REGISTERED NUMBER: 08326109 (England and Wales)

Strategic Report, Report of the Directors and

Audited Financial Statements

for the Year Ended 31 December 2025

for

J McCann & Co Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

7

Report of the Independent Auditors

9

Statement of Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15

DIRECTORS:

J J McCann

A Kelsey

C Lancaster

A Cronin

REGISTERED OFFICE:

McCann House

110 Nottingham Road

Chilwell

Nottinghamshire

NG9 6DQ

REGISTERED NUMBER:

08326109 (England and Wales)

AUDITORS:

Clayton & Brewill

Statutory Auditors and

Chartered Accountants

Cawley House

149-155 Canal Street

Nottingham

Nottinghamshire

NG1 7HR

Principal Activities

The principal activity of the company during the year continued to be that of a construction and contracting business, delivering project-based services within its established market. There were no significant changes in the nature of the company's activities during the year.

REVIEW OF BUSINESS

This review is intended to be consistent with the size and nature of our business. We aim to present a balanced and comprehensive review of the development and performance of the company during the year to 31st December 2025, its position at year end and an update of events after the balance sheet date, to enable a better understanding by the readers of the accounts, of the company's financial position.

The company has consolidated its core business, returning profits of £1,839,865 (2024: £1,678,765), before tax, on a reduced turnover of £69,310,040 (2024: £82,894,375). This was achieved by concentrating on our highways maintenance and infrastructure skills and ensuring that projects obtained and delivered certainty and a healthy margin. Due to increased return, cash flow and profitability have been restored with healthy cash balances being reported at year end. The company will continue to maintain its focus on working capital and cash management in the future and continue to leverage our specialist expertise whilst seeking new opportunities, within our sector, for increased margin generation.

Since the Year end, we have continued to maintain strong growth within our chosen sectors with the recent award of several notable projects: -

- Renewal of a Street Lighting Term Service Contract

- National LED Roll out

- National Emergency Area Rollout (NEAR)

- Drainage outfall works in Hoplands

We believe that this success demonstrates the resilience of the business and the ongoing demand for our services. However, we remain mindful of the challenges that lie ahead in the coming year and the impact of the current economic and geo-political climate.

PRINCIPAL RISKS AND UNCERTAINTIES

Government spending decisions

We recognise that the majority of our income is from National and Local government sources and can be affected by changes in government policy.

Economic uncertainty

There is ongoing uncertainty due to the risk of recession, further inflationary and interest rate increases along with possible changes in Government policy.

Geopolitical disruptions

The current uncertain state of world politics, including Ukraine and the Middle East can all have an impact on local economic conditions.

Tariffs (USA)

We do not trade with the USA directly and most of our imported goods are manufactured within Europe. We therefore do not consider this to be a significant risk to the business at this time.

Financial risk

The company has a broad range of customers including both private companies and public sector bodies. The risk that the company will suffer from significant levels of bad debts is managed by the diversified portfolio and well established credit control procedures across the company. The company is funded through a combination of hire purchase funding and a credit facility with the company's bankers who have remained supportive throughout this period and beyond.

The Directors continue to monitor these impacts and react as necessary.

The above risks are typical of the current UK economy and we are confident that they do not represent an undue risk to the success of the business. Our current portfolio of Government backed long term contracts, will continue to provide a significant buffer to these uncertainties. This is recognised in the Company improving its cash position since the year end and continues to work with positive cash balances, as it expects to continue to do so through 2026.

SECTION 172(1) STATEMENT

The Directors of J McCann & Co Ltd acknowledge their duty under section 172(1) of the Companies Act 2006 to act in a way that they consider, in good faith, would most likely promote the success of the company for the benefit of its members as a whole. In making decisions during the financial year, the Directors have had regard to the following key factors:

Stakeholder Engagement and Key Considerations

During this period, our response to the Ransomware attack typified how we have continued to maintain our consideration for the likely consequences of our decisions for the long term, the need to act fairly between members of the company, and the company's wider relationships. Examples of these decisions are given below:

- Employees

The well-being and development of our employees remain a priority. We have continued to invest in training, well-being initiatives and professional development opportunities. We continue to review our Policies and have invested in a digital system wellbeing system to provide company information, wellbeing support and financial benefits to all employees.

- Customers

Our commitment to delivering high-quality services remains paramount. The Directors have actively engaged with key customers to maintain strong relationships, build trust and maintain confidence.

- Suppliers

We value our supplier partnerships and strive for mutually beneficial relationships. We are currently establishing a new suite of contracts that are more aligned to modern relationships and as well as widening our supplier base through a new accreditation system.

- Shareholders

The Directors have kept shareholders informed of business developments, operations and investments. We continue to mitigate risks and strengthen the company's resilience to future threats.

- Community and Environment

We remain committed to acting responsibly towards the environment and the communities in which we operate. During the year, we continued our initiatives aimed at sustainability and corporate social responsibility, ensuring our business operations align with our long-term environmental goals.

- Regulatory and Governance Considerations

Compliance with legal and regulatory obligations is integral to our decision-making process. We maintain a suite of externally audited processes to independently verify compliance.

- Decision-Making and Long-Term Impact

The Directors have made strategic decisions that support the long-term sustainability and growth of the business. These include a new growth strategy, investing in employee well-being, and reinforcing business resilience to protect stakeholders' interests.

The Board remains committed to reviewing and refining its stakeholder engagement strategies to ensure that the company continues to operate successfully and responsibly in the years ahead.

STREAMLINED ENERGY AND CARBON REPORTING

This inventory has been prepared in accordance with the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (2004) and ISO 14064-1:2018 Specification with Guidance at the Organization Level for Quantification and Reporting of Greenhouse Gas Emissions and Removals. Where relevant, the inventory is aligned with industry or sector best practice for emissions measurement and reporting

GHG emissions and energy use for period 01 January 2025 to 31 December 2025

Energy consumption used to calculate emissions (kWh)

10,859,673.22

Gas (kWh)

186,523.70

Electricity (kWh)

2,940,914.34

Transport fuels (kWh)

120,365,306.18

Other energy sources (Scope 1 & 2) kWh

66,929.01

Emissions from combustion of gas tCO2e (Scope 1)

34.85

Emissions from combustion of fuel for transport purposes tCO2e (Scope 1)

2,666.28

Emissions from purchased electricity tCO2e (Scope 2, location-based)

42.64

Total gross emissions tCO2e based on the above

2743.78

Total gross emissions from above by unit turnover/revenue (tCO2e/£m)

39.59

STRATEGY

J McCann & Co Ltd.'s strategy is focused on sustainable growth, operational resilience, and delivering long-term value to all stakeholders. Our approach in 2025 has been shaped by both opportunities and challenges.

1. Strengthening Business Resilience

The company has taken decisive actions to improve its cybersecurity framework and operational continuity:

- Cybersecurity Enhancements

Investing in advanced security measures, including stronger data encryption, improved system monitoring, and enhanced employee cybersecurity training and achievement of Cyber Essentials Plus accreditation.

- Diversification

We continue to explore new markets clients and frameworks, with a view to diversification and expansion, to minimise risks associated with specific market sectors.

- Regulatory Compliance

Ensuring compliance with regulations and governance best practices to safeguard business integrity.

2. Driving Sustainable Growth

J McCann & Co Ltd remains focused on growth and expansion in key markets:

- Market Diversification

Identifying new opportunities in adjacent markets to reduce dependence on single revenue streams.

- Customer-Centric Approach

Strengthening client relationships through improved service delivery, transparency, and digital transformation.

- Operational Efficiency

Streamlining processes to enhance productivity and cost-effectiveness, with a focus on leveraging technology for improved efficiency.

3. Investing in People & Culture

Employees are the backbone of our success, and we remain committed to attracting, developing, and retaining top talent:

- Workforce Development

Continued investment in training, career progression, and employee well-being.

- Employee Support

We continue to provide a Company specific benefit package to all employees, including high street discounts, access to support services and the like through a integrated employee support system.

- Enhancing Workplace Culture

Promoting a collaborative, innovative, and inclusive work environment.

- Attracting and Maintaining Employees

We offer an exciting package for all employees and tailor individual offers for each employee to take reconcile the business needs with those of the employee.

4. ESG & Sustainability Commitment

J McCann & Co Ltd remains dedicated to sustainability and responsible business practices:

- Environmental Initiatives

Reducing our carbon footprint through energy efficiency measures and sustainable sourcing.

- Community Engagement

Strengthening corporate social responsibility efforts to support local communities and industry partnerships.

- Governance & Ethics

Upholding the highest standards of corporate governance to build trust and accountability.

BUSINESS ENVIRONMENT

J Mccann & Co Ltd are based in Nottingham and with strategically based regional offices we are best placed to delivery of a first rate, comprehensive service, throughout the country. With a large, highly skilled, directly employed workforce, supported by an extensive specialised plant fleet we can take on and deliver the most demanding of projects to programme and budget.

We provide our clients with integrated infrastructure solutions that meet business needs and exceeds expectations each and every time. We are a key player in creating and maintaining essential elements of the country's infrastructure and by doing so efficiently, offer a first-class service to all our clients.

We have developed a wide range of specialist contracting services to support the successful delivery of major infrastructure projects throughout the UK. As a leading supplier and installer of street lighting, traffic signs, signals, communication systems and associated civil engineering we can also play a key role in the development of project design and buildability whilst working comfortably within a wide range of contractual arrangements.

OUTLOOK FOR 2026 AND BEYOND

Looking ahead, J McCann & Co Ltd is committed to:

- Expanding market presence through innovation and strategic partnerships.

- Strengthening stakeholder engagement and long-term financial stability.

- Despite challenges, the company remains well-positioned for sustainable growth and continued success in the years ahead.

ON BEHALF OF THE BOARD:

J J McCann - Director

30 July 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of civil and electrical engineering operating throughout the UK on major road, rail and airport infrastructure projects for public and private sector clients.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

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

J J McCann

A Kelsey

C Lancaster

A Cronin

POLITICAL DONATIONS AND EXPENDITURE

All donations made during the year were non-political charitable donations.

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, Clayton & Brewill, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J J McCann - Director

30 July 2026

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the 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 seven, 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.

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

- Enquiry of management and those charged with governance around actual and potential litigation and claims;

- Reviewing financial statement disclosures and testing to supporting documentation to assess

compliance with applicable laws and regulations;

- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Doug Perry FCA (Senior Statutory Auditor)

for and on behalf of Clayton & Brewill

Statutory Auditors and

Chartered Accountants

Cawley House

149-155 Canal Street

Nottingham

Nottinghamshire

NG1 7HR

30 July 2026

TURNOVER

69,310,040

82,894,375

Cost of sales

60,168,378

73,944,580

GROSS PROFIT

9,141,662

8,949,795

Administrative expenses

7,398,221

7,208,026

1,743,441

1,741,769

Other operating income

166,589

27,166

OPERATING PROFIT

5

1,910,030

1,768,935

Income from fixed asset investments

8

4

Interest receivable and similar income

51,501

60,639

51,509

60,643

1,961,539

1,829,578

Interest payable and similar expenses

6

121,674

150,813

PROFIT BEFORE TAXATION

1,839,865

1,678,765

Tax on profit

7

349,056

555,102

PROFIT FOR THE FINANCIAL YEAR

1,490,809

1,123,663

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,490,809

1,123,663

FIXED ASSETS

Tangible assets

8

3,192,196

4,244,954

CURRENT ASSETS

Debtors

9

13,577,443

13,696,457

Cash at bank

5,842,548

6,504,322

19,419,991

20,200,779

CREDITORS

Amounts falling due within one year

10

16,151,488

18,511,938

NET CURRENT ASSETS

3,268,503

1,688,841

TOTAL ASSETS LESS CURRENT LIABILITIES

6,460,699

5,933,795

CREDITORS

Amounts falling due after more than one year

11

(650,372

)

(1,410,594

)

PROVISIONS FOR LIABILITIES

15

(582,820

)

(786,503

)

NET ASSETS

5,227,507

3,736,698

CAPITAL AND RESERVES

Called up share capital

16

100

100

Retained earnings

17

5,227,407

3,736,598

SHAREHOLDERS' FUNDS

5,227,507

3,736,698

The financial statements were approved by the Board of Directors and authorised for issue on 30 July 2026 and were signed on its behalf by:

J J McCann - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

100

2,612,935

2,613,035

Changes in equity

Total comprehensive income

-

1,123,663

1,123,663

Balance at 31 December 2024

100

3,736,598

3,736,698

Changes in equity

Total comprehensive income

-

1,490,809

1,490,809

Balance at 31 December 2025

100

5,227,407

5,227,507

1.	STATUTORY INFORMATION

J McCann & Co Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company 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 accounts have been prepared on a going concern basis by the directors. This reflects the improved trading performance, ongoing forecasts for future years and the continued support of the company's bankers and creditors.

A positive future order books helps to underpin the confidence with these forecasts and cash position.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of the 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 estimates is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The directors do not consider that the financial statements are subject to any significant judgements or key accounting estimates.

Turnover

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

Revenue on contracts is valued on a contract by contract basis. When the outcome of a contract can be estimated reliably contract revenue and costs are recognised by reference to the degree of completion of each contract as measured by the proportion of total costs at the balance sheet date to the estimated total cost of the contract. When the outcome of a contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred, where it is probable these costs will be recovered.

When it is probable that the total contract costs will exceed total contract revenue, the expected loss is recognised immediately. Contract costs are recognised as an expense in the period in which they are incurred.

Where costs incurred plus recognised profits less recognised losses exceed progress billings, the balance is shown as amounts recoverable on contracts within debtors. Where progress billings exceed costs incurred plus recognised profits less recognised losses, the balance is shown as deferred income within creditors.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

25% reducing balance

Fixtures and fittings

-

20% on cost

Motor vehicles

-

25% reducing balance

Computer equipment

-

33% on cost

Financial instruments

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price, including transaction costs. Financial assets classified as debtors within one year are not amortised and are therefore measured at transaction price plus transaction costs. Assets receivable after more than one year are subsequently carried at amortised cost using the effective interest rate method unless the arrangement constitutes a financing transaction. In this latter case, the transaction is measured at the present value of future receipts discounted at a market rate of interest.

We derecognise financial assets are in three scenarios. Firstly, when the contractual rights to the cash flows from the assets expire or are settled. Secondly, when all the risks and rewards of the ownership of the asset substantially transfer to another party. Thirdly, when control of the asset transfers to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Basic financial liabilities, including trade and other payables, bank loans and intercompany loans, are initially recognised at transaction price. If the arrangement constitutes a financing transaction, the debt instrument is measured at the present value of 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 probably that some or all of the facility will be drawn down. In this case, the fees is deferred until the draw-down occurs. To the extent that there is no evidence that it is probably that some or all of the facility will be drawn down, th fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. We classify trade creditors are 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 the profit or loss in finance costs or income as appropriate.

The company does not apply hedge accounting for interest rate and foreign exchange derivatives.

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

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 Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 balance sheet 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. 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 profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

15,053,315

14,415,978

Social security costs

2,015,726

1,692,006

Other pension costs

393,984

367,744

17,463,025

16,475,728

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

2025

2024

Administration

78

79

Production

206

191

284

270

2025

2024

£

£

Directors' remuneration

741,860

698,759

Directors' pension contributions to money purchase schemes

16,997

13,815

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

246,659

240,094

Pension contributions to money purchase schemes

4,404

3,634

5.	OPERATING PROFIT

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

2025

2024

£

£

Equipment Hire

3,592,864

5,840,359

Premises hire

782,968

708,806

Depreciation - owned assets

320,315

282,835

Depreciation - assets on hire purchase contracts

745,938

1,026,870

Profit on disposal of fixed assets

-

(13,165

)

Auditors' remuneration

28,000

34,250

Auditors' remuneration for non audit work

80,758

70,369

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

557

160

HMRC interest

3,906

-

Hire purchase

117,211

150,653

121,674

150,813

7.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

577,723

352,885

Prior year

(24,984

)

-

Total current tax

552,739

352,885

Deferred tax

(203,683

)

202,217

Tax on profit

349,056

555,102

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

1,839,865

1,678,765

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

459,966

419,691

Effects of:

Expenses not deductible for tax purposes

48,612

56,401

Income not taxable for tax purposes

(2

)

(1

)

Depreciation in excess of capital allowances

216,346

92,362

Utilisation of tax losses

-

(120,112

)

Adjustments to tax charge in respect of previous periods

(25,834

)

-

Deferred tax

(203,683

)

202,217

Group relief

(146,349

)

(95,456

)

Total tax charge

349,056

555,102

8.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2025

11,861,679

63,191

189,048

93,690

12,207,608

Additions

13,495

-

-

-

13,495

At 31 December 2025

11,875,174

63,191

189,048

93,690

12,221,103

DEPRECIATION

At 1 January 2025

7,727,830

58,876

86,224

89,724

7,962,654

Charge for year

1,035,269

3,081

25,706

2,197

1,066,253

At 31 December 2025

8,763,099

61,957

111,930

91,921

9,028,907

NET BOOK VALUE

At 31 December 2025

3,112,075

1,234

77,118

1,769

3,192,196

At 31 December 2024

4,133,849

4,315

102,824

3,966

4,244,954