REGISTERED NUMBER: 03328830 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

FOR

OPTIMA INSTALLATIONS LIMITED

Page

Company Information

1

Strategic Report

2

to

4

Report of the Directors

5

Report of the Independent Auditors

6

to

9

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Statement of Cash Flows

14

Notes to the Financial Statements

15

to

24

DIRECTORS:

Mr N W Caley

Mr D J P Crowley

SECRETARY:

Mr N W Caley

REGISTERED OFFICE:

First Floor North

40 Oxford Road

High Wycombe

Buckinghamshire

HP11 2EE

REGISTERED NUMBER:

03328830 (England and Wales)

AUDITORS:

Seymour Taylor Limited, Statutory Auditor

First Floor North

40 Oxford Road

High Wycombe

Buckinghamshire

HP11 2EE

BANKERS:

Barclays Bank plc

1 Churchill Place

London

E14 5HP

The directors present their strategic report for the year ended 31 January 2026.

GROUP STRUCTURE AND PRINCIPAL ACTIVITIES

Optima Installations Limited is a wholly-owned subsidiary of Optima Contracting Limited. Its principal activity is the provision of skilled labour to the construction industry.

REVIEW OF THE BUSINESS

The results for the period and financial position of the business are as shown in the annexed financial statements.

Key Performance Indicators

The Company operates a number of Key Performance Indicators (KPI) to monitor and control the business which are measured and reviewed by the management on a regular basis. The KPI include but are not limited to:

31 January 2026

31 January 2025

Turnover

£5.1m

£4.5m

Gross Profit %

11.3%

12.7%

Operating Profit

£0.2m

£0.2m

Debtors

£0.9m

£0.7m

Cash at bank and in hand

£0.8m

£0.8m

All work in progress is monitored and reviewed on a regular basis to ensure the successful progress of each contract.

Review of the Business

The Company continued to perform strongly during the year, with turnover increasing to £5.1 million from £4.5 million in the previous year. This growth was achieved despite ongoing challenges within the construction sector. Gross profit margin reduced to 11.3% (2025: 12.7%), reflecting the mix of projects undertaken during the year together with continued pricing pressures across the industry. Cash balances were maintained at £0.8 million, providing a solid foundation for future operations.

Future Strategy

We began 2026 with a strong order book and prospects for the remainder of the year are encouraging. We continue to drive our staff recruitment objectives to ensure our quality standards and strong market reputation are maintained and are gradually increasing our business activities in the North of England and Scotland.

PRINCIPAL RISKS AND UNCERTAINTIES

Key risk factors

In line with our internal control policy and procedures, key risk factors are reviewed frequently and detailed analysis undertaken where there is a requirement to do so. Mitigating controls or plans are implemented where necessary and during the year ended 31 January 2026 no significant risks materialised within the business.

Credit risk

Company credit policy requires that suitable credit checks be carried out on all potential customers before quotations are submitted and again before an order is accepted to ensure that appropriate payment terms are negotiated. Company exposure to individual organisations is regularly monitored and reviewed to ensure that an acceptable level of risk is maintained.

Cyber security risk

As our business, suppliers and customers become increasingly digitalised, we are inherently exposed to the risk that third parties may seek to disrupt our business. A cyber event may cause significant reputational and financial loss. We have mitigated this risk by creating a secure and robust IT environment with systems that are Cyber Essentials Plus certified and partnering with a third-party security operation centre to proactively monitor and respond to emerging cyber security threats.

Health, Safety, and Quality

We are wholly committed to ensuring the health, safety, and welfare of all our employees and recognise our responsibility towards other people who may be affected by our activities.

Our office and site installations operate an Integrated Management System (IMS) that is independently certified to ISO 45001, 9001 and 14001; for Health and Safety, Quality and Environmental management respectively. We undertake an annual process of identifying the internal and external issues affecting the business; understanding the needs and expectations of our interested parties; and assessing our significant environmental impacts and operational hazards. This informs the process of setting business-aligned objectives; measuring performance; and developing and implementing actions to address opportunities for continual systematic improvement.

As part of our commitment, we are proud to have received the RoSPA gold medal, in their prestigious health and safety awards programme, which demonstrates continuous high standards for more than ten years.

Environment and Sustainability

At Optima we know that reducing the environmental impact of our business activities is essential to reduce the physical and financial risk of our operations. Consequently, this is key to our operational agenda.

As part of the Optima Group of companies in the UK, we have developed our own NZC Strategy and set SBTi-validated near-term science-based reduction targets of 42% for Scope 1 and 2 emissions. With a further commitment to measure and reduce Scope 3 emissions. We are undertaking actions to measure, report to recognised standards and minimise greenhouse gas emissions throughout the business and operations.

The Optima Group recognises the importance of strong Corporate Social Responsibility to meet the needs of our clients and the communities we operate in. Using the United Nations Sustainable Development Goals and recognised social value frameworks as guidance, Optima's CSR committee of internal stakeholders undertake extra-curricular, fundraising, volunteering, wellbeing and awareness initiatives with the support of our staff. Optima reports progress towards CSR objectives and promotes the activities it supports annually.

CULTURE AND EMPLOYEES

Diversity and Inclusion

We are committed to promoting equal employment opportunities and both job applicants and employees will receive equal treatment regardless of age, disability, gender reassignment, marital or civil partner status, pregnancy or maternity, race, colour, nationality, ethnic or national origin, religion or belief, sex or sexual orientation (protected characteristics). This includes opportunities for training to upskill employees and provide pathways for career development. We will make any appropriate reasonable adjustments necessary to support and retain our employees.

We are proud to benefit from having a diverse workforce and we provide opportunities for training and advancement for all.

Our Employee Handbook contains up to date policies including equal opportunities, anti-harassment & bullying, whistleblowing, flexible working and training & development. Awareness training has been rolled out to support the Employee Handbook and to ensure understanding of key issues. Compulsory training includes the topics of modern slavery, whistleblowing and HR compliance (anti-bribery, equality and diversity, bullying and harassment, wellbeing).

Communication and Engagement

We provide an open environment for employees to engage with the business through employee briefings, regular team meetings, individual appraisals, one-to-one meetings and regular communication from the Board on business performance and direction. We conducted an employee engagement survey and have implemented some changes as a direct result of feedback from employees (e.g. an improved appraisal process, additional annual leave for long serving employees and more social activities).

STREAMLINED ENERGY AND CARBON REPORTING

Disclosure in respect of greenhouse gas emissions, energy consumption and energy efficiency has not been included within this report as the company does not exceed the thresholds to disclose.

ON BEHALF OF THE BOARD:

Mr N W Caley - Director

31 July 2026

The directors present their report with the financial statements of the company for the year ended 31 January 2026.

DIVIDENDS

No dividends will be distributed for the year ended 31 January 2026.

DIRECTORS

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

Mr N W Caley

Mr D J P Crowley

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Seymour Taylor Limited, Statutory Auditor, will be re-appointed in accordance with section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Mr N W Caley - Director

31 July 2026

Opinion

We have audited the financial statements of Optima Installations Limited (the 'company') for the year ended 31 January 2026 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the 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 company's affairs as at 31 January 2026 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

Identifying and assessing potential risks related to irregularities

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

- the nature of the industry and sector, control environment and business performance including the design of the Group's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets;

- results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- any matters we identified having obtained and reviewed the Group's documentation of their policies and procedures relating to: - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group's ability to operate.

Audit response to risks identified

As a result of performing the above, our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management and external legal advisors concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- reading minutes of meetings of those charged with governance;

- obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and

- 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 indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Timothy Fulker BSc FCA (Senior Statutory Auditor)

for and on behalf of Seymour Taylor Limited, Statutory Auditor

First Floor North

40 Oxford Road

High Wycombe

Buckinghamshire

HP11 2EE

31 July 2026

TURNOVER

3

5,121,252

4,488,962

Cost of sales

4,541,436

3,921,055

GROSS PROFIT

579,816

567,907

Administrative expenses

435,428

373,966

144,388

193,941

Other operating income

4

32,069

30,000

OPERATING PROFIT and

PROFIT BEFORE TAXATION

176,457

223,941

Tax on profit

7

46,838

60,004

PROFIT FOR THE FINANCIAL YEAR

129,619

163,937

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

129,619

163,937

FIXED ASSETS

Tangible assets

8

26,916

7,856

CURRENT ASSETS

Stocks

9

1,046,953

917,689

Debtors

10

883,771

669,598

Cash at bank

765,735

784,977

2,696,459

2,372,264

CREDITORS

Amounts falling due within one year

11

726,382

509,518

NET CURRENT ASSETS

1,970,077

1,862,746

TOTAL ASSETS LESS CURRENT LIABILITIES

1,996,993

1,870,602

CREDITORS

Amounts falling due after more than one year

12

(1,555

)

(1,485

)

PROVISIONS FOR LIABILITIES

13

(4,690

)

(7,988

)

NET ASSETS

1,990,748

1,861,129

CAPITAL AND RESERVES

Called up share capital

14

5,500

5,500

Capital redemption reserve

15

4,500

4,500

Retained earnings

15

1,980,748

1,851,129

SHAREHOLDERS' FUNDS

1,990,748

1,861,129

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:

Mr N W Caley - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 February 2024

5,500

1,687,192

4,500

1,697,192

Changes in equity

Total comprehensive income

-

163,937

-

163,937

Balance at 31 January 2025

5,500

1,851,129

4,500

1,861,129

Changes in equity

Total comprehensive income

-

129,619

-

129,619

Balance at 31 January 2026

5,500

1,980,748

4,500

1,990,748

Cash flows from operating activities

Cash generated from operations

1

70,089

93,350

Interest paid

-

(3,518

)

Tax paid

(61,114

)

(53,613

)

Net cash from operating activities

8,975

36,219

Cash flows from investing activities

Purchase of tangible fixed assets

(28,717

)

(4,148

)

Sale of tangible fixed assets

500

-

Net cash from investing activities

(28,217

)

(4,148

)

(Decrease)/increase in cash and cash equivalents

(19,242

)

32,071

Cash and cash equivalents at beginning of year

2

784,977

752,906

Cash and cash equivalents at end of year

2

765,735

784,977

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

2026

2025

£

£

Profit before taxation

176,457

223,941

Depreciation charges

9,657

9,835

(Profit)/loss on disposal of fixed assets

(500

)

2,388

Provision for future losses

(7,522

)

4,112

Interest paid

-

3,518

178,092

243,794

Increase in stocks

(129,264

)

(46,551

)

Increase in trade and other debtors

(214,173

)

(9,088

)

Increase/(decrease) in trade and other creditors

235,434

(94,805

)

Cash generated from operations

70,089

93,350

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 January 2026

31.1.26

1.2.25

£

£

Cash and cash equivalents

765,735

784,977

Year ended 31 January 2025

31.1.25

1.2.24

£

£

Cash and cash equivalents

784,977

752,906

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.2.25

Cash flow

At 31.1.26

£

£

£

Net cash

Cash at bank

784,977

(19,242

)

765,735

784,977

(19,242

)

765,735

Total

784,977

(19,242

)

765,735

1.	GENERAL INFORMATION

Optima Installations Limited is a company limited by shares and incorporated in England and Wales. The Registered Office is First Floor North, 40 Oxford Road, High Wycombe, Buckinghamshire, HP11 2EE. The principal place of business is Courtyard House, West End Road, High Wycombe, Buckinghamshire, HP11 2QB. The principal activity of the company during the year was that of the provision of skilled labour to the construction industry.

The presentation currency of these financial statements is sterling (£), being the currency of the primary economic environment in which the company operates, its functional currency. All amounts in the financial statements have been rounded to the nearest £1 unless otherwise stated.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of the financial statements. If in the future such estimates and assumptions, which are based on management's best judgement at the date of the financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change.

Turnover and margin recognition

The company's turnover and margin recognition policies are central to how the company values the work it has carried out each year.

These policies require forecasts to be made of the outcomes of construction and service contracts, which require assessments and judgements to be made on contract programmes; changes in the scope of work; and changes in costs

Management bases its judgements of costs and turnover and its assessment of the expected outcome of each contract on the latest available information. This information includes detailed contract valuations and forecasts of the costs to complete. The estimates of the contract positions and the profit or loss earned to date are updated regularly and significant changes are highlighted through established internal review procedures. The impact of any change in the accounting estimates is then reflected in the financial statements.

Stock provisioning

Stocks are carried at the lower of cost and net realisable value. Management review stock for evidence of impairment and make due allowance in respect of items identified as being impaired.

Depreciation of tangible fixed assets

Depreciation is provided in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Management reassess the depreciation methods, useful lives and residual values where there is an indication of a significant change in the pattern by which the company expects to consume an asset's future economic benefits.

Turnover

Turnover is measured at the fair value of the consideration receivable for goods and services provided, net of trade discounts and value added tax.

Turnover from construction and service activities represents the value of work carried out during the year, including amounts not invoiced.

Where the outcome of individual contracts can be estimated reliably, turnover and costs are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to agreements with the customer.

Where the outcome of the contracts cannot be reliably estimated, turnover is recognised only to the extent of the contract costs recognised that it is probable will be recoverable.

No margin is recognised until the outcome of the contact can be estimated with reasonable certainty.

Provision is made for all known or expected losses on individual contracts once such losses are foreseen.

Turnover in respect of variations to contracts is recognised when it is probable it will be agreed by the customer.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. The company assesses at each reporting date whether tangible fixed assets are impaired.

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life:

Plant and machinery

-

reducing balance - 25%

Fixtures and fittings

-

straight line - 25%

Motor vehicles

-

straight line - 25%

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since the last annual reporting date in the pattern by which the company expects to consume an asset's future economic benefits.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for impaired items.

Work in progress

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

Taxation

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. Differences between accumulated depreciation and tax allowances for the cost of a fixed asset if and when all conditions for retaining the tax allowances have been met are not provided for. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense.

Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax balances are not discounted.

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

Foreign currencies

Transactions denominated in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Monetary assets and liabilities at the year end denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Exchange differences are taken into account in arriving at the operating profit.

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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the statement of financial position. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Financial instruments issued by the company

Financial instruments issued by the company are treated as equity only to the extent that they meet the following two conditions:

(a) they include no contractual obligations upon the company to deliver cash or other financial assets or to exchange financial assets or financial liabilities with another party under conditions that are potentially unfavourable to the company; and

(b) where the instrument will or may be settled in the company's own equity instruments, it is either a non-derivative that includes no obligation to deliver a variable number of the company's own equity instruments or is a derivative that will be settled by the company's exchanging a fixed amount of cash or other financial assets for a fixed number of its own equity instruments.

To the extent that this definition is not met, the proceeds of issue are classified as a financial liability. Where the instrument so classified takes the legal form of the company's own shares, the amounts presented in these financial statements for called up share capital and share premium account exclude amounts in relation to those shares.

Basic financial instruments

Trade and other debtors and creditors

Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument.

Construction contract debtors

Construction contract debtors represent the gross unbilled amount for contract work performed to date. They are measured at cost plus profit recognised to date less a provision for foreseeable losses and less progress billings. Variations are included in contract revenue when they are reliably measurable and it is probable that the customer will approve the variation itself and the revenue arising from the variation. Claims are included in contract revenue only when they are reliably measurable and negotiations have reached an advanced stage such that it is probable that the customer will accept the claim. Cost includes all expenditure related directly to specific projects and an allocation of fixed and variable overheads incurred in the company's contract activities based on normal operating capacity.

Construction contract debtors are presented as part of debtors in the statement of financial position. If payments received from customers exceed the income recognised, then the difference is presented as accruals and deferred income in the statement of financial position.

Interest-bearing borrowings classified as basic financial instruments

Interest-bearing borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the company's cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statement.

3.

TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the company.

An analysis of turnover by geographical market is given below:

2026

2025

£

£

United Kingdom

5,121,252

4,488,962

5,121,252

4,488,962

4.	OTHER OPERATING INCOME

2026

2025

£

£

Rents receivable

32,069

30,000

5.	EMPLOYEES AND DIRECTORS

2026

2025

£

£

Wages and salaries

2,367,246

2,309,624

Social security costs

309,990

257,644

Other pension costs

5,301

5,408

2,682,537

2,572,676

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

2026

2025

Number of production staff

41

40

Number of administrative staff

4

4

45

44

2026

2025

£

£

Directors' remuneration

136,630

123,072

Directors' pension contributions to money purchase schemes

3,721

3,721

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

6.	OPERATING PROFIT

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

2026

2025

£

£

Depreciation - owned assets

9,657

9,835

(Profit)/loss on disposal of fixed assets

(500

)

2,388

Auditors' remuneration

19,300

16,950

Auditors' remuneration for services other than audit is disclosed in the consolidated group financial statements.

7.

TAXATION

Analysis of the tax charge

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

2026

2025

£

£

Current tax:

UK corporation tax

43,000

59,000

Over/under provision in prior year

(386

)

3,613

Total current tax

42,614

62,613

Deferred tax:

Origination and reversal of

timing differences

4,224

(2,609

)

Tax on profit

46,838

60,004

UK corporation tax has been charged at 25% (2025 - 25%).

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:

2026

2025

£

£

Profit before tax

176,457

223,941

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2025 - 25%)

44,114

55,985

Effects of:

Expenses not deductible for tax purposes

3,468

528

Capital allowances in excess of depreciation

(358

)

(122

)

Adjustments to tax charge in respect of previous periods

(386

)

3,613

Total tax charge

46,838

60,004