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Registration number: 01901361

Keith Walton Construction Company Limited
Annual Report and Consolidated Financial Statements
for the Year Ended 31 December 2025

Keith Walton Construction Company Limited

Contents

Company Information | 1
Strategic Report | 2 to 3
Directors' Report | 4
Statement of Directors' Responsibilities | 5
Independent Auditor's Report | 6 to 8
Consolidated Profit and Loss Account | 9
Consolidated Statement of Comprehensive Income | 10
Consolidated Balance Sheet | 11
Balance Sheet | 12
Consolidated Statement of Changes in Equity | 13
Statement of Changes in Equity | 14
Consolidated Statement of Cash Flows | 15
Statement of Cash Flows | 16
Notes to the Financial Statements | 17 to 30

Keith Walton Construction Company Limited

Company Information

Directors | Mrs H E Atkin Watson Mr H J Clayton Mr W Kelly Mr K Walton Mr S J Watson

Company secretary | Mrs H E Atkin Watson

Registered office | Southfield House Southfield Street Nelson Lancashire BB9 9QF

Auditors | KM Chartered Accountants & Statutory Auditors1st Floor, Block C The Wharf Manchester Road Burnley Lancashire BB11 1JG

Keith Walton Construction Company Limited

Strategic Report for the Year Ended 31 December 2025

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

Principal activity

The principal activity of the group is that of a specialist brickwork and masonry contractor, working with large clients on commercial, retail and residential builds. The parent company provides management and administrative services and the hire of plant and other fixed assets to the group.

Fair review of the business

The financial year has delivered a trading profit before tax of £1,270,963 (2024: £1,179,427), representing an increase of 7.76% on the previous year. The Directors are pleased with the Company's performance, which reflects continued growth, strong commercial management, and the dedication of its employees. Early collaboration with clients and suppliers helped maintain cost certainty throughout the year, contributing to another successful trading period and leaving the business well positioned for continued success
We have maintained our relationships with our long-term clients and forged new relationships as a result of our performance and quality workmanship. We have also maintained our high standards in respect of Health & Safety, Quality, Environmental and Sustainability matters, as these remain key to our long-term success.

We recognise the importance of building the foundations for the next generation of bricklayers and construction professionals to ensure the longevity of our business, and as such we have continued to provide apprenticeships and promote the development and progression of our whole team, both on site and in the office.
We, like many others, have increased our efforts to support and drive environmental change in our bid to reduce our carbon footprint. This has been achieved by investing in more electric vehicles and working with suppliers and labour local to contracts to reduce travel.

Key performance indicators

The group's key financial and other performance indicators during the year were as follows:

Year ended |  | 31 December 2025 |  | 31 December 2024 |  | 31 December 2023
Turnover |  | £12,033,680 |  | £13,522,572 |  | £12,615,256
Gross profit |  | £3,289,444 |  | £3,219,878 |  | £3,649,824
Gross profit margin |  | 27.34% |  | 23.81% |  | 28.93%
Profit before tax |  | £1,270,963 |  | £1,179,427 |  | £1,808,041

The key performance indicators are monitored by the board of directors. In addition to the above, margins are monitored monthly to ensure the group is progressing as planned and in a timely manner. The group considers its key financial indicators to be those that communicate the financial strength of the group as a whole, namely turnover, gross profit, operating profit and profit before tax, as set out in the profit and loss account.
Non-financial key performance indicators are measured annually using customer feedback questionnaires. This is also a requirement of our ISO 9001:2005 accredited management system to evaluate clients' satisfaction with the finished product, our service, the overall programme and time taken, health and safety, communication, and the commercial aspects of the project.

Principal risks and uncertainties

The directors consider that the following are the principal risks and uncertainties that could materially and adversely affect the group. The directors actively manage these risks and ensure that appropriate actions are taken to mitigate these risks.

Keith Walton Construction Company Limited

Strategic Report for the Year Ended 31 December 2025

Labour retention - As in previous years, the grouphas identified the potential risk around both the acquisition and retention of bricklayers. To mitigate this, the group actively monitors market conditions and pay rates. In addition, the group provides apprenticeships for bricklayers and maintains good relationships with a number of colleges.
Competition - There have been a number of new bricklaying subcontractors in our area of operation. Although these companies do not carry the extensive accreditations held by our group, as required by the majority of our clients, they havein some instances been used as a price comparison at tender stage. This has been addressed by the directors through demonstrating the standards and accreditations held by the group.

Development and performance

Whilst the current and future economic climate remains uncertain, the group's secured and targeted workload remains largely within established sectors which remain reasonably active, including public sector schemes, education and healthcare. With our current workflow, we are expect turnover for the forthcoming year to increase. We are increasing opportunities for apprentices year on year to ensure the continuity of our workforce.

Approved and authorised by the Board on 29 June 2026 and signed on its behalf by:

......................................... Mr H J Clayton Director

Keith Walton Construction Company Limited

Directors' Report for the Year Ended 31 December 2025

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

Directors of the group

The directors who held office during the year were as follows:

Mrs H E Atkin Watson - company secretary and director (appointed 6 August 2025)

Mr H J Clayton

Mr W Kelly (appointed 6 August 2025)

Mr K Walton

Mr S J Watson (appointed 6 August 2025)

Results and dividends

The results for the year are set out in the financial statements on page 9.
Dividends totalling £900,000 (2024 - £1,100,000) were paid during the year.

Information included in the strategic report

The disclosures in respect of the business review, future developments and financial risk, objectives and policies are included in the strategic report.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved and authorised by the Board on 29 June 2026 and signed on its behalf by:

......................................... Mr H J Clayton Director

Keith Walton Construction Company Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 group and the company 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 apply them consistently;

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

• | state whether applicable UK 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 company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Keith Walton Construction Company Limited

Independent Auditor's Report to the Members of Keith Walton Construction Company Limited

Opinion

We have audited the financial statements of Keith Walton Construction Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 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 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 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 ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Keith Walton Construction Company Limited

Independent Auditor's Report to the Members of Keith Walton Construction Company Limited

We have nothing to report in this regard.

Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• | the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 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 5], 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.

Auditor 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 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. Based on our understanding of the company and the nature of the industry, we identified that the principal risks of non-compliance with laws and regulations related to UK tax legislation, employment regulations, health and safety regulations, anti-bribery, corruption and fraud, money laundering and we considered the extent to which non-compliance might have a material effect on the financial statements. We also identified financial reporting standards and the Companies Act 2006 as having a direct impact on the preparation of financial statements.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but are not limited to:

Keith Walton Construction Company Limited

Independent Auditor's Report to the Members of Keith Walton Construction Company Limited

• | Discussing with the directors and management their policies, procedures and related controls regarding compliance with laws and regulations and if there are any known instances with non-compliance;

• | Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit;

• | Considering the risk of acts by the group which were contrary to applicable laws and regulations, including fraud;

• | Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;

• | Gaining an understanding of the internal controls established to mitigate risks related to fraud;

• | Discussing amongst the engagement team the risks of fraud; and

• | Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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.

......................................
Mark Heaton FCCA (Senior Statutory Auditor)
For and on behalf of KM, Statutory Auditor
1st Floor, Block C
The Wharf
Manchester Road
Burnley
Lancashire
BB11 1JG

29 June 2026

Keith Walton Construction Company Limited

Consolidated Profit and Loss Account for the Year Ended 31 December 2025

| Note | 2025 £ | 2024 £
Turnover | 4 | 12,033,680 | 13,522,572
Cost of sales |  | (8,744,236) | (10,302,694)
Gross profit |  | 3,289,444 | 3,219,878
Administrative expenses |  | (2,074,784) | (2,078,029)
Operating profit | 6 | 1,214,660 | 1,141,849
Other interest receivable and similar income | 7 | 57,785 | 40,592
Interest payable and similar expenses | 8 | (1,482) | (3,014)
Profit before tax |  | 1,270,963 | 1,179,427
Tax on profit | 12 | (309,755) | (279,719)
Profit for the financial year |  | 961,208 | 899,708
Profit/(loss) attributable to: |  |  |
Owners of the company |  | 961,208 | 899,708

The group has no recognised gains or losses for the year other than the results above.

Keith Walton Construction Company Limited

Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2025

| 2025 £ | 2024 £
Profit for the year | 961,208 | 899,708
Surplus on property revaluation | - | 93,750
Total comprehensive income for the year | 961,208 | 993,458

Keith Walton Construction Company Limited

(Registration number: 01901361)
Consolidated Balance Sheet as at 31 December 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Tangible assets | 13 | 1,090,469 | 1,124,883
Current assets |  |  |
Debtors | 16 | 2,047,975 | 2,249,592
Investments | 17 | 605,220 | 567,207
Cash at bank and in hand |  | 1,854,000 | 1,483,143
|  | 4,507,195 | 4,299,942
Creditors: Amounts falling due within one year | 18 | (1,146,165) | (997,365)
Net current assets |  | 3,361,030 | 3,302,577
Total assets less current liabilities |  | 4,451,499 | 4,427,460
Creditors: Amounts falling due after more than one year | 18 | - | (18,466)
Provisions for liabilities | 19 | (145,447) | (164,150)
Net assets |  | 4,306,052 | 4,244,844
Capital and reserves |  |  |
Called up share capital | 21 | 25,129 | 25,129
Share premium reserve |  | 82,458 | 82,458
Capital redemption reserve |  | 5,707 | 5,707
Revaluation reserve |  | 93,750 | 93,750
Retained earnings |  | 4,099,008 | 4,037,800
Equity attributable to owners of the company |  | 4,306,052 | 4,244,844
Shareholders' funds |  | 4,306,052 | 4,244,844

Approved and authorised by the Board on 29 June 2026 and signed on its behalf by:

......................................... Mr H J Clayton Director

Keith Walton Construction Company Limited

(Registration number: 01901361)
Balance Sheet as at 31 December 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Tangible assets | 13 | 388,804 | 365,484
Investment property | 14 | 500,000 | 500,000
Investments | 15 | 169,900 | 169,900
|  | 1,058,704 | 1,035,384
Current assets |  |  |
Debtors | 16 | 1,270,877 | 1,573,600
Investments |  | 605,220 | 567,207
Cash at bank and in hand |  | 235,042 | 18,972
|  | 2,111,139 | 2,159,779
Creditors: Amounts falling due within one year | 18 | (125,033) | (129,824)
Net current assets |  | 1,986,106 | 2,029,955
Total assets less current liabilities |  | 3,044,810 | 3,065,339
Provisions for liabilities | 19 | (100,775) | (105,411)
Net assets |  | 2,944,035 | 2,959,928
Capital and reserves |  |  |
Called up share capital | 21 | 25,129 | 25,129
Share premium reserve |  | 82,458 | 82,458
Capital redemption reserve |  | 5,707 | 5,707
Retained earnings |  | 2,830,741 | 2,846,634
Shareholders' funds |  | 2,944,035 | 2,959,928

The company made a profit after tax for the financial year of £884,107 (2024 - profit of £936,423).

Approved and authorised by the Board on 29 June 2026 and signed on its behalf by:

......................................... Mr H J Clayton Director

Keith Walton Construction Company Limited

Consolidated Statement of Changes in Equity for the Year Ended 31 December 2025
Equity attributable to the parent company

| Share capital £ | Share premium £ | Capital redemption reserve £ | Revaluation reserve £ | Retained earnings £ | Total £
At 1 January 2025 | 25,129 | 82,458 | 5,707 | 93,750 | 4,037,800 | 4,244,844
Profit for the year | - | - | - | - | 961,208 | 961,208
Dividends | - | - | - | - | (900,000) | (900,000)
At 31 December 2025 | 25,129 | 82,458 | 5,707 | 93,750 | 4,099,008 | 4,306,052

| Share capital £ | Share premium £ | Capital redemption reserve £ | Revaluation reserve £ | Retained earnings £ | Total £
At 1 January 2024 | 25,129 | 82,458 | 5,707 | - | 4,238,092 | 4,351,386
Profit for the year | - | - | - | - | 899,708 | 899,708
Other comprehensive income | - | - | - | 93,750 | - | 93,750
Total comprehensive income | - | - | - | 93,750 | 899,708 | 993,458
Dividends | - | - | - | - | (1,100,000) | (1,100,000)
At 31 December 2024 | 25,129 | 82,458 | 5,707 | 93,750 | 4,037,800 | 4,244,844

Keith Walton Construction Company Limited

Statement of Changes in Equity for the Year Ended 31 December 2025

| Share capital £ | Share premium £ | Capital redemption reserve £ | Retained earnings £ | Total £
At 1 January 2025 | 25,129 | 82,458 | 5,707 | 2,846,634 | 2,959,928
Profit for the year | - | - | - | 884,107 | 884,107
Dividends | - | - | - | (900,000) | (900,000)
At 31 December 2025 | 25,129 | 82,458 | 5,707 | 2,830,741 | 2,944,035

| Share capital £ | Share premium £ | Capital redemption reserve £ | Retained earnings £ | Total £
At 1 January 2024 | 25,129 | 82,458 | 5,707 | 3,010,211 | 3,123,505
Profit for the year | - | - | - | 936,423 | 936,423
Dividends | - | - | - | (1,100,000) | (1,100,000)
At 31 December 2024 | 25,129 | 82,458 | 5,707 | 2,846,634 | 2,959,928

Keith Walton Construction Company Limited

Consolidated Statement of Cash Flows for the Year Ended 31 December 2025

| Note | 2025 £ | 2024 £
Cash flows from operating activities
Profit for the year |  | 961,208 | 899,708
Adjustments to cash flows from non-cash items |  |  |
Depreciation and amortisation | 6 | 228,346 | 248,392
Financial instrument net gains (losses) through profit and loss |  | (38,013) | (27,523)
Profit on disposal of tangible assets | 5 | (35,082) | (24,578)
Finance income | 7 | (57,785) | (40,592)
Finance costs | 8 | 1,482 | 3,014
Corporation tax expense | 12 | 309,755 | 279,719
|  | 1,369,911 | 1,338,140
Working capital adjustments |  |  |
Decrease in trade debtors | 16 | 201,617 | 851,755
Decrease in trade creditors | 18 | (66,965) | (93,992)
Cash generated from operations |  | 1,504,563 | 2,095,903
Corporation tax paid | 12 | (107,540) | (543,137)
Net cash flow from operating activities |  | 1,397,023 | 1,552,766
Cash flows from investing activities |  |  |
Interest received |  | 57,785 | 40,592
Acquisitions of tangible assets |  | (282,247) | (285,938)
Proceeds from sale of tangible assets |  | 123,397 | 50,276
Net cash flows from investing activities |  | (101,065) | (195,070)
Cash flows from financing activities |  |  |
Interest paid | 8 | (1,482) | (3,014)
Payments to finance lease creditors |  | (23,619) | (43,540)
Dividends paid |  | (900,000) | (1,100,000)
Net cash flows from financing activities |  | (925,101) | (1,146,554)
Net increase in cash and cash equivalents |  | 370,857 | 211,142
Cash and cash equivalents at 1 January |  | 1,483,143 | 1,272,001
Cash and cash equivalents at 31 December |  | 1,854,000 | 1,483,143

Keith Walton Construction Company Limited

Statement of Cash Flows for the Year Ended 31 December 2025

| Note | 2025 £ | 2024 £
Cash flows from operating activities
Profit for the year |  | 884,107 | 936,423
Adjustments to cash flows from non-cash items |  |  |
Depreciation and amortisation | 6 | 138,544 | 159,887
Financial instrument net gains (losses) through profit and loss |  | (38,013) | (27,523)
Changes in fair value of investment property | 14 | - | (125,000)
Profit on disposal of tangible assets | 5 | (35,082) | (24,578)
Finance income |  | (888,013) | (927,523)
Corporation tax expense | 12 | 1,101 | 19,000
|  | 62,644 | 10,686
Working capital adjustments |  |  |
Decrease in trade debtors | 16 | 302,723 | 287,148
(Decrease)/increase in trade creditors | 18 | (10,528) | 9,708
Cash generated from operations |  | 354,839 | 307,542
Corporation tax paid | 12 | - | (37,922)
Net cash flow from operating activities |  | 354,839 | 269,620
Cash flows from investing activities |  |  |
Interest received |  | 888,013 | 927,523
Acquisitions of tangible assets |  | (250,179) | (147,190)
Proceeds from sale of tangible assets |  | 123,397 | 50,276
Net cash flows from investing activities |  | 761,231 | 830,609
Cash flows from financing activities |  |  |
Dividends paid |  | (900,000) | (1,100,000)
Net increase in cash and cash equivalents |  | 216,070 | 229
Cash and cash equivalents at 1 January |  | 18,972 | 18,743
Cash and cash equivalents at 31 December |  | 235,042 | 18,972

Keith Walton Construction Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

1 | General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Southfield House
Southfield Street
Nelson
Lancashire
BB9 9QF

These financial statements were authorised for issue by the Board on 29 June 2026.

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
The financial statements are prepared in sterling, which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest £.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Basis of consolidation

The consolidated financial statements include the financial statements of the company and its subsidiary undertaking as at 31 December 2025.

Subsidiaries are entities controlled by the company. Control exists where the company has the power to govern an entity's financial and operating policies so as to obtain benefits from its activities.

Inter-company transactions, balances and unrealised gains between the company and its subsidiaries, which are related parties, are eliminated in full. Intra-group losses are also eliminated but may indicate an impairment requiring recognition in the consolidated financial statements.

The accounting policies of subsidiaries are adjusted, where necessary, to ensure consistency with those adopted by the group. The non-controlling interest represents the shareholder’s share of changes in equity.

Going concern

The financial statements have been prepared on a going concern basis.

Keith Walton Construction Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Turnover

Turnover represents the value of work performed for third parties in the ordinary course of the group's activities, stated net of value added tax and trade discounts.
Revenue is recognised over time as the group satisfies its performance obligations under contract, measured by the value of work performed. Amounts recoverable on long-term contracts are included within debtors at realisable value, reflecting the group's right to consideration for work completed.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Land and buildings | Not depreciated
Fixtures and fittings | 25% per annum reducing balance basis
Office equipment | 33% per annum reducing balance basis
Motor vehicles | 33% per annum reducing balance basis
Plant and machinery | 25% per annum reducing balance basis

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Keith Walton Construction Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Assets acquired under finance leases are capitalised and depreciated over the expected life of the asset. Lease payments are apportioned between the finance charges and the reduction of the outstanding lease liability on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Keith Walton Construction Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Dividends

Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3 | Judgements and key sources of estimation uncertainty

Judgements

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 periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation

Depreciation represents the allocation of the cost of fixed assets over their estimated useful economic lives. Judgements are made in determining these useful lives, which are reviewed regularly and adjusted where necessary to reflect current conditions.

Work in progress

Work in progress relating to ongoing contracts is a key accounting estimate. Detailed assessments are carried out by senior management for each contract on a quarterly basis, including at the financial year-end, to determine the value of work performed.

4 | Turnover

The analysis of the group's turnover for the year from continuing operations is as follows:

| 2025 £ | 2024 £
Brickwork and masonry contracts | 12,033,680 | 13,522,572

5 | Other gains and losses

The analysis of the group's other gains and losses for the year is as follows:

| 2025 £ | 2024 £
Gain on disposal of tangible fixed assets | 35,082 | 24,578

Keith Walton Construction Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

6 | Operating profit

Arrived at after charging/(crediting)

| 2025 £ | 2024 £
Depreciation expense | 228,346 | 248,392
Operating lease expense - plant and machinery | 110,108 | 145,148
Profit on disposal of motor vehicles | (35,082) | (24,578)

7 | Other interest receivable and similar income

| 2025 £ | 2024 £
Interest income on investments | 38,013 | 27,523
Interest income on bank deposits | 19,772 | 13,069
| 57,785 | 40,592

8 | Interest payable and similar expenses

| 2025 £ | 2024 £
Interest on bank overdrafts and borrowings | 4 | 11
Interest on obligations under hire purchase contracts | 1,478 | 3,003
| 1,482 | 3,014

9 | Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

| 2025 £ | 2024 £
Wages and salaries | 3,389,219 | 3,324,287
Social security costs | 392,563 | 348,597
Pension costs, defined contribution scheme | 139,061 | 143,493
Other employee expense | 5,280 | 4,951
| 3,926,123 | 3,821,328

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

| 2025 No. | 2024 No.
Management | 16 | 16
Production | 58 | 61
| 74 | 77

Keith Walton Construction Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

10 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 381,459 | 285,805
Contributions paid to money purchase schemes | 35,538 | 37,227
| 416,997 | 323,032

During the year the number of directors who were receiving benefits and share incentives was as follows:

| 2025 No. | 2024 No.
Accruing benefits under money purchase pension scheme | 4 | 4

In respect of the highest paid director:

| 2025 £ | 2024 £
Remuneration | 192,389 | 204,079
Company contributions to money purchase pension schemes | 27,700 | 27,700

11 | Auditors' remuneration

| 2025 £ | 2024 £
Audit of these financial statements | 12,000 | 12,000

Keith Walton Construction Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

12 | Taxation

Tax charged/(credited) in the consolidated profit and loss account

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax | 328,458 | 279,018
UK corporation tax adjustment to prior periods | - | (10,029)
| 328,458 | 268,989
Deferred taxation |  |
Arising from origination and reversal of timing differences | (18,703) | 10,730
Tax expense in the income statement | 309,755 | 279,719

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2024 - lower than the standard rate of corporation tax in the UK) of 25% (2024 - 25%).
The differences are reconciled below:

| 2025 £ | 2024 £
Profit before tax | 1,270,963 | 1,179,427
Corporation tax at standard rate | 317,741 | 294,857
Decrease in UK current tax from adjustment for prior periods | - | (10,029)
Effect of revenues exempt from taxation | (9,503) | (6,881)
Effect of expense not deductible in determining taxable profit | 2,961 | 1,772
Tax decrease from changes in tax provisions due to legislation | (1,444) | -
Total tax charge | 309,755 | 279,719

Keith Walton Construction Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Deferred tax

Group

2025 | Asset £ | Liability £
Difference between accumulated depreciation and capital allowances | - | 114,197
Deferred tax on property revaluation | - | 31,250
| - | 145,447

2024 | Asset £ | Liability £
Difference between accumulated depreciation and capital allowances | - | 132,900
Deferred tax on property revaluation | - | 31,250
| - | 164,150

Company

2025 | Asset £ | Liability £
Difference between accumulated depreciation and capital allowances | - | 69,525
Deferred tax on investment property revaluation | - | 31,250
| - | 100,775

2024 | Asset £ | Liability £
Difference between accumulated depreciation and capital allowances | - | 74,161
Deferred tax on investment property revaluation | - | 31,250
| - | 105,411

Keith Walton Construction Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

13 | Tangible assets

Group

| Land and buildings £ | Fixtures, fittings and equipment £ | Motor vehicles £ | Plant and machinery £ | Total £
Cost or valuation
At 1 January 2025 | 500,000 | 356,161 | 1,089,783 | 681,617 | 2,627,561
Additions | - | 20,874 | 250,179 | 11,194 | 282,247
Disposals | - | - | (213,824) | (23,971) | (237,795)
At 31 December 2025 | 500,000 | 377,035 | 1,126,138 | 668,840 | 2,672,013
Depreciation
At 1 January 2025 | - | 279,467 | 760,873 | 462,338 | 1,502,678
Charge for the year | - | 35,594 | 144,825 | 47,927 | 228,346
Eliminated on disposal | - | - | (129,457) | (20,023) | (149,480)
At 31 December 2025 | - | 315,061 | 776,241 | 490,242 | 1,581,544
Carrying amount
At 31 December 2025 | 500,000 | 61,974 | 349,897 | 178,598 | 1,090,469
At 31 December 2024 | 500,000 | 76,694 | 328,910 | 219,279 | 1,124,883

Included within the net book value of land and buildings above is £500,000 (2024 - £500,000) in respect of freehold land and buildings.

Keith Walton Construction Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Assets held under hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under hire purchase contracts:

| 2025 £ | 2024 £
Motor vehicles | 31,859 | 69,504

Company

| Fixtures, fittings and equipment £ | Motor vehicles £ | Plant and machinery £ | Total £
Cost
At 1 January 2025 | 245,901 | 619,584 | 288,369 | 1,153,854
Additions | - | 250,179 | - | 250,179
Disposals | - | (213,824) | (23,971) | (237,795)
At 31 December 2025 | 245,901 | 655,939 | 264,398 | 1,166,238
Depreciation
At 1 January 2025 | 217,709 | 371,502 | 199,159 | 788,370
Charge for the year | 9,146 | 105,991 | 23,407 | 138,544
Eliminated on disposal | - | (129,457) | (20,023) | (149,480)
At 31 December 2025 | 226,855 | 348,036 | 202,543 | 777,434
Carrying amount
At 31 December 2025 | 19,046 | 307,903 | 61,855 | 388,804
At 31 December 2024 | 28,192 | 248,082 | 89,210 | 365,484

14 | Investment properties

Group

The company's freehold land and buildings at Southfield Street, Nelson have been reclassified as an investment property in the parent company's financial statements under the requirements of FRS 102.

Company

| 2025 £
At 1 January | 500,000
At 31 December | 500,000

The fair value is based on a valuation carried out by an independent valuer dated 22 October 2024.

Keith Walton Construction Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

15 | Investments

Company

| 2025 £ | 2024 £
Investments in subsidiary | 169,900 | 169,900

Subsidiary | £
Cost
At 1 January 2025 | 169,900
Carrying amount
At 31 December 2025 | 169,900
At 31 December 2024 | 169,900

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking | Registered office | Holding | Proportion of voting rights and shares held
|  |  | 2025 | 2024
Subsidiary undertaking
Keith Walton Brickwork Limited | Southfield House, Southfield Street, Nelson, Lancashire, BB9 9QF | Ordinary shares | 100% | 100%

Subsidiary undertakings
Keith Walton Brickwork Limited The principal activity of Keith Walton Brickwork Limited is that of a specialist brickwork and masonry contractor, working with large clients on commercial, retail and residential builds. The profit for the financial period of Keith Walton Brickwork Limited was £927,101 and the aggregate amount of capital and reserves at the end of the period was £1,531,917.

Keith Walton Construction Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

16 | Debtors

| Group | Company
Current | 2025 £ | 2024 £ | 2025 £ | 2024 £
Trade debtors | 1,502,329 | 1,724,384 | - | -
Amounts owed by related parties | - | - | 1,270,284 | 1,571,234
Other debtors | 362,601 | 373,048 | 593 | 2,366
Prepayments | 183,045 | 152,160 | - | -
| 2,047,975 | 2,249,592 | 1,270,877 | 1,573,600

17 | Current asset investments

| Group | Company
| 2025 £ | 2024 £ | 2025 £ | 2024 £
Unlisted investments | 605,220 | 567,207 | 605,220 | 567,207

18 | Creditors

|  | Group | Company
| Note | 2025 £ | 2024 £ | 2025 £ | 2024 £
Due within one year |  |  |  |  |
Loans and borrowings | 22 | 18,466 | 23,619 | - | -
Trade creditors |  | 492,027 | 542,178 | - | -
Social security and other taxes |  | 172,731 | 165,102 | 101,710 | 101,379
Outstanding pension costs |  | 24,242 | 25,215 | 13,153 | 12,986
Other payables |  | 833 | 210 | 833 | 209
Accruals |  | 117,930 | 142,023 | 3,600 | 15,250
Corporation tax liability | 12 | 319,936 | 99,018 | 5,737 | -
|  | 1,146,165 | 997,365 | 125,033 | 129,824
Due after one year |  |  |  |  |
Loans and borrowings | 22 | - | 18,466 | - | -

Keith Walton Construction Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

19 | Provisions for liabilities

Group

| Deferred tax £ | Total £
At 1 January 2025 | 164,150 | 164,150
Decrease in existing provisions | (18,703) | (18,703)
At 31 December 2025 | 145,447 | 145,447

Company

| Deferred tax £ | Total £
At 1 January 2025 | 105,411 | 105,411
Decrease in existing provisions | (4,636) | (4,636)
At 31 December 2025 | 100,775 | 100,775

20 | Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £139,061 (2024 - £143,493).
Contributions totalling £24,242 (2024 - £25,215) were payable to the scheme at the end of the year and are included in creditors.

21 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary shares of £1 each | 12,539 | 12,539 | 12,539 | 12,539
Ordinary A shares of £1 each | 5,048 | 5,048 | 5,048 | 5,048
Ordinary B shares of £1 each | 7,542 | 7,542 | 7,542 | 7,542
| 25,129 | 25,129 | 25,129 | 25,129

Keith Walton Construction Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

22 | Loans and borrowings

Non-current loans and borrowings

| Group | Company
| 2025 £ | 2024 £ | 2025 £ | 2024 £
Hire purchase contracts | - | 18,466 | - | -

Current loans and borrowings

| Group | Company
| 2025 £ | 2024 £ | 2025 £ | 2024 £
Hire purchase contracts | 18,466 | 23,619 | - | -

23 | Obligations under leases and hire purchase contracts

Group

Hire purchase contracts

Obligations under hire purchase contracts are secured on the assets concerned.

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 18,823 | 25,098
Later than one year and not later than five years | - | 18,823
| 18,823 | 43,921

Operating leases

The amount of non-cancellable operating lease payments recognised as an expense during the year was £600 (2024 - £8,185).

24 | Dividends

|  | 2025 |  | 2024
|  | £ |  | £
Dividend of £35.82 (2024 - £43.77) per ordinary share |  | 900,000 |  | 1,100,000

25 | Parent and ultimate parent undertaking

The ultimate controlling party is Mr K Walton, a director of the group, by virtue of his beneficial interest in The Keith Walton (1999) Settlement.