The director presents the strategic report for the year ended 31 October 2025.

Pert Bruce Holdings Limited was incorporated on 23rd October, 2017 to facilitate a management buyout of Pert Bruce Construction Limited, a construction company based in North East of Scotland with a very stable construction background and ambitious new projects with joint venture partners. The present financial statements represent the group position.

Pert Bruce Construction Limited delivered a resilient performance in 2025, meeting our turnover objectives and maintaining a sound profit outcome despite a mixed market backdrop . We have embarked on 2026 with a strong order book and our cash position continues to be strong.

The company's principal activities during the present year continued to be within the construction industry, including domestic, commercial and public funded projects and developments. The company offers a range of traditional and contemporary skills, and prides itself upon the professionalism and attention to detail that is the cornerstone of its business ethos. The company continues to employ and train a regular intake of trades apprentices as it sees this as the future to the progression and sustainability of the business and the industry as a whole.

The group is involved in a Joint Venture to develop a 62 acre site at the former Sunnyside Hospital in Montrose. The development is being undertaken by Sunnyside Estates Limited which is 50% owned by Pert Bruce Construction Limited. The project includes affordable housing, redevelopment of the old hospital buildings and new build homes, and whilst housing market conditions have remained cautious, construction and sales activity have continued.

A similar Joint Venture developing a former hospital site at Lesmahagow, Lanarkshire is in the early stages of development with the group having a 25% stake in the joint venture company, Sunnyside Estates (Birkwood) Limited.

The directors and senior management continually monitor the key risks facing the company together with assessing the controls used for managing these risks. The principal risks and uncertainties facing the company are as follows;

• General economic conditions - the directors acknowledge that the general economic conditions can have a significant impact upon the company's trade. The risks in this area include inflationary pressures pushing prices and payroll costs up, as well as rising interest rates which have a direct impact upon the housing market. Our resilient procedures and dedicated staff ensure sustained productivity levels. The company is aware of the importance of cash movement and as such maintains strict cash flow procedures including prompt and regular payment of suppliers.

• Competitor pressure - the construction industry is a highly competitive market, but the company manages this risk by providing an excellent bespoke service at a competitive price with a strong emphasis on collaboration with the client, developing achievable work programmes and including end of product support. As a result of this it has built up a large client base with regular repeat business.

• Reliance of key suppliers - the company continues to directly employ the main bulk of its workforce however the company does depend upon strong support from its supply chain including materials and a large group of trusted specialist sub-contractors. The directors consider that having an experienced and diverse pool of sub-contractors/suppliers and the ability to manage them adds to the strength of the company and maintaining a number of alternative lists for their projects ensures the avoidance of over reliance on any particular provider.

• Loss of key personnel - the company has a highly experienced and loyal senior management team and a skilled and motivated on-site workforce. The company places a major emphasis on life work balance, training and team working. The company provides excellent working conditions and remuneration to all its staff and has a strong emphasis on equal opportunity. The directors do not foresee any immediate loss or workforce issues and the company has critical illness insurance “Key man cover” for the Key personnel. There is strength and depth across all the required key areas of skill. The company has a long serving workforce and staff turnover is very low.

The directors use a range of detailed performance indicators on all projects, and on an annual basis the main financial performance indicators used from the trading company accounts are as follows;

In addition to the above, the joint venture company which is 50% owned, produced £3.29 million of turnover, and a pre tax loss of £312,099.

Pert-Bruce delivered a resilient performance in 2025, meeting our turnover objectives and maintaining a sound profit outcome despite a mixed market backdrop.

As is widely reflected across the construction sector, the year ahead is expected to remain challenging in several areas. Cost inflation has eased versus prior peaks but remains persistent, with continued pressure from labour availability and wage dynamics, alongside further increases in employment-related costs. Unless fully recovered through pricing, procurement, and commercial discipline, these factors may place pressure on margins. The market also continues to experience heightened financial stress and a greater focus on cash management, supply chain resilience, and robust pre-contract assessment and disciplined change control increasingly important.

People and capability remain central to our strategy. We continue to maintain a core employed workforce and invest in the next generation through trade and professional apprenticeships. At the same time, consistent with wider industry conditions, we will keep our resourcing model under review to ensure long-term sustainability in the context of ongoing wage and employment cost pressures and the continuing skills challenge across the sector.

Regulatory requirements also remain a key theme for the year ahead. The evolving building safety regime continues to increase the emphasis on evidence, competence, documentation, and programme certainty, all of which we are actively addressing through our governance and operating procedures.

Our Joint Venture Homes Company, Sunnyside Estates Ltd, continued to deliver affordable homes in line with planning obligations. While housing market conditions have remained cautious and sales rates can be sensitive to mortgage availability and buyer confidence, construction and sales activity have continued, and we remain alert to improving conditions as the market stabilises.

Overall, while the sector outlook points to modest growth accompanied by ongoing risks and uncertainty, we remain committed to disciplined execution, strong client service, and continuous improvement. By maintaining a focus on safety, commercial rigour, and operational delivery, we believe Pert-Bruce is well positioned to navigate the year ahead and to build a more resilient and productive business for the long term.

On behalf of the board

The director presents his annual report and financial statements for the year ended 31 October 2025.

The principal activity of the company and group continued to be that of construction which is undertaken wholly in the UK.

The results for the year are set out on page 11. The net group profit for the year amounted to £426,284 (2024; £272,020) before corporation tax.

The net assets of the group stood at £2,950,879 (2024; £3,163,031) at the year end and a healthy cash flow position has been maintained with net current assets of £1,506,737 (2024; £1,624,145).

Ordinary dividends were paid amounting to £457,000. 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:

Looking ahead, our forward order book remains strong and is supported by a healthy pipeline of opportunities. While demand is uneven across end-markets, our diversified client base and long-established relationships continue to provide good visibility and confidence in delivering our turnover ambitions for 26/27.

As is widely reflected across the construction sector, the year ahead is expected to remain challenging in several areas. Cost inflation has eased versus prior peaks but remains persistent, with continued pressure from labour availability and wage dynamics, alongside further increases in employment-related costs.

The joint venture with Sunnyside Estates will continue to be a source of future work, and while housing market conditions have remained cautious and sales rates can be sensitive to mortgage availability and buyer confidence, construction and sales activity have continued, and we remain alert to improving conditions as the market stabilises.

Overall, while the sector outlook points to modest growth accompanied by ongoing risks and uncertainty, we remain committed to disciplined execution, strong client service, and continuous improvement. By maintaining a focus on safety, commercial rigour, and operational delivery, we believe Pert-Bruce is well positioned to navigate the year ahead and to build a more resilient and productive business for the long term.

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

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.

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

United Kingdom company law requires the director to prepare financial statements for each financial year. Under that law, the director has elected to prepare the group and parent company 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 parent 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;

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

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent 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 parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Pert Bruce Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 31 October 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 group's and 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 group or 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;

• we identified the laws and regulations applicable to the company through discussion with directors and management and for a group within the construction industry we deem these to be standard company laws and regulations which have a direct effect upon the financial statements (Companies Acts, FRS 102 and UK corporation tax laws) as well as those that have an indirect effect via the operations of the company (employment law, health & safety regulations, planning & building regulations, environmental regulations, and GDPR);

• the engagement partner ensured that the engagement team were aware of this and collectively had appropriate competence, capabilities and skills to recognize non-compliance with applicable laws and regulations over the course of their audit work;

We assessed the susceptibility of the group’s 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 a 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; and

• considering the risks attached to revenue recognition and work in progress valuations due to the need for estimates and judgements of work carried out at the year end date.

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

• performed a full comparison of the annual results to identify and unusual or unexpected amounts;

• tested journal entries to identify any unusual transactions;

• considered whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

• investigated the rationale behind significant or unusual transactions where found; and

• reviewed the ledgers for any related party transactions .

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;

• discussion with management over any actual or potential litigation or claims against the company;

• reviewing correspondence with relevant regulators and legal advisors where any potential non-compliance exists, including any ongoing matters with HMRC and health and safety advisers; and;

• discussions with management detailing high level review of the activities of the year, and investigation of any matters that would impact upon the financial statements.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations. This risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion or misrepresentation.

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.

This report is made solely to the parent 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 parent 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 parent company and the parent 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 section 408 of the 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 £634,345 (2024 - £123,345 profit).

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

Pert Bruce Holdings Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Munros House, Broomfield Industrial Estate, Broomfield Road, Montrose, Angus, DD10 8SY.

The group consists of the company, its trading subsidiary Pert Bruce Construction Limited, and the proportionate share of its joint venture companies, Sunnyside Estate Limited and Sunnyside Homes (Birkwood) Limited.

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, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

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.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Pert Bruce Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 October 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.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

There continued to be a strong demand for the trading company's services. A healthy profit was achieved in the year, with a stable bank positiontrue and significant net current assets. The group has demonstrated that it can react swiftly to changes in demand in recent challenging times and has sufficient reserves to act as a cushion to any temporary changes. Looking forward, it has a strong order book and high levels of demand from a wide customer base.

The directors therefore have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future and therefore continues to adopt the going concern basis in preparing its financial statements.

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

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.

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 20 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

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

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

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 profit and loss account.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

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.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

Investments in joint ventures are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the joint venture using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the joint venture on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in the joint venture.

Losses in excess of the carrying amount of an investment in a joint venture are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

In the parent company financial statements, investments in joint ventures are accounted for at cost less impairment.

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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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 (or cash-generating unit) 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 (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

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.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

Work in progress on long-term contracts is valued at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account.

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

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

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

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

The group only enters into financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable within one year, typically trade debtors and trade creditors, are measured, initially and subsequently, at the undiscounted amount of cash other other consideration expected to be paid or received.

Financial assets measured at cost and amortised are assessed at the end of each reporting period for evidence of impairment and if found, and impairment loss is recognised in the Statement of Comprehensive Income.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

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.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future 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.

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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The 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. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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

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

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

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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

Government grant assistance of a revenue nature is credited to the profit and loss account in the same period as a related expenditure. Grants that become receivable for compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the company with no future related costs shall be recognised in the income in the period in which it becomes receivable.

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. In particular, work in progress valuations and the carrying values of properties require such estimates to be made. 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.

All the group's sales are generated in the UK.

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

Their aggregate remuneration comprised:

The holding company has no direct employees.

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:

Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:

Handelsbanken plc hold standard security over property with a carrying value of £620,750 and a bond and floating charge over the assets of the company. There is also a second ranking floating charge in favour of J Pert.

The freehold and leasehold land and buildings were valued on an open market basis by a firm of independent Chartered Surveyors, J & E Shepherd in July 2023. The directors confirm that they believe that the carrying value of the property remains appropriate at the year end.

Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts for the group and the company would have been approximately the below values.

Details of the company's subsidiaries at 31 October 2025 are as follows:

Details of joint ventures at 31 October 2025 are as follows:

The joint ventures have been accounted for in accordance with the equity method of accounting.

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 2 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The term of the bank loans are as follows: 6 years, with no repayments in the first 12 months, and a fixed interest rate of 2.5%, and 6 years and a variable interest rate of 3.75% above base rate which was 4.00% as at 31st October 2025.

Handelsbanken plc hold a Standard Security over property owned by the company at Munros House, Broomfield Industrial Estate, Montrose. The company has also granted a Bond and Floating Charge to Handelsbanken plc and a Floating Charge to J Pert.

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.

Sunnyside Homes (Birkwood) Limited has incurred losses as a result of preliminary and early building work being undertaken on the residential development. As the losses are in excess of the carrying amount of the investment a provision has been recorded. This provision reflects the group's 25% share of the losses to date.

Sunnyside Estate Limited incurred a large loss in the year due to cautious buyers but construction continued on the site as the market picked up with plots due to be sold in the current year.

Dividends totalling £457,000 (2024 - £36,000) were paid in the year in respect of shares held by the company's directors.

The company provided a loan to two of the directors in the previous year of which £431,456 was outstanding at the start of the year. Interest was charged at the prescribed rate of 2.25% (3.75% from April 2025) and therefore additional interest charges of £8,806 were accrued within the year until the date of repayment. The initial loan was repaid on the 24th July 2025.

The group is considered to be controlled by Craig Bruce who owns 90% of the share capital of Pert Bruce Holdings Limited.