution plans

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

4. Turnover

Turnover arises from:

	2025	2024
	£	£
Construction contracts	21,780,337	20,608,152
	-------------	-------------

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

5. Other operating income

	2025	2024
	£	£
Rental income	2,700	15,479
Government grant income	–	47
Other operating income	547,297	–
	---------	--------
	549,997	15,526
	---------	--------

6. Operating profit

Operating profit or loss is stated after charging:

	2025	2024
	£	£
Depreciation of tangible assets	19,199	43,536
Operating lease payments	92,144	82,964
	--------	--------

7. Auditor's remuneration

	2025	2024
	£	£
Fees payable for the audit of the financial statements	14,000	14,000
	--------	--------

Fees payable to the company's auditor and its associates for other services:

Other non-audit services	5,500	1,110
	--------	--------

8. Staff costs

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

	2025	2024
	No.	No.
Administrative staff	19	15
Site staff	11	8
Directors	3	4
	----	----
	33	27
	----	----

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

	2025	2024
	£	£
Wages and salaries	1,744,754	1,299,407
Social security costs	225,423	145,053
Other pension costs	281,911	110,392
	------------	------------
	2,252,088	1,554,852
	------------	------------

9. Directors' remuneration

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

	2025	2024
	£	£
Remuneration	47,324	34,072
Company contributions to defined contribution pension plans	195,675	72,000
	---------	---------
	242,999	106,072
	---------	---------

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

	2025	2024
	No.	No.
Defined contribution plans	3	4
	----	----

10. Other interest receivable and similar income

	2025	2024
	£	£
Interest receivable	17,538	7,875
	--------	-------

11. Interest payable and similar expenses

	2025	2024
	£	£
Interest on banks loans and overdrafts	616	4,875
	----	-------

12. Tax on profit

Major components of tax expense

	2025	2024
	£	£

Current tax:

UK current tax expense	339,980	–
Adjustments in respect of prior periods	( 4,958)	–
	---------	----
Total current tax	335,022	–
	---------	----
	---------	----
Tax on profit	335,022	–
	---------	----

Reconciliation of tax expense

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

	2025	2024
	£	£
Profit on ordinary activities before taxation	1,794,546	1,156,077
	------------	------------
Profit on ordinary activities by rate of tax	448,637	289,019
Adjustment to tax charge in respect of prior periods	( 4,958)	–
Effect of expenses not deductible for tax purposes	68	( 1,980)
Effect of capital allowances and depreciation	( 3,208)	4,962
Utilisation of tax losses	( 105,517)	( 292,001)
	------------	------------
Tax on profit	335,022	–
	------------	------------

13. Dividends

	2025	2024
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )	820,000	485,000
	---------	---------

14. Intangible assets

	Software
	£
Cost
At 1 January 2025	30,835
Additions	–
Disposals	( 30,835)
	--------
At 31 December 2025	–
	--------
Amortisation
At 1 January 2025	30,835
Charge for the year	–
Disposals	( 30,835)
	--------
At 31 December 2025	–
	--------
Carrying amount
At 31 December 2025	–
	--------
At 31 December 2024	–
	--------

15. Tangible assets

	Plant and machinery	Equipment	Total
	£	£	£
Cost
At 1 January 2025	38,895	255,966	294,861
Additions	–	30,587	30,587
	--------	---------	---------
At 31 December 2025	38,895	286,553	325,448
	--------	---------	---------
Depreciation
At 1 January 2025	21,233	172,151	193,384
Charge for the year	949	18,250	19,199
	--------	---------	---------
At 31 December 2025	22,182	190,401	212,583
	--------	---------	---------
Carrying amount
At 31 December 2025	16,713	96,152	112,865
	--------	---------	---------
At 31 December 2024	17,662	83,815	101,477
	--------	---------	---------

16. Debtors

	2025	2024
	£	£
Trade debtors	3,277,774	2,104,491
Amounts owed by group undertakings	375,523	415,523
Prepayments and accrued income	92,893	615,979
Corporation tax repayable	207,317	–
Amounts recoverable on long term contracts	656,391	888,824
	------------	------------
	4,609,898	4,024,817
	------------	------------

The debtors above include the following amounts falling due after more than one year:

	2025	2024
	£	£
Trade debtors	1,380,395	177,044
	------------	---------

Included in trade debtors is a total of £1,460,020 (2024: £1,141,307) relating to retentions, this is split as follows

	2025	2024
	£	£
Amounts due within 1 year	79,625	964,263
Amounts due greater than 1 year	1,380,395	177,044
	------------	------------
Total	1,460,020	1,141,307
	------------	------------

17. Creditors: amounts falling due within one year

	2025	2024
	£	£
Bank loans and overdrafts	18,750	45,000
Trade creditors	996,082	1,009,852
Accruals and deferred income	2,305,456	2,666,769
Corporation tax	–	4,958
Social security and other taxes	849,822	724,578
Obligations under finance leases and hire purchase contracts	–	13,491
	------------	------------
	4,170,110	4,464,648
	------------	------------

The Company has a CBIL loan with NatWest. The loan is repayable over five years. The interest rate is 4.9% over the base rate.

18. Creditors: amounts falling due after more than one year

	2025	2024
	£	£
Bank loans and overdrafts	–	18,750
	----	--------

19. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	2025	2024
	£	£
Not later than 1 year	–	13,491
	----	--------

20. Provisions

	Liquidated Damages	Snagging Provision	Total
	£	£	£
At 1 January 2025	100,000	–	100,000
Additions	–	173,689	173,689
Charge against provision	( 100,000)	–	( 100,000)
	---------	---------	---------
At 31 December 2025	–	173,689	173,689
	---------	---------	---------

The previous provision was written off during the year. The new provision balance of £173,689 relates to a snagging provision, this is expected to be resolved after 12 months.

21. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 281,911 (2024: £ 110,392 ).

22. Government grants

The amounts recognised in the financial statements for government grants are as follows:

	2025	2024
	£	£

Recognised in other operating income:

Government grants recognised directly in income	–	47
	----	----

23. Called up share capital

Issued, called up and fully paid

	2025		2024
	No.	£	No.	£
Ordinary shares of £ 1 each	36,000	36,000	36,000	36,000
	--------	--------	--------	--------

24. Charges

A mortgage debenture in favour of National Westminster Bank PLC was created on 2 March 1983 and delivered on 11 March 1983. The charge remains outstanding at the balance sheet date. The debenture secures all monies due or to become due from the company and comprises:

- A specific equitable charge over all freehold and leasehold properties (and proceeds of sale); and

- A fixed and floating charge over all present and future assets of the company, including goodwill and book debts.

25. Reserves

Capital redemption reserve - The balance of £1,200 within the reserve is only distributable as bonus issues of extra shares. Profit and loss account - This reserve represents cumulative profits and losses net of all adjustments.

26. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2025	2024
	£	£
Not later than 1 year	99,903	46,056
Later than 1 year and not later than 5 years	169,505	24,667
	---------	--------
	269,408	70,723
	---------	--------

27. Related party transactions

MCS Holdings Ltd (A company under common control) During the year, the company paid dividends to its parent company of £820,000 (2024: £485,000) Transactions with Directors During the year, the company reimbursed the directors for travel amounting to £13,803. The Directors were not owed at year end.

28. Controlling party

The immediate and ultimate parent undertaking is MCS Holdings Ltd , a company incorporated in England and Wales whose registered office is Links 1, Links Business Centre, Old Woking, Surrey, GU22 8BF. By virtue of his shareholding, the Company considers the ultimate controlling party to be Mr P Hodges .