The directors present the strategic report for the period ended 1 February 2026.
The financial results for the group show a profit after tax of £3,242,000 (2025: loss of £259,000).
The period ended 1 February 2026 has seen a continued improvement in the performance of the Group. This is reflected within the trading companies results.
Muir Construction Limited has had another successful year, securing a number of contracts across a varying range of industries. Margins within the sector continue to be low, with the impact of cost inflation, lack of supply and skilled labour shortages increasing costs. The company has continued to drive efficiencies whilst maintaining a high level of customer satisfaction.
Within the current economic climate, 2026/27 will continue to be challenging. However, Muir Construction Limited is looking to further enhance its reputation for quality and customer excellence and continue to deliver profits.
Muir Homes Limited’s results continue to be impacted by the challenging economic climate impacting the housebuilding industry, in particular high and restricted mortgage rates which have dented customer confidence and purchasing power. During the year, the company continued to tackle these challenges head on, streamlining process and procedures, achieving best value through the supply chain and managing overheads. This has resulted in the company returning an increased gross profit and a much reduced loss after tax.
Looking ahead the Muir Homes Limited’s objective is to return to profitability and sustained long-term growth. Current forecasts indicate that Muir Homes Limited’s results will continue to show significant improvement during 2026/27.
Muir Timber Systems Limited’s results have been impacted, similarly to Muir Homes Limited, by the challenging economic climate impacting the housebuilding industry. This slowdown has meant reduced margins and a reduced turnover. 2026/27 looks like it will continue to present challenges across the market.
Hermiston Securities Limited's results were positive in the period with an adequate supply of sites for future development, although, as above, demand is likely to be affected by the slowdown in the economy.
Muir Leisure Limited’s results have been impacted by the continued squeeze on disposable income, coupled with sizeable increases in employment, food and energy costs severely impacting margins. It is anticipated that 2026/27 will be another challenging year.
As a Group, we are well positioned to deal with the current challenges as well as embrace the opportunities that the current market conditions present. We will continue to focus on delivering excellence across the portfolio of companies whist maintaining a drive for efficiency and value for money.
For the director's consideration of Going Concern see note 1.
The key business risks affecting the group are:
Contracting - the group is susceptible to the market conditions driving new property demand.
Private housing - the principal risk relates to the future supply of consented land. Whilst the group has an adequate supply of plots with planning and a strategy to enhance this position, the planning process remains unpredictable and torpid. In addition, increased taxes on higher value housing increases risk and uncertainty.
Property development - the risks inherent in development remain high with higher funding costs, planning uncertainty, increased demands from planning authorities and increased competition for sites. To mitigate some of these, the group continues to invest in long-term land, maintains robust risk management processes and targets key personnel.
Key personnel - the group performance is at risk if it fails to retain or recruit key employees. The group has in place first class remuneration, benefits and incentive packages along with personal development and training plans.
The group is committed to hosting annual supply chain seminars within each company to raise awareness of Health and Safety issues and recent developments.
Sales Pipeline
The group has a healthy supply of existing contracts and quotations through 2026 and into 2027.
Environmental
As part of our ESG plan, the group is moving towards the provision of electric company vehicles as standard. On our Construction and Homes sites, recycled materials are used wherever practical.
The board is responsible for the group's system of internal control and for reviewing its effectiveness. The board further acknowledges its responsibility to establish, maintain and monitor a system of internal controls relating to operational, financial and compliance matters and risk management. The subsidiary boards also review these risks relating to their specific activities.
The Board of Directors are bound by their duties under the Companies act 2006 to “act in good faith to promote the success of the group for the benefit of its members, considering various stakeholder interests”.
The group's aim is to build sustained profits in an ethical manner over the long term. It aims to achieve this by delivering high quality projects that are completed on time and within budget. This can only be achieved by a highly motivated and well trained workforce working in collaboration with clients, supply chain partners, local communities and other stakeholders. All this is done in a way that is good for our environment
Below we identify our key stakeholder groups, their interests and how we engage with them.
Stakeholder | Interest | How we engage |
Shareholders | Company performance; Sustainable Growth; Profitability; ESG Strategy; Risks and opportunities.
| Board updates provided to Shareholders from Chairman; Regular Shareholder meetings where key risks and opportunities are reported. |
Employees | Appropriately rewarded; Job security; Opportunities; Training; Health, Safety and wellbeing; Inclusion and diversity. | Regular 1-2-1 meetings with employees via PDR process; Employee roadshows; Direct engagement through Director and Senior Management visits; Bonus and benefits rewards package. |
Customers | Affordability; Quality; Energy Efficiency; Customer Service. | Customer satisfaction survey; Internal satisfaction survey; Regular customer contact; Website; Social media; School and community engagement. |
Subcontractors and Supply Chain | Health, Safety and wellbeing of their employees; Continuity of work; Timeous payment; Waste and carbon reduction. | Regular/scheduled supplier and contractor meetings; Supply seminars. |
Communities | Placemaking and Green Space; Disruption; Health and Safety; Charitable donations. | Community meetings; School engagement; Social media. |
Banks | Company performance; ESG. | Regular meetings with banks; Proactive liaison. |
Legal and Regulatory | Sustainability; Placeholding; Biodiversity; Health and Safety; Quality. | Proactive liaison with SEPA, HSE and other enforcement bodies; Site visits. |
The shareholding of Muir Group Plc is vested in the Muir family and the family maintain a very active role in the management of the business and engagement with the requisite stakeholders.
In making decisions management and the board consider if these decisions are connected to the group's purpose, aligned to the business model and overall strategy while considering relevant risks and opportunities and consider how different stakeholders will be impacted. The Muir group conducts monthly board meetings which are attended by the full group board which include shareholders.
The over-riding objective is to deliver sustained growth in shareholder value through organic growth, achieved alongside implementing best practice in health & safety, employee development, environmental improvement and creditor payment policies.
In addition, it is planned to increase the volume of business with partner clients and subcontractors whilst maintaining the competitive edge required in the tender market.
As a group we also continue to identify training requirements across all grades and roles supporting training and development needs of staff.
By order of the board
The directors present their annual report and financial statements for the period ended 1 February 2026.
The results for the period are set out on page 12.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
During the 52 week period the group made charitable donations of £13,000 (2025: £2,000).
The group places considerable value on engagement with its clients and supply chain.
The directors, senior management and business development teams meet clients and potential clients on a regular basis. In contracting and joinery, contracts are either bid via tenders or negotiated with clients by senior management and business development directors. Housing and development land purchases are targeted and, wherever possible, deals are negotiated with land owners and/or their agents.
The majority of supply chain procurement is via subcontractors and directors and senior managers undertake regular engagement with all current and potential subcontractors.
In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the group will be put at a General Meeting.
Muir Group plc emissions and use data for the 52 week period ended 1 February 2026:
No other energy purchased or used other than UK and offshore i.e. no global energy.
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Protocol Corporate Accounting and Reporting Standard and have used the 2025 UK Government’s BEIS Conversion Factors for Company Reporting.
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee.
We have installed solar panels on our factory roof, installed new efficient thermostatically controlled radiators in the head office and adopted video conferencing for staff meetings to reduce the need for travel.
We have audited the financial statements of Muir Group Plc (the 'company') and its subsidiaries (the 'group') for the period ended 1 February 2026 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 the 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).
Basis for 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 or 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
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 period 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.
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.
Extent to which 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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the group and the company, their activities, their control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the group and the company are complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the group and the company that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the group and the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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, as a body, 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 company and the company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
The notes on pages 19 to 45 form part of these financial statements.
The notes on pages 19 to 45 form part of these financial statements.
The notes on pages 19 to 45 form part of these financial statements.
The notes on pages 19 to 45 form part of these financial statements.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £nil (2025 - £nil).
The notes on pages 19 to 45 form part of these financial statements.
The notes on pages 19 to 45 form part of these financial statements.
The notes on pages 19 to 45 form part of these financial statements.
Muir Group Plc (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Muir House, Belleknowes Industrial Estate, Inverkeithing, Fife, KY11 1HY.
The group consists of Muir Group Plc and all of its subsidiaries.
The accounting reference date for the company is 31 January. The directors prepare the financial statements for each financial year to the nearest Sunday to 31 January. Therefore, the current financial year used was the 52 week period ended 1 February 2026. The comparative year was the 52 week period ended 2 February 2025.
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 company. Monetary amounts in these financial statements are rounded to the nearest £'000.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The parent company is included in the consolidated financial statements and is considered to be a qualifying entity under FRS102 paragraphs 1.8 to 1.12. The following exemptions available under FRS102 in respect of certain disclosures for the parent company financial statements have been applied:
No separate parent company Cash Flow Statement with related notes is included;
Key Management Personnel compensation has not been included a second time; and
The disclosures required by FRS102.11 Basic Financial Instruments and FRS102.12 Other Financial Instrument Issues in respect of financial instruments not falling within fair value accounting rules of Paragraph 36(4) of Schedule 1.
The consolidated group financial statements consist of the financial statements of the parent company Muir Group Plc 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 1 February 2026. 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.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons. The group had net assets of £89,175,000 including cash of £21,380,000 at 1 February 2026. The group recorded a profit after tax for the period then ended of £3,242,000.
The directors have prepared a going concern assessment for a period covering at least 12 months from the date of approval of these financial statements which indicate that, taking account of reasonably possible downsides and the anticipated impact of wider economic uncertainty, on the operations and its financial resources, the group and company will have sufficient funds to meet its liabilities as they fall due for that period. Reasonably possible downsides evaluated include reduced housing unit sales and construction activity within Muir Homes Limited and Muir Construction Limited respectively, with consequential impacts on other subsidiaries in the group with which those companies have intergroup trading.
Consequently, the directors are confident that the group and company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
Turnover represents the invoiced value of sales, rental income received and, in respect of long term contracts, work done.
In contracting, turnover for contracts is stated at the cost appropriate to the valuation of the costs performed plus attributable profits, less amounts recognised in previous periods. The amount of profit attributable to the valuation of a long-term contract is recognised when the outcome of the contract can be foreseen with reasonable certainty. Provision is made for any losses as soon as they are foreseen. The group determines the valuation of a transaction or contract through performing surveys of the work performed to date. Contract work in progress is stated at costs incurred, less those transferred to the profit and loss account, after deducting foreseeable losses and payments on account not matched with turnover. Amounts recoverable on contracts are included in debtors and represent turnover recognised in excess of payments on account.
In house building, turnover represents house sales during the period including social housing. The point of sale is the date on which the purchaser takes possession of the house.
In property development, turnover represents the sale of land and completed developments and is recognised when title to the land/development has been passed to the purchaser.
Where there is rental income this is recognised in the period that it relates.
In leisure, turnover represents bar and restaurant takings, subscriptions and amounts charged for the use of sporting facilities. All takings are recognised on delivery of goods and services. Subscription income is received annually in advance or monthly by direct debit and is recognised on a straight-line basis over the period.
In manufactured joinery, turnover represents the value of work manufactured and delivered. On larger contracts, only the portion of the contract value that is manufactured and delivered is recognised, subject to any impairment losses. Provision is made for any losses as soon as they are foreseen.
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.
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.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
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 company 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.
The group 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 instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors 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 financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Interest receivable and similar income include interest receivable on funds invested and net finance income on the defined benefit pension asset. Interest income is recognised in profit or loss as they accrue, using the effective interest method.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Interest payable and similar charges include interest payable and net finance charges on the defined pension liability. Interest payable is recognised in profit or loss as they accrue, using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
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 carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
Dividends on shares presented within shareholders' funds
Dividend income is recognised in the profit and loss account on the date the company's right to receive payment is established.
Dividends unpaid at the balance sheet date are only recognised as a liability at that date to the extent that they are appropriately authorised and are no longer at the discretion of the company. Unpaid dividends that do not meet these criteria are disclosed in the notes to the financial statements.
Contingent liabilities
In order to discharge liabilities with local authorities for the construction of roads and to meet commercial obligations in respect of housing and building contracting, the group is required to put in place contract performance securities until such time as the local authority confirms the liability is discharged or in the case of commercial contracts, the contract has reached practical completion.
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.
The final salary pension scheme is valued in these accounts by an independent actuary. The assumptions used by the independent actuary are reviewed by the directors against relevant benchmarks to ensure that the assumptions used are appropriate.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The gross amount due from customers for contract work is recorded as the net amount of cost incurred plus recognised profits less: the sum on recognised losses and progress billings, for all contracts in progress for which progress billings exceed costs incurred plus recognised profits (less recognised losses).
The group estimates the outcome of its construction contracts. This is normally measured by surveys of the work performed to date, through valuation of works completed.
Estimated total contract costs are based on management’s detailed budgets and projections which are reviewed monthly. Where management judge that 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 they will be recoverable.
The requirement to provide against foreseeable losses and costs relating to contracts ongoing at the year end. This is essentially the accruals concept of accounting which is a fundamental principle of FRS 102.
Land and development work in progress stocks are stated at the lower of cost and net realisable value. The company allocates site wide development costs such as infrastructure between units being built and completed in the current period and those in future periods. This estimate is reflected in the margin recognised on developments and in the carrying value of land and work in progress. Whilst there is a degree of uncertainty in making this estimate, reviews are carried out monthly on the carrying value of stock.
As described in note 1 investment properties are held at fair value. The investment property portfolio is valued by directors based on the estimated yield for each property taking account of unexpired lease terms, market rent and tenant covenant and any valuation movement will be reflected in the profit and loss account. Changes to any of the above can have a significant impact on the fair value, resulting in inherent volatility in the expected results.
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.
All turnover is earned in the United Kingdom.
The average monthly number of persons (including directors) employed by the group and company during the period was:
Their aggregate remuneration comprised:
The directors of the group are deemed to be key management personnel. The total remuneration including employer's NI is £1,685,000 (2025: £989,000)
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2025 - 3).
The actual (credit)/charge for the period can be reconciled to the expected charge for the period 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:
Investment properties with a value of £31,772,000 (2025: £31,772,000) were valued on an open market value
basis by the directors and any movements reflected in the profit and loss.
This historic cost of the investment properties £29,735,000 (2025: £29,735,000).
Fair value calculations are based on current and ongoing market analysis across the property portfolio,
including rent and net initial yield. Sensitivities of assumption includes analysis between current income, the
estimated rent value and prevailing market conditions
Details of the company's subsidiaries at 1 February 2026 are as follows:
Details of joint ventures at 1 February 2026 are as follows:
The loss of the joint venture for the 52 week period to 1 February 2026 is £360,000.The net liability position at 1 February 2026 is £611,000.
The group operates a shared equity scheme to assist prospective homeowners with their house purchase. The terms of the scheme are such that the group provides up to but not exceeding a 25% loan to the customer which is required to be repaid within 10 years of the house purchase. The loan to the customer is secured via a second ranking security over the property.
Included within other debtors are amounts due from related companies of £7,628,000 (2025: £3,305,000), which are payable on demand.
The long-term loans are secured by fixed charges held by The Royal Bank of Scotland Plc on one of the investment properties. The loan is repayable in full by 19 October 2026. The interest rate on the loan is 1.8% plus the Compound Reference Rate (CRR).
The provision represents Muir Group's obligation to meet its share of the cumulative losses in Scarborough Muir Group Limited, a joint venture in which Muir Group Plc holds 45% of the ordinary share capital.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The scheme is a UK based defined benefit scheme, providing benefits at retirement and death. The scheme was closed to further accrual on 30 April 2006.
The information disclosed below is in respect of the whole of the plans for the group, for which the Parent is legally responsible.
During the year, contributions of £nil (2025: £396,000) were paid to the scheme. This is included in the movement in the fair value of the defined benefit pension scheme.
The last full actuarial valuation was performed on 30 April 2023.
Assumed life expectations on retirement at age 65:
In valuing the liabilities of the pension fund at 1 February 2026, mortality assumptions have been made as indicated above.
The assumptions relating to longevity underlying the pension liabilities at the balance sheet date are based on standard actuarial mortality tables and include an allowance for future improvements in longevity. The assumptions are equivalent to expecting a 65-year old to live for a number of years.
The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:
Amounts recognised in the profit and loss account
Amounts taken to other comprehensive income
Movements in the present value of defined benefit obligations
The defined benefit obligations arise from plans which are wholly or partly funded.
Movements in the fair value of plan assets
Fair value of plan assets at the reporting period end
The holders of ordinary shares are entitled to recieve dividends as declared from time to time and are entitled to one vote per share at meetings of the company.
Dividends
After the balance sheet date, no dividends have been proposed (2025: £nil) by the directors.
Prior to 1 January 2004, certain significant business combinations were accounted for using the 'pooling of interests method' (or merger accounting), which treats the merged group as if they had been combined throughout the current and comparative accounting periods. Merger accounting principles for these combinations give rise to a merger reserves in the consolidated balance sheet, being the difference between the nominal value of new shares issued by the parent company for the acquisition of the shares of the subsidiary and the subsidiary's own share capital and share premium account.
As described in Note 1 Investment properties are recognised initially at cost. Subsequent to initial recognition investment properties whose fair value can be measured reliably without undue cost or effort are held at fair value. Any gains or losses arising from changes in the fair value less any deferred tax are recognised in profit or loss in the period that they arise. A transfer is made from the profit or loss reserve to a revaluation reserve to reflect revaluation gains which are in excess of revaluation decreases previously recognised in profit or loss.
The profit and loss reserve is the accumulated profit and losses of the group.
The largest single or connected tenant at the period end accounts for 88% (2025: 88%) of the passing rent.
At the reporting end date the group had contracted with tenants for the following minimum lease payments:
During the period the group entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
The amounts owed by related parties are payable on demand unless overwritten by the banking covenant in relation to the bank loan.
Subsidiary undertakings have given indemnities amounting to £15,994,000 (2025: £13,126,000) in respect of contract performance bonds issued by banks.