REGISTERED NUMBER: NI705095 (Northern Ireland)

MCKELVEY HOLDINGS LIMITED

Group Strategic Report, Directors' Report and

Consolidated Financial Statements for the Year Ended 31 July 2025

Page

Company Information

1

Group Strategic Report

2

Directors' Report

3

Independent Auditors' Report

5

Consolidated Income Statement

9

Consolidated Statement of Financial Position

10

Company Statement of Financial Position

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Statement of Cash Flows

14

Notes to the Consolidated Statement of Cash Flows

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

Robert McKelvey

Carol McKelvey

Darren McKelvey

REGISTERED OFFICE:

17 Carrickdartans Road

Castlederg

BT81 7NQ

REGISTERED NUMBER:

NI705095 (Northern Ireland)

INDEPENDENT AUDITORS:

Cooper Parry Audit (Ireland) Limited

Statutory Auditor

Unit 7 Dyehouse

Linen Green

Dungannon

Co. Tyrone

BT71 7HB

BANKERS:

Danske Bank

South Business Centre

45-48 High Street

Portadown

Co. Armagh

BT62 1LB

The directors present their strategic report of the Company and the Group 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 main risks from the group's operations are competition and inflationary cost pressures. The directors review and agree policies for managing each of these risks and they are summarised below.

COMPETITION RISK:

Competition risk is managed through close attention to quality, customer service and sustainable markets.

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 stakeholder, including customers and supply chains.

FUTURE DEVELOPMENTS

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

EMPLOYMENT POLICY

McKelvey Holdings Limited depends on the skills and commitments of its employees in order to achieve its objectives. Staff at every level are encouraged to make their fullest possible contribution to the group's success. The group'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 and the Group for the year ended 31 July 2025.

DIVIDENDS

Interim dividend of £134,000 (2024: £23,500) were paid during the year. The directors do not recommend payment of a final dividend (2024: Nil).

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 following directors 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 Group 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 the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	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 and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group 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 the Group 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 Group'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 Group'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 its 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 Holdings Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 July 2025 which comprise the Consolidated Income Statement, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 Group's and of the Parent Company affairs as at 31 July 2025 and of the Group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group 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 Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the Parent Company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page three, 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 Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Parent 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.

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

TURNOVER

4

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

6

165,771

1,093,939

Finance income

32,275

48,387

198,046

1,142,326

Finance costs

7

(9,737

)

(19,299

)

PROFIT BEFORE TAXATION

188,309

1,123,027

Tax on profit

8

(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

Profit attributable to:

Owners of the parent

137,542

819,657

Total comprehensive income attributable to:

Owners of the parent

137,542

819,657

NON-CURRENT ASSETS

Tangible assets

11

805,814

727,809

Investments

12

-

-

805,814

727,809

CURRENT ASSETS

Receivables: amounts falling due within one year

13

2,964,791

2,430,625

Cash at bank

2,757,170

2,361,085

5,721,961

4,791,710

PAYABLES

Amounts falling due within one year

14

(3,313,722

)

(2,277,385

)

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

15

(1,594

)

(56,265

)

PROVISIONS FOR LIABILITIES

19

(147,519

)

(124,471

)

NET ASSETS

3,064,940

3,061,398

CAPITAL AND RESERVES

Called up share capital

20

33

33

Other reserves

21

(30

)

(30

)

Retained earnings

21

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

NON-CURRENT ASSETS

Tangible assets

11

-

-

Investments

12

3

3

3

3

CURRENT ASSETS

Receivables: amounts falling due within one year

13

30

30

TOTAL ASSETS LESS CURRENT LIABILITIES

33

33

CAPITAL AND RESERVES

Called up share capital

20

33

33

SHAREHOLDERS' FUNDS

33

33

Company's profit for the financial year

134,000

23,500

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

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 August 2023

33

2,265,238

(30

)

2,265,241

Changes in equity

Dividends

-

(23,500

)

-

(23,500

)

Total comprehensive income

-

819,657

-

819,657

Balance at 31 July 2024

33

3,061,395

(30

)

3,061,398

Changes in equity

Dividends

-

(134,000

)

-

(134,000

)

Total comprehensive income

-

137,542

-

137,542

Balance at 31 July 2025

33

3,064,937

(30

)

3,064,940

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

33

-

33

Dividends

-

(23,500

)

(23,500

)

Total comprehensive income

-

23,500

23,500

Balance at 31 July 2024

33

-

33

Changes in equity

Dividends

-

(134,000

)

(134,000

)

Total comprehensive income

-

134,000

134,000

Balance at 31 July 2025

33

-

33

Cash flows from operating activities

Cash generated from operations

1

1,287,867

1,353,084

Interest paid

(5,245

)

(12,818

)

Interest element of hire purchase payments paid

(4,492

)

(6,481

)

Tax paid

(459,921

)

(127,472

)

Net cash from operating activities

818,209

1,206,313

Cash flows from investing activities

Purchase of tangible fixed assets

(201,799

)

(450,747

)

Interest received

32,275

48,387

Net cash from investing activities

(169,524

)

(402,360

)

Cash flows from financing activities

Loan repayments in year

(90,694

)

(42,298

)

Capital repayments in year

(27,906

)

(68,384

)

Equity dividends paid

(134,000

)

(23,500

)

Net cash from financing activities

(252,600

)

(134,182

)

Increase in cash and cash equivalents

396,085

669,771

Cash and cash equivalents at beginning of year

2

2,361,085

1,691,314

Cash and cash equivalents at end of year

2

2,757,170

2,361,085

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

31/7/25

31/7/24

£

£

Profit before taxation

188,309

1,123,027

Depreciation charges

123,794

135,940

Loss on disposal of fixed assets

-

39,131

Finance costs

9,737

19,299

Finance income

(32,275

)

(48,387

)

289,565

1,269,010

Decrease in stocks

-

17,450

(Increase)/decrease in trade and other debtors

(326,171

)

1,528,794

Increase/(decrease) in trade and other creditors

1,324,473

(1,462,170

)

Cash generated from operations

1,287,867

1,353,084

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 July 2025

31/7/25

1/8/24

£

£

Cash and cash equivalents

2,757,170

2,361,085

Year ended 31 July 2024

31/7/24

1/8/23

£

£

Cash and cash equivalents

2,361,085

1,691,314

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/8/24

Cash flow

At 31/7/25

£

£

£

Net cash

Cash at bank

2,361,085

396,085

2,757,170

2,361,085

396,085

2,757,170

Debt

Finance leases

(45,270

)

27,906

(17,364

)

Debts falling due within 1 year

(51,015

)

51,015

-

Debts falling due after 1 year

(39,679

)

39,679

-

(135,964

)

118,600

(17,364

)

Total

2,225,121

514,685

2,739,806

1.	STATUTORY INFORMATION

McKelvey Holdings 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 General Information page.

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 financial statements have been prepared on a going concern basis and in accordance with the historical cost convention, as explained in the accounting policies below. Historic costs 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 Standards applicable in the UK and Republic of Ireland" issued by the Financial Reporting Council.

The financial statements are prepared in sterling, which is the functioning currency of the entity.

Basis of consolidation

The group financial statements consolidate the financial statements of its subsidiary undertakings drawn up to 31 July each year. Consistent accounting policies are applied across companies within the group. The results of subsidiary undertakings sold or acquired are included in the consolidated income statement up to or from the date control passes. Intra-group sales, profits and balances are eliminated fully on consolidation. No income statement is presented for McKelvey Holdings Limited as permitted by section 408 of the Companies Act 2006.

For both the current and preceding periods, merger accounting combines the Statement of Comprehensive Income, Balance sheet and Statement of Cash Flows of all group entites on a line by line basis without adjustment to fair value but with adjustment to ensure uniformity of accounting policies. No goodwill arises on consolidation. Any excess between the share capital and consideration given is shown as a merger reserve within the shareholders' funds. Business combinations are accounted for using the purchase method.

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

a) Critical judgements in apply the entity's accounting policies

There are no critical judgements in applying the entity's accounting policies.

b) Key accounting estimates and assumptions

There are no critical accounting estimates and assumptions.

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

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 group 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 by 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 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 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 as 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 less. 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 expires.

(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 a 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 Consolidated 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand and deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within current liabilities.

Provisions

Provisions are recognised when the group 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 obligations 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 an interest expense.

Share capital

Ordinary Shares are classified as equity. Incremental costs directly attributable to the issue of the new ordinary shares are shown in equity as a deduction, net of tax, from the proceeds.

Distributions to equity holders

Dividends and other distributions to the Group's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the Company's shareholders. These amounts are recognised in the statement of changes in equity.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the Group.

All turnover is derived from the group's principal activities. No analysis of turnover is presented as the directors consider disclosure to be seriously prejudical to the interests of the company.

5.	EMPLOYEES AND DIRECTORS

Staff costs, including directors' remuneration, were as follows:

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

Directors

3

3

Production, Administration, etc.

38

32

41

35

2025

2024

£

£

Directors' remuneration

103,420

45,056

6.	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

Commissions payable

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

)