Hilliard Civil Engineering (Nottingham) Limited Company accounts

COMPANY REGISTRATION NUMBER: 07389100

Hilliard Civil Engineering (Nottingham) Limited

Financial Statements

31 March 2025

Hilliard Civil Engineering (Nottingham) Limited

Financial Statements

Year ended 31 March 2025

Contents	Page

Strategic report	1

Director's report	3

Independent auditor's report to the members	5

Statement of income and retained earnings	9

Statement of financial position	10

Statement of cash flows	11

Notes to the financial statements	12

Hilliard Civil Engineering (Nottingham) Limited

Strategic Report

Year ended 31 March 2025

The Director presents her strategic report for the year ended 31 March 2025. Business Review Hilliard Civil Engineering (Nottingham) Limited provides civil engineering services to the commercial and housebuilding sectors covering road installations and residential groundworks predominantly in the UK. Formed in 2010 the company undertakes work on behalf of local and national companies. Key Financial data The Company reports a downturn in figures following another challenging year. Continued economic factors such as rising interest rates, political uncertainty, rises in Stamp Duty and country wide affordability problems have impacted on the new housing market. It is hoped that a post year end reduction in interest rates will reinvigorate the housing market. Delays in planning at council level have had a distinct impact on the company with significant contracts being delayed which has been recognised at at Government level, the company are encouraged by government announcements that they are to accelerate planning at council level. Despite a difficult year the company maintains some stability with net current assets of £338k (2024 £1.6m) and shareholder funds of £761k (2024 £1.79m). The liquidity and underlying financial position of the company enables it to meet its short-term working capital requirements. The strength of the company in prior years has supported a further challenging year and there remains no reliance on external borrowing at the balance sheet date with HMRC liabilities fully up to date. A restructuring and streamlining of the company was undertaken in January 2025 and it is anticipated that this will benefit the company in the long term. Key Performance Indicators The company use EBITDA as a key performance indicator and there has been a negative swing from the results of the 2024 financial year end due to contract delays. Due to the asset intensive nature of the business the reported numbers are affected by large figures for Depreciation and Hire Purchase interest. Principal Risks, Uncertainties and Financial Risk Management The company’s operations expose it to a variety of financial risks that include price risk, credit risk, liquidity risk and competitive risk. During the reporting period there has been continued financial pressure from inflation, interest rates and stamp duty all impacting on the housing market during the reporting year. Reductions to interest rates and inflation post year end are encouraging although at present the Director is mindful of recent house prices undergoing a period of recalibration with current growth forecasts being modest with stretched affordability and higher mortgage rates reducing demand. The recent Glenigan report for 2026 2027 published in November 2025 confirms that the expected boost to the construction industry as a whole has been slow to materialise and lost momentum siting geopolitical uncertainty and week investor confidence as the primary problems. Looking ahead the report confirms that expected rises in consumer spending and government spending will be the main growth drivers and that above inflation wage growth and lower interest rates have ensured households improve their assessments on what can be afforded which is expected to have a positive impact. The considered actions and forward planning taken by us ensure that the company continues to have sufficient working capital to fulfil its contracts on behalf of clients without the requirement for external finance during the 2025 financial year end. Price Risk The company’s exposure to price risk consists mainly of movements in the cost of materials and sub contract labour. The directors keep under review the price fluctuations and continue to agree contract prices in advance with clients and suppliers now with shorter expiry deadlines. Credit risk The company is exposed to the usual credit risk associated with this type of business with its main area of risk being the agreement of applications for payment and variations on projects. In order to manage credit risk, the directors review projects on a regular basis in order to identify and monitor performance and make provisions for identified risks The company has no significant concentrations of credit risk. Amounts shown in the balance sheet best represent the maximum credit exposure in the event other parties fail to perform their obligations under financial instruments. Liquidity risk Liquidity risk is the risk that the company will have difficulties in meeting its obligations arising from financial liabilities. The company remains financially stable despite a difficult year and has no reliance on external bank finance. At the balance sheet date whilst there has been a reduction in retained profits there remains sufficient financial headroom to enable the financial obligations arising from its usual trading activities to be met. Competitive risk The company operates in a competitive market with projects subject to tender. The Director is confident that the quality of service provided, coupled with competitive pricing will continue to deliver high customer retention rates and attract further new business in a highly competitive market. The company continues to maintain long standing relationships with its customers. Future developments and performance The company has secured further projects spanning over the next 24 months. The company has retained a positive financial position post year end in order to ensure that it is able to deliver its on-going services and maintain its ability to complete projects of varying size and complexity without external financing pressure.

This report was approved by the board of directors on 26 June 2026 and signed on behalf of the board by:

Miss K D Hilliard
Director

Registered office:

H1, Ash Tree Court

Mellors Way

Nottingham Business Park

Nottingham

United Kingdom

NG8 6PY

Hilliard Civil Engineering (Nottingham) Limited

Director's Report

Year ended 31 March 2025

The director presents her report and the financial statements of the company for the year ended 31 March 2025 .

Directors

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

Miss K D Hilliard
Mr M W Hilliard	(Resigned 20 January 2025)

Dividends

Particulars of recommended dividends are detailed in note 12 to the financial statements.

Disclosure of information in the strategic report

The directors have prepared a review of the business, together with a summary of the principle risks and uncertainties affecting the company. These are detailed in the strategic report on page 1.

Director's responsibilities statement

The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the director is required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The director is 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. She is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

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

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

This report was approved by the board of directors on 26 June 2026 and signed on behalf of the board by:

Miss K D Hilliard
Director

Registered office:

H1, Ash Tree Court

Mellors Way

Nottingham Business Park

Nottingham

United Kingdom

NG8 6PY

Hilliard Civil Engineering (Nottingham) Limited

Independent Auditor's Report to the Members of Hilliard Civil Engineering (Nottingham) Limited

Year ended 31 March 2025

Opinion

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

Basis for opinion

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

Conclusions relating to going concern

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

- the strategic report and the director's 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 director's 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 director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of the director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, and UK tax legislation. Audit procedures performed by the engagement team included: - Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; - Enquiry of management and those charged with governance around actual and potential litigation and claims. - Enquiry of entity in the compliance functions to identify any instances of non-compliance with laws and regulations. - Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. - Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. 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. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. - Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report

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

Helen Tidyman

(Senior Statutory Auditor)

For and on behalf of

Sumer Auditco Limited

Chartered Accountants & statutory auditor

Stone House

55 Stone Road Business Park

Stone Road

Stoke-on-Trent

Staffordshire

ST6 6SR

26 June 2026

Hilliard Civil Engineering (Nottingham) Limited

Statement of Income and Retained Earnings

Year ended 31 March 2025

		2025	2024
Note		£	£
Turnover	4	12,692,876	15,699,907

Cost of sales	12,340,474	15,006,695
	-------------	-------------
Gross profit	352,402	693,212

Distribution costs		–	142,481
Administrative expenses		1,464,127	448,566
		------------	---------
Operating (loss)/profit	5	( 1,111,725)	102,165

Other interest receivable and similar income	9	7,062	3,173
Interest payable and similar expenses	10	254,051	44,358
		------------	---------
(Loss)/profit before taxation		( 1,358,714)	60,980

Tax on (loss)/profit	11	( 330,227)	21,691
		------------	--------
(Loss)/profit for the financial year and total comprehensive income		( 1,028,487)	39,289
		------------	--------

Dividends paid and payable	12	–	( 481,200)

Retained earnings at the start of the year	1,788,839	2,230,750
	------------	------------
Retained earnings at the end of the year	760,352	1,788,839
	------------	------------

All the activities of the company are from continuing operations.

Hilliard Civil Engineering (Nottingham) Limited

Statement of Financial Position

31 March 2025

	2025		2024
Note	£	£	£

Fixed assets

Tangible assets	14		3,021,499	3,085,838

Current assets

Stocks	15	50,513	49,405
Debtors	16	2,679,693	3,996,015
Cash at bank and in hand		340,359	569,231
		------------	------------
		3,070,565	4,614,651

Creditors: amounts falling due within one year	17	2,732,949		2,979,593
		------------		------------
Net current assets			337,616	1,635,058
			------------	------------
Total assets less current liabilities			3,359,115	4,720,896

Creditors: amounts falling due after more than one year	18		2,405,690	2,408,758

Provisions	20	192,273	522,499
		------------	------------
Net assets		761,152	1,789,639
		------------	------------

Capital and reserves

Called up share capital	23	800	800
Profit and loss account	24	760,352	1,788,839
		---------	------------
Shareholders funds		761,152	1,789,639
		---------	------------

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

These financial statements were approved by the board of directors and authorised for issue on 26 June 2026 , and are signed on behalf of the board by:

Miss K D Hilliard
Director

Company registration number: 07389100

Hilliard Civil Engineering (Nottingham) Limited

Statement of Cash Flows

Year ended 31 March 2025

	2025	2024
	£	£

Cash flows from operating activities

(Loss)/profit for the financial year	( 1,028,487)	39,289

Adjustments for:
Depreciation of tangible assets	951,150	199,425
Other interest receivable and similar income	( 7,062)	( 3,173)
Interest payable and similar expenses	254,051	44,358
Loss/(gains) on disposal of tangible assets	6,744	( 126,351)
Tax on (loss)/profit	( 330,227)	21,691
Accrued expenses	51,720	50,174

Changes in:
Stocks	( 1,108)	14,808
Trade and other debtors	1,316,322	( 521,991)
Trade and other creditors	( 347,873)	( 291,149)
	------------	---------
Cash generated from operations	865,230	( 572,919)

Interest paid	( 254,051)	( 44,358)
Interest received	7,062	3,173
Tax received	–	1
	---------	---------
Net cash from/(used in) operating activities	618,241	( 614,103)
	---------	---------

Cash flows from investing activities

Purchase of tangible assets	( 893,554)	( 2,909,764)
Proceeds from sale of tangible assets	–	2,470,812
	---------	------------
Net cash used in investing activities	( 893,554)	( 438,952)
	---------	------------

Cash flows from financing activities

Proceeds from borrowings	197,192	( 79,409)
Payments of finance lease liabilities	( 150,751)	1,773,002
Dividends paid	–	( 481,200)
	---------	------------
Net cash from financing activities	46,441	1,212,393
	---------	------------

Net (decrease)/increase in cash and cash equivalents	( 228,872)	159,338
Cash and cash equivalents at beginning of year	569,231	409,893
	---------	---------
Cash and cash equivalents at end of year	340,359	569,231
	---------	---------

Hilliard Civil Engineering (Nottingham) Limited

Notes to the Financial Statements

Year ended 31 March 2025

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is H1, Ash Tree Court, Mellors Way, Nottingham Business Park, Nottingham, NG8 6PY, United Kingdom.

2. Statement of compliance

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

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

At the balance sheet date, the company maintained a positive cash balance amounting to £340k (2024 : £569k). Following the end of the financial period the company continued to experience contract delays, and therefore the director has taken steps to ensure the long term future of the company. On 19 June 2026 the company entered into a construction finance agreement with Bibby Financial Services Ltd securing funding so that the company can continue to meet its obligations as they fall due. The director continues to provide ongoing financial support.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Amortisation

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

	Goodwill	-	10% straight line

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

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

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

Plant & machinery	-	25% reducing balance
Fixtures, fittings & equipment	-	25% reducing balance
Motor vehicles	-	25% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Construction contracts

Where the outcome of construction contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the period end. Where the outcome of construction contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised as an expense in the period in which they are incurred. The entity uses the percentage of completion method to determine the amounts to be recognised in the period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. Costs incurred for work performed to date do not include costs relating to future activity, such as for materials or prepayments.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4. Turnover

Turnover arises from:

	2025	2024
	£	£
Sale of goods	12,692,876	15,699,907
	-------------	-------------

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

5. Operating (loss)/profit

Operating profit or loss is stated after charging/crediting:

	2025	2024
	£	£
Depreciation of tangible assets	951,150	199,425
Loss/(gains) on disposal of tangible assets	6,744	( 126,351)
	---------	---------

6. Auditor's remuneration

	2025	2024
	£	£
Fees payable for the audit of the financial statements	18,500	18,500
	--------	--------

7. Staff costs

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

	2025	2024
	No.	No.
Production staff	7	8
	----	----

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

	2025	2024
	£	£
Wages and salaries	220,664	284,888
Social security costs	20,707	22,943
Other pension costs	8,499	9,308
	---------	---------
	249,870	317,139
	---------	---------

8. Director's remuneration

The director's aggregate remuneration in respect of qualifying services was:

	2025	2024
	£	£
Remuneration	33,447	33,349
	--------	--------

9. Other interest receivable and similar income

	2025	2024
	£	£
Interest on cash and cash equivalents	6,310	3,173
Other interest receivable and similar income	752	–
	-------	-------
	7,062	3,173
	-------	-------

10. Interest payable and similar expenses

	2025	2024
	£	£
Interest on obligations under finance leases and hire purchase contracts	254,051	44,358
	---------	--------

11. Tax on (loss)/profit

Major components of tax (income)/expense

	2025	2024
	£	£

Current tax:

UK current tax income	–	( 1)

Deferred tax:

Origination and reversal of timing differences	( 330,227)	21,692
	---------	--------
Tax on (loss)/profit	( 330,227)	21,691
	---------	--------

Reconciliation of tax (income)/expense

The tax assessed on the (loss)/profit on ordinary activities for the year is higher than (2024: higher than) the standard rate of corporation tax in the UK of 25 % (2024: 19 %).

	2025	2024
	£	£
(Loss)/profit on ordinary activities before taxation	( 1,358,714)	60,980
	------------	--------
(Loss)/profit on ordinary activities by rate of tax	( 339,679)	11,586
Adjustment to tax charge in respect of prior periods	–	( 1)
Effect of expenses not deductible for tax purposes	9,452	4,900
Effect of capital allowances and depreciation	50,734	( 71,434)
Unused tax losses	279,493	54,948
Deferred tax movement	(330,227)	21,692
	------------	--------
Tax on (loss)/profit	( 330,227)	21,691
	------------	--------

12. Dividends

	2025	2024
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )	–	481,200
	----	---------

13. Intangible assets

	Goodwill
	£
Cost
At 1 April 2024 and 31 March 2025	500,000
	---------
Amortisation
At 1 April 2024 and 31 March 2025	500,000
	---------
Carrying amount
At 31 March 2025	–
	---------
At 31 March 2024	–
	---------

14. Tangible assets

	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£
Cost
At 1 April 2024	3,020,212	51,035	675,509	3,746,756
Additions	733,775	2,244	157,535	893,554
Disposals	( 42,755)	–	–	( 42,755)
	------------	--------	---------	------------
At 31 March 2025	3,711,232	53,279	833,044	4,597,555
	------------	--------	---------	------------
Depreciation
At 1 April 2024	251,823	33,505	375,590	660,918
Charge for the year	832,163	4,624	114,363	951,150
Disposals	( 36,012)	–	–	( 36,012)
	------------	--------	---------	------------
At 31 March 2025	1,047,974	38,129	489,953	1,576,056
	------------	--------	---------	------------
Carrying amount
At 31 March 2025	2,663,258	15,150	343,091	3,021,499
	------------	--------	---------	------------
At 31 March 2024	2,768,389	17,530	299,919	3,085,838
	------------	--------	---------	------------

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Plant and machinery	Motor vehicles	Total
	£	£	£
At 31 March 2025	2,558,838	288,909	2,847,747
	------------	---------	------------
At 31 March 2024	2,636,592	248,682	2,885,274
	------------	---------	------------

15. Stocks

	2025	2024
	£	£
Raw materials and consumables	50,513	49,405
	--------	--------

16. Debtors

	2025	2024
	£	£
Trade debtors	1,320,364	1,824,641
Amounts owed by customers on construction contracts	831,197	1,115,121
Prepayments and accrued income	25,799	33,057
Director's loan account	–	5,912
Other debtors	502,333	1,017,284
	------------	------------
	2,679,693	3,996,015
	------------	------------

17. Creditors: amounts falling due within one year

	2025	2024
	£	£
Trade creditors	1,427,567	1,776,258
Accruals and deferred income	200,185	148,465
Corporation tax	82,517	82,517
Social security and other taxes	10,887	14,881
Obligations under finance leases and hire purchase contracts	808,301	955,984
Director loan accounts	197,197	5
Other creditors	6,295	1,483
	------------	------------
	2,732,949	2,979,593
	------------	------------

At the year end 31 March 2025 HSBC held a debenture dated 15 March 2011 over all money and liabilities whatever, whenever and howsoever incurred by the company whether now or in the future, this was discharged in full on the 2 June 2026 and replaced with a fixed and floating charge containing a negative pledge dated the 19 June 2026 from Bibby Financial Services Limited

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

	2025	2024
	£	£
Obligations under finance leases and hire purchase contracts	2,405,690	2,408,758
	------------	------------

At the year end 31 March 2025 HSBC held a debenture dated 15 March 2011 over all money and liabilities whatever, whenever and howsoever incurred by the company whether now or in the future, this was discharged in full on the 2 June 2026 and replaced with a fixed and floating charge containing a negative pledge dated the 19 June 2026 from Bibby Financial Services Limited

19. Finance leases and hire purchase contracts

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

	2025	2024
	£	£
Not later than 1 year	808,301	955,984
Later than 1 year and not later than 5 years	2,405,690	2,408,758
	------------	------------
	3,213,991	3,364,742
	------------	------------

20. Provisions

	Deferred tax (note 21)
	£
At 1 April 2024	522,499
Charge against provision	( 330,226)
	---------
At 31 March 2025	192,273
	---------

21. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2025	2024
	£	£
Included in provisions (note 20)	192,273	522,499
	---------	---------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2025	2024
	£	£
Accelerated capital allowances	192,273	522,499
	---------	---------

22. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 8,499 (2024: £ 9,308 ).

23. Called up share capital

Issued, called up and fully paid

	2025		2024
	No.	£	No.	£
Ordinary shares of £ 1 each	800	800	800	800
	----	----	----	----

24. Reserves

Profit and loss account - This reserve records retained earnings and accumulated losses.

25. Analysis of changes in net debt

	At 1 Apr 2024	Cash flows	At 31 Mar 2025
	£	£	£
Cash at bank and in hand	569,231	(228,872)	340,359
Debt due within one year	(955,989)	(49,509)	(1,005,498)
Debt due after one year	(2,408,758)	3,068	(2,405,690)
	------------	---------	------------
	( 2,795,516)	( 275,313)	( 3,070,829)
	------------	---------	------------

26. Operating leases

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

	2025	2024
	£	£
Not later than 1 year	8,690	215,307
Later than 1 year and not later than 5 years	43,110	20,498
	--------	---------
	51,800	235,805
	--------	---------

Hilliard Civil Engineering (Nottingham) Limited

Notes to the Financial Statements (continued)

Year ended 31 March 2025

27. Director's advances, credits and guarantees

During the year the director entered into the following advances and credits with the company:

	2025
	Balance brought forward	Advances/ (credits) to the director	Amounts repaid	Balance outstanding
	£	£	£	£
Miss K D Hilliard	( 5)	476,354	( 673,546)	( 197,197)
Mr M W Hilliard	5,912	180,159	( 186,071)	–
	-------	---------	---------	---------
	5,907	656,513	( 859,617)	( 197,197)
	-------	---------	---------	---------

	2024
	Balance brought forward	Advances/ (credits) to the director	Amounts repaid	Balance outstanding
	£	£	£	£
Miss K D Hilliard	( 79,414)	554,562	( 475,153)	( 5)
Mr M W Hilliard	50,081	341,268	( 385,437)	5,912
	--------	---------	---------	-------
	( 29,333)	895,830	( 860,590)	5,907
	--------	---------	---------	-------

28. Related party transactions

Ordinary dividends paid to the directors were £0 (2024 £481,200). As at the financial year end the company were owed £4,519 (2024 : £291,582) from Hilliard Holdings Ltd who are not part of the group. The company has taken advantage from the disclosures relating to FRS102 section 33.1 regarding transactions between fellow group companies, where the subsidiary party to the transaction is wholly owned by such a member.

29. Controlling party

The ultimate parent company is Hilliard Holdings (2025) Limited, a company whose registered office is H1 Ash Tree Court, Mellors Way, Nottingham Business Park, Nottingham, NG8 6PY.