The directors present the strategic report for the year ended 31 October 2025.
In the year ended 31st October 2025, sales increased by 8.8% and there was a slight reduction in the gross profit percentage. Distribution costs increased at 17.4%, and the Group made a profit after tax of £7,230,760 (2024 - £7,337,594). The balance sheet remains strong with £31,808,521 of net assets and £12,540,154 of cash at bank. The directors are satisfied with the results.
The revenue for this financial year increased from target despite a sluggish 2025 in the UK construction sector. Construction output is forecasted to rise by 1.7% in 2026, however forecasted to only apply to certain sectors of construction including utilities infrastructure. The Group's strong pipeline will remain in 2026 servicing long established clients.
Distribution costs increased by 17.4% and more than the sales increase of 8.8% in the reporting period which led to the slight reduction in gross profit.
Purchase volume of new materials during 2025 remained low as seen in 2024 which allowed the business to optimise use of our own materials supply.
Resource Management
Improvements in both forecasting and operational planning continue to enable the business to optimise use of existing assets to minimise purchase of new materials during peak price increases.
Additionally, as the business directly employs the majority of its workforce, a structured retention and skills management strategy is in place to reduce churn and ensure operational skills are aligned to project requirements. This approach enables the Group to deploy the right skills to the right projects, improve efficiency, maintain high standards of supervision, and deliver consistent teams while also supporting cost-effective project delivery.
The Group has improved its in-house training provision under the GKR Academy and doubled the number of apprentices as its commitment to bringing more school/higher education leavers into the industry.
Commercial Risk
There is a commercial risk of non-payment of work and disputes arising from delays. However, the Group mainly works with Tier 1 contractors and have established good relationships with client commercial teams.
The Group's IMS System together with 3rd party credit check services ensures that checks are carried out on all new clients including assessing credit risk and credit limits and a selective tendering process to filter our projects of higher commercial risk.
Health & Safety Risk
Health and Safety is a significant risk to the business with both a commercial and reputational impact. The Group's strong safety record is a distinguishing factor when clients choose to work with it, and increasingly the investment in mental health and general wellbeing support is being valued.
The Group employs a competent internal team with its H&S Director being a Chartered Member of IOSH and sits on the H&S committee for the National Access and Scaffold Confederation (NASC). The H&S team continually monitor and measure the performance of all of the live projects to ensure the Group is achieving high performance.
All staff have industry recognised qualifications and are trained to be safe and competent in their role. They are also trained above industry standard through in-house training programmes within the GKR Academy which includes Risk Aversion Training in Virtual Reality.
The Group has also renewed its Professional Indemnity insurance at a value required by contractors.
Financial key performance indicators
Key performance indicators for the Group are turnover and gross margins which are regularly reported on and reviewed.
| 2025 £ | 2024 £ |
|
|
|
Turnover | 44,892,662 | 41,278,983 |
|
|
|
Gross profit margin | 47.8% | 49.2%
|
Net profit margin | 17.5% | 17.9% |
Key non-financial performance indicators
Energy usage targets are set as key non-financial performance indicators to ensure that there are continual improvements of the carbon footprint of the Group. This is measured by reviewing electricity, gas and fleet.
| 2025 kWh | 2024 kWh |
|
|
|
Electric | 109,217 | 96,559 |
Gas | 74,330 | 84,604 |
Fleet | 1,028,760 | 1,329,559 |
The directors, in line with their duties under Section 172(1) of the Companies Act 2006, act individually and collectively in the way they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole, and in doing so have regard to the stakeholders and amongst other matters the:
likely consequences of any decisions in the long-term;
interests of the Group’s employees;
need to foster the Group’s business relationships with suppliers, customers and others;
impact of the Group’s operations on the community and environment;
desirability of the Group maintaining a reputation for high standards of business conduct; and
need to act fairly as between members of the Group.
The Group’s business strategy is focussed on achieving success for the Group in the long term. This strategy considers the impact of relevant factors and stakeholder interests. The directors promote a culture of upholding the highest standards of conduct and ensures its core values are communicated to its employees and are embedded in its policies and procedures.
The directors recognise that building strong long-term relationships with its stakeholders will help deliver its strategy. The directors consider the core stakeholders to be its employees, customers, suppliers and the local communities in which it operates.
Protecting the health, safety and wellbeing of its employees and everyone who comes into contact with the business is the main priority. Furthermore, the directors are committed to a diverse and inclusive working environment and ensuring all employees have the necessary skills and training required to carry out their roles and to develop.
The Group aims to develop long term mutually beneficial relationships with its customers. The Group engages with its customers on a continuous basis which allows it to better understand their needs thus ensuring its long-term success.
The suppliers and subcontractors are integral to its operations, and the Group aims to be fair in their dealings with them and to make payment within agreed terms.
The Group remains committed to minimising its impact on the environment through continual investment in its Sustainability Programme and certified management systems and commits to reducing scope 1 and scope 2 GHG emissions 42% by 2030 from a 2022 base year, and to measure and reduce its scope 3 emissions across the value chain.
The Group commits to achieving Net Zero greenhouse gas emissions by 2045. As part of this commitment, the Group aims to reduce Scope 1, Scope 2 and Scope 3 emissions by at least 90% by 2045, from a 2022 base year, with any residual emissions managed in line with recognised best practice. These targets are aligned with science-based pathways consistent with a 1.5°C trajectory and are supported by the Group's participation in the Pledge to Net Zero initiative.
The Group manages environmental and energy performance through ISO 14001 Environmental Management and ISO 50001 Energy Management systems. In addition, the Group maintains PAS 2060 carbon neutrality for Scope 1 and Scope 2 emissions, supported by operational efficiency measures, low-carbon fuels, renewable electricity procurement, and the offsetting of residual emissions.
The Group meets Streamlined Energy and Carbon Reporting (SECR) qualification in the UK. The Group has opted to use the Operational Control boundary definition to define their carbon footprint boundary. The reporting period for the compliance is 1st November 2024 to 31st October 2025. Included within that boundary are Scope 1 & 2 emissions, together with Scope 3 emissions from gas, electricity and company fleet in the UK. The GHG Protocol Corporate Accounting & Reporting Standard and UK Governments GHG Conversion Factors for Company Reporting have been used as part of the carbon emissions calculation.
The results show that the Group's total energy use and total Greenhouse Gas (GHG) emissions amounted to 1,212,307.3 kwh and 54.7 tonnes of CO2e respectively in the 2025 financial year. The Group has selected 'tonnes of CO₂e per £m turnover' as an appropriate intensity metric for the business. This metric is used to compare performance year on year and to monitor the effectiveness of emissions reduction initiatives.
The intensity metric for the financial year 2025 was 1.2 tCO2e per million GBP revenue (m£), showing an improvement compared to 1.4 tCO2e /m£ in 2024. This reflects progress in reducing greenhouse gas emissions relative to business activity. Below is the energy consumption and GHG emissions summary outlining the year-on-year analysis:
| 2025 | 2024 |
|
|
|
Scope 1 emissions/tCO2e | 35.4 | 36 |
|
|
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Scope 2 emissions (location-based)/tCO2e | 19.3 | 20 |
|
|
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Total gross Scope 1 & Scope 2 emissions/tCO2e | 54.7 | 56 |
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|
|
Total energy consumption used to calculate about emissions (kWh) (Scope 1 & 2)
| 1,212,307 | 1,510,722 |
Turnover (£m) - G K R Scaffolding Limited | 44.84 | 41.2 |
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|
|
Intensity ratio: tCO2e (gross scope 1 & 2)/Turnover (£m)
Methodology is Tonnes of CO2 equivalent dividend by Turnover in £m | 1.2 | 1.4
|
Emissions from employee business travel for which the group does not own or control (grey fleet) (Scope 2)/tCO2e
| 0.0 | 0.0 |
Total gross Scope 1, 2 & 3 emissions/tCO2 (inc. grey fleet) | 54.7 | 56 |
|
|
|
Energy consumption used to calculate above emissions: kWh (inc. grey fleet) | 1,212,307 | 1,510,722 |
Energy Efficiency Actions
The Group will continue to reduce environmental impacts through energy efficiency, low-carbon fleet solutions, renewable electricity, circular use of materials, and engagement with suppliers, supporting continual improvement and progress toward Net Zero.
The Group is ISO 50001 accredited. As part of this accreditation, the Group has a robust and effective framework for improving energy efficiency. Continual improvement remains paramount to the Group, with short, medium, and longer-term targets established as part of retaining the Standard and demonstrating its ongoing commitment to the environment.
During the reporting period, the Group has implemented a number of energy saving initiatives to reduce associated emissions. These initiatives are discussed further in the Strategic Report under the heading Sustainability & Environment.
Listed below are examples of activities the Group has undertaken to assist in these report reductions:
Recycling of Scaffold sheeting reducing product to landfill.
Introduction of Electric Forklifts to lower Scope 1 emissions further.
Purchased 100% green electricity through Renewable Energy Guarantees of Origin (REGO).
Certification of Carbon Neutrality in July 2023.
ISO 500001: internationally recognised standard that provides a practical way to improve energy efficiency through the development of an energy management system (EnMs).
Procurement of lower thickness steel scaffold tubes (~18% lighter) therefore contributing to significant Scope 3 emission savings. Furthermore, GKR have procured re-used steel tubes, helping to eliminate emissions related to extraction of additional raw materials and thus reduce the carbon impact.
Recycled workwear and PPE items now being used across the business.
This report was approved by the board and signed on its behalf.
The directors present their annual report and financial statements for the year ended 31 October 2025.
The profit for the year, after taxation, amounted to £7,230,760 (2024: £7,377,594).
Dividends totalling £425,938 (2024: £1,892,629) have been paid during the year.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The Group's policy is to consult and discuss with employees, staff councils and at meetings, matters likely to affect employees' interests.
Clear and frequent communication has engaged employees during an unprecedented period of uncertainty.
At work, staff are regularly kept up to date with ToolBox Talks which are used to share updates on guidance for working safely and other information that impacts their work.
In typical years, bi-annual Strategy Update meetings are used for the Directors to update the whole company on business developments. These have now moved online.
The GKR Integrated Management System is also used for sharing general company information.
The Group has strong existing relationship with Tier 1 contractors in London and the South East. The strength of these relationships enables the Group to engage at pre-tender stage for key projects in the pipeline.
Account management processes ensure that processes and conversion rates are reviewed, and the engagement plan is adapted accordingly.
Based on market and internal analysis, the Group has grown a number of new key client relationships in new sectors in order to broaden the revenue base.
The Group is also an active member of Build UK, working alongside clients to address industry change initiatives and represent the specialists in the supply chain.
There have been no significant events affecting the Group since the year end.
The full Streamlined Energy and Carbon Reporting (SECR) disclosure is included under the Sustainability Information Statement of the Strategic Report.
United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and parent company, 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 for the Group's financial statements and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and parent company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the Group and parent 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 Group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of G K R Logistics Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 31 October 2025 which comprise 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 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
Other information
Opinions on other matters prescribed by the Companies Act 2006
As explained more fully in the directors' responsibilities statement, 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 is 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 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 parent company or to cease operations, or have no realistic alternative but to do so.
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, to detect material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, FRS102 and relevant tax compliance legislation;
We identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit;
The engagement partner ensured that the engagement team collectively understood the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur;
We made enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
We made enquiries of management as to actual and potential litigation and claims;
We considered the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
We performed analytical procedures to identify any unusual or unexpected relationships;
We assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;
We reviewed accounting journal entries to identify potential irregularities or indicators of management bias;
We investigated the rationale behind significant or unusual transactions;
We agreed financial statement disclosures to underlying supporting documentation;
We read the minutes of meetings of those charged with governance;
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
below.
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.
Use of our report
This report is made solely to the parent 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 parent company’s members 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The notes on pages 20 to 37 form part of these financial statements.
The notes on pages 20 to 37 form part of these financial statements.
The notes on pages 20 to 37 form part of these financial statements.
As permitted by section 408 of the 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 £415,688 (2024 - £1,892,629 profit).
The notes on pages 20 to 37 form part of these financial statements.
The notes on pages 20 to 37 form part of these financial statements.
The notes on pages 20 to 37 form part of these financial statements.
G K R Logistics Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .
The group consists of G K R Logistics Limited and all of its subsidiaries.
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 £.
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 company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company G K R Logistics Limited 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 31 October 2025. 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 and parent company have 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.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding trade discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Turnover from a contract to provide scaffolding services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of turnover can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.
Rental income
Rental income from operating leases is recognised net of Value Added Tax and is credited to profit and loss on a straight-line basis over the lease term.
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.
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.
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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
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.
Turnover from scaffolding services
Turnover from scaffolding services provided is recognised based on management's estimate of the stage
of completion of the contract to provide such services. In preparing this estimate, management review
the independent certification of work done, the progress of work against contracted timescales and the
costs incurred against the budget, including reviews of the anticipated final result of the contracts. The
Company has control and review procedures in place to monitor and evaluate the estimates being made
to ensure that they are consistent and appropriate. These are included in accrued income which is
£6,446,351 (2024: £6,784,313).
Doubtful debts and variations of scope
Accrued income from scaffolding services includes variations to the original scope of contracted work
which are not always agreed in advance. As such, some of this work is not always recoverable and
management only include an estimate of the value expected to be realised within accrued income. This is
estimated by calculating the full turnover relating to the valuations and including a provision for the
element that is not recoverable. Management apply judgement to this provision using their experience of
similar variations completed in the past and their knowledge of ongoing relationships with their
customers. The value of the holdback provision included within the accounts is £2,241,184 (2024:
£944,000).
Useful economic life of plant and machinery
Plant and machinery includes scaffolding materials which are purchased in bulk and often are modified
during their use. Due to this the useful economic life is constantly changing and therefore management
apply their judgement to depreciate the remaining assets. Management apply an estimated useful life of 5
years, with a residual value of nil and consider that all scaffolding equipment would either have been
destroyed or need to be replaced by the end of this 5 year period. The net book value of plant and
machinery is £7,444,490 (2024: £8,724,870).
An analysis of turnover by class of business is as follows:
All turnover arose within the United Kingdom.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
The directors have valued the investment properties at an open market value based on their existing usage. An independent external valuation was obtained for the purposes of these financial statements.
Details of the company's subsidiaries at 31 October 2025 are as follows:
The following are the major deferred tax liabilities and assets recognised by the group and company:
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 Ordinary Class A shares have full voting, dividend and capital distribution rights. The Ordinary Class B and C shares have dividend rights only.
Fair value reserve
The cumulative revaluations gains and losses in respect of investment properties.
Share capital
This represents the nominal value of shares that have been issued by the Company.
Profit and loss account
The profit and loss account comprises all current and prior period retained profits and losses.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year the Group incurred management charges of £780,952 (2024: £504,216) plus VAT by G K & Y Rowswell Partnership, a partnership in which all the directors of the Company are partners. During the year the Group paid £480,000 (2024: £504,216) in respect of these costs.
In addition, the Group advanced loans and paid expenses on behalf of the partnership totalling £83,201(2024: £103,876) and received £28,484 (2024: £76,491) in repayments. At the balance sheet date the Group was owed £117,715 (2024: £62,998) by the partnership and is included in other debtors.
The Group loaned £20,670 (2024: £0) to a related party in the year. At the balance sheet date £20,670 (2024: £0) was outstanding.
Key management personnel compensation was £1,147,330 (2024: £1,267,701) in total.
Dividends totalling £425,938 (2024 - £1,892,629) were paid in the year in respect of shares held by the company's directors.
Interest free loans have been granted by the group to its directors as follows: