Caseware UK (AP4) 2024.0.164 2024.0.164 2025-12-31 2025-12-31 true true true true true Construction of commercial buildings 70 72 2025-01-01 false false false 02741458 2025-01-01 2025-12-31 02741458 2024-01-01 2024-12-31 02741458 2025-12-31 02741458 2024-12-31 02741458 2024-01-01 02741458 1 2025-01-01 2025-12-31 02741458 1 2024-01-01 2024-12-31 02741458 d:Director1 2025-01-01 2025-12-31 02741458 d:Director2 2025-01-01 2025-12-31 02741458 d:Director3 2025-01-01 2025-12-31 02741458 d:RegisteredOffice 2025-01-01 2025-12-31 02741458 e:PlantMachinery 2025-01-01 2025-12-31 02741458 e:PlantMachinery 2025-12-31 02741458 e:PlantMachinery 2024-12-31 02741458 e:PlantMachinery e:OwnedOrFreeholdAssets 2025-01-01 2025-12-31 02741458 e:MotorVehicles 2025-01-01 2025-12-31 02741458 e:OfficeEquipment 2025-01-01 2025-12-31 02741458 e:OfficeEquipment 2025-12-31 02741458 e:OfficeEquipment 2024-12-31 02741458 e:OfficeEquipment e:OwnedOrFreeholdAssets 2025-01-01 2025-12-31 02741458 e:ComputerEquipment 2025-01-01 2025-12-31 02741458 e:OwnedOrFreeholdAssets 2025-01-01 2025-12-31 02741458 e:CurrentFinancialInstruments 2025-12-31 02741458 e:CurrentFinancialInstruments 2024-12-31 02741458 e:Non-currentFinancialInstruments 2025-12-31 02741458 e:Non-currentFinancialInstruments 2024-12-31 02741458 e:CurrentFinancialInstruments e:WithinOneYear 2025-12-31 02741458 e:CurrentFinancialInstruments e:WithinOneYear 2024-12-31 02741458 e:Non-currentFinancialInstruments e:AfterOneYear 2025-12-31 02741458 e:Non-currentFinancialInstruments e:AfterOneYear 2024-12-31 02741458 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2025-12-31 02741458 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2024-12-31 02741458 e:UKTax 2025-01-01 2025-12-31 02741458 e:UKTax 2024-01-01 2024-12-31 02741458 e:ShareCapital 2025-12-31 02741458 e:ShareCapital 2024-12-31 02741458 e:ShareCapital 2024-01-01 02741458 e:RetainedEarningsAccumulatedLosses 2025-01-01 2025-12-31 02741458 e:RetainedEarningsAccumulatedLosses 2025-12-31 02741458 e:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 02741458 e:RetainedEarningsAccumulatedLosses 2024-12-31 02741458 e:RetainedEarningsAccumulatedLosses 2024-01-01 02741458 e:AcceleratedTaxDepreciationDeferredTax 2025-12-31 02741458 e:AcceleratedTaxDepreciationDeferredTax 2024-12-31 02741458 e:TaxLossesCarry-forwardsDeferredTax 2025-12-31 02741458 e:TaxLossesCarry-forwardsDeferredTax 2024-12-31 02741458 d:OrdinaryShareClass2 2025-01-01 2025-12-31 02741458 d:OrdinaryShareClass2 2025-12-31 02741458 d:OrdinaryShareClass2 2024-12-31 02741458 d:OrdinaryShareClass3 2025-01-01 2025-12-31 02741458 d:OrdinaryShareClass3 2025-12-31 02741458 d:OrdinaryShareClass3 2024-12-31 02741458 d:OrdinaryShareClass4 2025-01-01 2025-12-31 02741458 d:OrdinaryShareClass4 2025-12-31 02741458 d:OrdinaryShareClass4 2024-12-31 02741458 d:FRS102 2025-01-01 2025-12-31 02741458 d:Audited 2025-01-01 2025-12-31 02741458 d:FullAccounts 2025-01-01 2025-12-31 02741458 d:PrivateLimitedCompanyLtd 2025-01-01 2025-12-31 02741458 2 2025-01-01 2025-12-31 02741458 f:PoundSterling 2025-01-01 2025-12-31 xbrli:shares iso4217:GBP xbrli:pure

Company Registration Number: 02741458 HACS CONSTRUCTION LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
HACS CONSTRUCTION LIMITED COMPANY INFORMATION
Directors | M R Smith
| E J Ashworth
| A J H Du Boulay
Registered number | 02741458
Registered office | Nidderdale House
| Station Yard
| Ripley
| Harrogate
| North Yorkshire
| HG3 3BA
Independent auditors | Armstrong Watson Audit Limited
| Chartered Accountants & Statutory Auditors
| Third Floor
| 10 South Parade
| Leeds
| LS1 5QS
HACS CONSTRUCTION LIMITED CONTENTS
| Page
Strategic Report | 1 - 2
Directors' Report | 3 - 4
Independent Auditors' Report | 5 - 8
Statement of Comprehensive Income | 9
Statement of Financial Position | 10
Statement of Changes in Equity | 11
Notes to the Financial Statements | 12 - 24
HACS CONSTRUCTION LIMITED STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2025
Introduction
The directors have pleasure in presenting their report and the financial statements of the company for the year ended 31 December 2025.
Business review
The principal activity of the company for the year under review was that of building and civil engineering contractors. The company trades from their registered office at Nidderdale House, Station Yard, Ripley, Harrogate, North Yorkshire, HG3 3BA. The directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and company's position at the year end. The review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties faced.
Principal risks and uncertainties
The business environment in which the company operates continues to be challenging. The principal risks continue to be the general economic climate, staff, third party suppliers and health and safety. With these risks and uncertainties in mind, the directors are aware that any plans for future development of the business may be subject to unforeseen future events outside our control.
Financial risks
The company's operations expose it to a variety of financial risks that include the effect of changes in credit, liquidity and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company. The company does not use derivative financial instruments to manage interest rate costs.
Credit risk
The company has implemented policies that require appropriate credit checks on customers before contracts are entered into. Liquidity The directors believe that the company has sufficient funds available to support its activities in the future. Page 1
HACS CONSTRUCTION LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025
Financial key performance indicators
The directors consider the key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, being turnover, gross profit and profitability before taxation.
| 2025 | 2024
| £ | £
Turnover | 22,482,241 | 22,982,983
Gross profit | 3,197,786 | 2,452,591
Profit before tax | 1,015,285 | 301,621
Shareholders' funds | 593,431 | 571,005
This report was approved by the board and signed on its behalf.
................................................ M R Smith Director
Date: 20 July 2026
Page 2
HACS CONSTRUCTION LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 The directors present their report and the financial statements for the year ended 31 December 2025.
Directors' responsibilities statement
The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then 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; ∙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 to 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.
Results and dividends
The profit for the year, after taxation, amounted to £779,526 (2024 - £222,787). Dividends totalling £757,100 (2024: £645,017) have been declared and paid during the year.
Directors
The directors who served during the year were:
M R Smith
E J Ashworth
A J H Du Boulay
Future developments
The directors are not expecting to make any significant changes in the nature of the business in the near future.
Matters not covered in the Strategic Report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's Strategic Report information required by Large and Medium sized Companies and Group (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the Directors' Report. It has done so in respect of future developments. Page 3
HACS CONSTRUCTION LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025
Disclosure of information to auditors
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Auditors
Under section 487(2) of the Companies Act 2006, Armstrong Watson Audit Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier. This report was approved by the board and signed on its behalf.
................................................ M R Smith Director
Date: 20 July 2026
Page 4
HACS CONSTRUCTION LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HACS CONSTRUCTION LIMITED
Opinion
We have audited the financial statements of HACS Construction Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, 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 Company's affairs as at 31 December 2025 and of its 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 Auditors' 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. Page 5
HACS CONSTRUCTION LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HACS CONSTRUCTION LIMITED (CONTINUED)
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit: ∙the information given in the 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.
Matters on which we are required to report by exception
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 or the Directors' Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept, 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.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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. Page 6
HACS CONSTRUCTION LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HACS CONSTRUCTION LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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: ∙We obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation and occupational health and employment legislation. ∙We enquired of the directors, reviewed correspondence with HMRC and reviewed directors meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the directors have in place to ensure compliance. ∙We gained an understanding of the controls that the directors have in place to prevent and detect fraud. We enquired of the directors about any incidences of fraud that had taken place during the accounting period. ∙The risk of fraud and non-compliance with laws and regulations was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: revenue recognition and management override of controls. ∙We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above. ∙We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud. ∙In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report. Page 7
HACS CONSTRUCTION LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HACS CONSTRUCTION LIMITED (CONTINUED)
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 Auditors' 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. Matthew Osbourne (Senior Statutory Auditor) for and on behalf of Armstrong Watson Audit Limited Chartered Accountants & Statutory Auditors Leeds 20 July 2026 Page 8
HACS CONSTRUCTION LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2025
| 2025 | 2024
Note | £ | £
Turnover | 4 | 22,482,241 | 22,982,983
Cost of sales |  | (19,284,455) | (20,530,392)
Gross profit |  | 3,197,786 | 2,452,591
Administrative expenses |  | (2,546,059) | (2,641,214)
Other operating income | 5 | 353,480 | 496,477
Operating profit | 6 | 1,005,207 | 307,854
Interest receivable and similar income | 10 | 21,630 | 14,627
Interest payable and similar expenses | 11 | (11,552) | (20,860)
Profit before tax |  | 1,015,285 | 301,621
Tax on profit | 12 | (235,759) | (78,834)
Profit for the financial year |  | 779,526 | 222,787
There was no other comprehensive income for 2025 (2024:£NIL).
The notes on pages 12 to 24 form part of these financial statements.
Page 9
HACS CONSTRUCTION LIMITED REGISTERED NUMBER: 02741458 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2025
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 14 |  | 90,897 |  | 85,396
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 15 | 5,078,700 |  | 6,102,271 |
Cash at bank and in hand | 16 | 3,597,473 |  | 2,725,209 |
|  | 8,676,173 |  | 8,827,480 |
Creditors: amounts falling due within one year | 17 | (8,173,639) |  | (8,241,871) |
Net current assets |  |  | 502,534 |  | 585,609
Total assets less current liabilities |  |  | 593,431 |  | 671,005
Creditors: amounts falling due after more than one year | 18 |  | - |  | (100,000)
Net assets |  |  | 593,431 |  | 571,005
Capital and reserves |  |  |  |  |
Called up share capital | 21 |  | 40,000 |  | 40,000
Profit and loss account | 22 |  | 553,431 |  | 531,005
|  |  | 593,431 |  | 571,005
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
................................................ M R Smith
Director
Date: 20 July 2026
The notes on pages 12 to 24 form part of these financial statements. Page 10
HACS CONSTRUCTION LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2025
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 January 2024 | 40,000 | 953,235 | 993,235
Comprehensive income for the year |  |  |
Profit for the year | - | 222,787 | 222,787
Dividends: Equity capital | - | (645,017) | (645,017)
At 1 January 2025 | 40,000 | 531,005 | 571,005
Comprehensive income for the year |  |  |
Profit for the year | - | 779,526 | 779,526
Dividends: Equity capital | - | (757,100) | (757,100)
At 31 December 2025 | 40,000 | 553,431 | 593,431
| The notes on pages 12 to 24 form part of these financial statements.
Page 11
HACS CONSTRUCTION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
1. | General information
The company is a private company limited by shares, incorporated and domiciled in the United Kingdom. The company is tax resident in the United Kingdom. It trades from its registered office address at Nidderdale House, Station Yard, Ripley, Harrogate, North Yorkshire, HG3 3BA. The principal activity of the company is that of building and civil engineering contractors. These financial statements have been presented in Pound Sterling as this is the currency of the primary economic environment in which the company operates. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3). The following principal accounting policies have been applied:
| 2.2 | Financial Reporting Standard 102 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": ∙the requirements of Section 7 Statement of Cash Flows; ∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); ∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); ∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A; ∙the requirements of Section 33 Related Party Disclosures paragraph 33.7. This information is included in the consolidated financial statements of HACS Holdings Limited as at 31 December 2025 and these financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ, United Kingdom.
| 2.3 | Going concern
The directors continue to adopt the going concern basis in preparing the financial statements. The directors believe that the company has adequate resources to meet its liabilities as they fall due. In reaching their conclusion, the directors have considered their cash flow for a period of 12 months from the date of signing the financial statements. The company has traded profitably during the current financial year and subsequent to the year end. Page 12
HACS CONSTRUCTION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.4 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: ∙the amount of revenue can be measured reliably; ∙it is probable that the Company will receive the consideration due under the contract; ∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and ∙the costs incurred and the costs to complete the contract can be measured reliably.
| 2.5 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Plant and machinery | - | 15% | straight line
|  |  |  | Computer equipment | - | 33% | straight line
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
| 2.6 | Operating leases: the Company as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
| 2.7 | Government grants
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure. Page 13
HACS CONSTRUCTION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.8 | Interest income
Interest income is recognised in profit or loss using the effective interest method.
| 2.9 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.10 | Borrowing costs
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
| 2.11 | Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
| 2.12 | Long-term contracts
Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of a total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen. The directors present amounts relating to long-term contracts in trade debtors and trade creditors within the financial statements as they believe this represents a true and fair reflection of the substance of the transactions.
| 2.13 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
| 2.14 | Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
| 2.15 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss. Page 14
HACS CONSTRUCTION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.16 | Financial instruments
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
| 2.17 | Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
| 2.18 | Pensions
Defined contribution pension plan The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
| 2.19 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income 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 Company operates and generates income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date. Page 15
HACS CONSTRUCTION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
The preparation of these financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Judgements and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The company makes estimates and assumptions concerning the future. The resulting accounting estimates will be, by definition, seldom equal to the related actual results. Management estimate the stage of completion of long term contracts by comparing actual costs incurred to forecasts, relying on their past experience and expertise to ensure those estimates are accurate. The useful lives and residual values of assets are reviewed on an ongoing basis by the directors. Provisions for trade debtors are reviewed by the directors on an ongoing basis who use their specific industry knowledge and experience to ensure the correct judgements.
4. | Turnover
The whole of the turnover is attributable to the principal activity of the company.
| All turnover arose within the United Kingdom.
5. | Other operating income
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Management charges receivable | 348,000 | 473,000
| Government grants receivable | 5,480 | 23,477
|  | 353,480 | 496,477
6. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Depreciation on tangible fixed assets | 16,288 | 4,895
| Cost of defined contribution pension scheme | 84,824 | 70,584
| Other operating lease rentals | 100,000 | 100,000
Page 16
HACS CONSTRUCTION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
7. | Auditors' remuneration
| During the year, the Company obtained the following services from the Company's auditors:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Fees payable to the company's auditor and its associates for the audit of the company's annual financial statements | 14,500 | 11,750
| The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.
8. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Wages and salaries | 2,340,642 | 1,936,835
| Social security costs | 355,606 | 299,777
| Cost of defined contribution scheme | 84,824 | 70,584
|  | 2,781,072 | 2,307,196
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2025 | 2024
|  |  | No. | No.
|  | Employees | 72 | 70
9. | Directors' remuneration
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Directors' emoluments | 164,136 | 158,319
| Company contributions to defined contribution pension schemes | 22,573 | 13,748
|  | 186,709 | 172,067
| During the year retirement benefits were accruing to no directors (2024 - NIL) in respect of defined contribution pension schemes.
Page 17
HACS CONSTRUCTION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
10. | Interest receivable
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Other interest receivable | 21,630 | 14,627
11. | Interest payable and similar expenses
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank interest payable | 11,552 | 20,860
12. | Taxation
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 247,832 | 129,680
| Adjustments in respect of previous periods | (31,958) | -
| Total current tax | 215,874 | 129,680
| Deferred tax |  |
| Origination and reversal of timing differences | 20,107 | (50,846)
| Adjustments in respect of prior periods | (222) | -
| Total deferred tax | 19,885 | (50,846)
| Tax on profit | 235,759 | 78,834
Page 18
HACS CONSTRUCTION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 12.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is lower than (2024 - higher than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 1,015,285 | 301,621
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | 253,821 | 75,407
| Effects of: |  |
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 22,532 | 54,727
| Adjustments to tax charge in respect of previous periods - deferred tax | (222) | (51,425)
| Adjustments to tax charge in respect of prior periods | (31,958) | -
| Adjustments to brought forward values | - | 125
| Group relief | (8,414) | -
| Total tax charge for the year | 235,759 | 78,834
| Factors that may affect future tax charges
There were no factors that may affect future tax charges.
13. | Dividends
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Dividends paid | 757,100 | 645,017
Page 19
HACS CONSTRUCTION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
14. | Tangible fixed assets
|  | Plant and machinery | Computer equipment | Total
|  | £ | £ | £
| Cost |  |  |
| At 1 January 2025 (as restated) | 102,799 | - | 102,799
| Additions | 7,429 | 14,360 | 21,789
| At 31 December 2025 | 110,228 | 14,360 | 124,588
| Depreciation |  |  |
| At 1 January 2025 (as restated) | 17,403 | - | 17,403
| Charge for the year on owned assets | 14,547 | 1,741 | 16,288
| At 31 December 2025 | 31,950 | 1,741 | 33,691
| Net book value |  |  |
| At 31 December 2025 | 78,278 | 12,619 | 90,897
| At 31 December 2024 | 85,396 | - | 85,396
Page 20
HACS CONSTRUCTION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
15. | Debtors
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade debtors | 3,527,841 | 4,028,325
| Amounts owed by associated undertakings | 880,067 | 1,868,802
| Other debtors | 511,546 | 52,470
| Prepayments and accrued income | 128,285 | 101,606
| Deferred taxation | 30,961 | 51,068
|  | 5,078,700 | 6,102,271
| During the year, the company forgave an intercompany loan of £500,000 due from a fellow group undertaking. The loan forgiveness was accounted for as a distribution to the company's parent undertaking and the related receivable was derecognised.
16. | Cash and cash equivalents
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Cash at bank and in hand | 3,597,473 | 2,725,209
17. | Creditors: Amounts falling due within one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank loans | 100,000 | 100,000
| Trade creditors | 5,132,260 | 4,986,936
| Corporation tax | 247,318 | 129,388
| Other taxation and social security | 322,064 | 511,754
| Other creditors | 32,107 | 85,702
| Accruals and deferred income | 2,339,890 | 2,428,091
|  | 8,173,639 | 8,241,871
Page 21
HACS CONSTRUCTION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
18. | Creditors: Amounts falling due after more than one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank loans | - | 100,000
| The following liabilities were secured:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank loan | 100,000 | 200,000
| Details of security provided:
The above bank loan is secured by a debenture granted by the company and covered by a cross guarantee granted by HACS Holdings Limited which is secured by a first legal charge over the freehold property at Station Yard, Ripley, Harrogate, HG3 3BA and a debenture.
19. | Loans
| Analysis of the maturity of loans is given below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Amounts falling due within one year |  |
| Bank loans | 100,000 | 100,000
| Amounts falling due 1-2 years |  |
| Bank loans | - | 100,000
|  | 100,000 | 200,000
Page 22
HACS CONSTRUCTION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
20. | Deferred taxation
|  | 2025
|  | £
| At beginning of year | 51,068
| Charged to profit or loss | (20,107)
| At end of year | 30,961
| The deferred tax asset is made up as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Fixed asset timing differences | (22,053) | (20,679)
| Short term timing differences | 53,014 | 71,747
|  | 30,961 | 51,068
21. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 36,000 (2024 - 36,000) Ordinary A shares of £1.00 each | 36,000 | 36,000
|  | 2,000 (2024 - 2,000) Ordinary B shares of £1.00 each | 2,000 | 2,000
|  | 2,000 (2024 - 2,000) Ordinary C shares of £1.00 each | 2,000 | 2,000
|  |  | 40,000 | 40,000
| Each class of share carries the right to dividend distributions, and any other distribution (including on winding up). Each share carries one vote at general meetings of the company.
22. | Reserves
Profit and loss account This reserve represents the cumulative profits and losses, net of dividends paid, available for distribution to shareholders.
23. | Contingent liabilities
The company has a multilateral guarantee with fellow group companies HACS Plant Hire Limited and HACS Holdings Limited to secure any borrowings. At the year end the net outstanding borrowings with National Westminster Bank PLC for the group were £247,472 (2024: £200,000). Page 23
HACS CONSTRUCTION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
24. | Pension commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £84,824 (2024 - £70,584). Contributions totalling £13,875 (2024 - £22,201) were payable to the fund at the balance sheet date and are included in other creditors.
25. | Commitments under operating leases
| The Company had no commitments under non-cancellable operating leases at the reporting date.
26. | Related party transactions
| The company has an intercompany loan account with its parent company, HACS Holdings Limited and at 31 December 2025 it was owed £282,079 (2024: £427,582) by this company. The company also has an intercompany loan account with a subsidiary of the parent company, HACS Plant Hire Limited and at 31 December 2025 it was owed £597,988 (2024: £1,441,220) by this company. The company also has intercompany loan accounts with HACS Civil Engineering LLP and HACS Environmental LLP at 31 December 2025 and it is owed £71,326 (2024: owes £43,886) and was owed £362,996 (2024: £52,470) respectively. These LLP are designated members of HACS Holdings Limited. The company received management re-charge income of £98,000 (2024: £223,000) and expenses of £10,000 (2024: £10,000) from the connected companies listed above. The company also incurred equipment hire expenses of £47,610 (2024: £68,175) from HACS Environmental LLP, £887,626 (2024: £724,991) from HACS Civil Engineering LLP and £75,399 (2024: £114,831) from HACS Plant Hire Limited. Dividends paid to HACS Holdings Limited totalled £600,000 (2024 - £500,000). Dividends paid to the directors totalled £157,100 (2024 - £145,017).
27. | Controlling party
The company is a wholly owned subsidiary undertaking of HACS Holdings Limited. The consolidated financial statements of HACS Holdings Limited are available to the public and may be obtained from The Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ.
Page 24