The directors present the strategic report for the year ended 31 December 2025.

In 2025 higher volumes of imported materials from our competitors into major markets combined with, a downturn in the UK construction industry, slowed rate growth and, in some cases, reversed earlier progress. The conclusion of a supply contract for sand and aggregates used for manufacture of tunnel segments further contributed to decreased volumes.

Ongoing high inflation, legal expenses associated with the conveyor system in Sheerness, and damage to the jetty at Northfleet affected the overall result. Management maintained a consistent focus throughout the year on stock control, cost management, cost recovery, and prioritising employee safety and mental health. These matters were addressed through regular communication with employees, suppliers and customers. During the closing period, departmental heads reached out to principal suppliers, particularly those providing consumables and haulage services. A review of payment performance was undertaken, confirming that invoices were settled within the agreed terms.

Considering the issues, the directors are satisfied with the overall result for the year. Turnover based on like-for-like on sales through the terminals has remained in line with 2024 despite a fall in volume sold. Going forward, we are seeing shifts in the market that will further increase the requirement for aggregates through all our terminals and regions. Rock Armour sales continue to be on a project-by-project basis.

The Board of Directors reviewed policies on Modern Day Slavery, Equality (gender pay, ethnicity and LGBTQ+) and compliance with the Bribery Act, the Board could not find, based on the available information, any issue through the organisation or our suppliers. Focus on the environment remains an issue through the group with ongoing initiatives such as modernising the fleet with new build vessels (improving fuel efficiency per ton transported), quarry optimisation, allowing for EV company cars and charge points at all terminals and the office.

Throughout the year the Board of Directors continued to review working hours and contract terms with a focus on employee welfare and working conditions. Employee mental health will remain a focus for management and discussion with all staff is ongoing. The company's policy is to provide help and assistance where possible under such circumstances. Staff turnover remained low, with no major changes in any management positions.

Our ERP/CRM system has seen ongoing development through 2025. This will be an ongoing process with regular meetings with department heads and key users.

Overall, the Directors are satisfied that the company acts fairly, ethically and is open in its discussions with all its stakeholders.

Staff turnover remained low, with no major changes in any management positions.

Market demand risk

The demand for products supplied by the company is closely linked with economic conditions. As a result, depressed economic conditions in the UK can have an adverse effect on demand for and pricing of the company's products which could result in reduced sales and profits.

Global pandemic risk

A global pandemic can create uncertainty in the economy which can have an adverse effect on the supply of sand and aggregates. Government policy to safeguard the public health and macro-economic factors, due to the cost of the pandemic to the public purse, may also affect sales in both the short and long term.

War in Ukraine and global political uncertainty

The directors recognise the tragedy this has been for the Ukrainian people. The impact on the business has been threefold; significant inflationary pressures driving cost of consumables, energy, and wages. This remains a key management focus area.

Seasonality risk

Extended periods of inclement weather, especially periods of heavy or sustained rainfall, during peak construction periods can result in a reduction in demand for the company's products.

Credit risk

Credit risk is the potential exposure of the company to loss in the event of non-payment by the counter party. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the opening of customer credit accounts, together with the daily monitoring of amounts outstanding for both age of debt and credit limits.

Disruption in the supply chain

The directors have discussed the aspect of key performance issues through the supply chain and are satisfied that there are robust contingency plans in place in the event of breakdown of key equipment.

The company's (loss)/ profit on ordinary activities after taxation was £(519,608) (2024: £422,727). Turnover for the year was £75,972,483 against £79,844,810 in the previous year. The company's net current liabilities were £496,544 (2024: £910,616) and the shareholders funds were £6,182,037 (2024: £6,701,645) at the balance sheet date. A dividend of £nil (2024: £5,000,000) was paid in the year.

The directors use of Key Performance Indicators relates to cost control ratios against set parameters and quality of earnings for various customers and projects.

2025            2024

Sales volumes of aggregates and sand

at fixed terminals                    3,392,822 tonnes     3,624,376 tonnes

Earnings before interest, tax, depreciation and

amortisation                    £ 489,424     £2,076,810

Earnings before interest and tax            £(519,608)     £1,148,982

Net assets                    £6,182,037     £6,701,645

The Directors have and continue to act in good faith to ensure the business’ success for the benefit of its stakeholders

Stakeholders include:

•    Employees

The company has robust policies in place to safeguard diversity and is committed to equal opportunities for all and providing a workplace free from harassment and discrimination. The Company will select, recruit, employ and promote staff based on the abilities of the individual regardless of sex, age, race, disability, ethnic origin or religion.

•    Suppliers

The Company relies on its suppliers to provide quality goods and services in order to maintain the highest standards in meeting the needs of our customers. The Company is committed to having professional and ethical relationships with its suppliers and the Company clearly articulates through written policies, its stance on; anti-corruption, anti-bribery, and modern slavery with all its suppliers ensuring the highest standards of ethics are met.

The Company has a fair process with respect to tendering of contracts and engaging with new suppliers.

•    Customers

The Company has procedures in place for handling imported goods so that quality is maintained through the value chain. The Company works to maintain a professional and ethical relationship with all its customers and is again clear on its stance on anti-corruption, anti-bribery and modern slavery. There is regular communication between the Company and its customers through both formal and informal channels.

•    The local community and environment

The Company has to operate safely and effectively within the local community.

The Directors of Mibau Stema UK Ltd understand the need to act fairly and to consider the impact of any decision-making, long or short term, on these groups. The Company has corporate social responsibility, sustainability and environmental care firmly embedded in the company's culture and corporate strategy. The Company strives to pursue the Group's mission to be the most sustainable premium provider of aggregates. Sustainability runs through all aspects of our business, such as using the latest generation of vessels, energy saving, recycling and resource management. The company undertakes many local initiatives in these areas and the Directors recognise the relevance of leading the company in such a way that it contributes to wider society.

•    Members of the company

The company has just one class of share in issue so all shareholders benefit from the same rights. The Board does not take any decisions or actions, such as selectively disclosing confidential or inside information, that would provide any shareholder with any unfair advantage or position compared to the shareholders as a whole.

The Company's culture is characterised by clear responsibility, mutual respect and trust. Lawful conduct and fair competition are integral to its business activities and an important condition for maintaining a reputation for high standards of business conduct and securing long term success. The company is focused on people, with both customers and employees being at the heart of its business. The company embraces diversity, flexibility, sustainability and continuous improvement throughout the organisation. The Company has a customer centric philosophy with transparent, fair and simple processes. The Board and senior management have taken active steps to drive cultural change and to ensure corporate strategy and customer orientation principles and values are embraced across the organisation.

By order of the board

The directors present their annual report and financial statements for the year ended 31 December 2025.

The principal activity of the company continued to be that of importers and suppliers of rock armour, sand and aggregates.

The results for the year are set out on page 11.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

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

Appropriate directors' liability insurance cover is in place to indemnify the directors.

The company does not have any acquisition targets and will continue organic growth and expansion through development of new port projects as and where the opportunity arises.

Information relating to financial instruments has been included in the strategic report.

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee.

We have increased video conferencing technology for staff meetings to reduce the need for travel and where motor vehicles are replaced this has been with electric cars.

The directors are responsible for preparing the annual report 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

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

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

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 company’s auditor 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 company’s auditor is aware of that information.

We have audited the financial statements of Mibau Stema UK Ltd (the 'company') for the year ended 31 December 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its loss 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 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 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

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, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of 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 directors' responsibilities statement, 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 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 directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Discussions were held with the managing director with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. The outcomes of these discussions and enquiries were shared with the engagement team. During the engagement briefing it was considered where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

• The laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company law, Tax and Pensions legislation and distributable profits legislation.

• Those laws and regulations considered to have a direct effect on the day to day operations of the company include employment law and health and safety regulations.

• It is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the year end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. There is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with the ISAs (UK).

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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Mibau Stema UK Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Alexandra House, Waterfront, Lakeside, Grays, Essex, RM20 1WL.

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 have been prepared under the historical cost convention, modified to include the deemed cost of freehold land. The principal accounting policies adopted are set out below.

This 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:

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

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

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

The financial statements of the company are consolidated in the financial statements of Heidelberg Materials AG. These consolidated financial statements are available from Berliner Strasse 6, D 69120 Heidelberg, Germany.

The company has taken advantage of the exemption under section 405 (2) of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the inclusion is non material for the purpose of giving true and fair view. The financial statements present information about the company as an individual entity and not about its group.

On the basis of continued financial support from the its parent undertaking via access to the group cash pool, the directors consider that the company will continue in operational existence for the foreseeable future. On this basis, the directors consider it appropriate to prepare the financial statements on a going concern basis. true

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

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.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or deemed cost, 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 credited or charged to profit or loss.

The company took advantage of the transitional provision in FRS 102 to show freehold land at deemed cost rather than historic cost.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. 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 company reviews the carrying amounts of its tangible 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.

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.

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.

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, 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.

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.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, 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 company 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.

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies , 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.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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 company’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.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company 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.

Contributions are made for the majority of employees to the workplace pension scheme established under the automatic enrolment legislation. All eligible staff are entitled to join the pension scheme. Contributions payable are charged to profit or loss in the year they are payable.

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 leases asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Trade debtors are regularly considered for indicators of impairment, which require the company to make best estimates for these losses. Such estimates involve considering; the historical experience of bad debts; the effects of present economic conditions; and the financial health of customers.

The depreciation, in respect of tangible fixed assets, is based upon estimates of the useful economic lives of the assets involved. Useful economic life is assessed initially upon acquisition of the asset and reviewed annually taking into account any revisions of future use of those assets. The judgements involved are informed by historical experience in relation to similar assets.

An analysis of the company's turnover is as follows:

Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to £6,784 (2024 - £333).

The average monthly number of persons (including directors) employed by the 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 2 (2024 - 2).

There is no key management compensation outside of directors remuneration.

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

Freehold land is carried at deemed cost. If freehold land were measured using the cost model, the carrying amounts would have been approximately £4,322,225 (2024 - £4,322,225), being cost £4,322,225 (2024 - £4,322,225) and depreciation £Nil (2024 - £Nil).

The difference between the value of freehold land at deemed cost and historical cost is £1,232,871.

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

The provision for the repairs and legal fees relates to the conveyor / stacker at the Port of Sheerness and represents the directors best estimate of the cost to be incurred by the company in completing the repair works and the associated legal case. The repairs are expected to be completed in the year.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The conveyor / stacker at the Port of Sheerness is subject of a legal claim involving the supplier. It is not possible to quantify the expected claim resulting from the legal proceedings.

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

During the year interest of £79,362 (2024: £214,508) was payable to Heidelberg Materials AG, the ultimate parent undertaking. At the balance sheet date the amount due from / (to) Heidelberg Materials AG was £470,669 (2024: £(3,970,485)).

During the year transactions and balances with other ultimate subsidiary undertakings of Heidelberg Materials AG, were as follows:

2025             2024

£             £

Amounts due to fellow group undertakings         187,896             178,252

Amounts due from fellow group undertakings         528,592            630,334

Sales to fellow group undertakings             4,956,903     6,503,365

Purchases from fellow group undertakings         722,770             1,298,798

The ultimate parent undertaking was Heidelberg Materials AG, a company incorporated in Germany, and the immediate parent undertaking was Mibau Stema Danmark A/S, a company incorporated in Denmark. The smallest group in which the results of the company are consolidated is that headed by Mibau Stema Group GmbH. Copies of the consolidated financial statements of Mibau Holding GmbH can be obtained from Gewerbestrasse 3, 21781 Cadenbege, Germany. The largest group in which the results of the company are consolidated is that headed by Heidelberg Materials AG, copies of the consolidated financial statements are available from Berliner Strasse 6, D 69120 Heidelberg, Germany.