REGISTERED NUMBER: 05016806 (England and Wales)

D R GROUNDWORKS LTD

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTORS:

N P Fryer

P R Whistler

S A Thatcher

REGISTERED OFFICE:

Unit A

Meadow View Business Park

Winchester Road

Upham

Hampshire

SO32 1HJ

REGISTERED NUMBER:

05016806 (England and Wales)

SENIOR STATUTORY AUDITOR:

Tom Young FCA

AUDITORS:

Hopper Williams & Bell Limited

Statutory Auditor

Highland House

Mayflower Close

Chandler's Ford

Eastleigh

Hampshire

SO53 4AR

BANKERS:

Lloyds TSB Bank plc

20-24 High Street

Gosport

Hampshire

PO12 1DE

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

REVIEW OF BUSINESS

The principle activity of the company is the provision of groundworks and civil engineering in the construction industry.

The full results for the period are shown on the following pages. The company turnover was £17,772,235 in this period. The company's gross profit percentage has increased to 12.19% in comparison to 12.11% in the previous period.

Despite the slow market in 2025 the company is pleased to report that the net profit after tax achieved of £392,791 has met expectations and that the company remains positive that 2026 will match the budgeted forecast, both in turnover and net profit. Despite challenging market conditions, D R Groundworks Limited continues to maintain a strong market share within the industry and successfully secured a number of key contracts during the year.

Business Environment

The housing market showed some recovery, after the slowdown in 2023-2024, however overall delivery levels remained far below expectations. By diversifying the company's client base, D R Groundworks Limited has successfully secured several new contracts throughout 2025, allowing the company to maintain the forecasted turnover and margins.

New tendering opportunities from both new and existing clients' remains high into 2026, however low sales demand and restrictions in planning continues to restrict the company's overall output.

The company continues to differentiate from a growing number of competitors in the marketplace, by maintaining strong client relationships and delivering work to the highest levels of service, safety and quality that the company's customers have come to expect.

Strategy

The company plans to maintain a consistent turnover during the coming year of £16m-£19m, whilst continuing to increase its gross margins and progressively invest in the company's growth.

The key elements to achieving this being:

- Closely monitor overheads to ensure they reflect the demands of a constantly changing market.

- Maintain a high level of employee retention and recruit new mid-level employees in a competitive labour market

- Continue to invest in delivering consistent high-quality product, on time and within predetermined budgets.

- Further cementing our reputation in the market place, through quality

Going concern

The financial statements have been prepared under the going concern assumption. The directors' consideration of the going concern assumption is set out in note 2 to the financial statements and is also specifically referred to in the independent auditors' report which accompanies the financial statements.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and execution of the company's strategy are subject to several risks. The key business risks are set out below.

Competition

The company provides civil-engineering services to major housebuilders. The activities of these companies are heavily dependent on the broader economy and consumer confidence. This is influenced by various factors outside the company's control, including general business confidence, unemployment levels, availability of credit, and interest rates.

The company operates in an increasingly competitive market, particularly around price and availability of skilled labour. This results not only in downward pressure on our margins but also in the risk that customer's expectations will not be met.

In order to mitigate this risk, regular pricing and profitability evaluations are undertaken. Regular reviews of the labour force and other resources take place to ensure that production efficiency is maximised.

The company's performance depends largely on the strength of its managers and staff. The resignation of key individuals and the inability to recruit people with the right experience and skills could adversely impact the company's results.

To mitigate these issues the company has regular reviews of its management team at all levels, and aims to train and recruit internally where possible, with the intention of retaining key individuals in the business.

FUTURE DEVELOPMENTS

The directors believe that developing their employees is essential to maintaining the company's success within its sector and delivering the highest standard of workmanship to its valued clients. To support this, the company intends to continue investing in training programmes and quality control measures, ensuring that the workforce consistently produces high-quality finished products while maintaining the highest standards of safety.

KEY PERFORMANCE INDICATORS

As noted above, the company has made a profit in the period which has allowed them to make progress in the period on the overriding objective and two key elements of the strategy for growth with its performance. The board monitors progress on the overall strategy and the individual strategic elements by reference to KPIs.

Performance during the period, together with historical trend data is set out in the table below:

Oct 2025

Oct 2024

Definition, method of calculation

Growth in sales (%)

29.76%

0.01%

Annualised year on year sales growth expressed as a percentage.

Gross Margin (%)

12.19%

12.11%

Ratio of gross profit expressed as a percentage of turnover.

ON BEHALF OF THE BOARD:

N P Fryer - Director

28 July 2026

The directors present their report with the financial statements of the company for the year ended 31 October 2025. Information regarding likely future developments is included within the Strategic report.

DIVIDENDS

No dividends will be distributed for the year ended 31 October 2025.

DIRECTORS

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

N P Fryer

P R Whistler

S A Thatcher

CHARITABLE DONATIONS AND EXPENDITURE

Charitable donations in the year totalled £3,166 (2024 - £2,908).

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies 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.

AUDITORS

The auditors, Hopper Williams & Bell Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

N P Fryer - Director

28 July 2026

Opinion

We have audited the financial statements of D R Groundworks Ltd (the 'company') for the year ended 31 October 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, 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.

Material uncertainty related to going concern

As stated in note 2, events or conditions exist which indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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.

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 four, 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. Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities even though the audit has been properly planned and performed in accordance with the ISAs (UK). The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, and the industry in which it operates. These include but are not limited to compliance with the Companies Act 2006, UK Generally Accepted Accounting Practice and the relevant tax compliance regulations for the company.

- We obtained an understanding of how the company is complying with these frameworks through discussions with

management.

- We enquired with management whether there were any instances of non-compliance with laws and regulations or whether they had knowledge of actual or suspected fraud. These enquiries are corroborated through follow-up audit procedures including but not limited to a review of legal and professional costs, correspondence and a review of board minutes.

- We assessed the susceptibility of the company's financial statements to material misstatement, including the risk of fraud and management override of controls. We designed our audit procedures to respond to this assessment, including the identification and testing of any related party transactions and the testing of journal transactions that arise from management estimates, that are determined to be of significant value or unusual in their nature.

- We assessed the appropriateness of the collective competence and capabilities of the engagement team, including consideration of the engagement team's knowledge and understanding of the industry in which the company operates in, and their practical experience through training and participation with audit engagements of a similar nature.

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.

Tom Young FCA (Senior Statutory Auditor)

for and on behalf of Hopper Williams & Bell Limited

Statutory Auditor

Highland House

Mayflower Close

Chandler's Ford

Eastleigh

Hampshire

SO53 4AR

29 July 2026

TURNOVER

17,772,235

13,695,968

Cost of sales

(15,606,356

)

(12,037,705

)

GROSS PROFIT

2,165,879

1,658,263

Administrative expenses

(1,576,576

)

(1,335,153

)

OPERATING PROFIT

4

589,303

323,110

Intercompany loan written off

5

-

300,000

589,303

623,110

Interest receivable and similar income

190

-

589,493

623,110

Interest payable and similar expenses

6

(17,035

)

(33,955

)

PROFIT BEFORE TAXATION

572,458

589,155

Tax on profit

7

(179,667

)

(88,047

)

PROFIT FOR THE FINANCIAL YEAR

392,791

501,108

PROFIT FOR THE YEAR

392,791

501,108

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

392,791

501,108

FIXED ASSETS

Tangible assets

8

55,189

55,305

CURRENT ASSETS

Stocks

9

149,574

65,958

Debtors

10

2,310,053

2,117,815

Cash at bank and in hand

234,458

89,301

2,694,085

2,273,074

CREDITORS

Amounts falling due within one year

11

(3,413,233

)

(3,337,557

)

NET CURRENT LIABILITIES

(719,148

)

(1,064,483

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(663,959

)

(1,009,178

)

CREDITORS

Amounts falling due after more than one year

12

(35,494

)

(82,714

)

PROVISIONS FOR LIABILITIES

16

(5,485

)

(5,837

)

NET LIABILITIES

(704,938

)

(1,097,729

)

CAPITAL AND RESERVES

Called up share capital

17

1,053

1,053

Share premium

8,500

8,500

Retained earnings

(714,491

)

(1,107,282

)

SHAREHOLDERS' FUNDS

(704,938

)

(1,097,729

)

The financial statements were approved by the Board of Directors and authorised for issue on 28 July 2026 and were signed on its behalf by:

N P Fryer - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 December 2023

1,053

(1,608,390

)

8,500

(1,598,837

)

Changes in equity

Total comprehensive income

-

501,108

-

501,108

Balance at 31 October 2024

1,053

(1,107,282

)

8,500

(1,097,729

)

Changes in equity

Total comprehensive income

-

392,791

-

392,791

Balance at 31 October 2025

1,053

(714,491

)

8,500

(704,938

)

1.	STATUTORY INFORMATION

D R Groundworks 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 FRS 102 "The Financial Reporting Standards applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006, including the provisions of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The financial statements for the year ended 31 October 2025 are presented with comparative information for the period from 1 December 2023 to 31 October 2024.

The comparative period is shorter than the current period and, as a result, the results and cash flows for the current year are not directly comparable with those of the prior period.

Going concern

The directors have considered the impact and risk on the company of the trading conditions in the construction sector and the company's prospects, recognising the high degree of uncertainty.

The directors have prepared forecasts covering a period of at least twelve months from the date of approval of these financial statements. These forecasts demonstrate that the Company will be required to carefully manage its working capital resources throughout the period. The Company's ability to continue trading and meet its liabilities as they fall due is dependent upon achieving forecast levels of future sales, the timely collection of outstanding trade receivables and the receipt of anticipated VAT refunds from HM Revenue & Customs.

Whilst the directors consider the assumptions underpinning the forecasts to be reasonable and believe that the Company will be able to generate sufficient cash inflows to meet its obligations as they fall due, the successful achievement of these forecasts is subject to factors that are not wholly within the Company's control. Accordingly, these events and conditions indicate the existence of a material uncertainty which may cast significant doubt upon the Company's ability to continue as a going concern and, therefore, its ability to realise its assets and discharge its liabilities in the normal course of business.

Nevertheless, after considering the forecasts and available mitigating actions below, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and have therefore prepared the financial statements on the going concern basis. The financial statements do not include any adjustments that would result if the Company were unable to continue as a going concern.

The following actions implemented throughout 2025 will continue to be reviewed and rolled out moving through 2026:

- Continually closely monitor overheads and adjust staffing levels accordingly. Also, continuing to recruit new management staff who will bring and help to develop new processes to improve margins and monitor cost control.

- Constant review and monitoring of contract activity on an operational and commercial level.

- Continue to review labour levels, and recruit on a subcontract basis where suitable, to deal with the peaks and troughs in the market.

- Constant development of new client relationships to maintain a diverse range of clients in a challenging market. Clients are vetted on financial strengths and payment record to reduce operational risk within contracts.

- Continually monitor the cash position of the company to ensure the ability to meet its current liabilities on time.

Financial Reporting Standard 102 - reduced disclosure exemptions

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

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 33.7.

Turnover

Turnover represents the value, net of value added tax and discounts, of goods provided to customers and work carried out in respect of services provided to customers.

Construction contracts

When the outcome of a fixed price construction contract can be reliably estimated, revenue and costs are recognised on a percentage of completion basis, measured by reference to the proportion that costs incurred to date bear to estimated total costs for each contract. Variations in contract work and claims are included in contract revenue to the extent that they have been accepted by the customer. When the outcome of a cost plus construction contract can be reliably estimated, revenue is recognised by reference to the recoverable costs incurred during the period plus the fee earned, measured by the proportion that the costs incurred to date bear to the estimated total costs of the contract. When the outcome of a construction contract cannot be reliably estimated, revenue is recognised only to the extent of contract costs incurred that is probable will be recoverable and contract costs are recognised as an expense in the period in which they are incurred. When it is probable that the total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

Retentions

Retentions that are due for release are recognised, as opposed to recognising all retentions.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life within the group or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery - 20% Straight line

Computer equipment - 20% Straight line

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 income statement.

Stocks

Stocks 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 Income Statement, 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Financial assets

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include trade and other receivables and cash and bank balances are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financial transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Financial liabilities

Basic financial liabilities, which include trade and other payables, are initially measured at transaction price and subsequently measured at amortised cost, unless the arrangement constitutes a financing transaction where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Equity instruments

Equity instruments issued by the company are recorded at the fair value of the proceeds received net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

3.	EMPLOYEES AND DIRECTORS

Period

1.12.23

Year Ended

to

31.10.25

31.10.24

£

£

Wages and salaries

2,854,037

2,616,485

Social security costs

390,048

295,351

Other pension costs

69,126

59,713

3,313,211

2,971,549

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

Period

1.12.23

Year Ended

to

31.10.25

31.10.24

Direct

48

50

Administration and management

17

18

65

68

Period

1.12.23

Year Ended

to

31.10.25

31.10.24

£

£

Directors' remuneration

179,515

166,492

Directors' pension contributions to money purchase schemes

3,640

4,000

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

Money purchase schemes

1

1

The total remuneration paid to directors in the year totalled £179,515 (2024: £166,492).

The highest paid director received remuneration of £90,017 (2024: £43,282).

4.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1.12.23

Year Ended

to

31.10.25

31.10.24

£

£

Hire of plant and machinery

29,281

34,881

Depreciation - owned assets

15,065

7,292

Auditors' remuneration

11,543

10,583

Auditors' remuneration for non audit work

5,772

5,292

Operating lease expense

62,865

64,861

5.	EXCEPTIONAL ITEMS

Period

1.12.23

Year Ended

to

31.10.25

31.10.24

£

£

Intercompany loan written off

-

300,000

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1.12.23

Year Ended

to

31.10.25

31.10.24

£

£

Bank loan interest

17,035

16,532

Interest on PAYE

-

17,423

17,035

33,955

7.

TAXATION

Analysis of the tax charge

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

Period

1.12.23

Year Ended

to

31.10.25

31.10.24

£

£

Current tax:

UK corporation tax

180,019

11,070

Deferred tax

(352

)

76,977

Tax on profit

179,667

88,047

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:

Period

1.12.23

Year Ended

to

31.10.25

31.10.24

£

£

Profit before tax

572,458

589,155

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

143,115

147,289

Effects of:

Expenses not deductible for tax purposes

37,128

19,010

Income not taxable for tax purposes

(48

)

-

Capital allowances in excess of depreciation

(528

)

(3,252

)

Intercompany loan written off

-

(75,000

)

Total tax charge

179,667

88,047

8.	TANGIBLE FIXED ASSETS

Plant and

Computer

machinery

equipment

Totals

£

£

£

COST

At 1 November 2024

92,799

52,090

144,889

Additions

-

14,948

14,948

Disposals

(45,545

)

(21,034

)

(66,579

)

At 31 October 2025

47,254

46,004

93,258

DEPRECIATION

At 1 November 2024

52,595

36,989

89,584

Charge for year

9,211

5,854

15,065

Eliminated on disposal

(45,546

)

(21,034

)

(66,580

)

At 31 October 2025

16,260

21,809

38,069

NET BOOK VALUE

At 31 October 2025

30,994

24,195

55,189

At 31 October 2024

40,204

15,101

55,305

9.

STOCKS

2025

2024

£

£

Stocks

149,574

65,958