REGISTERED NUMBER: 02431549 (England and Wales)

FOR

Page

Company Information  

1

Group Strategic Report  

2

Report of the Directors  

5

Report of the Independent Auditors  

8

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

20

DIRECTORS:

L J Galvin

D L Green

J M Handley

T L Rayer

REGISTERED OFFICE:

Boyce's Building

40-42 Regent Street

Clifton

Bristol

BS8 4HU

REGISTERED NUMBER:

02431549 (England and Wales)

AUDITORS:

Lawes & Co UK Limited (Statutory Auditors)

Boyce's Building

40-42 Regent Street

Clifton

Bristol

BS8 4HU

The directors present their strategic report of the company and the group for the year ended 30 September 2025.

REVIEW OF BUSINESS

The Group's principal activity remains the provision of Groundworks and Civil Engineering services to national housebuilders across the South West & Wales region.

The housebuilding sector has continued to operate within a challenging environment, with inflationary pressures, elevated interest rates and planning delays impacting affordability, sales rates and the timing of new developments.

The Group has also been affected by wider government policy and regulatory factors. Ongoing inefficiencies within the planning system have delayed site releases, impacting programme mobilisation across a number of projects. In addition, statutory increases in employment costs, including National Living Wage increases during the year and changes to Employer National Insurance contributions effective from April 2025, have contributed to increased labour costs.

During the year, the Group secured a number of significant contracts which were scheduled to commence part-way through the period. However, several of these projects were delayed beyond the year end, resulting in forecast revenue not being realised within the financial year.

In response, the Group made a strategic decision to retain its skilled workforce in anticipation of these projects commencing. Whilst awaiting mobilisation, labour was redeployed to complete existing developments, with a focus on external finishing works and progressing sites through to adoption. This resulted in a period of underutilisation and a higher proportion of lower-margin, labour-intensive works, which has contributed to reduced gross margins and overall profitability.

The Group also invested in establishing a new operating region during the year, incurring upfront costs which have impacted short-term profitability but are expected to support future growth.

Despite these factors, the Group has maintained strong cash discipline, continuing to meet its obligations to the supply chain and preserve liquidity.

The Group enters the new financial year with its strongest order book to date, and the Directors remain confident that, as delayed projects commence and the new region matures, trading performance will improve.

The results for the financial year ended 30 September 2025 has seen turnover decrease to £37,050,745 (2024 - £41,888,256) and a loss on ordinary activities before taxation of £1,403,092 (2024 - £770,368 profit).

2025

2024

£

£

Sales

37,050,745

41,888,256

Earnings before interest, tax, depreciation and amortisation

(141,903

)

1,488,484

Depreciation charge

1,174,775

803,673

Profit/(loss) before tax

(1,403,092

)

770,368

Profit/(loss) after tax

309,511

495,073

Net assets

9,320,736

9,011,226

PRINCIPAL RISKS AND UNCERTAINTIES

The construction industry operates within a high-risk, low-margin environment influenced by external factors such as government policy, market confidence, inflation, interest rates, labour availability and weather conditions, all of which can significantly impact programme delivery and profitability.

The Group maintains a robust risk management framework covering strategic, operational, financial, legal and reputational risks, with controls and mitigation strategies in place to manage exposure.

Competition for new work remains strong, placing pressure on margins, while the financial stability of key customers continues to present an inherent risk. The Group mitigates this through maintaining strong client relationships and developing new business opportunities.

The ongoing shortage of skilled labour remains a challenge, and the Group continues to invest in training and development to support workforce retention and capability.

Health and safety remains a key priority, with continued investment in systems, processes and personnel to ensure risks are effectively managed and the highest standards are maintained.

SECTION 172(1) STATEMENT

Under the Companies Act 2006 s172, the Directors must ensure that they act in a way they consider, in good faith, to most likely promote the success of the Group for the benefit of its members as a whole. In doing so, they must have regard, amongst other matters, to the following :

(a) The likely consequences of any decision in the long term

(b) The interest of the Group's employees

(c) The need to foster the Group's business relationships with suppliers customers and others

(d) The impact of the Group's operations on the community and the environment

(e) The desirability of the Group maintaining a reputation for high standards of business conduct, and

(f) The need to act fairly as between members of the Group.

As directors of this Group, and in the light of the considerations above, we also consider the interests of local communities surrounding our site locations and the impact our work has within those areas.

We do this within the day to day management of the Group and overseeing financial performance together with other strategic matters formally on a monthly basis.

This includes reviewing business risks, environmental matters, health and safety and other compliance matters. Maintaining a healthy balance sheet, including sufficient cash reserves, allows us to be in the best position to support the Group's long term strategies.

Maintaining a key role in the day to day management facilitates open communication with our employees. We strive to engender key values in our employees. We are fair in terms of support and training and are especially keen to develop and promote talent internally.

Employee welfare is under continual review and staff retention a priority.

FINANCIAL KEY PERFORMANCE INDICATORS

The directors use a number of key measures to monitor and manage performance within the business. The key performance indicators used are turnover and operating profit and these are disclosed in the financial statements. The directors monitor these key performance indicators on a regular basis throughout the year to ensure the group's strategy is achieved.

GOING CONCERN

The directors continue to adopt the going concern basis of accounting in preparing the annual financial statements knowing that the Group is well placed to manage business risks and has adequate financial resources for operation.

ON BEHALF OF THE BOARD:

J M Handley - Director

1 July 2026

The directors present their report with the financial statements of the company and the group for the year ended 30 September 2025.

DIVIDENDS

No dividends will be distributed for the year ended 30 September 2025.

FUTURE DEVELOPMENTS

The group's business activities, together with factors that may impact its future development and performance, are set out in the Review of Business. The financial position of the group, including cashflows, are detailed in the financial statements. The group has sufficient financial resources and a number of contracts in place to allow the business to navigate its operational existence for the foreseeable.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

L J Galvin

D L Green

J M Handley

T L Rayer

POLITICAL DONATIONS AND EXPENDITURE

The group made charitable donations totalling £4,670 to various causes advancing healthcare and medical research.

EMPLOYMENT OF DISABLED PERSONS

Disability will not of itself justify the non-recruitment of an applicant for a position within the company. Such reasonable adjustments to application procedures shall be made as are required to ensure that applicants are not disadvantaged because of their disability.

Staff members who are, or become disabled, are encourage to tell the company about their condition so that they can be supported as appropriate at work with every reasonable and practical consideration given to ensure they can remain at work.

The company also supports and encourages the right to work in an environment that is free from harassment of any description, or any other form of unwanted behaviour. This includes harassment in the form of unwanted conduct related to a relevant Protected Characteristic.

EMPLOYEE INVOLVEMENT

It is Group policy to to ensure the Galtec team receive the support of the company to enable an individual to perform at their full potential. The company has procedures in place to monitor and reward performance, but to also help identify the most appropriate forms of support to assist employees in performance of their duties. Key to this is the managing and developing of individual and team performance which the company encourages as an ongoing activity. This includes assessing relevant training and development needs.

STREAMLINED ENERGY AND CARBON REPORTING

1. Energy consumption

Scope

Activity

Energy

Usage

Energy

Usage

Measure

GHG

Emissions

Litres

kWh

kWh

tC02e

S1

Site Diesel

1,086,609

10,866,090

2,250

S1

Vehicle Fleet Diesel

138,368

1,383,680

286

S1

Vehicle Fleet Unleaded

31,259

278,205

58

S2

Purchase of Grid Electricity

81,484

81,484

17

S3

Vehicle Fleet EV charging

107

107

-

STREAMLINED ENERGY AND CARBON REPORTING - continued

2. Greenhouse Gas Emissions

Scope

Description

Measure

GHG

Emissions

kWh

tC02e

S1

Direct Emissions

12,527,975

2,594

S2

Indirect Emissions

81,484

17

S3

Business Travel Employees Owned Vehicles

107

-

12,609,566

2,611

3. Intensity Ratio

Year

Turnover

Emissions

Intensity

£m

tC02e

tC02e per £m

2025

37

2,611

70.56

4. Methodology

We used the 2024 Government GHG Conversion Factors for Company Reporting to calculate CO2e emissions. Data was gathered from utility bills, fleet fuel cards, and internal procurement system. Information was extracted and extrapolated on a sample basis.

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;

-

state whether applicable accounting standards have been followed, subject to any material departures disclosed

and explained in the financial statements;

-

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors,  Lawes & Co UK Limited (Statutory Auditors), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J M Handley - Director

1 July 2026

Opinion

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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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 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 six, 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.

We identify and assess the risks of material misstatement in the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks. This includes assessing the risk of non-compliance of laws and regulations, evaluating management's incentives and opportunities for fraudulent manipulation of the financial statements (including override of control) and management bias in accounting estimates.

Based on our understanding of the entity and its environment, we identified principal risks of non-compliance and fraud related to: timing of income recognition, areas of estimation uncertainty and management override of controls. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

Audit procedures performed by the engagement team included, but were not limited to:

-

enquiries with management, including consideration of known or suspected instances of fraud, and

non-compliance with laws and regulations.

-

reviewing the design and implementation of controls.

-

reviewing journal entries and any potential unusual transactions.

-

testing and tracing revenue income.

In conducting the work above, we apply due care and professional scepticism throughout. However, there are limitations within procedures outlined above and the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment.

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.

Paul Freeman BA FCA FCCA (Senior Statutory Auditor)

for and on behalf of Lawes & Co UK Limited (Statutory Auditors)

Boyce's Building

40-42 Regent Street

Clifton

Bristol

BS8 4HU

2 July 2026

TURNOVER

4

37,050,745

41,888,256

Raw materials and consumables

34,703,466

36,685,504

Other external expenses

503,975

1,314,854

35,207,441

38,000,358

1,843,304

3,887,898

Depreciation

1,174,207

803,712

Other operating expenses

1,992,108

2,407,096

3,166,315

3,210,808

OPERATING (LOSS)/PROFIT

6

(1,323,011

)

677,090

Interest receivable and similar income

106,888

189,929

(1,216,123

)

867,019

Interest payable and similar expenses

7

186,969

96,651

(LOSS)/PROFIT BEFORE TAXATION

(1,403,092

)

770,368

Tax on (loss)/profit

8

(1,712,603

)

275,295

PROFIT FOR THE FINANCIAL YEAR

309,511

495,073

Profit attributable to:

Owners of the parent

309,511

495,073

PROFIT FOR THE YEAR

309,511

495,073

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR

THE YEAR

309,511

495,073

Total comprehensive income attributable to:

Owners of the parent

309,511

495,073

FIXED ASSETS

Tangible assets

11

5,012,873

4,453,318

Investments

12

-

-

5,012,873

4,453,318

CURRENT ASSETS

Stocks

13

487,089

495,456

Debtors

14

9,890,128

9,749,898

Cash at bank and in hand

3,090,728

4,512,392

13,467,945

14,757,746

CREDITORS

Amounts falling due within one year

15

6,868,150

7,659,078

NET CURRENT ASSETS

6,599,795

7,098,668

TOTAL ASSETS LESS CURRENT

LIABILITIES

11,612,668

11,551,986

CREDITORS

Amounts falling due after more than one

year

16

(1,931,746

)

(1,701,868

)

PROVISIONS FOR LIABILITIES

20

(360,185

)

(838,892

)

NET ASSETS

9,320,737

9,011,226

CAPITAL AND RESERVES

Called up share capital

21

5,000

5,000

Capital redemption reserve

5,000

5,000

Retained earnings

9,310,737

9,001,226

SHAREHOLDERS' FUNDS

9,320,737

9,011,226

The financial statements were approved by the Board of Directors and authorised for issue on 1 July 2026 and were signed on its behalf by:

J M Handley - Director

FIXED ASSETS

Tangible assets

11

25,488

25,488

Investments

12

70,100

70,100

95,588

95,588

CURRENT ASSETS

Debtors

14

2,118,405

2,110,338

Cash at bank

905

93

2,119,310

2,110,431

CREDITORS

Amounts falling due within one year

15

1,956,805

1,996,397

NET CURRENT ASSETS

162,505

114,034

TOTAL ASSETS LESS CURRENT

LIABILITIES

258,093

209,622

CAPITAL AND RESERVES

Called up share capital

21

5,000

5,000

Share premium

60,102

60,102

Capital redemption reserve

5,000

5,000

Retained earnings

187,991

139,520

SHAREHOLDERS' FUNDS

258,093

209,622