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

The business was founded in 1935 by Mr T Richard Jones and incorporated in 1971 as T. Richard Jones (Betws) Limited. Following Mr Jones's retirement, the business was carried on by his sons, Huw and David, and is now run by the third generation of the Jones family Dafydd, Owain and John together with the Group's only non-family director, Richard Llewellyn.

The Group's headquarters are located in Ammanford, and it contracts with both public and private sector clients throughout South Wales.

The Group's main activities are the construction and development of commercial, industrial and residential property, and civil engineering. In addition, the Group operates a Waste Management division, a Haulage and Plant Hire division, and a Fabrication and Joinery division, all of which support the Group's core construction activities.

The Group enjoys a number of competitive advantages, including strong brand recognition within its heartland trading region, which enables it to secure high-value contracts and maintain consistently strong trading results. During 2025, turnover increased significantly by 35.7% to £35,691,140 (2024: £26,297,084), reflecting a strong period of contract wins and delivery. Gross profit decreased marginally to £3,187,812 (2024: £3,452,582), with gross margin reducing to 8.9% (2024: 13.1%) as a result of the change in contract mix and continued cost pressures within the sector. Despite the reduction in margin, profit before tax increased substantially to £1,960,636 (2024: £760,011), reflecting the absence of the prior year impairment charge and the overall increase in trading volume. The Group's order book remains strong, and the directors remain confident in continued profitability into the coming year.

The asset register maintained by the Group is an important strategic asset, and the Group's strategy is to proactively enhance and maintain its plant and machinery to facilitate the continued expansion of its activities. The net current asset ratio at the year end was 1.8 (2024: 1.93), reflecting a continued strong liquidity position that supports the Group's ability to undertake large contracts and fund further acquisitions as opportunities arise.

As a family-run business, the Group's approach is personal and client-led. This is reflected in the Group's advertised philosophy, "Building On A Firm Foundation," which speaks to a history of stability and consistency, as well as clear ambitions for the future. A significant proportion of the Group's workload is testament to this ethos, being derived from repeat custom. The directors thank all staff for their continued commitment and enthusiasm, which has contributed significantly to the Group's success, and remain focused on fostering a culture of continuous development for the benefit of customers, the Group and its employees.

Environmental matters

The Group recognises the importance of its environmental responsibilities and considers environmental stewardship to be an integral and fundamental part of its corporate strategy. All employees share in this commitment. The Group monitors its environmental impact and endeavours to design and implement policies and processes to reduce any damage that might be caused by its activities. Initiatives include the safe disposal of commercial waste, the minimisation of waste sent to landfill, reducing energy consumption, and the use of renewable natural resources where possible.

The principal risks facing the Group are those inherent to the construction sector, including volatility in the cost and availability of materials, subcontractor and labour capacity, and the wider strength of the UK economy and construction market. Global events, inflationary pressures and the cost of living continue to influence the volume and viability of new build projects, affecting both the Group's cost base and the decision-making of its clients. The Group also faces the ongoing risk of delayed payments, contract variations and disputes common to construction contracting, together with exposure to defects and warranty claims on completed works.

Competition within the region for new contract wins remains significant. Given the Group's long established and excellent reputation, it has developed strong, repeat relationships with clients across the region which, together with an order book extending beyond 12 months, provide a degree of mitigation against these risks.

Financial risk management objectives and policies

The Group operates a number of risk management policies designed to minimise its exposure to financial risk, including key financial controls and targets implemented on every project, which are reviewed monthly by the board to ensure that risk is identified and mitigated, and opportunities are explored fully.

Liquidity and cash flow risk

The Group produces detailed management accounts and cash flow forecasts, which enable the directors to monitor its cash position and ensure sufficient liquidity to meet its obligations, including payments to subcontractors and suppliers, as they fall due. Given the nature of construction contracting, particular attention is paid to the timing of contract receipts, retentions and payment certificates against the Group's ongoing commitments

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Interest rate risk

The Group utilises a number of financial instruments, including hire purchase contracts and finance leases, to fund the acquisition of plant, machinery and vehicles required for its operations. These instruments are issued at fixed rates, exposing the Group to fair value interest rate risk rather than cash flow interest rate risk. The directors actively manage this exposure through the prudent use of the Group's cash reserves, considering on a case-by-case basis whether each acquisition should be financed or purchased outright.

Credit risk

The Group operates a number of policies and controls to minimise credit risk, including a detailed credit review of all customers prior to any terms being agreed. Directors authorise all higher-value contracts, and the Group will only conduct business with customers assessed as credit-worthy, reflecting the increased exposure to credit risk inherent in large-value construction contracts.

Price risk

The Group actively manages price risk by agreeing terms with suppliers and subcontractors prior to entering into contracts with customers. However, ongoing cost pressures and supply chain volatility within the construction sector continue to increase the risk of margin erosion on fixed-price contracts, particularly those with longer completion timescales.

Supply chain and subcontractor risk

The Group is reliant on the continued availability and performance of subcontractors and the timely supply of materials to deliver projects to programme and budget. The directors monitor subcontractor and supplier relationships closely and maintain a network of trusted, established partners to mitigate the risk of disruption, delay or cost escalation arising from supply chain issues.

The directors have prepared updated and sensitised forecasts for the coming year and have taken steps to ensure the Group has sufficient funding to manage any period of disruption and to meet its cash flow requirements as they arise, thus enabling the Group to meet its obligations as they fall due.

On behalf of the board

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

The principal activity of the company and group continued to be that of building contractor and plant hire operations.

The results for the year are set out on page 8.

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

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

In accordance with the company's articles, a resolution proposing that Redwood Wales Limited be reappointed as auditor of the group will be put at a General Meeting.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

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

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

The financial statements have been prepared on a going concern basis which assumes that the group and company will continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report.

The group funds its day to day working capital requirements entirely from its own cash resources, without recourse to external borrowing or bank facilities. Whilst challenging market conditions remain within the construction sector, the group is reporting results consistent with budgets.

The directors have prepared detailed cash flow forecasts covering a period of at least 12 months from the date these financial statements are signed. These forecasts incorporate the group's secured contract pipeline, anticipated payment and retention receipts, and expected subcontractor and supplier payments, and demonstrate that the group will continue to generate positive cash flow and meet its obligations as they fall due.

The directors have also considered the potential impact of disruption to the supply chain, subcontractor availability, and the group's customer base, including the risk of delayed payments or contract variations common to the construction industry. Based on the scenarios reviewed, the directors have a reasonable expectation that the group will continue to operate and settle its liabilities as they fall due. However, the extent of any future impact of wider economic or market conditions remains inherently uncertain.

At the time of approving the financial statements, the directors have a reasonable expectation that the group, being debt-free and self-funded, has adequate resources to continue in operational existence for the foreseeable future. The directors therefore continue to adopt the going concern basis of accounting in preparing the financial statements.

We have audited the financial statements of TRJ Cyf Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 July 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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 information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

In the light of the knowledge and understanding of the group and the parent company and their 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 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.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the group's and 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 parent company or to cease operations, or have no realistic alternative but to do so.

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

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

We obtain an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on operations of the company. The key laws and regulations we consider in this context include the UK Companies Act and relevant tax legislation.

Audit procedures performed by the engagement team to respond to the risk of irregularities and non compliance with laws and regulations, including fraud, include the following:

• discussions with management to enquire of any known instances of non compliance with laws and regulations, including fraud;

• discussions with management in respect of any actual or potential litigation claims;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• testing the appropriateness of journal entries and other adjustments to address the risk of fraud through management override of controls;

• review the of the financial statements disclosures and testing to support documentation to assess compliance with relevant laws and regulation; and

• evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business

There are inherent limitations in the audit procedures which means we are less likely to become aware of instances of non compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. The risk of not detecting material misstatements due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forger of intentional misrepresentation, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the parent 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 parent company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £25 (2024 - £65 loss).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

TRJ Cyf Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

The group consists of TRJ Cyf Ltd and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 4 'Statement of Financial Position': Reconciliation of the opening and closing number of shares;

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

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

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

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company TRJ Cyf Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 July 2025. 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.

The financial statements have been prepared on a going concern basis, which assumes that the group will continue in operational existence for the foreseeable future. In making this assessment, the directors have reviewed the balance sheet, the order book and forecast contract cash flows, and the level of cash reserves held at the date of signing this report.

The directors have prepared detailed cash flow forecasts covering a period of at least 12 months from the date these financial statements are signed. These forecasts incorporate the group's secured contract pipeline, anticipated payment and retention receipts, and expected subcontractor and supplier payments, and demonstrate that the group will continue to generate positive cash flow and meet its obligations as they fall due.

The directors have also considered the potential impact of disruption to the supply chain, subcontractor availability, and the group's customer base, including the risk of delayed payments or contract variations common to the construction industry. Based on the scenarios reviewed, the directors have a reasonable expectation that the group will continue to operate and settle its liabilities as they fall due. However, the extent of any future impact of wider economic or market conditions remains inherently uncertain.

At the time of approving the financial statements, the directors have a reasonable expectation that the group, being debt-free and self-funded, has adequate resources to continue in operational existence for the foreseeable future. The directors therefore continue to adopt the going concern basis of accounting in preparing the financial statements.

The turnover shown in the profit and loss account represents amounts invoiced during the year for construction and building services provided, exclusive of VAT.

Revenue from contracts for the provision of construction services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total cos. Where the outcome cannot be estimated reliably, revenue is recognised only to the extend of the expenses recognised that are recoverable.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs. The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable. When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense, they are not included in contract costs if the contract is obtained in a subsequent period.

The "percentage of completion method" is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments, or other assets depending on their nature, and provided it is probable they will be recovered.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

The group operates a defined benefit scheme for certain employees and directors, although this scheme was closed to new members on 30 June 2002. For the defined benefit scheme, an independent actuary completes a valuation every three years, and in accordance with their recommendations, contributions are paid to the scheme so as to secure the benefits as set out in the rules. The operating and financing costs of the scheme are recognised in the profit and loss account. The shortfall in the fair value of the plan assets are compared to the benefit obligation, adjusted for any unrecognised actuarial gains or losses, and is provided in full at the balance sheet date. The assets of the scheme are held separately from those of the group.

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

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

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

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

During the year and at the balance sheet date the group task in house quantity surveyors with quantifying the amounts recoverable on each contract in progress. The cost of work done to date, including materials, subcontractor costs and staff costs, is taken into consideration when arriving at a valuation by reference to the stage of completion of each contract.

The assessment of amounts recoverable on contracts represents a significant area of judgement, requiring the exercise of professional experience in assessing the percentage of completion, the forecast final outcome of each contract, and the recoverability of costs incurred. The group includes provisions within these valuations for unforeseen costs, based on the directors assessment of their risk and likelihood of occurrence, together with any known variation, claims or disputes with customers or subcontractors that may affect the final recoverable amount.

Given the inherent uncertainty in estimating costs to complete and final contract outcomes, actual results may differ from these estimates, and any such differences are recognised in the period in which they become known.

The group has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, pension payment increase, asset valuations and discount rate on corporate bonds. Management estimates these factors in determining the pension liability in the balance sheet. The assumptions reflect historic experience and current trends.

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

The number of directors whom retirement benefits are accruing under defined pension schemed amounted to 4 (2024:4).

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

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

In the prior year, the directors identified an impairment in respect of freehold land and buildings. They considered both the realisable value and value in use. The impairment was based on the estimate of realisable value which had been established by an external valuer.

Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:

All investment properties were valued by the director Mr D H Jones based on their original cost, which in the opinion of Mr D H Jones was not materially different to their current value.

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

Included in other creditors are amounts owed to the directors of £224,193 (2024: £190,417). These amounts are unsecured and incur interest at 2.25% per annum, and have no fixed terms for repayment.

Other borrowings consist of amounts owed to the spouses of former directors Mr H Jones and Mr D Jones. These amounts are unsecured and incur interest at 2.25% per annum.

Obligations under hire purchase agreements are secured against the assets to which they relate.

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of asset. The average lease term is 2-4 years. All leases are on a fixed payment basis and no arrangements have been entered into for contingent rental payments.

The following are the major deferred tax liabilities and assets recognised by the group and company:

The deferred tax asset set out above in respect of tax losses is expected to reverse after 12 months.

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

The group previously operated a defined benefit scheme, which is now closed to new members. With effect from 2002 the defined contribution stakeholder pension plan was established and in-service members ceased to accrue benefits within the defined benefit section, although such members' pension benefits remain linked to their final salary at retirement and their length of service before 1 July 2002.

The disclosures outlined in this note refer only to the defined benefit section of the scheme, unless otherwise stated.

The last full actuarial valuation of the scheme was carried out by a qualified independent actuary as at 31 March 2022. The contributions made by the company during the year totalled £193,000 (2024: £308,000), net of administration charges.

Assumed life expectations on retirement at age 65:

The actual return on plan assets was £- (2024 - £-).

The Group's ultimate controlling parties are the directors, who also own an control a number of related entities, The following balances were outstanding at the year end:

2025     2024
     £          £

Castle Gardens Limited         37,090        6,139
Dolawen     Limited            564,370        856,636

All balances are unsecured, interest free and repayable on demand. No provisions have been recognised in respect of amounts owed to the group.

Management fees of £120,000 (2024: £120,000) were paid during the year to Dolawen Limited for strategic and management services provided.

During the year, the group paid rent to the directors' pension scheme of £80,000 (2024: £80,000). Also, an investment property was disposed of to the family pension trust. The property which had a carrying value of £132,600 was sold for gross proceeds of £268,796 on 20 December 2024. The transaction was conducted at arms length and no balance remained outstanding between the parties at the year end.