REGISTERED NUMBER: NI041815 (Northern Ireland)

MCKELVEY CONSTRUCTION LIMITED

Strategic Report, Directors' Report and

Financial Statements for the Year Ended 31 July 2025

Page

Company Information

1

Strategic Report

2

Directors' Report

4

Independent Auditors' Report

6

Income Statement

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

Robert McKelvey

Carol McKelvey

Darren McKelvey

SECRETARY:

Carol McKelvey

REGISTERED OFFICE:

8 - 10 The Diamond

Castlederg

Co. Tyrone

BT81 7AR

REGISTERED NUMBER:

NI041815 (Northern Ireland)

INDEPENDENT AUDITORS:

Cooper Parry Audit (Ireland) Limited

Statutory Auditor

Unit 7 Dyehouse

Linen Green

Dungannon

Co. Tyrone

BT71 7HB

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

REVIEW OF BUSINESS

The principal activity of the group is that of civil engineering and building contracts.

The trading performance for the year ended 31 July 2025 is in line with expectation. The group returned a profit for the financial year of £137,542 (2024: £819,657 ) on a turnover base of £16,173,839 (2024:£10,695,198). The business remains in sound financial position at the year end with a net asset postion of £3,064,940 (2024:£3,061,398).

KEY PERFORMANCE INDICATORS

The directors consider the key performance indicators are those that communicate the financial performance and strengths as a whole, being revenue, gross profit margin and profit before tax.

The directors have provided an analysis of the key performance indicators of the business below.

The Key Performance Indicators during the year were as follows:

31/7/25

31/7/24

£

£

Revenue

16,173,839

10,695,198

Gross profit margin

4.4%

16.2%

Profit before tax

188,309

1,123,027

PRINCIPAL RISKS AND UNCERTAINTIES

The company operations expose it to a variety of risks that include inflationary risk, competition risk, economic risk, liquidity risk and interest rate cash flow risk. The company has in place a risk management programme that seeks to limit any adverse effects on the financial performance of the company.

INFLATIONARY COST PRESSURES:

Suppliers continue to be exposed to pressures created by Brexit, rising energy costs, supply chain disruption and the war in Ukraine. The business remains vigilant to the potential headwinds experiences by all aspects of the project cycle and seeks to mitigate these risks through commercial and risk management, on-going dialogue with key stakeholders, including customers and supply chains.

Competition Risk:

Competition risk comes from other building contractors and developers. The directors manage this risk by ensuring a quality service is offered to all customers.

Economic Risk:

Economic risk is inherent in the industry in which the company operates. The directors manage this risk by ensuring relationships with suppliers and subcontractors are maintained with the company having long standing relationships with such entities.

Liquidity Risk:

The company generates sufficient cashflow to ensure it has adequate available funds for operations.

Interest Rate Cash Flow Risk:

The company has both interest bearing assets and interest bearing liabilities. Interest bearing assets include cash balances which earn interest as variable rates. Interest bearing liabilities include bank overdrafts. The directors monitor interest rates on an ongoing basis.

FUTURE DEVELOPMENTS

The company is committed to long term creation of shareholder value. The economic environment continues to evolve and is making a return to relative stability. In the coming years the company aims to increase revenue and profitability. The company will continue to develop relationships with customers and suppliers and generate new work where possible while remaining highly competitive.

EMPLOYMENT POLICY

McKelvey Construction Limited depends on the skills and commitments of its employees in order to achieve its objectives. Company staff at every level are encouraged to make their fullest possible contribution to the company's success. The company's selection, training, development and promotion policies ensure equal opportunities for all employees, regardless of gender, marital status, race, age or disability.

ON BEHALF OF THE BOARD:

Robert McKelvey - Director

31 July 2026

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

PRINCIPAL ACTIVITY

The principal activity of the Company in the year under review was that of civil engineering and building contracts.

DIVIDENDS

An interim dividend of £134,000 (2024: £23,500) was paid during the year. The directors do not recommend payments of a final dividend.

DIRECTORS

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

Robert McKelvey

Carol McKelvey

Darren McKelvey

DISCLOSURE IN THE STRATEGIC REPORT

Under schedule 7.1A of "Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008" the company has elected to disclose the follow report information in the strategic report:

- Financial performance indicators;

- Principal risks and uncertainties;

- Principal activity and business review; and

- Future developments.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 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 audit business of CavanaghKelly was acquired by Cooper Parry Audit (Ireland) Limited on 24th July 2025.CavanaghKelly has resigned as auditor and Cooper Parry Audit (Ireland) Limited has been appointed in place.

The auditors, Cooper Parry Audit (Ireland) Limited, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Robert McKelvey - Director

31 July 2026

Opinion

We have audited the financial statements of McKelvey Construction Limited (the 'Company') for the year ended 31 July 2025 which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the Company's affairs as at 31 July 2025 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

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 Directors' Report.

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 Directors' Responsibilities Statement 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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation;

-

We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance;

-

We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations;

-

Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and

-

Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override.

The audit response to risks identified included:

-

Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above;

-

Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud;

-

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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 Auditors' Report.

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 an Auditors' 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.

Mr. Ryan Falls (F.C.A) (Senior Statutory Auditor)

for and on behalf of Cooper Parry Audit (Ireland) Limited

Statutory Auditor

Unit 7 Dyehouse

Linen Green

Dungannon

Co. Tyrone

BT71 7HB

31 July 2026

REVENUE

16,173,839

10,695,198

Cost of sales

(15,458,202

)

(8,965,743

)

GROSS PROFIT

715,637

1,729,455

Administrative expenses

(565,061

)

(645,758

)

150,576

1,083,697

Other operating income

15,195

10,242

OPERATING PROFIT

5

165,771

1,093,939

Finance income

32,275

48,387

198,046

1,142,326

Finance costs

6

(9,737

)

(19,299

)

PROFIT BEFORE TAXATION

188,309

1,123,027

Tax on profit

7

(50,767

)

(303,370

)

PROFIT FOR THE FINANCIAL YEAR

137,542

819,657

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

137,542

819,657

NON-CURRENT ASSETS

Property, plant and equipment

9

805,814

727,809

CURRENT ASSETS

Receivables: amounts falling due within one year

10

2,964,761

2,430,595

Cash at bank

2,757,170

2,361,085

5,721,931

4,791,680

PAYABLES

Amounts falling due within one year

11

(3,313,692

)

(2,277,355

)

NET CURRENT ASSETS

2,408,239

2,514,325

TOTAL ASSETS LESS CURRENT LIABILITIES

3,214,053

3,242,134

PAYABLES

Amounts falling due after more than one year

12

(1,594

)

(56,265

)

PROVISIONS FOR LIABILITIES

15

(147,519

)

(124,471

)

NET ASSETS

3,064,940

3,061,398

CAPITAL AND RESERVES

Called up share capital

16

3

3

Retained earnings

17

3,064,937

3,061,395

SHAREHOLDERS' FUNDS

3,064,940

3,061,398

The financial statements were approved by the Board of Directors and authorised for issue on 31 July 2026 and were signed on its behalf by:

Robert McKelvey - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 August 2023

3

2,265,238

2,265,241

Changes in equity

Dividends

-

(23,500

)

(23,500

)

Total comprehensive income

-

819,657

819,657

Balance at 31 July 2024

3

3,061,395

3,061,398

Changes in equity

Dividends

-

(134,000

)

(134,000

)

Total comprehensive income

-

137,542

137,542

Balance at 31 July 2025

3

3,064,937

3,064,940

1.	STATUTORY INFORMATION

McKelvey Construction Limited is a private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The accounts are prepared on a going concern basis and in accordance with the historical cost convention. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The financial reporting framework that has been applied in their preparation is the Companies Act 2006 (the "Act") and FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" issued by the Financial Reporting Council.

Financial Reporting Standard 102 - reduced disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of McKelvey Holdings Limited which can be obtained from Companies House.

The company has taken advantage of the following exemptions:

-

from disclosing related party transactions that are wholly within the same group under paragraph 33.1 of the provisions of FRS102, on the grounds that at 31 July 31/7/25 the company was a wholly owned subsidiary of McKelvey Holdings Limited;

-

from preparing a Statement of cash flows on the basis that it is a qualifying entity and its cash flows are included in the cash flow statement in the consolidated financial statements of its parent company; and

-

from the financial instrument disclosures required under FRS 102 paragraphs 11.41(b) to 11.48(c) and 12.26 to 12.29, as the information is provided in the consolidated financial statement disclosures.

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 in the financial statements and accompanying notes. The judgements, estimates and assumptions used in the financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results could differ from these estimates, and the effect of any change in estimates will be adjusted in the financial statements when they become reasonably

determinable. Judgements, estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under these circumstances.

Judgements

No critical judgements have been made in applying the company's accounting policies.

Estimates and Assumptions

No critical estimates have been made in applying the company's accounting policies.

Revenue

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

Property, plant and equipment and depreciation

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

4% straight line

Plant and machinery

-

20% reducing balance

Fixtures and fittings

-

20% reducing balance

Motor vehicles

-

20% reducing balance

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Financial instruments

The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed to group and related parties and are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 occuring 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 when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and overdrafts and amounts owed to group and related parties 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised at transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or loss. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expired.

(iii) Offsetting

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 an net basis or to realise the asset and settle the liability simultaneously.

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

Deferred tax

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

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

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

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.

Foreign currencies

The company's functional and presentational currency is GBP.

Transactions and Balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the date of transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-Monetary items measured at historical costs are translated using the exchange at the date of the transaction and non-monetary items measured at fair value using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit and loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Long term contracts

Turnover on long term contracts is recognised according to the stage reached in the contract by reference to the value of work done. A prudent estimate of the profit attributable to work completed is recognised once the outcome of the contract can be assessed with reasonable certainty. The amount by which turnover exceeds payments on account is shown under debtors as amount recoverable on contracts. Where payments on account exceed turnover these are shown under creditors as payments received on account.

Provisions

Provisions are recognised when the company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefit will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the same value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as interest expense.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand and deposits held at call with banks.

Share capital

Ordinary Shares are classified as equity. Incremental costs directly attributable to the issue of new

ordinary shares are shown in equity as a deduction, net of tax, from the proceeds.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and Salaries

1,058,380

939,884

Social Security costs

113,367

95,398

Other pension costs

22,861

55,955

1,194,608

1,091,237

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

2025

2024

Total number of employees

41

35

2024

2023

£

£

Directors' remuneration

103,420

45,056

5.	OPERATING PROFIT

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

31/7/25

31/7/24

£

£

Hire of plant and machinery

563,923

412,233

Rent

2,664

8,545

Depreciation - owned assets

123,794

135,940

Loss on disposal of fixed assets

-

39,131

Foreign exchange differences

48,040

(9,941

)

6.	FINANCE COSTS

31/7/25

31/7/24

£

£

Bank interest

1,484

3,282

Bank loan interest

3,761

9,536

Hire purchase interest

4,492

6,481

9,737

19,299

7.

TAXATION

Analysis of the tax charge

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

31/7/25

31/7/24

£

£

Current tax:

UK corporation tax

27,719

256,329

Deferred tax

23,048

47,041

Tax on profit

50,767

303,370

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:

31/7/25

31/7/24

£

£

Profit before tax

188,309

1,123,027

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

47,077

280,757

Effects of:

Expenses not deductible for tax purposes

575

1,845

Adjustments to tax charge in respect of previous periods

405

18,058

Non-relevant depreciation

2,710

2,710

Total tax charge

50,767

303,370

8.

DIVIDENDS

31/7/25

31/7/24

£

£

Ordinary shares shares of £1 each

Interim

134,000

23,500

9.	PROPERTY, PLANT AND EQUIPMENT

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 August 2024

473,326

843,066

21,230

201,509

1,539,131

Additions

-

71,299

-

130,500

201,799

At 31 July 2025

473,326

914,365

21,230

332,009

1,740,930

DEPRECIATION

At 1 August 2024

89,420

626,222

7,908

87,772

811,322

Charge for year

18,933

60,201

3,327

41,333

123,794

At 31 July 2025

108,353

686,423

11,235

129,105

935,116

NET BOOK VALUE

At 31 July 2025

364,973

227,942

9,995

202,904

805,814

At 31 July 2024

383,906

216,844

13,322

113,737

727,809

10.

RECEIVABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/7/25

31/7/24

£

£

Amount recoverable on contract

2,754,466

2,395,463

Other receivables

2,300

2,300

Amounts owed by related parties

-

32,832

Tax

207,995

-

2,964,761

2,430,595

Amounts owed by group and related undertakings, due within one year, are interest free, unsecured and repayable on demand.

11.

PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/7/25

31/7/24

£

£

Bank loans (see note 13)

-

51,015

Hire purchase contracts (see note 14)

15,770

28,684

Trade payables

720,136

478,445

Amounts owed to related parties

258,255

-

Tax

-

224,207

Social security and other taxes

508,440

201,031

Other payables

1,097,516

840,995

Directors' current accounts

46,625

44,370

Accruals and deferred income

666,950

408,608

3,313,692

2,277,355

Amounts owed to group and related undertakings are interest free and unsecured.