REGISTERED NUMBER: 04860112 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2025

for

Sirius Remediation Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

M J Powell

P E Kane

S Robinson

SECRETARY:

S Robinson

REGISTERED OFFICE:

Russel House

Mill Road

Langley Moor

Durham

Co. Durham

DH7 8HJ

REGISTERED NUMBER:

04860112 (England and Wales)

AUDITORS:

Anderson Barrowcliff Limited

Statutory Auditors

Chartered Accountants

3 Kingfisher Court

Bowesfield Park

Stockton on Tees

TS18 3EX

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

REVIEW OF BUSINESS AND OUTLOOK

Sirius Engineering Group is a design and build enabling works specialist delivering integrated consultancy, ground engineering and contracting services to the land development sector. Operating across the United Kingdom from regional offices in Durham, Leeds, Warrington and Llanelli, the Group provides services including demolition, earthworks, remediation, drilling and civil engineering, supported by a cutting-edge plant and technologies division. The Group also provides geotechnical, environmental and planning consultancy services.

The Group's competitive advantage lies in its ability to provide a single integrated solution from initial investigation through to development readiness, often on a design and build basis. This enables clients to de-risk complex brownfield and greenfield sites and progress technically challenging developments with confidence.

Operating since 2003, Sirius has developed a stable repeat-business client base across several principal sectors including residential, commercial and retail development, waste management and renewable energy. In 2023, coinciding with its 20th anniversary, the Group transitioned to employee ownership, supporting long-term succession and aligning the future success of the business with the people who have helped to build it.

Sirius Remediation Limited is a specialist remediation, earthworks and ground engineering contractor operating within the Sirius Engineering Group. The Company provides essential site enabling, bulk earthworks, soil and groundwater remediation and associated ground engineering solutions to the land development sector, supporting the development of both brownfield and greenfield sites. The ability to also deliver primary infrastructure in combination with initial earthworks or remediation works is a key differentiator for the business (in conjunction with the Sirius Group companies) and can assist in delivering significant cost and programme savings for its clients.

The results for the year and the financial position of the Company are set out on pages 10 to 21.

Key Performance Indicators

The Company's KPIs for the year were:

2025

2024

Turnover

£26.9m

£19.4m

Gross Profit %

25.7%

24.4%

EBITDA

£2.6m

£0.9m

EBITDA %

9.7%

4.9%

Financial Performance

The directors are pleased to report a strong year for Sirius Remediation Limited. The Company delivered growth in both turnover and profitability, supported by a higher volume of market activity during the period.

Turnover increased to £26.9 million from £19.4 million in 2024. Gross profit increased to £6.9 million, representing a gross profit margin of approximately 25.7%, compared with 24.4% in the prior year. Profit before taxation increased to £2.4 million, compared with £0.8 million in 2024.

As reported in the prior year, the final quarter of 2024 showed strong signs of recovery, resulting in a busy end to the year and a full order book heading into 2025. This momentum continued throughout the year and contributed significantly to the Company's strong financial performance.

The gradual reduction in interest rates during 2025 helped improve confidence across parts of the residential development sector. Improved mortgage affordability and lower financing costs supported housing market activity and encouraged some developers to progress projects that had previously been delayed or deferred. Combined with the Government's continued focus on increasing housing delivery, this contributed to increased demand for the Company's remediation, earthworks and enabling works services.

Whilst residential land development remains the Company's principal market, the Company continued to secure opportunities across adjacent sectors including infrastructure, industrial, commercial and renewable energy projects. This has provided additional diversification whilst remaining complementary to the Company's core activities.

Market Outlook

The Company's principal market remains linked to residential land development. Notwithstanding wider economic challenges, underlying demand for new housing across the UK continues to exceed supply. The UK Government's stated objective to deliver 1.5 million new homes over the current Parliament provides favourable medium and long-term market fundamentals for remediation, earthworks, enabling works and associated infrastructure services.

Since the year end, geopolitical developments have increased uncertainty within both the UK and global economy. Ongoing international tensions have contributed to volatility in energy markets, higher fuel prices and inflationary pressures across parts of the construction supply chain. In addition, uncertainty regarding economic growth, interest rates and consumer confidence has led to more cautious investment and development decisions within certain sectors.

As a result, the directors anticipate that trading conditions during the first half of 2026 may be more challenging than those experienced during the strong performance achieved in 2025. However, the Company enters the new financial year with the benefit of a strong operational track record, established client relationships and continued support from the wider Sirius Engineering Group.

Despite these short-term headwinds, the directors remain confident in the Company's long-term outlook. The need to regenerate brownfield land, remediate complex sites and prepare land for future development remains central to the UK's housing, infrastructure and environmental objectives. The Company is well positioned to benefit from these opportunities through its technical expertise, experienced workforce, access to specialist plant and ability to deliver integrated solutions alongside other Sirius Group companies.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the Company and how they may affect its performance, position or future prospects are set out below:

Health, safety and environmental

The Company is subject to health, safety and environmental risks inherent in remediation, earthworks and ground engineering activities. These risks are particularly important given the nature of work undertaken on live construction sites, brownfield land and sites affected by contamination or abnormal ground conditions. The Board and business unit leads promote a strong health and safety culture, supported by procedures that are continually assessed to ensure best practice. Ongoing training is provided to employees, with specialist health, safety and environmental support provided internally and through external consultants where required.

Financial risk management

The Company seeks to minimise financial risk through the preparation of budgets and forecasts, regular monitoring of actual performance against those forecasts and maintaining appropriate financial resources to meet the requirements of the business. The Company's principal financial instruments comprise bank balances, hire purchase agreements, trade and subcontract creditors and trade debtors arising from its operations.

Credit risk

Amounts receivable relate largely to applications on contracts across the Company's customer base. The Company has policies concerning credit offered to customers and regularly monitors amounts outstanding by both ageing and credit limit.

Liquidity risk

The Company manages working capital and cash availability through negotiation with clients and suppliers and regular cash flow forecasting to ensure that sufficient funds are available to meet amounts due. The Company also has the support of Sirius Engineering Group Limited, which is expected to continue for at least the next 12 months.

Recruitment and retention of skilled employees

The remediation, engineering and construction sectors continue to experience challenges in recruiting and retaining skilled employees. The Company mitigates this risk through investment in training and development, access to Group-wide apprenticeship and progression initiatives, competitive employee benefits and the provision of a safe and positive working environment.

Fuel and supply chain inflation

The Company is exposed to fluctuations in fuel prices and wider supply chain cost inflation, including plant, haulage, subcontractor and material costs. These pressures may impact project margins. This risk is mitigated through proactive procurement, strategic supplier relationships, disciplined contract pricing, regular review of project profitability and continued focus on operational efficiency.

Market conditions and client investment

The Company's principal market remains linked to residential land development and wider construction activity. A reduction in developer confidence, planning delays or funding constraints may affect the timing of project commencements. The Company mitigates this risk through strong client relationships, a healthy operational pipeline, the wider Group's integrated offering and continued diversification into adjacent sectors including infrastructure, industrial and commercial development, environmental services and renewable energy.

ON BEHALF OF THE BOARD:

S Robinson - Director

22 July 2026

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

DIVIDENDS

Dividends totalling £1,500,000 have been paid to the parent company in the period to 31 December 2025.

RESEARCH AND DEVELOPMENT

During the year the company spent £ Nil (2024: £Nil) on research and development.

FUTURE DEVELOPMENTS

The company continues to develop and expands it client base, area of operation and scope of services provided. The directors consider that the current workload and prospects are reasonable having regard to prevailing market conditions.

DIRECTORS

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

M J Powell

P E Kane

S Robinson

POLITICAL DONATIONS AND EXPENDITURE

No political donations were made by the company during the year.

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;

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

S Robinson - Director

22 July 2026

Opinion

We have audited the financial statements of Sirius Remediation 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 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.

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

Based on our understanding of the industry, we have considered applicable laws and regulations which may be fundamental to the company's ability to operate or to avoid a material penalty, and we considered the extent to which non-compliance might have a material effect on the financial statements. We considered management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate manual journal entries to manipulate financial performance, management bias in significant accounting estimates and any significant one-off or unusual transactions.

We discussed among the audit engagement team the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

Auditors' responsibilities for the audit of the financial statements (continued)

Audit procedures performed by the engagement team included:

-

Enquiry of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims.

-

Enquiry of entity staff to identify any instances of non-compliance with laws and regulations.

-

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

-

Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

-

Challenging estimates and judgements made by management in their significant accounting estimates.

-

Revenue recognition; agreeing a sample of revenue transactions to gain assurance over the occurrence and accuracy of revenue and also to ensure revenue has been recognised in the correct period.

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. The 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.

Helen Wilson FCA (Senior Statutory Auditor)

for and on behalf of Anderson Barrowcliff Limited

Statutory Auditors

Chartered Accountants

3 Kingfisher Court

Bowesfield Park

Stockton on Tees

TS18 3EX

5 August 2026

TURNOVER

3

26,882,903

19,439,977

Cost of sales

19,967,768

14,691,407

GROSS PROFIT

6,915,135

4,748,570

Administrative expenses

4,467,283

3,947,790

OPERATING PROFIT

2,447,852

800,780

Interest receivable and similar income

21

-

2,447,873

800,780

Interest payable and similar expenses

5

45,665

39,217

PROFIT BEFORE TAXATION

6

2,402,208

761,563

Tax on profit

7

583,387

198,141

PROFIT FOR THE FINANCIAL YEAR

1,818,821

563,422

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,818,821

563,422

FIXED ASSETS

Tangible assets

9

146,952

228,405

CURRENT ASSETS

Debtors

10

5,604,670

6,508,254

Cash at bank and in hand

6,211,289

1,983,404

11,815,959

8,491,658

CREDITORS

Amounts falling due within one year

11

6,030,768

3,073,483

NET CURRENT ASSETS

5,785,191

5,418,175

TOTAL ASSETS LESS CURRENT LIABILITIES

5,932,143

5,646,580

CREDITORS

Amounts falling due after more than one year

12

(21,128

)

(34,386

)

PROVISIONS FOR LIABILITIES

15

(24,000

)

(44,000

)

NET ASSETS

5,887,015

5,568,194

CAPITAL AND RESERVES

Called up share capital

16

1,000

1,000

Share premium

17

23,950

23,950

Retained earnings

17

5,862,065

5,543,244

SHAREHOLDERS' FUNDS

5,887,015

5,568,194

The financial statements were approved by the Board of Directors and authorised for issue on 22 July 2026 and were signed on its behalf by:

S Robinson - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2024

1,000

5,436,326

23,950

5,461,276

Changes in equity

Dividends

-

(456,504

)

-

(456,504

)

Total comprehensive income

-

563,422

-

563,422

Balance at 31 December 2024

1,000

5,543,244

23,950

5,568,194

Changes in equity

Dividends

-

(1,500,000

)

-

(1,500,000

)

Total comprehensive income

-

1,818,821

-

1,818,821

Balance at 31 December 2025

1,000

5,862,065

23,950

5,887,015

1.	STATUTORY INFORMATION

Sirius Remediation 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.

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

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

General information and basis of preparation

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.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions 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;

•

the requirement of paragraph 3.17(d).

Turnover

Turnover is stated net of VAT and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover for the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where a contract has only been partially completed at the balance sheet date turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the balance sheet date.

Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date. Stage of completion is measured by reference to the right to consideration in respect of performance of contractual obligations.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred.

When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

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

-

20% on reducing balance

Fixtures and fittings

-

25% on cost

Motor vehicles

-

33% on cost

Computer equipment

-

33% on cost and 25% on cost

Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated

impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Taxation

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

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.

Amounts recoverable on contracts

Amounts recoverable on contracts are stated at cost plus attributable profit to the extent that such profit is reasonably certain and after making provision for any foreseeable losses in completing contracts, less payments on account received.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other

administrative expenses.

Judgements and key sources of estimation uncertainty

In the application of the companies accounting policies, which are described above, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The judgement (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that has the most significant effect on the amounts recognised in the financial statements is the stage of completion of contracts and revenue recognition.

The company undertakes a number of long term construction contracts. Accounting for these contracts requires a number of assumptions and estimates to be made in relation to the stage of completion and expected outcome of the contract. Each contract has an expected value and is costed appropriately to give an expected margin. Any future changes to estimates of contract revenue or contract costs resulting in a change to the estimated loss or profit of the contract is regularly reviewed by management to ensure accurate reporting of revenue recognition.

3.

TURNOVER

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

An analysis of turnover by class of business is given below:

2025

2024

£

£

Construction contracts

26,882,903

19,439,977

26,882,903

19,439,977

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

4,999,802

4,686,065

Social security costs

638,568

527,794

Other pension costs

561,579

494,687

6,199,949

5,708,546

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

2025

2024

Engineers

42

40

Site operatives

53

50

Administration

9

9

104

99

The average number of employees has been updated to reflect the wage costs transfers in the year between the group and related party companies. Total transfers to Sirius Remediation Limited amount to £466,392 (2024 : £388,915) and amounts transferred from Sirius Remediation Limited amount to £850,050 (2024 : £699,385). This equates to a reduction in employee numbers of 5 in the year (2024 : 6).

2025

2024

£

£

Directors' remuneration

-

-

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Other interest

45,665

39,217

6.	PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

2025

2024

£

£

Plant and equipment hire

6,674,727

3,847,763

Depreciation - owned assets

16,685

15,443

Depreciation - assets on hire purchase contracts

152,487

130,699

Profit on disposal of fixed assets

(19,602

)

-

Auditors remuneration

28,320

27,500

Land & buildings - leased

75,000

75,000

Land & buildings - leased (recharged)

(41,568

)

(44,140

)

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

607,000

236,000

Overprovision in prior year

(3,613

)

2,141

Total current tax

603,387

238,141

Deferred taxation

(20,000

)

(40,000

)

Tax on profit

583,387

198,141

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

2,402,208

761,563

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

600,552

190,391

Effects of:

Expenses not deductible for tax purposes

2,872

3,894

Depreciation in excess of capital allowances

-

1,219

Group losses utilised

(16,717

)

-

Deferred taxation rounding differences

(297

)

230

Corporation tax rounding differences

590

267

Prior year overprovision

(3,613

)

2,140

Total tax charge

583,387

198,141

8.

DIVIDENDS

2025

2024

£

£

Final

1,500,000

456,504

9.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2025

79,825

95,219

629,800

233,029

1,037,873

Additions

22,657

-

39,415

34,955

97,027

Disposals

-

-

(140,559

)

-

(140,559

)

At 31 December 2025

102,482

95,219

528,656

267,984

994,341

DEPRECIATION

At 1 January 2025

79,824

95,218

414,163

220,263

809,468

Charge for year

1,877

-

152,486

14,809

169,172

Eliminated on disposal

-

-

(131,251

)

-

(131,251

)

At 31 December 2025

81,701

95,218

435,398

235,072

847,389

NET BOOK VALUE

At 31 December 2025

20,781

1

93,258

32,912

146,952

At 31 December 2024

1

1

215,637

12,766

228,405

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 January 2025

492,351

Additions

39,415

Transfer to ownership

(68,422

)

At 31 December 2025

463,344

DEPRECIATION

At 1 January 2025

277,219

Charge for year

152,487

Transfer to ownership

(59,115

)

At 31 December 2025

370,591

NET BOOK VALUE

At 31 December 2025

92,753

At 31 December 2024

215,132

10.

DEBTORS

2025

2024

£

£

Amounts falling due within one year:

Trade debtors

108,157

34,140

Amounts owed by group undertakings

3,073,315

2,448,738

Other debtors

16,021

7,259

Amounts recoverable on contracts

1,954,194

3,581,721

VAT

282,483

294,602

Prepayments

93,211

76,794

5,527,381

6,443,254