ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

Company Registration Number 01278704

	THOMAS ARMSTRONG (AGGREGATES) LIMITED

	FINANCIAL STATEMENTS

	27 SEPTEMBER 2025

THOMAS ARMSTRONG (AGGREGATES) LIMITED

COMPANY INFORMATION

Directors	J K Denham
	A R G Denham
	M G Fisher
	D H Lake (appointed 1 October 2024)
	G Murphy (appointed 1 October 2024)


Company secretary	Mr J M Tibbitts


Registered number	01278704


Registered office	Workington Road
	Flimby
	Maryport
	Cumbria
	CA15 8RY


Independent auditors	Armstrong Watson Audit Limited
	Chartered Accountants & Statutory Auditors
	James Watson House
	Montgomery Way
	Rosehill
	Carlisle
	Cumbria
	CA1 2UU


Bankers	Virgin Money UK plc
	40 St Vincent Place
	Glasgow
	G1 2HL


Solicitors	Burnetts LLP
	Victoria House
	Wavell Drive
	Rosehill
	Carlisle
	Cumbria
	CA1 2ST

THOMAS ARMSTRONG (AGGREGATES) LIMITED

CONTENTS

	Page
Strategic Report	1 - 2
Directors' Report	3 - 4
Independent Auditors' Report	5 - 8
Statement of Comprehensive Income	9
Statement of Financial Position	10
Statement of Changes in Equity	11
Notes to the Financial Statements	12 - 26

THOMAS ARMSTRONG (AGGREGATES) LIMITED

STRATEGIC REPORT

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

Introduction

The directors present their strategic report and financial statements for the 52 weeks ended 27th September 2025.

Principal activity and review of the business

The company’s principal activities during the year continued to be the extraction and sale of sand and gravel in bulk and pre-packed products, the provision of land-fill services, the provision of vehicle repairs and haulage services and the import and distribution of bulk cement and PFA.

The directors are pleased with the results for the year, as discussed below.

The company’s financial and key performance indicators during the year were as follows:

       52 weeks 52 weeks
   ended ended
   27 September 28 September
   2025 2024 Change
   £000 £000 %

Turnover 41,671 40,445 3.0
Profit before taxation 7,858 7,385 6.4
Average number of employees 84 81 3.7
Turnover per employee 496.0 499.3 (0.6)
Profit before taxation per employee 93.5 91.2 2.5

The company experienced increased volumes in some departments over the financial year whilst other departments struggled, however most departments continued to make a positive contribution to the overall result. Volumes sold
from bulk aggregate and cement facilities in Cumbria improved slightly but ongoing issues with land continued to limit available stocks. Cement volumes from the Sunderland facility were down due falling demand from block
manufacturers. Further increased operating costs saw a reduction in contribution from the transport department.

Principal risks and uncertainties

The principal risks and uncertainties facing the company can be classified as competitive, legislative and financial
risks:

Competitive risks

The company negotiates annually with certain large customers to supply them for the following year. The success of
these negotiations is uncertain and is subject to financial and performance criteria.

The company also faces competition from smaller competitors who offer competitive prices in order to gain business
from the company’s customers. The company is successful in dealing with these risks through the agreements
negotiated and its own pricing and service standards.

The company imports certain raw materials from the European Union which are priced in Euro. Our sales are in pounds sterling. Our aim in hedging our currency risk is to ensure that our products can be sold at the profit margin that we forecast when the purchase was made and to this end a number of forward contracts have been placed to cover the majority of our euro requirement for the coming financial year.

The directors enter into agreements to hedge the value of fuel given the volatility of this commodity, the fair value of these derivatives is not material and is not reflected in these financial statements.

Page 1

THOMAS ARMSTRONG (AGGREGATES) LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

Legislative risks

Certain aspects of the company’s activities are governed by environmental legislation. The company believes that good environmental practices are important and discusses environmental issues at all board meetings. Work methods are assessed and procedures are adopted to ensure that the company’s activities impact as little as possible upon the environment.

Financial risks

The main area of risk is that of credit risk by which one party will cause a loss for another party by failing to discharge an obligation. The company’s policy is to minimise that risk by ensuring that credit terms are only granted for customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. In addition to this the company has introduced credit insurance for its debtors. Details of the company’s debtors are shown at note 11 of the financial statements.

Brexit risk

The UK has now left the European Union and as a result of the new importing procedures the documentation required has greatly increased. The company is continuing to source as many products as possible within the UK to reduce any potential supply issues and to minimise any impact on production.

Future Developments

The directors expect to report reduced profits in the new financial year. Continued economic uncertainty in the UK along with increases in costs due to high inflation and political factors around the world, mean the company is likely to see reduced margins and contribution levels during the new financial year.

This report was approved by the board and signed on its behalf.

Mr J M Tibbitts

Secretary

Date: 4 June 2026

Page 2

THOMAS ARMSTRONG (AGGREGATES) LIMITED

DIRECTORS' REPORT

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

The directors present their report and the financial statements for the period ended 27 September 2025.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙state whether applicable UK 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 to 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.

Results and dividends

The profit for the period, after taxation, amounted to £6,793,605 (2024 - £5,954,962).

The directors do not recommend a final dividend (2024 - £nil).

Directors

The directors who served during the period were:

J K Denham

A R G Denham

M G Fisher

D H Lake (appointed 1 October 2024)

G Murphy (appointed 1 October 2024)

I Morrison (resigned 30 September 2024)

Page 3

THOMAS ARMSTRONG (AGGREGATES) LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

Under section 487(2) of the Companies Act 2006, Armstrong Watson Audit Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.

Mr J M Tibbitts

Secretary

Date: 4 June 2026

Page 4

THOMAS ARMSTRONG (AGGREGATES) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THOMAS ARMSTRONG (AGGREGATES) LIMITED

Opinion

We have audited the financial statements of Thomas Armstrong (Aggregates) Limited (the 'Company') for the period ended 27 September 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity 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 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 27 September 2025 and of its profit for the period 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 United Kingdom, including the Financial Reporting Council'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.

Page 5

THOMAS ARMSTRONG (AGGREGATES) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THOMAS ARMSTRONG (AGGREGATES) LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion 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 period 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 set out on page 3, 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.

Page 6

THOMAS ARMSTRONG (AGGREGATES) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THOMAS ARMSTRONG (AGGREGATES) LIMITED (CONTINUED)

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 an Auditors' 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including
fraud and non-compliance with laws and regulations, was as follows:

∙the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

∙we identified the laws and regulations applicable to the company through discussions with directors and
other management;

∙we assessed the extent of compliance with the laws and regulations identified above through making
enquiries of management; and

∙ identified laws and regulations were communicated within the audit team regularly and the team remained
alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the Company’s financial statements to material misstatement, including
obtaining an understanding of how fraud might occur, by:

∙making enquiries of management as to where they considered there was susceptibility to fraud, their
knowledge of actual, suspected and alleged fraud; and

∙ considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and
regulations.

To address the risk of fraud through management bias and override of controls, we:

∙ performed analytical procedures as a risk assessment tool to identify any unusual or unexpected
relationships;

∙ tested journal entries to identify unusual transactions; and

∙ reviewed the application of accounting policies, particularly in relation to those judgemental or uncertain areas.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures
which included, but were not limited to:

∙agreeing financial statement disclosures to underlying supporting documentation;

∙enquiring of management as to actual and potential litigation and claims; and

∙ reading board minutes and relevant correspondence with legal advisors.

Page 7

THOMAS ARMSTRONG (AGGREGATES) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THOMAS ARMSTRONG (AGGREGATES) LIMITED (CONTINUED)

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

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 Auditors' Report.

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 Auditors' 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.

Joanna Gray (Senior Statutory Auditor)

for and on behalf of

Armstrong Watson Audit Limited

Chartered Accountants & Statutory Auditors

Carlisle

4 June 2026

Page 8

THOMAS ARMSTRONG (AGGREGATES) LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

	52 weeks ended 28 September	27 September
	2025	2024
Note	£	£


Turnover	4	41,670,782	40,444,943
Cost of sales		(32,621,303)	(31,404,677)
Gross profit		9,049,479	9,040,266
Administrative expenses		(1,633,974)	(2,090,856)
Other operating income	5	438,602	435,240
Operating profit	6	7,854,107	7,384,650
Interest receivable and similar income		3,854	-
Profit before tax		7,857,961	7,384,650
Tax on profit	9	(1,064,356)	(1,429,688)
Profit for the financial period		6,793,605	5,954,962

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 12 to 26 form part of these financial statements.

Page 9

THOMAS ARMSTRONG (AGGREGATES) LIMITED

REGISTERED NUMBER: 01278704

STATEMENT OF FINANCIAL POSITION

AS AT 27 SEPTEMBER 2025


	2025	2024
Note	£	£

Fixed assets
Intangible assets	10		-		-
Tangible assets	11		21,591,452		20,465,416
			21,591,452		20,465,416
Current assets
Stocks	12	2,117,980		1,869,897
Debtors: amounts falling due within one year	13	37,939,896		39,830,007
Cash at bank and in hand		6,224		502,842
		40,064,100		42,202,746
Creditors: amounts falling due within one year	14	(15,333,883)		(23,306,669)
Net current assets			24,730,217		18,896,077
Total assets less current liabilities			46,321,669		39,361,493
Provisions for liabilities
Deferred tax	15	(1,518,670)		(1,377,201)
Other provisions	16	(580,194)		(555,092)
			(2,098,864)		(1,932,293)
Net assets			44,222,805		37,429,200

Capital and reserves
Called up share capital	17	10,000	10,000
Profit and loss account	18	44,212,805	37,419,200
		44,222,805	37,429,200

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

J K Denham

Director

Date: 4 June 2026

The notes on pages 12 to 26 form part of these financial statements.

Page 10

THOMAS ARMSTRONG (AGGREGATES) LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 30 September 2023	10,000	31,464,238	31,474,238
Comprehensive income for the period
Profit for the period	-	5,954,962	5,954,962
Total comprehensive income for the period	-	5,954,962	5,954,962

At 28 September 2024	10,000	37,419,200	37,429,200
Comprehensive income for the period
Profit for the period	-	6,793,605	6,793,605
Total comprehensive income for the period	-	6,793,605	6,793,605
At 27 September 2025	10,000	44,212,805	44,222,805

The notes on pages 12 to 26 form part of these financial statements.

Page 11

THOMAS ARMSTRONG (AGGREGATES) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

1.	General information

Thomas Armstrong (Aggregates) Limited is a private company, limited by shares, incorporated in England. The registered office is Workington Road, Flimby, Maryport, Cumbria CA15 8RY.

The principal activity of the Company continued to be the extraction and sale of sand and gravel in bulk and pre-packed products, the provision of land-fill services, the provision of vehicle repairs and haulage services and the import and distribution of bulk cement and PFA.

They are presented in the pounds sterling and rounded to the nearest £.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

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

- the requirements of Section 7 Statement of Cash Flows;
- the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
- the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47,
11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
- the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a),
12.29(b) and 12.29A;
- the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Thomas Armstrong (Holdings)
Limited as at 27 September 2025 and these financial statements may be obtained from the stated registered
office address.

Page 12

THOMAS ARMSTRONG (AGGREGATES) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

2.Accounting policies (continued)

2.3

Revenue

Revenue is recognised to the extent that it 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. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

2.4

Interest income

Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.

2.5

Pensions

Defined contribution pension plan

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 Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

THOMAS ARMSTRONG (AGGREGATES) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

2.Accounting policies (continued)

2.6

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

2.7

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.

2.8

Tangible fixed 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.

Page 14

THOMAS ARMSTRONG (AGGREGATES) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

2.Accounting policies (continued)

2.8

Tangible fixed assets (continued)

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold buildings	-	10 - 50 years
Leasehold land and buildings	-	Over the term of the lease
Plant and machinery	-	5% - 33.33% per annum straight-line
Motor vehicles	-	8% - 33.33% per annum straight-line

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.

2.9

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.10

Operating Leases

Rentals paid under operating leases are charged to the income statement on a straight-line basis over the lease term.

2.11

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.

2.12

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.

2.13

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.

Page 15

THOMAS ARMSTRONG (AGGREGATES) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

2.Accounting policies (continued)

2.14

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.

2.15

Re-instatement and environmental costs

The company is committed to re-instatement and environmental monitoring liabilities relating to its quarrying and mineral extraction activities. Provisions for re-instatement costs are made so as to match revenues from the activity. Environmental monitoring costs are provided when the expenditure is probable (as required by the terms of planning permission or grant of licence) and the cost can be estimated within a reasonable range of possible outcomes. The impact of discounting is not material.

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements in conformity with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities and the reported amount of expenses during the year. Actual results may vary from the estimates used to produce these financial statements.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognised the period in which the estimates are revised and in any future periods affected.

Significant items subject to such estimates and assumptions are:

a) Provisions

Provisions for product liability or other legal claims and carbon emissions obligations are all made based on the best estimate of the likely committed cash flow, using relevant information at the reporting date.

Provisions for restoration obligations are made on the best estimate of the cost involved to comply with those obligations. The useful lives of the quarrying sites are based on the estimated mineral reserves remaining.

Page 16

THOMAS ARMSTRONG (AGGREGATES) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

Sale of goods	39,849,044	38,883,614
Provision of services	1,821,738	1,561,329
	41,670,782	40,444,943

All turnover arose within the United Kingdom.

Other operating income	125,322	132,603
Net rents receivable	255,497	260,430
Stores admin allocation	(18,912)	(18,912)
Profit on disposal of tangible assets	76,695	61,119
	438,602	435,240

Auditor's remuneration	33,700	33,700
Profit on sale of fixed assets	(76,695)	(61,119)
Rent receivable	(255,497)	(260,430)

Auditors remuneration received in respect of non-audit services is disclosed and analysed in the parent undertaking's group financial statements.

Page 17

THOMAS ARMSTRONG (AGGREGATES) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

Wages and salaries	2,876,814	2,703,801
Social security costs	324,501	272,645
Cost of defined contribution scheme	92,817	90,830
	3,294,132	3,067,276

The average monthly number of employees, including the directors, during the period was as follows:

	52 weeks ended 28 September	27 September
	2025	2024
	No.	No.

Office and management	19	19
Mechanics and drivers	65	62

	84	81

Page 18

THOMAS ARMSTRONG (AGGREGATES) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

Directors salaries	245,235	178,059
Directors fees	6,000	6,000
Company contributions to defined contribution pension schemes	20,808	19,391
	272,043	203,450

	During the period retirement benefits were accruing to 3 directors (2024 - 2) in respect of defined contribution pension schemes.
	The highest paid director received remuneration of £124,585 (2024 - £128,296).
	The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £13,597 (2024 - £12,248).

Certain directors are paid by the ultimate parent undertaking for their services to the entire group. The company is charged a management charge of £104,579 (2024 - £104,579) for services provided to it by its ultimate parent undertaking. The directors do not consider they can accurately apportion this management charge between the element for directors’ remuneration and other services provided.

Page 19

THOMAS ARMSTRONG (AGGREGATES) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

Corporation tax
Current tax on profits for the year	1,803,125	1,777,873
Adjustments in respect of previous periods	(880,238)	1,220,142
	922,887	2,998,015

Total current tax	922,887	2,998,015

Deferred tax
Origination and reversal of timing differences	141,469	(1,568,327)
Total deferred tax	141,469	(1,568,327)


	Tax on profit	1,064,356	1,429,688

Page 20

THOMAS ARMSTRONG (AGGREGATES) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

9.Taxation (continued)

Profit on ordinary activities before tax

7,857,961

7,384,650

Tax on profit on ordinary activities at standard CT rate of 25.00% (PY: 22.01%)	1,964,490	1,846,822
Effects of:
Fixed asset differences	23,854	-
Other tax adjustments, reliefs and transfers	(19,174)	(1,555,534)
Adjustments to tax charge in respect of previous periods	(880,238)	1,220,142
Movement in deferred tax not recognised	(24,576)	(81,742)
Total tax charge for the period	1,064,356	1,429,688

There were no factors that may affect future tax charges.

Page 21

THOMAS ARMSTRONG (AGGREGATES) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

10.	Intangible assets

		Goodwill
		£
	Cost
	At 28 September 2024	600,000
	At 27 September 2025	600,000
	Amortisation
	At 28 September 2024	600,000
	At 27 September 2025	600,000
	Net book value
	At 27 September 2025	-
	At 27 September 2024	-

Page 22

THOMAS ARMSTRONG (AGGREGATES) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

11.	Tangible fixed assets

	Freehold property	Long-term leasehold property	Plant and machinery	Total
	£	£	£	£
Cost or valuation
At 28 September 2024	4,032,308	14,111	28,520,170	32,566,589
Additions	-	-	2,870,980	2,870,980
Disposals	-	-	(1,551,328)	(1,551,328)
At 27 September 2025	4,032,308	14,111	29,839,822	33,886,241
Depreciation
At 28 September 2024	2,348,469	14,110	9,738,594	12,101,173
Charge for the period on owned assets	13,969	-	1,576,229	1,590,198
Disposals	-	-	(1,396,582)	(1,396,582)
At 27 September 2025	2,362,438	14,110	9,918,241	12,294,789
Net book value
At 27 September 2025	1,669,870	1	19,921,581	21,591,452
At 27 September 2024	1,683,839	1	18,781,576	20,465,416

Included in freehold land and buildings above is freehold land costing £1,862,816 (2024 - £1,862,816), which is not depreciated.

Page 23

THOMAS ARMSTRONG (AGGREGATES) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

12.	Stocks
		2025	2024
		£	£

Raw materials and consumables	163,759	228,177
Finished goods and goods for resale	1,954,221	1,641,720
	2,117,980	1,869,897

13.

Debtors

					2025	2024
					£	£


Trade debtors	6,079,960	6,454,350
Amounts owed by group undertakings	30,720,343	32,363,566
Prepayments and accrued income	1,139,593	1,012,091
	37,939,896	39,830,007

Bank overdrafts	1,673,049	10,914,221
Trade creditors	466,198	512,279
Amounts owed to group undertakings	8,581,354	6,920,334
Corporation tax	-	1,150,873
Other taxation and social security	2,374,552	1,878,703
Accruals and deferred income	2,238,730	1,930,259
	15,333,883	23,306,669

The bank overdraft is secured by cross guarantees issued by Thomas Armstrong (Holdings) Limited group companies.

Page 24

THOMAS ARMSTRONG (AGGREGATES) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

15.	Deferred taxation

		27 September 2025
		£

	At beginning of year	(1,377,201)
	Charged to profit or loss	(141,469)
	At end of year	(1,518,670)

The provision for deferred taxation is made up as follows:
	2025	2024
	£	£

	Accelerated capital allowances	(1,518,670)	(1,377,201)
		(1,518,670)	(1,377,201)

16.	Provisions

		Reinstatement and environmental liabilities
		£

	At 28 September 2024	555,092
	Charged to profit or loss	25,102
	At 27 September 2025	580,194

The company is committed to re-instatement and environmental monitoring liabilities relating to its quarrying and mineral extraction activities. Provisions for re-instatement costs are made on an undiscounted basis so as to match revenues from the activity. Environmental monitoring costs are provided when the expenditure is probable (as required by the terms of planning permission or grant of licence) and the cost can be estimated within a reasonable range of possible outcomes. The directors believe that the liability will unwind upon the ultimate cessation of the company's activities.

Page 25

THOMAS ARMSTRONG (AGGREGATES) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 SEPTEMBER 2025

17.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

10,000 (2024 - 10,000) Ordinary shares of £1.00 each	10,000	10,000

18.

Reserves

Profit and loss account

This represents cumulative profits and losses less dividends paid.

19.	Contingent liabilities

The company has given the bank an unlimited guarantee in connection with Thomas Armstrong (Holdings) Limited group bank borrowings.

	Contracted for but not provided in these financial statements	-	227,756
		-	227,756

21.	Pension commitments

The company belongs to a group money purchase pension scheme which is funded by the payment of contributions to an independently administered fund. Contributions to the fund are charged to the income statement as they become payable, in accordance with the rules of the scheme. In the current year, this amounted to £92,817 (2024 - £90,830).There were no outstanding contributions at the period end (2024 - £Nil).

22.	Related party transactions
	The company has not disclosed transactions with other Group companies, as it has taken advantage of the exemption contained within FRS102 on the grounds that the fellow group subsidiaries are wholly owned.

23.	Controlling party

The ultimate parent undertaking and controlling party is Thomas Armstrong (Holdings) Limited, a company registered in England and Wales. The parent undertaking of the group of undertakings for which group financial statements are drawn up and of which the company is a member is Thomas Armstrong (Holdings) Limited. Copies of Thomas Armstrong (Holdings) Limited's financial statements can be obtained from Companies House in Cardiff.

Page 26