REGISTERED NUMBER: 07950398 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements

for the Period 1 April 2024 to 30 September 2025

for

JEG Holdings Limited

Previously known as

Griggs Homes Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Consolidated Income Statement

11

Consolidated Other Comprehensive Income

12

Consolidated Balance Sheet

13

Company Balance Sheet

14

Consolidated Statement of Changes in Equity

15

Company Statement of Changes in Equity

16

Consolidated Cash Flow Statement

17

Notes to the Consolidated Cash Flow Statement

18

Notes to the Consolidated Financial Statements

19

DIRECTORS:

C J Griggs

R L Griggs

REGISTERED OFFICE:

The Grain Yard

5 Little Hays

Borehamwood

Hertfordshire

WD6 4DG

REGISTERED NUMBER:

07950398 (England and Wales)

SENIOR STATUTORY AUDITOR:

Jonathan Bregman BSc FCA FCCA

AUDITORS:

TC Group

Statutory Auditor

First Floor

Spitalfields House

Stirling Way

Borehamwood

Hertfordshire

WD6 2FX

The directors present their strategic report of the company and the group for the period 1 April 2024 to 30 September 2025.

Principle Activities and review of the business

The principal activity of the business during the year under review continued to be that of property construction and development.

REVIEW OF BUSINESS

Turnover & Profitability

In the period ended 30 September 2025 our bespoke operation has continued to expand its geographical reach across the Home Counties, including Surrey and Essex, whilst maintaining a strong and consistent pipeline within our core areas of Hertfordshire and London. The continued strength of the brand has driven increased levels of tender opportunities and project wins, supporting this expansion.

During the period, we have also expanded our presence in the commercial sector, securing and delivering high-quality projects alongside our residential portfolio. Most notably, this has included a significant office extension and refurbishment project in St Albans.

More information on our bespoke homes and our developments can be found at https://www.griggshomes.co.uk/

During the period Griggs Property Care, a company which provides property maintenance, repair and reactive emergency call-out services to managing agents, landlords and private clients, was established as a subsidiary of JEG Holdings Limited. GPC undertakes a wide range of maintenance works, helping clients protect and maintain their properties through a responsive and reliable service. During the period, GPC continued to strengthen its reputation, generating a significant proportion of its workload through repeat business, referrals and the development of long-standing client relationships.

A summary of the Group's financial results for the period ended 30 September 2025 are set out below:

September 2025

March 2024

Turnover

£53,673,517

£37,444,640

Gross Profit

£5,517,555

£3,570,558

Profit / (Loss) before tax

£510,178

£99,876

Shareholders' Funds

£2,088,667

£2,070,227

Future Developments

The market for new build homes remains active and whilst we are cautious because of the continuing macro-economic environment, the outlook for the current year is encouraging with a good pipeline of bespoke projects in and around London. We continue to win new and significant residential projects.

In the current financial year, we remain committed to bespoke new build homes and high-end refurbishments. In addition we have expanded our team to provide additional capability for commercial projects, which we see as an important component of our turnover going forward.

The directors are satisfied that the Group has sufficient resources and liquidity to enable it to not only to continue as a going concern for the foreseeable future but to also ensure the Group continues to invest in its infrastructure and staff so that it is in a stable and profitable position going forward.

PRINCIPAL RISKS AND UNCERTAINTIES

The main financial risks faced by the Group are funding risk and credit risk. As with any similar business there remains uncertainty and risk about the ability of the company to achieve its business objectives within its current funding. The directors continually review the funding status of the company and its exposure to liquidity risk.

The directors actively manage credit risk to reduce the risk to a minimum level.

The values of the receivables, payables and cash balances in the accounts approximate their book value. The Group does not enter into derivative transactions.

Some risks are excluded because the management considers them not to be material to the company. Additionally there may be risks and uncertainties not presently known to the management team or which they are deemed immaterial to the group.

The main financial risks faced by the Group are funding risk and credit risk. As with any similar business there remains uncertainty and risk about the ability of the group to achieve its business objectives within its current funding. The directors continually review the funding status of the group and its exposure to liquidity risk.

Market risks

The Group's operations and its results are subject to a number of factors which could affect the Group's business, many of which are common to the construction industry and beyond the company's control, such as a potential global economic downturn; and the potential increase in acts of terrorism. The impact of any of these factors (or a combination of them) may adversely affect available contracts in the building industry and high end residential market.

Although management seeks to identify risks at the earliest opportunity, many of these risks are beyond the control of the Group. The Group has in place recovery plans to enable it to respond to major incidents or crises and takes steps to minimise these exposures to the greatest extent possible.

The other risks relate to the state of the property market and the likelihood of a downturn due to Brexit. The directors are closely monitoring the external factors.

Liquidity

The group ensures there are sufficient funds available to operate , however there is a potential risk that the Group may be at risk of liquidity issues depending on the size and exposure of a contract.

To mitigate against this risk the management team meets regularly to review the financial performance of the Group, the working capital requirements of individual projects and ensures that valuation reports are regularly updated and agreed with clients to ensure cash flow risks are mitigated.

Fixed operating expenses

The Group's operating expenses such as personnel costs, operating leases, information technology and telecommunications are to a large extent fixed. As such, operating results may be vulnerable to short-term changes in revenues.

The Group has appropriate management systems in place to create flexibility in operating cost base so as to optimise operating profits in volatile trading conditions.

Key senior personnel and management

The success of the Group's business is partially attributable to the efforts and abilities of its senior managers. Failure to retain its senior management team or other key personnel may threaten the success of the Group's operations.

The Group has appropriate systems in place for recruitment, reward and compensation and performance management. Development and maintenance of the Group's culture also plays a leading role in minimising risk.

The strategy in the next financial period is to continue to maintain turnover in a controlled manner through careful financial management with a firm control of overheads.

ON BEHALF OF THE BOARD:

C J Griggs - Director

23 June 2026

The directors present their report with the financial statements of the company and the group for the period 1 April 2024 to 30 September 2025.

CHANGE OF NAME

The group passed a special resolution on 2 April 2026 changing its name from Griggs Homes Limited to JEG Holdings Limited.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review continued to be that of property construction and development.

DIVIDENDS

The total distribution of dividends for the period ended 30 September 2025 will be £ 364,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2024 to the date of this report.

C J Griggs

R L Griggs

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group 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;

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, TC Group, will be proposed for re-appointment.

ON BEHALF OF THE BOARD:

C J Griggs - Director

23 June 2026

Opinion

We have audited the financial statements of JEG Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 30 September 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 2025 and of the group's profit for the period then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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 the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. 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

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

- We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;

- We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;

- We considered the nature of the industry, the control environment and business performance, including the key drivers for management's remuneration;

- We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;

- We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

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. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

Jonathan Bregman BSc FCA FCCA (Senior Statutory Auditor)

for and on behalf of TC Group

Statutory Auditor

First Floor

Spitalfields House

Stirling Way

Borehamwood

Hertfordshire

WD6 2FX

23 June 2026

TURNOVER

3

53,673,517

37,444,640

Cost of sales

(48,155,962

)

(33,874,082

)

GROSS PROFIT

5,517,555

3,570,558

Administrative expenses

(4,990,269

)

(3,402,049

)

OPERATING PROFIT

5

527,286

168,509

Interest receivable and similar income

14,254

93,595

541,540

262,104

Interest payable and similar expenses

6

(31,362

)

(162,228

)

PROFIT BEFORE TAXATION

510,178

99,876

Tax on profit

7

(127,738

)

(49,691

)

PROFIT FOR THE FINANCIAL PERIOD

382,440

50,185

Profit attributable to:

Owners of the parent

382,440

50,185

PROFIT FOR THE PERIOD

382,440

50,185

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

382,440

50,185

Total comprehensive income attributable to:

Owners of the parent

382,440

50,185

FIXED ASSETS

Intangible assets

11

2,018,232

2,018,232

Tangible assets

12

432,039

115,473

Investments

13

-

-

2,450,271

2,133,705

CURRENT ASSETS

Debtors

14

8,043,812

7,104,529

Cash at bank and in hand

823,117

1,574,203

8,866,929

8,678,732

CREDITORS

Amounts falling due within one year

15

(8,900,763

)

(8,622,395

)

NET CURRENT (LIABILITIES)/ASSETS

(33,834

)

56,337

TOTAL ASSETS LESS CURRENT LIABILITIES

2,416,437

2,190,042

CREDITORS

Amounts falling due after more than one year

16

(282,982

)

(90,947

)

PROVISIONS FOR LIABILITIES

21

(44,788

)

(28,868

)

NET ASSETS

2,088,667

2,070,227

CAPITAL AND RESERVES

Called up share capital

22

1,605

1,605

Capital redemption reserve

23

500

500

Retained earnings

23

2,086,562

2,068,122

SHAREHOLDERS' FUNDS

2,088,667

2,070,227

The financial statements were approved by the Board of Directors and authorised for issue on 23 June 2026 and were signed on its behalf by:

C J Griggs - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

2,018,832

2,018,732

2,018,832

2,018,732

CURRENT ASSETS

Debtors

14

1,603

1,603

CREDITORS

Amounts falling due within one year

15

(1,963,647

)

(1,963,547

)

NET CURRENT LIABILITIES

(1,962,044

)

(1,961,944

)

TOTAL ASSETS LESS CURRENT LIABILITIES

56,788

56,788

CAPITAL AND RESERVES

Called up share capital

22

1,603

1,603

Retained earnings

23

55,185

55,185

SHAREHOLDERS' FUNDS

56,788

56,788

Company's profit for the financial year

364,000

-

The financial statements were approved by the Board of Directors and authorised for issue on 23 June 2026 and were signed on its behalf by:

C J Griggs - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

1,605

2,017,937

500

2,020,042

Changes in equity

Total comprehensive income

-

50,185

-

50,185

Balance at 31 March 2024

1,605

2,068,122

500

2,070,227

Changes in equity

Dividends

-

(364,000

)

-

(364,000

)

Total comprehensive income

-

382,440

-

382,440

Balance at 30 September 2025

1,605

2,086,562

500

2,088,667

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

1,603

55,185

56,788

Changes in equity

Balance at 31 March 2024

1,603

55,185

56,788

Changes in equity

Dividends

-

(364,000

)

(364,000

)

Total comprehensive income

-

364,000

364,000

Balance at 30 September 2025

1,603

55,185

56,788

Cash flows from operating activities

Cash generated from operations

1

(321,277

)

88,293

Interest paid

(22,589

)

(160,979

)

Interest element of hire purchase payments paid

(8,773

)

(1,249

)

Tax paid

(42,551

)

(127,849

)

Net cash from operating activities

(395,190

)

(201,784

)

Cash flows from investing activities

Purchase of tangible fixed assets

(415,896

)

(20,577

)

Sale of tangible fixed assets

41,822

1

Interest received

14,254

93,595

Net cash from investing activities

(359,820

)

73,019

Cash flows from financing activities

Capital repayments in year

273,920

28,394

Amount introduced by directors

121,624

-

Amount withdrawn by directors

(27,620

)

(177,083

)

Equity dividends paid

(364,000

)

-

Net cash from financing activities

3,924

(148,689

)

Decrease in cash and cash equivalents

(751,086

)

(277,454

)

Cash and cash equivalents at beginning of period

2

1,574,203

1,851,657

Cash and cash equivalents at end of period

2

823,117

1,574,203

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

1.4.24

to

Year Ended

30.9.25

31.3.24

£

£

Profit before taxation

510,178

99,876

Depreciation charges

82,463

31,025

Profit on disposal of fixed assets

(24,799

)

-

Finance costs

31,362

162,228

Finance income

(14,254

)

(93,595

)

584,950

199,534

(Increase)/decrease in trade and other debtors

(1,208,909

)

1,727,651

Increase/(decrease) in trade and other creditors

302,682

(1,838,892

)

Cash generated from operations

(321,277

)

88,293

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Period ended 30 September 2025

30.9.25

1.4.24

£

£

Cash and cash equivalents

823,117

1,574,203

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

1,574,203

1,851,657

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 30.9.25

£

£

£

Net cash

Cash at bank and in hand

1,574,203

(751,086

)

823,117

1,574,203

(751,086

)

823,117

Debt

Finance leases

(62,789

)

(273,920

)

(336,709

)

Debts falling due within 1 year

(50,000

)

12,500

(37,500

)

Debts falling due after 1 year

(62,500

)

62,500

-

(175,289

)

(198,920

)

(374,209

)

Total

1,398,914

(950,006

)

448,908

1.	STATUTORY INFORMATION

JEG Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 September 2025..

No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group's equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder's share of changes in equity since the date of the combination.

The consolidated financial statements of the group have been prepared using the merger accounting method, include the financial statements of the company, and its subsidiaries.

Critical accounting 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.

Significant judgement and estimates relates to the recognition of revenue on long term contracts. Recognition of revenue and profit on long term contracts are based on judgements made in respect of the ultimate profitability of a contract. Such judgements are arrived through the use of estimates in relation to the costs and value of the work performed to date and to be performed in bringing contracts to completion. The company has appropriate control procedures to ensure all estimates are determined on a consistent basis and subject to appropriate review and authorisation.

Revenue recognition

When the outcome of a construction contract can be estimated reliably, contract revenue and contract costs are recognised as revenue and expenses respectively by reference to the stage of completion of the contract activity at the balance sheet date. When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred that are likely to be recoverable. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

Contract revenue comprises the initial amount of revenue agreed in the contract and variations in the contract work and claims that can be measured reliably. A variation or a claim is recognised as contract revenue when it is probable that the customer will approve the variation or negotiations have reached an advanced stage such that it is probable that the customer will accept the claim.

The stage of completion is measured by reference to the ratio of contract costs incurred to date to the estimated total costs for the contract. Costs incurred during the financial year in connection with future activity on a contract are excluded from the costs incurred to date when determining the stage of completion of a contract. Such costs are shown as construction contract work-in-progress on the balance sheet unless it is not probable that such contract costs are recoverable from the customers, in which case, such costs are recognised as an expense immediately.

At the balance sheet date, the cumulative costs incurred plus recognised profit (less recognised loss) on each contract is compared against the progress billings. Where the cumulative costs incurred plus the recognised profits (less recognised losses) exceed progress billings, the balance is presented as due from customers on construction contracts within "Amount recoverable on contract". Where progress billings exceed the cumulative costs incurred plus recognised profits (less recognised losses), the balance is presented as due to customers on construction contracts within "Payments on account".

Progress billings not yet paid by customers and retentions by customers are included within "Amount recoverable on contract". Advances received are included within "Payments on account".

Goodwill

Goodwill is being amortised evenly over its estimated useful life. An annual impairment review will be carried out and any inpairment is provided in that year.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

25% on reducing balance and 15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

15% on reducing balance

Computer equipment

-

25% on reducing balance and 15% on reducing balance