REGISTERED NUMBER: SC191842 (Scotland)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30TH APRIL 2026

FOR

MCCONNELL LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

8

Report of the Independent Auditors

10

Statement of Income and Retained Earnings

14

Balance Sheet

15

Cash Flow Statement

16

Notes to the Cash Flow Statement

17

Notes to the Financial Statements

18

DIRECTORS:

Robert Henry McGregor

Claire Marie Roe

Jon Matthew Wallis

Simon Anthony Lacey

John Robinson Hepburn

REGISTERED OFFICE:

Orion House

Bramah Avenue

Scottish Enterprise Technology Park

East Kilbride

Glasgow

G75 0RD

REGISTERED NUMBER:

SC191842 (Scotland)

SENIOR STATUTORY AUDITOR:

Mr Mark Jones FCA

AUDITORS:

Cook & Partners Limited

Statutory Auditor

Manufactory House

Bell Lane

Hertford

Hertfordshire

SG14 1BP

The directors present their strategic report for the year ended 30th April 2026.

PRINCIPAL ACTIVITY

The principal business activity of the company in the year under review was that of the repair, refurbishment, upgrading, and decarbonisation, of private and public buildings in the UK.

REVIEW OF BUSINESS

On 17th October 2025 the company changed its trading name to HLS McConnell Limited and post year end on 9th June 2026 changed its trading name to McConnell Limited.

We have delivered another solid year of growth. Turnover increased to £87.3m (from £81.6m in FY25), and our Operating Profit was stable at £2.8m. The most impressive area of growth was in our forward order book, which has increased to over £700m.

Our turnover growth was restricted by contract slippage mostly occasioned by changes in government procurement protocols and building safety regulator delays.

Our significant order book growth is a result of strategic long-term investment that has positioned McConnell to secure large scale framework and direct award contracts for planned major building refurbishment investment programmes across all sectors that we operate.

The company continues to invest for growth, and the primary investment continues to be in people. We have continued to strengthen our senior leadership and management teams, beyond our growth, to give us operational resilience and ensure our service standards.

Another significant area of investment in FY26 was in managing our ESG responsibilities. This included the creation of a bespoke CARE Impact Plan that enables us to more effectively plan, invest, and deliver, positive change for people, communities, and the environment. In 2025 we generated £12.2m* in added social and environmental value for the people and communities that we work within (*calculated using the TOMS Framework method).

The Directors are very pleased with the overall performance of the business in FY26 and would like to thank all employees, supply chain partners, advisors, and customers for their support, commitment, and loyalty.

PRINCIPAL RISKS AND UNCERTAINTIES

The company is exposed to risks and uncertainties arising from the macro-economic factors that affect the UK construction industry. Risk management is at the core of all our management processes and behaviours. Key risks and mitigation measures are identified in the table below.

Availability of Resources

- People driven approach, not numbers & target driven.

- Committed to being the Employer of Choice to attract people who align with our values.

- Treat supply chain partners fairly and be the partner of choice.

- Core of directly employed trades.

Unpredictable Cost Base

- Avoid long-term fixed price contracts.

- Risk share with Customers and Supply Chain.

- Long-term Supply Chain Agreements.

Project Safety and Quality Delivery

- Our Health & Safety Management Systems are ISO 45001 registered and approved.

- Health & Safety is the first point of order in all board meetings and is prioritised operationally.

- Quality Assured Processes and Accreditation.

- 'Golden Thread' Digital Quality Control on all key projects.

Liquidity Risk

- Active short, medium, and long-term cashflow forecasting.

- Cash reserves remain liquid.

- Significant Working Capital Loan Facility (unused in FY26).

- Owners work, and are invested, in the company.

- Majority of profits are re-invested in Company.

Credit Risk

- Majority of Customer base are Local Authority, Housing Association, other Government-Backed, or Blue-Chip

Private Sector.

- Active credit-checking and risk controls for all Customers.

- Cash reserves are not put at risk.

Inflation

- Avoid long-term fixed price projects.

- Shared risk with Customers and Supply Chain.

- Monitor regularly and adjust pricing accordingly.

Over-extending on Growth

- Regional Operating Structure gives SME-type control.

- Deeply experienced Senior Leadership Team.

- Growth is organic not acquisitive which gives us better control.

- Majority of growth is derived from securing higher value projects.

- Comprehensive and robust 'early-warning' reporting procedures.

- Service focussed and assured approach.

Ownership Risk

- The owners actively work in the business.

- No external investors, no private equity, no external shareholders.

- Empowered decision-making that leverages ownership, experience, and expertise, while maintaining the necessary level of control and accountability.

Diversification Risk

- Committed to existing markets.

- Ample headroom for growth without diversification.

- There are significant long-term future funding commitments to existing markets to meet regulatory and governmental commitments such as decarbonisation, fire remediation, cladding remediation, and increased social, welfare, and living standards.

Insurance

- We have robust, comprehensive, and suitable value, insurance policies for all key risks that are insurable.

Political & Government

- Our markets are predominantly made up of the stable cyclical financial investment required to maintain high-value property assets and are extremely resilient to political and governmental risk and change.

- We actively monitor political risk and government policy and regulation changes, and we plan and adapt to

these in a timely and measured way.

McConnell is a business that is managed and controlled by directors who are owners and are deeply experienced. The senior leadership team have all held senior leadership roles in much larger companies. In acting as hands-on experienced owners, directors, and leaders, it gives us greater empowerment, agility, and accountability, that helps us deliver a regionally focussed and assured service offering.

We are confident that McConnell remains well-placed to continue to develop and grow successfully and has excellent internal and external resilience and opportunity.

ENERGY AND CARBON REPORT

McConnell is committed to meeting its environmental and climate obligations.

Managing Environmental Impacts

McConnell is committed to taking a comprehensive approach to reducing its environmental impacts. The Company takes a continuous improvement approach to its energy and fuel usage across its operations, making significant efforts to manage our office space efficiently, and ensuring our fleet is on a long-term trajectory of emissions reduction. Through ongoing collaboration with all our stakeholders, we are looking to deliver a long-term structured programme to reduce carbon across all aspects of our operation and we are committed to meeting the Government's target of Carbon Net Zero by 2050 and will strive to deliver ahead of time. Transport emissions remain our priority area, but we consider all our transport, power, and energy options. The intention remains to invest in proven green technologies at appropriate points in the future to ensure a well-managed and credible approach to achieve our Carbon Net Zero target. McConnell also takes a proactive approach to our wider environmental impacts.

Our Environmental Management Policy shapes the way we manage our impacts on a day-to-day basis to complement our longer-term strategic approach.

McConnell has held the ISO 14001 Environmental Management Standard for 6 years

Reporting Boundary

This disclosure covers McConnell's UK operations for the period 1st May 2025 to 30th April 2026. It includes mandatory Scope 1 and Scope 2 emissions and, for the first time, all five Scope 3 categories required under PPN 006: upstream transportation and distribution, waste generated in operations, business travel, employee commuting, and downstream transportation and distribution.

FY26 therefore forms the baseline for the expanded Scope 3 reporting boundary.

Energy consumption

UK energy consumption from natural gas, purchased electricity, stationary combustion, mobile combustion and business travel was:

UK Energy Usage (kwh)

2024/25 (kwh)

2025/26 (kwh)

Natural gas

21,451.59

44,732.80

Electricity

156,792

217,134.60

Stationary Combustion

182,633.95

474,671.19

Mobile Combustion

1,784,683.61

3,300,075.07

Business travel

664,592.66

177,694.41

Totals

2,810,153.81

4,214,308.08

Greenhouse Gas emissions

Emissions are reported in tonnes of carbon dioxide equivalent, or tCO2e.

Scope/category

Emission source

FY 2024/25 tCO2e

FY 2025/26 tCO2e

Scope 1 - direct emissions

Natural gas

4.57

9.54

Stationary combustion

54.02

142.99

Mobile combustion

529.35

968.47

Scope 1 subtotal

587.94

1,120.99

Scope 2 - purchased electricity

Electricity

42.53

52.42

Scope 2 subtotal

42.53

52.42

Scope 3 - reported categories

Waste generated in operations

n/a

1,558.68

Business travel

164.79

71.89

Upstream transportation and distribution

n/a

512.62

Employee commuting

n/a

896.01

Downstream transportation and distribution

n/a

0

Scope 3 subtotal

164.79

3,039.20

Total reported emissions

795.26

4,212.62

FY26 includes additional Scope 3 categories reported for the first time, so the total footprint is not directly comparable with FY25 on a full-boundary basis.

Performance and Intensity

Measure

FY 25

FY 26

Turnover

£81.6m

£87.3m

Scope 1 and 2 intensity

7.7 tCO2e per £m

13.5 tCO2e per £m

Total emissions intensity

9.75 per tCO2e £m

48.37 tCO2e per £m

For emissions sources reported in both years, Scope 1 and Scope 2 emissions increased from 630.47 tCO2e to 1,173.42 tCO2e. This was primarily due to increased fuel consumption across company vehicles, plant and site equipment. This reflects higher project activity, a greater value of work delivered and increased uptake of company cars.

The largest FY26 emissions sources were waste generated in operations, fleet and plant fuel use, employee commuting, and upstream transportation and distribution.

Methodology

Emissions were calculated using McConnell activity data and the UK Government Conversion Factors for Company Reporting 2025, unless stated otherwise.

The standard calculation applied was:

Activity data × emission factor = kgCO2e

kgCO2e ÷ 1,000 = tCO2e

Utility records provided the natural gas and electricity data, while transaction and fuel-card records supplied fuel consumption data. Business travel information came from mileage claims, travel expenses, and booking records. Waste contractor reports and supplier portals formed the basis of the waste data. Employee commuting emissions were estimated using employee numbers and assumed travel patterns.

Upstream transportation and distribution was estimated as a first-year screening calculation using the top 20 suppliers by spend, an internally assessed freight proportion and external DEFRA spend-based factors by SIC code. These factors were adjusted to 2025 prices using the ONS Construction Output Price Index.

Downstream transportation and distribution was assessed as not applicable because McConnell does not sell physical products requiring onward distribution.

Energy efficiency and carbon reduction activity

During FY26, McConnell:

- Maintained ISO 14001-supported environmental management processes

- Strengthened monthly carbon data reporting through Goodsted

- Continued virtual meetings, controlled travel planning and local procurement

- Promoted energy awareness across offices and sites

- Reviewed fleet efficiency and increased EV and PHEV uptake where operationally suitable

Priorities for FY27 include improving waste treatment evidence, reducing fleet and plant fuel use, improving supplier transport data and strengthening employee commuting data.

A more detailed internal SECR report and calculation workbook are maintained to support this condensed disclosure.

Future prospects

Our core addressable market continues to be made up of the cyclical financial investment required to maintain and update high-value property assets, to allow them to continue to be occupied, functional, rentable, mortgageable, insurable, and leveraged. History has shown us that the building and infrastructure maintenance and refurbishment sectors are extremely resilient to political change, policy change, and recessions.

It is widely reported that the buildings in many of our sectors have suffered from under-investment over a long period of time, and there is a continued essential and growing need for building owners to invest in and improve the condition of built assets in Housing, Health, Education, Public Buildings, and Defence Infrastructure, in order to retain and improve their functionality, and protect their underlying asset value. Add to this, the mandatory requirement to reduce carbon emissions from all built form in the UK, and the national cladding and fire remediation programmes, and we consider there is a compelling resilience to our core addressable markets. We estimate that the annual spend in the UK for the maintenance and refurbishment of all buildings and infrastructure, is in the region of £15bn to £17bn. McConnell directly addresses around 75% of that expenditure by geography and work-type, and we have a very small market share of this. Even allowing for a counter-intuitive reduction in investment in our addressable markets, we still see significant opportunity for continued growth and consolidation.

We are confident that McConnell remains well-placed to continue to develop and grow successfully and has excellent internal and external resilience and opportunity

Stakeholder engagement

Our people are our most important assets and our largest area of investment. Our Company 'Why' is "to create an authentic environment where people can be the best versions of themselves, where they can blossom and reach their full potential, feeling safe and secure, achieving a healthy life balance, and enjoying their career." We actively engage with our employees directly, and through numerous interactive communication channels, including an Employee Forum that has direct access and influence with our senior leadership team. We offer competitive remuneration and enlightened benefit packages that are designed to attract and retain the best people. This year we added the benefit of direct access to world-class mental health experts for all employees and their spouses.

Our relationship with our business partners including clients, suppliers, subcontractors, and how we engage with the communities in which we work, is fundamental to our success. We have a set of Care Values and Leadership Principles that define how we conduct ourselves in these relationships, and we are rigorous in ensuring that we act in accordance with these. We have experienced and empowered leaders in the areas of Customer Experience, Social Value, Health & Safety, Supply Chain Relations, Environmental Management and Governance, and robust policies and accreditation that underpin our performance. We strive to work in an open and collaborative way with all stakeholders and build positive, long-lasting, mutually beneficial, relationships.

ON BEHALF OF THE BOARD:

Director

24th July 2026

The directors present their report with the financial statements of the company for the year ended 30th April 2026.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of building & facility refurbishment and maintenance within the retail, commercial, residential, industrial and infrastructure sectors.

DIVIDENDS

No dividends will be distributed for the year ended 30th April 2026.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st May 2025 to the date of this report.

Robert Henry McGregor

Claire Marie Roe

Jon Matthew Wallis

Other changes in directors holding office are as follows:

Eamonn McGarvey - resigned 4th August 2025

Simon Anthony Lacey - appointed 4th August 2025

John Robinson Hepburn - appointed 4th August 2025

CHARITABLE DONATIONS AND EXPENDITURE

Donations have been made in the year totalling £14,000.

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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Cook & Partners Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Robert Henry McGregor - Director

24th July 2026

Opinion

We have audited the financial statements of McConnell Limited (the 'company') for the year ended 30th April 2026 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30th April 2026 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 eight, 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.

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

Explanation as to what extent the audit was considered capable of detecting irregularities, including Fraud.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

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

Auditors approach to assessing the risks of material misstatement due to irregularities, including fraud.

Our approach was as follows:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity. The following laws and regulations are considered to be significant to the entity:

- Financial reporting Standard 102

- Companies Act 2006

- UK General Data Protection Regulation

We assessed the risks of material misstatement in respect of fraud as follows:

- Discussed the risk of material misstatement due to irregularities, including fraud with management at the planning stage to confirm that risks had been adequately identified and that the controls in place are sufficient for the size and nature of the business to reduce those risks to an acceptably low level.

- Undertook an initial analytical review of the financial statements to identify any potentially unusual or unexpected relationships or high risk audit areas.

- Completed a risk assessment checklist to aid in the identification of Risks for a company of this size and nature.

- We considered the risk of fraud through management override of controls, a common risk in a company of this size and nature, in response; we incorporated testing of manual journal entries into our audit approach and undertook a purely substantive approach to the audit with no reliance placed on controls.

- Accounting policies were reviewed at the planning stage to identify any subjective measurements or complex transactions where management would have the potential to show bias.

- Ensured all in the audit team are aware of the risks identified and particular areas that were susceptible to misstatement and during the audit planning meeting.

- Throughout the audit additional substantive testing was undertaken in areas where there was perceived to be a medium or high risk of misstatement.

- Audit testing was undertaken in a manner that was unpredictable in nature, selection and timing when compared to previous years work.

- The engagement Partners final review of the audit file and financial statements included a detailed review of all areas of medium or high risk identified at the planning stage of the audit.

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above:

- Financial reporting Standard 102, Companies Act 2006 and UK General Data Protection Regulation. The audit team all have a good understanding of the requirements under these laws and regulations common to most trading businesses and were alert throughout the audit to any potential instances of non-compliance.

- Further, at both the planning and completion stage of the audit enquiries where made of management regarding any known instances of fraud or non-compliance with laws and regulations.

- These representations were corroborated where possible through the review of board minutes and correspondence with HMRC and companies house. No contradictory evidence was noted.

We consider that the work detailed above has ensured that the likelihood of detection of irregularities including fraud is considered to be high both at management level and during our audit approach. It is however worth noting that there is an inherent difficulty in detecting irregularities and there is no guarantee that all irregularities have been identified.

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.

Mr Mark Jones FCA (Senior Statutory Auditor)

for and on behalf of Cook & Partners Limited

Statutory Auditor

Manufactory House

Bell Lane

Hertford

Hertfordshire

SG14 1BP

24th July 2026

TURNOVER

3

87,259

81,552

Cost of sales

74,108

69,332

GROSS PROFIT

13,151

12,220

Administrative expenses

10,349

9,435

2,802

2,785

Other operating income

212

90

OPERATING PROFIT

5

3,014

2,875

Interest payable and similar expenses

6

224

195

PROFIT BEFORE TAXATION

2,790

2,680

Tax on profit

7

743

505

PROFIT FOR THE FINANCIAL YEAR

2,047

2,175

Retained earnings at beginning of year

7,642

5,467

RETAINED EARNINGS AT END OF YEAR

9,689

7,642

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

2,149

2,542

2,149

2,542

CURRENT ASSETS

Stocks

10

10

10

Debtors

11

23,158

18,025

Cash at bank

7,624

10,778

30,792

28,813

CREDITORS

Amounts falling due within one year

12

21,304

21,718

NET CURRENT ASSETS

9,488

7,095

TOTAL ASSETS LESS CURRENT LIABILITIES

11,637

9,637

CREDITORS

Amounts falling due after more than one year

13

(1,655

)

(1,638

)

PROVISIONS FOR LIABILITIES

17

(218

)

(282

)

NET ASSETS

9,764

7,717

CAPITAL AND RESERVES

Called up share capital

18

75

75

Retained earnings

19

9,689

7,642

SHAREHOLDERS' FUNDS

9,764

7,717

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

Robert Henry McGregor - Director

Cash flows from operating activities

Cash generated from operations

1

(463

)

6,342

Interest paid

(9

)

(32

)

Interest element of hire purchase payments paid

(215

)

(163

)

Tax paid

(892

)

(250

)

Net cash from operating activities

(1,579

)

5,897

Cash flows from investing activities

Purchase of tangible fixed assets

(852

)

(1,682

)

Sale of tangible fixed assets

265

27

Net cash from investing activities

(587

)

(1,655

)

Cash flows from financing activities

HP capital repayments in year

(939

)

(385

)

Amount withdrawn by directors

-

(41

)

New hire purchase agreements

737

1,569

Amounts advanced by group undertakings

(786

)

(127

)

Net cash from financing activities

(988

)

1,016

(Decrease)/increase in cash and cash equivalents

(3,154

)

5,258

Cash and cash equivalents at beginning of year

2

10,778

5,520

Cash and cash equivalents at end of year

2

7,624

10,778

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

2026

2025

£'000

£'000

Profit before taxation

2,790

2,680

Depreciation charges

1,085

823

Profit on disposal of fixed assets

(105

)

(18

)

Finance costs

224

195

3,994

3,680

Increase in trade and other debtors

(4,347

)

(4,525

)

(Decrease)/increase in trade and other creditors

(110

)

7,187

Cash generated from operations

(463

)

6,342

2.	CASH AND CASH EQUIVALENTS

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

Year ended 30th April 2026

30.4.26

1.5.25

£'000

£'000

Cash and cash equivalents

7,624

10,778

Year ended 30th April 2025

30.4.25

1.5.24

£'000

£'000

Cash and cash equivalents

10,778

5,520

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.5.25

Cash flow

At 30.4.26

£'000

£'000

£'000

Net cash

Cash at bank

10,778

(3,154

)

7,624

10,778

(3,154

)

7,624

Debt

Finance leases

(2,475

)

202

(2,273

)

(2,475

)

202

(2,273

)

Total

8,303

(2,952

)

5,351

1.	STATUTORY INFORMATION

McConnell Limited is a private company, limited by shares , registered in Scotland. 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.

The financial statements have been prepared in pounds sterling which is the functional currency of the company and rounded to the nearest thousands.

The significant accounting policies applied in the preparation of these financial statements are set out below.

Preparation of consolidated financial statements

The financial statements contain information about McConnell Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its ultimate parent, McConnell Group Holdings Limited.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported as assets, liabilities, revenues and expenses for the year. The key sources of estimation uncertainty are as follows:

Depreciation and amortisation of tangible and intangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The expected lives of assets and their residual values are assessed regularly and may vary depending on a number of factors including asset life cycles, maintenance programmes etc.

Impairment of assets

Tangible fixed assets, intangible fixed assets, fixed asset investments, stock and debtors are all reviewed for evidence of impairment.

In connection with fixed assets (tangible, intangible and investments) factors taken into consideration include the economic viability and the expected future financial performance of the assets.

Trade debtors are reviewed for evidence of impairment. Factors considered include ageing, past recovery rates, customer creditworthiness, and the stage and expected outcome of any recovery proceedings.

Contract accounting

When determining the amount to include as amounts recoverable on contracts and thereby the amount of profit to recognise on individual contracts, factors such as the stage of completion and forecasted outturn of the contract are taken into account.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

The policy adopted for the recognition of turnover are as follows:

Construction contracts

When the outcome of a construction contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to agreed valuations, current and projected contract costs and expected sales value.

Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable.

When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision.

Goodwill

The company has elected not to restate any business combinations which took place prior to the transition to FRS102. Goodwill therefore includes other intangible assets (such as customer lists) which were acquired prior to the transition date.

Goodwill is measured at cost less accumulated amortisation and any accumulated impairment losses. It has been amortised evenly over its estimated useful life of twenty years.

Tangible fixed assets

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

Plant and machinery

-

25% on cost and 25% on reducing balance

Fixtures and fittings

-

33% on cost and 15% on reducing balance

Motor vehicles

-

25% on cost

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Taxation

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences. with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences.