REGISTERED NUMBER: 01391059 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

FOR

LEMON GROUNDWORK SOLUTIONS LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

7

Statement of Financial Position

8

Statement of Changes in Equity

9

Notes to the Financial Statements

10

DIRECTORS:

K R Childs

C J Prior

P R Hart

P A Pannell

REGISTERED OFFICE:

Russell Gardens

Wickford

Essex

SS11 8BH

REGISTERED NUMBER:

01391059 (England and Wales)

AUDITORS:

Goldwyns Limited

Statutory Auditors and Chartered Accountants

1 Nelson Mews

Southend on Sea

Essex

SS1 1AL

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

REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS

The business continues to benefit from employee ownership, and we are experiencing increased engagement from all co-owners year on year. We feel that these higher levels of engagement have hugely contributed to achieving improved customer service as well as increasing output levels on our core products to the highest levels in the company's history.

Our collective focus on KPI's has sustained a respectful performance for the year despite the challenges within the sector. We have navigated through these challenges and are extremely satisfied that the business remains in a strong position for growth plans.

KEY PERFORMANCE INDICATORS

The directors use the following key performance indicators to monitor the performance of the business:

2025

2024

Turnover

33,504,442

34,840,095

Profit before tax

275,677

533,425

Gross profit margin

11.12%

12.21%

PRINCIPAL RISKS AND UNCERTAINTIES

The company is subject to the normal commercial risks that arise in the ordinary course of business. These risks are reviewed by the directors as part of their ongoing corporate governance procedures.

The company continues to have access to a level of bad debt protection that the directors consider to be adequate.

The directors are satisfied with the internal controls and processes in place that control the level of uninsured bad debt. The directors acknowledge that there is always an element of risk involved when accepting orders on a credit basis and, no matter how many controls and checks are in place, the risk of bad debts cannot be entirely eliminated.

ON BEHALF OF THE BOARD:

P A Pannell - Director

24 July 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the supply and prefabrication of steel fixing reinforcements and associated accessories.

DIVIDENDS

The total distribution of dividends for the year ended 31 October 2025 will be £ 150,000 .

DIRECTORS

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

K R Childs

C J Prior

P R Hart

P A Pannell

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

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 company'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 company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

P A Pannell - Director

24 July 2026

Opinion

We have audited the financial statements of Lemon Groundwork Solutions Ltd (the 'company') for the year ended 31 October 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity 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 company's affairs as at 31 October 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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 Statement of Directors' Responsibilities set out on page three, 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 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.

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.

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. In order to address the risks of misstatements in respect of irregularities, including fraud, we have:

-

obtained an understanding of the key laws and regulations applicable to the company, including the Companies Act 2006, and applicable taxation legislation;

-

assessed the company's own internal controls and systems for the prevention and detection of irregularities and particularly the control environment within which they operate;

-

determined a materiality level and audit approach sufficient to identify most irregularities, including fraud, that may occur;

-

considered our own involvement in the preparation of the company's statutory financial statements and taxation returns;

-

conducted audit verification work, on a sample basis, on the key audit areas and risks we have identified; and

-

reflected on the outcome of our work, and the likelihood that conclusions drawn may be indicative of other areas of potential irregularity.

We therefore consider our audit approach has been sufficient to detect material irregularities, including fraud.

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.

Robert Howe BEng FCA (Senior Statutory Auditor)

for and on behalf of Goldwyns Limited

Statutory Auditors and Chartered Accountants

1 Nelson Mews

Southend on Sea

Essex

SS1 1AL

24 July 2026

TURNOVER

33,504,442

34,840,095

Cost of sales

29,777,610

30,586,280

GROSS PROFIT

3,726,832

4,253,815

Administrative expenses

3,357,025

3,655,479

369,807

598,336

Other operating income

-

1,015

OPERATING PROFIT

4

369,807

599,351

Interest receivable and similar income

25,600

6

395,407

599,357

Interest payable and similar expenses

6

119,730

65,932

PROFIT BEFORE TAXATION

275,677

533,425

Tax on profit

7

69,550

163,624

PROFIT FOR THE FINANCIAL YEAR

206,127

369,801

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

206,127

369,801

FIXED ASSETS

Intangible assets

9

582

1,645

Tangible assets

10

3,731,878

4,405,095

3,732,460

4,406,740

CURRENT ASSETS

Stocks

11

4,273,541

4,665,751

Debtors

12

4,992,587

5,645,474

Cash at bank and in hand

3,934,458

2,173,406

13,200,586

12,484,631

CREDITORS

Amounts falling due within one year

13

9,685,095

9,297,098

NET CURRENT ASSETS

3,515,491

3,187,533

TOTAL ASSETS LESS CURRENT LIABILITIES

7,247,951

7,594,273

CREDITORS

Amounts falling due after more than one year

14

(1,108,885

)

(1,345,893

)

PROVISIONS FOR LIABILITIES

17

(880,923

)

(1,046,364

)

NET ASSETS

5,258,143

5,202,016

CAPITAL AND RESERVES

Called up share capital

18

1,000

1,000

Retained earnings

19

5,257,143

5,201,016

SHAREHOLDERS' FUNDS

5,258,143

5,202,016

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

P A Pannell - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 November 2023

1,000

4,942,215

4,943,215

Changes in equity

Dividends

-

(111,000

)

(111,000

)

Total comprehensive income

-

369,801

369,801

Balance at 31 October 2024

1,000

5,201,016

5,202,016

Changes in equity

Dividends

-

(150,000

)

(150,000

)

Total comprehensive income

-

206,127

206,127

Balance at 31 October 2025

1,000

5,257,143

5,258,143

1.	STATUTORY INFORMATION

Lemon Groundwork Solutions Ltd 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 Company 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.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Turnover

Turnover represents net invoiced sales of goods, excluding value added tax. Turnover is recognised when the goods cease to be assets of the seller and become assets of the customer, which is when the seller transfers to the customer access to the significant benefits relating to the goods and exposure to the risks inherent in those benefits in accordance with FRS 102. These benefits are transferred once a sale has been agreed with the customer as the managerial control over the goods is relinquished and transferred to the buyer.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Depreciation commences in the month following acquisition and assets are originally carried at historical cost.

Short leasehold property

- 10% reducing balance

Plant and machinery

- 25% on reducing balance

Fixtures and fittings

- 10% and 25% on reducing balance

Motor vehicles

- 20% on reducing balance

Fabrication plant and machinery

- 10% reducing balance

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts are capitalised in the balance sheet and are depreciated over their estimated useful lives.

The interest element of these obligations is charged to the profit and loss account on a sum of digits basis over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Operating leases

Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,976,963

4,263,376

Social security costs

461,535

456,796

Other pension costs

92,628

93,100

4,531,126

4,813,272

The average number of employees during the year was as follows:

2025

2024

Production staff

80

79

Office and management

24

23

104

102

Included within wages and salaries are employee distributions totalling £20,001 (2024 - £40,000) paid on behalf of LGS Employee Ownership Trust.

2025

2024

£

£

Directors' remuneration

278,555

602,393

Directors' pension contributions to money purchase schemes

644

3,874

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

110,964

198,850

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

7,408

1,424

Depreciation - owned assets

315,622

266,576

Depreciation - assets on hire purchase contracts

402,222

337,690

Loss/(profit) on disposal of fixed assets

1,143

(19,574

)

Computer software amortisation

1,063

1,514

Foreign exchange differences

6,460

454

Rent under operating leases

422,580

541,800

5.	AUDITORS' REMUNERATION

2025

2024

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

23,700

21,675

Auditors' remuneration for non audit work

4,600

3,825

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Hire purchase interest

119,730

51,523

Other interest

-

14,409

119,730

65,932

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

234,991

(246,953

)

Deferred tax

(165,441

)

410,577

Tax on profit

69,550

163,624

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

275,677

533,425

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

68,919

133,356

Effects of:

Expenses not deductible for tax purposes

1,628

2,856

Income not taxable for tax purposes

-

(4,894

)

Capital allowances in excess of depreciation

(997

)

-

Depreciation in excess of capital allowances

-

5,084

Movement in tax rate

-

27,222

Total tax charge

69,550

163,624

8.

DIVIDENDS

2025

2024

£

£

Interim

150,000

111,000

9.	INTANGIBLE FIXED ASSETS

Computer

software

£

COST

At 1 November 2024

and 31 October 2025

295,966

AMORTISATION

At 1 November 2024

294,321

Amortisation for year

1,063

At 31 October 2025

295,384

NET BOOK VALUE

At 31 October 2025

582

At 31 October 2024

1,645

10.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

leasehold

machinery

fittings

£

£

£

COST

At 1 November 2024

815,173

605,349

525,534

Additions

-

572

27,994

Disposals

-

-

-

At 31 October 2025

815,173

605,921

553,528

DEPRECIATION

At 1 November 2024

465,685

424,518

190,176

Charge for year

36,891

45,101

59,123

Eliminated on disposal

-

-

-

At 31 October 2025

502,576

469,619

249,299

NET BOOK VALUE

At 31 October 2025

312,597

136,302

304,229

At 31 October 2024

349,488

180,831

335,358

Fabrication

Motor

plant and

vehicles

machinery

Totals

£

£

£

COST

At 1 November 2024

3,120,917

2,988,225

8,055,198

Additions

21,037

-

49,603

Disposals

(76,565

)

-

(76,565

)

At 31 October 2025

3,065,389

2,988,225

8,028,236

DEPRECIATION

At 1 November 2024

916,916

1,652,808

3,650,103

Charge for year

443,186

133,543

717,844

Eliminated on disposal

(71,589

)

-

(71,589

)

At 31 October 2025

1,288,513

1,786,351

4,296,358

NET BOOK VALUE

At 31 October 2025

1,776,876

1,201,874

3,731,878

At 31 October 2024

2,204,001

1,335,417

4,405,095

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Fabrication

Motor

plant and

vehicles

machinery

Totals

£

£

£

COST

At 1 November 2024

2,091,959

568,831

2,660,790

Transfer to ownership

(227,461

)

(568,831

)

(796,292

)

At 31 October 2025

1,864,498

-

1,864,498

DEPRECIATION

At 1 November 2024

265,964

187,788

453,752

Charge for year

365,199

37,023

402,222

Transfer to ownership

(122,588

)

(224,811

)

(347,399

)

At 31 October 2025

508,575

-

508,575

NET BOOK VALUE

At 31 October 2025

1,355,923

-

1,355,923

At 31 October 2024

1,825,995

381,043

2,207,038

11.

STOCKS

2025

2024

£

£

Raw materials

4,034,475

4,452,264

Work-in-progress

239,066

213,487

4,273,541

4,665,751

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

4,724,406

5,150,573

Other debtors

32,976

32,654

Corporation tax

-

306,953

Prepayments and accrued income

235,205

155,294

4,992,587

5,645,474

13.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Hire purchase contracts (see note 15)

353,718

424,213

Trade creditors

8,523,738

7,927,260

Amounts owed to group undertakings

51

51

Corporation tax

173,166

-

Social security and other taxes

297,670

474,243

Other creditors

17,258

34,013

Accrued expenses

319,494

437,318

9,685,095

9,297,098