The director presents the strategic report for the year ended 30 September 2025.

This report aims to provide a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. The review is consistent with the size and nature of the business and is written in the context of the risks and uncertainties faced.

The principal activity of the group continued to be the design, fabrication and erection of structural steel frame buildings.

The directors consider turnover and gross margin to be the key performance indicators which best reflect the financial performance and overall strength of the group.

Turnover increased to £22.674M from £17.981M in the previous year. However, the gross profit percentage decreased to 14.04% from 20.7% in the previous year. As a result, the group reported a decrease in gross profit of £0.541M to £3.183M (2024: £3.724M).

The increase in turnover during the year was primarily driven by the sheer volume of projects delivered across the group, with a higher number of contracts secured and completed compared to the previous year. While steel prices stabilised following the volatility experienced in prior periods, the growth in revenue was largely attributable to the increased level of activity.

The reduction in gross margin reflects a change in project mix during the year, with a greater proportion of work undertaken for schools and Tier One contractors. These projects typically involve increased levels of compliance, coordination and project management, which require additional resources and can place pressure on margins when compared to more traditional warehouse developments.

During the early part of the financial year, Reynolds and Litchfield Limited experienced tighter margins, reflecting a change in the type of projects undertaken. The business saw a shift away from traditional warehouse developments towards schools and projects delivered for Tier One contractors, which generally require increased levels of coordination, compliance and project management. These contracts typically involve greater resource requirements, which placed pressure on margins during the early part of the year.

As the year progressed, Reynolds and Litchfield saw improvements in project delivery and operational efficiencies, together with a more balanced mix of work, which helped stabilise margins and performance in the latter part of the financial year.

Steel prices remained relatively stable throughout the year, following the volatility experienced in previous periods. While overall market conditions remained competitive and some larger schemes proved more challenging to secure, the company continued to maintain strong activity levels.

During the year, the group also undertook certain projects outside its traditional construction sector, where margins are typically lower than those achieved on core structural steel projects.

MRL Group benefits from long-standing relationships with its supply chain, which continue to support efficient procurement and reliable delivery across projects. These relationships have enabled the group to manage customer expectations effectively while maintaining consistent operational performance.

The group continued to invest in its operations, including the addition of new lower-emission vehicles to its fleet as part of its ongoing efforts to improve efficiency and reduce environmental impact.

The group benefits from long-standing relationships across its supply chain, which help support reliable procurement and enable the business to meet customer expectations even in challenging market conditions.

The financial position of the group remained strong at the year end, despite net current assets decreasing by £0.009M to £5.284M (2024: £5.293M).

Although the cash balance has decreased by £0.404M on the previous year to £2.846M (2024: £3.250M), the group continues to maintain a strong overall cashflow position.

At the balance sheet date, net assets have increased by £0.923M to £8.428M (2024: £7.505M).

The directors are pleased with the group’s performance during the year and its financial position at the year end. Costs, margins and expenses are closely monitored throughout the year to ensure the continued financial strength and stability of the business.

The business environment remains challenging, with the group continuing to operate in a competitive landscape. In addition, our performance is influenced by consumer spending habits and purchasing policies.

As the group undertakes larger contracts, the risk of bad debts may increase, particularly where credit insurance offers limited coverage. This also raises potential exposure to cash flow fluctuations. Nonetheless, the group maintains healthy cash reserves, and the overall risk remains manageable. We look at mitigating risks with better payment terms and upfront payments.

Financial instrument risk

Credit Risk

There remains an increased risk of customer default within certain areas of the construction industry.

The group’s credit risk is primarily limited to circumstances where customers become insolvent or enter bankruptcy and are unable to settle outstanding balances. This risk is further mitigated by monitoring customers’ financial position and available credit information. Amounts reported in the balance sheet are shown net of allowances for doubtful debts. The group’s customer base is diversified across a range of clients and sectors, helping to reduce concentration of insolvency-related credit risk.

Liquidity risk

The group remains liquid with sufficient funds to meet its external finance. There is a low liquidity risk present.

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside our control.

The group's future outlook remains highly positive, with strong order book. Ongoing investment in technology is expected to support this growth trajectory and contribute to further improvements in group margins.

During the year, Lightfoot Investment Property Limited, a subsidiary of MRL Group Limited, acquired additional investment properties. These acquisitions enhances the company’s property portfolio and further strengthens the group’s asset base.

Following the year end, the group completed the de-merger of Lightfoot Investment Property Limited as part of its strategic restructuring plans. The transaction is expected to enhance management focus on the Group's core operations and simplify the organisational structure. As the de-merger occurred after the reporting date, its impact is not reflected in the performance measures reported for the year ended 30 September 2026.

The group remains committed to investing in its systems, workforce, and operational processes to enhance its product and service offerings. This approach not only supports current operations but also positions the group to expand into new, high-potential markets offering sustainable and profitable growth.

Environmental sustainability continues to be a priority. Across all subsidiaries, the group is actively working to reduce its carbon footprint and increase recycling efforts. This includes transitioning the entire company vehicle fleet to electric and hybrid models.

Looking ahead, the group will maintain its focus on delivering high-quality, sustainable products and services, with a strong emphasis on minimising environmental impact and enhancing social responsibility.

Turnover has increased to £22.674M from £17.981M in the previous year.

Gross margin percentage, however, has decreased this year to 14.04% from 20.7% from in the previous year. The group has also incurred a decrease in gross profit of £541K to £3.183M (2024: £3.724M).

Administrative expenses were £2.054M compared to £1.630M the previous year, an increase of £0.424M (26.0%).

Operating profit for the year was £1.292M (2024: £2.327M).

Group Net Current Assets were £5.284M as at 30th September 2025, an increase over the previous year (FY24: £5.293M).

On behalf of the board

The director presents his annual report and financial statements for the year ended 30 September 2025.

The principal activity of the company continued to be that of a holding company.

The principal activity of the group continued to be that of the design, fabrication and erection of structural steel.

The results for the year are set out on page 9.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

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

The director is responsible for preparing the Annual 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 he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 group and company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

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 auditor of the company 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 auditor of the company is aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

We have audited the financial statements of MRL Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2025 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 group's and the parent company's affairs as at 30 September 2025 and of the group's 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 group and parent 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 group's and 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 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 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 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.

In the light of the knowledge and understanding of the group and the parent company and their 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 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.

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 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

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.

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

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

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

- we 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 legislation such as 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 through making enquiries of management and reviewing legal and professional fee invoices.

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

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

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

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

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

- tested journal entries posted during the year and at the year end to identify unusual transactions;

- investigated the rationale behind significant or unusual transactions; and

- performed walkthrough tests on major transaction cycles; and

- performed detailed testing on the significant accounting estimates used by management in evaluating long term contract progress and profitability.

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

- agreeing financial statement disclosures to underlying supporting documentation;

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

- reviewing correspondence with HMRC; and

- reviewing legal and professional fees incurred during the year to identify any potential indications of non-compliance with laws and regulations.

There are inherent limitations in our audit procedures described above. 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.

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £781,569 (2024 - £1,170,851 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

MRL Group Limited (“the company”) is a private limited company, limited by shares, domiciled and incorporated in England and Wales. The registered office is Unit B1 Cinderhill Trading Estate, Weston Coyney Road, Longton, Stoke on Trent, Staffordshire, ST3 5LB.

The group consists of MRL Group Limited and all of its subsidiaries.

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 amounts 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 is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

The consolidated group financial statements consist of the financial statements of the parent company MRL Group Limited together with all entities controlled by the parent company (its subsidiaries).

All financial statements are made up to 30 September 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated on a survey basis by quantity surveyors. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Amounts recoverable on construction contracts are included in debtors and are valued, inclusive of profit, at work executed at contract prices plus variations. Any work invoiced in advance of the work being completed is recorded in creditors. Contracts are valued based on managements judgement for each individual contract.

Turnover and costs on contracts are recognised as activity progresses once the outcome can be assessed with reasonable certainty. Full provision is made for anticipated future losses. Where contract payments received exceed amounts recoverable, these amounts are included in creditors.

Other income from rentals of property are recognised when the amount of income can be measured reliably, it is probable that the economical benefits associated with the transactions will flow to the entity and the costs incurred in respect of the transaction can be measured reliably.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

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

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

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 recognised in the income statement.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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).

Recoverable amount is the higher of fair value less costs to sell and value in use.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Cost is calculated using the first in first out method.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

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

Basic financial assets, 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.

Financial assets are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.

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 group after deducting all of its liabilities.

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. 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. Amounts 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.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the group 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 group.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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.

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

The costs of short-term employee benefits are recognised as a liability and an expense.

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

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

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss 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 leased asset are consumed.

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.

In the application of the group’s accounting policies, the director is 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.

Critical judgements in applying the Group's accounting policies

In the director's opinion there are no critical judgements, apart from those involving estimations (dealt with separately below), that they have made in applying group's accounting policies and that have had a significant effect on the amounts recognised in the financial statements.

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.

Management review each construction contract ongoing at the year end in order to obtain an accurate valuation of the work completed to date and therefore any profits or losses on contract to recognise. Management recognise profits on contracts once the outcome can be measured with reasonable certainty. Management will review the level of work completed and the costs incurred on each individual contract at the year end and then estimate the likelihood of recoverability of the applied for balances in excess of the certified amounts (confirmed directly by the customer) with reference to post year end certifications. The contract valuation will be adjusted based on this, with any balances that are unlikely to be recovered being provided against.

Any anticipated future losses are provided for in full. Uncertainties in the valuation of individual contracts relate to the actual values recoverable on each contract.

Management have estimated that 50% of the retentions balance on ongoing contracts will not be due within the next 12 months on the basis that half of the retention is released on completion of a contract, whilst the remaining half is released 12 to 24 months after this date.

Uncertainties in the ageing of this retention balance relate to the actual timing of the contract completion dates.

Investment properties are measured using the fair value model and as such this requires significant estimation from the director. The valuations are based on the director's knowledge of the portfolio of investment properties, taking account of geographical locations and estimated rental values and, where relevant, recent valuations performed by external experts.

A contract cost provision has been included, which management has calculated based on actual rectification works after date, along with an estimation of additional costs that they expect to be incurred in the next 12 months.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).

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:

Investment property comprises residential and commercial property. The fair value of the residential investment property has been arrived at on the basis of a valuation carried out on 02 September 2025 by Goodchilds Estate Agents and Lettings. The fair value of the commercial property has been arrived at on the basis of a valuation carried out by Mounsey Surveyors Limited. Both valuations were arrived at by reference to market evidence of transaction prices for similar properties and the state of the rental market in the area where the properties are situated.

The historic cost of investment properties as at 30 September 2025 was £2,299,656 (2024 - £1,921,645).

Details of the company's subsidiaries at 30 September 2025 are as follows:

Lightfoot Investment Property Limited (company no 09644986) is exempt from audit by virtue of section 479A of the Companies Act 2006.

Trade debtors are stated after provisions for impairment of £587,882 (2023 - £195,766).

The long-term loans are secured by way of a first legal charge over the properties to which they relate, along with a limited guarantee provided by Scott Lightfoot of £100,000,

In addition to the first legal charge, the Allica bank loan is also secured with a debenture over Lightfoot Investment Property Limited.

The long-term bank loans are for mixed periods of 6, 12.5, 15, 20 or 25 years from the initial date of drawdown. Three of the loans are interest rates plus BOE basic rate.

A loan requires repayment at the end of its 25 year term, in June 2045. Interest is paid at a rate of 3.78% on an interest only basis.

A loan requires repayment at the end of its 20 year term, in September 2043. Interest is paid at a rate of 5% on an interest only basis.

Two further new loans were taken out in the prior year where payments are on a repayment basis, both over a term of 15 years. Interest is being paid on both of these loans at a rate of 2.5% over BOE base rate and both are due to be fully repaid by December 2037.

The contract cost provision is made up of amounts provided for in relation to estimated future costs to be incurred on the completion of contracts, based on the expected profitability of each contract.

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. Contributions totalling £745 (2024 - £37,108) were payable to the fund at the balance sheet date and are included in creditors.

Each ordinary share has full voting rights, full dividend rights and the right to participate in distributions on winding up.

Profit and loss reserves are made up of accumulated profits less accumulated losses and distributions up to the reporting date. This is a distributable reserve.

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

Reynolds and Litchfield Limited and AD Hall Limited are 95% subsidiaries of MRL Group Limited, The non-controlling interest at the financial year-end was £38,201 (2024 - £93,512) and the share of profit on ordinary activities after taxation was £43,178 (2024 - £73,420). Dividends were also paid to the non-controlling interest during the year of £61,000 (2024 - £154,544).

Transactions with group companies

During the year, MRL Group Limited received dividends totalling £700,000 (2024 - £1,240,000) from Reynolds and Litchfield Limited. Total balances outstanding from this company at the year-end totalled £8,333 (2024 - £585,933).

During the year, MRL Group Limited received dividends totalling £751,000 (2024 - £nil) from A.D. Hall Limited. Total balances outstanding to this company at the year-end totalled £69,153 (2024 - £646,565).

Transactions with other related parties

The total balance outstanding from Access Plant Limited, an associated company in which Scott Lightfoot is a 50% shareholder, at the year-end totalled £7,500 (2024 - £7,500).

Compensation to key management personnel in the year amounted to £182,328 (2024 - £152,944).

Compensation to close family members of key management personnel in the year amounted to £97,697 (2024 - £132,150).

During the year, the company received a part repayment of a loan from a company under common control of director and shareholder. The amount due from the company at the year end was £600,672 (2024 - £691,086). There are no official terms associated with the loan. The loan is interest free and repayable on demand.

Dividends totalling £Nil (2024 - £178,800) were paid in the year in respect of shares held by the company director.

Loans have been granted to the director on the basis that interest is charged at HMRC's official rate of interest per annum, where the balance exceeds £10,000.

The ultimate controlling party of the group is S Lightfoot.

De-merger transaction

On 25 November 2025, the group completed a demerger of Lightfoot Investment Property Limited, a wholly-owned subsidiary due to a group reorganisation. As a result of the transaction, ownership of Lightfoot Investment Property Limited was transferred to the shareholders of the parent company and Lightfoot Investment Property Limited ceased to be a subsidiary of the group.

At the reporting date, the net assets of Lightfoot Investment Property Limited included within the consolidated financial statements amounted to approximately £812,142.

The transaction occurred after the reporting date and has therefore not been recognised in these financial statements. The directors consider the transaction to be a non-adjusting event after the reporting period.

Employee Ownership Trust

On 25 November 2025, subsequent to the year end, the Company's shareholders completed the sale of a majority shareholding in the Company to an Employee Ownership Trust ("EOT"). Following completion of the transaction, the EOT acquired 59.72% of the issued share capital of the Company and became the Company's controlling shareholder. The remaining 40.28% of the issued share capital continues to be held by existing shareholders.

The EOT holds its shares for the benefit of eligible employees of the Company in accordance with the relevant employee ownership legislation.

As the transaction occurred after the reporting date of 30 September 2026, it has not been reflected in the amounts recognised in these financial statements. The directors consider the transaction to be a non-adjusting event after the reporting period.

The transaction resulted in a change in the ownership structure of the Company. The financial effects of the transaction are not reflected in these financial statements.