Company registration number 00782078 (England and Wales)
J.HARPER & SONS(LEOMINSTER) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
J.HARPER & SONS(LEOMINSTER) LIMITED
COMPANY INFORMATION
Directors
Miss V Overton
Mr A Rees
Mr M Harvey
Mr M A Harvey
(Appointed 8 September 2025)
Mr A J Chadd
(Appointed 8 September 2025)
Mr P A Davies
(Appointed 8 September 2025)
Secretary
Miss V Overton
Company number
00782078
Registered office
Units 1 & 2
Bevan Industrial Estate
Brierley Hill
West Midlands
DY5 3TF
Auditor
CK Audit
No 4 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RH
Business address
Southern Avenue
Leominster
Herefordshire
HR6 0QF
Bankers
HSBC Bank Plc
31 Church Street
Kidderminster
Worcestershire
West Midlands
DY10 2AY
J.HARPER & SONS(LEOMINSTER) LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 24
J.HARPER & SONS(LEOMINSTER) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

The directors present the strategic report for the year ended 31 December 2025.

Review of the business

The principal activity of the Company continues to be the provision of building contractor services delivering all construction types, including but not restricted to commercial, industrial, leisure and retail, health, education, refurbishment, public buildings, affordable and private housing of all sizes under all procurement routes.

We aim to present a considered and balanced review of the performance of the business and its position at the year end.

Turnover has increased, as anticipated, to circa £31m as the Company continues with the delivery of high quality projects, on time and to Client requirements. Turnover for 2026 looks to be stable with projects already secured in excess of £25m

The Company continues to be profitable (despite challenging market conditions) through the principals of strong, stable and professional management systems and support. We strategically target key Clients predominately in the Public Sector, such as Housing Associations and Local Authorities, whilst maintaining our links with organisations, who are strong within their own sector and provide a stable long-term informed relationship. Our continued success and stability has enabled us to develop our local workforce and supply chain.

The Company continues to invest for future performance and long-term stability by maintaining a balanced well trained, highly motivated workforce. The business takes its health and safety obligations very seriously and to this end employees attend numerous courses during the year both internally and externally, to ensure that all staff have received the necessary training to perform their duties.

Principal risks and uncertainties

The demand for services of the group are dependent upon the confidence within the UK housing and construction market. This includes factors such as interest rates and the availability of credit, which are outside the group’s control. The business however continues to reduce risk and uncertainty by increasing its customer base, whilst keeping fixed costs to a minimum. Forward workload levels have reduced as expected with the business having secured 80% of its anticipated work load for 2026.

J.HARPER & SONS(LEOMINSTER) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -
Analysis based on Key Performance Indicators

The Directors monitor the performance of the Company by reviewing actual monthly results with expected performance and by completing detailed reviews of the performance on individual contracts on a monthly basis.

In addition to this process the Directors measure financial performance for the year using the following indicators:-

| 2024 |  | 2025
Turnover | 23,042,491 |  | 31,175,299
Profit Before Tax % Turnover | 1.75% |  | 1.42%
Profit for Year before Tax | 403,953 |  | 445,144
Total Equity | 4,505,746 |  | 4,692,239

Other Key Performance Indicators

The Company uses a suite of non-financial KPI’s to monitor and measure success on a regular basis, which cover the whole business operating functions (these are monitored on a monthly basis).

- Client satisfaction – service and product

- Defects

- Construction time and cost

- Productivity

- Profitability

- Health and Safety inc. accident frequency rates

- Staff Turnover

- Sickness/Absence

- Qualifications and Skills

- Percentage local supplier spend

- Percentage local labour

- Employment/apprentice targets

- Tonnage to landfill

- Waste to landfill as % of all waste

J.HARPER & SONS(LEOMINSTER) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -
Additional Information and Explanations

Quality, Health & Safety and Environmental Policies

The Company places a great importance on ensuring the business undertakes its functions in a safe manner, whilst maintaining quality and ensuring that environmental impacts are minimised. To this end we maintain our CHAS Certification, together with our IS0 9001 and 14001 external accreditation whilst carrying out extensive training and development.

Health and Safety Risk

The Company’s activities are significant and complex which require the continuous monitoring and management of health, safety and environmental risks. Failure to manage these risks could result in serious harm to employees, subcontractors, the public or the environment and could expose the Company to significant potential liabilities and reputational damage

The Company is committed to ensure a safe working environment. These risks are managed by the Company through the strong promotion of a health and safety culture and well-defined health and safety policies and procedures.

Technology / IT/ AI

The impact of digital technology continues, with the industry rapidly adjusting to consumers, clients and service providers operating in a mobile connected world, albeit through fragmented media. The Company has invested and continues to invest in its “IT” infrastructure to facilitate current and continued developments in this field.

Future Developments

The Board of Directors continue to actively review the Company’s performance on an ongoing basis ensuring that projects are secured with appropriate risk analysis and that suitable and sufficient resources are available to ensure the companies systems, procedures and policies are maintained at all times to ensure business success.

We continue to develop our personnel with increased focus on staff training and staff/personal development reviews. All employees have an opportunity to develop their skills within an environment of open and honest reporting systems, support mechanisms and a hierarchy of control mechanisms for key functions.

J.HARPER & SONS(LEOMINSTER) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 4 -
Additional Information and Explanations (ctd.)

Social, Political and Macro Implications

The coronavirus pandemic and the associated social changes, Brexit, world events and inflation has, and continues to, create a level of uncertainty for the UK construction sector. We have been following Government guidance since the outset and will continue to adjust the companies activities in line with outside influences.

The Company will continue to monitor the situation regarding the wider impact on service delivery resulting from changing client and supply chain behaviours.

People

The success of the Company depends on its ability to recruit, retrain and develop people with the necessary experience and expertise. It is critical that the Company has a highly skilled, diverse and motivated workforce as the demands and complexity of project requirements increase.

The Company seeks to mitigate this risk by offering market-competitive remuneration, training and career development opportunities. Remuneration and incentive packages are reviewed annually to assist in the attraction and retention of key employees.

Supply Chain

As a business, our success depends heavily on our ability to appropriately manage our supply chain. Failure to do this could result in project delivery issues, compliance issues and strained customer relationships, ultimately leading to damage to the Company reputation and financial penalties.

The Company seeks to develop long-term relationships with its key subcontractors whilst at the same time not becoming over-reliant on any particular one for the delivery of certain services. As part of its selection criteria, the Company seeks to work with subcontractors /suppliers who share its values.

Energy and Carbon Report

These are detailed within the Consolidated Accounts - see note 21.

Finance

The Company is able to operate through the cash reserves which have been built up through retained profits and management of working capital. Given the growth within the Company it is important that strong finances are in place and that key financial risks are managed. The Company depends on appropriate, accurate and timely financial information to manage the business effectively; if there is lack of visibility then poor decisions can be made. The Company continually reviews its financial position to ensure there are sufficient resources to meet current and potential future operational demands.

We remain confident that the company has sufficient and appropriate measures/resources in place to appropriately respond to all requirements.

On behalf of the board

Mr A Rees
Director
24 June 2026
J.HARPER & SONS(LEOMINSTER) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 5 -

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

Principal activities

The principal activity of the Company continues to be the provision of building contractor services delivering all construction types, including but not restricted to commercial, industrial, leisure and retail, health, education, refurbishment, public buildings, affordable and private housing of all sizes under all procurement routes.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £150,000. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Miss V Overton
Mr A Rees
Mr M Harvey
Mr M A Harvey
(Appointed 8 September 2025)
Mr A J Chadd
(Appointed 8 September 2025)
Mr P A Davies
(Appointed 8 September 2025)
Auditor

In accordance with the company's articles, a resolution proposing that CK Audit be reappointed as auditor of the company will be put at a General Meeting.

Energy and carbon report

The required disclosure is included in the consolidated accounts of the ultimate parent company Harper Group Management Limited.

Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

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

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

- 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.

J.HARPER & SONS(LEOMINSTER) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 6 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr A Rees
Director
24 June 2026
J.HARPER & SONS(LEOMINSTER) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J.HARPER & SONS(LEOMINSTER) LIMITED
- 7 -
Opinion

We have audited the financial statements of J.Harper & Sons(Leominster) Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the directors' r eport 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.

J.HARPER & SONS(LEOMINSTER) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J.HARPER & SONS(LEOMINSTER) LIMITED (CONTINUED)
- 8 -
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 identifie d material misstatements in the strategic report or the directors' r eport.

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' r esponsibilities s tatement, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identified and assessed the risks of material misstatement of the financial statements, in respect of irregularities whether due to fraud or error, or non compliance with laws and regulations and then designed and performed audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company by discussion and enquiry with the directors and management team and our general knowledge and experience of the construction industry.

We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, employment, and health and safety legislation;

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing correspondence with relevant regulators.

J.HARPER & SONS(LEOMINSTER) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J.HARPER & SONS(LEOMINSTER) LIMITED (CONTINUED)
- 9 -
Audit responses to risks identified

We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed included but were not limited to:

- Discussions with directors and management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

- Confirming our understanding of controls by performing a walk through test or observation and enquiry;

- Performing analytical procedures to identify any unusual or unexpected relationships;

- Challenging assumptions and judgements made by management in accounting for long term construction contracts including recognition of income and estimation of costs to complete;

- Identifying and testing journal entries;

- Reviewing unusual or unexpected transactions; and

- Agreeing the financial statement disclosures to underlying supporting documentation.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 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.

Blake Morris (Senior Statutory Auditor)
For and on behalf of CK Audit, Statutory Auditor
Chartered Accountants
No 4 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RH
24 June 2026
J.HARPER & SONS(LEOMINSTER) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
- 10 -
2025
2024
Notes
£
£
Turnover
3
31,175,299
23,042,491
Cost of sales
(27,855,172)
(20,342,872)
Gross profit
3,320,127
2,699,619
Administrative expenses
(3,089,359)
(2,498,533)
Other operating income
33,600
40,601
Operating profit
4
264,368
241,687
Interest receivable and similar income
8
180,776
162,267
Profit before taxation
445,144
403,954
Tax on profit
9
(108,651)
(102,161)
Profit for the financial year
336,493
301,793

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 13 to 24 form part of these financial statements.

J.HARPER & SONS(LEOMINSTER) LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2025
31 December 2025
- 11 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
11
11,340
15,120
Current assets
Debtors falling due after more than one year
12
4,512,600
4,409,625
Debtors falling due within one year
12
4,494,984
5,050,272
Cash at bank and in hand
7,548,353
5,185,947
16,555,937
14,645,844
Creditors: amounts falling due within one year
13
(11,872,571)
(10,151,886)
Net current assets
4,683,366
4,493,958
Total assets less current liabilities
4,694,706
4,509,078
Provisions for liabilities
Deferred tax liability
14
2,467
3,332
(2,467)
(3,332)
Net assets
4,692,239
4,505,746
Capital and reserves
Called up share capital
16
2,000
2,000
Profit and loss reserves
17
4,690,239
4,503,746
Total equity
4,692,239
4,505,746

The notes on pages 13 to 24 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 24 June 2026 and are signed on its behalf by:
Mr M Harvey
Director
Company registration number 00782078 (England and Wales)
J.HARPER & SONS(LEOMINSTER) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2024
2,000
4,351,953
4,353,953
Year ended 31 December 2024:
Profit and total comprehensive income
-
301,793
301,793
Dividends
10
-
(150,000)
(150,000)
Balance at 31 December 2024
2,000
4,503,746
4,505,746
Year ended 31 December 2025:
Profit and total comprehensive income
-
336,493
336,493
Dividends
10
-
(150,000)
(150,000)
Balance at 31 December 2025
2,000
4,690,239
4,692,239

The notes on pages 13 to 24 form part of these financial statements.

J.HARPER & SONS(LEOMINSTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 13 -
1
Accounting policies
Company information

J.Harper & Sons(Leominster) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Units 1 & 2, Bevan Industrial Estate, Brierley Hill, West Midlands, DY5 3TF.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the reduced disclosure exemptions for subsidiaries as follows:

- The requirements of Section 7 Statement of Cash Flows and Section 3 Financial Statement Presentation paragraph 3.17(d).

- The requirements of Section 11 paragraphs 11.39 to 11.48A and Section 12 paragraphs 12.26 to 12.29A providing the equivalent disclosures required by this FRS are included in the consolidated financial statements of the group in which the entity is consolidated.

- The requirement of Section 33 Related Party Disclosures paragraph 33.7.

J.Harper & Sons(Leominster) Limited is a wholly owned subsidiary of Harper Group Management Limited and the results of J.Harper & Sons(Leominster) Limited are included in the consolidated financial statements of Harper Group Management Limited which are available from Units 1 & 2 Bevan Industrial Estate, Brierley Hill, West Midlands, DY5 3TF.

1.2
Going concern

A true t the time of approving the financial statements, t he directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

The company recognises revenue from the following major sources:

- Construction contracts

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

J.HARPER & SONS(LEOMINSTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 14 -
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.4
Tangible fixed assets

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
10% straight line
Plant and machinery
25% reducing balance
Fixtures, fittings & equipment
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

J.HARPER & SONS(LEOMINSTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 15 -
1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include 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 transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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.

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 creditors, bank loans, loans from fellow group 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 paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

J.HARPER & SONS(LEOMINSTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Taxation

The tax expense represents the sum of the tax currently payable.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Leases
As lessee

Rentals payable under operating leases, including any lease incentives received, are charged to the profit and loss account on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

As lessor

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

J.HARPER & SONS(LEOMINSTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 17 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Construction contract revenue

Construction contract revenue reflects management's best estimate of the outcome and stage of completion of each contract. This includes the assessment of the profitability of each ongoing contract and estimates of costs to complete. For certain contracts the costs to complete and contract profitability are subject to significant estimation uncertainty.

Recoverability of amounts due from contract customers

The directors have considered the recoverability of amounts due from contract customers which at the year end amounted to £2,516,698 (202 4 - £4,355,308). Where amounts represent current valuations the directors are satisfied that amounts will be settled promptly on presentation of an invoice. The directors review amounts outstanding relating to retentions and consider whether there are any issues on the contract which need to be resolved, whether any further costs need to be taken in to account and the likelihood of amounts being recovered. Based on these reviews, the directors are satisfied with the recoverability of balances due from contract customers at the year end.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2025
2024
£
£
Turnover analysed by class of business
Sale of services
31,175,299
23,042,491
2025
2024
£
£
Other revenue
Interest income
180,776
162,267
4
Operating profit
2025
2024
Operating profit for the year is stated after charging:
£
£
Depreciation of tangible fixed assets
3,780
5,040
Operating lease charges
284,958
305,654
J.HARPER & SONS(LEOMINSTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 18 -
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
14,450
14,000
For other services
Taxation compliance services
750
750
All other non-audit services
750
750
1,500
1,500
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2025
2024
Number
Number
Administration staff
25
20
Site based
59
61
Total
84
81

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
3,765,329
3,445,104
Social security costs
473,376
336,252
Pension costs
508,330
188,278
4,747,035
3,969,634
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
501,020
283,079
Company pension contributions to defined contribution schemes
297,174
35,406
798,194
318,485

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2024 - 3).

J.HARPER & SONS(LEOMINSTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
7
Directors' remuneration
(Continued)
- 19 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
304,724
145,106
8
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
180,776
162,267
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
109,516
103,323
Deferred tax
Origination and reversal of timing differences
(865)
(1,162)
Total tax charge
108,651
102,161

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
445,144
403,954
Expected tax charge based on the standard rate of corporation tax in the UK of 25% (2024: 25%)
111,286
100,989
Effects of:
Expenses that are not deductible in determining taxable profit
2,053
1,172
Group relief
(4,688)
-
0
Taxation charge in the financial statements
108,651
102,161
J.HARPER & SONS(LEOMINSTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 20 -
10
Dividends
2025
2024
£
£
Interim paid
150,000
150,000
11
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 January 2025 and 31 December 2025
88,630
8,603
220,803
318,036
Depreciation and impairment
At 1 January 2025
88,630
8,603
205,683
302,916
Depreciation charged in the year
-
0
-
0
3,780
3,780
At 31 December 2025
88,630
8,603
209,463
306,696
Carrying amount
At 31 December 2025
-
0
-
0
11,340
11,340
At 31 December 2024
-
0
-
0
15,120
15,120
12
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
1,415,492
90,628
Gross amounts owed by contract customers
2,555,574
4,384,303
Amounts owed by group undertakings
82,500
72,000
Other debtors
287,257
359,218
Prepayments and accrued income
154,161
144,123
4,494,984
5,050,272
2025
2024
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
1,921,000
1,777,825
Other debtors
2,591,600
2,631,800
4,512,600
4,409,625
Total debtors
9,007,584
9,459,897
J.HARPER & SONS(LEOMINSTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
12
Debtors
(Continued)
- 21 -

Included in other debtors is an amount of £2,666,800 (2024 - £2,687,000) due from connected companies, of which £2,591,600 is due > 1 year (2024 - £2,631,800).

13
Creditors: amounts falling due within one year
2025
2024
£
£
Payments received on account
38,876
28,995
Trade creditors
11,637,879
9,913,081
Amounts owed to group undertakings
-
0
16,275
Corporation tax
54,963
48,769
Other taxation and social security
27,024
29,624
Other creditors
19,629
7,142
Accruals and deferred income
94,200
108,000
11,872,571
10,151,886
14
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2025
2024
Balances:
£
£
ACAs
2,467
3,332
2025
Movements in the year:
£
Liability at 1 January 2025
3,332
Credit to profit or loss
(865)
Liability at 31 December 2025
2,467
15
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
508,330
188,278

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

J.HARPER & SONS(LEOMINSTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 22 -
16
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,000
2,000
2,000
2,000
17
Profit and loss reserves
2025
2024
£
£
At the beginning of the year
4,503,746
4,351,953
Profit for the year
336,493
301,793
Dividends declared and paid in the year
(150,000)
(150,000)
At the end of the year
4,690,239
4,503,746
18
Contingent liabilities

The company is party to unlimited guarantees and cross guarantees with other group companies to secure overdraft facilities of Harper Group Plc and its subsidiaries. As at 31 December 2025 the amount owing by other group companies was £nil (2024 £nil).

Performance bonds

Performance bonds require the bondsmen to make payments to third parties in the event that the company does not perform what is expected of it under the terms of any related contracts or commercial arrangements. Performance bonds at the year end amounted to £1,780,421 (2024: £1,780,656). There were no c ash collateral deposits in connection with performance bonds held with insurance companies at the year end (2024 £nil).

19
Operating lease commitments
As lessee

Operating lease payments represent rentals payable by the company for certain of its properties which include, property rental, equipment rental and motor vehicles rentals.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2025
2024
£
£
Within 1 year
207,751
263,164
Years 2-5
465,835
539,382
After 5 years
1,497,000
1,598,000
2,170,586
2,400,546
J.HARPER & SONS(LEOMINSTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
19
Operating lease commitments
(Continued)
- 23 -

At the reporting end date the total future minimum sublease payments expected to be received under non-cancellable subleases was £13,600 (2024 £13,600).

20
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2025
2024
2025
2024
£
£
£
£
Connected companies
20,238
30,592
2,319
1,334
Other related parties
-
0
-
0
13,257
12,947
Rent
2025
2024
£
£
Key management personnel
61,000
61,000

The following amounts were outstanding at the reporting end date:

2025
2024
Amounts due from related parties
£
£
Connected companies
2,666,800
2,687,000

The amounts due from connected parties relate to loans given to two companies in which the directors of this company are directors and shareholders. The loans are interest free. The repayment terms on the loans vary from 3 to 37 years.

During the year, a net amount of £40,200 (2024 - £2,318,109) was repaid from connected companies on a prior loan issued.

21
Ultimate controlling party

The immediate parent company is Harper Group plc.

The directors regard Harper Group Management Limited, a company registered in England and Wales as the ultimate controlling party.

J.HARPER & SONS(LEOMINSTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
21
Ultimate controlling party
(Continued)
- 24 -

Harper Group Management Limited is the parent undertaking of the largest group of which the company is a member and for which group financial statements are drawn up.

Harper Group Management Limited prepares group financial statements and copies can be obtained from Units 1 & 2, Bevan Industrial Estate, Brierley Hill, West Midlands, DY5 3TF.

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