REGISTERED NUMBER: 07889562 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 October 2025

for

Traffic Labour Supplies (Holdings)

Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

18

DIRECTORS:

Mr M Midson

Mr P Chamley

REGISTERED OFFICE:

Yorkshire House

Weeland Road

Hensall

Goole

East Riding

DN14 0QE

REGISTERED NUMBER:

07889562 (England and Wales)

AUDITORS:

KJA Kilner Johnson Ltd

Woodland House

Woodland Park

Bradford Road

Cleckheaton

BD19 6BW

The directors present their strategic report of the company and the group for the year ended 31 October 2025.

REVIEW OF BUSINESS

TLS continued to deliver strong operational and financial performance during the year ended 31 October 2025, building upon the progress achieved in the prior financial year.

The company operates as a managed support service provider to the traffic management and highways industry, supplying vehicles, operatives, and specialist equipment to support traffic management operations across the UK. A significant proportion of the company's activity is generated through long-standing framework agreements with leading traffic management providers operating within the Strategic Road Network.

During the year, turnover increased significantly from £20.2 million in 2024 to £26.4 million in 2025, representing growth of approximately 31%. This increase reflects continued demand for the company's services, expansion of existing customer relationships, and growth in operational capacity across multiple regions.

Gross profit for the year was achieved at 15.25% compared with 15.46% in the prior year. Whilst the gross margin reduced marginally, this was impacted by continued labour market pressures, rising operational costs, and the investment required to support rapid business growth and service delivery.

Net profit increased from £0.731 million in 2024 to £1.728 million in 2025, with net profit margins improving from 3.62% to 6.54%. This represents a strong financial performance and demonstrates the company's ability to grow profitably whilst continuing to invest in its people, fleet, systems, and operational infrastructure.

The directors remain satisfied with the overall performance of the business during the financial year and believe TLS remains well positioned within the traffic management support sector.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors continually assess the principal risks and uncertainties facing the business and implement strategies to mitigate their impact where possible.

One of the primary operational risks remains adverse weather conditions during the winter months. Severe weather can impact operational efficiency, project scheduling, and demand levels across parts of the highways sector. The business continues to manage this risk through careful operational planning, flexible deployment of resources, and maintaining strong customer communication.

The continued shortage of qualified traffic management operatives within the industry also remains a significant challenge. Competition for skilled labour across the sector has increased pressure on recruitment, retention, and wage costs. TLS continues to address this through ongoing investment in recruitment, training, and workforce development initiatives. The company actively supports the progression of new trainees into the industry whilst continuing to upskill and develop existing employees through structured training programmes.

The directors also recognise the importance of maintaining operational efficiency and adapting to changing customer requirements. Continued investment in technology, fleet infrastructure, and management systems is considered essential to maintaining service standards and competitiveness.

FINANCIAL KPIS

Turnover: £26.4m (2024: £20.2m)

Net Profit: £1.728m (2024: £0.731m)

Net Profit Margin: 6.54% (2024: 3.62%)

Gross Profit Margin: 15.25% (2024: 15.46%)

NON-FINANCIAL KPIS

TLS continues to focus on several non-financial performance indicators which are considered critical to the long-term success of the business.

Key areas of focus during the year included:

o Continued recruitment and training of new traffic management operatives.

o Ongoing workforce upskilling and competency development.

o Investment in modern fleet replacement and operational equipment.

o Strengthening customer relationships through framework agreements and service delivery.

o Expansion of the company's operational footprint within the South of England whilst maintaining a strong presence in the North.

o Continued investment in proprietary software systems, including the development of Compass, the company's bespoke internal management platform.

o Continued commitment to local community investment and environmental improvement initiatives.

The directors believe these areas remain fundamental to maintaining service quality, operational efficiency, and long-term sustainable growth.

FUTURE BUSINESS PLANS

The directors remain optimistic regarding the future prospects of the business.

During 2026, TLS intends to continue expanding its operations within the South of England whilst maintaining and strengthening its established presence in the North of England.

A key strategic objective for the coming financial year will be improving gross profit margins alongside continued revenue growth. The company is targeting an improvement in gross profit margin of approximately 1.5% through enhanced operational efficiencies, improved utilisation, pricing strategies, and continued investment in technology and workforce capability.

The company also intends to continue investing in its fleet replacement programme to ensure vehicles and operational equipment remain modern, reliable, and efficient.

Further strengthening of the management structure is planned during 2026 through the appointment of two additional directors together with internal promotions across the business. The directors believe these changes will enhance operational leadership, governance, and long-term succession planning.

TLS will also continue to invest in smart technologies and software development through its Compass platform to further improve operational efficiency, customer experience, reporting capability, and workforce management.

In addition, the company remains committed to supporting local communities and continuing its progression towards carbon neutrality through environmentally focused investment and operational improvements.

CONCLUSION

The directors consider the financial year ended 31 October 2025 to have been highly successful for TLS, with strong growth in turnover and profitability achieved despite ongoing industry-wide operational challenges.

The business remains financially strong, operationally resilient, and well positioned within the traffic management support sector. Continued investment in people, technology, fleet infrastructure, and management capability provides the directors with confidence in the future prospects of the company.

The directors believe TLS is well placed to continue delivering sustainable growth and long-term value for customers, employees, and stakeholders in the years ahead.

ON BEHALF OF THE BOARD:

Mr P Chamley - Director

24 June 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 October 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the provision of support services to the traffic management and construction industries.

DIVIDENDS

An interim dividend of £6000 per share was paid on 31 October 2025. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 October 2025 will be £ 600,000 .

DIRECTORS

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

Mr M Midson

Mr P Chamley

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, KJA Kilner Johnson, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr P Chamley - Director

24 June 2026

Opinion

We have audited the financial statements of Traffic Labour Supplies (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 of the parent company affairs as at 31 October 2025 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other matters

In line with ISA (UK) 710 Paragraph 14, we state the fact that the corresponding figures are unaudited. We have

performed audit procedures to obtain sufficient appropriate audit evidence that the opening balances do not contain

misstatements that materially affect the current period's financial statements

Other information

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

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

While planning our audit, we have enquired of management and those charged with governance around any actual or potential litigation and claims against the company for non-compliance with specific laws and regulations. The same has been done in respect of any instances of fraud or irregularities. The responses received have been communicated with the engagement team at the planning stage.

We have not been informed of any specific laws or regulatory related issues that could materially impact the financial statements in addition to this, there has been no suspected fraud or irregularities reported to us.

While planning our audit the engagement partner selected appropriately trained staff to be engaged in the audit and the team are allocated based on their competence and capabilities.

The audit work undertaken is a substantive work based audit approach, reviewing to source documentation where appropriate and includes a review and walkthrough of the systems which management have put in place. These tests are directional. Therefore, they are designed in a way to maximise audit effectiveness and the possible identification of any material fraud, irregularities, or instances of systems and procedure breaches. Our testing did not identify any issues that require additional reporting.

These tests and other areas of our audit work are designed to enhance our ability to detect cases of material fraud and certain irregularities. It should be noted that our audit is carried out using a material based approach and therefore does not test every transaction, as such it would not detect all instances of irregularities and specifically fraud which is inherently more difficult to detect.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Samantha Hutton FCCA (Senior Statutory Auditor)

for and on behalf of KJA Kilner Johnson Ltd

Woodland House

Woodland Park

Bradford Road

Cleckheaton

BD19 6BW

29 June 2026

TURNOVER

3

26,403,100

20,182,249

Cost of sales

22,376,567

17,061,778

GROSS PROFIT

4,026,533

3,120,471

Administrative expenses

2,190,238

2,290,441

1,836,295

830,030

Other operating income

20,524

-

OPERATING PROFIT

5

1,856,819

830,030

Interest payable and similar expenses

7

129,299

99,522

PROFIT BEFORE TAXATION

1,727,520

730,508

Tax on profit

8

450,636

361,031

PROFIT FOR THE FINANCIAL YEAR

1,276,884

369,477

Profit attributable to:

Owners of the parent

1,162,581

296,755

Non-controlling interests

114,303

72,722

1,276,884

369,477

PROFIT FOR THE YEAR

1,276,884

369,477

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,276,884

369,477

Total comprehensive income attributable to:

Owners of the parent

1,162,581

296,754

Non-controlling interests

114,303

72,723

1,276,884

369,477

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

1,468,453

1,604,253

Investments

13

-

-

Investment property

14

-

-

1,468,453

1,604,253

CURRENT ASSETS

Debtors

15

5,261,785

5,185,093

Cash at bank and in hand

27,096

350,158

5,288,881

5,535,251

CREDITORS

Amounts falling due within one year

16

4,384,371

5,209,020

NET CURRENT ASSETS

904,510

326,231

TOTAL ASSETS LESS CURRENT LIABILITIES

2,372,963

1,930,484

CREDITORS

Amounts falling due after more than one year

17

(625,339

)

(772,217

)

PROVISIONS FOR LIABILITIES

21

(329,881

)

(347,409

)

NET ASSETS

1,417,743

810,858

CAPITAL AND RESERVES

Called up share capital

22

100

100

Retained earnings

23

1,312,931

750,349

SHAREHOLDERS' FUNDS

1,313,031

750,449

NON-CONTROLLING INTERESTS

24

104,712

60,409

TOTAL EQUITY

1,417,743

810,858

The financial statements were approved by the Board of Directors and authorised for issue on 24 June 2026 and were signed on its behalf by:

Mr P Chamley - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

752,817

752,817

Investment property

14

214,616

214,616

967,433

967,433

CURRENT ASSETS

Debtors

15

1,113,781

732,785

Cash at bank

6,120

3,450

1,119,901

736,235

CREDITORS

Amounts falling due within one year

16

1,169,642

782,952

NET CURRENT LIABILITIES

(49,741

)

(46,717

)

TOTAL ASSETS LESS CURRENT LIABILITIES

917,692

920,716

CREDITORS

Amounts falling due after more than one year

17

158,713

165,833

NET ASSETS

758,979

754,883

CAPITAL AND RESERVES

Called up share capital

22

100

100

Retained earnings

23

758,879

754,783

SHAREHOLDERS' FUNDS

758,979

754,883

Company's profit for the financial year

604,096

255,110

The financial statements were approved by the Board of Directors and authorised for issue on 24 June 2026 and were signed on its behalf by:

Mr P Chamley - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1 November 2023

100

453,594

453,694

37,686

491,380

Changes in equity

Dividends

-

-

-

(50,000

)

(50,000

)

Total comprehensive income

-

296,755

296,755

72,723

369,478

Balance at 31 October 2024

100

750,349

750,449

60,409

810,858

Changes in equity

Dividends

-

(600,000

)

(600,000

)

(70,000

)

(670,000

)

Total comprehensive income

-

1,162,581

1,162,581

114,303

1,276,884

Balance at 31 October 2025

100

1,312,930

1,313,030

104,712

1,417,742

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 November 2023

100

499,673

499,773

Changes in equity

Total comprehensive income

-

255,110

255,110

Balance at 31 October 2024

100

754,783

754,883

Changes in equity

Dividends

-

(600,000

)

(600,000

)

Total comprehensive income

-

604,096

604,096

Balance at 31 October 2025

100

758,879

758,979

Cash flows from operating activities

Cash generated from operations

1

1,517,068

1,720,541

Interest paid

(69,122

)

(16,805

)

Interest element of hire purchase payments paid

(60,177

)

(82,717

)

Tax paid

(266,846

)

(61,570

)

Net cash from operating activities

1,120,923

1,559,449

Cash flows from investing activities

Purchase of tangible fixed assets

(363,810

)

(519,708

)

Sale of tangible fixed assets

62,790

73,275

Net cash from investing activities

(301,020

)

(446,433

)

Cash flows from financing activities

Loan repayments in year

(11,442

)

(56,867

)

Capital repayments in year

(80,530

)

(42,501

)

Advance to Group Undertakings

(380,993

)

(638,302

)

Equity dividends paid

(670,000

)

(50,000

)

Net cash from financing activities

(1,142,965

)

(787,670

)

(Decrease)/increase in cash and cash equivalents

(323,062

)

325,346

Cash and cash equivalents at beginning of year

2

350,158

24,812

Cash and cash equivalents at end of year

2

27,096

350,158

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.10.25

31.10.24

£

£

Profit before taxation

1,727,520

730,508

Depreciation charges

422,203

740,653

Loss/(profit) on disposal of fixed assets

14,615

(28,119

)

Finance costs

129,299

99,522

2,293,637

1,542,564

Decrease/(increase) in trade and other debtors

304,304

(1,012,383

)

(Decrease)/increase in trade and other creditors

(1,080,873

)

1,190,360

Cash generated from operations

1,517,068

1,720,541

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 October 2025

31.10.25

1.11.24

£

£

Cash and cash equivalents

27,096

350,158

Year ended 31 October 2024

31.10.24

1.11.23

£

£

Cash and cash equivalents

350,158

24,812

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.11.24

Cash flow

At 31.10.25

£

£

£

Net cash

Cash at bank and in hand

350,158

(323,062

)

27,096

350,158

(323,062

)

27,096

Debt

Finance leases

(1,017,691

)

80,530

(937,161

)

Debts falling due within 1 year

(13,129

)

4,322

(8,807

)

Debts falling due after 1 year

(165,833

)

7,120

(158,713

)

(1,196,653

)

91,972

(1,104,681

)

Total

(846,495

)

(231,090

)

(1,077,585

)

1.	STATUTORY INFORMATION

Traffic Labour Supplies (Holdings) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of Consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn upto 31 October 2025.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The group financial statements have been prepared in accordance with the principles of FRS 102 acquisition method.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Subsidiaries are consolidated in the group's financial statements from the date that control commences until the date that control ceases.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Presentation Currency

The consolidated financial statements are presented in Pounds Sterling (£), which is the Parent Company's functional currency and the Group's presentation currency. Amounts are rounded to the nearest pound unless otherwise stated.

Significant judgements and estimates

The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts amounts of income and expenditure in the reporting period. Actual results may differ from those estimates.

There are no other balance sheet items which have accounting judgements or key sources of estimation uncertainty other than fixed asset depreciation, prepayments, accrued income and accruals.